Business performance measurement practices in construction engineering organisations

Purpose – The need for performance improvement has led to the implementation of industry‐specific key performance indicators (KPIs) and greater awareness of the benefits of measurement in construction engineering organisations. This paper aims to present and discuss the findings of a survey based on the practical experiences of leading UK construction engineering organisations. Design/methodology/approach – The paper is based on a questionnaire survey, the findings of which are discussed and analysed. The survey focused on establishing current industry practice and forms part of a larger study, which involved detailed case studies and led to the development of an innovative framework for links knowledge management initiatives with business performance measurement. Findings – The survey shows that a significant proportion of organisations are now using a range of financial and non‐financial measures to assess business performance, and a growing number are adopting the excellence model and/or the balanced scorecard to facilitate a structured approach to implementing continuous improvement strategies. The paper identifies the barriers to the use of performance measurement models and discusses the differences between the practices in smaller and larger construction engineering firms. Originality/value – The paper concludes with some practical considerations for implementing performance measurement models, which will be of value to business improvement managers and other senior managers in construction and other project‐based industries.