Presentation on theme: "KPI Workshop – The future of the construction industry KPIs"— Presentation transcript:
1KPI Workshop – The future of the construction industry KPIs 1 February 2012
2BackgroundConstructing Excellence responsible for publication of KPIs since their inceptionDepartment for Business brought publication and data collection together in 2009 – CE and Glenigan appointed to take forwardAppointed to June 2012 with funding diminishing to zeroFull review of data collection methodology and the data collected and published carried out
3Data collection methodology Key changesSurveys now issued to all projects in Glenigan databaseSurvey issued within a month of a project completing on siteSurveys now issued electronically rather than on paperSeparation of project and organisational surveys
4Data collection methodology What this has meantSurveys issued to more projects has brought in more responsesAbility to provide more granular reporting of dataBy project sizeBy regionBy sectorBy procurement routeSmoother experience for the industry
5Review of the KPIsWhy?Aware that there had been parts of industry were not using the indicators as they were not fit for purposeLack of alignment with other measurement regimesDanger of industry measuring lots of different things in lots of different ways – no ability to map trends or properly benchmark
6Review of the KPIs What we did Brought together a steering group from industry:Richard Saxon CBE Consultancy for the Built EnvironmentMichael Bennett Highways AgencyDavid Bentley GleniganRob Davis GleniganNick Edwards Construction NewsKeith Folwell BISScott Mclew NSCCAndrew Quirke City West Housing TrustAndrew Thomas Centre for Construction InnovationJane Thornback Construction Products AssociationCharles Tincknell Willmott DixonAllan Wilén GleniganJon de Souza Constructing Excellence
7Review of the KPIs Results Reintroduced product manufacturer KPIs and widened M&E measures to all sub-contractorsChanged methods of measurement to convert as many as possible from being subjective to objectiveIntroduced a small number of new measuresRemoved indicators not valued by the sector
8Review of the KPIs New KPIs – Waste to Landfill To go alongside existing waste produced KPI% material diverted from landfillBoth indicators now can be filtered for just:DemolitionConstructionBoth
9Review of the KPIs New KPIs – Responsible Sourcing Part of Strategy for Sustainable Construction Strategy% of material used secured under schemes that are recognised for responsible sourcing
10Review of the KPIs New KPIs – Organisational Carbon Performance To assist companies in their reporting against the Global Reporting InitiativeMeasures of:Carbon emissions from corporate travelEmissions from corporate offices
11Review of the KPIs New KPIs – Project Safety Company safety KPI already existsProject-based Accident Incidence Rate (reportable accidents per 100,000 man hours)
12Review of the KPIs New KPIs – Apprentices Many in the sector had already requested a KPI be developed to measure use of apprenticesApprentice days x £100,000 project spend
13Review of the KPIs New KPIs – Staff Leaving Organisation To work alongside existing ‘Staff Turnover’ measure which calculates churn
14Review of the KPIsNew data for comparison – BREEAM, Code for Sustainable Homes, BIMThree new positional questions to enable more opportunities for performance comparisonWhat BREEAM level did the project achieve?What Code level did the project achieve?Do you think that the project used Building Information Modelling?
15Review of the KPIs Amended KPIs – Energy Use on Site Existing KPI was being tweaked by individual contractors and so no benchmarking possible. Developed in partnership with Strategic Forum for ConstructionNew measure in line with ENCORD protocol and Global Reporting Initiative. Download new protocol from here:
16Review of the KPIs Amended KPIs – Equality and Diversity Replaces existing subjective measure of project performance as rated by client. Developed in partnership with EHRC.Now objective measures of level of employment and level of senior representation within businesses across the following under-represented groups in our sector:WomenBlack and minority ethnic peopleDisabled peopleThose aged 25 and underThose aged 55 and over
17Review of the KPIs Removed KPIs Range of indicators not valued or used by the sector including:Actual project costActual project timeSubjective biodiversity indicatorSubjective general environmental indicatorsSelection of questions that did not contribute to KPIs!
18Review of the KPIs What comes next? Post-project review indicators (surveys sent two years after completion)Actual outturn costPredictability of energy usePredictability of water usePredictability of operational and maintenance costsLevel of post-project capital cost requirementLocal labour KPIAnything else?
19Government Construction Strategy Data and Benchmarking Working Group – measuring the 20%Supplier Relationship Working Group – related to KPIsKPIs are one tool that Government may employ to ensure that they are getting best value from their construction spend
21Overall KPI score – why? Our industry loves a score! Considerate Constructors’BREEAMCode for Sustainable HomesEncouraging improvementHelp companies understand where they may be weakIdentifying top performers – case studies
22Overall KPI score - howDeveloped with input from a major client and contractorAligned with the Construction CommitmentsApproval from the Department for Business to exploreScoring methods for both projects and organisationsAuditing on projects to verify scoresData will need to be input into the CE KPI Engine to generate a score
23Overall KPI score - projects WeightingWasteEnergy use - serviceWater - serviceHealth and safety 15Apprentice hoursConsiderate Constructors Scheme 10Predictability - cost 15Predictability - time 15Client satisfaction - service 10Subcontractor satisfaction with payment 7Client satisfaction - product 10___100
24Overall KPI score - organisations WeightingCarbonHealth and safety 15Equality and DiversityStaff turnoverTrainingEmployee satisfactionQualifications and skillsInvestors in PeopleProfitabilityAverage of project scores 50___100
25Workshop Do you think the overall KPI score is a good idea? What would you do to change the way it is calculated?
27The challenge How to maintain the KPIs How to ensure their independenceHow to ensure that data remains anonymousHow to ensure that the data remains reflective of the performance of the industry as a wholeHow to make sure what is generated can help drive improvement
28Company reportingReport comparing a company’s performance to that of named competitorsWould show KPI performance in a league tableCompetitors would not be named in the reportCould be generic or focussed on particular types of KPICould be combined with Glenigan bidding report
29AuditingWork with a project team or organisation to provide an audit of KPI scoresAdvice on how to improve KPI data collection processesPost-project?
30AwardsInvite the top scorers to put themselves forward for an annual set of AwardsAward per section of the Construction Commitments:Commitment to peopleSustainabilityHealth and safetyProcurement and integrationDesign qualityClient leadership
31Best of ListsOpportunity to publish lists of the top projects monthly and organisations annuallyConstruction News identified as a media partnerWould seek approval from each company before they were included on such a listNo plans to publish a full league table
32More delivery of existing services TrainingIn companyOne to many sessions (KPI Masterclasses)KPI Engine system for reports and benchmarkingBenchmarking clubs
33Workshop Would your organisation use any of the services described? What other performance measurement activities would you like from Constructing Excellence?