Using Continuous Construction Performance Measurement as a Strategic Tool for Organisational Competitiveness

Olomu, Eberhiri; An, Min; Kolo, Shaba; Ogbonda, Uche

Abstract

The current organisational over-reliance on the use of metrics and indicators that are based only on tangible assets, and financial capital, for the measurement of construction performance has proven to be inadequate for the highly complex and dynamic construction industry environments. This paper, based on the critical review of selected construction performance measurement (CoPM) and competitive strategy literatures from 2015-2024, advocates the use of integration of Balanced Scorecard (BSC) and Construction Value Chain to create an in-depth understanding of the need to use a balanced tool in the measurement of performance of construction projects. Using a systematic literature review (SLR) based on the Context-Intervention-Mechanism-Outcome (CIMO) logic framework, the paper focuses on how continuous CoPM, that produces continuous performance improvement, can be used as a strategic tool that leverages on the balanced utilisation of tangible and intangible organisational assets in project implementation. This is done in order to drive the achievement of long-term financial goals and attain competitive advantage. BSC, based on Plan-Do-Check-Act (PDCA) framework, uses balanced strategic goals and KPIs for CoPM of projects. It is believed that the iterative use of BSC for CoPM across the value chain of each construction project will lead to continuous performance improvement for the organisation. This, in turn, will create strategic value for construction organisations with construction excellence at the centre; and ultimately lead to long-term profitability, and market competitiveness of construction organisations. The main outcome of this study is the development of a performance measurement tool that integrates BSC and construction value chain; and this tool supports CoPM at the project phase-level. This extended application of BSC developed by this research is recommended to be used by top-level managers and project managers for the continuous CoPM of construction projects and competitive advantage of the organisation.

• Presentation Conference Type: Conference Paper (published)
• Conference Name: 2nd International Conference on Construction Project Management and Construction Engineering (iCCPMCE-2024)
• Start Date: Nov 20, 2024
• End Date: Nov 23, 2024
• Acceptance Date: Oct 7, 2024
• Deposit Date: Oct 15, 2024
• Volume: 1
• Book Title: Proceedings of the 2nd International Conference on Construction Project Management and Construction Engineering (iCCPMCE-2024)
• Keywords: Continuous Construction Performance Measurement, Balanced Scorecard (BSC) framework, Key Performance Indicators (KPIs), Continuous Performance Improvement, Strategy Map
• Publisher URL: http://www.iccpmce.net.au/Home.aspx