Beyond the iron triangle: Stakeholder perception of key performance indikator (KPIs) in large-scale public sector development projects

Objectives This research has objectives to investigate the perception of the key performance indicator (KPIs) in the context of large construction project in Thailand (Second Bangkok International Airport or Suvarna bhumi Airport). The research attempted to achieve the following objective:
1. The

significance of key performance indicators in perspective of various construction stakeholders (client, consultants, and contractors).

The survey result of this research found that top ranked KPIs are completion on time, under budget,efficiently,safety, and according to spesifications. From this case we can analyze, on large construction projects, respondents are conscious about the iron triangle of construction industry. However, the study findings there is significant concern about effeciency and safety. These result show that the stakeholders are starting to think beyond the traditional measure of project performance. The reseach suggest the new measure of performance on large construction projects. There are three levels on KPIs. First, the core of project performance evaluation which related to time, budget, and qualiy. Secondly, KPIs that support achieveness of the core, which related to safety, effeciency, and effectiveness/precision. Third, qualitative measures of success which related to free from defect/high quality of workmanship, conforms to stakeholders expectations and minimized construction aggravation , disputes, and conflicts. Results in this research gives an overview that perception of some KPIs does differ across various construction stakeholders. This finding is plausible given different vested interest of various stakeholders involved in the project. However, profesionals do not differ significantly in their perception about KPIs across various levels of experience

2. Finding indicate that the traditional measure of the iron triangle (on-time, under budget, and according to spesifications) are no more applicable to measuring performance on large public sector development projects

Research Method Method of the research using literature review and preliminary interviews with academic research and industry experts, a catalog of 9 KPIs was prepared in form of a questionnaire. The research investigation was conducted using a survey towards project manager, deputy project managers, and line manager on the project site. In addition to the questionnaires, face-to-face interviews were also conducted. Demographic respondents divide into; respondents experience in project management, profile of the respondents, educational background of respondents, nationality and native languages of respondents, and type of organization.

Conclusion An important part of project management is performance measurement. Performance measurement criteria vary from project to project. From this research we can conclude other performance indicators such as safety, effeciency, effectiveness, satisfaction of

Results

stakeholders, and reduce conflict and disputes are increasingly becoming important besides the iron triangle. This implies that in large Question : KPI in the Project

project, performance measurement should implement quantitative and qualitative indicators

1. How do you explain the similarities and differences between KPI in the Bangkok Airport Project and similar project in Heathrow Terminal 5 (London)?

The similarities KPI between Bangkok Airport Project and Heathrow Terminal 5, both used indicator minimize construction aggravation, disputes and conflicts as qualitative performance measurement to their project. The differences both of them, in Bangkok Airport Project, the indicator in ranking of KPIs is not become priority (last position). However in Heathrow Terminal 5 has a conscious effort to reduce the possibility of any conflicts of disputes by the client. They prevent the conflicts as much as possible by recognizing and accepting that it took the responsibility for risk. The Heathrow Terminal Project has a integrated risk management approach to prevent the conflicts.

2. What would you think about the CSF (Critical Succes Factor) instead of KPI if it were used in the research?

Critical Succes Factor (CSF) are factors which contribute to achieving success on the project such as effective planning and control, sufficient resources and, clear and detailed written contract, defined goals and competent project manager. Succes factor are the effort made or strategy adopted to achieve the success on project. While KPIs are success criteria to measure the success or failure of the project will be judged, which related to the traditional triangle of completion on time, under budget and according to specification. KPIs are the compilations of data measure, either by quantitave or qualitative data, used to access the performance. So we can define, CSF is an effort to success and the KPI is an indicator of success. If it were used in the research, we can analyze, how effective implementation of CSFs translates into the attainment of desired KPIs. However if the CFS were used instead of KPI in the research, we only analyze the factors that contribute to the success of the project but cant be concluded that the project is successful or not

3. Please give your views of possible results in Indonesia to find other elements of KPI aside from the elements of Iron Triangle of time, quality and cost ! KPI is how to measure the project successfull or not, which have changed through time and moved from the classic iron triangles view of time, cost and quality to a broader framework which include benefits for the stakeholder and user satisfaction. In Indonesia, other factor of KPI beside the iron triangle, particularly related to qualitative indicator should really be included in the evaluation of project performance. The qualitative indicator

such as safety, conforms to stakeholders expectations, minimized construction aggravation, disputes and conlicts, only modest and not become a priority in success of the project. So as we know, a lot of projects in Indonesia as an ongoing project or have already launched many cause problems such as worker safety, environmental issues, or problems with the surrounding community are common.