Michael R PriceMichael R Price

Chair Property and Facility ManagementHong Kong Institute of Surveyors

Group Estate ManagerSwire Properties Limited

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Are you a Surveyor?

Have you registered with the Committee?

Current day-to-day issues in Current day-to-day issues in Facility ManagementFacility Management

Issues you need to consider Issues you need to consider constantly.constantly.

THE ISSUESTHE 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.

CAPABILITYCAPABILITY

Staff Quality

Training

Processes

Service Delivery

Consistency

OPPORTUNITYOPPORTUNITY

Market for services

Marketing Internal External

Honesty

BENCHMARKINGBENCHMARKING

Should we benchmark - Always.

You need feedback.

Benchmark everything.

VALUE FOR MONEYVALUE FOR MONEY

Quality vs Cost.

Tendering vs Partnership.

Supplier choice.

CUSTOMERSCUSTOMERS

Their needs

Internal

External

OUTSOURCE or IN-HOUSEOUTSOURCE or IN-HOUSE

1. Why outsource ?

2. Control.

3. Expertise.

4. Core competencies.

5. Cost.

CAPABILITIES:-CAPABILITIES:-(1) STAFF QUALITY(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) (2) TRAININGTRAINING

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

Targeted, interesting, delivered properly.

In-house and outside expertise.

(3) (3) PROCESSESPROCESSES

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) (4) SERVICE DELIVERYSERVICE 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) (5) CONSISTENCYCONSISTENCY

Consistency in performance.

Consistency in high quality service delivery.

Consistency in cost control.

OPPORTUNITIES:-OPPORTUNITIES:-

(1) MARKET FOR SERVICES(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.

BENCHMARKINGBENCHMARKING

• 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 BENCHMARKWHAT SHOULD YOU BENCHMARK

Everything

Customer satisfaction.

Cost

Insurance costs.

Energy costs

Accommodation costs.

Churn costs.

VALUE FOR MONEYVALUE FOR MONEY

Good quality vs cheapest.

Partnership is better than tendering, you

must have the right “partner”.

Benchmarking / Compare.

YOUR CUSTOMERSYOUR 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 WHAT ARE YOUR CUSTOMERS LOOKING FOR ??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.

OUTSOURCINGOUTSOURCING

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 OUTSOURCING vs IN-HOUSE EXAMPLESEXAMPLES

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-HOUSEOUTSOURCING 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!Outsource what is right for you!

PROFIT or YOU KEEP YOUR JOBPROFIT or YOU KEEP YOUR JOB

High Quality = Customer Loyalty

Customer Satisfaction = Consistent Income

= Profit / Job Retention

SUMMARYSUMMARY

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