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Michael R PriceMichael R Price
Chair Property and Facility ManagementHong Kong Institute of Surveyors
Group Estate ManagerSwire Properties Limited
Current day-to-day issues in Current day-to-day issues in Facility ManagementFacility Management
Issues you need to consider Issues you need to consider constantly.constantly.
THE ISSUESTHE ISSUES
1. Capability.
2. Opportunity.
3. Benchmarking.
4. Value for Money.
5. Customers.
6. Outsource or In-house
The basic issues in Facility Management in an
economic downturn.
OUTSOURCE or IN-HOUSEOUTSOURCE or IN-HOUSE
1. Why outsource ?
2. Control.
3. Expertise.
4. Core competencies.
5. Cost.
CAPABILITIES:-CAPABILITIES:-(1) STAFF QUALITY(1) STAFF QUALITY
The key factor must have appropriate level of education and abilities.
Must have initiative.
Prepared exceed customers’ expectations.
Prepared to learn.
You pay monkey’s salary, you get monkeys.
Treat your staff well, or they will go.
(2) (2) TRAININGTRAINING
It is a must to give the service level you want.
Targeted, interesting, delivered properly.
In-house and outside expertise.
(3) (3) PROCESSESPROCESSES
Yes you do need them clear and in writing.
Uncomplicated, easy to understand and to
the point.
Revised and updated annually.
ISO is not needed for excellence.
(4) (4) SERVICE DELIVERYSERVICE DELIVERY
You must deliver what you promise, preferably exceed.
You must deliver it properly.
You must deliver it on time.
You must be organised.
Your client can easily find someone else.
(5) (5) CONSISTENCYCONSISTENCY
Consistency in performance.
Consistency in high quality service delivery.
Consistency in cost control.
OPPORTUNITIES:-OPPORTUNITIES:-
(1) MARKET FOR SERVICES(1) MARKET FOR SERVICES
The government.
Major companies.
Banks.
Major developers.
Property investors.
Universities.
(2) MARKETING(2) MARKETING
This is a skill you need now.
People who hide disappear.
Market internally• Let people know what you do.• Show value for money.
Market externally• Get known.• Show your capabilities.
(3) HONESTY AND PROFESSIONALISM(3) HONESTY AND PROFESSIONALISM
Only promise what you can deliver.
Don’t lie, you’re always found out.
Keep your skills and knowledge up-to-date.
Plenty of opportunities for learning.
BENCHMARKINGBENCHMARKING
• If you don’t do it. How can you assess your performance?
• How?
- Contacts
- Freely available information
- Universities
- Internet.
- Build up a database.
- Key Performance Indicators (KPI)
You can never do too much.
WHAT SHOULD YOU BENCHMARKWHAT SHOULD YOU BENCHMARK
Everything
Customer satisfaction.
Cost
Insurance costs.
Energy costs
Accommodation costs.
Churn costs.
VALUE FOR MONEYVALUE FOR MONEY
Good quality vs cheapest.
Partnership is better than tendering, you
must have the right “partner”.
Benchmarking / Compare.
YOUR CUSTOMERSYOUR CUSTOMERS
You must know them. If you don’t, you’re dead.
They are highly educated, and aware of their rights and power.
You must gain their trust. Nothing worse than a relationship without trust. It is a delicate thing.
WHAT ARE YOUR CUSTOMERS WHAT ARE YOUR CUSTOMERS LOOKING FOR ??LOOKING FOR ??
Professional advise.
Up-to-date real estate and facility management skills.
Great people skills.
One stop shop - You can handle everything.
Flexibility.
Value for money.
Feedback.
OUTSOURCINGOUTSOURCING
Which is best??
Don’t outsource unless there are clear
benefits. Don’t outsource your soul.
Save at least 10%.
Clearly better service quality.
OUTSOURCING vs IN-HOUSE OUTSOURCING vs IN-HOUSE EXAMPLESEXAMPLES
PCCW and Citex (now E.C. Harris).
HSBC and Citex (now E.C. Harris).
Government and Cyberport.
Hong Kong Land, Swire Properties, Sun Hung Kai.
Different degrees out outsourcing / In-house, suit different situations.
OUTSOURCING vs IN-HOUSEOUTSOURCING vs IN-HOUSE
Advantages (perceived) - Removal of inefficiencies.
Disadvantages (perceived)eg. Loss of expertise.
Poor quality.
(You pay for monkeys, you get monkeys.)
Outsource what is right for you!Outsource what is right for you!
PROFIT or YOU KEEP YOUR JOBPROFIT or YOU KEEP YOUR JOB
High Quality = Customer Loyalty
Customer Satisfaction = Consistent Income
= Profit / Job Retention