Current performance measurement practices: studies in the United Kingdom (UK) and Malaysia

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.