Tennant, S and Langford, D (2008) The construction project balanced scorecard. In: Dainty, A (ed.) Proceedings of 24th Annual ARCOM Conference, 1-3 September 2008, Cardiff, UK.
Abstract
The performance measurement criterion for construction project success has traditionally been founded on cost, time and specification. Present day performance management systems encourage a holistic outlook for the evaluation of project efficiency. Systems have evolved from what was essentially an accounting method of performance measurement into a heterogeneous range of performance statistics each specifically intended to assess various attributes of organisational importance. The literature review reflects on the philosophy of a performance management system and its relevance within current industry practice. The potential application of contemporary performance management models purposely tailored for the measurement of individual construction project 'well-being' is examined. Two well-known performance management frameworks, the EFQM Business Excellence Model and Kaplan and Norton’s Balanced Scorecard are assessed for their appropriateness within the field of construction management. The resultant case-study adopts a balanced scorecard format, mapping carefully selected Key Performance Indicators (KPI) from the Constructing Excellence in the Built Environment KPI pack with the four inter-related business perspectives advocated by Kaplan and Norton. Research findings suggest the adaptation of performance management systems for project appraisal have potential benefits for construction managers. Project performance can be evaluated from numerous stakeholder viewpoints, accentuating discrete measures of performance. Collectively, the results highlight project strengths and weaknesses within a pragmatic performance measurement framework. Furthermore KPI assessment across a number of construction projects discloses organisational trends that may otherwise not be so readily evident. The application of a construction project Balanced Scorecard aligned with the established practice of performance goal-setting may also facilitate the introduction of project team-based reward initiatives. The innovative construction project performance template also endorses a number of important management principles, including performance management, organisational learning, best practice, benchmarking, project monitoring and control.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | balanced scorecard; efqm; key performance indicators; measurement framework; performance management |
| Index terms: | construction project, best practice, mapping, well-being, project performance, built environment, construction manager, statistics, accounting, project team, benchmarking, project monitoring, performance management framework, organizational learning, balanced scorecard, performance measurement, efficiency, performance management, specification, key performance indicator, project appraisal, literature review, philosophy, adaptation |
| Subjects: | infrastructure and transport systems, philosophical studies, project management theory and practice, professional development, contractual condition, production management, performance management, spatial and geospatial analysis, performance measurement, economic analysis, project delivery, data analysis and analytics, control systems, user focus, mental health and wellbeing, business, mathematical modelling, profession |
| Topics: | Urban Studies, Design Practice, Quality Management, Contract Administration, Health and Safety, Business Strategy, Information Management, Research Practice, Project Management, Roles and Professions |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here