GE’s Problems – Strategy or Six Sigma?
The recent collapse of GE stock price has led to a lot of discussion. Here’s my two cents.
Jack Welch implemented Six Sigma at GE which drove many CEOs to do the same. From scuttlebutt I’ve picked up over the years, this lead to crazy rules like every employee had to do two Six Sigma projects a year. This would violate Pareto’s Rule: if only 20% of the business is creating 80% of the defects, waste and rework, having employees try to fix the remaining 80% of the business is a waste of resources. Six Sigma needs focus, not spread.
Jeffery Immelt reduced leadership support for Six Sigma.
