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FM in Action


deployed in 1995 and are based primarily on commodity purchase techniques. The spirit and style of contractual measurement currently used fuels the seam of discontent (figure 2) and current contractual lengths serve only to harden commercial and supplier mistrust.


Measures


The measures and the judgements (point of failure or success per measure) which determine the performance of the supplier are absolutely governed by CARS; as are the implications (positive or negative) to the supplier of these judgements. The measures are common across all FM contracts no matter what sector or environment, albeit that the judgement and the implications vary client by client. These measures are outlined in Figure 3.


‘Maturity indexing’ Where a measure is subjective, maturity indexing converts that subjectivity into objectivity which can then be applied in contracts.


Business Driver FM Relationship Expectation Cost of spending a £1


Ratio: Management Vs Delivery


Cost - the lowest possible cost to the business


Efficiency – the greatest level of efficiency possible


Spend Under Control – where a supply chain is deployed


Maximum Value per £1 – Revenue Vs Capital depreciation


Demand Control – control what is spent


Client Relationship Management (CRM) process efficiency and effectiveness


Improvement/Innovation Process Maturity


Agility – Maximum Flexibility


Proactive Flexibility Development Process maturity Compliance


Risk – Risk management and mitigation


Capabilities Legislation Policy Brand Response Strategy


Competence


Resource knowledge, experience and qualification


Business Practice Management (of risk)


Capacity Experience Environment Viability (survey)


Satisfaction User Owner Figure 3 - The Measurement Methodology Owner contentment Key Contractual measure Catering is the cost of taking £1


This is the contractors directly employed resources


Procurement efficiency of the supplier in engaging their supply chain using maturity indexing


Where Capital is deployable, this would be the cost of capital and capital depreciation versus Revenue expenditure


This Measure is not contractual, but necessary for the FM platform using maturity indexing


The measurement of Innovation and improvement processes using maturity indexing


The measurement of Benchmark and development processes using maturity indexing


Condition of Purchase Audit Audit Turn Around Time


Refers for the service strategy in place for each service line Audit


Business dependencies of FM and impacts resulting from FM


Condition of Purchase Condition of Purchase


People productivity in relation to the environment (depending of survey content this would be solely a measure of the supplier of could be shared with the client)


Business owner Client Measure


Condition/criteria of purchase





Success for any FM platform, therefore, must rest in how efficiently it spends money


Best practice techniques have been used by a range of industries to measure maturity of services delivery for some time and are now common place. The IT industry uses models such as IT Infrastructure Library (ITIL) to define their best practice and model operating system whilst the Capability Maturity Modelling Integration (CMMI) is globally established as the proven approach to assessing maturity and is extensively deployed in manufacturing. Both are solid and well known examples of this approach.


Further information


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Measures & Judgement Remarks


FACILITIES 149


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