Simon Beatham, Chimay Anumba, Tony Thorpe and Ian Hedges
To review the key facets of a performance measurement system (PMS) and report on the development of a new model based on the European Foundation of Quality Management (EFQM…
Abstract
Purpose
To review the key facets of a performance measurement system (PMS) and report on the development of a new model based on the European Foundation of Quality Management (EFQM) excellence model.
Design/methodology/approach
The research involved detailed literature reviews and action research within the case study organisation. It involved the design of an integrated business improvement system (IBIS) that enables proactive performance measurement within an organisation.
Findings
Key performance indicators (KPIs) are now widely used in the construction industry but there is little evidence that they are being used as an integral and systematic part of an overall PMS. The approach proposed here and encapsulated in IBIS is intended to improve current practice.
Practical implications
The research found that the active engagement of both senior management and potential end‐users is vital for the successful design and implementation of a PMS.
Originality/value
The novelty of the paper lies in the detailed description of the stages followed in the development of the IBIS, and the model itself. It will be of value to researchers and business improvement managers both within and outside the construction industry
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Simon Beatham, Chimay Anumba, Tony Thorpe and Ian Hedges
Traditionally businesses have measured their performance solely in financial terms. This limited approach has been challenged, with the introduction of the concept of key…
Abstract
Traditionally businesses have measured their performance solely in financial terms. This limited approach has been challenged, with the introduction of the concept of key performance indicators (KPIs) for non‐financial results. In response to the Latham and Egan Reports, the UK construction industry has developed its own set of KPIs. However, their effective use has been limited. This paper reviews these and other construction KPIs and concludes that most of the KPIs used are post event, lagging measures that do not provide the opportunity to change. Their results are not validated and thus are open to interpretation. The result is that KPIs are being used within the industry as a marketing tool, and not as an integral part of business management. This paper distinguishes between three types of measure and suggests a framework for their effective use within an overall performance measurement system based on change action driven by results.
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Arthasith Hastheetham and Bonaventura H.W. Hadikusumo
The purpose of this paper is to analyze the differences of the influence of implication of perceptions of business environment on Thai contractors' strategic behaviors and…
Abstract
Purpose
The purpose of this paper is to analyze the differences of the influence of implication of perceptions of business environment on Thai contractors' strategic behaviors and strategic performances.
Design/methodology/approach
Using a case study methodology, the paper extensively documents nine case studies interviewing the CEOs or senior executives, functional managers, senior project managers, and some of their clients regarding research questions developed from strategy theories with evidence that has appeared in various strategy researches in construction.
Finding
A generic theoretical framework of contractor's strategic alignment has been developed to address different strategic alignments illustrating an interaction between implication of perceptions of business environment, strategic behaviors, and strategic performances.
Practical implications
This generic framework can systematically help Thai contractors in improving strategic behaviors and yield better strategic performance. The findings can also be applied to contractors in other developing countries.
Originality/value
This paper is a strategic management study in construction that holistically emphasizes the customer and the firm as the key instead of solely emphasizing the project. The study in this area is slowly gaining recognition in the construction industry.
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Zakaria Dakhli, Zoubeir Lafhaj and Marc Bernard
While many procurement systems govern the construction sector, Design/Bid/Build is still prominent among the French building actors. The research applies Lean thinking (via a…
Abstract
Purpose
While many procurement systems govern the construction sector, Design/Bid/Build is still prominent among the French building actors. The research applies Lean thinking (via a kaizen event) to the bidding phase of a building construction company to improve its bidding outputs.
Design/methodology/approach
The method used in this study is “Action-Research”. A two-month preparation phase was needed to prepare for the kaizen event. The results were based on an assessment conducted after 6 months of the kaizen event. Performance was measured following selected indicators related to ‘Time’, “Economical Impact”, “Quality” and “Sustainability”.
Findings
The Lean implementation had positive side-effects on the company’s organization and strategy as well.
Practical implications
The findings of this action-research project can be used to help researchers and practitioners assess the potential application of Lean in the bidding phase. It also provides insights into the importance of the cultural and existing practices for a successful Lean implementation.
Originality/value
A few research projects investigated the application of Lean thinking in bidding as it is considered as a wasteful process. However, waste can also be organized. The research proves that bidding can benefit from Lean thinking.
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Luqman Oyekunle Oyewobi, Abimbola Windapo and James Olabode Bamidele Rotimi
The decision-making styles and strategies of organisations play significant roles in their competitive advantage and the achievement of superior performance. The purpose of this…
Abstract
Purpose
The decision-making styles and strategies of organisations play significant roles in their competitive advantage and the achievement of superior performance. The purpose of this study is to explore the effect of decision-making styles on the strength of the relationship between competitive strategy and organisational performance among large construction organisations based in South Africa.
Design/methodology/approach
The study focuses on large construction organisations in South Africa using a questionnaire survey to elicit information. The sample consists of 72 large construction organisations, and the measures of decision-making styles, competitive strategies and organisational performance used for the instrument utilised to elicit information were derived from the literature. Descriptive, parametric and multiple regression analyses were used to determine the effect of decision-making styles and competitive strategies on the organisations’ performance.
Findings
The results of the study show that organisations utilize all types of decision-making styles, but the most significantly adopted styles are analytical and directive. The study found that decision-making styles influence organisational performance through competitive strategies.
Research limitations/implications
The research considered large construction organisations based in South Africa and operating in three provinces, where almost 75 per cent of all public projects are being implemented. The findings can be generalised to other large construction organisations functioning within the South African industry, because most of the organisations surveyed operate nationally. However, the findings may not be generalizable to the entire industry. Small and medium-sized organisations vary in terms of structure in relation to large organisations; hence, their decision-making styles may be different.
Practical implications
The study makes explicit the need to consider the role of different decision-making styles being practiced within organisations and how their moderating effect influences organisational performance beyond rational processes. A better understanding of this will enable organisations to achieve the total commitment of their staff to achieve superior performance.
Originality/value
The study contributes to the existing literature and body of knowledge on the strategic management of organisations. It underpins the assertion that decision-making styles and competitive strategies can influence organisational performance, and this is validated within the construction industry. Knowledge of the relationships between the variables measured in this paper will be beneficial to both owners and managers of construction organisations, because they provide the necessary information on how strategic decision-making styles influence the strategy adopted and, in turn, the organisational performance.
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Josef Blasini and Susanne Leist
Although process performance management (PPM), doubtlessly contributes to the increase of business performance, it has been given only little attention to date. The purpose of…
Abstract
Purpose
Although process performance management (PPM), doubtlessly contributes to the increase of business performance, it has been given only little attention to date. The purpose of this paper is to provide a better understanding of what constitutes successful PPM and to identify critical success factors in PPM.
Design/methodology/approach
The authors conducted two complementary literature reviews – a representative literature review to get an overview of possible success factors, and an extended literature review to identify detailed success factor items. To increase the reliability of the success factors, a multiple case‐study was additionally conducted.
Findings
In the first literature review – the representative one – 11 success factors of PPM were identified, to which several detailed PPM success factor items could be identified in the extended literature review. Obviously, the success factor “information quality” is much more mentioned in literature than factors regarding “process quality” or “system quality”.
Research limitations/implications
Since there are no standardized terms regarding PPM, it is challenging to include all important papers into the literature review. The next steps to develop a PPM success model are to conceptualize a structural equation model and to conduct a worldwide online‐survey.
Practical implications
The findings of this research serve as a basis for a PPM success model, which enables practitioners to focus on what is really important for successful PPM.
Originality/value
The application of a multi‐methodological research approach resulted in success factors whose importance was evaluated by their frequency of occurrence in literature, as well as by experts in real‐life enterprises.