Integrating the Balanced Scorecard with Six Sigma

Abstract

Purpose The purpose of this paper is to provide new insights in understanding the value of integrating the Balanced Scorecard (BSC) with Six Sigma. Design/methodology/approach The paper is based on a comprehensive literature review of the BSC and Six Sigma. The literature review provides the basis for a new integration framework that is grounded on the Plan‐Do‐Check‐Act cycle. Findings The literature review for both Six Sigma and the BSC crystallise how a fusion can add further value in comparison to a standalone implementation of either the BSC or Six Sigma. This new integration framework is identified through first, leveraging the strengths of both the BSC and Six Sigma and second, by incorporating the key themes of the literature review. Practical implications This paper provides practitioners with a greater understanding of the value of integrating Six Sigma with the BSC. Also, the study provides a framework that can serve as a basis for the integration of Six Sigma with the BSC. Originality/value Little research has been carried out on the integration of the BSC with Six Sigma. This paper takes a novel approach for the integration framework by identifying the integration leverage points through the strengths and weaknesses of both the BSC and Six Sigma. The key contribution of this paper is that it provides new insights in understanding how the BSC can be integrated with Six Sigma. In addition, the paper provides direction for future research that will address weaknesses in the way organisations execute integration of the BSC with Six Sigma today.