Key Performance Indicators for the Construction Industry Essay Example
Key Performance Indicators for the Construction Industry
Key Performance Indicators (KPIs) are the most common benchmarking experience that construction companies and their clients will have encountered.
A KPI is the measure of a process that is critical to the success of an organization. Many organizations use KPIs. There are a number of performance measures that define the success of a project or organization.
The KPIs are essentially the evidence that culture change and process improvement are actually leading to positive change in terms of better performing projects and organizations.
The responsibility of managing growth and economic challenges requires leadership in construction companies to devise a disciplined business strategy. This strategy must efficiently address potential opportunities and problems as they arise by providing reliable, timely information to support management decision-making. Monitoring KPIs should be a part of your disciplined business strategy.
Many clients, especially within the public sector are seeking to work with companies that demonstrate a commitment to continuous improvement. Often the implementations of robust KPI systems are seen as a requirement for companies to win work. From the client perspective, KPIs provide a useful way to demonstrate wider project requirements, beyond time and cost issues.
The Purpose of the KPIs
Clients of the construction industry want their projects delivered:
- on time
- on budget
- free from defects
- efficiently
- right first time
- safely
- by profitable companies
Regular clients expect continuous improvement from their construction team to achieve year-on-year:
- reductions in project costs
- reductions in project times
The purpose of the KPIs is to enable measurement of project and organizational performance throughout the construction industry. This information can then be used for benchmarking purposes, and will be a key component of any organization’s move towards
Key Performance Indicators (KPIs) are the most common benchmarking experience that construction companies and their clients will have encountered.
A KPI is the measure of a process that is critical to the success of an organization. Many organizations use KPIs. There are a number of performance measures that define the success of a project or organization.
The KPIs are essentially the evidence that culture change and process improvement are actually leading to positive change in terms of better performing projects and organizations.
The responsibility of managing growth and economic challenges requires leadership in construction companies to devise a disciplined business strategy. This strategy must efficiently address potential opportunities and problems as they arise by providing reliable, timely information to support management decision-making. Monitoring KPIs should be a part of your disciplined business strategy.
Many clients, especially within the public sector are seeking to work with companies that demonstrate a commitment to continuous improvement. Often the implementations of robust KPI systems are seen as a requirement for companies to win work. From the client perspective, KPIs provide a useful way to demonstrate wider project requirements, beyond time and cost issues.
The Purpose of the KPIs
Clients of the construction industry want their projects delivered:
- on time
- on budget
- free from defects
- efficiently
- right first time
- safely
- by profitable companies
Regular clients expect continuous improvement from their construction team to achieve year-on-year:
- reductions in project costs
- reductions in project times
The purpose of the KPIs is to enable measurement of project and organizational performance throughout the construction industry. This information can then be used for benchmarking purposes, and will be a key component of any organization’s move towards