Brief analysis

KPI-based management systems in the construction industry

The key to efficient corporate management

In the construction industry - whether for construction suppliers, wholesalers or general contractors - targeted corporate management is crucial in order to remain competitive in the long term. KPI-based management systems, which help to base operational and strategic decisions on solid data, are an essential building block for this. Read this article to find out how customised KPI systems can increase the efficiency and effectiveness of your business processes, uncover bottlenecks and ensure greater transparency.

Why KPIs are essential for corporate management
KPIs (Key Performance Indicators) are central key figures that measure the performance of your company in various areas. Contrary to what is often assumed, KPIs do not only refer to key financial figures. They cover a wide range of areas, including sales, processes, quality and much more. By integrating sales KPIs and process KPIs, you get a comprehensive picture of your company's performance and can identify optimisation potential in a targeted manner.
 
A widespread problem in many companies in the construction industry is the flood of data and reports. Too many reports and too little focus on the relevant KPIs often lead to a lack of transparency in corporate management. A well-thought-out KPI strategy helps you to keep an eye on the essentials and make focussed decisions.

Greater transparency and increased efficiency through KPIs
A customised KPI system offers your company clear advantages:

  • Greater transparency: the visualisation and regular monitoring of KPIs gives you clear insights into all relevant business areas.
  • Recognition of bottlenecks: KPIs help to recognise bottlenecks and inefficiencies in processes at an early stage before they become a problem.
  • Recognising conflicts and challenges: By analysing KPI data, internal conflicts of objectives or challenges can also be better identified and resolved.
With a well-structured KPI-based management system, you not only improve transparency, but also create the basis for a sustainable increase in efficiency and effectiveness.

From creation to implementation: the path to a KPI-based management system
The successful implementation of a KPI-based system requires a holistic approach that extends from creation to realisation. The following steps are crucial:

  1. Creating a customised KPI system: Firstly, it is important to identify the KPIs that are relevant to your company. These can be sales KPIs such as the conversion rate or the average order value, but also process KPIs such as throughput times or error rates in production. It is important that the KPIs are aligned with your strategic goals.
  2. Transfer to management processes: KPIs must not be viewed in isolation. They must be integrated into ongoing management processes and monitored regularly. Modern data analysis tools, such as Power BI, can also be used here to clearly visualise the KPIs and integrate them into your decision-making processes.
  3. Involve employees: The introduction of a KPI system should not only take place at management level. It is crucial to actively involve your employees in the process. Transparency and communication are key factors in ensuring acceptance and commitment.
Challenge: Too many reports and a lack of focus
Many companies already have a large number of reports, but these often only offer limited added value as they are not focussed on the decisive KPIs. A structured KPI system helps to reduce the flood of information and focus on the really relevant key figures. This makes corporate management much more precise and efficient.

Conclusion: Increase efficiency with customised KPI systems
A KPI-based management system is more than just a set of key figures. It is a strategic tool that helps you to monitor your business processes, recognise bottlenecks and challenges at an early stage and take targeted measures to increase efficiency and effectiveness.

By integrating the KPIs into your management processes, involving your employees and focussing on the right key figures, you create a solid foundation for long-term success. A customised KPI system not only gives you better control over your business processes, but also provides the transparency you need to remain agile and flexible in a dynamic market environment.
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Your contact person

Christoph Blepp
Christoph BleppManaging Partner

Christoph is a founding partner of S&B Strategy GmbH and is responsible for strategy development and implementation.

He has 17 years of experience as an officer, strategy consultant and managing director, gained at PwC Deals Strategy, smaller consultancies and the German Armed Forces. He studied Political Science and Economics at the University of the German Armed Forces in Munich and completed an MBA at WFI.