ISO 9001 vs. Six Sigma
I will not go into the history and background of each process management approach. Just google “Six Sigma” or “ISO 9001” to get your fair share of information. This article is going to go for the jugular on a subject that has been around me for a long time. I am not trained in Six Sigma but have always respected the program from afar and have done enough research on the subject to give a fairly educated opinion. I can appreciate your call to action and understand that there is a strong following, but I honestly feel that Six Sigma is a fad. It has been touted in best-selling business books, but that was 10 years ago.
Before I get off topic, let’s jump right into a bulleted list listing the problems with Six Sigma:
1. 3M, GE, Home Depot, Ford and other major companies are pulling out of Six Sigma because research shows that customer satisfaction and employee morale have suffered
A. On the other hand, customer satisfaction is a major theme of ISO 9001, as customer focus is one of the eight management principles of ISO 9001.
2. Over analyze
A. On the other hand, ISO 9001 simply suggests that your company should take a factual approach to decision making. This means making informed decisions and ensuring data and information is accurate and reliable enough and accessible to those who need it. ISO 9001 wants you to use facts but also balance them with experience and intuition.
3. Six Sigma and innovation do not coexist in the same world
A. Another important theme of ISO 9001 is continuous improvement. Unlike Six Sigma, ISO 9001 puts innovation squarely on the roadmap for organizational success.
4. It’s all about numbers, not customers
A. Once again, ISO 9001 makes it very clear throughout the standard that customer focus is a key element for business success.
5. Six Sigma = cost reduction. Surely, your business exists for more than just cutting costs.
A. ISO 9001 reminds us that in addition to reducing costs, we must also focus on mutually beneficial supplier relationships, leadership, people engagement and more.
6. Six Sigma = micromanagement
A. ISO 9001 is anything but micromanagement if implemented correctly by an experienced consultant. The standard only required six documented procedures. A smooth running ISO 9001 certified business is one that operates on its own positive and organic momentum.
7. It is elitist. Since when should a company only receive instructions from Black Belts? What happened to everyone in a company acting as a process improver?
A. Not the case with ISO 9001. Only one central role of Management Representative should be assigned. As for the rest of the employees, everyone is encouraged to do their part.
8. Does not incorporate information technology, a huge force that can impact processes
A. There is nothing specifically written in ISO 9001 that refers to information technology. However, several sections of the standard provide ample opportunity for IT to shine and play a central role.
9. Advocate for incremental improvements, not breakthroughs
A. One of my favorite management principles from ISO 9001 is continuous improvement.
10. Read any article on Six Sigma and you are bound to find a disclaimer section that addresses concerns or issues related to Six Sigma.
A. ISO 9001 does not generate the same type of backlash that Six Sigma is receiving
11. A Fortune 500 article stated that “of 58 large companies that have announced Six Sigma programs, 91% have lagged behind the S&P 500 since.”
A. On the other hand, a Harvard Business School working paper by David I. Levine and Michael W. Toffel published on January 18, 2010 concludes that ISO 9001 offers value, is not a fad, increases sales by about 10% and more. The authors mention “…the strength and consistency of our findings leads us to shift our own background in favor of the hypothesis that adoption of ISO 9001 is more beneficial than we had anticipated.”
12. It is based on arbitrary standards
A. 3.4 defects per million opportunities sounds pretty good to some industries that assume their products are life-threatening or just can’t stand any margin for error. But would the same strict standard apply to your typical contact center or service provider? Why does it need to be six standard deviations? This is not explained. Additionally, Six Sigma operates under the assumption that process data always conforms to a normal distribution model.
Hopefully this helps shed more light on the controversial issue of comparing Six Sigma to ISO 9001.