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?.
Michael R PriceChair Property and Facility ManagementHong Kong Institute of Surveyors Group Estate ManagerSwire Properties Limited
4. Value for Money.
6. Outsource or In-house
The basic issues in Facility Management in an
Market for services
Should we benchmark - Always.
You need feedback.
Quality vs Cost.
Tendering vs Partnership.
1. Why outsource ?
4. Core competencies.
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.
It is a must to give the service level you want.
Targeted, interesting, delivered properly.
In-house and outside expertise.
Yes you do need them clear and in writing.
Uncomplicated, easy to understand and to
Revised and updated annually.
ISO is not needed for excellence.
(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.
Consistency in performance.
Consistency in high quality service delivery.
Consistency in cost control.
This is a skill you need now.
People who hide disappear.
(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.
- Freely available information
- Build up a database.
- Key Performance Indicators (KPI)
You can never do too much.
Good quality vs cheapest.
Partnership is better than tendering, you
must have the right “partner”.
Benchmarking / Compare.
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.
Up-to-date real estate and facility management skills.
Great people skills.
One stop shop - You can handle everything.
Value for money.
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
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
Advantages (perceived) - Removal of inefficiencies.
eg. Loss of expertise.
(You pay for monkeys, you get monkeys.)
Outsource what is right for you!
High Quality = Customer Loyalty
Customer Satisfaction = Consistent Income
= Profit / Job Retention
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