PERFORMANCE METRICS TO ENCOURAGE CHANGE IN THE CONSTRUCTION INDUSTRY

摘要

Today's organisations are faced with constant shifts in their external environments that require them to adapt and change. The ability of organisations to continuously undertake and manage this change is one of the essential capabilities for success. Organisations that adapt their systems appropriately and effectively can attain a position of competitive advantage and enhanced success. Organisations that fail to do this can result in their changes becoming a 'millstone' around their neck (Skinner, 1985). Although the pressures to adapt to change are equally as high in the construction industry as in other industries, many construction organisations exhibit an inability to adequately embrace it. This may be due in part to the one-of-a-kind, project nature of production (Ballard et al 1998), the segregation of stakeholders across the supply chain (Latham 2001; Moore et al 2001) or perhaps the effect, which the bid process exerts on operations. However, irrespective of the cause, there currently exists scope for enormous opportunity for construction organisations that can effectively manage change. Measurement within the construction industry is strongly influenced by the project nature of its work methods (Kagioulou et al 2001). The measurement of time, expenditure and resources are closely examined and controlled on an individual project basis. Kaplan and Norton (1996) promote the use of a broader range of metrics as part of their in their balanced scorecard, to attain a more holistic perspective of the organisation. The selection of appropriate metrics is the most effective means of ensuring action within organisations (Price-Waterhouse, 1995). To ensure that construction organisations recognise the importance of change and manage change effectively, a set of change metrics need to be defined. The paper highlights the need for metrics that focus on the process of organisational change rather than the specific change projects. Such metrics will not only provide a benchmark for evaluating organisational progress overtime but also enhance employee motivation and reduce resistance towards change by communicating its importance across the organisation. Thus, the primary aim of this paper is to propose an initial set of metrics to enhance the change capability of construction organisations.