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.

An example of a strategy map for construction company
An example of strategy dashboard for construction company.
Weighted index - enhance safety architecture

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.

An example of a strategy map for a construction company. Source: View Construction Company KPIs online in BSC Designer 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 Risk icon in BSC Designer “Lack of Employee Engagement” has been identified.

An example of risk with aligned Key Risk Indicator

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

An example of a strategy dashboard for a construction company. Source: View Construction Company KPIs online in BSC Designer 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

Weighted index - enhance safety architecture. Source: View Construction Company KPIs online in BSC Designer 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
KPI Net Profit Margin
KPI Cost Variance
KPI Enhance Client Satisfaction
KPI Strengthen Stakeholder Relationships
Customer
Enhance Client Satisfaction
KPI Client Satisfaction Score
KPI Enhance Project Quality
Strengthen Stakeholder Relationships
KPI Stakeholder Engagement Score
KPI Enhance Safety Protocols
KPI Enhance Supply Chain Management
KPI Diversify Revenue Streams
KPI Implement Sustainable Practices
Internal Business Processes
Enhance Project Quality
KPI Quality Index
KPI Project Delivery Time
KPI Transparency in Project Reporting
KPI Develop Skilled Workforce
KPI Time spent on obtaining permits
Enhance Safety Protocols
KPI Lost Time Injury Rate (LTIR)
KPI Enhance Safety Architecture
Enhance Supply Chain Management
KPI Supply Chain Efficiency
KPI Integrated Digital Supply Chain Ecosystem
Diversify Revenue Streams
KPI Market Penetration Rate
KPI Promote Diversity and Inclusion
Implement Sustainable Practices
KPI Sustainability Rating
KPI Promote Innovation Culture
KPI Transparency in sustainability reporting
Learning and Growth
Develop Skilled Workforce
KPI Skill Proficiency Index
KPI % of employees in leadership programs
Enhance Safety Architecture
KPI Continuous Education on Safety Standards
KPI Technology Integration for Safety Monitoring
KPI Physical Safety Improvements
Integrated Digital Supply Chain Ecosystem
KPI % of innovative features or technologies integrated
KPI Compliance with regulatory and industry standards
KPI % of end-to-end supply chain visibility
Promote Diversity and Inclusion
KPI Diversity Index
Promote Innovation Culture
KPI Innovation Adoption Rate
KPI 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:

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

What's next?

More About Strategic Planning

Strategic Planning Process:
BSC Designer software will support your team on all steps of strategic planning.
Examples of the Balanced Scorecard:
Examples of the Balanced Scorecard with KPIs
Strategy Maps:
8 Steps to Create a Strategy Map By BSC Designer
Cite as: BSC Designer, "Construction Company KPIs and Strategy Scorecard," BSC Designer, January 25, 2024, https://bscdesigner.com/construction-company.htm.