Six Sigma

Continual problem-solving is not the same thing as continuous improvement. (Ouellette, 2002)

We frequently hear this question

"Is Business Performance Excellence the same thing as Six Sigma?"

And the answer is...yes and no. All of the traditional Six Sigma tools and training are present within BPE, but with an emphasis on integration with other techniques to increase profit.

Six Sigma is both a statistical phrase and a marketing term. Its meaning has, purposefully or not, become very confusing.

Those of us at ROI and other consulting firms that have real world experience would typically refer to Six Sigma as something like this:

Six Sigma refers to a set of tools and techniques that strive to maximize long-term profitability while achieving the lowest economical nonconformance rate, and the highest economical customer satisfaction.

And using this definition, BPE could be a way of achieving Six Sigma. However, there is one fundamental difference between most Six Sigma implementations and BPE. Traditional Six Sigma emphasizes minimizing cost or waste, as per Harry and Schroeder:

[Six Sigma is] "a business process that allows companies to drastically improve their bottom line by designing and monitoring everyday business activities in ways that minimize waste and resources while increasing customer satisfaction." (Harry and Schroeder, 2000)

Where BPE focuses on maximizing profitability for the client company.

Business Performance Excellence is achieved when an organization is generating the maximum level of profitability possible given the human, financial, capital, and other resources it possesses. (Luftig, 1998)

Though at first glance this may seem to be a minor point, this is a major difference in outlook that has far-reaching consequences. For example, Six Sigma as traditionally practiced would try to minimize the waste and cost associated with your process to serve your customers. BPE on the other hand might drive you to analyze your customer and product base and find that you can increase profit by eliminating certain products. BPE would also tell you how to best deploy your Problem-Solving Specialists (Black Belts) to improve profitability.

A system does need to be in place to attack and eliminate unnecessary costs and processes (e.g. advanced problem-solving), but this is not all a company needs to do. Six Sigma drives down costs and waste, some of which may be reflected to the bottom line as a savings. But reducing waste and inefficiencies is not always the most efficient way of increasing profit. BPE is a more fully-integrated model to help a business achieve and maintain best-in-class profitability.

So, is BPE Six Sigma? You decide. But whatever you call it, it will move your company to the next level of profitability.

To see why our Six Sigma Black Belt training is the best, visit our Black Belt page next.