Six Sigma Makes a Comeback

Here's one more reason why the world may face a jobless recovery: Six Sigma. In an attempt to boost earnings without putting more people on the payroll, companies are embracing the controversial data-driven system that aims to radically reduce production defects and improve processes in everything from marketing to manufacturing.

Companies as varied as drug giant Merck (MRK), British confectioner Cadbury, (CBY) and doughnut maker Dunkin' Brands are increasingly turning to Six Sigma to lift their bottom lines. Capital One (COF) says it has launched a Six Sigma initiative to "drive continuous improvement" in its operations, while Pfizer (PFE) this year embarked on 85 Six Sigma projects to lower the cost of delivering medicines to patients in its pharmaceutical sciences division. "We're applying Lean Six Sigma across the whole R&D process," says Pfizer Senior Vice-President Annette Doherty. (Lean Six Sigma includes elements of lean manufacturing techniques.) Even the Chicago law firm Seyfarth Shaw has become a Six Sigma devotee, with Managing Partner J. Stephen Poor calling it "a very powerful tool" in making client meetings more productive.