Six Sigma and Business Acumen

A common mantra in Six Sigma is to “make decisions based on data”. This is a flawed strategy that probably comes from Six Sigma’s dependence on statistical experts instead of business experts. A Six Sigma Black Belt or Master Black Belt is only as good as their business leadership skills. This is why a form test for Six Sigma certification will not work. A form test cannot measure leadership skills or business acumen. You need the full package to be effective. This is why so many Six Sigma initiatives fail. There is too much emphasis on math skills and not enough on business acumen and leadership.

Good business decisions take both data and business acumen. Data by itself can tell you what is happening, if you have measured the right things. Business acumen will enable you to measure the right things and help you to understand the “why” behind the data. Business leadership is used to lead change.
There is also the question of significance. Data can tell you statistical significance, but business acumen is required to understand practical significance. For example, a process change can produce a statistical significant shift in a product or service that is insignificant to the customer or business from a practical point of view.

To continue to be relevant to the business world, Six Sigma will have to become more business acumen and leadership focused.

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