This document summarizes a master's thesis that examines project-level key performance indicators (KPIs) for construction projects. The thesis introduces the research topic and question, which aims to identify the appropriate set of KPIs for scope, time, and cost management and how they can be applied to construction projects. It then reviews relevant literature on performance measurement, KPIs, project success factors, and project management knowledge areas. The research methodology section describes a case study approach involving interviews with industry professionals. Findings indicate support for the theoretical frameworks but a need for simple, measurable KPIs focused on time and cost management. The conclusion presents a preliminary tool mapping KPIs to knowledge areas and discusses implications for project managers.

1. Project-level Key Performance Indicators in
Construction Projects
A tool for Project Performance Measurement
Master Thesis
MSc in Business Administration
Vasileios Iliopoulos
Supervisor: Dr. Wolfgang Ketter
Co-reader: Prof. Dr. Bert Balk
20/9/2012

2. 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

3. 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

4. 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 question
What 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?

5. 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

6. 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
Human
Resource
Quality
Integration
Cost
Scope
Time
Risk
Procurement
Communication

7. Theoretical concepts and connections
among them (3)
Performance
measurement
Project
Management
Knowledge
Areas
Business
performance
Projectbased
business
Performance
measures
(KPIs)
Project
performance
Project
success

8. Research Methodology & Data Collection
The case study approach
Theoretical
constructs
Interviews
Selection of
KPIs
Refinement
of tool /
map
Relation of
KPIs to
knowledge
areas
Preliminary
tool / map
Final tool / map

9. 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
 Interviews
Function 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)

10. 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

11. 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

12. Conclusion

13. 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 use
Further research
Examination of the other knowledge areas (priority on Project
Quality Management)
Practical validation of the tool

14. THANK YOU !