Battle Royale - Systems Thinking Versus Six Sigma!
Posted by Michael Dattilio on Sun, Mar 13, 2011 @ 04:40 PM
Seems like organizations only make room for one methodology to address problem solving or decision making. Usually, a new executive comes into the company or a current executive hears about a cure-all approach that saved another company and mandates its implementation.
You've been a part of this I'll bet. And we've seen it. It's going to happen again. We just don't want you to do this with systems thinking, which is why we want to connect two seemingly opposite methodologies, Six Sigma and Systems Thinking.
As we pointed out in a previous blog post, "Don't Buy the Hype, Systems Thinking is NOT the Answer!", unless Systems Thinking fits into your business planning and becomes strategically integrated, it won't do you much good as a mere training course.
The same is true for approaches such as Six Sigma. There will be useful but limited application of the tools, but strategic traction will be elusive.
And when we have talked about Systems Thinking with companies who are currently using Six Sigma, they often see it as an "either-or" arrangement and tell us they are using Six Sigma for their problem-solving.
Shame on us for not explaining the value of Systems Thinking beyond problem-solving and the value it brings to an approach such as Six Sigma. Let's do this now.
Within any organization, there are processes where all variables are known and able to be controlled (even if they aren't controlled at the moment). Classic Six Sigma value is realized here, where linear processes are deconstructed, analyzed and rebuilt with new controls in place to create a predictable outcome. The best applications are on manufacturing problems.
A good Master Black Belt will also choose problems that exist within clear boundaries and where the sponsor has a high degree of control over the components. This produces a high likelihood of success, measurable results and removes defects from the process. The process is now "doing things right".
Systems Thinking advocates are chomping at the bit, I can feel it. Hold on Hoss, here comes your glory....
Systems Thinking can't compete with Six Sigma on solving linear problems such as manufacturing defects. (High-fives in the Six Sigma camp!) Actually, we don't really want Systems Thinking to compete with Six Sigma at all.
There are other problems in companies where not all variables are known and exist both in and outside of a given boundary. They also may not be able to be controlled to create predictability. Things such as customer satisfaction or employee turnover fall into this category.
Here is where Systems Thinking is more useful than Six Sigma. By constructing a model of the interactions surrounding a problem, you can test different scenarios and find high-impact leverage points among the systemic variables. The result is "doing the right thing" by working on the biggest contributors to the problem. You won't completely "fix" the problem because of it's dynamic nature, but in Six Sigma speak, you can bring it into acceptable limits.
In my experience and opinion, the most powerful strategic problem-solving approach is using both Six Sigma and Systems Thinking in tandem to "do the right things the right way" (This is a Chris Argyris idea).
Think about it - if you identify high-impact strategic variables and one or two of those contain linear problems that are contributing to the larger problem, using Six Sigma would be my choice. And vice-versa, sometimes Six Sigma tries to solve a problem, usually one that relies heavily on people, and the results are unimpressive and hard to measure.
Realize that when you choose to implement either Six Sigma or Systems Thinking, you are missing half of the equation. Also realize that it takes time for anything new to gain acceptance, and while Six Sigma will produce results quickly, Systems Thinking will help produce the right strategic results over time.
Once you get good at using both together to solve existing problems, you can turn them loose on strategic decisions for future opportunities. This is where the true strength lies, identifying strategic opportunities with Systems Thinking and using Six Sigma to quickly operationalize those ideas.
What has been your experience? Where do you stand on the either-or issue? Let us know by commenting below!