You are on page 1of 9

Performance Measurement in Construction

H. A. Bassioni, S.M.ASCE1; A. D. F. Price2; and T. M. Hassan, M.ASCE3

Abstract: Performance measurement has been subject to a considerable amount of research and attention over the past 15 years. The
inadequacy of traditional financially based performance measurement systems and the introduction of nonfinancial measures have been
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

the triggers for much of this research. The purpose of this paper is to review the main performance measurement frameworks and their
application by U.K. construction firms and to identify gaps in knowledge and practice that suggest future research. The contemporary
performance measurement frameworks are reviewed, including the Balanced Scorecard and the European Foundation for Quality Man-
agement Excellence Model. The status of performance in the U.K. construction industry is discussed, in addition to project/operational-
level performance measurement and the linkage between performance measurement and strategic management. Gaps in knowledge and
practice are overviewed both in general and for the construction industry in specific, thus suggesting future research.
DOI: 10.1061/共ASCE兲0742-597X共2004兲20:2共42兲
CE Database subject headings: Performance evaluation; Construction industry; Strategic planning; United Kingdom.

Introduction important to note that the paper focuses on performance measure-


In a time of globalization and an increasingly competitive envi- ment for the purpose of internal management of the firm and not
ronment, measuring performance has become critical to business for evaluation by clients or shareholders. Moreover, a ‘‘perfor-
success. Research in performance measurement has been sub- mance measurement system’’ refers to the measurement system
jected to considerable attention over the past 15 years. Neely implemented by a company, while a ‘‘performance measurement
共1999兲 described it as a revolution where, in the period from 1994 framework’’ is a general theoretical framework developed in re-
to 1996, some 3,615 articles have been published, and in 1996 a search that can act as the basis for a company’s performance
new book appeared on the subject in the United States every 2 measurement system. Additionally, construction firms are consid-
weeks. He also reflected on the fact that Business Intelligence, a ered firms that undertake construction of civil or building facili-
professional conference-organizing company based in the U.K., ties and can include a design function. The paper is divided into
hosted 23 conferences on performance measurement in the period two main sections: advancements in performance measurement,
from 1994 to 1999. and performance measurement in construction.
The performance measurement revolution has spread to many
industries, including the construction industry. Reports on the per- Advancements in Performance Measurement
formance of the industry have identified many areas of improve-
ment and emphasized the need for performance measurement Performance measurement is an integral part of management and
共Latham 1994; Egan 1998兲. Additionally, a significant number of thus may have been exercised ever since management has existed.
construction firms in the U.K. have implemented performance However, in the modern business literature, performance mea-
measurement frameworks within the last 5 years 共Robinson et al. surement has been traced back to the use of planning and control
2002兲. procedures by U.S. railroads in the 1860s and 1870s 共Chandler
The purpose of this paper is to review the main performance 1977; Kaplan 1984兲. In the first quarter of the 20th century, the
measurement frameworks and their application to U.K. construc- DuPont firm introduced the return on investment 共ROI兲 measure
tion firms and to identify gaps in knowledge and practice. It is and the pyramid of financial ratios, and the General Motors Com-
pany developed innovative management accounting practices of
1 the time. By 1925, many of the financial performance methods
Assistant Lecturer, Dept. of Construction and Building Engineering,
Arab Academy for Science and Technology and Maritime Transport, and techniques used today had been developed 共Chandler 1977;
Alexandria, Egypt; PhD Student, Dept. of Civil and Building Engineer- Kaplan 1984; Neely et al. 2000兲. Other models and methods have
ing, Loughborough Univ., Loughborough, LE11 3TU, UK. been developed ever since, such as discounted cash flow 共DCF兲,
2
Professor of Project Management and Director of Postgraduate residual income 共RI兲, economic value added 共EVA兲, and cash
Studies, Dept. of Civil and Building Engineering, Loughborough Univ., flow return on investment 共CFROI兲.
Loughborough, LE11 3TU, UK. The dissatisfaction with financially based performance mea-
3
Lecturer of Construction Management and Director of European surement started in the 1950s and has built momentum since the
Union Research Group, Dept. of Civil and Building Engineering, late 1970s. Its shortcomings have been well documented by a
Loughborough Univ., Loughborough, LE11 3TU, UK. plethora of authors 共Kaplan 1984; Eccles 1991; Letza 1996;
Note. Discussion open until September 1, 2004. Separate discussions
Bourne et al. 2000; Norreklit 2000兲. The main problem lies in the
must be submitted for individual papers. To extend the closing date by
one month, a written request must be filed with the ASCE Managing fact that financial information is lagging, in the sense that it de-
Editor. The manuscript for this paper was submitted for review and pos- scribes the outcome of managerial actions/decisions after they
sible publication on October 22, 2002; approved on May 30, 2003. This occur by at least one reporting period. However, managers need
paper is part of the Journal of Management in Engineering, Vol. 20, No. current, up-to-date, and mostly nonfinancial information to be
2, April 1, 2004. ©ASCE, ISSN 0742-597X/2004/2-42–50/$18.00. able to take better decisions/actions.

42 / JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004

J. Manage. Eng. 2004.20:42-50.


Performance measurement frameworks exist, other than those
mentioned, that are sometimes national in nature, such as the
performance scorecard or ‘‘tableau de bord’’ in France 共Mendoza
and Zrihen 2001兲. A separate review of the Balanced Scorecard
and Excellence Model are to follow, due to their international
recognition and use.

Balanced Scorecard
The Balanced Scorecard has been described as one of the most
influential business ideas of the past 75 years by the Harvard
Business Review and is estimated to be used by 40% of the For-
tune 1,000 companies at the end of 2001 共Marr 2001兲. The score-
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

card is divided into four perspectives, as shown in Fig. 2. It has an


important underlying principle, which is cause and effect between
perspectives. Innovation and learning develop new processes and
technologies that decrease costs and increase efficiencies in the
internal business perspective, which in turn provides more value
to the customer and therefore satisfies them, and will finally reap
improved financial results.
Although the Balanced Scorecard has gained popularity in re-
search and industry, it still has its shortcomings. Schneiderman
共1999兲 and Neely and Bourne 共2000兲 reported that the majority of
Balanced Scorecard implementation initiatives in firms fail, and
Fig. 1. The Performance Pyramid. Cross and Lynch, Copyright ©
that the four perspectives of the Balanced Scorecard have been
1988/1989 National Productivity Review, John Wiley & Sons.
considered insufficient. Additional general perspectives have been
Reprinted by permission of John Wiley & Sons, Inc.
identified, such as competition 共Neely et al. 1995兲 and employee
共Neely 2002兲, as well as application-specific perspectives, such as
project and supplier for construction 共Kagioglou et al. 2001兲.
Contemporary Performance Measurement Frameworks
Other examples of additional or modified perspectives can be
After a long dependence on financial measures, Keegan et al.’s found in Hasan and Tibbits 共2000兲, Letza 共1996兲, and Niven
共1989兲 performance matrix promoted the classification of perfor- 共2001兲. Furthermore, Norreklit 共2000兲 analyzed the assumptions
mance measures into cost and noncost measures, and Maskell that the Balanced Scorecard is built on, which are the cause-and-
共1989兲 advocated the use of performance measures based on effect relationship between perspectives, and the Balanced Score-
world-class manufacturing 共WCM兲 measures such as quality, card being a strategic management system. He logically defeated
time, process, and flexibility. Cross and Lynch 共1988 –1989兲 pre- them and anticipated using the Balanced Scorecard to produce
scribed underlying relationships among the basic performance cri- faulty performance indicators and suboptimal performance.
teria 共performance dimensions兲 in the performance pyramid The Balanced Scorecard appeared at a time of high reliance on
shown in Fig. 1. Dixon et al. 共1990兲 recognized the need for financial measures 共Kaplan and Norton 1992, 1993兲 and has been
performance systems to identify areas of improvement and work an excellent contribution to performance measurement. This does
on developing them, thus devising the performance measurement not mean it is complete or comprehensive, as reviewed above.
questionnaire 共PMQ兲. Brignall et al. 共1991兲 applied the nonfinan- Nevertheless, it was at the top of a wave of performance measure-
cial concept to the service industry and suggested the idea of ment frameworks that developed as a natural and gradual evolu-
dividing performance criteria into determinants and results. Az- tion of performance measurement.
zone et al. 共1991兲 promoted the importance of the time criteria in
their matrix for time-based companies. Quality-Based Performance Excellence Models
Kaplan and Norton’s 共1992, 1993兲 Balanced Scorecard intro- Over the last few decades many quality management models have
duced a new concept to performance measurement frameworks been adopted for the purpose of improving performance. The
with four broad perspectives: financial, customer, internal pro- most-utilized models are the European Foundation for Quality
cesses, and innovation. The scorecard was further promoted as a Management 共EFQM兲 Excellence Model in Europe, the Malcolm
strategic management system 共Kaplan and Norton 1996, Baldrige National Quality Award 共MBNQA兲 in the United States,
2001a,b兲. Sinclair and Zairi 共1995a,b,c兲, Flapper et al. 共1996兲, and the Deming Prize in Japan.
Bititci et al. 共1997兲, Ghalayani et al. 共1997兲, Medori 共1998兲, and The EFQM and Baldrige models have gained much popularity
Oliver and Palmer 共1998兲 all developed advanced performance in the last 10 years. However, three basic issues have been raised
measurement frameworks that contained additional design and against the models. First, are the models a good representation for
implementation features. or equivalent to total quality management 共TQM兲? Although
The performance prism of Neely and Adams 共2001兲 looked at based on TQM principles, both models evolved from the classic
performance measurement from another new perspective. All pre- total quality concept 共management of quality兲 to a more business
vious frameworks stressed the fact that performance measurement excellence 共quality of management兲 approach 共Adebanjo 2001兲.
should be derived from strategy. Neely and Adams 共2001兲, how- The second issue raised against the models, and TQM in general,
ever, considered this a fallacy and advocated that performance is their success in affecting bottom-line financial results. Conflict-
measurement focus first on measuring stakeholders’ needs and ing studies exist, yet the mainstream of research supports the
contributions and then on the required strategies, processes, and quality models and TQM in reaping financial results, but in the
capabilities. long term and subject to effective implementation 共Zairi et al.

JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004 / 43

J. Manage. Eng. 2004.20:42-50.


Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

Fig. 2. The Balanced Scorecard Reprinted by permission of Harvard Business Review, From ‘‘The Balanced Scorecard—Measures That Drive
Performance,’’ by Robert S. Kaplan and David P. Norton, January–February, 1992. Copyright © 1992 by the Harvard Business School Publishing
Corporation, all rights reserved.

1994; Przasnyski and Lawrence 1999; Macleod and Baxter 2001; 5. Little consideration for existing performance systems and
NIST 2002兲. The third criticism of quality models relates to their their interaction with the model/framework.
limitations as excellence models. The EFQM criteria have been
described as vague and underrated in the areas of improvement,
Gaps in Knowledge and Practice
innovation, and supplier partnership strategies 共Azhashemi and
Ho 1999兲. Garvin 共1991兲, a previous member of the MBNQA Many performance measurement frameworks and performance
board of overseers, said ‘‘Baldrige is in no way a complete award improvement initiatives/methods exist 关e.g., Balanced Scorecard,
for corporate excellence,’’ criticizing its lack of important areas, EFQM, just-in-time 共JIT兲, benchmarking, and activity-based man-
such as innovation, marketing savvy, strategic positioning, and agement兲. Each is different in the way it measures performance,
organization design. A good overview of the business excellence yet they can coexist simultaneously. How is that possible? Is any
models’ limitations can be found in Leonard and McAdam one better or more valid than the others? They all are valid but
共2002兲.
Although originally intended as business excellence models,
the EFQM and Baldrige models have been used as performance
measurement frameworks. They both contain criteria that require
measuring of results, and their criteria can be used to identify
dimensions of performance measurement. Fig. 3 shows the crite-
ria of the EFQM Excellence Model.
A general critique of the deficiencies of the overviewed per-
formance measurement frameworks and excellence models indi-
cates that they have one or more of the following limitations:
1. Limited/noncomprehensive performance criteria/
perspectives;
2. No relations among criteria, or if relations exist, they are
simple and do not simulate actual complexities;
3. No measure development or design process;
4. Lack of implementation guidelines and long-term mainte-
Fig. 3. The EFQM Excellence Model—2002 © EFQM. The EFQM
nance of the framework to adapt to the changing environ-
Excellence Model is a registered trademark.
ment; and

44 / JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004

J. Manage. Eng. 2004.20:42-50.


measure different aspects of performance. Neely and Adams 1992; Kaplan and Norton 1993; Vitale and Mavrinac 1994;
共2001兲 explain that performance is multifaceted and that each Flapper et al. 1996; Medori 1998; Oliver and Palmer 1998;
framework or method addresses a unique perspective of perfor- Bourne et al. 2000兲. Implementation problems can lead to the
mance. Furthermore, no one answer exists for all situations. How- failure of even the best-designed performance measurement
ever, there is a demand in practice and research to develop more systems 共Neely and Bourne 2000兲. Research needs to develop
comprehensive performance measurement frameworks 共Neely more robust implementation techniques that adopt change
and Adams 2001兲. This demand represents a considerable gap in management as an integral part of the implementation process.
performance measurement knowledge. • Performance measurement systems in companies are over-
Other gaps in knowledge exist, each suggesting a potential loaded with measures. New measures are added, but obsolete
area for future research. The following points provide a review of measures are rarely deleted 共Neely 1999; McJorrow and Cook
these gaps: 2000兲. Dynamism and flexibility should be characteristics of
measurement systems, where the systems are modified with
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

• Managers want as easy solutions as possible, with minimum


alterations of their existing company measurement systems, the occurrence of relevant external and internal changes. These
which might follow a certain performance measurement issues have been discussed by a number of authors 共Ghalayani
framework or a bespoke method, or even be unrelated perfor- et al. 1997; Neely et al. 1997; Bititci and Turner 2000兲. Cur-
mance indicators used by management. On the other hand, rent knowledge and techniques are sufficiently mature in this
Eccles 共1991兲 advocates that performance measurement sys- area, but many performance measurement systems are still
tem design should start from scratch. Barsky and Bremser static 共Bititci and Turner 2000兲. The need remains for research
共1999兲, however, showed how budgeting can be used in a Bal- to further address the dynamism and flexibility of performance
anced Scorecard environment. Research needs to identify how measurement systems.
contemporary performance measurement frameworks should • Performance measurement systems have no use if not used as
interact with existing company measurement systems. For ex- guidance to management decisions. The feedback loop and
ample, surveys of existing systems can be conducted in differ- consequent decision making are necessary to convert measure-
ent disciplines to identify frameworks’ utilization, or the mea- ment systems into management systems. This notion has been
sures most used in the industry. Methods for evaluating discussed by Grady 共1991兲 and Medori 共1998兲. Failure to take
whether to use existing systems/measures/information or to actions and manage with measurement data has been consid-
develop a totally new system need to be developed. Further- ered an ultimate management sin, but has however been a
more, techniques are required to identify how the existing common and increasing issue in many modern organizations
measures/information can be used within a certain perfor- 共Neely and Bourne 2000兲. Research needs to identify the rea-
mance measurement framework or in a newly designed sys- sons for failure to translate measurement information into ac-
tem. tion and suggest necessary remedies.
• Procedures for designing performance measures/indicators
have been described in many publications. However, the issue
of target- and standard-setting of measures is still problematic Performance Measurement in U.K. Construction
for firms. Target-setting techniques have been covered in re-
search 共Sinclair and Zairi 2000兲, yet target values are usually The construction industry in the U.K. and many other developed
negotiated rather than studied 共Flapper et al. 1996; Schneider- countries has a long track record of less than optimal performance
man 1999兲. Research still needs to identify how managers 共Kagioglou et al. 1999; Lee et al. 2000; Smith 2001兲. A number
could be encouraged to adopt target- and standard-setting tech- of industry reports and investigations, dating back to the Simon
niques. It is possible that other techniques are needed, or it report in 1944 共Banwell 1964兲, have indicated the need for
might just be a problem of awareness. change and improvement. The more recent reports of Latham
• Financial measures have historically been easily aggregated 共1994兲 and Egan 共1998兲 have shed more light on the current status
over organizational levels and across functions. However, with of the industry and the areas and tasks required for performance
the introduction of nonfinancial measures, different units of improvement. The Latham report advocated improvement in the
measurement exist and aggregation is no longer a simple task. efficiency and competitiveness of the industry through reforms in
Suwignjo et al. 共2000兲 and Bititci et al. 共2001兲 have provided contracting, tendering, design process, quality management, pro-
quantitative models that structure measures hierarchically, ductivity, training, education, and other issues. In his report to the
evaluate their effect on each other, and quantify relative effects government, Rethinking Construction, Egan 共1998兲 described
using the standard analytic hierarchy process 共AHP兲. Schrank how the U.K. construction industry, at its best, displays excel-
共1998兲 has also presented a quantification methodology for lence. However, he had deep concerns that the industry is under-
aggregating measures within a ‘‘goal-oriented performance achieving and that substantial improvements in quality and effi-
evaluation’’ approach. On the other hand, Palmer and Parker ciency are possible. He further elaborated that the industry has
共2001兲 have argued, based on the recent applications of uncer- low profitability and invests too little in capital, research and de-
tainty and chaos theory to management, that measures should velopment, and training, and moreover, too many clients are dis-
not be broken down into their components. They stated that satisfied with its overall performance. Egan 共1998兲 identified spe-
the performance of a measure is affected by numerous factors, cific targets for improvements in terms of productivity, profits,
and a small change in any of these factors can result in a major quality, safety, and project performance, and most important for
effect on the resulting measure, thus making aggregation ef- this paper, he emphasized the importance of ambitious targets and
forts pointless. Research is still limited in this area and needs the role of performance measurement in delivering improvement.
to indicate the validity, usability, and practicality of aggrega- Following Egan’s 共1998兲 report, many government and insti-
tion methods and to probably suggest new techniques. tutional schemes and initiatives have been aligned to address the
• Implementation of performance measurement systems has implementation of Egan’s principles 共DTI 2002a兲. A further report
been discussed by a plethora of authors 共Eccles and Pyburn by Fairclough 共2002兲, Rethinking Construction Innovation and

JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004 / 45

J. Manage. Eng. 2004.20:42-50.


Research, reviewed government R&D policies and practices. Ad-
ditionally, construction organizations have shown significant in-
terest in performance measurement 共Robinson et al. 2002兲.
Recent performance improvement trends have developed in
the industry and have had their effects on performance measure-
ment. Sustainable construction is one example that has received
growing interest in both the private and public sectors. The U.K.
government published a strategy for sustainable development, ‘‘A
Better Quality of Life,’’ in May 1999 共DTI 2002b兲. Researchers
as well as companies are looking for ways to improve construc-
tion sustainability and subsequently to measure it. Another ex-
ample of performance improvement trends is social responsibility.
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

Companies worldwide and across industries have had increased


interest in the issue. Quality assurance standards, such as the ISO
14000 family, and business excellence models, such as EFQM,
have addressed the subject. Other trends also exist, but it is out of
the scope of this paper to sufficiently address or numerate them.
Examples are knowledge management, lean construction, and Fig. 4. The utilization of performance measurement frameworks in
concurrent construction. leading U.K. construction firms 共adapted from Robinson et al. 2002兲.

Project and Operational Performance Measurement


tion, whereas the focus of this paper is on performance measure-
The construction industry is a project-oriented industry where ment for internal management purposes.
each project is unique and could be considered as a prototype, The following issues describe the implementation of perfor-
although a similar set of process stages is involved in every mance measurement frameworks in construction firms and the
project 共Wegelius-Lehtonen 2001兲. It remains that the focus of linkage between performance measurement and strategic manage-
performance measurement on the project more than the organiza- ment within firms.
tional level 共Love and Holt 2000; Kagioglou et al. 2001兲.
Construction projects are typically evaluated in terms of cost,
time, and quality 共Ward et al. 1991; Kagioglou et al. 2001兲. These Implementation of Performance Measurement
three categories of project measures have been described as in- Frameworks
sufficient by Ward et al. 共1991兲, who argued that other factors, The three main performance measurement frameworks that exist
such as the quality of relationships among participants and flex- in the U.K. construction industry are the key performance indica-
ibility, can influence customer satisfaction and thus affect the tors 共KPI兲, Balanced Scorecard, and EFQM Excellence Model.
success/failure of the project. They further explain that what re- Robinson et al. 共2002兲 conducted a survey that showed the utili-
mains in the mind of participants after project completion is not zation of performance measurement frameworks by leading con-
so much financial success or early completion, but memories of struction firms in the U.K. 共top 100 contractors and top 70 con-
harmony, goodwill, and trust, or conversely, arguments, distrust, sultants兲, as shown in Fig. 4. Literature also has cited cases of
and conflict. performance framework implementation, such as that of the Mor-
In addition, productivity has been a dominant issue in project rison Construction Group 共Robertson 1997兲. A discussion of the
management, promising efficient usage of resources and cost sav- implementation of each framework is to follow.
ings and ultimately affecting the bottom line of every effort in the
construction process 共Olomolaiye et al. 1998兲. A review of the Key Performance Indicators
literature on productivity measurement in construction can be As a result of Egan’s 共1998兲 report, Rethinking Construction, the
found in Motwani et al. 共1995兲. Despite the overemphasis on pro- construction best practice program launched the KPI for perfor-
ductivity, it has not reaped its expected results for company per- mance measurement 共CBPP-KPI 2002兲. The indicators are for
formance, thus creating a productivity paradox 共Skinner 1986兲. both project and organizational levels and directly reflect the per-
formance targets developed by Egan 共1998兲. The indicators are
Organizational Performance Measurement shown in Table 1.

Organizational performance measurement in construction has tra-


ditionally relied on efficiency, return on capital, and profitability,
which have been criticized as narrow, reactive, and mostly finan- Table 1. Key Performance Indicators for Construction Firms 共CBPP-
cial. A longer-term and broader focus is needed that considers KPI 2002兲
corporate strategy, business processes, and stakeholder needs Project performance Company performance
共Love and Holt 2000兲. Recently, construction companies have
Construction cost Safety
used a more balanced approach with the monitoring of nonfinan-
Construction time Profitability
cial measures. Robinson et al. 共2002兲 have reported the increased
Predictability—cost Productivity
use of customer aspects, impact on society, and internal stake-
Predictability—time
holders in performance measurement. Moreover, literature has
Defects
cited frameworks to evaluate the organizational performance of
Client satisfaction—product
contractors that include nonfinancial aspects. However, these
Client satisfaction—service
frameworks were concerned with tendering and contractor selec-

46 / JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004

J. Manage. Eng. 2004.20:42-50.


The KPI have received significant criticism. Kagioglou et al.
共2001兲 raised some questionable issues including the KPI being
noncomprehensive and focusing more on project rather than or-
ganizational performance. Additionally, the KPI are designed as a
benchmark for the whole industry, where companies can bench-
mark themselves against national performance and identify areas
for improvement. The KPI do not give insight into the means of
improving performance and therefore have limited use for inter-
nal management decision making. Furthermore, the KPI have
been lesser rated by construction firms in a comparison with Bal-
anced Scorecard and EFQM 共Robinson et al. 2002兲. On a five-
point level scale 共very poor, poor, neutral, good, and very good兲
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

EFQM and Balanced Scorecard were nearly equally rated, with


ratings ranging between neutral and very good; however, KPI and
Fig. 5. Identifying KBP, CSF, and in-house KPI using EFQM Ex-
bespoke models’ ratings ranged from poor to good.
cellence Model 共Beatham et al. 2002兲 © Swets & Zeitlinger.

Balanced Scorecard
One of the first reported applications of Kaplan and Norton’s where TQM originated 共Ahmad and Sein 1997; Stockdale 1997兲.
Balanced Scorecard was by a leading engineering and construc- However, the EFQM model, unlike its TQM parent, is a well-
tion company, Brown & Root/Halliburton; the company’s original defined model and has been reported to be easier for construction
scorecard can be found in Kaplan and Norton 共1993兲. Kagioglou companies to understand and implement 共Watson and Seng 2001兲.
et al. 共2001兲 suggested a conceptual framework for application of Nevertheless, some implementation problems exist and can be
the Balanced Scorecard by construction firms and added two per- summarized as resistance to change, inexperience with the model,
spectives important to the construction industry: project and sup- documentation difficulties, and insufficient time and fund alloca-
plier perspectives. Additionally, the framework rationalizes the tion 共Watson and Seng 2001兲. Additionally, Robinson et al.
relationships between performance measures and goals derived 共2002兲 reported that construction firms considered the EFQM
from strategy to indicate potential areas for improvement, through model less difficult than the Balanced Scorecard in terms of de-
a process-performance measurement relationship matrix. Kagio- termining and monitoring indicators. They regard this as due to
glou et al. 共2001兲 argued that methods used to measure perfor- the presence of enabling factors in the EFQM model, which are
mance in construction projects fall into the three main categories not clear or comprehensive in the Balanced Scorecard.
of the Balanced Scorecard:
1. Financial perspective: for example, cash flow and cost ben-
efit analysis; Linking Strategic Management to Performance
2. Internal business processes: for example, critical path analy- Measurement
sis; and Performance measurement is an important part of the strategic
3. Customer perspective. management process, as shown in Fig. 6. In order to control a
Organizational learning is emerging within the fourth Bal- business strategy, it has to be measured. Therefore, many of the
anced Scorecard perspective of innovation and learning, given by contemporary performance measurement frameworks are used to
Kagioglou et al. 共2001兲, who stated that organizational learning measure strategy deployment. Kaplan and Norton 共1996, 2001a,b兲
can be problematic since participants in construction projects are showed how the Balanced Scorecard should be used as a strategic
only temporarily joined. However, Kululanga et al. 共2001兲 pre- management system. Leonard and McAdam 共2002兲 presented a
sented a framework for organizational learning measurement by grounded model of the strategic application of business excel-
construction contractors that explained definition difficulty and lence models, but reported that managers found difficulties in
used dimensions and supporting factors to measure the degree of attempting to use the model in a strategic manner.
organizational learning. The main aspects of strategic management in construction are
described by Price and Newson 共2003兲 and Price et al. 共2004兲,
European Foundation for Quality Management Excellence based on an industry survey. These aspects and their implications
Model for performance measurement are listed here.
Beatham et al. 共2002兲 reported different uses of the EFQM model • Strategic planning has a low profile in construction and re-
applied to construction. The self-assessment process is used to ceives a low level of attention. In addition, strategic manage-
identify key areas for improvement 共AFI兲 and initiate perfor- ment is not entrenched in construction organizations, but is
mance improvement projects. The RADAR 共results, approach, de- usually performed by top management in a top-bottom ap-
ployment, assessment, and review兲 logic of the EFQM model is proach, with little involvement of the lower echelons of the
used to deliver continuous improvement. Moreover, the model organization, customers, partners, or suppliers 共stakeholders兲.
was used to ensure that all issues related to the business 共hard and Moreover, construction firms tend to focus on operational ef-
soft issues兲 are incorporated in the development of critical success fectiveness 共performing similar activities better than rivals兲 at
factors 共CSF兲 and in-house KPI, as shown in Fig. 5. This was the expense of strategic positioning 共performing activities dif-
done as part of a review of business/project objectives, key busi- ferent from those of rivals or similar activities in different
ness processes 共KBP兲, and sub-KBP. It should be noted that the ways兲 共Edum-Fotwe 1995兲. In this situation, performance
KPIs here are different than the previously discussed KPI of measurement will not likely be used as a strategic deployment
CBPP-KPI 共2002兲. tool.
The implementation of TQM has traditionally been faced with • Firms traditionally pursue a cost leadership 共operational effec-
problems in construction, due to its contrasts with manufacturing, tiveness兲 strategy, mostly by default rather than by design.

JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004 / 47

J. Manage. Eng. 2004.20:42-50.


Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

Fig. 6. The Basic Strategic Management Model. Wheelan and Hunger, Strategic Management and Business Policy, 7/E © 2000, p. 9. Reprinted
by permission of Pearson Education, Inc., Upper Saddle River, N.J.

However, with the increased focus on the customer, a shift to Conclusion and Recommendations
differentiation 共strategic positioning兲 strategies is emerging.
Companies will need to monitor their new strategic efforts and Performance measurement has been the subject of considerable
align them throughout the organization. Therefore, the need research and attention in the last 15 years. The inadequacy of
for strategic measurement systems is expected to grow. traditional financially based performance measurement frame-
It is evident that with the current situation of strategic man- works and the introduction of nonfinancial measures have trig-
agement, performance measurement systems will not likely be gered much of this research, in what has been considered a re-
used to deploy strategy. However, the need exists and is expected search revolution. The contemporary performance measurement
to grow as firms shift toward differentiation strategies. frameworks have been reviewed, including the Balanced Score-
card and quality-based performance excellence models, such as
Gaps in Knowledge and Practice the European Foundation for Quality Management 共EFQM兲
model. However, their simultaneous existence, in addition to
Construction companies have implemented a number of perfor- many other performance improvement methods 共e.g., activity-
mance measurement frameworks, such as KPI, the Balanced based management, benchmarking, and JIT兲, and their differences
Scorecard, and the EFQM Excellence Model. Each looks at per- in nature, prompt two questions: How can they all coexist simul-
formance measurement from a different angle while they either taneously? Is any one better or more correct than the others? The
overlap or complement one another. Therefore, a need exists for a answer is that they are all valid and correct, but look at the mul-
comprehensive or integrated performance measurement frame- tifacets of performance from different angles 共Neely and Adams
work in construction. This gap is similar to that identified in the 2001兲. A research need exists to develop more comprehensive
previous section of this paper. However, the needs or critical suc- performance measurement frameworks that incorporate the rel-
cess factors of construction might differ from those of other in- evant aspects of different performance frameworks, models, and
dustries, and the required performance measurement framework improvement methods. This remains a main gap in knowledge
might be different and needs to be developed for the industry in that should be further addressed by research and supported by
particular. practice.
The various gaps in knowledge and practice identified in the Additional gaps in knowledge have been identified that apply
previous section were for performance measurement frameworks across industries, including construction. They cover the issues of
in general, and also apply to construction firms. Moreover, but how existing performance measurement systems in companies
specific to the construction industry, additional gaps are reviewed. can interact with newly developed systems, the setting of targets
• The applications of the Balanced Scorecard, EFQM, and KPI and standards for performance measures, measures’ aggregation,
are in their early years. Much can be learned from the prob- difficulties in implementing new performance measurement sys-
lems faced in their implementation, and research is still limited tems, dynamism and flexibility of measures, and using perfor-
in this area. mance information to take managerial action.
• Specific measurement issues for performance in construction, The status of performance measurement in the U.K. industry
particularly relating to soft issues, need more research: for and the usage and implementation of performance measurement
example, leadership, people, innovation, learning, partnership, frameworks 共KPI, Balanced Scorecard, and EFQM model兲 in
and technology management. U.K. construction firms has been reviewed. Further gaps in
• The design of measures/indicators has been covered by many knowledge relevant to the construction industry include the
publications, but the design of measures specific and appropri- implementation of contemporary performance measurement
ate to construction has not been well addressed. Additionally, frameworks in construction firms, measuring of specific areas,
the cascading and aggregation of measures vertically between especially soft issues, the design of measures specific to construc-
the organizational and project levels has not been adequately tion, cascading of measures between organizational and project
researched. levels, and the effects of strategic objectives deployment in con-
• Strategic management in the construction industry opens many struction firms on the development of performance measurement
areas of research, particularly the measurement of strategy de- systems.
ployment. This issue should be accounted for when developing Finally, the identified gaps in knowledge are in no way com-
or applying any performance measurement framework. prehensive, and others surely exist. However, this paper attempts

48 / JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004

J. Manage. Eng. 2004.20:42-50.


to highlight the main gaps/weaknesses in knowledge evident in Fairclough, J. 共2002兲. Rethinking construction innovation and research: A
the general business and construction literature so as to suggest review of government R&D policies and practices, Dept. of Trade and
potential areas of future research. Industry, London.
Flapper, S. D. P., Furtuin, L., and Stoop, P. P. M. 共1996兲. ‘‘Towards
consistent performance management systems.’’ Int. J. Operat. Prod-
References uct. Manage., 16共7兲, 27–37.
Garvin, D. A. 共1991兲. ‘‘How the Baldrige award really works.’’ Harvard
Bus. Rev., 69共6兲, 80–93.
Adebanjo, D. 共2001兲. ‘‘TQM and business excellence: Is there really a
conflict?’’ Measuring Bus. Excellence, 5共3兲, 37– 40. Ghalayini, A., Noble, J., and Crowe, T. 共1997兲. ‘‘An integrated dynamic
Ahmad, I. U., and Sein, M. K. 共1997兲. ‘‘Implementing TQM principles in performance measurement system for improving manufacturing com-
construction projects: Difficulties and remedies.’’ Int. Conf. on Lead- petitiveness.’’ Int. J. Operat. Product. Econ., 48, 207–225.
ership and Total Quality Management in Construction and Building, Grady, M. W. 共1991兲. ‘‘Performance measurement, implementing strat-
egy.’’ Manage. Account., Montvale, 72共12兲, 49–53.
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

CI Primier Conference, Singapore, 47–54.


Azhashemi, M. A., and Ho, S. K. M. 共1999兲. ‘‘Achieving service excel- Hasan, H., and Tibbits, H. 共2000兲. ‘‘Strategic management of electronic
lence: A new Japanese approach versus the European framework.’’ commerce: An adaptation of the balanced scorecard.’’ Internet Res.:
Managing Service Quality, 9共1兲, 40– 46. Electron. Netw. Appl. Policy, 10共5兲, 439– 450.
Azzone, G., Masella, C., and Bertele, U. 共1991兲. ‘‘Design of performance Kagioglou, M., Cooper, R., and Aouad, G. 共1999兲. ‘‘Re-engineering the
measures for time-based companies.’’ Int. J. Operat. Product. Man- UK construction industry: The process protocol.’’ 2nd Int. Conf. on
age., 11共3兲, 77– 85. Construction Process Re-Engineering, University of New South
Banwell, H. 共1964兲. The placing and management of contracts for build- Wales, Sydney, Australia.
ing and civil engineering work—Report of the committee, HMSO, Kagioglou, M., Cooper, R., and Aouad, G. 共2001兲. ‘‘Performance man-
London. agement in construction: A conceptual framework.’’ Constr. Manage.
Barsky, N. P., and Bremser, W. G. 共1999兲. ‘‘Performance measurement: Econom., 19共1兲, 85–95.
Budgeting and strategic implementation in the multinational enter- Kaplan, R. S. 共1984兲. ‘‘The evolution of management accounting.’’ Ac-
prise.’’ Manage. Finance, 25共2兲, 3–15. count. Rev., 59共3兲, 390– 418.
Beatham, S. M., Anumba, C. J., and Thorpe, A. 共2002兲. ‘‘Utilizing the Kaplan, R. S., and Norton, D. P. 共1992兲. ‘‘The balanced scorecard—
EFQM excellence model to drive business improvement.’’ Advances Measures that drive performance.’’ Harvard Bus. Rev., 70共1兲, 71–79.
in concurrent engineering, R. Gancalves, R. Roy, and A. Steiger- Kaplan, R. S., and Norton, D. P. 共1993兲. ‘‘Putting the balanced scorecard
Garcao, eds., Balkema, Rotterdam, The Netherlands, 413– 422. to work.’’ Harvard Bus. Rev., 71共5兲, 134 –147.
Bititci, U. S., Carrie, A. S., and McDevitt, L. 共1997兲. ‘‘Integrated perfor- Kaplan, R. S., and Norton, D. P. 共1996兲. ‘‘Using the balanced scorecard as
mance measurement systems: A development guide.’’ Int. J. Operat. a strategic management system.’’ Harvard Bus. Rev., 74共1兲, 75– 85.
Product. Manage., 17共5兲, 522–534. Kaplan, R. S., and Norton, D. P. 共2001a兲. ‘‘Transforming the balanced
Bititci, U. S., Suwignjo, P., and Carrie, A. S. 共2001兲. ‘‘Strategy manage- scorecard from performance measurement to strategic management:
ment through quantitative modeling of performance measurement sys- Part I.’’ Account. Horizons, 15共1兲, 87–104.
tems.’’ Int. J. Production Econ., 69共1兲, 15–22. Kaplan, R. S., and Norton, D. P. 共2001b兲. ‘‘Transforming the balanced
Bititci, U. S., and Turner, T. 共2000兲. ‘‘Dynamics of performance measure- scorecard from performance measurement to strategic management:
ment systems.’’ Int. J. Operat. Product. Manage., 20共6兲, 692–704. Part II.’’ Account. Horizons, 15共2兲, 147–160.
Bourne, M., Mills, J., Wilcox, M., Neely, A., and Platts, K. 共2000兲. ‘‘De- Keegan, D. P., Eiler, R. G., and Jones, C. R. 共1989兲. ‘‘Are your perfor-
signing, implementing and updating performance measurement sys- mance measure obsolete?’’ Manage. Account., Montvale, 70共2兲, 45–
tems.’’ Int. J. Operat. Product. Manage., 20共7兲, 754 –771. 50.
Brignall, T. J., Fitzgerald, L., Johnston, R., and Silvestro, R. 共1991兲. Kululanga, G. K., Edum-Fotwe, F. T., and McCaffer, R. 共2001兲. ‘‘Mea-
‘‘Performance measurement in service businesses.’’ Manag. Account., suring construction contractors’ organizational learning.’’ Build. Res.
London, 69共10兲, 34 –36. Inf., 29共1兲, 21–29.
Chandler, A. D. 共1977兲. The visible hand: The managerial revolution in Latham, M. 共1994兲. Constructing the team, HMSO, London.
American business, Harvard University Press, Cambridge, Mass. Lee, A., Cooper, R., and Aouad, G. 共2000兲. ‘‘A methodology for design-
Construction Best Practice Program—Key Performance Indicators ing performance measures for the UK construction industry.’’ Bizarre
共CBPP-KPI兲. 共2002兲. 具http://www.cbpp.org.uk/cbpplthemes/bm/ Fruit: Postgraduate Research Conf. on the Built and Human Environ-
KPIs/典. ment, University of Salford, Salford, U.K.
Cross, K. F., and Lynch, R. L. 共1988 –1989兲. ‘‘The SMART way to define Leonard, D., and McAdam, R. 共2002兲. ‘‘The role of the business excel-
and sustain success.’’ Nat. Product. Rev., 9共1兲, 23–33. lence model in operational and strategic decision making.’’ Manage.
Department of Trade and Industry 共DTI兲. 共2002a兲. Industries and sectors: Decision, 40共1兲, 17–25.
Construction, building and property services overview. 具http:// Letza, S. R. 共1996兲. ‘‘The design and implementation of the balanced
www.dti.gov.uk/sectorsគbuilding.html典, London. scorecard.’’ Bus. Process Re-engineering Manage. J., 2共3兲, 54 –76.
Department of Trade and Industry 共DTI兲. 共2002b兲. Sustainable construc- Love, P. E. D., and Holt, G. D. 共2000兲. ‘‘Construction business perfor-
tion, 具http://www.dti.gov.uk/construction/sustain/典, London 共Sept. mance measurement: The SPM alternative.’’ Bus. Process Manage.,
2002兲. 6共5兲, 408 – 416.
Dixon, J. R., Nanni, A. J., and Vollmann, T. E. 共1990兲. The new perfor- Macleod, A., and Baxter, L. 共2001兲. ‘‘The contribution of business excel-
mance challenge: Measuring operations for world class competition, lence models in restoring failed improvement initiatives.’’ Eur. Man-
Dow Jones-Irwin, Homewood, Ill. age. J., 19共4兲, 392– 403.
Eccles, R. 共1991兲. ‘‘The performance measurement manifesto.’’ Harvard Marr, B. 共2001兲. ‘‘Scored for life.’’ Finan. Manage., 79共4兲, 30.
Bus. Rev., 69共1兲, 131–137. Maskell, B. 共1989兲. ‘‘Performance measurement of world class manufac-
Eccles, R. G., and Pyburn, P. J. 共1992兲. ‘‘Creating a comprehensive sys- turing.’’ Manage. Account., 67共5兲, 32–33; 67共6兲, 32–33; 67共7兲, 48 –
tem to measure performance.’’ Manage. Account., Montvale, 74共4兲, 50; 67共8兲, 64 – 66.
41– 44. McJorrow, S., and Cook, T. 共2000兲. ‘‘Balanced scorecard: The first gen-
Edum-Fotwe, F. 共1995兲. ‘‘A framework for improving the strategic man- eration.’’ Manage. Account.: Chartered Accountants Journal of New
agement of construction contractors.’’ PhD thesis, Loughborough Zealand, 70共3兲, 4 – 8.
Univ., Loughborough, U.K. Medori, D. 共1998兲. ‘‘The development and implementation of an inte-
Egan, J. 共1998兲. Rethinking construction, Dept. of the Environment, grated performance measurement framework.’’ Performance
Transport and the Regions, London. measurement—Theory and practice, A. D. Neely and D. B. Waggoner,

JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004 / 49

J. Manage. Eng. 2004.20:42-50.


eds., vol. 2, Cambridge University Press, Cambridge, U.K. egies in construction organizations.’’ Loughborough Univ., Loughbor-
Mendoza, C., and Zrihen, R. 共2001兲. ‘‘Measuring up.’’ Finan. Manage., ough, U.K.
79共4兲, 26 –29. Schneiderman, A. 共1999兲. ‘‘Why balanced scorecards fail.’’ J. Strategic
Motwani, J., Kumar, A., and Novakoski, M. 共1995兲. ‘‘Measuring con- Perform. Measure., Special Edition, January, 6 –11.
struction productivity: A practical approach.’’ Work Study, 44共8兲, 18 – Schrank, R. 共1998兲. ‘‘Goal oriented performance evaluation 共GOPE兲: A
20. model-based approach.’’ Performance measurement—Theory and
Neely, A. 共1999兲. ‘‘The performance revolution: Why now and what practice, A. D. Neely and D. B. Waggoner, eds., vol. 2, Cambridge
next?’’ Int. J. Operat. Product. Manage., 19共2兲, 205–228. University Press, Cambridge, U.K.
Neely, A. 共2002兲. ‘‘Spotlight on Andy Neely.’’ Spotlight interview, Emer- Sinclair, D., and Zairi, M. 共1995a兲. ‘‘Effective process management
ald Now, 具http://www.emeraldinsight.com/now/spotlight.htm典. 共Apr. through performance measurement. Part I: Applications of total
2002兲. quality-based performance measurement.’’ Bus. Process Re-
Neely, A., and Adams, C. 共2001兲. ‘‘The performance prism perspective.’’
engineering Manage. J., 1共1兲, 75– 88.
Journal of Cost Management, 15共1兲, 7–15.
Sinclair, D., and Zairi, M. 共1995b兲. ‘‘Effective process management
Downloaded from ascelibrary.org by University of California, San Diego on 06/23/13. Copyright ASCE. For personal use only; all rights reserved.

Neely, A., and Bourne, M. 共2000兲. ‘‘Why measurement initiatives fail.’’


through performance measurement. Part II: Benchmarking total
Measuring Bus. Excellence, 4共4兲, 3– 6.
quality-based performance measurement for best practice.’’ Bus. Pro-
Neely, A., et al. 共1997兲. ‘‘Designing performance measures: A structured
approach.’’ Int. J. Operat. Product. Manage., 17共11兲, 1131–1152. cess Re-engineering Manage. J., 1共2兲, 58 –72.
Neely, A., et al. 共2000兲. ‘‘Performance measurement system design: De- Sinclair, D., and Zairi, M. 共1995c兲. ‘‘Effective process management
veloping and testing a process-based approach.’’ Int. J. Operat. Prod- through performance measurement. Part III: An integrated model of
uct. Manage., 20共10兲, 1119–1145. total quality-based performance measurement.’’ Bus. Process Re-
Neely, A., Gregory, M., and Platts, K. 共1995兲. ‘‘Performance measure- engineering Manage. J., 1共3兲, 50– 65.
ment system design: A literature review and research agenda.’’ Int. J. Sinclair, D., and Zairi, M. 共2000兲. ‘‘Performance measurement: A critical
Operat. Product. Manage., 15共4兲, 80–116. analysis of the literature with respect to total quality management.’’
National Institute of Standards and Technology 共NIST兲. 共2002兲. Baldrige Int. J. Manage. Rev., 2共2兲, 145–168.
National Quality Program, 具http://www.quality.nist.gov/典, Gaithers- Skinner, W. 共1986兲. ‘‘The productivity paradox.’’ Harvard Bus. Rev.,
burg, Md. 64共4兲, 55–59.
Niven, P. R. 共2001兲. ‘‘Examining the endurance of the balanced score- Smith, M. 共2001兲. ‘‘Getting construction back on track.’’ Beyond the bot-
card.’’ J. Cost Manage., 15共3兲, 18 –24. tom line, The Industrial Pioneer, Birmingham, U.K., and For a
Norreklit, H. 共2000兲. ‘‘The balance on the balanced scorecard—A critical Change Magazine, London.
analysis of some of its assumptions.’’ Manage. Account. Res., 11共1兲, Stockdale, D. J. 共1997兲. ‘‘Can total quality management ‘add value’ in
65– 88. construction?’’ Construction papers, P. Harlow, ed., Chartered Insti-
Oliver, L., and Palmer, E. 共1998兲. ‘‘An integrated model for infrastruc- tute of Building, Ascot, U.K.
tural implementation of performance measurement.’’ Performance Suwignjo, P., Bitici, U. S., and Carrie, A. S. 共2000兲. ‘‘Quantitative models
measurement—Theory and practice, A. D. Neely and D. B. Waggoner, for performance measurement system.’’ Int. J. Production Econ., 64,
eds., vol. 2, Cambridge Univeristy Press, Cambridge, U.K. 231–241.
Olomolaiye, P. O., Jayawardane, A. K. W., and Harris, F. C. 共1998兲. The construction best practice program—Key performance indicators
Construction management productivity, Chartered Institute of Build- 共CBPP-KPI兲. 共2002兲. 具http://www.cbpp.org.uk/cbpp/themes/bm/
ing, Ascot, and Longman, London. KPIs/典.
Palmer, E., and Parker, D. 共2001兲. ‘‘Understanding performance measure-
Vitale, M. R., and Mavrinac, S. C. 共1994兲. ‘‘New process financial score-
ment systems using physical science uncertainty principles.’’ Int. J.
card: A strategic performance measurement system.’’ Plan. Rev.,
Operat. Product. Manage., 21共7兲, 981–999.
22共4兲, 12–16.
Price, A. D. F., and Newson, E. 共2003兲. ‘‘Strategic management: Consid-
Ward, C. S., Curtis, B., and Chapman, C. B. 共1991兲. ‘‘Objectives and
eration of paradoxes, processes and associated concepts as applied to
construction.’’ J. Manage. Eng., 19共4兲, 183–192. performance in construction projects.’’ Constr. Manage. Econom., 9,
Price, A. D. F., Newson, E., and Ganiev, B. V. 共2004兲. ‘‘Current strategic 343–354.
management practice within UK construction organizations.’’ Strate- Watson, P., and Seng, L. T. 共2001兲. ‘‘Implementing the European Foun-
gic Change, in press. dation for Quality Management Model in construction.’’ Construction
Przasnyski, Z. H., and Lawrence, S. T. 共1999兲. ‘‘Stock market reaction to Information Quarterly, Construction paper 130, Chartered Institute of
Malcolm Baldridge National Quality Award announcements: Does Building, Ascot, U.K.
quality pay?’’ Total Quality Manage., 10共3兲, 391– 400. Wegelius-Lehtonen, T. 共2001兲. ‘‘Performance measurement in construc-
Robertson, H. W. 共1997兲. ‘‘A construction company’s approach to busi- tion logistics.’’ Int. J. Production Econ., 69共1兲, 107–116.
ness performance measurement.’’ Total Quality Manage., 8共2–3兲, Wheelan, T. L., and Hunger, J. D. 共2000兲. Strategic management and
254 –255. business policy, Prentice-Hall, Upper Saddle River, N.J.
Robinson, H. S., Carrillo, P. M., Anumba, C. J., and Al-Ghassani, A. M. Zairi, M., Letza, S. R., and Oakland, J. S. 共1994兲. ‘‘Does TQM impact on
共2002兲. ‘‘Business performance measurement and improvement strat- bottom-line results?’’ TQM Mag., 6共1兲, 38 – 43.

50 / JOURNAL OF MANAGEMENT IN ENGINEERING © ASCE / APRIL 2004

J. Manage. Eng. 2004.20:42-50.

You might also like