Do Process Management Programs Discourage Innovation? - Knowledge@Wharton
Proof that the premier process management program in American business has crossed over into mainstream consciousness is that a rock band in Northern Kentucky calls itself 6 Sigma. Even those who know more about frets than fractions can explain that Six Sigma is a way of increasing efficiency. A less-alliterative management tool, ISO 9000, also has many fervent adherents but, alas, no rock namesake.Within the business community, enthusiasm for process management programs such as Six Sigma, ISO 9000 or their predecessor Total Quality Management (TQM) runs strong after two decades. For example, numerous consulting firms still encourage firms to adopt Six Sigma. And despite the mid-summer departure of James McNerney to become chief executive at Boeing, 3M continues to implement the Six Sigma methods that McNerney brought in 2001 from General Electric.
Yet Wharton management professor Mary J. Benner says now may be the time to reassess the corporate utility of process management programs and apply them with more discrimination. In research done with Harvard Business School professor Michael Tushman, she has found that process management can drag organizations down and dampen innovation. “In the appropriate setting, process management activities can help companies improve efficiency, but the risk is that you misapply these programs, in particular in areas where people are supposed to be innovative,” notes Benner. “Brand new technologies to produce products that don’t exist are difficult to measure. This kind of innovation may be crowded out when you focus too much on processes you can measure.”
TQM, ISO 9000, Six Sigma: Do Process Management Programs Discourage Innovation? - Knowledge@Wharton
This entry was posted on Monday, February 20th, 2006 at 12:52 PM and filed under Process improvement. Follow comments here with the RSS 2.0 feed. Post a comment or leave a trackback.

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