MANAGEMENT THINKING BEHIND PERFORMANCE MEASURES

The tools, methods and measures used for project control reflect underlying theories of management. Management theory has been neglected in the construction industry, which has rather focused on tools and neglected theory. This paper contributes to the theory of project management by introducing and developing two fundamental and competing conceptualizations of management: MBM (Managing-by-Means) and MBR (Managing-by-results). Current project control and performance measurement practice is based on MBR. However, project control based on MBR may not be appropriate for managing dynamic projects. The paper present the Last Planner^TM System (LPS) and Process Variance Control (PVC) as examples of methods reflecting the MBM view. It is argued first that the MBM view is appropriate for managing uncertain, complex and quick projects. The paper also explores how MBR tools and techniques may be appropriately used within an MBM framework.