the professional selling programmeintroduction syllabus / lecture plan • lecture 1 - unit 1 •...

IntroductionSyllabus / Lecture Plan

• Lecture 1 - Unit 1



• Lecture 4 - Unit 4 /5

• Lecture 5 - Assignment

• Lecture 6 – Unit 6


• Lecture 8 – Unit 8

• Lecture 9 - Exam

1

Define, Role ,

Scope of FM

FM Performance

BCP

Facilities Management Principles

Value / Risk Management / IT

Facilities Management 1 [D39FM]

Unit 4

FM Performance

Facilities Management Performance

Overview

• Key Performance Indicators (KPIs)

• Problems of Identification and Application of A Generic Set

of Performance Parameters

• A Methodolgy for Developing KPI (Management by

Variance Tool)


Unit 4


Learning Outcome

• Appreciate the problems with contemporary approaches to

the performance assessment and benchmarking of FM

operations

• Learn to develop an alternative technique of performance

assessment


Unit 4


4.6 Introduction

• Based on a case study research done by the University for the premises department of Major Financial Service Company, Standard Life Assurance

• Pertinent Info on the case:– Responsibilities: Mtce Mgt, Space Mgt, Proj Mgt, Gen premises

Mgt of buildings, Admin of associated support svcs

– 27 buildings & 6000 employees

– Premise Manager and supporting managers

– In-house team with external contractors – in house team single skilled environment 10%.

– Planned & reactive maintenance & other works supporting the core business departments

– Competitive bidding for projects and partnering approach for service contract

– Need set of key performance indicators (KPI) to evaluate performance


Unit 4

KPI Management

by Variance


4.8 Current & Previous Approach to Performance

Assessment

• Limitation of current application of KPIs

• Industry or Organisation Specific

• Applicable for monitoring the management of FM tasks

• Gap in understanding of the metrics (standards of

measurements) between customers & FM

• Metrics have no or little link with the performance of

business

• Significance of FM on the business unnoticed


Unit 4

KPI Management

by Variance


Evolution of the Performance Assessment Framework

• Realisation of need to develop a more holistic approach linked to

business:

– Benchmarking

– Use of non financial indicators instead of using just financial

indicators

• Include indicators relevant to business- oriented customer

• Indicators can be presented graphically for comparison between

desired and actual performance

• Ranking or prioritisation of KPIs required in terms of the strategic

significance of strategic objectives

• Important to iron out the difference in perception between FM and

customer.

• Performance measurement must be dynamic

• Performance profiling for effective communication and improvement


Unit 4

KPI Management

by Variance


Evolution of the Performance Assessment Framework


Unit 4

KPI

FM

Expectation

Customer

Expectation

- Business

Approaches

What is the

GAP?

Management

by Variance


4.9 Concept of The Alternative Framework

• Based on Becker’s 1990 concept and Scale of Framework suggested

by Slater(1997) i.e A set of definitive KPIs within a manageable

framework.

• Tool designed for a graphical profiling for easier use and application

• Indicators selected for the tool were to be created using a combination

of premises department and business customer views (done using

a case study application – action research).

• In the absence of a comprehensive alternative, a bespoke tool would

be developed using a bespoke set of performance indicators. (172

indicators)


Unit 4

KPI Management

by Variance


4.10 Selection of KPIs

• Use key literature sources to identify KPIs (Varcoe, Kay, Wang,

Slater, Palvia, Grover etc)

• Varcoe 1993

– cost , quality , delivery

– Limitation of cost per area

– Number of performance indicators should be minimised

– Best to have 5-6 biz objectives and 4-6 facilities performance

• Wang 1992

– Lack of agreement on KPI

– Best to have bespoke set of KPI


Unit 4

KPI Management

by Variance



• 172 KPIs identified

• Narrowing down KPIs

• Some Issues identified:

– Mix and weighting of measures determined by a combination

by of factors (business env, bz strategy & type of service) and

size of customer base

– Problem of correlation of performance and criticality to

business or customer satisfaction

– Question of severity of gap between actual and he

benchmark


Unit 4

KPI Management

by Variance




Unit 4

KPI

Phase 1 – Clarifying The Performance Assessment

Context

Phase 2 – Developing the Bespoke Performance

Assessment Tool

Phase 3 – Prioritisation of KPI

Phase 4 – Rating of FM Performance

Management

by Variance



Unit 4

Methodology of the Alternative Performance Assessment

Tool

Phase 1 – Clarifying the Performance Assessment Context

• Clarify the nature & priority of the performance parameters by expert panel

• Expert panel - equal number of staff from Premises Dept & Customer

• Consensus View using techniques- questionnaire, group feedback, scenario workshop, discussion to prioritise set of KPIs and rank this shortlist

Management

by Variance

KPI



Unit 4


Tool

Phase 2 – Developing The Bespoke Performance Assessment Tool

• Select a comprehensive & coherent list of PIs from the

long list

• Shorten list (by polling) by 1st classifying into categories of

essential, only desirable and of only tertiary importance &

then eliminating the last 2 categories

• Further refinement from 59 to 30 and finally to 23 KPIs

Management

by Variance

KPI



Unit 4


Tool

Phase 2 – Developing The Bespoke Performance Assessment Tool – issues found

• Definition of KPIs strongly influenced by corporate culture

– confirm difficult for generic set of KPIs

• Orientation of KPIs depends on corporate culture –

customer focus KPI in this case

• KPI chosen may be due to currency of issue (eg energy

usage)

• KPIs selection dependent on level of representation in the

management hierarchy (result in low strategic focus)

• Subjectivity and omission of KPIs

Management

by Variance

KPI



Unit 4


Tool

Phase 3 – Prioritization of Key Performance Indicators• Allocate grade (1 to 10 mark for each KPI) in the context

of strategic relevance to business• KPIs on top of list – of more strategic importance• KPIs at the bottom – more operational• Difficulty of distinguishing KPIs at top end• the very and supremely important KPIs• Subjectivity in according marks• Mixed bag of indicators, strategic, operational & customer

orientated arrived at and ranking subjective• Difference in perception (eg cleaning)

Management

by Variance

KPI



Unit 4


Tool

Phase 4 – Rating of Facilities Management Performance

• Semantic scale of rating – Unsatisfactory, satisfactory,

good, excellent

• Plot result ( figure)

• Issues:

• Datum scale affect shape of graph

• Respondent may be skewed in their response due to

perception and assessment approach

• Biasness may be presence depending on which

department conducts the performance appraisal – 3rd

party may be the answer

Management

by Variance

KPI


4.11 Management By Variance Tool

Concept

• ‘At a glance’ picture of the level of performance in key areas

• Main KPIs and Sub-KPIs instead of a generic set of KPIs at

departmental (latter ineffective)

• Rationale - Strategic level of performance in form of main KPIs

will, through measurement of sub-KPIs, contribute to continuous

improvement of the department


Unit 4

Management

by Variance

KPI



Architecture of the Tool

• Selected KPIs – plot difference in perception (variance) by

customer and the Premises Department.

• Application – can track performance over time though

several performance assessment

• Gap (variance) identify problem area.


Unit 4

Management

by Variance

KPI



• Snap-Shot Application

– Useful for identifying problems

• Trend or variance analysis

– Useful for identifying changes in performance over time

– Correlate such changes to company’s policies and plans

– Prompt action and prioritise action


Unit 4

Management

by Variance

KPI


4.11.4 Example Case Results


Unit 4

Reliability (7)

Professional Approach

of Premise Staff (8)

Responsiveness to

Problems (9)

Management of

Maintenance (11)

Satisfactory Physical

Working Conditions

(14)

Deviation of Premise Dept

and Customer

Management

by Variance

KPI


4.11.4 Example Case Results


Unit 4

Management

by Variance

KPI

1. No loss of Biz due to failure of premises

service

2. Customer satisfaction

3. Completion of project to customer

satisfaction

4. Provision of safe environment

5. Effective utilisation of space

6. Reliability

7. Professional approach of premise staff

8. Responsiveness to problems

9. Competence of staff

10. Management of maintenance

11. Responsiveness of PD to change/

requirements

12. Value for money

13. Satisfactory physical working conditions

14. Equipment provided meets biz needs

15. Equipment provided meets biz needs

16. Suitability of premises and functional env

17. Quality of end product

18. Effectiveness of helpdesk service

19. Achievement of completion deadlines

20. Correction of faults

21. Standards of cleaning

22. Management information

23. Energy performance

the professional selling programmeintroduction syllabus / lecture plan • lecture 1 - unit 1 •...

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