The construction project balanced scorecard

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.