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Key Performance Indicators

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Key Performance Indicator (KPI) Research Findings

The VDC Scorecard research team carried out an extensive analysis using 146 VDC Scorecard evaluations, to understand industry trends and key performance indicators related to VDC performance. Methodologies used to analyse data include Spearman’s rank correlation test, t-contrast test of group means and Cluster analysis. The most important findings of this research are:

  • Tracking and monitoring targets: Planning objectives can be broadly classified into 7 major categories by their purposes: Cost performance, Schedule performance, Safety, Project delivery, Communication, VDC management, and Facilities management. Previous workshop participants ranked the importance of setting objectives in each of the 7 categories. The diagram below shows the inconsistencies between industry requirements and practice. Results from the VDC Scorecard also indicate that AEC projects rarely have objectives in Safety or VDC Management.


  • Trends by year: Number of Cost, Communication, Schedule, and Project Delivery objectives established by AEC projects are increasing. But number of established Safety, VDC Management, and Facility Management objectives did not show significant increase by year.



  • Owner involvement also pushes for more formalized VDC among project participants and stakeholders.

Innovation Performance Indicators

In light of the increasing trends in innovation investment and focus in the construction industry, a customized set of innovation performance indicators are established through integrating exisiting measures with experts' opinions. Details of how this set of indicators is explained in the article: Innovation Performance Indicators for Architecture, Engineering, and Construction Organization.

The 9 innovation indicators established for the construction industry can be found in the table below:





Creativity of Employees

Creativity of Employees describes the creativity of employees when coming to solving problems faced in their work process, and how willing they are to share their new ideas with the organization.


Innovation Process

Innovation Process describes the system within the organization that supports innovation, including how the system helps incentivize idea generation, implementation, the flow of the new ideas from generation to implementation (or even commercialization), etc.



Durability describes how “durable” the value of the innovation will be in the market—how resilient this innovation will be to change.


Ideas & Knowledge

Ideas & Knowledge includes the organizations' idea pool and how knowledge transfers between communities and groups.



Engagement describes the engagement level of employees in implementing innovation. This includes how engaged employees are in generating new ideas, implementing the new idea in projects, etc. This engagement is also hindered by other factors, which will be included in this indicator, such as the organization’s culture.


Strategic Alignment

Strategic Alignment includes aligning organizational policies/ and strategies that promote and manage innovation, management style, organization structure, etc.


Return on Investment (ROI)

ROI describes the measurement of the return on investment of the innovations. In general, measuring the enhancement in performance resulted from the idea, such as project satisfaction, cost, time, quality, etc. In other words, the performance changed led by the innovations. Customers’ satisfaction is included.



Impact measures the “soft” impacts of innovations, such as their effects on organizations’ image, competitiveness in the industry, etc.


Quality of New Ideas

Quality of Ideas includes the measurement of the applicability, scalability, and other aspects, representing the value of the ideas.