A Kaizen–QCDSM–6M diagnostic framework for lean six sigma–based improvement in financial reporting processes

Purpose This paper aims to develop an integrated Kaizen–Quality, Cost, Delivery, Safety and Morale (QCDSM)–6M diagnostic framework to identify and mitigate inefficiencies in financial reporting processes from a Lean Six Sigma perspective. It reconceptualises financial reporting as a quality-driven system, positioning accuracy and timeliness as outcomes of continuous improvement rather than regulatory compliance. Design/methodology/approach Using a conceptual–inductive design, the study applies a literature review of Lean and Total Quality Management research published between 2010 and 2025. Insights from Lean waste typologies, QCDSM performance dimensions and 6M causal factors (Man, Machine, Method, Material, Measurement and Environment) are theoretically triangulated to construct a four-layer diagnostic model linking waste identification, multidimensional evaluation and root-cause analysis. Findings The study reveals that reporting inefficiencies frequently stems from waiting, overprocessing and defect wastes associated with human, procedural and technological factors. Incremental improvements, such as mini-closing routines, digital approval workflows and standardised validation steps, enhance reporting flow, reduce cycle time and strengthen control reliability. The resulting Kaizen–QCDSM–6M model provides a structured pathway from waste diagnosis to continuous improvement in financial reporting governance. Practical implications The proposed framework and accompanying Kaizen Improvement Worksheets enable finance professionals to apply Lean Six Sigma logic to reporting workflows without significant technological investment. By diagnosing systemic inefficiencies and prioritising value-adding controls, organisations can improve transparency, governance credibility and employee engagement, thereby fostering leaner and more reliable financial reporting systems. Social implications Embedding Kaizen principles in financial reporting promotes ethical accountability, psychological safety and sustainable work practices. By reducing redundant processes, rework and overtime pressure, the framework supports organisational well-being and aligns with Sustainable Development Goal 12 (Responsible Consumption and Production). Reliable and transparent financial information enhances stakeholder trust, contributing to responsible governance and long-term social sustainability. Originality/value This study extends Lean Six Sigma theory into the underexplored domain of financial reporting by integrating Kaizen philosophy, QCDSM multidimensional diagnostics and 6M root-cause logic. The framework reframes reporting inefficiencies as systemic quality management failures and establishes a conceptual foundation for continuous improvement within financial governance and process design.