K is for...

Key Performance Indicators:

In today’s business and commercial world the monitoring and measuring of activity becomes ever more relevant in establishing agreed levels and quality of service delivery, related costs and value for money, and the continuing relevance of the delivery, specification and quality.

A long established manner of enabling this is to establish key performance indicators (KPIs).  KPIs are primarily used by organisations to evaluate their success or the success of a specific activity in which it is engaged.  Choosing the right KPI, by understanding what is important to the organisation and determining what therefore will enable relevant assessment to be made is fundamental to the process.  Assessment and analysis of the results can lead to the development of improvements to process and procedure, potentially to cost saving and initiatives to develop other performance improvements.

KPIs in the property and construction industries have been developed for many applications.  In the construction industry annual assessment of a wide range of standard KPIs has taken place for over 10 years.  These indicators are published in the annual UK Industry Performance Report.  The indicators are wide ranging through subjects as diverse as economic, safety and environmental impact and are designed to enable the improvement of performance, as well as the ability of companies to benchmark their individual company performance against industry standards.

The Building Research Establishment (BRE) has a number of programmes in the application of excellence in construction, refurbishment and improvement of the built environment, each designed to monitor, manage and improve performance in the application.  These programmes are effectively a form of KPI, enabling the standard of development and build quality to be measured against required guidelines.  Their programme BREEAM (BRE Environmental Assessment Method) provides a comprehensive set of parameters against which the built estate can be measured for the development’s potential impact against environmental and sustainable criteria with differing levels of award able to be achieved.

Combined with benchmarking exercises, KPIs  allow for organisations to assess their own internal performance criteria and also rate that against competitors and the market, the results, hopefully being for continuous performance improvement and achieving better value for money.

James Alexander Consultants can help you identify areas of performance improvement in your asset management and portfolio.  We develop, plan and implement the strategy, leaving you to focus on core activity and opportunity.

eMail us on innovation@jaltd.co.uk or see our contact page for our numbers.  We look forward to speaking with you.