Adoption of Agile Performance Management in the Construction Industry for Project Success using System Thinking Approach

Abstract

Projects have become more complex over time. Therefore, projects with time delays and cost overruns are delivered in the construction industry. Project complexity is one of the reasons for poor performance. Complexity affects the preparation and control of projects; it can disrupt the clear identification of priorities and objectives or it can even affect the results of the project. Performance of construction projects is affected by their management. Organizations complain that the annual/bi-annual cycle does not improve business performance or employee engagement. But the need for fast completion of construction projects, or at least for projects completed on time, has been triggered by both dynamic market forces and increasing societal needs. Projects include requirements and complications that must be reduced to complete the type of project requested by clients. Working on the root causes of project complexity improves the project's chances of success. Agile performance management is thus proposed as a potential solution for dealing with project complexity. Agile aims at providing market value over constant repetition in a shorter period Agility is an organization’s overall capacity to react and take advantage of the changes introduced by drivers in the internal and external environment. It requires the ability to recognize necessary changes and respond proactively, quickly, and effectively, hiring the right competence-based, not hierarchical, personnel. Also, the ability to incorporate flexible processes and practices suitable for the immediate tasks at hand and to use the necessary resources in the shortest possible period is included. All in all, organizational agility is the capacity to react to situations and do so efficiently and smartly. ix Agile performance management is a continuous, scientific, and iterative process. This is a system of 360-degree feedback, communication, and coaching. The chances of project success are improved by focusing on the factors that cause project complexity. Agile approaches, which demonstrate one-on-one coordination with clients, are one way to reduce the project's complexity. Coaching consists of regular ongoing meetings between staff and their supervisors to promote individual improvements in learning and behavior, as well as offer positive and developmental opportunities to help staff learn how to cope with complex circumstances. To improve organizational efficiency and individual growth, the main goal of coaching is to build a positive learning environment. In comparison to coaching, which usually focuses on the potential success of the work, feedback focuses on providing workers with data on past work performance to improve desirable actions or suggest areas for improvement. Conducting performance reviews on a more frequent basis (quarterly) may have positive effects on both the worker and the company. Acknowledgment is a type of positive reinforcement provided to desirable behaviors in response to building to shape and enhance performance common acknowledgment types include a Special mention in a meeting, a note in a business newsletter, or several gifts. This study aims to examine the shortcomings of traditional performance management, evaluate the advantages, and identify challenges creating complexity in the implementation of agile performance management and the importance and interconnectivity using the system thinking approach. The research findings will help practitioners to implement APM in the construction sector and will not only produce high-quality and cost-effective deliverables but will also guarantee customer satisfaction, remove subjectivity and bias from the evaluation x process and decrease uncertainty and risk involved during the construction project. This research would not only assist construction industry practitioners but also include empirical evidence relating to the use of the agile methodology. It will provide a new insight to industry practitioners that it is very important to use agile methodology for the successful completion of the projects and how it affects the industry’s customers as agile methodology offers one-to-one indications of perfect customer cooperation. A Causal Loop Diagram of the findings and a prospect for future research will conclude the study.