Three opportunities for improving facilities service providers’ value
A survey conducted by IPD has revealed a number of opportunities for improving the value facilities service providers deliver to organisations.
In March 2012 IPD asked occupiers about their experiences of working with facilities service providers as part of the annual IPD Market Monitor survey. Results were discussed by leading corporates at the first quarterly Occupier Benchmarking seminar of 2012 – a peer network that promotes performance improvement and innovation.
Results indicate outsourcing will continue to increase in value, and effective supplier management is one of the main ways in which occupier teams can improve the value they deliver to their organisations.
Three specific opportunities for improvement were identified:
1. Make sure the contract doesn’t kill the relationship. Evergreen (or at least long-term) contracts with continual performance review (for example, benchmarking) and realistic (performance-related) profit margins make more sense. If incentives can be aligned as far as possible there will be fewer destructive forces pulling the relationship apart.
2. Promote and reward the right behaviours. Performance often dips when personnel change. Sustained performance is the product of a performance culture. Respondents identified the importance of establishing shared cultural values (generally the client’s) during mobilisation and reinforcing these through shared training, openness and collaboration.
3. Focus on processes. By seeking to simplify, align and adapt processes it should be possible to continually elicit small, practical innovations. Innovation is a process like any other and current shortcomings are largely as a result of not defining a process, or having the right data or accountability for action.