Presidents Message - To Six Sigma or not to Six Sigma

By Benjamin Rand

I recently attended the ASQ (American Society of Quality) Conference in Buffalo. The conference focuses on Six Sigma, which was developed as a toolset for reducing process variability and also has a general problem solving aspect called DMAIC. I should preface my remarks by noting that we co-sponsored the conference and we actively practice Six Sigma. Our Black Belts have worked successfully with many local companies over the years to train their people and implement Six Sigma programs.

But, there is a danger here, given our quick fix culture, that one methodology or tool set is held up as a solution for anything and everything that ails your company. That is especially true for Six Sigma which has been trumpeted by local media as a magic potion to fix underperforming governments or companies. Well, brace yourself…

Six Sigma is not a silver bullet. Six Sigma is not a panacea. Six Sigma is neither right nor necessary for every situation.

When it comes to improving your company there is no “one-size-fits-all” methodology or tool or fix. That should not be surprising, since every company has different issues, different challenges and different needs, all of which are constantly changing and evolving.

And it is not just Six Sigma. Any tool applied indiscriminately, inappropriately or incompletely is counterproductive. In 1990 in the heyday of TQM (Total Quality Management) the Wallace Co. Inc. won the prestigious Malcolm Baldrige National Quality Award in the small business category, but within two years they were bankrupt. Wallace may have achieved process excellence, but the company clearly had other higher priorities – sales, financial management, perhaps new product development – on which it should have been focused. Simply put, Wallace improved the wrong things. Toyota’s production system was the genesis of Lean Manufacturing and they remain its leading practitioner, but their recent product quality problems have been well documented.

We see the same kinds of mistakes in WNY. It is not unusual for us to hear from companies that “Six Sigma didn't work for us.” Or “we tried Lean but it didn't help.” Upon further investigation, it becomes clear that these efforts were not targeted at the company's critical issue. They may have improved operations and created capacity, but without any additional sales volume, there was no benefit to their bottom line. One company trained all their senior staff to be Black Belts. But afterward, they all returned to their challenging, more than full time day jobs. None of them had time for ongoing Six Sigma project work, therefore progress and benefits quickly ground to a halt. In some cases, companies were able to force real improvements into their business and even onto their bottom line, only to have both disappear as the pressure and focus was dialed back. Without change management, they were unable to make positive changes stick in their culture.

So, what are the take-aways for business owners and presidents who want to improve their businesses? First, recognize that there are no silver bullets. Avoid the methodology fanatics who promise you that their tool will solve all your problems. If all you have is a hammer, everything looks like a nail. Second, examine and prioritize your issues. The major risk in any improvement program is that you are not focused on the right thing. Such random acts of improvement might help a certain process or department, but if that is not the critical issue that keeps you from your goal (more profit, more sales, more units produced, etc.); then your organization will see no overall benefit. Third, and most important, recognize that improving your business should not be an event, it should be a way of life. Companies that truly excel recognize that they must get a little bit better every hour of every day of every week of every month of every year. This kind of continuous improvement is hard work. It is a never-ending process. But ultimately, it is the way successful companies do business.