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Instruments for monitoring Facility Services

Instruments for monitoring Facility Services
or Facility Services out of control

 
Paradox: During the Facility Services procurement process principals and agents are pursuing the same goal, but too often it is not achieved.
The reasons for that and available monitoring instruments were discussed in a series of symposia.
 
 
Many organisations are not aware of the right monitoring quantity after the procurement of Facility Services, whereas the crucial process actually begins a lot earlier. Far too often clear agreements are not specified – known as comparing apples and oranges. When the client is talking about daily routine-cleaning this does not directly clarify how often, what exactly and how thoroughly the client wants to have the cleaning. For the most part the ordinary service agent acts in a function-oriented way, however, the principal just wants to see the results. Services are to be clearly defined concerning performance, quality, quantity and costs in order to find a basis for measuring the service quality, says Georg Stadlhofer from Reality Consult, who organised symposia in Berlin, Munich, Düsseldorf, Frankfurt and Vienna according to this subject. “Being able to control and monitor service quality implies mature standardisation, that is to say Service Level Agreements”, Georg Stadlhofer gets it to the point.
 
 
 
 
Clearly communicate, after that control and monitor
 
Taking cleaning as an example, a Service Level may specify: use two different cleaning rags for the floor and the furniture, lift things off the table to humidly wipe it as a whole, empty and wipe out the wastepaper basket. At the same time the frequency of this cleaning process is specified. If the standards are specified in this way, they are consequently easier to monitor – as long as the cleaning area is not excessively large. An global corporation or a large real estate fund need to find an appropriate monitoring system as they have to manage several thousands of Service Level Agreements. Some companies use a random generator to choose single service positions (Service Levels) which are then inspected and monitored. The results of the monitoring procedure are entered into a monitor system such as a “traffic light”: Green, representing the satisfying points, yellow, highlighting critical points and red, is self-explanatory. Making use of this method will show the cleaning efficiency within a longer period of time. On the basis of that a bonus-penalty-system can be applied and justifying penalties, provided that this is part of the contract.
 
 
Further tools: Jürgen D. Hege, Director of Commerz Real AG, not only relies on internal monitoring, he has also implemented a Complaint Management for tenants. In the first this system requires that all data is available in the same consistent structure as contracts – otherwise it would not be possible to gain control of a portfolio of 240 objects in 20 countries.
 
 
Common goal: satisfied tenants
 
Not only principals want their users to be satisfied, also the agents strive for keeping tenants happy. Decreasing complaints reaching the owner’s Property Manager signify higher satisfaction. Therefore all agents at the symposia of Reality Consult rate communication as one of the key factors of success. Surveys, Complaint Management etc. seem to be appropriate instruments. Thomas Kiss, managing director of STRABAG Property and Facility Services even considers mediating between owner and tenant as one of his assignments.
 
The operative staff with the Service Provider represents the second crucial point. Due to the skilled worker shortage on the labour market Dr. Sasse AG has developed a comprehensive program for human resources development. Peter Praum from Gegenbauer Facility Management GmbH says that a trouble-free synergy of human and machine would be the best: having motivated and continuously self-improving employees on the one hand and professional IT tools and CAFM on the other hand. Latter eventually is needed for a profound record keeping system, e.g. for quickly resolving suits.
 
 
 
Another way to establish clarity right from the beginning is making use of the objective third-party view. Audits, independently verified certificates or external Property Managers are well-known instruments. These obviously are not favourable when it comes to financial aspects. Moreover Dr. Eberhard Sasse, director of the board at Dr. Sasse AG, named one of the most severe factors threatening service quality. Cost pressure has always been an issue.
 
 
Georg Stadlhofer, Head of Consulting
Reality Consult GmbH
 
 

Instruments for monitoring Facility Services
or Facility Services out of control

 
Paradox: During the Facility Services procurement process principals and agents are pursuing the same goal, but too often it is not achieved.
The reasons for that and available monitoring instruments were discussed in a series of symposia.
 
 
Many organisations are not aware of the right monitoring quantity after the procurement of Facility Services, whereas the crucial process actually begins a lot earlier. Far too often clear agreements are not specified – known as comparing apples and oranges. When the client is talking about daily routine-cleaning this does not directly clarify how often, what exactly and how thoroughly the client wants to have the cleaning. For the most part the ordinary service agent acts in a function-oriented way, however, the principal just wants to see the results. Services are to be clearly defined concerning performance, quality, quantity and costs in order to find a basis for measuring the service quality, says Georg Stadlhofer from Reality Consult, who organised symposia in Berlin, Munich, Düsseldorf, Frankfurt and Vienna according to this subject. “Being able to control and monitor service quality implies mature standardisation, that is to say Service Level Agreements”, Georg Stadlhofer gets it to the point.
 
 
 
 
Clearly communicate, after that control and monitor
 
Taking cleaning as an example, a Service Level may specify: use two different cleaning rags for the floor and the furniture, lift things off the table to humidly wipe it as a whole, empty and wipe out the wastepaper basket. At the same time the frequency of this cleaning process is specified. If the standards are specified in this way, they are consequently easier to monitor – as long as the cleaning area is not excessively large. An global corporation or a large real estate fund need to find an appropriate monitoring system as they have to manage several thousands of Service Level Agreements. Some companies use a random generator to choose single service positions (Service Levels) which are then inspected and monitored. The results of the monitoring procedure are entered into a monitor system such as a “traffic light”: Green, representing the satisfying points, yellow, highlighting critical points and red, is self-explanatory. Making use of this method will show the cleaning efficiency within a longer period of time. On the basis of that a bonus-penalty-system can be applied and justifying penalties, provided that this is part of the contract.
 
 
Further tools: Jürgen D. Hege, Director of Commerz Real AG, not only relies on internal monitoring, he has also implemented a Complaint Management for tenants. In the first this system requires that all data is available in the same consistent structure as contracts – otherwise it would not be possible to gain control of a portfolio of 240 objects in 20 countries.
 
 
Common goal: satisfied tenants
 
Not only principals want their users to be satisfied, also the agents strive for keeping tenants happy. Decreasing complaints reaching the owner’s Property Manager signify higher satisfaction. Therefore all agents at the symposia of Reality Consult rate communication as one of the key factors of success. Surveys, Complaint Management etc. seem to be appropriate instruments. Thomas Kiss, managing director of STRABAG Property and Facility Services even considers mediating between owner and tenant as one of his assignments.
 
The operative staff with the Service Provider represents the second crucial point. Due to the skilled worker shortage on the labour market Dr. Sasse AG has developed a comprehensive program for human resources development. Peter Praum from Gegenbauer Facility Management GmbH says that a trouble-free synergy of human and machine would be the best: having motivated and continuously self-improving employees on the one hand and professional IT tools and CAFM on the other hand. Latter eventually is needed for a profound record keeping system, e.g. for quickly resolving suits.
 
 
 
Another way to establish clarity right from the beginning is making use of the objective third-party view. Audits, independently verified certificates or external Property Managers are well-known instruments. These obviously are not favourable when it comes to financial aspects. Moreover Dr. Eberhard Sasse, director of the board at Dr. Sasse AG, named one of the most severe factors threatening service quality. Cost pressure has always been an issue.
 
 
Georg Stadlhofer, Head of Consulting
Reality Consult GmbH
 
 

FM Executive Series by Agile OAK

FM Executive Series Agile OAK

2010 REFM Mergers & Acquisitions Report

By JP Rodrigues, Director, Agile OAK in cooperation of Reality Consult and FacilityOne 

FM Executive Series Agile OAK

2010 REFM Mergers & Acquisitions Report

By JP Rodrigues, Director, Agile OAK in cooperation of Reality Consult and FacilityOne 

Strategic Fit in Real Estate and Facility Management

Influences - Adjustment - Contents

In order to successfully compete in a continuously faster changing market, securing and increasing its potentials in the long run, is becoming more and more important to organisations. Such a potential of success comprises real estate as a resource, which can nevertheless only be fully accomplished through the integration of a strategic framework. However, experience shows that often there is no real estate strategy within organisations. When such a strategy exists, it is often not in coherence with the overall strategy and overall objective of the organisation, thus resulting in discrepancies which lead to friction loss and non-fulfilment of real estate management expectations.

Often the real estate strategy is not in coherence with the overall strategy

In contrast, real estate strategy based on the organisation’s objectives can act pro-actively, create values, strengthen competitiveness and can therefore lead to long-lasting success. Consequently the strategy of an organisation is essential for reaching the organisation’s objectives. A coordinated real estate strategy therefore supports these objectives. This may often lead to uncertainty regarding what such a real estate strategy should consist of and how this can be coordinated within the organisation’s objectives, or how a strategic fit can be achieved. The following research focuses on this issue and describes possible solutions based on the strategic management doctrine.

Both external and internal real estate SWOT (strengths, weaknesses, opportunities, threats) analyses will enable realization of a real estate strategy yet to be defined. Strategic options in the life cycle of real estate objects, as well as competition-strategic and risk-strategic options of real estate management are visualised. Making use of existing literature models of strategic real estate derivatives and -developments, the “Strategic Alignment” approach as well as a real estate specific target system are combined in order to create a new approach. This separate approach allows us to develop a real estate strategy, matching the organisation’s objectives and to offer concrete advice regarding the respective models of strategic derivatives. Using the model to match and develop a real estate strategy for the organisation’s target is an instrument, which does not only allow schematic explanation, but by integrating a strategically matching real estate management, can also positively affect the organisation’s success in the long term.

Extract from Gernot Bleier’s master thesis (as part of the Facility Management programme) at Kufstein University of Applied Sciences, under the academic supervision of Peter Prischl, General Manager of Reality Consult. Gernot Bleier completed his professional training at Reality Consult in München. Since August 1st 2007 he has been a Consultant at the Vienna branch of Reality Consult. Further information on Strategy Fit in Real Estate Management can be found at gernot.bleier@realityconsult.com.

 

Influences - Adjustment - Contents

In order to successfully compete in a continuously faster changing market, securing and increasing its potentials in the long run, is becoming more and more important to organisations. Such a potential of success comprises real estate as a resource, which can nevertheless only be fully accomplished through the integration of a strategic framework. However, experience shows that often there is no real estate strategy within organisations. When such a strategy exists, it is often not in coherence with the overall strategy and overall objective of the organisation, thus resulting in discrepancies which lead to friction loss and non-fulfilment of real estate management expectations.

Often the real estate strategy is not in coherence with the overall strategy

In contrast, real estate strategy based on the organisation’s objectives can act pro-actively, create values, strengthen competitiveness and can therefore lead to long-lasting success. Consequently the strategy of an organisation is essential for reaching the organisation’s objectives. A coordinated real estate strategy therefore supports these objectives. This may often lead to uncertainty regarding what such a real estate strategy should consist of and how this can be coordinated within the organisation’s objectives, or how a strategic fit can be achieved. The following research focuses on this issue and describes possible solutions based on the strategic management doctrine.

Both external and internal real estate SWOT (strengths, weaknesses, opportunities, threats) analyses will enable realization of a real estate strategy yet to be defined. Strategic options in the life cycle of real estate objects, as well as competition-strategic and risk-strategic options of real estate management are visualised. Making use of existing literature models of strategic real estate derivatives and -developments, the “Strategic Alignment” approach as well as a real estate specific target system are combined in order to create a new approach. This separate approach allows us to develop a real estate strategy, matching the organisation’s objectives and to offer concrete advice regarding the respective models of strategic derivatives. Using the model to match and develop a real estate strategy for the organisation’s target is an instrument, which does not only allow schematic explanation, but by integrating a strategically matching real estate management, can also positively affect the organisation’s success in the long term.

Extract from Gernot Bleier’s master thesis (as part of the Facility Management programme) at Kufstein University of Applied Sciences, under the academic supervision of Peter Prischl, General Manager of Reality Consult. Gernot Bleier completed his professional training at Reality Consult in München. Since August 1st 2007 he has been a Consultant at the Vienna branch of Reality Consult. Further information on Strategy Fit in Real Estate Management can be found at gernot.bleier@realityconsult.com.