Linking lean organisational culture and balanced scorecard: an improved way of measuring lean performance

Abstract

The evolving business environment triggers the need for continuous improvement through lean management in the organisation. Many argue that measuring lean performance through financial indicators alone is insufficient and no longer valid. Hence, the surge of the balanced scorecard as an improved performance measure cannot be neglected. Therefore, it is the aim of this study to examine the relationship between lean organisational culture and balanced scorecard performance. Lean organisational culture dimensions such as situational awareness, employee engagement, managerial consistency, and accountability were used to investigate its relationship with balanced scorecard performance dimensions. 378 employees from lean manufacturing organisations in Malaysia participated in this study. The research result shows that lean organisational culture has a significant relationship with balanced scorecard performance. The results were discussed in the realm of integrating lean organisational culture with a balanced scorecard approach. The research envisages introducing a new approach to evaluate the performance of a lean organisation.