Key performance indicator (KPI)
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==Abstract== | ==Abstract== | ||
The performance of an organization or project can be measured using key performance indicators (KPI). | The performance of an organization or project 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 focuses 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 focuses 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. <ref name=''Key Performance Indicators''> “Key Performance Indicators- Developing, Implementing, and Using Winning KPIs” (2007). Retrieved 19.02.2019 from [http://pro-u4ot.info/files/books/finance/Key_Performance_Indicators.pdf?fbclid=IwAR3DX9ROdOFKAkc0VtB2i_L5duHBof00w_6iDxJCUpbjv5z5MvaHd7WjASY] David Parameter. ISBN 9780470095881. </ref> |
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. | 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. | ||
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↑ http://global.britannica.com/EBchecked/topic/378410/methodic-doubt | ↑ http://global.britannica.com/EBchecked/topic/378410/methodic-doubt | ||
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Revision as of 23:09, 22 February 2019
Contents |
Abstract
The performance of an organization or project 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 focuses 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. Cite error: Invalid <ref> tag;
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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.
Background
The construction industry in comparison to other industries are in general considered to be under performed, usually involving postponements and errors throughout the process. When determining the development in a country it is common to measure this by the development of infrastructure. It is therefore crucial for a country to have an effective and efficient construction process, depending on a high quality of financial, technical, organisational and managerial movements. In order to deliver a successful project, there are many factors to take into consideration. The management are the basis of a project or portfolio, and it is therefore significant to distinguish the orientation of the project at an early stage.
A KPI is a measurable value that demonstrates how effectively a company is achieving key business objectives, used at multiple levels to measure the performance.
Anatomy of KPI
When examining the meaning and anatomy of Key Performance Indicator (KPI) a dissection of the term can used to determine the meaning by its metric:
Key: A metric where only the key can make or break. Contributor to success of failure of a project.
Performance: To perform its performance, the metric must be controllable, where it can be measured, qualified, adjusted and controlled.
Indicator: A metric that represents the present and future performance.
Annotated Bibliography
References
↑ http://global.britannica.com/EBchecked/topic/378410/methodic-doubt
To create a reference link in the text like this [1], write [1]
Cite error:
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