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Construction Project Scorecard

Construction Project Scorecard
Tennant, S and Langford, D (2008) The construction project balanced scorecard.
In:
Dainty, A (Ed)
Procs 24
th
Annual ARCOM Conference,
1-3 September 2008, Cardiff, UK, Association of Researchers
in Construction Management, 361-370.
THE CONSTRUCTION PROJECT BALANCED
SCORECARD
Stuart Tennant
1
and David Langford
2
1
School of Engineering & Science, University of the West of Scotland, Hamilton Campus, Hamilton,
ML3 0JB, UK
2
School of the Built and Natural Environment, Glasgow Caledonian University, 70 Cowcaddens Road,
Glasgow, G4 0BA, UK
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.
Keywords: balanced scorecard, EFQM, key performance indicators, measurement
framework, performance management.
INTRODUCTION
The official UK definition of construction activity “includes general construction and
special trade construction for buildings and civil engineering, building installation and
building completion. It includes new work, repair, additions and alterations, the
erection of prefabricated buildings or structures on the site and also constructions of a
temporary nature,” (National Statistics, 2003). Industry turnover is in excess of £100
1
stuart.tenna[email protected].uk
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