Research Journal of The University of Zagreb, Faculty of Civil Engineering

Organization, Technology & Management in Construction: An International Journal
ISSN 1847-5450 print / ISSN 1847-6228 online
udc 62:658(05)

Abstracting/Indexing: The papers published in Organization, Technology & Management in Construction: An international Journal are abstracted/indexed by: EBSCO, INSPEC, ProQuest Science Journals

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2.Mladen Vukomanović, Mladen Radujković, Maja-Marija Nahod:

Leading, lagging and perceptive performance measures in the construction industry



Poor performance management is one of the main reasons for such low image that the construction industry has in the society. It is percieved as the worst, ineffective, inefficient… Even though Key Performance
Indicators (KPI) should be at the heart of every performance system, many organizations do not acknowledge their importance and thus are measuring the right things wrong and vice versa. This paper elaborates distinction among three types of KPIs: leading, lagging and perceptive, and explains their role in the performance measuring process within the construction industry. Even though many authors emphasised the importance of implementing KPIs, literature review showed that world’s practice still does not recognize the distinction. Furthermore, survey taken across Croatian construction industry, showed that: 90% of proffesionals understand KPIs’ importance, 71% used some kind of performance indicators, 63% used KPIs for internal benchmarking, 43% showed high interest in such systems, but only
28% understood above-mentioned distinction. The survey also showed that even though the managers percive all three types of KPIs important, they are still not implementing them in the practice. The paper concludes that the use of all three types of indicators is the prerequisite for benchamarking, strategy alignment and realistic goal setting.


performance measures, KPI, KPO, PerM, management, construction, survey