Performance Managment

This paper presents a review of literature of performance management/measurement
in various industries with the aim of transferring best practise into construction. A
framework is presented which ensures that effective strategies are deployed to form
the performance management system that construction organisations can adopt. The
Process Performance conceptual Framework (PPF) adopts the balanced scorecard
(BSC) with the addition of a number of elements/perspectives and it rationalises the
relationships between performance measures and goals derived from strategy. In
doing so, the impact of those measures to an organisation’s performance can be
examined and analysed to indicate potential improvement areas. The paper also
identifies a number of areas that can be used to validate the PPF.
Throughout the last two decades a number of industries, primarily manufacturing,
have introduced new methods and techniques to shift traditional paradigms in order to
improve their performance. This has led to the creation of new philosophies such as
concurrent engineering/construction, lean production/construction and many others
such as JIT, TQM, TPM etc. The main driver behind those philosophies is to optimise
an organisation’s performance both internally and externally within its respective
marketplace. Inevitably, this has led to the ‘rethinking’ of performance management
systems through effective performance measurement. Bititci et al. (1997) explain the
distinction between performance management and measurement in that the first “… is
seen as a closed loop control system which deploys policy and strategy, and obtains
feedback from various levels in order to manage the performance of the system”
Performance Management and Measurement - mike perm paper
Michail Kagioglou Page 2 05/04/01
whereas the performance measurement system “… is the information system which is
at the heart of the performance management process and it is of...