I can see how it can work in a very tight-knit, small team. I fail to see how such a policy can work at a bigger company, especially once you have middle management layer. Once your company grows large enough, you're going to have:
A) Prolonged discussions about what the exact and precise definition of the word "bug" is, and how whatever that was released last night and caused mayhem between clients and the support was not it
B) Bargaining so my pet stuff is released right after the holidays and I don't look like the unproductive schmuck
C) Using this to nitpick at and get rid of employees someone doesn't like
D) Stack ranking the employees by the number of bugs they let slip past them
E) A full-on war between developers and the QA department
F) Fears to make any progress at all because a bug might creep in
...and of course, anything else you might have seen in your favorite Kafka books, in "Brazil", in "1984", in Lem's "Memoirs Found in a Bathtub", you name it. Of course, in the metrics it's going to look as if the company exceeds any expectations in implementing its zero bug tolerance policy! The managers will work hard on the infographics to show you.
A) Prolonged discussions about what the exact and precise definition of the word "bug" is, and how whatever that was released last night and caused mayhem between clients and the support was not it
B) Bargaining so my pet stuff is released right after the holidays and I don't look like the unproductive schmuck
C) Using this to nitpick at and get rid of employees someone doesn't like
D) Stack ranking the employees by the number of bugs they let slip past them
E) A full-on war between developers and the QA department
F) Fears to make any progress at all because a bug might creep in
...and of course, anything else you might have seen in your favorite Kafka books, in "Brazil", in "1984", in Lem's "Memoirs Found in a Bathtub", you name it. Of course, in the metrics it's going to look as if the company exceeds any expectations in implementing its zero bug tolerance policy! The managers will work hard on the infographics to show you.