Construction Portfolio Performance Management Using Key Performance Indicators

Authors

  • Mohsen Shahandashti University of Texas, United States
  • Baabak Ashuri Georgia Institute of Technology, United States
  • Ali Touran Northeastern University, United States
  • Reza Masoumi Northeastern University
  • Edward Minchin University of Florida, United States

DOI:

https://doi.org/10.37265/japiv.v10i2.16

Keywords:

Construction portfolio performance, Key performance indicator, Key results area

Abstract

The purpose of this study is to determine the relative importance of key results areas (KRAs) and develop key performance indicators (KPIs) for construction portfolio performance management. The research methodology consists of the following steps: (1) Designing and conducting a fact-finding survey of owners and contractors to determine the relative importance of KRAs; (2) Designing and conducting structured interviews to develop KPIs; and (3) Assessing the usefulness of the results. Unlike the literature that has consistently highlighted the importance of risk management for construction portfolio performance management, risk management is not among top five KRAs (schedule, cost, cash flow, change management and safety) identified in the survey. This represents the significant gap in how research community and industry look at portfolio performance management. When it comes to dashboard development, contractors and owners have different KRAs within their dashboard for portfolio management. The limited knowledge about the relative importance of KRAs is one of the most important barriers towards managing project portfolios. This study is the first attempt to critically examine the literature and practice of construction portfolio performance management in order to highlight noteworthy differences between KRAs studied by the research community and implemented by the industry.

Published

2018-12-03

How to Cite

Shahandashti, M., Ashuri, B., Touran, A., Masoumi, R., & Minchin, E. (2018). Construction Portfolio Performance Management Using Key Performance Indicators. Journal for the Advancement of Performance Information and Value, 10(2), 85 - 101. https://doi.org/10.37265/japiv.v10i2.16