Abstract:
Poor performance management is one of the main reasons for such
low image that the construction industry has in the society. It is percieved
as the worst, ineffective, inefficient… Even though Key Performance
Indicators (KPI) should be at the heart of every performance system, many organizations do not acknowledge their importance and thus are measuring the right things wrong and vice versa. This paper
elaborates distinction among three types of KPIs: leading, lagging
and perceptive, and explains their role in the performance measuring
process within the construction industry. Even though many authors
emphasised the importance of implementing KPIs, literature review
showed that world’s practice still does not recognize the distinction.
Furthermore, survey taken across Croatian construction industry,
showed that: 90% of proffesionals understand KPIs’ importance, 71%
used some kind of performance indicators, 63% used KPIs for internal
benchmarking, 43% showed high interest in such systems, but only
28% understood above-mentioned distinction. The survey also showed
that even though the managers percive all three types of KPIs important,
they are still not implementing them in the practice. The paper
concludes that the use of all three types of indicators is the prerequisite
for benchamarking, strategy alignment and realistic goal setting.
Keywords:
performance measures, KPI,
KPO, PerM, management,
construction, survey
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