Many companies are embracing the idea of measuring their performances using appropriate measuring tools such as Key Performance Indicators, Balanced Scorecard, and Key Business Areas. Performance measurements involve companies propositions, plans, and presentation of their operational processes (Barbuio, 2009). Performance measurement entails leaders and outcomes of various major business operations that top management use to make appropriate choices of management strategies. The CURT members and other organizations apply these measuring tools to improve both their financial and non financial performances (CURT, 2005). The best performance measurement should embrace distinct features, which include measuring performance based on both fiscal and non fiscal perspective, giving support to collaborative propositions, relevancy, consistency, accuracy, and time bound (Barbuio, 2009).
The CURT members and other organizations use Balanced Scorecard as a measuring tool to measure their performances (CURT, 2005). Balanced Scorecard embraces four proportionate aspects, such as consumers, fiscal issues, inward organizational mechanisms, expansions and learning, hence covering a wide range of organizations performances (Martin, 2009). The Key Performance Indicators present previous results, whether satisfactory or otherwise, realizes the quality of organizations mechanisms, decides on the business units that require expansions and growth, plus the needed resources, among others (Barbuio, 2009). The CURT members better performance attributes to the application of KPIs to measure their areas of weaknesses, hence improvements in their overall performance (CURT, 2005).
1.1 Thesis statement
The concept of measuring companies performances using the appropriate measuring tools, such as Key Performance Indicators, Key Business Areas, and Balanced Scorecard is an issue of persistent debate especially at the Board level of different organizations. Numerous companies face challenges at the Board levels on the best measurement tools to incorporate in gauging their performance. Related literature indicates that organizations that perform better such as the CURT members have appropriate tools for measuring their performances, while the ones that are lagging behind do not involve appropriate measuring tools such as KPIs, KBAs, and Balanced Scorecard. This study will aim at extracting information on the proper design of structures that can monitor organizations performances, which will assist in closing the existing gap of inappropriate approaches of measuring companies performances.
1.2 Scope of the Study
The study will cover a wide range of key performance indicators of CURT member companies and other organizations. The study will examine how measurement tools are effective for CURT member companies financial and non financial performances. The study will identify a case study company and closely examine their design of measurement tools and their effectiveness to the financial and non financial performance. The study will also examine various performance measurement approaches for CURT member companies.
1.3 Significance of the study
This study has much significance to leading authorities, companies, and organizations. The results will assist leading authorities to realize the designs of key performance indicators and their relevance to the companies operations. The study will assist organizations to formulate better balance scorecard that can improve both their financial and non financial performances. The study will further analyze the framework that depicts the eligibility of what can effectively measure CURT member companies performance, therefore assisting leading authorities to improve their overall performance.
1.4 Objectives
The main objective of this study is to examine the effectiveness of measurement tools that CURT member companies use to gauge their performance. For proper achievement of the main objective, further subdivisions are as follows
To understand the design reasons for the performance measurement approach of the CURT member companies
To evaluate the performance measurement approach of CURT member companies
To identify potential improvements in performance measurement approaches of CURT member companies
To find out performance measurements that suit CURT member companies and other organizations
1.5 Hypotheses
CURT member companies use key performance indicators to gauge their both financial and non financial performances.
Key performance indicators improve CURT member companies financial and non financial performance
Companies that have apply key performance indicators, such as KPIs and Balanced Scorecard perform better than their competitors.
1.6 Research questions
How do CURT member companies measure their output
What are the major features of an effective performance measurement system by CURT member companies
How does the examination of design reasons for performance measurement approach in CURT member companies assist the interested leading authorities
What are the performance measurement approaches of CURT member companies
Chapter 2.0 Related literatures
Related literature show that Construction User Roundtable (CURT) avails key performance indicators of various companies in United States of America, which include TESCO, Abbott Laboratories, Cisco systems, Walt Disney Imagineering, The Dow Chemical Company, Eastman Kodak Company, Citigroup, FMC Corporation, IBM, Intel Corporation, Salt River Projects, and Southern Companies, among others (CURT, 2005). Related study shows that performance managements improve the level of financial performance in companies that widely implores their use (Businessweek Research Services, 2008). Further related study notes that one major strategy is significant in measuring the companys performance. Martin (2009) notes that the company should consider their customers, finances, companys inner procedures and expansion opportunities in order to design a proper measurement tools for both financial and non financial performance.
CURT (2005) shows that performance measures of construction companies are of two categories, which include micro-measurement and macro-measurement. Related study notes that micro-measurement covers the companys internal features, while macro-measurement analyses and compares companys performance in a greater perspective. Related literatures indicate that performance measurement of a company involves fiscal and non fiscal concepts coupled with business results and their initiators (Lonnqvist, 2000). In Smith et al (2007) view, companies can measure both their financial and non financial performance through the business models applied and strategies incorporated. Related literatures indicate that companies develop key performance indicators depending on variables and expenses, which analyze their strengths, weaknesses, threats and opportunities Kromer (2009).
CURT (2005) notes that companies use micro-measurements to measure financial performance at regional level, which are then integrated to measure performance at greater levels. For instance, the Recordable Incident Rate for local company can be used in the comparison of other companies performance globally. Related research by The Businessweek Research Services (2007) indicates that performance management assists companies to organize and communicate their business strategies along different sections and all over the company. For example, Air Navigation Service Providers (ANSP) measures the performance of their Air Traffic Management at local (ATM), cross border, and international level, which assist in expenses management and safety surety. Performance indicators at local level show the services of the service quality, among other concerns of ANSP, and comparison on the performance is at the regional level (ICAO, 2005).
Related literature notes that construction measures entail outcome and procedural measures. For instance safety outcome measures encompass initial aid, physicians case, recordable incident, among others, while procedural safety involve behavioral survey, procedure auditing, and predictions of accidents, among other issues (CURT, 2005). According to Maisel (2001), businesses apply profits and operational returns to measure their financial performances and satisfaction of consumer preferences to depict non financial performances, with great value offered to financial performance. Maisel (2001) further notes that reduced marginal returns depict a companys retrogressive performance, therefore a need to redesign appropriate strategies to improve the performance. Related study shows that most companies use consumer services to measure non fiscal concerns.
Related study by CURT (2005) shows their members such as DTE Energy, Cisco Systems, Dow Chemical Company, Johnson Johnson, IBM, and General Motors, among others embrace the use construction measurements and persistent growth to capture the management concerns and companys gratifications. Related literatures indicate that fiscal issues are of high significance in evaluating the performance of a company as compared to developing models to help the top management (Maisel, 2001). Further study shows that many people value Balanced Scorecard the best way of realizing performance measurements in a company (Maisel, 2001).
The findings show that the highest average range stands at 3.80 with the lowest at 2.44. The rating was on a 5.00 scale, with 5 widely applied, 4 often applied, 3 applied, 2 seldom applied, and 1 not applied at all.
Related literatures indicate that projects head is responsible for ensuring that objectives of the project are in line with both consumer and collaborative aims. Project head is responsible for formulating and implementing processes and measures to trace, and bring forth the construction outcomes (CURT, 2005). Related literature shows that focusing on one key performance indicator during measurements of companys performance is of great significance and produces best results in comparison to collective use of KPIs. For example, picking of companys finance as single KPI will assist the company to monitor escalating or decreasing of overall sales, increasing or decreasing marginal returns, hence making appropriate judgments on the best way forward that will improve the companys overall performance (Martin, 2009).
Related literatures suggests that project head should work hand in hand with construction heads and project engineers to design the best measurements for the companys performance. The project head just as the name suggests will be in charge of the project and coordinates other group members by making sure that collaborative and consumer aims go together will companys goals (CURT, 2005). Further study reveals that project head organize project teams to identify companys key management areas such as strengths, weaknesses, opportunities, and threats. The project head evaluate performance measures that trace continuous performance of the project, and ensure that the project objectives are on the best track. The project head will finally take the opportunity to communicate the project outcome to both corporate group and consumers CURT (2005). Related literature shows that the best example of performance measurement systems is United Kingdom Audit Commissions Comprehensive Performance Assessment (CPA) that is responsible for over 400 local municipalities and councils in both Wales and England that report to CPA every year (Carlton, 2003).
Related literature shows that the responsibilities of project planner at the project level entail combining project control models with project measures procedures, and making a summary of construction measures and take to project head (CURT, 2005). Related study indicate that performance measures can be follow three processes, which include , model led, needs led and audit led. The needs led approach for instance identifies the consumer, business, and partners requirements that are combined to develop performance measures (Bourne Neely, 2003). Literature reveals that model approaches incorporates model theories of a business to formulate the performance measures, while the audit led approach involves auditing the prevailing performance measures. Literature indicates that audit led approach encompasses the collection of data concerning the existing performance measures, which are then put into comparison with the current performance measures with an aim of making appropriate adjustments (Bourne Neely, 2003).
Literature shows that the responsibility of the construction manager at the project level includes but not limited to looking for project opportunities and design improvement measures, implementation of constructions main aims, gathering and analysis of construction measurement information, and reporting the measures status of improvements to the project head (CURT, 2005). Related literature indicate that the incorporation of performance management at the L.B Foster, a United States manufacturing company based at Pittsburg for instance, assisted the company to achieve approximately 50 improvement on revenue, increased prices of stock by over 250, and increased the consumer preference satisfaction (Businessweek, 2008). Literature reveals that the Balanced Scorecard for small and medium enterprises has a close relationship between key performance indicators and the financial performances, addresses the hurdles to effective implementations of performance measures, combines the organizations plan with operations in the business, Balanced Scorecard rely on the cause and effect relationships, hence providing the best overview of a business unit (Taticchi, et al, 2008).
Related literature shows that the summary of project reports at the business environment, cross border, corporate level, and at the site is the responsibility of corporate level personnel. Further studies reveal that construction measures responsibilities at the corporate level does the analysis of data collected, benchmarking both outside and inside the organization, checks on the organizations strengths, weaknesses, opportunities, and threats, establishments of practical processes of result improvements, and the persistent elevation of corporate standards, duty procedures, and implementations of the performance measures (CURT, 2005). Literature indicates that the L.B Foster Company initially had inappropriate performance management mechanisms that were not connected and aligned to track their performances (Businessweek, 2008). Related literature reveal that Holy Cross Health System (HCHS), a chain of health providers in U.S. incorporate cost information system (CIS) to ensure that their operation were under control, which included reducing operational expenses and reformulation of performance measures. HCHS used the cost information system to combine overall ledgers expenditures, orders for utilized materials, and work force expenses. More literature reveals that the top management identified the production guidelines to countercheck the costs on work force, these expenses assist in the decision support system (DSS) to analyze numerous operation of the hospital network (Kohli, 2004).
Related literature indicate that the aim of this sample Balanced Scorecard Aspect and performance measurements id to create a state of equilibrium between measurements in association with every aspect, focusing on one proposition. Further literature reveals that such performance measurements should back up one another to ensure appropriate achievement of the required objectives. Performance measurements in the above table entail drivers and outcomes to enable easy analysis of an organizations performance (Martin, 2009). Related study reports that timing play an integral role at the project level, therefore a need to make appropriate project planning (CURT, 2005). Appropriate project planning will entail project construction measures at the initial stages, possibly after proper definition of project aims and project coverage. The implementation of construction measures operational procedures are put on action as the project construction progresses (CURT, 2005).
Related literature declares that constituted construction measures duty procedures assists in the collection of appropriate data that will be incorporated to analyze the performance of project. Further literature explains that constructive construction measures uncovers projects strength, weakness, opportunity, and threat both internally and externally, building of progressive concepts, and putting into action the directed construction work plans (CURT, 2005). Literature uncovers the significance of incorporating culture in line with realities, propositions, and measurements in the success of performance management. Related study reports that contrary to what organization might believe on that performance management minimize operational costs, performance management mainly involve putting priorities on the best action plans in organizations (Businessweek, 2008). Literature evidences that the performance management system structure checks the performance of the business in line with performance measurement system at the same time. This phenomenon operates along the major features of performance measurement systems formulation procedures in conjunction with subsequent performance measurements (Najmi, 2005).
Related literature reveals that timing at corporate level involves summarizing, aggregating, analyzing timely reports, preferably every month. There is initiation of progressive concepts and implementation of work processes on a persistent basis guided by the project input expenses, resources available, and profitability (CURT, 2005). Relevant studies further reports that CURT member companies such as Caterpillar Inc., Toyota Motor Mfg. North America, E.I. Dupont De Nemours Company, Exelon Corporation, and FMC Corporation, among others, incorporate quality improvement cycles to spearhead development in projects procedures and outcomes at the corporate and project stages (CURT, 2005). Related literature explains that Balanced Scorecard differs from the habitual performance measurement concepts because of the four coverage concepts, such as consumer aspects, inward organizational progressions, and fiscal concept. The Balanced Scorecard realizes whether the fiscal yardstick are outcome manifestations, hence the upshot of other remaining leading manifestations (Kagioglou, et al, 2001).
Related literature shows that CURT member companies such as Caterpillar Inc., FMC Corporation, and Exelon Corporation, among others apply a habitual cycle known as Plan-D0-Check-Account (PDCA) to countercheck their progress in construction outcomes (CURT, 2005). Related study indicates that BNSF Railway in Fort Worth, Texas incorporated a culture that encourages every employee to be accountable, thus an effective Key Performance Indicator in their overall performances (Businessweek, 2008). Further related literature declares that different organization may have different key performance indicators depending on the organizations vision and mission statement. Related literature offers the examples below as some of the KPIs that organization can use to measure their performance or not, and include but not limited to cash flows, direct costs, marginal returns and expenses, gains per labor force, and gains per consumer, among others (Morrison, 2009). Related study uncovers the main aspects of performance measures in organizations, which include being understandable, reliable, available, functional, valid, and responsible, among other features that ensures effective measurement and improvement of organizations performance (Lichiello, 2000).
Source Construction Measures Key Performance Indicators (CURT, 2005, p.7.)
This overall progressive cycle is persistently repeated to propel progressions in construction work mechanisms, and subsequent construction outcomes. Related literature reveals that CURT members designed standard project mechanisms in two sections, which include proprietor developments and searching and reapplication (CURT, 2005). Related literature shows that the CURT members would direct human resource and a summary of corporate experiences to come up with recommended project mechanisms (CURT, 2005). Literature reveals that CURT members integrate proprietary developments with searching and reapplying to achieve the required project mechanisms (CURT, 2005). Related literatures uncover some roles of KPIs in the broadcasting industry as reporting previous results, either positive or negative, selecting areas that require pull ups and the needed support, establishing the business mechanisms qualities, and letting partners to contribute and criticize the performance of broadcasting unit (Barbuio, 2009).
Related study indicates that CURT members had to formulate correlating concepts of construction measures that could assist in tracing project growth and making predictions on the projected results of the project mechanisms for the construction procedure (CURT, 2005). Further literature declares that such performance measures have the aims of supporting construction objectives, vision, and mission statement at all stages, such as cross border, sites, project, and corporate stage. Literature reveals that every measure comes with a way of realizing short run outcomes and future projections. Literature uncovers the uses of this measurement equipment, which checks the overview of management concerns and the comparison of real outcomes with projected outcomes, hence streamlining the performance of an organization (CURT, 2005). Related literature shows that many organizations fail to effectively measure their performance because of collection of data that are unnecessary to the real performance measurement mechanism. Literature further evidences that most organizations lack proper aims and propositions to assist in prioritizing the progressive concerns. In addition to such barriers effective implementation of performance measurement policies is the lack of mechanisms to carry out research on the main causes of poor performance of organizations (Costa, 2004).
Related literature reveals that CURT members design measures in sensitive concerns of construction development, which include price, program, variance execution, quality, safety, reliability, productivity, and consumer satisfaction, among others (CURT, 2005). Literature indicates that the price execution policy traces short term expenditure and the guesses the projected expense results, while program execution policy traces progressions in constructions, and guesses the projected program results. Relevant literature explains that the variance execution policy traces construction variance, and follows prices, quality concerns, and program (CURT, 2005). Related literature indicates that the development of Balanced Scorecard was mainly to eradicate the habitual tools for measuring performance of organizations. Literature further shows that Balanced Scorecard proved to be very effective in measuring organizations performance because of the wide coverage, such as fiscal aspects, consumer aspects, inward operational aspects, innovative aspects, among others (Olsen, 2008).
Related literature reports that the safety execution policy traces and put safety occurrences into various segments. Such safety measures involve accidents, doctors incidents, recordable cases, first aid incidents, among others. Related literature reveals that safety execution policy will guess the future and continuous measures, which include but not limited to behavioral observations, process auditing, and fatality projection concepts (CURT, 2005). Related studies reveal that Energizer Holdings Inc., based at St. Louis incorporated collaborative culture development in line with data choices, which assisted the company to realize positive impact on their business operations (Businessweek, 2008). Related literature announces that using Balanced Scorecard eradicates ambiguity in organization through showing of quantifiable signs, achieves equilibrium on the current, moderate, and long range execution goals by application of various performance measurements, and avails proposition communication arena interconnecting the human resource from the highest hierarchy to the lowest in an organization (Morisawa, 2001).
Related literature explains that quality execution policy controls and evaluates the quality of construction commodities, hence forecasts future quality impediments. Real quality concerns are among others, quality expenses, expenses of redoing the projects, non compliance concerns, and quality checks (CURT, 2005). Literature indicates that ICO Holland called the person in charge of the union to get involved proposition planning mechanisms to propel better performance not to mention Key performance Indicators. Further related literature reveals that this invitation was to involve all the human resource in formulating KPIs, hence improving the overall performance of the company (Businessweek, 2008). Related literature shows that performance measurement policy assists in planning and achieving organizations goals, decide on the significant organizations sustainable leader, counterchecks human resources performance and organization achievement measures, use the collected data to trace outcomes in the long run, and checks the organizations threats and opportunities plus their relevancy to performance measures (Mercer LLC, 2007).
Related literature reports that organizations at times apply the performance factor policy in measuring the workforce productivity, choosing production expansion leverages, forecasting the influence of the expense on project and programs. Further studies shows that organizations use performance factor policy mostly when there is projected uncertainty due to less production against the expectations (CURT, 2005). Related literature reveals that Premier Bankcard Inc, which bases in Sioux Falls, S.D, and one of the outstanding credit card organization in U.S. considered the Return on Investment (ROI) by reducing the number of mails sent to customers. For example, cutting down the number of letters sent to their customers that do not receive reaction by slightly over five per cent improved the companys Return on Investment (Businessweek, 2008). Related literature reports that performance management cycle encompasses planning, implementing, and evaluating processes, which assist those who are in charge with relevant data to make appropriate choices during companys executions, hence realizing better outcomes (McDavid, 2005).
Related literature indicates that CURT members in a bid to realize their consumer satisfaction, embarks on measuring the performance of their developed commodities. Further literature shows that such measures plays integral role on the improved fiscal performance, which include capacity, speed, reliability, efficiency, expense on maintaining equipment, and operational expenses (CURT, 2005). Related literature uncovers the concept of data viewing in organization, which continuously brick conflicting issues time and again. Related literature indicates that different data for different workforce is the best way forward, hence encouraging labor to forge the appropriate way. For example, Procter Gamble, the Cincinnati based company commenced the corporate reflective system that will march companys operations and the workforce skills for more than 30,000 global users (Businessweek, 2008). Related literature indicates that performance measurement mechanism does not only involve data gathering and evaluation in line with the organizations aims and objectives but should cover the whole execution mechanism directed to the improvement of delivery of public health service for this matter. Related literature further breaks the mechanisms into making a proper plan, executing, making reports, and results (Delcarme, 2004).
Related literature shows that CURT members most of the time trace their consumers satisfactions by the application of consumer results survey in line with consumer preferences (CURT, 2005). Related literature reveals that Skanska USA Building, a Parsippany, N.J based company avails data to their top management and employees that led to their workforce making choices that continuously impacts on the companys fiscal developments (Businessweek, 2008). Related literature shows that proper designing of performance measurement mechanism entails collecting the consumer perspectives, and various business partners to incorporate into the business aims and goals. Further related literature recognize three stages of designing performance measurement mechanism, which include alignment of unsubstantiated information, editing the unsubstantiated information, and finally coming up with appropriate performance measurement mechanism (Jamaludin, et al, 2007).
Related literature notes that there is implementation and deployment of recommended project procedures and collaborative measurement mechanisms by the CURT members (CURT, 2005). Literature shows that matching performance measures and project procedures should be a project group task, therefore the head of the project is entitled to mobilizing and recruiting in the company, explaining the aims, vision, and mission of the project, couching and enlightening human resource in the company, and putting the recommended system in the company (CURT, 2005). Related literature reports that Corporate Express, which distributes office services and products in Broomfield, Colo, increased their business intelligence equipment from below 1000 to approximately 4000 workforce. Further literature reveals that this phenomenon assisted Corporate Express to develop their KPI by offering every section the required data, integrating collaborative structure to ease accessibility of data, and concentrate on utility, which labor should realize their significance due to the application of performance management and business intelligence (Businessweek, 2008). Related literature states that Balanced Scorecards utility reflects in areas that include reason of propositioning performance results, connecting performance and proposition, and to relay various aspects in an organization (Kueng Krahn, 1999).
According to related study, the CURT members identify appropriate human resource for the project activities and matching performance measures who take the responsibility of the project development, and there is need for acquaintance with the aims, vision and mission of the project to ensure a success (CURT, 2005). Related literature shows that BNSF Railway incorporated automatic reporting tool that counter checks approximately 50 measures of business operation. In addition, the measures assist team leaders to do the evaluation of movement speed, and project heads also find the data important for their daily executions (Businessweek, 2008). Related research on the effective performance of contractors in the United Kingdom construction field reports that consumers play integral role in the efficient and effective deliverance of services in the construction industry. This adage attributes two poor communications between the customers and the products and service providers, hence failing to realize the customers preferences. Further related literature uncovers the habitual performance measures in the construction field, which include duration, price, quality, among other factors as the KPI scorecards that rate the level of results in construction projects (Butcher, et al, 2009).
Related literature unveils that CURT members initiate the recommended system that makes project execution simpler, which entail all office equipment such as faxes, printer, both intra and internet availability just to mention a few (CURT, 2005). Further literature reveals that the CURT members check their project progressions, and ensure the tracing of construction measures project activities. Literature shows that the labor force charged with such duty does the tracing, monitoring, and analysis of performance measures before presenting to the project head (CURT, 2005). According to the related literature, Premier Bankcard accepts the significance of both business intelligence and performance measurement as the initiator of information exchange in an organization. Literature indicates that Premier Bankcard offer lunch rewards, film entrance tickets, among other contests as their return on investment, which was successful because of their improvement on performance management (Businessweek, 2008). Available literature reports that performance measurement in organization can be successful if done in the line of four basic aspects, such as information, insights, influence, and institutionalizations (Mercer LLC, 2007).
Related literature shows that the CURT members involve in aggregating, analyzing, and presenting the information based on the progressive gratifications, and making adjustments on the areas lagging behind (CURT, 2005). Literature explains that the person in charge gives appropriate pieces of advice on the best areas in the project that require progression, hence building action logistics in line with the region of the project that require progression (CURT, 2005). Related literature reveals that the plan-do-check-act cycle improves the performance of a project by availing results if done repeatedly (CURT, 2005). Related literature declares that human resource should not realize the difference between BI and PM but should aim at excellent performance to endeavor the success of an organization (Businessweek, 2008). Related literature indicate that economic development agencies have sophisticated operations, such as global marketing, among others that need equally sophisticated measures of performance as opposed to their traditional performance measures that involve presenting organizations figures (Melkers Malone, 2002).
Related literature reveals that planning brings about project mechanisms and measures, doing allocates project mechanisms, and measures to the organizations units, checking determines how best the project mechanisms progresses, and finally acting escalates project mechanisms as required (CURT, 2005). Literature indicates that the persistent improvement on work outcomes follow the implementation of PDCA cycle in an organization (CURT, 2005). Related literature shows that Excel, Share Point Server, and SQL Server are BI tools developed by Microsoft Corporation to propel individual, group, and companys output, hence improving the overall performance of the business (Businessweek, 2008). Available literature uncovers the method for identifying performance indicators that include but not limited to using many individuals, greater influence on individuals health, focusing on critical issues, focusing issues the alter peoples perceptions, should be connected to results or real results on their own, should be flexible, easy to compare, valid, focus on projects vision and mission statement, should be reliable, among others (MHSIP, 1999).
Research Design
I will mainly use secondary data from the related literature on the CURT members and other companies Key Performance Indicators and Balanced Scorecard. I will put much emphasis on previous relevant studies based on past theories, corporate strategy, business strategy and business performance measuring tools such as KPIs, Balanced Scorecard, and Key Business Areas (KBAs). I will involve approach of the study, objectives of the study, and appropriate resources in my research design that will ensure effective data collection on the alternative approaches that various organizations use in performance measurement. I will integrate both study design and empirical cycle with study hypotheses to identify the significant characteristics of a good performance management system.
I will put much emphasis on the empirical cycle by exploring secondary data from related literature on developing a check list that is able to evaluate the organizations performance system (Crotty, 1998). I will also put much concentration on SWOT analysis, which entails companys strengths, weaknesses, opportunities, and threats that illustrates the gratifications and impediments of various performance measurement approaches by CURT members and other companies. During the collection of data from the secondary sources such as books, journals, magazines, internet, among others, there will be much focus on best practice approaches to companys performance.
I am bound to explain the methodology in the design cycle before testing my results that involves validating the applied methodology. My next step will be to make conclusions and recommendations from analysis of outcome on the design reasons for the performance measurement approach in the case study. In addition, I will recommend on the potential improvements in various performance measurement approaches used by different companies.
This research onion will be very significant in achieving my study objectives such as realizing the effectiveness of organizations performance measurement. I will apply the research onion concepts to assess the effectiveness of performance measuring tools used by CURT members and other companies, such as Key Performance Indicators (KPIs), Balanced Scorecard, and Key Business Areas (KBAs). This research onion covers research period, decisions, propositions, approaches, and study philosophy, which will enable my effective collection of data on the design reasons for the performance measurement approach in the case study companies (Ticehurst Veal 2000). This research onion will assist me in proper evaluation and assessment of CURT members and other organizations, their theories regarding performance measurement in organizations, corporate strategies, business strategies, and performance measuring tools, such as Key Performance Indicators (KPIs), Balanced Scorecard, and Key Business Areas (KBAs).
Data collection
I will collect data on the performance measurement used by CURT members and other organizations from the secondary sources, which include books, journal, magazines, newspapers, and internet, among other secondary sources. My concentration during data collection will be on the will be on the effectiveness of organizations performance measurement by emphasizing mainly on the effectives of measuring tools that CURT members and different organizations apply to measure both their financial and non financial performance. I will further thrive to identify the major features of effective performance measurement system that organizations apply. During data collection, I will focus on the design reasons for the performance measurement approach used by CURT members, and how other organizations improve their performance measurement approaches. My data collection from the secondary data will encompass CURT members as my case study, past theories, corporate strategies, business strategies, and measuring tools, such as KPIs, KBAs, and Balanced Scorecard.
Proposed findings interpretation and data analysis
I will apply both qualitative and quantitative analysis on the collected secondary data on measuring CURT members and other companies performance with performance measurement tools such as KPIs, KBAs, and Balanced Scorecard (Glaser Strauss, 1967). This will involve the application of both inductive and deductive concepts in analyzing CURT members and other organizations performance using the measuring tools such as KPIs, KBAs, and Balanced Scorecard, in line with study questions, objectives, and hypotheses to ensure studys validity. My proposed analysis will involve the analysis of CURT members as the case study, and cross case analysis of other companies performance measurement using measuring tools such as KPIs, KBAs, and Balanced Scorecard (Knox, 2004).
Time Frame
Since the study will mainly involve secondary data collection, relatively little time is enough in comparison to data collection from primary source. I have dedicated about three months for the whole study that covers the collection of data, compilation, and data analysis of the performance measurement of CURT members and other organizations using measuring tools like KPIs, KBAs, and Balanced Scorecard. My study time frame will be as follows the first month is data collection from secondary sources, second month is data compilation, and the third month will involve interpretation of study results, and data analysis.
Resources
For this study to be effective there is need for the incorporation of appropriate resources, which include but not limited to pens, computer, printer, foolscaps, accessibility to the internet, among others to ensure that the collection of required data on performance measurement of CURT members and other organizations are accurate. I will use the internet to collect current information on performance measurement of CURT members and other organizations that may have not found their ways into hard copies like books, journal, and magazines, among others.
Personnel
This cannot be appropriately carried out without helping hands from the appropriate personnel. I will therefore contract skilled personnel to assist me in collecting, compiling, and analyzing data on performance measurement of CURT members and other organizations using the measuring tools, which include KPIs, Balanced Scorecard, and KBAs. These skilled personnel will assist me in clearing any research backlog that might arise, thus maintaining the time frame of the study.
Clearance
Clearance is a key to better research, therefore is sought clearance before writing this thesis proposal from my supervisor. I first discussed the proposed topic with my supervisor to prove validity and significance of the study before clearing me to write the thesis proposal. My supervisor cleared me to commence the study processes that involve writing thesis proposal that will guide me during the study of performance measurement of CURT members and other organizations using measuring tools like KPIs, KBAs, and Balanced Scorecard. My supervisor will then read my thesis proposal to prove that the proposal followed the required framework that will produce the best results of the study.
This thesis proposal will assist in finding out performance measurement of CURT members and other organizations using measuring tools, which include Balanced Scorecard, Key Performance Indicators, and Key Business Areas (CURT, 2005). This study will uncover information on the design of KPIs and their relevance to both financial and non financial performance of organizations that leading authorities apply to improve their performances. The thesis proposal will explore the applicability of Balanced Scorecard by CURT members and other companies, and will also establish a structure that tests the eligibility of what organizations can apply to measure their performance, hence assisting various leading authorities to improve their performances.
I realized that some organizations poor performance is an attribute to lack of adequate measuring tools such as Balance Scorecard, Key Performance Indicators, and Key Business Areas, hence a decision to identify this topic. However, some organizations such as most of the CURT members exhibit fruits of incorporating performance measurement using measuring tools like KPIs, KBAs, and Balanced Scorecard. The CURT members for instance improvement of performance reflects in their financial and non financial reward (CURT, 2005). This study will therefore assist many organizations to develop valid structures of measuring performance, which will in turn improve their overall performance in the ever dynamic business landscape.
CURT members at times apply PDCA cycle continuously on the corporate stage where there is collection and correspondence of information from various works (CURT, 2005). These strategies can encourage progressive growth, improved dissemination of information, among other issues, thus an overall improvement of the project performance (CURT, 2005). Performance management offers distinctive valuation across the whole organizations units due to creation of responsibility culture, checking of KPIs, improving information exchange within and outside the organization, among others, hence overall improvement of the organizations performance (Businessweek, 2008). CURT members and other organizations value the measurement mechanisms that mainly focus on their financial performance as non financial performance trails. Even though organizations incline more to financial performance, non financial aspects such as consumer behaviors, market competitions, and business landscape developments also play integral roles and have strong correlation with the financial performance of an organization, therefore a need for consideration (Lnnqvist, 2001).
The CURT members and other organizations use Balanced Scorecard as a measuring tool to measure their performances (CURT, 2005). Balanced Scorecard embraces four proportionate aspects, such as consumers, fiscal issues, inward organizational mechanisms, expansions and learning, hence covering a wide range of organizations performances (Martin, 2009). The Key Performance Indicators present previous results, whether satisfactory or otherwise, realizes the quality of organizations mechanisms, decides on the business units that require expansions and growth, plus the needed resources, among others (Barbuio, 2009). The CURT members better performance attributes to the application of KPIs to measure their areas of weaknesses, hence improvements in their overall performance (CURT, 2005).
1.1 Thesis statement
The concept of measuring companies performances using the appropriate measuring tools, such as Key Performance Indicators, Key Business Areas, and Balanced Scorecard is an issue of persistent debate especially at the Board level of different organizations. Numerous companies face challenges at the Board levels on the best measurement tools to incorporate in gauging their performance. Related literature indicates that organizations that perform better such as the CURT members have appropriate tools for measuring their performances, while the ones that are lagging behind do not involve appropriate measuring tools such as KPIs, KBAs, and Balanced Scorecard. This study will aim at extracting information on the proper design of structures that can monitor organizations performances, which will assist in closing the existing gap of inappropriate approaches of measuring companies performances.
1.2 Scope of the Study
The study will cover a wide range of key performance indicators of CURT member companies and other organizations. The study will examine how measurement tools are effective for CURT member companies financial and non financial performances. The study will identify a case study company and closely examine their design of measurement tools and their effectiveness to the financial and non financial performance. The study will also examine various performance measurement approaches for CURT member companies.
1.3 Significance of the study
This study has much significance to leading authorities, companies, and organizations. The results will assist leading authorities to realize the designs of key performance indicators and their relevance to the companies operations. The study will assist organizations to formulate better balance scorecard that can improve both their financial and non financial performances. The study will further analyze the framework that depicts the eligibility of what can effectively measure CURT member companies performance, therefore assisting leading authorities to improve their overall performance.
1.4 Objectives
The main objective of this study is to examine the effectiveness of measurement tools that CURT member companies use to gauge their performance. For proper achievement of the main objective, further subdivisions are as follows
To understand the design reasons for the performance measurement approach of the CURT member companies
To evaluate the performance measurement approach of CURT member companies
To identify potential improvements in performance measurement approaches of CURT member companies
To find out performance measurements that suit CURT member companies and other organizations
1.5 Hypotheses
CURT member companies use key performance indicators to gauge their both financial and non financial performances.
Key performance indicators improve CURT member companies financial and non financial performance
Companies that have apply key performance indicators, such as KPIs and Balanced Scorecard perform better than their competitors.
1.6 Research questions
How do CURT member companies measure their output
What are the major features of an effective performance measurement system by CURT member companies
How does the examination of design reasons for performance measurement approach in CURT member companies assist the interested leading authorities
What are the performance measurement approaches of CURT member companies
Chapter 2.0 Related literatures
Related literature show that Construction User Roundtable (CURT) avails key performance indicators of various companies in United States of America, which include TESCO, Abbott Laboratories, Cisco systems, Walt Disney Imagineering, The Dow Chemical Company, Eastman Kodak Company, Citigroup, FMC Corporation, IBM, Intel Corporation, Salt River Projects, and Southern Companies, among others (CURT, 2005). Related study shows that performance managements improve the level of financial performance in companies that widely implores their use (Businessweek Research Services, 2008). Further related study notes that one major strategy is significant in measuring the companys performance. Martin (2009) notes that the company should consider their customers, finances, companys inner procedures and expansion opportunities in order to design a proper measurement tools for both financial and non financial performance.
CURT (2005) shows that performance measures of construction companies are of two categories, which include micro-measurement and macro-measurement. Related study notes that micro-measurement covers the companys internal features, while macro-measurement analyses and compares companys performance in a greater perspective. Related literatures indicate that performance measurement of a company involves fiscal and non fiscal concepts coupled with business results and their initiators (Lonnqvist, 2000). In Smith et al (2007) view, companies can measure both their financial and non financial performance through the business models applied and strategies incorporated. Related literatures indicate that companies develop key performance indicators depending on variables and expenses, which analyze their strengths, weaknesses, threats and opportunities Kromer (2009).
CURT (2005) notes that companies use micro-measurements to measure financial performance at regional level, which are then integrated to measure performance at greater levels. For instance, the Recordable Incident Rate for local company can be used in the comparison of other companies performance globally. Related research by The Businessweek Research Services (2007) indicates that performance management assists companies to organize and communicate their business strategies along different sections and all over the company. For example, Air Navigation Service Providers (ANSP) measures the performance of their Air Traffic Management at local (ATM), cross border, and international level, which assist in expenses management and safety surety. Performance indicators at local level show the services of the service quality, among other concerns of ANSP, and comparison on the performance is at the regional level (ICAO, 2005).
Related literature notes that construction measures entail outcome and procedural measures. For instance safety outcome measures encompass initial aid, physicians case, recordable incident, among others, while procedural safety involve behavioral survey, procedure auditing, and predictions of accidents, among other issues (CURT, 2005). According to Maisel (2001), businesses apply profits and operational returns to measure their financial performances and satisfaction of consumer preferences to depict non financial performances, with great value offered to financial performance. Maisel (2001) further notes that reduced marginal returns depict a companys retrogressive performance, therefore a need to redesign appropriate strategies to improve the performance. Related study shows that most companies use consumer services to measure non fiscal concerns.
Related study by CURT (2005) shows their members such as DTE Energy, Cisco Systems, Dow Chemical Company, Johnson Johnson, IBM, and General Motors, among others embrace the use construction measurements and persistent growth to capture the management concerns and companys gratifications. Related literatures indicate that fiscal issues are of high significance in evaluating the performance of a company as compared to developing models to help the top management (Maisel, 2001). Further study shows that many people value Balanced Scorecard the best way of realizing performance measurements in a company (Maisel, 2001).
The findings show that the highest average range stands at 3.80 with the lowest at 2.44. The rating was on a 5.00 scale, with 5 widely applied, 4 often applied, 3 applied, 2 seldom applied, and 1 not applied at all.
Related literatures indicate that projects head is responsible for ensuring that objectives of the project are in line with both consumer and collaborative aims. Project head is responsible for formulating and implementing processes and measures to trace, and bring forth the construction outcomes (CURT, 2005). Related literature shows that focusing on one key performance indicator during measurements of companys performance is of great significance and produces best results in comparison to collective use of KPIs. For example, picking of companys finance as single KPI will assist the company to monitor escalating or decreasing of overall sales, increasing or decreasing marginal returns, hence making appropriate judgments on the best way forward that will improve the companys overall performance (Martin, 2009).
Related literatures suggests that project head should work hand in hand with construction heads and project engineers to design the best measurements for the companys performance. The project head just as the name suggests will be in charge of the project and coordinates other group members by making sure that collaborative and consumer aims go together will companys goals (CURT, 2005). Further study reveals that project head organize project teams to identify companys key management areas such as strengths, weaknesses, opportunities, and threats. The project head evaluate performance measures that trace continuous performance of the project, and ensure that the project objectives are on the best track. The project head will finally take the opportunity to communicate the project outcome to both corporate group and consumers CURT (2005). Related literature shows that the best example of performance measurement systems is United Kingdom Audit Commissions Comprehensive Performance Assessment (CPA) that is responsible for over 400 local municipalities and councils in both Wales and England that report to CPA every year (Carlton, 2003).
Related literature shows that the responsibilities of project planner at the project level entail combining project control models with project measures procedures, and making a summary of construction measures and take to project head (CURT, 2005). Related study indicate that performance measures can be follow three processes, which include , model led, needs led and audit led. The needs led approach for instance identifies the consumer, business, and partners requirements that are combined to develop performance measures (Bourne Neely, 2003). Literature reveals that model approaches incorporates model theories of a business to formulate the performance measures, while the audit led approach involves auditing the prevailing performance measures. Literature indicates that audit led approach encompasses the collection of data concerning the existing performance measures, which are then put into comparison with the current performance measures with an aim of making appropriate adjustments (Bourne Neely, 2003).
Literature shows that the responsibility of the construction manager at the project level includes but not limited to looking for project opportunities and design improvement measures, implementation of constructions main aims, gathering and analysis of construction measurement information, and reporting the measures status of improvements to the project head (CURT, 2005). Related literature indicate that the incorporation of performance management at the L.B Foster, a United States manufacturing company based at Pittsburg for instance, assisted the company to achieve approximately 50 improvement on revenue, increased prices of stock by over 250, and increased the consumer preference satisfaction (Businessweek, 2008). Literature reveals that the Balanced Scorecard for small and medium enterprises has a close relationship between key performance indicators and the financial performances, addresses the hurdles to effective implementations of performance measures, combines the organizations plan with operations in the business, Balanced Scorecard rely on the cause and effect relationships, hence providing the best overview of a business unit (Taticchi, et al, 2008).
Related literature shows that the summary of project reports at the business environment, cross border, corporate level, and at the site is the responsibility of corporate level personnel. Further studies reveal that construction measures responsibilities at the corporate level does the analysis of data collected, benchmarking both outside and inside the organization, checks on the organizations strengths, weaknesses, opportunities, and threats, establishments of practical processes of result improvements, and the persistent elevation of corporate standards, duty procedures, and implementations of the performance measures (CURT, 2005). Literature indicates that the L.B Foster Company initially had inappropriate performance management mechanisms that were not connected and aligned to track their performances (Businessweek, 2008). Related literature reveal that Holy Cross Health System (HCHS), a chain of health providers in U.S. incorporate cost information system (CIS) to ensure that their operation were under control, which included reducing operational expenses and reformulation of performance measures. HCHS used the cost information system to combine overall ledgers expenditures, orders for utilized materials, and work force expenses. More literature reveals that the top management identified the production guidelines to countercheck the costs on work force, these expenses assist in the decision support system (DSS) to analyze numerous operation of the hospital network (Kohli, 2004).
Related literature indicate that the aim of this sample Balanced Scorecard Aspect and performance measurements id to create a state of equilibrium between measurements in association with every aspect, focusing on one proposition. Further literature reveals that such performance measurements should back up one another to ensure appropriate achievement of the required objectives. Performance measurements in the above table entail drivers and outcomes to enable easy analysis of an organizations performance (Martin, 2009). Related study reports that timing play an integral role at the project level, therefore a need to make appropriate project planning (CURT, 2005). Appropriate project planning will entail project construction measures at the initial stages, possibly after proper definition of project aims and project coverage. The implementation of construction measures operational procedures are put on action as the project construction progresses (CURT, 2005).
Related literature declares that constituted construction measures duty procedures assists in the collection of appropriate data that will be incorporated to analyze the performance of project. Further literature explains that constructive construction measures uncovers projects strength, weakness, opportunity, and threat both internally and externally, building of progressive concepts, and putting into action the directed construction work plans (CURT, 2005). Literature uncovers the significance of incorporating culture in line with realities, propositions, and measurements in the success of performance management. Related study reports that contrary to what organization might believe on that performance management minimize operational costs, performance management mainly involve putting priorities on the best action plans in organizations (Businessweek, 2008). Literature evidences that the performance management system structure checks the performance of the business in line with performance measurement system at the same time. This phenomenon operates along the major features of performance measurement systems formulation procedures in conjunction with subsequent performance measurements (Najmi, 2005).
Related literature reveals that timing at corporate level involves summarizing, aggregating, analyzing timely reports, preferably every month. There is initiation of progressive concepts and implementation of work processes on a persistent basis guided by the project input expenses, resources available, and profitability (CURT, 2005). Relevant studies further reports that CURT member companies such as Caterpillar Inc., Toyota Motor Mfg. North America, E.I. Dupont De Nemours Company, Exelon Corporation, and FMC Corporation, among others, incorporate quality improvement cycles to spearhead development in projects procedures and outcomes at the corporate and project stages (CURT, 2005). Related literature explains that Balanced Scorecard differs from the habitual performance measurement concepts because of the four coverage concepts, such as consumer aspects, inward organizational progressions, and fiscal concept. The Balanced Scorecard realizes whether the fiscal yardstick are outcome manifestations, hence the upshot of other remaining leading manifestations (Kagioglou, et al, 2001).
Related literature shows that CURT member companies such as Caterpillar Inc., FMC Corporation, and Exelon Corporation, among others apply a habitual cycle known as Plan-D0-Check-Account (PDCA) to countercheck their progress in construction outcomes (CURT, 2005). Related study indicates that BNSF Railway in Fort Worth, Texas incorporated a culture that encourages every employee to be accountable, thus an effective Key Performance Indicator in their overall performances (Businessweek, 2008). Further related literature declares that different organization may have different key performance indicators depending on the organizations vision and mission statement. Related literature offers the examples below as some of the KPIs that organization can use to measure their performance or not, and include but not limited to cash flows, direct costs, marginal returns and expenses, gains per labor force, and gains per consumer, among others (Morrison, 2009). Related study uncovers the main aspects of performance measures in organizations, which include being understandable, reliable, available, functional, valid, and responsible, among other features that ensures effective measurement and improvement of organizations performance (Lichiello, 2000).
Source Construction Measures Key Performance Indicators (CURT, 2005, p.7.)
This overall progressive cycle is persistently repeated to propel progressions in construction work mechanisms, and subsequent construction outcomes. Related literature reveals that CURT members designed standard project mechanisms in two sections, which include proprietor developments and searching and reapplication (CURT, 2005). Related literature shows that the CURT members would direct human resource and a summary of corporate experiences to come up with recommended project mechanisms (CURT, 2005). Literature reveals that CURT members integrate proprietary developments with searching and reapplying to achieve the required project mechanisms (CURT, 2005). Related literatures uncover some roles of KPIs in the broadcasting industry as reporting previous results, either positive or negative, selecting areas that require pull ups and the needed support, establishing the business mechanisms qualities, and letting partners to contribute and criticize the performance of broadcasting unit (Barbuio, 2009).
Related study indicates that CURT members had to formulate correlating concepts of construction measures that could assist in tracing project growth and making predictions on the projected results of the project mechanisms for the construction procedure (CURT, 2005). Further literature declares that such performance measures have the aims of supporting construction objectives, vision, and mission statement at all stages, such as cross border, sites, project, and corporate stage. Literature reveals that every measure comes with a way of realizing short run outcomes and future projections. Literature uncovers the uses of this measurement equipment, which checks the overview of management concerns and the comparison of real outcomes with projected outcomes, hence streamlining the performance of an organization (CURT, 2005). Related literature shows that many organizations fail to effectively measure their performance because of collection of data that are unnecessary to the real performance measurement mechanism. Literature further evidences that most organizations lack proper aims and propositions to assist in prioritizing the progressive concerns. In addition to such barriers effective implementation of performance measurement policies is the lack of mechanisms to carry out research on the main causes of poor performance of organizations (Costa, 2004).
Related literature reveals that CURT members design measures in sensitive concerns of construction development, which include price, program, variance execution, quality, safety, reliability, productivity, and consumer satisfaction, among others (CURT, 2005). Literature indicates that the price execution policy traces short term expenditure and the guesses the projected expense results, while program execution policy traces progressions in constructions, and guesses the projected program results. Relevant literature explains that the variance execution policy traces construction variance, and follows prices, quality concerns, and program (CURT, 2005). Related literature indicates that the development of Balanced Scorecard was mainly to eradicate the habitual tools for measuring performance of organizations. Literature further shows that Balanced Scorecard proved to be very effective in measuring organizations performance because of the wide coverage, such as fiscal aspects, consumer aspects, inward operational aspects, innovative aspects, among others (Olsen, 2008).
Related literature reports that the safety execution policy traces and put safety occurrences into various segments. Such safety measures involve accidents, doctors incidents, recordable cases, first aid incidents, among others. Related literature reveals that safety execution policy will guess the future and continuous measures, which include but not limited to behavioral observations, process auditing, and fatality projection concepts (CURT, 2005). Related studies reveal that Energizer Holdings Inc., based at St. Louis incorporated collaborative culture development in line with data choices, which assisted the company to realize positive impact on their business operations (Businessweek, 2008). Related literature announces that using Balanced Scorecard eradicates ambiguity in organization through showing of quantifiable signs, achieves equilibrium on the current, moderate, and long range execution goals by application of various performance measurements, and avails proposition communication arena interconnecting the human resource from the highest hierarchy to the lowest in an organization (Morisawa, 2001).
Related literature explains that quality execution policy controls and evaluates the quality of construction commodities, hence forecasts future quality impediments. Real quality concerns are among others, quality expenses, expenses of redoing the projects, non compliance concerns, and quality checks (CURT, 2005). Literature indicates that ICO Holland called the person in charge of the union to get involved proposition planning mechanisms to propel better performance not to mention Key performance Indicators. Further related literature reveals that this invitation was to involve all the human resource in formulating KPIs, hence improving the overall performance of the company (Businessweek, 2008). Related literature shows that performance measurement policy assists in planning and achieving organizations goals, decide on the significant organizations sustainable leader, counterchecks human resources performance and organization achievement measures, use the collected data to trace outcomes in the long run, and checks the organizations threats and opportunities plus their relevancy to performance measures (Mercer LLC, 2007).
Related literature reports that organizations at times apply the performance factor policy in measuring the workforce productivity, choosing production expansion leverages, forecasting the influence of the expense on project and programs. Further studies shows that organizations use performance factor policy mostly when there is projected uncertainty due to less production against the expectations (CURT, 2005). Related literature reveals that Premier Bankcard Inc, which bases in Sioux Falls, S.D, and one of the outstanding credit card organization in U.S. considered the Return on Investment (ROI) by reducing the number of mails sent to customers. For example, cutting down the number of letters sent to their customers that do not receive reaction by slightly over five per cent improved the companys Return on Investment (Businessweek, 2008). Related literature reports that performance management cycle encompasses planning, implementing, and evaluating processes, which assist those who are in charge with relevant data to make appropriate choices during companys executions, hence realizing better outcomes (McDavid, 2005).
Related literature indicates that CURT members in a bid to realize their consumer satisfaction, embarks on measuring the performance of their developed commodities. Further literature shows that such measures plays integral role on the improved fiscal performance, which include capacity, speed, reliability, efficiency, expense on maintaining equipment, and operational expenses (CURT, 2005). Related literature uncovers the concept of data viewing in organization, which continuously brick conflicting issues time and again. Related literature indicates that different data for different workforce is the best way forward, hence encouraging labor to forge the appropriate way. For example, Procter Gamble, the Cincinnati based company commenced the corporate reflective system that will march companys operations and the workforce skills for more than 30,000 global users (Businessweek, 2008). Related literature indicates that performance measurement mechanism does not only involve data gathering and evaluation in line with the organizations aims and objectives but should cover the whole execution mechanism directed to the improvement of delivery of public health service for this matter. Related literature further breaks the mechanisms into making a proper plan, executing, making reports, and results (Delcarme, 2004).
Related literature shows that CURT members most of the time trace their consumers satisfactions by the application of consumer results survey in line with consumer preferences (CURT, 2005). Related literature reveals that Skanska USA Building, a Parsippany, N.J based company avails data to their top management and employees that led to their workforce making choices that continuously impacts on the companys fiscal developments (Businessweek, 2008). Related literature shows that proper designing of performance measurement mechanism entails collecting the consumer perspectives, and various business partners to incorporate into the business aims and goals. Further related literature recognize three stages of designing performance measurement mechanism, which include alignment of unsubstantiated information, editing the unsubstantiated information, and finally coming up with appropriate performance measurement mechanism (Jamaludin, et al, 2007).
Related literature notes that there is implementation and deployment of recommended project procedures and collaborative measurement mechanisms by the CURT members (CURT, 2005). Literature shows that matching performance measures and project procedures should be a project group task, therefore the head of the project is entitled to mobilizing and recruiting in the company, explaining the aims, vision, and mission of the project, couching and enlightening human resource in the company, and putting the recommended system in the company (CURT, 2005). Related literature reports that Corporate Express, which distributes office services and products in Broomfield, Colo, increased their business intelligence equipment from below 1000 to approximately 4000 workforce. Further literature reveals that this phenomenon assisted Corporate Express to develop their KPI by offering every section the required data, integrating collaborative structure to ease accessibility of data, and concentrate on utility, which labor should realize their significance due to the application of performance management and business intelligence (Businessweek, 2008). Related literature states that Balanced Scorecards utility reflects in areas that include reason of propositioning performance results, connecting performance and proposition, and to relay various aspects in an organization (Kueng Krahn, 1999).
According to related study, the CURT members identify appropriate human resource for the project activities and matching performance measures who take the responsibility of the project development, and there is need for acquaintance with the aims, vision and mission of the project to ensure a success (CURT, 2005). Related literature shows that BNSF Railway incorporated automatic reporting tool that counter checks approximately 50 measures of business operation. In addition, the measures assist team leaders to do the evaluation of movement speed, and project heads also find the data important for their daily executions (Businessweek, 2008). Related research on the effective performance of contractors in the United Kingdom construction field reports that consumers play integral role in the efficient and effective deliverance of services in the construction industry. This adage attributes two poor communications between the customers and the products and service providers, hence failing to realize the customers preferences. Further related literature uncovers the habitual performance measures in the construction field, which include duration, price, quality, among other factors as the KPI scorecards that rate the level of results in construction projects (Butcher, et al, 2009).
Related literature unveils that CURT members initiate the recommended system that makes project execution simpler, which entail all office equipment such as faxes, printer, both intra and internet availability just to mention a few (CURT, 2005). Further literature reveals that the CURT members check their project progressions, and ensure the tracing of construction measures project activities. Literature shows that the labor force charged with such duty does the tracing, monitoring, and analysis of performance measures before presenting to the project head (CURT, 2005). According to the related literature, Premier Bankcard accepts the significance of both business intelligence and performance measurement as the initiator of information exchange in an organization. Literature indicates that Premier Bankcard offer lunch rewards, film entrance tickets, among other contests as their return on investment, which was successful because of their improvement on performance management (Businessweek, 2008). Available literature reports that performance measurement in organization can be successful if done in the line of four basic aspects, such as information, insights, influence, and institutionalizations (Mercer LLC, 2007).
Related literature shows that the CURT members involve in aggregating, analyzing, and presenting the information based on the progressive gratifications, and making adjustments on the areas lagging behind (CURT, 2005). Literature explains that the person in charge gives appropriate pieces of advice on the best areas in the project that require progression, hence building action logistics in line with the region of the project that require progression (CURT, 2005). Related literature reveals that the plan-do-check-act cycle improves the performance of a project by availing results if done repeatedly (CURT, 2005). Related literature declares that human resource should not realize the difference between BI and PM but should aim at excellent performance to endeavor the success of an organization (Businessweek, 2008). Related literature indicate that economic development agencies have sophisticated operations, such as global marketing, among others that need equally sophisticated measures of performance as opposed to their traditional performance measures that involve presenting organizations figures (Melkers Malone, 2002).
Related literature reveals that planning brings about project mechanisms and measures, doing allocates project mechanisms, and measures to the organizations units, checking determines how best the project mechanisms progresses, and finally acting escalates project mechanisms as required (CURT, 2005). Literature indicates that the persistent improvement on work outcomes follow the implementation of PDCA cycle in an organization (CURT, 2005). Related literature shows that Excel, Share Point Server, and SQL Server are BI tools developed by Microsoft Corporation to propel individual, group, and companys output, hence improving the overall performance of the business (Businessweek, 2008). Available literature uncovers the method for identifying performance indicators that include but not limited to using many individuals, greater influence on individuals health, focusing on critical issues, focusing issues the alter peoples perceptions, should be connected to results or real results on their own, should be flexible, easy to compare, valid, focus on projects vision and mission statement, should be reliable, among others (MHSIP, 1999).
Research Design
I will mainly use secondary data from the related literature on the CURT members and other companies Key Performance Indicators and Balanced Scorecard. I will put much emphasis on previous relevant studies based on past theories, corporate strategy, business strategy and business performance measuring tools such as KPIs, Balanced Scorecard, and Key Business Areas (KBAs). I will involve approach of the study, objectives of the study, and appropriate resources in my research design that will ensure effective data collection on the alternative approaches that various organizations use in performance measurement. I will integrate both study design and empirical cycle with study hypotheses to identify the significant characteristics of a good performance management system.
I will put much emphasis on the empirical cycle by exploring secondary data from related literature on developing a check list that is able to evaluate the organizations performance system (Crotty, 1998). I will also put much concentration on SWOT analysis, which entails companys strengths, weaknesses, opportunities, and threats that illustrates the gratifications and impediments of various performance measurement approaches by CURT members and other companies. During the collection of data from the secondary sources such as books, journals, magazines, internet, among others, there will be much focus on best practice approaches to companys performance.
I am bound to explain the methodology in the design cycle before testing my results that involves validating the applied methodology. My next step will be to make conclusions and recommendations from analysis of outcome on the design reasons for the performance measurement approach in the case study. In addition, I will recommend on the potential improvements in various performance measurement approaches used by different companies.
This research onion will be very significant in achieving my study objectives such as realizing the effectiveness of organizations performance measurement. I will apply the research onion concepts to assess the effectiveness of performance measuring tools used by CURT members and other companies, such as Key Performance Indicators (KPIs), Balanced Scorecard, and Key Business Areas (KBAs). This research onion covers research period, decisions, propositions, approaches, and study philosophy, which will enable my effective collection of data on the design reasons for the performance measurement approach in the case study companies (Ticehurst Veal 2000). This research onion will assist me in proper evaluation and assessment of CURT members and other organizations, their theories regarding performance measurement in organizations, corporate strategies, business strategies, and performance measuring tools, such as Key Performance Indicators (KPIs), Balanced Scorecard, and Key Business Areas (KBAs).
Data collection
I will collect data on the performance measurement used by CURT members and other organizations from the secondary sources, which include books, journal, magazines, newspapers, and internet, among other secondary sources. My concentration during data collection will be on the will be on the effectiveness of organizations performance measurement by emphasizing mainly on the effectives of measuring tools that CURT members and different organizations apply to measure both their financial and non financial performance. I will further thrive to identify the major features of effective performance measurement system that organizations apply. During data collection, I will focus on the design reasons for the performance measurement approach used by CURT members, and how other organizations improve their performance measurement approaches. My data collection from the secondary data will encompass CURT members as my case study, past theories, corporate strategies, business strategies, and measuring tools, such as KPIs, KBAs, and Balanced Scorecard.
Proposed findings interpretation and data analysis
I will apply both qualitative and quantitative analysis on the collected secondary data on measuring CURT members and other companies performance with performance measurement tools such as KPIs, KBAs, and Balanced Scorecard (Glaser Strauss, 1967). This will involve the application of both inductive and deductive concepts in analyzing CURT members and other organizations performance using the measuring tools such as KPIs, KBAs, and Balanced Scorecard, in line with study questions, objectives, and hypotheses to ensure studys validity. My proposed analysis will involve the analysis of CURT members as the case study, and cross case analysis of other companies performance measurement using measuring tools such as KPIs, KBAs, and Balanced Scorecard (Knox, 2004).
Time Frame
Since the study will mainly involve secondary data collection, relatively little time is enough in comparison to data collection from primary source. I have dedicated about three months for the whole study that covers the collection of data, compilation, and data analysis of the performance measurement of CURT members and other organizations using measuring tools like KPIs, KBAs, and Balanced Scorecard. My study time frame will be as follows the first month is data collection from secondary sources, second month is data compilation, and the third month will involve interpretation of study results, and data analysis.
Resources
For this study to be effective there is need for the incorporation of appropriate resources, which include but not limited to pens, computer, printer, foolscaps, accessibility to the internet, among others to ensure that the collection of required data on performance measurement of CURT members and other organizations are accurate. I will use the internet to collect current information on performance measurement of CURT members and other organizations that may have not found their ways into hard copies like books, journal, and magazines, among others.
Personnel
This cannot be appropriately carried out without helping hands from the appropriate personnel. I will therefore contract skilled personnel to assist me in collecting, compiling, and analyzing data on performance measurement of CURT members and other organizations using the measuring tools, which include KPIs, Balanced Scorecard, and KBAs. These skilled personnel will assist me in clearing any research backlog that might arise, thus maintaining the time frame of the study.
Clearance
Clearance is a key to better research, therefore is sought clearance before writing this thesis proposal from my supervisor. I first discussed the proposed topic with my supervisor to prove validity and significance of the study before clearing me to write the thesis proposal. My supervisor cleared me to commence the study processes that involve writing thesis proposal that will guide me during the study of performance measurement of CURT members and other organizations using measuring tools like KPIs, KBAs, and Balanced Scorecard. My supervisor will then read my thesis proposal to prove that the proposal followed the required framework that will produce the best results of the study.
This thesis proposal will assist in finding out performance measurement of CURT members and other organizations using measuring tools, which include Balanced Scorecard, Key Performance Indicators, and Key Business Areas (CURT, 2005). This study will uncover information on the design of KPIs and their relevance to both financial and non financial performance of organizations that leading authorities apply to improve their performances. The thesis proposal will explore the applicability of Balanced Scorecard by CURT members and other companies, and will also establish a structure that tests the eligibility of what organizations can apply to measure their performance, hence assisting various leading authorities to improve their performances.
I realized that some organizations poor performance is an attribute to lack of adequate measuring tools such as Balance Scorecard, Key Performance Indicators, and Key Business Areas, hence a decision to identify this topic. However, some organizations such as most of the CURT members exhibit fruits of incorporating performance measurement using measuring tools like KPIs, KBAs, and Balanced Scorecard. The CURT members for instance improvement of performance reflects in their financial and non financial reward (CURT, 2005). This study will therefore assist many organizations to develop valid structures of measuring performance, which will in turn improve their overall performance in the ever dynamic business landscape.
CURT members at times apply PDCA cycle continuously on the corporate stage where there is collection and correspondence of information from various works (CURT, 2005). These strategies can encourage progressive growth, improved dissemination of information, among other issues, thus an overall improvement of the project performance (CURT, 2005). Performance management offers distinctive valuation across the whole organizations units due to creation of responsibility culture, checking of KPIs, improving information exchange within and outside the organization, among others, hence overall improvement of the organizations performance (Businessweek, 2008). CURT members and other organizations value the measurement mechanisms that mainly focus on their financial performance as non financial performance trails. Even though organizations incline more to financial performance, non financial aspects such as consumer behaviors, market competitions, and business landscape developments also play integral roles and have strong correlation with the financial performance of an organization, therefore a need for consideration (Lnnqvist, 2001).
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