The development of a strategic performance measurement tool for SMEs in the construction industry

Research in strategic performance measurements has focused mostly on large organisations. In the last few years, there has been a widespread adoption and implementation of balanced strategic performance measurements that no longer narrowly focus on financial measurements but include other non-financial measures. Again, such improvements have focused on large organisations. This study aims to assess strategic performance measurement practices in the Small and Medium Enterprises within the construction industry. The Balanced Scorecard is used as a generic measurement framework to ascertain the current strategic performance measurements within this sector. The four perspectives of measurement; namely, financial, customer, internal process and learning and growth are used to determine the generic measurements within the construction industry. These are then used to determine to what the extent Small and Medium Enterprises in the construction industry have adopted the measurements outlined in these four perspectives. The nature and extent of strategic planning and perceived relevance of various sets of balanced measurements were also assessed. A survey was conducted in the form of a questionnaire in order to obtain primary data from a selected sample group. Using qualitative and quantitative techniques, the data was analysed to get a clear picture of current practice. From the results obtained from the respondents in the sample group, it seemed that there was some strategic planning within this sector although the process was mostly unstructured. The results also showed that the owner-manager is still solely responsible for strategic planning with little or no inclusion of other managers or employee