Measurement is the first step that leads to control and eventually to improvement.
If you can't measure something, you can't understand it.
If you can't understand it, you can't control it.
If you can't control it, you can't improve it.
— James Harrington, British philosopher
CFMA and AEMP are proud to announce the formulation and approval of Key Performance Indicators (KPIs) for Fleet Management. This fifteen-month, jointly supported project has resulted in the development of 32 KPIS divided into nine categories to be used as standardized metrics.
The purpose of the project included:
- Collaboration between construction industry leaders (AEMP and CFMA)
- Support fleet managers and stakeholders with KPIs to measure their progress and evaluate fleet performance and costs to aid in decision making
- Develop standards in calculations for KPIs to improve consistency and comparability
- Identify effective KPIs to use to evaluate multiple aspects of fleet performance
- Establish performance benchmarks for comparisons
- Raise the profiles of fleet and financial professionals in the industry and their companies
An initial feasibility survey was developed and administered with 143 responses (50% CFMA and 50% AEMP) with 94% stating their interest in having a set of KPIs to benchmark performance and costs of fleet management.
This resulted in a ten-person team from both CFMA and AEMP membership (many were in leadership roles in their associations). The team, headed up by Rich King, representing CFMA, and Preston Ingalls, representing AEMP, met, virtually, numerous times utilizing the Delphi Technique to reach consensus on paring down 94 initial KPI suggestions to 32 KPIs endorsed by the team. The team spent considerable time developing definitions and formulation standards for each metric. Once the team was happy with the output, the document was proofed by the AEMP Standards Team, and a peer review was conducted by eight members from both CFMA and AEMP.
The nine categories were:
- Financial Metrics
- Costs Metrics
- Utilization Metrics