How can you align project performance metrics with business objectives in construction?

1 Understand the business objectives

Before you can align project performance metrics with business objectives, you need to understand what those objectives are and how they relate to the project scope, schedule, budget, and quality. Business objectives are the desired outcomes or benefits that the project aims to deliver to the project owner and stakeholders. They can be strategic, operational, financial, or social, depending on the nature and purpose of the project. For example, a business objective for a residential construction project could be to increase the market value of the property, while a business objective for a public infrastructure project could be to improve the safety and accessibility of the community.

3 Define clear and realistic targets

After you have chosen the project performance metrics, you need to define clear and realistic targets for each metric. Targets are the specific values or ranges that indicate the desired level of performance or the acceptable deviation from the baseline or plan. Targets should be based on the business objectives, the project scope, the available resources, and the external factors that may affect the project performance. For example, a clear and realistic target for a residential construction project could be to reduce the defects or rework by 10% compared to the industry average, while a clear and realistic target for a public infrastructure project could be to serve at least 80% of the intended users or beneficiaries.

4 Communicate and align with stakeholders

Finally, you need to communicate and align the project performance metrics and targets with the relevant stakeholders, such as the project owner, the project team, the contractors, the suppliers, and the end-users. Communication and alignment are crucial for ensuring that everyone understands and agrees on the expectations, responsibilities, and incentives for achieving the project performance metrics and business objectives. Communication and alignment can be done through various methods, such as meetings, reports, dashboards, or feedback mechanisms. For example, a communication and alignment method for a residential construction project could be to share regular progress reports and quality inspections with the project owner, while a communication and alignment method for a public infrastructure project could be to conduct surveys and consultations with the end-users.