Measuring Success and Leveraging Metrics in Construction Technology

The implementation of construction software is supposed to be an exciting phase of tech adoption, a time when planning, evaluating and collaborating begins to yield results. However, realizing the excitement and potential of a new tool is contingent on being able to measure whether it’s making a difference.  

At its most basic, measuring success is about confirming that construction software is functioning properly, but it goes beyond that as well. This phase is also about analyzing performance in order to unlock the true potential of a tool, extract maximum value from investments and continuously improve the lives of team members. 

This article explores how to measure the success and effectiveness of construction tech software, and is part of a series about adopting new construction technology and building a tech ecosystem.

The Basics of Measuring Success

The process of measuring a technology’s success or effectiveness usually involves metrics or key performance indicators (KPIs) that reveal how a tool is impacting existing workflows, systems or the pursuit of business objectives. This data can be used to inform decision making, build an effective tech ecosystem and improve business and project outcomes. 

How to measure the effectiveness of a technology depends on a number of variables, including the nature of the tool, the objectives for its use and the people using it.

For example, a point solution is a specialized software application that performs a particular task or function. Measuring performance of a point solution is usually focused on determining whether the tool is performing its respective tasks, how it’s impacting workflows and if it could be used more widely by other teams or on other projects.

Compare that with a platform, which is a larger-scale software solution that provides a comprehensive suite of tools and is designed to support and integrate with multiple processes across various departments. While metrics might be used to determine the same things about a platform as a point solution, the process also needs to evaluate how it’s integrated with other systems and whether the team is ready for additional functionalities. 

How to Define and Use KPIs

Key performance indicators (KPIs) are specific, measurable metrics that can be used to evaluate the success or effectiveness of software or technology. They can be tailored to align with specific goals or objectives. Here are steps to define and use KPIs in ways that can help evaluate the performance of technology, make informed decisions and continuously advance towards achieving goals.

1. Identify business objectives.

   Success can only be measured if an end goal has been defined. Determine broad organizational or project goals that the technology is supposed to help achieve. For example, a software solution might be used to reduce project timelines or improve communication.

2. Engage stakeholders. 

   Gather insights by involving the people or groups who have a stake in the project’s outcome or who will be using the technology. Stakeholders, such as project managers, IT teams or field workers, can help define what successfully improving a workflow looks like and identify how to best measure that. This step can also invest team members in a tool, which improves the likelihood for a successful implementation and integration. 

3. Determine measurement criteria. 

   Establish the standard or data that will be used to measure the KPI. The measurement should be discrete and, when possible, aligned to historical data, so a tool’s impact can be measured and compared to past performance. For example, if the goal was to reduce project timelines, a measurement might be hours worked or milestone completion rate. If the goal was to increase communication, the measurement might be user adoption rates or analytics of the communication feature on a project management software. 

4. Define a specific goal. 

   A goal should be specific, measurable and ambitious yet achievable. This is what the KPI will track. When possible, base the goal on historical data or industry standards. An example might include reducing work hours by 10% or achieving 80% of intended milestones. For a communication goal, the goal might be getting 75% of team members to regularly utilize a software’s messaging feature. 

5. Develop a tracking system. 

   Create a structured framework for tracking and communicating KPI results to relevant stakeholders. Many project management software programs have dashboards that track and display real-time data on key metrics related to timelines, budgets or performance. 

6. Analyze and interpret data.

   Effective measurements require consistent and accurate data collection. Data can be analyzed for trends and compared with past performance or industry standards. Many software programs have visualization tools to make complex data accessible. Regularly review data and KPIs to ensure they remain aligned with organizational goals.

7. Adjust. 

   As trends become apparent, adapt how the tool is being used, how the workflow is done or work with an external consultant. For example, if a milestone achievement rate stays low despite a new project management tool, it might be valuable to call a meeting with the technology committee and the project team to identify causes and tweak how the technology is being used. 

Common Metrics and KPIs

There are countless ways to measure success, performance or progress. However, relying on metrics that are already widely-used can help compare performance to industry standards and trends. Here are a few of the most common metrics in the construction industry: 

• Efficiency metrics, which measure how well a workflow is going or how well resources are being utilized. Examples include cost efficiency, labor productivity, resource utilization rate, equipment effectiveness and inventory turnover.
• Quality metrics, which measure how well outputs meet customer and industry standards for quality. Examples include punch list completion rate, customer satisfaction reports or rework rate. 
• Adoption metrics, which focus on how well new tools or systems are being integrated into workflows. Examples include user engagement rate, feature utilization rate or active user percentage.
• User experience metrics, which capture user satisfaction and impact on daily work life. Examples could include surveys or feedback scores.
• Return on investment (ROI), which compares the benefits of a technology with its costs. Examples include comparing cost savings or productivity gains with adoption time or total cost. ROI is often a helpful metric for justifying technology investments to stakeholders and getting leader buy-in.

Intangible Benefits and Their Measurement

Improvements in team culture, worker morale and the ability to attract and retain talented employees are significant indicators of a successful technology. However, they tend to be much more difficult to track and measure than more quantifiable metrics.

Tools such as polls, surveys or feedback sessions are important tools in truly understanding the impact of a technology. This information can be used to help justify an investment in a technology, increase buy-in or contribute to other, more quantifiable metrics, such as productivity. 

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Overcoming Common Challenges in Measuring Success

Collecting, analyzing and interpreting data can be difficult. There are a few best practices for overcoming common challenges.

Be consistent.

Data is only useful if it’s collected, stored and analyzed systematically and regularly. This is often best done by automating the intake and analysis of data. Employees and tools often have to be trained on how to gather the right data and streamline the process to avoid inconsistencies, redundancies or decentralization.

Prioritize KPIs.

Some objectives might have many KPIs. For example, reducing project completion time could be measured by a reduction in hours worked, planned duration compared with actual duration, milestone achieved rate, schedule variation or task on-time completion rate. It’s important to define and focus on a limited number of KPIs to measure the greatest impact towards an objective. 

Beyond Immediate Results

Metrics and KPIs are, ultimately, strategic tools for long-term success. Ongoing measurement helps align workflows, systems and communication with objectives, while also helping to adapt objectives to reflect the evolving goals and challenges of companies and the industry at large. Embracing the effective measurement of success as a continuous process fosters innovation, efficiency and positive team culture.

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