Ankrah, N.A. and Proverbs, D. (2005) "A Framework For Measuring Construction Project Performance
Ankrah, N.A. and Proverbs, D. (2005) "A Framework For Measuring Construction Project Performance
net/publication/273370651
Critical Criteria on Client and Customer Satisfaction for the Issue of Performance
Measurement
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Abstract: Successful performance measurement criteria cannot be limited to meeting just the three traditional criteria. Satisfaction is a
subjective and critical measurement for the stakeholder performance, but it has rarely been used as a criterion for the performance
measurement of project stakeholders. The purpose of this paper is to establish the client and customer satisfaction criteria as the two
key stakeholders in construction project for the issue of performance measurement based on the reviewed data. The methodology of this
study is based on comprehensive literature review of performance measurements for client and customer whereby the data were analyzed,
using the metrics which are the aggregate number of each customer and client-satisfaction criteria occurring in previous study. From the
metric analysis, the common factors for customer and client satisfaction were ranked. From the analysis, it can be concluded that expectation
and perception are the two common critical satisfaction criteria for client and customer that must be considered where the satisfaction is
required. DOI: 10.1061/(ASCE)ME.1943-5479.0000183. © 2014 American Society of Civil Engineers.
Author keywords: Success criteria; Performance measurement; Satisfaction criteria.
The determination of a project’s success remains somewhat of a categorized project success into the micro and macro level where
mystery (Pinto and Slevin 1988) because despite several studies, the micro viewpoint was related to the project or company goals
researchers have yet to come to an agreement on what are the such as time, cost, performance, quality, and safety while the macro
key factors that determine a project’s success (Brown and Adams viewpoint dealt with the users and stakeholders’ satisfaction.
2000; Dainty et al. 2003). To date, there are no consistent interpre- Meanwhile, Chan and Chan (2004) identified two groups of key
tations or standardized definitions of the term project success performance indicators for a construction project’s success: the
(Baccarini 1999). Nevertheless, Chua et al. (1999) had proposed first group was objective measures which included time, cost,
safety, and environment; and the second group consisted of
a hierarchical model that considered budget, schedule, and quality
subjective measures that comprised of quality, functionality, and
as the inputs that would contribute to a construction project’s
satisfaction of different project participants. Table 2 is the
success. At the top of the hierarchy are the four main project as-
collection of various studies conducted between 1981 and 2011
pects, namely contractual arrangements, project characteristics,
indicating the importance of stakeholder-satisfaction criteria for
project participants, and interactive process, jointly called the
project success.
CSFs. This term was first coined by Rockart (1982) and is defined
as those factors that can predict the success of a project (Sanvido
et al. 1992). Boynton and Zmud (1984) defined CSFs as those few
Performance Measurement in Stakeholder
things that must go well to ensure the success of a manager and an
Success Criteria
organization. The study done by Yu et al. (2006) showed that the
similar CSFs can be used for traditional construction success cri- The relationship amongst different contracting parties in the
teria. Like Chua et al. (1999), Yu et al. (2006) grouped the CSFs construction industry is complex, as it involves many project
into project-related factors, human-related factors, process-related stakeholders such as owners, consultants, and contractors. In a
factors, and input- and output-related factors. These factors have study of relationships between the stakeholders’ performance
been introduced earlier as the four major independent variables. and project success, Wang and Huang (2006) proved that the
Other researchers, on the other hand, focused more on the subcri- owner, supervisor, and contractor’s performances are significantly
teria of these main CSFs, for example Chan et al. (2001), Nguyen related to the success of a project. A performance measurement at
et al. (2004), and Fortune and White (2006). From various litera- the stakeholder level is used for measuring the overall project and
tures, it seems that some researchers have referred these sub-CSFs stakeholders’ individual performances as well as monitoring the
merely as CSFs as well. Therefore, it can also be concluded that project’s progress. In a study concerning performance measurement
CSF indicates any success factor or criterion that can determine criteria for construction project managers, Dainty et al. (2003) iden-
a project’s success. This is the reason that has led to little agreement tified the following criteria as the important ones to measure the
to form standard CSFs and many researchers continue to stress the project’s performance: team building; leadership; decision-making;
need to establish related issues in this area (Toor and Ogunlana mutuality and approachability; honesty and integrity; communica-
2008). Table 1 is the collection of various studies conducted tion; learning, understanding, and application; and self-efficacy and
between 1973 and 2010 on the various types of CSFs which were external relations. Ahmed and Kangari (1995), on the other hand,
highlighted on the study of Chua et al. (1999). identified six client-satisfaction factors; notably time, cost, quality,
client orientation, communication skills, and response to com- financial result, while Maloney (1990) regards profitability as
plaints; to conduct a survey for analyzing the client-satisfaction revenues generated by firm exceeding the cost of producing the
factors in the construction industry. They concluded that these revenues.
six factors are equally important. Tang et al. (2003) outlined eight In spite of the multidimensional nature of a project, cost and
factors (expressed in 29 indicators) to evaluate the overall client schedule performance measures are still among the most exten-
satisfaction in engineering consulting firms in Hong Kong. The sively used methods to evaluate a project’s performance by many
factors were: timeliness of service, professionalism of service, organizations (Project Management Institute 2004). Many organi-
competitiveness of service, degree of innovation, quality of design, zations do not clearly consider key input variables that add value
completeness of other considerations, availability of support for for the client (Farris et al. 2006). Here is some literature that
client, and supervision at implementation. In addition, in the study considered the satisfaction for stakeholder performance evaluation.
done by Leung et al. (2004a), 15 established and verified hypoth- Forsythe (2007) presented a conceptual framework describing
eses were used to measure participant satisfaction (inclusive of how customers potentially evaluate satisfaction in residential con-
client satisfaction) in the construction-management process. struction projects. It has been identified that the purchase decision
The study showed that it is the management mechanisms (e.g., com- process feeds into both prepurchase expectations and perceptions
munication, participation, and commitment) rather than particular during/after construction. This means that from the time when the
project goals (e.g., time, cost, and quality) that directly influence project is initiated until it is fully completed and handed over to the
participant satisfaction. Leung et al. (2004b) used web-based owner, a change in the way the service quality, price, and project
measurement and monitoring systems in which the project’s quality influence satisfaction can be observed. Yang and Peng
performance were measured by people, cost, time, quality, safety (2008) developed a novel customer-satisfaction evaluation model
and health, environment, client satisfaction, and communication. for construction project management (CPM) services in Taiwan.
For each of the performance-measurement categories, the corre- This model uses a questionnaire-based survey and statistical
sponding performance indicators and measuring methods were analysis to carry out the relevant evaluations, and it has become
established. The monitoring process was automated through the a good reference for evaluating and assessing CPM performance.
use of the World Wide Web and database technology; it was pre- In addition, Karna et al. (2009) put forth a tested model and frame-
pared to assist the project managers in better monitoring practices. work used to describe the structure and factors influencing
From the studies that focused on establishing relevant stake- customer satisfaction in the construction industry. It showed that
holders’ satisfactory measurements, it has been shown that consid- the interdependencies and relationships between the factors are
ering common satisfaction criteria can contribute to a project’s different. The model developed can also assist in perceiving various
success. These included expectation, competency, perception, direct and indirect relationships between the factors.
profitability, commitment, communication, and dispute reduction.
Expectation is defined as desires or wants of the consumers—what
they feel a service provider should offer (Lewis and Mitchell 1990). Research Methodology
Perception is defined as the stakeholder’s levels of awareness for
the project success. Competency is a technical ability of the stake- This review was conducted through several phases, namely litera-
holders that can be evaluated based on the plant and equipment ture review, data collection, data analysis, discussion, and conclu-
used and the personnel’s experience and ability to handle the sion. A literature review was conducted encompassing all means
project (Hatush and Skitmore 1997). Commitment, communica- available to obtain the widest range of the relevant information
tion, and dispute reduction concern the interpersonal relationship from books, journals, and websites related to performance meas-
skills of the stakeholders. Commitment is defined as “the totality urement for stakeholders. The journals, especially those in the
of normative pressure to act in a way which meets organizational following construction-management journals, were reviewed.
goals and interests” (Wiener 1982, p. 1). Communication is a cri- The top four referred journals with the number of references in this
terion that supports the improvement of confident relationship with study are as follows, with the number of articles from each in paren-
the stakeholder community and can also be used to influence atti- theses: International Journal of Project Management (23), Journal
tudes and behaviors within the broader environment. Dispute re- of Construction Engineering and Management (13), Journal of
duction refers to the ability to minimize the frequency of Management in Engineering (13) and Construction Management
dispute occurrence in the construction industry. Profitability has and Economics (11).
been defined in different ways by many researchers. According The data collection process was done in the following manner:
to Parfitt and Sanvido (1993), profitability measures the financial Firstly, the titles, keywords, and abstracts were scanned with the
success of the project. Norris (1990) measures profit as the incre- related keywords (i.e., SC, performance measurement, and satisfac-
ment by which revenues exceed costs. Chan et al. (2002) measures tion criteria). Secondly, the abstracts of related papers were then
profitability in the post-construction phase when the final account is read through to filter out the less-relevant papers. Finally, the study
settled and both the paying and the paid parties can be sure of the was scaled down to focus on papers published from 1973 to 2011.
and quality are more or less important than other criteria. From made according to the common high-ranking criteria. Nevertheless,
these analyses, a conclusion was drawn. The flow chart for the both pie charts showed that dispute reduction was the least-
research methodology section is shown in Fig. 1. interesting factor.
This study also used the Kendall’s coefficient of concordance
test to further investigate the agreement in criteria ranking.
Analysis and Discussion Kendall’s W (also known as Kendall’s coefficient of concordance)
is a non-parametric statistic which is also a normalization of the
A cross tabulation (Tables 3 and 4) was done to emphasize the Friedman statistical testcommonlyused for assessing agreement
factors related to satisfaction principles for two key stakeholders, among rankers. Kendall’s W ranges from 0 (no agreement) to 1
and for every stakeholder the preferences between these features (complete agreement). If W is 1, it means all the survey respondents
are recognized and judged with one another. have been unanimous and each respondent has assigned the same
Under the full citation of the customer satisfaction, which is order to the list of objects or concerns. If W is 0, it means there is
highlighted in Table 3, the highest-ranked cause belongs to expect- no overall trend of agreement among the respondents and their
ation, in contrast with other principles by 14 out of 19 authors.
responses may be regarded as essentially random. Intermediate
Profitability, as mentioned by 13 authors, was the next highest
values of W indicate a greater or lesser degree of unanimity
factor of satisfaction. Competency and perception are ranked third
among the various respondents (Kendall and Smith 1939). Table 5
with 10 citations. Communication is ranked fourth with seven
citations in the aforementioned table, and the least influential
factors were commitment and dispute reduction, which were cited
by five and four authors, respectively.
Expectation for client satisfaction was ranked highest by 12 out
of 14 authors considered. Communication was ranked second from
10 out of 14 citations. Perception was ranked third as cited by seven
authors. Profitability was ranked fourth (five citations), and the
least significant factors were commitment, dispute reduction (four
citations each), and competency (two citations).
For better interpretation of each criterion related to both groups
of stakeholders, this study employed a pie chart. In this way, the
total aggregate of client satisfaction or customer satisfaction cat-
egory was determined through each total criteria citation by the
authors. This was done to highlight the weight of each criterion.
The weight is different when one author highlighted one criterion
as a satisfaction criterion and another author emphasised up to
seven criteria in their study. Using the pie chart, the percentage
weight of each criterion could be indicated and easily compared.
As can be seen in Fig. 2, for both stakeholders, the expectation
factor was weighted 22 and 27% for customer and client satisfac-
tion, respectively. Perception had the same weight (16%) in both
pie charts. However, it seemed that communication was an impor-
tant factor to evaluate clients’ satisfaction, but not for the custom-
ers. On the contrary, profitability seemed to be an important factor
to evaluate customer’s satisfaction (21%), whereas it was less
Fig. 2. Priorities for client and customer satisfaction criteria
important for client’s satisfaction (11%). These comparisons were
12 × S
W¼ ð4Þ
m2 ðn3− nÞ
R̄ ¼ 0.5 2ð7 þ 1Þ ¼ 8
S ¼ 82
W ¼ ð12 82Þ=4ð73 − 7Þ
Fig. 3. Similarities and differences for the client and customer W ¼ 0.732
satisfaction criteria
As can be seen, W was very close to 1. Thus it was concluded
that both groups had been unanimous and each group had assigned
shows the client and customer-satisfaction criteria ranked accord- almost the same ranking to the list of satisfaction criteria. This was
ing to this statistical test. further confirmed with the morphological box test (Fig. 3). The
The criterion was the rank ri;j by respondent number j, where morphological box test was used to show the similarities and differ-
there are in total n objects and m respondents. Then the total rank ences between the client and customer-satisfaction criteria. As can
(Ri ) given to criterion i is be seen in Fig. 3, among the seven criteria for customer and client
X
m
satisfaction, expectation, perception, and commitment were simi-
Ri ¼ ðri;j Þ ð1Þ larly ranked. Communication and competency were the two criteria
i¼1
that had significant differences in ranking.
and the mean value of these total ranks (R̄) is Based on the analysis of this study, it seems that to achieve
1 higher satisfaction level, more consideration must be given in
R̄ ¼ mðn þ 1Þ ð2Þ making sure that the project meets the clients and customers’
2
expectations and perceptions. Nevertheless, further study must
The sum of squared deviations, S, is defined
be conducted more extensively on the subcriteria related to
X
n the evaluation of clients and customers’ expectation and perception
S¼ ðRi − R̄Þ2 ð3Þ level.
i¼1 As can be seen in Tables 3 and 4, different stakeholders are
and then Kendall’s W is defined as investigated for client and customer satisfaction. Customer
Fig. 4. Respondent’s perspectives on (a) customer satisfaction criteria; (b) client satisfaction criteria
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