Key performance indicator (KPI)
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Although the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focus on aspects regarding organisational performance that are extremely vital for the current and future success of the organisation (Parmenter, 2004). If company managers and staff focus on the KPIs together, it can guide an organisation to improve performance effetctively, if used precisely. | Although the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focus on aspects regarding organisational performance that are extremely vital for the current and future success of the organisation (Parmenter, 2004). If company managers and staff focus on the KPIs together, it can guide an organisation to improve performance effetctively, if used precisely. | ||
| − | To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects and lastly, the frequency of safety incidents (Vitez, 2010). | + | To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects and lastly, the frequency of safety incidents (Vitez, 2010). Within project management, there are a wide range of tools that can be used to asses the progress towards a target to be achieved and are usually decided at an early stage of the project. |
Revision as of 20:13, 17 February 2019
Abstract
The performance of an organization can be measured using key performance indicators (KPI). Although the benefits of Key Performance Indicators are yet to be discovered by the construction industry, they represent a set of measures which focus on aspects regarding organisational performance that are extremely vital for the current and future success of the organisation (Parmenter, 2004). If company managers and staff focus on the KPIs together, it can guide an organisation to improve performance effetctively, if used precisely.
To measure their success, different business industries have various sets ´of KPIs. Companies in the construction industry use specific indicators such as reviewing the cost of materials in comparison to the predetermined budget, the financial advantage of construction projects and lastly, the frequency of safety incidents (Vitez, 2010). Within project management, there are a wide range of tools that can be used to asses the progress towards a target to be achieved and are usually decided at an early stage of the project.
