Facilities Management Quality and User Satisfaction in Outsourced Services
Facilities Management Quality and User Satisfaction in Outsourced Services
outsourced services
Andrew Smith and Michael Pitt
School of the Built Environment, Liverpool John Moores University, Byrom Street,
Liverpool, L3 3AF, UK
Abstract
Facilities management as a profession should be used strategically to provide quality
working environments. The available quality management and performance
management techniques are reviewed, which can be applied to facilities management
service providers where facilities management functions are outsourced. It provides a
case that performance management is an essential element of the tendering process
and is necessary to enable continuous improvement in a climate of increasing
competition among service providers, many of which have diversified into many
different industry strands. It is also argued that there should be a shift in outsourcing
trends to an increased number of specialist service providers rather than the current
predominant model of bundled services. Office design is also presented as a strategic
tool in improving productivity and reducing absenteeism.
Keywords: quality, performance management, perceptions, outsourcing, user
satisfaction
Introduction
Facilities management is a diverse profession, the main aim of which should be to
provide quality environments, which are fit for the purpose for which they have been
designed. For Alexander, (1996) it is a total quality approach to sustaining an
operational environment and providing support services to meet the strategic needs of
an organisation.
FM is a constant balancing act between the competing pressures of time, cost and
quality. However, with ever-decreasing budgets and competition in the market place,
cost often becomes the prevalent factor. However, Wauters (1995) has identified that
reducing facilities costs does not automatically increase bottom line profits and points
out that unless savings are effected without impairing the organisations performance
dependent on these facilities, the opposite may occur, i.e. profits will fall.
It is possible to achieve quality whilst positively affecting the balance sheet. A quality
workplace can induce productivity gains in the workforce, improve workplace
satisfaction and act as a catalyst in attracting and retaining talented members of staff,
thereby increasing profits. In a time of increasing numbers of the workforce deserting
the traditional office in favour of home working, the provision of quality working
environments is becoming increasingly important.
However, it is the diversity of the profession that is one of the key barriers to the
provision of quality working environments. Traditionally facilities managers have
come from engineering backgrounds and may have a different focus to the new breed
of facilities managers who come from many diverse backgrounds, increasingly in soft
services such as catering, interior design or landscaping for example. A key challenge,
therefore, is for facilities management to tailor itself to the needs of these diverse
backgrounds. It should also be borne in mind that the facilities manager is not the key
customer. The customer is the user of the facility.
To provide a quality workplace, the customer must define their requirements clearly.
However, requirements tend to be defined by facilities managers, largely without
input from the building users. Does the facilities manager, therefore, know what is
required? Can a mechanical engineer, for example, know what catering requirements
to specify or what plants are best for particular offices? Likewise, can a caterer know
what Mechanical and Electrical maintenance strategy will be most effective? It
appears that greater interaction is required with the users of the facility in defining
requirements and desirables.
It is also difficult to cater for individual needs in terms of the working environment.
For example, while one building occupant may feel cold, another finds it too warm;
one may want the light above their desk turned off, while their neighbour feels it is
too dark. This is an inherent problem in open plan offices, which are now the norm.
Therefore, in considering quality working environments, consideration must be given
to how individual needs can be catered for and building occupants given greater
control over their immediate environment.
This paper considers trends in outsourcing and how facilities management service
providers can meet the requirements of the industry by implementing quality and
performance management techniques into their processes.
Facilities management can learn a great deal from the hospitality industry in terms of
providing customer centric FM. Over the last decade attempts have been made to
relate TQM to facilities management.
There is now pressure for change and improved quality in facilities management
which has come from external sources by well-informed clients (Pheng, 1996) and
consumers are now better able to give clear objectives to service providers (AatsaloSallinen, 2006). Quality management is, therefore, essential to the FM industry in
order for it to be competitive and to maintain the identity of the FM function as a key
strategic business tool.
For TQM to be successful there must be support for the concept from top-level
management, which must act as a facilitator in what is an enabling process (Grigg,
1996). It must, however, include all people at all levels and in all functions (Pheng,
1996).
The key to a successful quality system is in the interpretation of correct quality (Park,
1998). This does not necessarily mean the best possible quality as this would be
uneconomical but the service or product must match the users expectations in terms
of accuracy, durability, serviceability and ease of operation (Park, 1998). For example
if we compare a Formula One racing car to a family saloon, the perceived quality is
different, however, both suit their customers requirements in terms of the quality
demanded. Quality considerations for the Formula One car might be speed,
aerodynamics, driver protection, space for sponsors adverts while the considerations
for the family saloon are more likely to be reliability, low cost and comfort.
With ever-increasing competition among facilities management service providers, it is
essential for providers to implement quality management processes to continue to
meet and exceed expectations in order to differentiate their product in an increasingly
service saturated market. Many service providers are moving towards a diverse range
of services and organisations that have traditionally offered specialist services are
now becoming general facilities management organisations. The question of the
subjective nature of value and the consequential need for a bespoke service offering
within FM is therefore of paramount importance.
Current outsourcing trends in facilities management are pursuing the non-specialist
route of bundled services as discussed below. However, from the service provider
viewpoint it is possible to provide a higher quality service by focusing on the core
service, i.e. a specialist service. For the service user it is surely preferable to receive
quality service from a number of suppliers rather than a range of mediocre services
from one non-specialist supplier. In generic terms this defines the standard value
proposition.
Benchmarking
One tool, which is used extensively to gauge quality of service provision and bring
about performance improvements is benchmarking.
Balanced scorecard measures are built around the following four perspectives
(Sarshar, 2006):
It is also important for the Balanced Scorecard to be reviewed and, where necessary,
updated on a regular basis if the scorecard is to remain relevant and useful
(Amaratunga and Baldry, 2004).
An Australian study (Brackertz, 2006) related physical performance and service
performance using the Logometrix tool, which has a similar approach to that of the
Balanced Scorecard. The research used empirical data to investigate the contribution
of physical performance of community facilities to the strategic aim of delivering high
quality services from these facilities.
The Logometrix system enables internal benchmarking of facility performance and
strategic decision making about facilities (Brackertz, 2006). Logometrix considers
service, physical, environmental, community, utilisation and financial perspectives of
facility performance, each represented by a KPI (Brackertz, 2006). These perspectives
are shown in figure 3.
The Delphi exercise was carried out in four phases as follows (Hinks and McNay,
1999):
Phase 1: Definition of the research problem The researchers undertook structured
group interviews with members of the premises department, followed by individual
structured interviews with each senior manager, focusing on their current performance
assessment techniques and their perceptions of FM priorities. A literature review was
also conducted to identify any existing performance assessment tools or indicators
could be applied or adapted. Following the literature review it was decided to produce
a bespoke set of performance indicators, the challenge being to address all the issues
identified in the literature review in one tool. Due to the lack of a comprehensive
alternative, it was agreed that a bespoke tool would be developed using a bespoke set
of KPIs, using a combination of premises department and business customer views.
Phase 2: Selection of KPIs A literature review was used to identify a list of 172
indicators in an arbitrary manner to avoid leading the group. From this long list of
potential indicators, the Delphi group were tasked with selecting a comprehensive and
coherent set of performance indicators. This list was to be as short as they deemed
possible. Group members completed individual questionnaires to assess the
importance of each KPI. Each respondent was asked to identify whether they believed
each KPI was essential, desirable or of tertiary level importance. Only those identified
as essential were taken forward for discussion by the Delphi group and following
discussions, a final set of 23 KPIs was selected.
Phase 3: Prioritisation of KPIs Each individual prioritised the selected list of 23
KPIs anonymously using a scaling measure before discussion by the group to reach a
consensus.
Phase 4: Rating of FM Performance In this stage the group rated the current level
of FM service against each KPI against a semantic scale including unsatisfactory,
satisfactory, good, excellent and world class performance. The results were
differentiated between customer views and premises department views and are shown
in the draft tool developed by Hinks and McNay (figure 4).
It appears also that among facilities management teams there may be a perception that
the department is looked upon in a negative light by its customers. This has a lot to do
with the fact that many facilities managers only deal directly with their customers
when there is a problem or a complaint is received. While it is conceivable that if FM
services are working as they should, the customer should have little need to interact
with the facilities team, regular feedback from well-informed customers may
highlight positive cases which could help to change this perception. Furthermore,
without feedback from customers, it is unlikely that the services provided will meet
their requirements. In this respect the facilities management profession can learn a lot
from the hospitality industry in terms of customer service and if it is to be recognised
as a strategic discipline, concepts employed in other sectors and industries should be
considered in an outward-looking approach.
Perceptions of how any organisational unit, not necessarily the facilities management
team, is looked upon within the organisation can also relate to the physical
environment. For example, the facilities management team of a major public sector
organisation known to the authors is located in the basement of the building it
occupies. Certain members of the facilities management department have expressed
perceptions that this causes the rest of the organisation to literally look down upon
them.
It can be seen, therefore, that perceptions play an important role in users overall
experience of the facility. Perceptions must be an important consideration in
providing facilities management services. This should include analysing user trends,
i.e. defining how the facility is used in greater detail than tends to be the norm.
However, it can be problematic to provide services to individual requirements and
perceptions. Further research is required in the area of user perceptions to define
methods to adequately provide for this idiosyncratic consideration.
Outsourcing
In recent years there has been a trend towards outsourcing facilities management
services. There was a slowing of growth in outsourcing in the late 1990s (Barrett and
Baldry, 2003). However, according to Falconer (2006) this is still increasing and
buyers and suppliers are becoming increasingly sophisticated. Most facilities
management services can be procured externally and most companies will outsource
some facilities management functions (Barrett and Baldry, 2003).
The main reasons for organisations to outsource their FM services tend to centre
around reducing costs, enabling a focus on the core business and benefiting from the
expertise provided by specialist suppliers.
A range of outsourcing options are available, the starting point being to outsource one
service, following progressively until all services are outsourced by individual
contracts. Some services may be grouped together and placed with one contractor; a
concept known as bundling (Barrett and Baldry, 2003).
will enable the service provider to achieve a unique position in the market and
become the benchmark.
Research has shown that the indoor environment in particular is regarded as a major
problem within the scope of building management, maintenance and design
(Roelofsen, 2002). Indoor air quality is one of the major areas of dissatisfaction
amongst workers (Atkin & Brooks, 2005).
Conclusion
This paper has highlighted the requirement for facilities management service
providers to implement quality and performance management techniques in order to
meet the needs of corporate clients.
The facilities management profession as a whole still needs to have a greater focus on
quality but this requires top-level management support and accurate requirements
defined by customers. Value for money will be achieved by reaching an appropriate
balance between time, cost and quality.
In the current climate of innovation and increasing competition among suppliers, it is
imperative for facilities management service providers to implement quality
management. The manufacturing industry has achieved much success by introducing
quality management techniques. Although it is more difficult to translate these
techniques across to the service industries such as facilities management it is possible
and there is now a body of literature to support this. Again, there must be top-level
support for any initiatives and quality management must be used to check that the
correct level of quality is being provided in line with that defined by the customer.
Benchmarking was highlighted as an appropriate tool to gauge performance in
comparison to competitors as part of the overall performance management approach
of the service provider.
The performance management techniques employed must be appropriate to the
service provider and also measurable. These need to consider a range of factors rather
than focusing purely on cost or elements which are easy to measure. The balanced
scorecard was presented as an appropriate tool to represent an organisations
performance at a strategic level. The flexibility of this tool makes it appropriate for
use by a range of different organisations in the public and private sectors and,
therefore, particularly useful in a facilities management setting. Logometrix is a
similar tool to the balanced scorecard and another suitable tool identified is the
Management-by-Variance tool.
User perceptions of a working environment have been shown to be of perhaps greater
importance than reality. Further research is required in this area in order for
appropriate consideration to be given to user perceptions of the service provided. This
service requires to be individualised as far as possible.
The current trend in outsourcing appears to be towards bundling services with general
facilities management suppliers. It is argued that this may change in line with the
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