msc thesis presentation
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TRANSCRIPT
Project-level Key Performance Indicators in Construction Projects
A tool for Project Performance Measurement
Master ThesisMSc in Business Administration
Vasileios Iliopoulos
Supervisor: Dr. Wolfgang KetterCo-reader: Prof. Dr. Bert Balk
20/9/2012
Overview Introduction, problem statement and research question
General situation & practical situation for study Theoretical concepts and connections among them
Performance measurement & measures (KPIs) Project Success Project Management Knowledge Areas
Research Methodology & Data Collection Case study approach + interviews
Results & Findings Views on theoretical aspects, KPIs and general remarks
Conclusion Final tool / map Implications & Further Research
Introduction, problem statement & research question
General situation Companies operate under a dynamic and changeable environment
They need to continously improve their performance Starting from performance measurement sound decision making, improved execution
PERFORMANCE EXCELLENCE
Practical situation for study Many business operations deal with project execution
Companies seek project success In Project-based businesses successful project performance translates into an
improved bottom-line
Introduction, problem statement & research question (2)
Problem Statement Projects are not implemented / executed according to pre-set goals, fail
Project results disappoint stakeholders, diverge from success
???Assessment of current situation!
Performance measurement & measures (KPIs) In key knowledge areas
Research questionWhat is the appropriate set of Key Performance Indicators for the
Project Management Knowledge Areas of Scope, Time and Cost, and how can they be applied in construction projects?
Theoretical concepts and connections among them
Performance measurement: importance Perception, coordination and control of companies’ capabilities Recognition of sectors that required increased attention Tracking and monitoring of project progress Correlation of outputs with decision making
Performance measures / KPIs Tools for understanding, managing and improving companies’ functions Complemented by a predetermined level of performance Specific, Measurable, Attainable, Relevant, Timely based
SMART CRITERIA
Theoretical concepts and connections among them (2)
Project success: elements On time and within budget / cost Stakeholder satisfaction Quality and according to specifications Functionality
Project Management Knowledge Areas
Integration
Scope
Time
ProcurementRiskCommunication
Human Resource
Quality
Cost
Theoretical concepts and connections among them (3)
Performance measurement
Business performance
Project-based
business
Performance measures
(KPIs)
Project performance
Project success
Project Management
Knowledge Areas
Figure 5: Theoreticsl aspects and the
connections among them
Research Methodology & Data Collection
The case study approach
Selection of KPIs
Relation of KPIs to
knowledge areas
Preliminary tool / map
Interviews
Refinement of tool /
mapFinal tool / map
Theoretical constructs
Research Methodology & Data Collection (2)
Sources of Information
Project Management Institute (PMI) Project Management Knowledge Areas and KPIs
KPILibrary KPIs
Construction Reports Construction Project Stages
InterviewsFunction and number of interviewees (total 15) Function and number of companies (total 10)
Project Managers (7) Construction (7)
Project Directors (4) Planning & Design (2)
Business Managers (4) PM Consulting (1)
Results & Findings
Views on theoretical aspects Approval and extension of the theoretical concepts Emphasis on project success! Attention mostly on Time and Cost knowledge areas
Business Managers turn the focus on Scope
General findings Business Managers focus on future states while Project
Managers and Directors on improved execution through continuous performance measurement
Crisis and quality factor Empirical work and procedures based on experience
Results & Findings (2)
Views on performance measures / KPIs
Many interviewees use economic ‘indicators’ Lack of training, limited use of PM theories
Prevalent need of simple measures Nearly all KPIs ranked an avg. above 3,5 / 5 KPIs related to deviations from baseline and comparisons
ranked higher ‘Scope creep’ was not considered of crucial importance
Conclusion
Conclusion (2)
Managerial Implications A point of reference for Project Managers, Project Directors
and Business Managers of different scale construction projects
Standardized and mechanized performance measurement procedure
Simple to understand, easy to useFurther research
Examination of the other knowledge areas (priority on Project Quality Management)
Practical validation of the tool
THANK YOU !