2134/11303
A.A. Latiffi
A.A.
Latiffi
Patricia Carrillo
Patricia
Carrillo
Kirti Ruikar
Kirti
Ruikar
Chimay J. Anumba
Chimay J.
Anumba
Current performance measurement practices: studies in the United Kingdom (UK) and Malaysia
Loughborough University
2012
Construction organisations
Current practices
Performance measurement
Strategy development
Built Environment and Design not elsewhere classified
2012-12-21 15:11:42
Conference contribution
https://repository.lboro.ac.uk/articles/conference_contribution/Current_performance_measurement_practices_studies_in_the_United_Kingdom_UK_and_Malaysia/9437825
All types of construction businesses are aware of the importance of performance measurement (PM).
It is becoming increasingly difficult to ignore it, as it is an important way of improving and
sustaining businesses in the long-term as well as creating and developing strategies for organisations.
This paper focuses on the implementation of PM by construction sector organisations. It explores
current practices of PM in construction organisations of two different countries, the UK and
Malaysia. Aspects such as PM processes, tools and models used and the relationship between PM
and strategy development are explored. Also, the challenges and improvements in PM are
investigated. The main investigation consists of a literature review and interviews with selected
organisations in these countries. Interviews involved twelve large construction organisations in order
to seek their views on how organisations approach and conduct PM within their establishments. They
revealed that PM is being practised in organisations either directly or indirectly to help improve
business and profits. The appropriate use of tools and models to measure performance simplifies the
PM process. Furthermore, aspects such as financial and non-financial, for example staff or workers‟
performance, client satisfaction and social, are evaluated and measured. The interviews also revealed
that PM has a direct relationship with strategy development. However, the PM practices in
organisations remain a challenge. Staff or workers, especially the new ones, faced difficulty to
understand the PM process, and where the appropriate data for measuring performance can be
sourced. Improvement should be made in the level of awareness of this PM and in the PM process
itself and there are several approaches to addressing barriers and challenges in implementing PM.
The results from these interviews and the critical analysis of the literature review will enable
solutions to be devised for the effective use of PM from a strategic perspective.