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GUEST ARTICLE (ii) Customer Perspective (0.22wt.): Comparison of BSC and TQM, IPD, Lean and ISO and Other
INDUSTRY WATCH

excellence models
It is to measure how well the company is meeting the demands
The methods like Total Quality Management (TQM), Integrated
of the customers. A customer perspective helps the company
Project Delivery (IPD), BIM, and the International Standards
to address important concerns of customers and build constant
loyalty in its market segments. It analyses the internal processes
Organisation series (ISO), among several others, are all
operational excellence methods to improve performance at
that ensure customer satisfaction, retention, and acquisition. It is
related to time, cost, quality, performance & service, and cost.
Many times, certain departments may get left out or may have
a limited role to play in the overall scheme of things. The BSC
(iii) Internal Business Perspective (0.22wt.): the functional level.
Identification and improvement of critical internal business on the other hand covers every department/ function/operation
perspectives to improve competitive edge and shareholder in an organization-wide comprehensive and holistic approach.
satisfaction. This is where The Balanced Score Card, scores over other models.
Consider those processes and measure them, that have the This article makes a case for EPC organizations to better their
highest impact on customer satisfaction, profitability, core game not only at the project level but also at the organisational
competencies, financial objectives. level.
A balanced project score card (PSC) of all the company’s
(iv) Growth and Learning Perspectives (0.34): projects can be used to measure performance using project
This is the one that cements all other perspectives. level KPIs that are aggregated to prepare an organizational BSC
They are classified into three categories, namely, employee, for the company.
information systems, and soft aspects that include innovation,
motivation, empowerment, and alignment capabilities. How would the PSC/BSC be generated?
Of the above, innovation is a key driver when competing globally. An attempt at creating the PSC was proposed by Katic and
A company’s ability to innovate, improve and learn determines Bevanda (2010) for construction companies, inspired by the
the company’s value. completeness and robustness of the BSC model studied
For this to happen the long-term infrastructure to support earlier by Amaratunge et al (2001) in the context of facilities
innovation is necessary and most significantly. management, Koprivica et al (2021) and Wongrassamee et al
The gaps in financial, customer, and internal perspectives tend (2003). Without exception, all studies point to the importance of
to be revealed in the capabilities of people, systems, and the BSC for construction companies to improve their strategic
procedures. Refer to the representation in Fig. 2 direction, communicating expectations, and measuring progress
towards agreed objectives.
Financial Perspective
GOALS Measures Targets Initiatives

Customer Perspective Internal Business Perspective
GOALS Measures Targets Initiatives Mission, GOALS Measures Targets Initiatives
Vision,
Strategy

Innovation & Learning Perspective
GOALS Measures Targets Initiatives

Fig. 2 Balanced Score Card representation
Fig. 3 A Balanced Score Card for a construction company
The key to the high performance of companies lies in the term Source: Koprivica, Skondric, Bendic, 2021, Conference
‘balanced’. It is only after knowing the three critical actions Proceedings of “Contemporary achievements in civil engineering
mentioned below that the four perspectives can be balanced. 22-23, Subotica, Serbia
• The financial and non-financial measures As seen in Fig. 3 a construction organisation can manage its
• Internal and external stakeholders internal and processes to achieve customer satisfaction to
• Balance between lag and lead indicators create long term value.
It is important to understand at this point how the BSC Our own study of one of India’s largest international construction
compares to other strategic tools that are popularly used in the companies revealed much the same findings (Shah, Bhansali,
internationalization efforts of an organisation. It is important to and Agarwal, 2012).
bear in mind that construction and engineering firms are project In an extensive literature survey, there was no study in the
based in their inherent nature, unlike manufacturing. Therefore, extant literature in India that pointed to the use of the BSC by
the challenges in implementing typical management models construction contracting firms in India.
are numerous and varied. As this was the case, it was logical use a simulation based on

58 CONSTRUCTION OPPORTUNITIES|JULY 2022