Review and implementation of performance management models in construction engineering organizations

Performance management is a key issue in the construction industry as a result of complex internal and external factors. Large construction organizations are implementing performance management models to improve business processes, products and management of people to facilitate continuous improvement. This study investigates the implementation of performance management models in large construction engineering organizations. First, a brief review of the drive for performance improvement and the strategic considerations for the adoption of performance management models is carried out with specific reference to the Balanced Scorecard and the EFQM Excellence Model. Second, using case studies of large construction engineering organizations, the findings from the implementation of performance management models are analysed and discussed. It is shown that whilst progress has been made in the implementation of performance management models in large construction organizations, significant challenges remained at the planning, deployment and assessment and review stages. This includes the motivation for performance management, leadership and resources, communication mechanisms, measurement and data collection techniques and the role of knowledge management. Performance management models provide a basis to develop strategy for sustaining longterm business objectives, and more construction organizations will adopt such innovative tools to facilitate continuous improvement, as the business benefits become clear.