1. As firms and organisations become larger, they subsequently operate in complex and dynamic environments. The need for cross-
functional integration compels firms to adopt more process oriented approach to project definition and activities. The Balanced
Scorecard (BSC) goes some way towards providing statistical measures of performance against established outcomes. Similarly
Lean Six Sigma provides a proven and adaptable process, but exclusively on production and manufacturing process. The research
will examine the synergies that exist in the Project Management field, and examine alternative approaches and methodologies
across perceived competing projects championed by different groups within the same organisation.
Balanced Scorecard (BSC) frameworks and Six Sigma measurement in
complex project environments
Author: Hugo M. Muianga, Supervisors: Dr. Jon Whitty, A/Prof. Margee Hume
School of Management and Marketing, Faculty of Business and Law
University of Southern Queensland ● Sprinfield ● Queensland ● Australia
1. Research Problem
2. The literature
The Balanced Scorecard (BSC) provides organisations with an
exclusive framework for measuring performance against
strategic intent. It is widely accepted and similarly provides a
roadmap for the integration of Six Sigma into organisations by
facilitating the transformation of strategy into performance
measures.
By leveraging the strengths within these frameworks, strategy
formulation and effective execution provides for higher level
metrics and initiatives. On the one hand, BSC aids
organisations in formalising the strategy: and on the other Six
Sigma is an organisational approach towards operational
excellence widely proven.
When fused, Six Sigma provides a defined problem-solving
methodology with the capability to effect measurable process
improvements, the BSC facilitates the translation of strategy into
higher level metrics.
In the Program and Project Management context, it is not the
quality of knowledge that is a strategic advantage, rather the
organisations ability to effectively apply existing knowledge to
create new knowledge.
Initial review of the literature has identified benchmarking
processes as an organisational tool to translate financial
performance and overall competitive advantage.
The globalisation of extended value chains (firms and
organisations) necessitates a different information infrastructure,
and with a greater need for effective performance measures.
Third-generation balanced scorecard (BSC) provides a
preliminary design methodology, however the paper seeks to
extend this process into a ‘real life context’: one that the field of
Project Management provides.
6. Preliminary Findings
The literature identifies an increasingly complex and turbulent
business environment, firms require a robust and established
link between strategy and effective strategy execution.
The emerging issue of benchmarking increasingly provides for
a clearer understanding of the complexity of an increasingly
intertwined business practices.
As organisations strive to measure and improve on their
performance outcomes, benchmarking is identified as
systematically identifying the processes and performance
outcomes in constantly changing business environments.
3. The literature gaps
4. Research Proposal
The objective of the study is to develop a framework for the project
organisation with a methodical and thoroughly quantifiable
information system to enhance organisational processes and
realise strategic objectives with adaptable performance indexes.
When thoroughly reviewed, the proposed design will be deployed
using a thorough change management process, the BSC in
combination with Six Sigma, will articulate and execute strategy as
a platform for business excellence and improvement in a Project
Management context.
5. Methodology
The Total Performance Scorecard (TPS) provides a top-down
benchmark instrument used for guiding a firms strategic vision
at the project level.
The top-down approach can be executed iteratively, and
across successive organisational levels and functions.
Personal Balanced
Scorecard
Project Defined
Scorecard
Lean Six Sigma
Organisational
Balanced Scorecard
Organisational
Balanced Scorecard
• Improving
(Business alignment)
• Developing
(Project alignment)
• Learning
(Cultural alignment)