Image SourceConstruction projects are considered a success when they are completed on time and on budget, and when performance goals are achieved.
Performance goals are directly related to productivity, time management, and decision making.
It is how managers communicate what is expected of their team, measure success, give feedback, and find solutions to barriers that prevent their crew from completing their tasks.Why is performance management important in construction?Performance management is important in the construction industry because it allows managers to determine how (and if) employees are contributing to the overall business strategy and project success.
There is also room for improvement given the advancements of technology and changes to the construction industry and to society.Some of the existing and well-known performance management systems in place in the construction industry include:Lean Construction ProcessLast Planner® System Performance Process Framework The Balanced ScorecardKey Performance Indicators (KPIs)But why is it that while 92% of organizations in North America have a performance management process in place(1), only 54% of project work tasked out by foremen is actually completed within their estimated timeline?
(2)In an industry survey conducted in Q1 of 2020, 70% of businesses reported poor site coordination as the reason construction projects go over budget or past their deadline, while over half of contractors (54%) blamed project delays on poor coordination between subcontractors.
Feedback is inconsistent, in-frequent, or untimely1 in 3 project leads do not give feedback to their employees on a regular basis (e.g.