Partnership Performance in FMPartnership Performance in FM

BSRIA 23 April 2010

Martin Pickard CFM FBIFM

What is partnering?

Partnering in Business

FM - The Customers Vision

“We constantly seek to improve, and

acknowledge that our suppliers play a major

part in that process, sharing the goal of

world class customer service.”

“We expect all our suppliers to strive for a high “We expect all our suppliers to strive for a high

standard of performance and be guided by a

similar set of values to our own”

“We will seek to foster a joint approach with

key suppliers…and will provide constructive

feedback”

FM – The Suppliers Vision

• “We focus on creating supportive

relationships with our clients that enable

the delivery of exceptional services

tailored to their needs.“

• “We will go the extra mile for our

customers and ensure the best results customers and ensure the best results

possible by working in partnership with

clients”

• “We believe in proactive partnership, total

customer engagement and continuous

relationship management.”

FM – The Reality

• Confrontation

• Churn

• Mistrust

• Failure

“Generally the quality of outsourced staff is poor –

it’s a common perception in-house that these staff

would not find a permanent job in-house.

Frequently the management of the outsourcing

supplier keep information to themselves and take it

What Customers really say...

supplier keep information to themselves and take it

with them when they leave. They ignore reports of

poor performance leaving us to sort things out.”

What Suppliers really think…

“Customers are unreasonable, unfriendly and treat us

like dirt. They don’t want us to succeed at all. It’s like

they’re trying to trip us up all the time and they just

don’t understand the implications of some of the

things they ask for. Profit is a dirty word. They things they ask for. Profit is a dirty word. They

wouldn’t dream of treating their own staff like they

expect me to treat mine.”

FM Partnerships

“We’ve had the same local contractor for the last

twelve years. We retender every two years and

they keep winning it. We couldn’t negotiate a

renewal with them… We don’t trust them that

much!”much!”

The result

Division

Inefficiency

Conflict

CostCost

Lost opportunity

Lack of innovation

Failure

Why?

• Past experience

• Ignorance

• Familiarity

• The FM profile

• Cost pressures

• Incompetence

• Lack of structure

• Hypocrisy• The FM profile • Hypocrisy

• Stagnant management

systems

Collaborate

FM

Industry

SuppliersService

Providers

FMProfession

Customers

Consultants

Learn from Construction

Relationship journey

Collaborative

Value Creation

Co-creating

Confrontational

Mutual Trust

Compliant

Co-operative

Partnering

Bsi PAS 11000

PAS 11000 the worlds first Collaborative relationship management standard

i PSL Formed in 1990 by DTI now BERR and the CBI

i Mandate to develop, share, promote best practice in

Business Relationship Management

i 1994 Latham Report

i 1998 Egan Report

i 1999 Vision 2010

ii 2004 CRAFT programme launched

i 2005 BSI & PSL initiate development of standard

i 2006 BSI launch PAS 11000

i 2008 BSI initiates Corporate certification programme

i 2009 BSI certification pilot

i 2010 BS 11000

Bsi PAS 11000 – Collaborative Business Relationships

Prepare Partner

Awareness • Executive sponsor

• Business objectives

• Business case

• Identify focus

• Initial risk assessment

• Key individuals

Working relationship • Governance

• Partnering charter

• Joint objectives

• Processes and plan

• Joint risk management

• Measurement

Knowledge • Identify drivers

• Benchmark

• Knowledge map

• Strategy

• Risk management

• Exit strategy

Additional value creation • Define value

• Functional Improvement Teams (FIT)

• Continuous improvement process

• Innovation groups

• Staff development

• Future options

Plan Part

Internal assessment • Self assessment

• Constraints

• Skills / Processes

• Appoint a leader

• Partner profile

• Action plan

Staying together • Key Performance Indicators

• Performance Monitoring

• Health checks

• Improvement plans

• Dispute management

• Escalation

Partner selection • Assess partners

• Strength analysis

• MAP assessment

• Evaluate

• Select partner

• Joint objectives

Exit strategy • Set boundaries

• Monitor change

• Establish triggers

• Assess liabilities

• Manage knowledge

• Review future

Pan Industry

Public &

Private

Sector

Consistent

Platform

Collaborative

Benchmark

•Better engagement

•Underpins effectiveness

•Stronger processes

•Improved risk management

Benefits of a framework standard

Bsi PAS 11000

Efficiency &

Effectiveness

Resource

Development

Platform

Risk

Management

Processes &

Systems

Internal

•Improved risk management

•Neutral starting point

•Efficiency improvement

•Skills enhancement

•Sustainable relationships

The Cost of Quality

£m

Lost Opportunity

WasteThe Cost of

Failure

Time

Prevention Costs

Appraisal Costs

Failure Costs

The

Cost of

Quality

FM and Partnering

• Cost of failure multi £ms

• Requires commitment and vision

• Bsi PAS 11000 a big opportunity

• Needs leadership• Needs leadership

THANK YOU

martin@fmguru.co.uk