Integrating Balanced Scorecard and Lean Six Sigma for Organizational Improvement

Selamat Hia

doi:10.31181/sa202583

Authors

Selamat Hia Universitas Logistik dan Bisnis Internasional Author

DOI:

https://doi.org/10.31181/sa202583

Abstract

The Balanced Scorecard (BSC) provides a strategic performance management system for translating organizational strategy into measurable objectives, while Lean Six Sigma (LSS) provides a structured methodology for operational improvement. However, the linkage between strategic performance measurement and LSS project selection and execution remains insufficiently structured. This study develops an integrated BSC–LSS framework to establish a closed-loop mechanism between strategic objectives, organizational performance metrics, improvement project prioritization, and operational improvement. A conceptual research approach was employed to integrate established concepts of strategic performance management, performance measurement, Lean Six Sigma, and improvement project selection. The proposed framework integrates strategy development, organizational metrics, Master Improvement Story, LSS project selection and prioritization, DMAIC execution, performance review, target achievement assessment, and Problem Identification and Corrective Action (PICA). The framework extends previous integration approaches by explicitly connecting strategic performance gaps with a prioritized LSS project pipeline and subsequent performance feedback. The proposed model provides a structured mechanism for aligning improvement initiatives with organizational strategy and supporting continuous performance improvement.

References

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