Traditionally businesses have measured their performance solely in financial terms. This limited approach has been challenged, with the introduction of the concept of key performance indicators (KPIs) for non-financial results. In response to the Latham and Egan Reports, the UK construction industry has developed its own set of KPIs. However, their effective use has been limited. This paper reviews these and other construction KPIs and concludes that most of the KPIs used are post event, lagging measures that do not provide the opportunity to change. Their results are not validated and thus are open to interpretation. The result is that KPIs are being used within the industry as a marketing tool, and not as an integral part of business management. This paper distinguishes between three types of measure and suggests a framework for their effective use within an overall performance measurement system based on change action driven by results.The industry must replace competitive tendering with long term relationships based on clear measurement performance in quality and efficiency . . . [by] producing its own structured, objective performance measures agreed with clients . . . Construction companies must prepare

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Knowledge management (KM) is now recognized as a core business concern and intellectual assets play a vital role in gaining competitive advantage. Within the architecture, engineering and construction (AEC) industry, where the need for innovation and improved business performance requires the effective deployment and utilization of project knowledge, the need for strategic knowledge management is also being acknowledged. This paper reviews various initiatives for KM in order to assess the extent to which it is being implemented in the AEC sector. Contextual issues are identi. ed, and the findings from two research projects are used to assess current strategies for KM in AEC firms. These studies show that effective knowledge management requires a combination of both mechanistic and organic approaches in an integrated approach that incorporates both technological and organizational/cultural issues. The paper concludes with recommendations on how this could be achieved in practice.

Knowledge management (KM) has received considerable attention in recent years. Some consider knowledge the most strategically important resource, and learning the most strategically important capability for business organizations. Major UK construction organizations have recognized the benefits that KM can offer and have thus invested in KM. This paper reports on a survey of these companies. The purpose of the survey was: (1) to examine the importance of KM to UK construction organizations; (2) to investigate the resources used to implement KM strategies; and (3) to identify the main barriers to implementing KM strategies. The survey found that the main reasons for implementing a KM strategy was the need to share the tacit knowledge of key employees and to disseminate best practice. Also, significant resources in terms of staff time and money were being invested in KM, but the main barrier to implementing a KM strategy was the lack of standard work processes.

PurposeThe paper seeks to focus on the role of knowledge management in promoting corporate sustainability in the construction industry context. It proposes a maturity roadmap – STEPS to facilitate the implementation of a knowledge management strategy.Design/methodology/approachTwo research methods were used. The first consisted of a postal questionnaire sent to the top 170 UK construction firms consisting of engineering design and construction contractor firms. The organisations were selected because they were considered the most influential organisations in the UK construction sector. The second research method involved 28 case study interviews with eight construction firms to investigate their approach to knowledge management and performance improvement. The results of the questionnaire survey and the case studies were used to develop the STEPS maturity roadmap.FindingsThe paper found that knowledge management is inextricably linked to corporate sustainability, but a methodical approach is required for successful knowledge management implementation. With this in mind, the STEPS maturity roadmap was developed to provide a structured approach to implementing and benchmarking knowledge management efforts.Practical implicationsThis will allow companies to understand where they fall within the STEPS maturity roadmap and to devise a strategy to be developed to attain higher levels of knowledge management maturity.Originality/valueThis paper provides a mechanism for organisations to benchmark their knowledge management activities and to develop a knowledge management strategy that would improve their activities.

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The 21st century is now seen as the time for the construction industry to embrace new ways of working if it is to continue to be competitive and meet the needs of its ever demanding clients. Collaborative working is considered by many to be essential if design and construction teams are to consider the whole lifecycle of the construction product. Much of the recent work on collaborative working has focused on the delivery of technological solutions with a focus on web (extranets), CAD (visualisation), and knowledge management technologies. However, it is now recognised that good collaboration does not result from the implementation of information technology solutions alone. The organisational and people issues, which are not readily solved by pure technical systems, need to be resolved. However, approaches that exclusively focus on organisational and people issues will not reap the benefits derived from the use of technology, especially in the context of distributed teams which are the norm in construction. Work currently being undertaken at Loughborough University aims to bring together the benefits enabled by the technology, with the organisational, and its people issues to provide a framework enabling high level strategic decisions to be made to implement effective collaboration. This paper reports on the initial stages of the project: the background to the project, the methodology used, and findings from the literature survey and the requirements capture survey conducted as part of the project.