Research methodology

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The determining of KPIs will be an important initial step in establishing a performance measurement system (Bayraktar & Arif, 2013).  When the KPIs are identified and implemented well, can play an important role in giving information on the construction company’s performance. In determining and analyzing the set of perceived KPIs used by construction industries in Port Richey, Florida, the construction companies with specialization in building works in Florida will be targeted with a representative sample of this population to be determined.

The key performance indicators to evaluate and compare the performance of construction companies will identify from a review of the literature (Snelson, 2016). These KPIs will form the basis of study questionnaire, which will be used to sample some opinions of executives in construction companies on the degree of importance of key performance indicators. Using data collection as well as analysis, the key performance indicators’ relative importance will be identified through relative importance index (Dominic, Shardt, Ding & Luo, 2016).

A set of raw KPIs will initially be obtained from a rigorous literature review of previous studies on KPIs. The indicators will be classified into five performance perspectives. The classified KPIs will form the basis of research questionnaire survey. The questionnaire will be divided into four parts. The first one will contain questions on construction firm; for instance, the employee number, yearly work volume and the length of the company in the industry. It will also provide general information on individuals completing the questionnaire like their positions and years of experience in the position. The second section will include questions on the extent, importance as well as the mechanism of using KPIs in construction companies (Habidin, Salleh, Md Latip, Azman & Mohd Fuzi, 2016). The third section will have questions on the level of using benchmarking strategy in construction organizations Port Richey, Florida, and which type of benchmarking enjoys dominance. In the fourth section, the construction officers will be asked to rate individual KPI basing on professional judgment on a five-point Likert-type scale (where 1 = very low importance, 2 = low importance, 3 = medium importance, 4 = high importance, and 5 = very high importance). At the end of each set of indicators in this section, the chance will be given to respondents to give additional and rating on any other indicator.

Research Questions

The intent of this qualitative inquiry is to explore the role of the leaders in managing and measuring performance and determining the use of KPIs in the construction industry.  The research questions include:

Q1. What are the most significant key performance indicators of construction projects in Port Richey?

Q2. What are the factors affecting the performance of construction projects in Port Richey?

Q3.  What is the association between the ranking of owner, contractor and consultant actors regarding key performance indicators?

Q4. What is the degree of agreement/disagreement between owners, contractors and consultants regarding the ranking of key performance indicators?

Q5. What are the recommendations to improve the performance of construction projects in Port Richey?

Task 2

Definition of Key Terms

Term 1.Key performance indicators (KPIs)

KPIs are a set of measures that focus on those aspects of the organizational performance that are crucial for the future and current success of the organization (Parmenter, 2013).

Term 2.  Indicator

An instrument for measuring change over time (Handfield, Straube, Pfohl, & Wieland, 2013)

Term 3.  Performance measure

Performance measure refers to a quantifiable means of indicating and assessing how an organization in question is achieving its desired goals and objectives (McFadden, Eakin, Beck-Frazier, & McGlone, 2005).  Different executive routinely uses various performance indicators to determine how the business is performing and how well this organization is geared towards the short-term or long-term goals.  Some of the performance measures or indicators a typical organization can use recurring units of production, current levels of demand for the organization’s products and operating efficiency (Bennis, 2012).

Term 4.Benefits cost factor

Benefits cost factor is an indicator, used in analyzing the sound value of a project or a proposal.  Here, a ratio factor of the advantages of the project to its costs is calculated, which forms a basis for concluding the worth of assuming the project (Franco-Santos, Lucianetti, & Bourne, 2012).  Apparently, the benefits-cost factor is used in two ways.  These include: evaluating or justifying the soundness of a proposed investment and, as a basis, for choosing between two alternative business investments based on the cost and benefits of the options.  The investment with the higher or better benefits to cost ratio (factor) is considered the better alternative (Danks & Allen, 2014).

Term 5.First calls resolution

First, call resolution defined as a behavior appropriately engaging and addressing the customers and their needs the first time they call, thus emanating the need for the customers to call again, which will consume time.  Companies that records short talk time on average can be said to have good first call resolution rates, meaning that customers’ calls are answered satisfactorily.

Term 6.Calls per day by the agent

This phrase is used to indicate the number of calls on average that an agent receives from customers for inquiries or other purposes in a day.  It can also mean the number of appeals received by one agent for business purposes each day (Bennis, 2012).

Term 7.Attrition rate

Attrition rate is a unit of measurement used to assess the number of individuals moving out of a collective group because of various causes over a specified period.  In business or organizational context, the attrition rate is the ratio of the number of employees, staff, customers, shareholders, or any other stakeholder who are leaving the company to the initial number they were.  Attrition rate is subject to such factors as retirement, resignation, or even customer’s dissatisfactions (Wren, 1995).

Term8.Abandon rate

Abandon rate is the proportion of the total calls made by the customers and, which hang up before being received by the agent.  Also divided the total abandoned calls by the total calls made in a particular period (Oyinlade, 2006).

Term 9.Agent utilization

Utilization is the amount of time an agent is on calls or is logged at a certain time (Kaplan, 2009).

Term 10. Business value

It is an informal term that encompasses all forms of value which determine the health as well as the well-being of an organization in the long run (Haponava, & Al-Jibouri, 2012).

Term 11. Construction Project Management

It is the general planning, coordination as well as control of any project from its start to completion. It is aimed at satisfying client’s expectations to come up with a functionally as well as financially viable project.It is a form of management accounting which allows organizations to predict impending expenditures in order reduce chances of going over the budget.

Term 12.  Performance metrics

Performance metrics is anything that measures organization’s activities as well as performance, and it supports a range of stakeholder needs from customers, shareholders to employees (Tian, Nearing, Peters-Lidard, Harrison & Tang, 2016).

Term 13. Construction work

It is work for construction, alteration, as well as repair, including painting and decorating (Keane, Deschamps & Maguire, 2016).

Term 14:  Balanced Scorecards

It is a strategy performance management tool supported by design methods as well as automation tools used by managers to track the execution of activities by the employees within their control and monitor the consequences of the actions.

Term 15. Stakeholders

They are people who affect or can be affected by an organization’s actions, objectives as well as policies (Haponava & Al-Jibouri, 2012). In construction projects, they include owners, laborers, contractors, consultants among others.

Task 3

In-depth description of design of population, sampling approach and size, data collection, and analysis

The target participants in this study will be owners, contractors as well as consultants. According to the Port Richey Contractors Union in Florida, there are 718 contractor organizations. According to the Engineers’ Association in Port Richey, there are 191 consultant offices.  The owner’s number is determined by 718 owners in Port Richey. This sample size can get calculated using an equation with 94% confidence level.  It, therefore, means that the questionnaire can be distributed to 191 consultant offices so that 94% confidence level is achieved.For the owners, the number will be determined will be not large since there are 70 owners.  Therefore, it will not require determining the sample size using calculation but to select all the 70 owners (Kylili, Fokaides & Lopez Jimenez, 2016).These respondents will project managers, site engineers as well as organizations managers since they have good practical experience in construction field. Their vast experiences will be a perfect indication of finding out the perceptive of relative importance in project performance indicators among the owners, consultants as well as contractor parties. Their experiences will include various construction fields including, roads Owners; buildings consultants; contractors, Owners consultants contractors, transportations as well as water and sewerage projects. The questionnaire will have a table showing job frequency of respondents’ job title for every group (Keane, Deschamps & Maguire, 2016). The questionnaire will be utilized as data collection tools for the study (Kukushkin Otto & Howard, 2015).

Data analysis

The respondents will give numerical scoring that expresses their opinions on the level of the importance of every KPI. The data which will be collected will be analyzed using different statistical methods. The relative advantage of KPIs will be identified by the use of relative importance index (Øye, Sørensen & Glasdam, 2016).

In which Wi = is the weight given to the ith response: i = 1, 2, 3, 4, 5, Xi = frequency of the ith response, A =is the highest weight, and n = is the total number of respondents (Marshal, 2016). The relative advantage of KPIs on all research questions will be calculated, and the information interpreted in a qualitative approach.


As a way of selecting the appropriate data analysis method, the measurement level must always be understood. For each measurement, there is an appropriate way that can be used. In this case, ordinal scales will be used.  This is the ranking or rating using integers in an ascending or descending manner  The assigned numbers to the important (1,2,3,4,5,  will not indicate that the scale intervals will be equal, neither will they represent absolute quantities (Lee, 2015).

The relative importance index method (RII) will be used to determine owners, consultants as well as contractor’s perceptions of the relative importance of key performance indicators in construction projects. The relative importance index will then be computed. The measurements will help to explain the KPIs in construction companies which will be vital you managers in the related fields. This research will use survey questionnaires to achieve its purposes.

Task 4

Organizational Theories

Total quality management (TQM)

Total Quality Management is also called total productive maintenance. It is a management approach to long-term success using customer satisfaction.  TQM involves all members of an organization participating in improving products, processes, services as well as the culture in which they operate (Wei-Chih, 2016). The Primary Elements of TQM are always summarized as a management system with a customer-focused organization involving all employees in continuous improvement. It utilizes strategy, data as well as effective communications to integrate the discipline quality into the culture as well as activities. These concepts are found in the current Quality Management Systems, which is the successor of TQM.

Balanced Scorecard (BSC)

The balanced scorecard means a strategic planning and management system used in business industry, government as well as nonprofit organizations to align business practices with the vision as well as the strategy of an organization, enhance internal and external communications, and monitor performance against the strategic goals (Vukomanovic, & Radujkovic, 2013). This concept originated as a performance measurement framework that adds strategic non-financial output measures to traditional fiscal metrics to provide managers and executives with a highly balanced picture of organizational performance. The balanced scorecard views an organization from various perspectives such as; Financial: a perspective of shareholders, Customer experience and perceive, Business Process and Learning and Growth. For these perspectives, the balanced scorecard prompts one to come up with metrics, set targets regarding performance and collect as well as analyze data. Scorecard, therefore, provides an excellent mechanism for reviewing strategic implementation upon measurement (Tengfei, Wenzhe, Dashan, Wenxin & Min, 2016).


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