The Flow and Pull of Human Inventory – A Lean Perspective

It just sounds wrong to ask such a question. It feels insensitive, almost Orwellian in a way. Should people be considered inventory? Applying lean thinking to a system requires that we look at all the components, and inventory can certainly be a major factor. But, in this case, we’re not talking about a store of things, a list of items on shelves or in boxes. We’re talking about people.

Inventory is one of the famous wastes in lean thinking. Usually, the goal is not to have too much or have it before it’s needed; this is because lean concepts originated from manufacturing. However, applying lean concepts to a people development system (PDS) can challenge the definition of inventory.

Exactly Where are the People?

I was talking to a colleague about helping organizations optimize their PDS by applying lean thinking. As we discussed how to analyze the traditional wastes of lean, my friend suggested that the stack of applications that an organization has for open job postings represents a type of inventory. That stack could be seen as an inventory of raw materials ready to be processed by the PDS. Potential, raw talent, waiting to be built up.

Extending the analogy, perhaps these are other types of human inventories: 

• Work in Progress – Those individuals involved in training and development.
• Finished Goods – No one is ever fully finished learning, but these are reaching their peak in their role.
• Reworks – those who recognize the need to change and are open to the idea of upskilling and retraining.
• Obsolete Inventory – those people in the organization who refuse to change or whose roles are disappearing.

There is also just the overall headcount. Donella Meadows, a leading contributor to systems thinking, often referred to stocks as the foundation of any system. She bolsters this assertion saying, “Stocks are the elements of the system that you can see, feel, count, and measure at any given time.” In the people development system, headcount is the stock, making it a type of inventory; one that can fluctuate by being acted upon by a system’s feedback loops, either a balancing loop or a reinforcing loop, or a combination of both. The PDS is responsible for maintaining the stock of people in all the organizational systems.

Working Their Way Through the System

Looking at people as inventory in some instances can be helpful. For example, two key lean principles are establishing flow and creating a pull system.

Flow

In this instance, flow represents people successfully moving through the system. It happens when the recruiting process is continually finding and developing acceptable/trainable talent at all key positions. It is created by constantly looking for valuable attributes and talents, even if there is no signal from internal customers. Then, creating the opportunity for those attributes and talents to “flow” into other parts of the organization; for the good of the individual and the organization.

Flow is not just about people physically moving through the system though. It is also about intellectual movement, emotional movement, and cognitive movement. Flow implies progress and growth. The optimized PDS creates flow by ensuring that everyone is moving (upwardly, laterally) – progressing along their development path, career ladder, skill levels, etc.

Pull

Pull is demand. It is created in the organization when there’s a need for people to move up, take on new roles, or add their capabilities to another team. Pull is established when organizational systems have a need for people due to growth, expansion, and success. The Optimized PDS helps find the right types of human inventory, at the right place, in the right quantity.

Pull is driven by more than just promotions. There’s also skill level advancement and growth in leadership abilities, cognitive training, personal goal attainment, knowledge acquisition, coaching ability, cross-training in other areas, concept understanding (such as lean, kata, systems thinking, etc.), and strategic thinking.

Signals From the System

Together, the lean concepts of flow and pull help PDS stakeholders identify where needs are greatest and the pulling forces are strongest. These signals get transmitted back through the PDS so that the demand is met, people are added, they get training, are moved, etc. They will have names and faces, of course. They won’t be known as Works in Progress, or Reworks, or Obsolete. They will, however, be seen in the system.

There are places in the PDS where monitoring the levels of human inventory and their developmental progress can interject a sense of urgency to ensure that people are efficiently moving through the system and they are being served well along their journey. Just the idea of labeling people as inventory may be inflammatory or sound demeaning to some. If it is meant to value people only as so many interchangeable resources to be manipulated, then it would be offensive. However, observing the PDS through this lens can help us gain a more systems-oriented view and help us manage the organization’s most important inventory.

Reference – D. H. Meadows, (2008). Thinking in Systems, A Primer.

Image by Gerd Altmann from Pixabay