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Michael R Price Chair Property and Facility Management Hong Kong Institute of Surveyors                                     Group Estate Manager Swire Properties Limited. ADVERTISEMENT Are you a Surveyor? Have you registered with the Committee?.

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Michael R PriceChair Property and Facility ManagementHong Kong Institute of Surveyors            Group Estate ManagerSwire Properties Limited

the issues
THE 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.

capability
CAPABILITY

 Staff Quality

 Training

 Processes

 Service Delivery

 Consistency

opportunity
OPPORTUNITY

Market for services

 Marketing

Internal

External

 Honesty

benchmarking
BENCHMARKING

 Should we benchmark - Always.

 You need feedback.

 Benchmark everything.

value for money
VALUE FOR MONEY

Quality vs Cost.

 Tendering vs Partnership.

 Supplier choice.

customers
CUSTOMERS

Their needs

 Internal

 External

outsource or in house
OUTSOURCE or IN-HOUSE

1. Why outsource ?

2. Control.

3. Expertise.

4. Core competencies.

5. Cost.

capabilities 1 staff quality

CAPABILITIES:-(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 training

(2) TRAINING

It is a must to give the service level you want.

Targeted, interesting, delivered properly.

In-house and outside expertise.

3 processes
(3) PROCESSES

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 service delivery

(4) SERVICE 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 consistency

(5) CONSISTENCY

Consistency in performance.

Consistency in high quality service delivery.

Consistency in cost control.

opportunities 1 market for services
OPPORTUNITIES:-(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.

benchmarking19
BENCHMARKING
  • 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 benchmark
WHAT SHOULD YOU BENCHMARK

Everything

 Customer satisfaction.

 Cost

 Insurance costs.

 Energy costs

 Accommodation costs.

 Churn costs.

value for money21
VALUE FOR MONEY

Good quality vs cheapest.

 Partnership is better than tendering, you

must have the right “partner”.

 Benchmarking / Compare.

your customers

YOUR 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 looking for
WHAT ARE YOUR CUSTOMERS 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.

outsourcing
OUTSOURCING

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 examples

OUTSOURCING vs IN-HOUSE EXAMPLES

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 house

OUTSOURCING 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!

profit or you keep your job
PROFIT or YOU KEEP YOUR JOB

High Quality = Customer Loyalty

Customer Satisfaction = Consistent Income

= Profit / Job Retention

summary

SUMMARY

You need to be considering at all time:-

1. Your capabilities.

2. Your opportunities.

3. Your customers.

4. Benchmarking and value for money.

5. Outsourcing vs In-house.

6. Profit, and job retention.

 Happy for Q&A 

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