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)