From design to operations: a process management life-cycle performance measurement system for Public-Private Partnerships

Abstract

Public–Private Partnerships (PPPs) have become a critical vehicle for delivering infrastructure worldwide. Yet, the use of such a procurement strategy has received considerable criticism, as they have been prone to experiencing time/cost overruns and during their operation poorly managed. A key issue contributing to the poor performance of PPPs is the paucity of an effective and comprehensive performance measurement system. There has been a tendency for the performance of PPPs to be measured based on their ex-post criteria of time, cost and quality. Such criteria do not accommodate the complexities and lifecycle of an asset. In addressing this problem, the methodology of sequential triangulation is used to develop and examine the effectiveness of a ‘Process Management Life Cycle Performance Measurement System’. The research provides public authorities and private-sector entities embarking on PPPs with a robust mechanism to effectively measure, control and manage their projects’ life cycle performances, ensuring the assets are ‘future proofed’.

Keywords:

• PPPs
• infrastructure asset
• performance measurement
• future proofing
• Australia

Acknowledgement

The authors would like to sincerely thank the industrial practitioners who participated in this research, which is financially supported by the Australian Research Council [grant number LP120100347]. The authors would also like to thank the two anonymous reviewers who have provided constructive comments, which have helped improve the quality of this manuscript.