BIFM North Key Learning Event 3 14 May 2015
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The document summarizes a presentation on performance management. It includes an agenda for the event that covers topics like building trust, creating meaningful KPIs, benchmarking, and measuring user satisfaction. Several speakers shared their expertise on these topics. They emphasized the importance of honesty, communication, and creating KPIs that are meaningful, measurable, and focused on improvement rather than penalties. The benefits of benchmarking and user satisfaction surveys were also discussed.
BIFM North Key Learning Event 3 14 May 2015
- 2. 2 | 2015 KLE3 – “Performance Management” Welcome & Thanks
- 3. 3 | 2015 KLE3 – “Performance Management”
- 4. 4 | 2015 KLE3 – “Performance Management” The BIFM North Summer Ball > Thursday 9th July: > Hilton Deansgate > See BIFM website & twitter feed for booking details
- 5. 5 | 2015 KLE3 – “Performance Management” Next Event > Thursday 25th June > “FM: Delivering Social and Economic Benefit”
- 7. 7 | 2015 KLE3 – “Performance Management” Twitter Today’s event: #BIFMKLE @BIFM_North & @BIFM_WIFM @NHSPS_North @InterimFM (Emma) @FMQ_Index (Lucy B) @LarchLucy (Lucy J) @Whitbags
- 8. 8 | 2015 KLE3 – “Performance Management” Why this subject?
- 9. 9 | 2015 KLE3 – “Performance Management” How well is performance managed?
- 10. 10 | 2015 KLE3 – “Performance Management” Introduction to today’s speakers
- 11. 11 | 2015 KLE3 – “Performance Management” Contact Details – BIFM North Mark Whittaker Deputy Chair, North Region (NW) E: [email protected] M: 07764840694 T: @Whitbags Sue Gott Chair, North Region E: [email protected] M: 07764 809783 T: @Mrsgotty Mick Anderson Deputy Chair, North Region (NE) E: [email protected] M: : 07713 122 164 T: @mandersfm
- 12. Building Trust and Creating Meaningful KPI’s
- 13. Who is she.. • Emma Bailey MBA, MBIFM • Interim FM Solutions
- 14. Lets start from the beginning: hellobeautiful.com
- 15. 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
- 16. 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)
- 17. 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?
- 18. Oh no..…
- 19. 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
- 20. How can it be achieved? • Honesty • Communication • Consistency • Openness • Transparency • The whole truth • If in doubt, ask • Be loyal • Did I mention honesty?
- 22. 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
- 23. 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
- 24. 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
- 25. 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
- 26. 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
- 28. If nothing else, remember:
- 29. Now, lets start again…. • Be honest • Work together • Make it meaningful • Communicate • Don’t be drawn in by emotions • Be realistic • And follow through…… • [email protected] • @InterimFM
- 30. Lucy Black Facilities Analysis Ltd Deputy Chair BIFM Members’ Council Sustainability SIG Measuring performance to deliver improved services
- 31. 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?
- 32. 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
- 33. Start Know yourself Know others Know best in class Know the difference Know the way forward Know how you did it Process
- 34. What can we measure? • Space used • Compliance • Premises services eg utilities, maintenance • “Soft” services eg cleaning, security, catering • User satisfaction • Management
- 35. How shall we measure? • Per m2 • Per person • Per £ income • Satisfaction level • Compliance rates
- 36. Decide on the classification protocol and rules of measurement
- 37. Gather the data • Meter readings • Contract information • Bills • Surveys • DEC • HR data • Interviews
- 38. Data risks
- 39. • Comparisons between sites/regions • Comparisons over time • Comparison with own targets Internal benchmarking
- 40. • Benchmarking clubs (subscription) • Databases • Peer group • Sector • Size • Building age • Objectives External benchmarking
- 41. Compile the peer group data and make comparisons
- 42. Measuring User Satisfaction “Measuring customer satisfaction is crucial to making decisions and implementing change” RICS Professional Guidance 2013
- 43. Benefits of understanding user satisfaction • Performance management • Setting targets • Rewarding success • Demonstrate commitment to improvement • Communications with users • Focusing budgets • Business cases
- 44. Measuring user satisfaction • Shout loudest? • Negatives? • Seniority? • Systematic • Surveys • Focus groups • Response cards
- 45. Surveys • Delivery • Questions clear, unbiased, relevant • Anonymity • Time open • Response rates • Feedback to respondents
- 46. Products including user satisfaction • Facilities Management Quality Index • FMP 360 • GVA Acuity • Leesman Index
- 47. Start Know yourself Know others Know best in class Know the difference Know the way forward Know how you did it Benchmarking
- 48. 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
- 49. So what next? • Understand the differences • Strategy for improvement – Action plans – Include in contracts • Implementation • Monitor • Re-assess
- 50. Communications • With your team • With your contractors and partners • With senior managers • With service users
- 51. FMQ Index Offer People attending the Key Learning Event 14th May FREE User Satisfaction Survey, tailored to your needs www.facilitiesanalysis.com [email protected]
- 52. Questions?
- 54. Managing FM Performance Lucy Jeynes
- 57. 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
- 58. Football Crazy http://www.youtube.com/watch?v=ThpYsN-4p7w
- 59. 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)
- 60. 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
- 61. 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”
- 62. Culture, Behaviour & Outcomes
- 63. 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
- 65. Things to Consider “If you can’t measure it, you can’t manage it”. Tom Peters
- 66. 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
- 67. 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.