Developing KPIs for Functions of Design of Architectural, Interior designing, and Design of MEP.

A KPI for a function is a measurable value that demonstrates how effectively a function is meeting organizational objectives. KPI needs to be specific, measurable, realistic, and communicated to concerned key functional team members to accomplish. How to develop KPI For developing a robust KPI system,11 business activities are considered essential in each of the 3 Project design and engineering functions as below. ·       Sharing of corporate targets like Sales nos, Revenue and Construction costs & Completion targets with HOD of Design of Architectural, Interior designing, and Design of MEP ·        Design of format/contents of KPI with inputs from CEO/MD ·        Identify important KPI for each of the 3 design functions based on corporate objectives and external influences like customer demand or & competitors’ offerings or & economy or &statutory considerations ·        Proposing initial KPI Targets and Measures by HOD of design functions ·        Reviewing, modifying, and approving the respective design team’s KPI by CEO/MD ·        Putting up measurement systems in place like reports /dashboards  ·        Converting each functional KPI into KRA-Key result areas of functional team members at different levels i.e. §  Higher level: directors-, HOD/Chief designer, General managers-GM, and so on as applicable §  Middle level: senior manager-sr. mgr, manager, and so on as applicable §  Lower level: assist. manager/junior mgr., staff, and workers so on as applicable ·       Monthly capturing of actual accomplishment of KRA by respective teams in templates ·       Periodic review of Actual accomplishment of KPI vs Target ·        In exceptional cases, reviewing, updating, and resubmitting KPI to CEO/MD ·       Compile Level-wise Actual vs Target of KRA and forward updated reports to the HR team for subsequent annual performance appraisal system at each level. Suggested Template for KPI -An Illustration Based on the above, a template with 9 columns and 20 rows is proposed below for the 3 Design functions which can be populated by the HOD of Architect, Interior design, and MEP design respectively             Suggested KPI     Measure of accomplishment   UOM         % Weight- age   Target   Actual    Score earned based on col 7/6x5  Remarks 1                       2             3    4      5    6      7        8        9 1 No of the projects for which Architectural, Interior, and MEP designs were commercialized successfully New projects commercialized Nos      5       Approval of Sample flat or mockup unit by potential customers leading to booking 2 Benchmarking of competitor’s projects       Site Visits to Sample apartments or & completed Construction projects to gather unique project features  Nos 5       Presentation to Promoters of the features and our plans to offer even better features in design plans 3 Mockup unit Development costs Costs include: i)Direct -pro-rata costs of dedicated manpower for Architecture, Interior design, or MEP functions   + ii)Outsourced consultancy iii)Mockup unit -costs of BOQ -local+ imports (excluding Interior design & MEP) + iv)Costs of consumables+ v)Costs of manpower for the construction of mockup+ vi)Dedicated Software+ vii)Travel costs directly related to Project+ viii)Rework costs+ viii)Surplus BOQ samples that are unusable Excludes -manpower engaged in supporting existing models Mockup/sample room costs Rs or USD/Project or Rs /USD 5         4 Timeliness -for preparation, release & approval of design works vis a vis   Developing Concept design On-time release - score on a 5-point scale, with five being excellent /delightful & 1 being poor    score 5       From the Start of Go ahead given by the promoter for designing the specific Projects  5 Timeliness -for preparation, release & approval of design works vis a vis Developing Schematic design  As above score 5         6 Timeliness -for preparation, the release of design works for obtaining Sanction design from statutory authorities (This KPI may not apply to Interior design)  As above score 5         7 Timeliness -for preparation, the release of design works vis a vis detailed Design-Based on statutory approvals including RERA/Statutory body as applicable  As above score 5         8 Timeliness -for  preparation,  comprehensiveness, and release  of Tenders vis a vis technical design aspect, including designs/technical specifications ·       Structure works ·       Civil works ·       Façade works ·       Landscape Works-Hardscape ·       Landscape works-Softscape ·       Interior design -Finishing ·       Interior design -FFE works ·       Interior design -Artwork ·       MEP-Electrical works ·       MEP-Airconditioning works ·       And so on  As above score 5         9 Timeliness -for preparation, comprehensiveness, and release   of Target/estimated   Project Costs in Rs or USD & or Rs or USD/sqft including (BOQ+ Labour+ direct construction variable costs)-  As above score 5       Package-wise costs along with assumptions to be prepared. 10 Timeliness -for preparation,  comprehensiveness, and release   of design works vis a vis Working drawing/GFC (Good for construction drawings)   As above score 5         11 Timeliness in obtaining statutory approvals (Before or during construction) such as below but not limited to: Zoning plans, Building /site plans & drawings, building height clearances, In principle approval for BOQ material specification of the works to be constructed & many more, including Structural design safety certification As above score 5         12 Comprehensiveness & accuracy of technical specifications & designs in tenders  As above score 5         13 Technical support to in-house purchase and contracting teams in selecting consultants and contractors and incorporating clauses in their agreements w. r. t. their scope of work, specifications, and deliverables  As above score 5          14  Quality of designs causing delays in project execution due to inadequacy/rework of designs vis a vis various packages for Architecture, Interior designing, MEP works vis a vis each package mentioned earlier      As above score 5         15 Rendering Support to Project construction team +Contractors during construction for issues related to constructability of design and drawings  As above score 5         16 Rendering support to the QS team for carrying out measurements of all related works  vis construction  packages  including bills for substitute/extra materials   As above score 5         17 Accuracy in the passing of outsourced consultant’s/service provider’s bills vis a vis deliverable in agreement  As above score 5         18 Timeliness for release of: -          As-built drawings & design -          Revised Project costs vis a vis target  As above score 5         19 Timeliness in obtaining statutory approvals-post construction such as below but not limited to: ·       Deed of declaration for actual area constructed ·       Occupation certificate, ·       Completion certificate etc. (This KPI may not apply to Interior design)  As above score 5         20 Cost reduction/Value engineering in BOQ Savings in Project cost Rs or USD 5                                             Total      100     *      Notes: * Total score earned of all KPI parameters can  be computed and used in annual  appraisal/ promotion etc ·       80-100=Excellent   ·       60-80= very good ·       40-60= average ·       20-40= below average ·       Below 20=Poor                                                                                                                              How to populate the KPI template i)Here each row represents a KPI parameter (along with the unit of measurement) with a score @5 for each KPI (as an example for simplicity) thus adding up to a total KPI Target score of 100 mentioned in column 5 of template ii) Basic inputs for computing actual accomplishment vis a vis each KPI are given in the last column   iii) The values for the targeted KPI and actual accomplishment, are to be filled in columns 6 & 7 respectively   iv) Thereafter score earned to be determined as:        The actual value in column 7        ………………………………………    X weightage score in column 5     Target value in column 6   eg.  For the 1st KPI in row 1 is no of projects commercialized with values as below                                                         Target =10 (column 6)                                                          actual= 9 (column 7)                                                     weightage=5 (column 5)                                           Score earned will be = 9/10 x5=4.5   v)  Likewise score earned of each KPI to be computed in 20 rows and say it works out to be = 85 vi) The total score earned as above can serve as one of the relevant qualitative inputs for performance appraisal.  This score will classify as an excellent category as the assumption mentioned at end of the table   vii) The HOD of Architecture, Interior design or MEP functions can make modifications, to the number of KPIs, and their description vis a vis this template in consultation with the Project head, CEO, and MD   viii) Likewise, HOD of Architecture, Interior design, or MEP functions assign different weightages to the KPI parameter listed in rows, instead of keeping 5 as mentioned in the above illustration but the total of all KPI must add up to 100 in column 5. viii) Suggest separate sheet to be prepared for Residential, commercial, hospitality, and other projects ix) KPI can be developed by teams of  Design of Interior and MEP functions based on a similar approach   Activities that can adversely impact the business while developing KPI   §  KPI parameters are non -comprehensive due to the following: §  Not aligned to Corporate Objectives §  Contain primarily transaction-related mundane indices   §  Measures of accomplishment are deliberately kept vague and not merit-based leading to the scope of manipulation   §  Percent weightages assigned to each KPI are biased with ulterior objectives of influencing outcome vis-à-vis performance perspective.   §  Targets Set are biased (too stretched or too loose) to reprimand or favor specific team members or specific levels of employees, leading to demotivation/dissatisfaction. §  The actual measurement carried out is captured inaccurately or manipulated.   §  Making circular changes in the KPI Targets or actuals during the performance review period and restoring original values, with ulterior motives and simultaneously disabling the audit trail to prevent detection.   §  In the workflow/embedded software (that enables accessing of KPI) incorporating incorrect indices vis-à-vis management-approved KPI indices by not exercising prudence leads to mistaken capturing of % Weightages or Targets   Detailed about business activities to be performed for developing the KPI are included in chapter 18 (annex 42B) in the handbook of the author and titled” ETHICS in the real estate and hospitality industry, Volume 1- Architectural, Interior design, and MEP services