engleski

Performance management framework for construction industry

In recent years many performance management models have seen the light of day, among which the Balanced Scorecard (BSC) and EFQM Excellence model (EFQM) are the most popular and widely used. Despite their popularity, there is a scarcity of literature which supports the applicability of these models on construction industry. Therefore, the purpose of this paper is to design a performance management framework for the construction industry, by analyzing the empirical relationship between European excellence model (EFQM) and the Balanced Scorecard (BSC). To form the framework, data were collected by way of the EFQM self-assessment method on 34 construction companies in Croatia and Bosnia and Herzegovina. Afterwards the framework was verified in a construction company in Croatia. The research results suggest that EFQM and BSC are complementary tools for managing performance. This confronts many previous studies that have put BSC and EFQM on the opposite sides. Furthermore, we have found that EFQM is the missing link of strategic control when using BSC. Otherwise BSC, when used alone, can easily become generator of lagging measures. Therefore construction companies need to engage in benchmarking efforts (i.e. EFQM self-assessment) together with BSC in order to: benchmark its performance against their rivals and to incorporate the weaknesses found in to the strategy. This paper contributes to project management (PM) research by exploring the relationship between EFQM and BSC in a project oriented industry (i.e. the construction) that has not yet fully accepted capacities of PM. Furthermore, this is the first study that offers insights into the relationship between BSC and EFQM based on data gathered from real self-evaluations in construction industry

performance management ; the balanced scorecard ; EFQM excellence model ; benchmarking ; construction industry

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