Posted by: meikah | 28 April 2009 | 8:56 pm
G.E. stocks, for one, is among those that got affected among other aspects of its business. Chicago Tribune features G.E. in its Q&A with readers.
Q: I would like information on General Electric Co. I bought some of its shares for my grandson. E.P., via the Internet
A: The giant conglomerate became famous for its efficiency and management through programs such as Six Sigma and its leadership in the fields in which it chose to compete.
It is still respected for those strengths. Furthermore, its industrial and consumer goods should benefit from the $2 trillion in stimulus programs initiated by governments around the world, though most financial benefits won’t begin until next year.
Filed under: GE, Six Sigma, Six Sigma Organizations, Stock Market
Posted by: meikah | 18 March 2009 | 7:47 pm
An article on BNET looks into the performance of Six Sigma companies in the stock market. It is saying that these companies have not really fared well.
QualPro found that 91 percent of these companies had stock performances below the S & P 500 index since announcing a Six Sigma program. Only five of the 58 companies exceeded the index. The remaining 53 companies underperformed the index. The bottom line? The majority of Six Sigma programs do not benefit a company’s stock performance.
General Electric, the poster child for Six Sigma, underperformed the S & P 500 by 30 percent over the past five years. Home Depot adopted Six Sigma in 2001. The result? Its stock has also lagged 30 percent behind the S & P 500.
This is an interesting study, actually. I’m not sure though if there is actually a direct correlation between Six Sigma and stock performance of a company. While good stock performance indicates people’s confidence in a company, that many not really translate to Six Sigma ensuring continuous quality improvement.
And it’s curious that a company whose operations are continuously improving does not get the confidence of people to invest in their stocks.
What are your thoughts on this?
*Photo from Stock.Xchng