ISO 9001 vs. Six Sigma
I will not go into the history and background of each process management approach. You just have to Google “Six Sigma” or “ISO 9001” to get your fair share of information. This article is going to go for the jugular on a topic 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 this subject to give a fairly educated opinion. I can appreciate your call to action and I understand that there is a strong following, but I honestly feel that Six Sigma is a fad. It has been promoted in best-selling business books, but that was 10 years ago.
Before I get off topic, let’s jump right into a bullet point list of 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.
has. On the other hand, customer satisfaction is a main theme of ISO 9001, as customer focus is one of the eight management principles of ISO 9001.
2. Over analyze
has. On the other hand, ISO 9001 simply suggests that your business should take a factual approach to decision making. This means making informed decisions and ensuring that data and information is accurate and reliable enough and accessible to those who need it. ISO 9001 wants you to use the facts but also to balance them with experience and intuition.
3. Six Sigma and innovation do not coexist in the same world
has. 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 about numbers, not customers
has. 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.
has. ISO 9001 reminds us that in addition to reducing costs, we must also focus on mutually beneficial supplier relationships, leadership, people involvement and more.
6. Six Sigma = micromanagement
has. 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 company is one that operates with its own positive organic momentum.
7. It is elitist. Since when should a company only take instructions from Black Belts? What happened to everyone in a company acting as process improvers?
has. This is not the case with ISO 9001. Only a central Management Representative role should be assigned. As for the rest of the employees, everyone is encouraged to do their part.
8. It does not incorporate information technology, a huge force that can impact processes
has. There is nothing specifically written in ISO 9001 that refers to information technology. However, several sections of the standard provide ample opportunities for IT to shine and play a central role.
9. Advocate incremental improvements, not radical advances
has. One of my favorite ISO 9001 management principles is continuous improvement.
10. Read any Six Sigma article and you’re sure to find a disclaimer section that addresses concerns or issues related to it.
has. ISO 9001 does not generate the same kind 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 fallen behind the S&P 500 since then”
has. 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 approximately 10% and more. The authors mention “…the strength and consistency of our findings leads us to change our own record in favor of the hypothesis that the adoption of ISO 9001 is more beneficial than we had anticipated.”
12. It is based on arbitrary standards
has. 3.4 defects per million opportunities sounds great for some industries that assume their products are life-threatening or simply can’t stand any margin of error. But would you apply the same strict standard to your typical contact center or service provider? Why does it need to be six standard deviations? This is not explained. Furthermore, Six Sigma operates under the assumption that process data always fit a normal distribution model.
Hopefully this helps shed more light on the controversial issue of comparing Six Sigma to ISO 9001.