ADVICE & OPINION
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Retendering is often the fi rst port-of-call for facilities managers who want
to understand whether they are getting value for money from their service
providers. John Brownless, Partner at LitmusFM looks at the alternative
option of benchmarking
In a post-pandemic environment,
facilities managers face significant
changes with increasing economic and
environmental pressures. Many FM
service providers play a decisive and
positive role - especially when they
are embedded within an organisation
- by suggesting, implementing
and encouraging the adoption
of best practices, technological
improvements and alternative ways
of working.
However, for many FMs it is di icult to
understand if they are receiving value
for money from their current FM service
providers compared to other similar
settings. Even for those establishments
which are achieving top performance
levels, there can still be savings and other
performance opportunities identified.
As businesses start to recover from the
uncertainty of the crisis, ensuring the best
value is being achieved is more critical
than ever. But what are the options?
16 JULY 2020
Retendering is one, but this can
mean starting over with a new supplier
relationship rather than building on the
current relationship. This isn’t always the
answer as it may not be a relationship
issue; more an issue with the systems,
processes or agreed service levels in
place. It also o en causes a level of
disruption – to both workflow and
employees.
Every time a retender takes place,
facilities managers start afresh and have
to allow time while the new service
provider gets to grips with the operation,
systems and ways of working. This
doesn’t happen overnight. It also has
potential to lead to significant disruption
for employees at a time where they too
have faced uncertainty around their
jobs and what the future holds postpandemic.
Rather than creating
more disruption, the focus will be on
rebuilding and creating a stable future
once again.
BENCHMARKING
This is where benchmarking comes in.
The use of benchmarks o ers a triedand
true approach to homing in on the
e iciency and quality of both combined
and individual facilities management
services. Benchmarks help make
informed decisions; decisions that will
encourage stability and strength moving
forwards.
Like I’ve said, for many facilities
managers understanding if value for
money is being received is hard to
understand. But this doesn’t have to be
an unknown. There are consultancies
that have years of experience, data and
knowledge and can help ascertain if
value is being delivered.
We’re not just talking about cost.
Yes, cost plays a significant part, but
benchmarking goes much deeper than
simply pennies and pounds; detailed
benchmark analysis is proving to be
critical to the successful management
of broader transformational change,
including cost management initiatives,
reengineering of business processes
and implementing quality control
measures.
Benchmarking also focuses on how
to better the partnerships already in
place. Partnerships that were built
before the pandemic, remained
throughout the crisis and continue
post-crisis. Cultivating long and lasting
relationships with service providers
brings far greater reward than switching
to a new service provider constantly. If
both parties work collaboratively and
are committed to each other’s success
over the long term, it is likely to bring
much richer results and innovations.
Another benefit that benchmarking
brings is an understanding of what
others in the sector are doing. Drawing
learnings and comparisons from what
others are doing, helps ensure new
ways of working are successful and right
for an organisation.
It’s also essential that once
benchmarking is complete and
operations are streamlined, that
they continue to be measured and
monitored on an ongoing basis so there
is confidence that they are delivering. The
mantra when undertaking a benchmark
project should be: benchmark, negotiate,
measure and monitor.
Benchmarking is for all establishments,
from those in need of dramatic overhaul
to ensure a prosperous future, to those
performing strongly and only needing
small tweaks to their operation. Where
things are at now, doesn’t need to be
where they are at a year down the line.
Taking stock, stepping back from the
day-to-day and taking the time to review
where changes could enhance the overall
performance, will help business rebuild
and regrow as we all look ahead to the
future.
CASE STUDY
A large aerospace company that employs
34,800 people and works with more than
7,500 British companies had one single
FM supplier. The contract had been in
place for approximately 20 years and had
developed and evolved over this period.
As a result, internal discussions had taken
place around “best value” and whether
the FM services should be market-tested.
The Litmus Partnership was asked to
carry out a Total Facilities Management
Services review and audit of the existing
contract. The brief was to review and
carry out benchmark audits across the
entire UK sites with the aim being to carry
out the audit in a phased approach due
to the size and geography of the locations.
The first stages were to review the
current solution and then capture and
evaluate the FM services within the south
of England, which comprised of over
31 sites. The FM provider was asked for
the current specifications and costs to
enable benchmarking against the sector.
To enable credible benchmarking data,
a series of national survey data and a
Litmus database based upon 25 years
of procurement management from over
2,000 FM tenders was consulted.
Following the completion of each stage
of the review, the client was provided with
a detailed report, providing a clear view
of the value they are receiving from their
supplier. This is enabling the company to
have a clearer FM Service strategy for the
future, which has enabled it to integrate
the approach to the delivery of FM
services into the overall Estates strategy
going forward.
FAST FACTS