Construction Company KPIs and Strategy Scorecard

The construction industry is expanding due to the growing demand for speed and quality in building projects. This strategy scorecard template includes examples of generic goals for a construction company, quantified with leading and lagging KPIs.

The template is available in BSC Designer. Customize it according to the current challenges of your organization.

Example of a Strategy Map

To create a strategy map, we followed the classical K&N Balanced Scorecard methodology, which involves the following key principles:

• The goals are presented within four perspectives.
• There are cause-and-effect connections between the goals.
• The ‘drivers‘ of the strategy are presented in the Internal and Learning perspectives.
• The ‘outcomes‘ of the strategy are presented in the Customer and Finance perspectives.

Note: to create a strategy map, we added the relevant goals, indicators, and initiatives to the KPIs tab; the software automatically generated the visual map.

An example of a strategy map for a construction company. Source: Construction Company KPIs.

Risk Definition

One of the best practices in the strategic planning process is to clearly define the risks associated with the goals. In this scorecard template, risks have been outlined for certain goals.

Take, for example, the goal “Enhance Safety Architecture” in the “Learning and Growth” perspective, where the risk “Lack of Employee Engagement” has been identified.

An example of a risk with an aligned Key Risk Indicator (KRI). Source: Construction Company KPIs.

To quantify this risk, we have specified “Continuous Education on Safety” as an aligned Key Performance Indicator (KPI). In practical use, this risk needs to be defined with more details, including a risk mitigation plan tailored to a specific company, as well as a relevant budget and timeline.

Example of a Dashboard

The template’s dashboard includes:

• A time diagram illustrating the evolution of client satisfaction over time.
• Two gauge diagrams to emphasize the improvement of specific metrics.
• A diagram visualizing high-level goals, their progress, and dynamics.
• Diagrams listing initiatives and risks.

An example of a strategy dashboard for a construction company. Source: Construction Company KPIs.

Setup of KPIs

In the template, we employed the automation functions of the software to configure Key Performance Indicators (KPIs) according to the requirements of the construction scorecard.

Weighted index - enhance safety architecture. Source: Construction Company KPIs.

• Weights were assigned to the KPIs associated with the “Enhance Safety Architecture” goal, reflecting their respective importance and impact on the overarching objective.
• For certain indicators, such as “Time spent on obtaining permits,” the optimization function was set to “minimization.” In this configuration, the performance of the indicator improves as the current value decreases.
• The scorecard incorporates both leading and lagging indicators. For instance, consider the “Promote Innovation Culture” goal in the Learning perspective. The “Training Participation Rate” serves as a leading indicator, quantifying success factors related to goal achievement, while the “Innovation Adoption Rate” works as a lagging indicator, quantifying expected outcomes.

When using the template:

• Adapt goals and KPIs to suit the specific needs of your organization.
• Adjust the update interval of the KPIs (monthly, quarterly, etc.).
• Track KPIs over time by regularly updating their current values and targets.

We offer a series of video tutorials explaining the implementation process using BSC Designer.

Construction KPIs – Full List

Here is a full list of KPIs generated from the original construction scorecard.

Construction Company KPIs

Finance

Increase Financial Sustainability

Net Profit Margin

Cost Variance

Enhance Client Satisfaction

Strengthen Stakeholder Relationships

Customer

Enhance Client Satisfaction

Client Satisfaction Score

Enhance Project Quality

Strengthen Stakeholder Relationships

Stakeholder Engagement Score

Enhance Safety Protocols

Enhance Supply Chain Management

Diversify Revenue Streams

Implement Sustainable Practices

Internal Business Processes

Enhance Project Quality

Quality Index

Project Delivery Time

Transparency in Project Reporting

Develop Skilled Workforce

Time spent on obtaining permits

Enhance Safety Protocols

Lost Time Injury Rate (LTIR)

Enhance Safety Architecture

Enhance Supply Chain Management

Supply Chain Efficiency

Integrated Digital Supply Chain Ecosystem

Diversify Revenue Streams

Market Penetration Rate

Promote Diversity and Inclusion

Implement Sustainable Practices

Sustainability Rating

Promote Innovation Culture

Transparency in sustainability reporting

Learning and Growth

Develop Skilled Workforce

Skill Proficiency Index

% of employees in leadership programs

Enhance Safety Architecture

Continuous Education on Safety Standards

Technology Integration for Safety Monitoring

Physical Safety Improvements

Integrated Digital Supply Chain Ecosystem

% of innovative features or technologies integrated

Compliance with regulatory and industry standards

% of end-to-end supply chain visibility

Promote Diversity and Inclusion

Diversity Index

Promote Innovation Culture

Innovation Adoption Rate

Training Participation Rate

Next Steps in Strategy Development

It is recommended to align the presented strategy scorecards with other relevant KPI and strategy scorecards, depending on which parts of the strategy need to be developed in detail.

Relevant scorecards (available in BSC Designer as templates) include:

• Safety Scorecard
• Compliance Management Scorecard
• Procurement Scorecard
• Digital Transformation Scorecard
• Quality Scorecard
• Innovation Scorecard

Here, you will find some guidance on how to align scorecards.

What's next?

More About Strategic Planning