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“Performance Management:
Targeting & Measurement”
Mark WhittakerBIFM North
2 | 2015 KLE3 – “Performance Management”
Welcome & Thanks
3 | 2015 KLE3 – “Performance Management”
4 | 2015 KLE3 – “Performance Management”
The BIFM North Summer Ball
> Thursday 9th July:
> Hilton Deansgate
> See BIFM website & twitter feed for booking details
5 | 2015 KLE3 – “Performance Management”
Next Event
> Thursday 25th June
> “FM: Delivering Social and Economic Benefit”
Today’s Event
7 | 2015 KLE3 – “Performance Management”
TwitterToday’s event: #BIFMKLE
@BIFM_North & @BIFM_WIFM
@NHSPS_North
@InterimFM (Emma)
@FMQ_Index (Lucy B)
@LarchLucy (Lucy J)
@Whitbags
8 | 2015 KLE3 – “Performance Management”
Why this subject?
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How well is performance managed?
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Introduction to today’s speakers
11 | 2015 KLE3 – “Performance Management”
Contact Details – BIFM North
Mark WhittakerDeputy Chair, North Region (NW)E: [email protected]: 07764840694T: @Whitbags
Sue GottChair, North RegionE: [email protected]: 07764 809783T: @Mrsgotty
Mick AndersonDeputy Chair, North Region (NE)E: [email protected]: : 07713 122 164 T: @mandersfm
Building Trust and
Creating Meaningful KPI’s
Who is she..
• Emma Bailey MBA, MBIFM
• Interim FM Solutions
Lets start from the beginning:
hellobeautiful.com
What is Trust?
• To have confidence / hope
• To entrust
• To rely upon or place confidence in someone or something
• A belief that someone or something is reliable, good, honest and effective
• Integrity
Trust
“…trust refers to one party's willingness to be vulnerable to another party based on the belief that the latter party is competent open, concerned and
reliable” (Kramer et al 1996)
Why do we need it?
• To believe
• To build relations
• To build credibility
• To share values and understanding
• To be content
• To know they care
Are we surprised when clients, contractors and we want it?
Oh no..…
So why don’t clients “Trust”
• Previous bad experiences
• Previous breakdown of relations
• Hidden agendas identified
• Lack of honesty in operations
• Lack of honesty in sales
• Identifying problems, before the contractor does
• Identifying hidden problems that should have been raised
How can it be achieved? • Honesty
• Communication
• Consistency
• Openness
• Transparency
• The whole truth
• If in doubt, ask
• Be loyal
• Did I mention honesty?
Just Remember…….
• https://www.youtube.com/watch?v=9kYBOc5alyo&feature=youtu.be
Meaningful KPI’s?
• Now we have trust, let us create performance measures that:
• Create separation • Show we aren’t trusted • Penalise us at all levels when we make a mistake • Create sleepless nights • Force us to be “creative” in reaching targets
Why do we do it to ourselves?
• Create numerous KPI’s that become irrelevant
• Create KPI’s that are not easily understood at all levels
• Outsource all our services, to then employ an in-house team to monitor the monitor
• Create KPI’s that force contractors to take a hit on one, in favour of another
• Make them too complex, more data then needed
So what are they for?
• To manage performance - By the Contractor?
• To monitor performance – By the Client?
• To Identify potential areas of improvement – By the Client & Contractor?
• To ensure strategies are on the right path
• Highlight critical success AND failure points
What they are not for?
• A large stick
• A justification to keep “some” in-house teams
• An opportunity for a contractor to show how creative they can be by fudging the numbers
• A tick box exercise
• An opportunity to get rid of a contractor / contract
So what should they be?
• Measurable and actionable
• Critical to the success of the business and the facility
• Linked to the business strategies and goals
• Limited to 10
So what shouldn’t they be?
• Unclear
• Not measurable
• Unimportant
• Long winded / pointless
KPI Development Process
Concept
Develop
Test
Implement
Analyze
If nothing else, remember:
Now, lets start again…. • Be honest
• Work together
• Make it meaningful
• Communicate
• Don’t be drawn in by emotions
• Be realistic
• And follow through……
• @InterimFM
Lucy Black
Facilities Analysis Ltd
Deputy Chair BIFM Members’ Council Sustainability SIG
Measuring performance to
deliver improved services
What have you done to to review
whether the services you are
providing or buying are as good
as they should or could be?
What have you done to to
review the costs of services you
are providing or buying?
Benchmarking
“Benchmarking is part of a process
which aims to establish the scope for,
and benefits of, potential improvements
in an organisation through systematic
comparison of its performance with that of
one or more other organisations.”
BS EN 15221:7
Start
Know yourself
Know others
Know best in class
Know the difference
Know the way forward
Know how you did it
Process
What can we measure?
• Space used
• Compliance
• Premises services eg utilities, maintenance
• “Soft” services eg cleaning, security, catering
• User satisfaction
• Management
How shall we measure?
• Per m2
• Per person
• Per £ income
• Satisfaction level
• Compliance rates
Decide on the classification protocol and
rules of measurement
Gather the data
• Meter readings
• Contract information
• Bills
• Surveys
• DEC
• HR data
• Interviews
Data risks
• Comparisons between sites/regions
• Comparisons over time
• Comparison with own targets
Internal benchmarking
• Benchmarking clubs (subscription)
• Databases
• Peer group
• Sector
• Size
• Building age
• Objectives
External benchmarking
Compile the peer group data and make
comparisons
Measuring User Satisfaction
“Measuring customer satisfaction is
crucial to making decisions and
implementing change” RICS Professional Guidance 2013
Benefits of understanding user
satisfaction • Performance management
• Setting targets
• Rewarding success
• Demonstrate commitment to improvement
• Communications with users
• Focusing budgets
• Business cases
Measuring user satisfaction
• Shout loudest?
• Negatives?
• Seniority?
• Systematic
• Surveys
• Focus groups • Response cards
Surveys
• Delivery
• Questions clear, unbiased, relevant
• Anonymity
• Time open
• Response rates
• Feedback to respondents
Products including user
satisfaction
• Facilities Management Quality Index
• FMP 360
• GVA Acuity
• Leesman Index
Start
Know yourself
Know others
Know best in class
Know the difference
Know the way forward
Know how you did it
Benchmarking
Benchmarking
“Benchmarking is part of a process
which aims to establish the scope for,
and benefits of, potential improvements
in an organisation through systematic
comparison of its performance with that of
one or more other organisations.”
BS EN 15221:7
So what next?
• Understand the differences
• Strategy for improvement
– Action plans
– Include in contracts
• Implementation
• Monitor
• Re-assess
Communications
• With your team
• With your contractors and partners
• With senior managers
• With service users
FMQ Index Offer
People attending the Key Learning Event 14th
May
FREE
User Satisfaction Survey, tailored to your needs
www.facilitiesanalysis.com
Questions?
Managing FM Performance
Lucy Jeynes
Setting the Scene
Image is reality
It is the result of our actions
If the image is false and our performance is good, it’s our fault for being bad communicators
If the image is true and reflects our bad performance, it’s our fault for being bad managers
Company image & reality - David Bernstein
Football Crazy
http://www.youtube.com/watch?v=ThpYsN-4p7w
Service Level Agreement
“Defines agreed expectations against which
service or supply is provided”
“An agreement between the service
provider and its customer quantifying the
minimum acceptable service to the
customer”
(Larch Consulting)
(Andrew Hiles -Service Level Agreements)
Paying for performance
1. Safelite windscreen installers used to be paid an
hourly wage. Their bosses believed that
performance pay would reduce “intrinsic
motivation”, and that “peer pressure” would avoid
mistakes which would have to be rectified
afterwards.
They plan to introduce a piecework rate – and
mistakes have to be rectified without pay.
What do they need before they can do this?
What happens to performance?
Freakonomics – Steven Levitt
Recent Contracts “The Contractor is to continually seek
innovation which will lead to cost reductions
for the Company. Where proposals are
implemented, the Contractor will receive 40%
of any savings achieved in Year 1”.
“Penalty for not producing Monthly Report,
including performance tracking against KPIs,
breakdowns of activity and cost, by site, by
region and by activity: £750”
Culture, Behaviour & Outcomes
Goodhart’s Law
“When a measure becomes a target, it
ceases to be good measure”.
Any observed statistical regularity will
tend to collapse once pressure is
placed upon it for control purposes
Incentives & Penalties
Things to Consider
“If you can’t measure it, you can’t
manage it”. Tom Peters
Things to Consider
“If you can’t measure it, you can’t
manage it”. Tom Peters
“Don’t measure it just because you can”. Lucy Jeynes
Things to Consider
“If you can’t measure it, you can’t
manage it”. Tom Peters
“Don’t measure it just because you can”. Lucy Jeynes
Measure smarter.
