Presentation from BSRIA conference on Partnering in FM

1. Partnership Performance in FM
BSRIA 23 April 2010

2. Martin Pickard CFM FBIFM

3. What is partnering?

4. Partnering in Business

5. 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
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”

6. 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
possible by working in partnership with
clients”
• “We believe in proactive partnership, total
customer engagement and continuous
relationship management.”

7. FM – The Reality
• Confrontation
• Churn
• Mistrust
• Failure

8. What Customers really say...
“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
with them when they leave. They ignore reports of
poor performance leaving us to sort things out.”

9. 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
wouldn’t dream of treating their own staff like they
expect me to treat mine.”

10. 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!”

11. The result
Division
Inefficiency
Conflict
Cost
Lost opportunity
Lack of innovation
Failure

12. Why?
• Past experience • Cost pressures
• Ignorance • Incompetence
• Familiarity • Lack of structure
• The FM profile • Hypocrisy
• Stagnant management
systems

13. Collaborate
Industry
Service
Suppliers
Providers
FM
Consultants Profession
Customers

14. Learn from Construction

15. Relationship journey
Value Creation
Co-creating
Collaborative
Partnering
Co-operative
Compliant
Confrontational
Mutual Trust

16. Bsi PAS 11000
PAS 11000 the worlds first Collaborative relationship management standard

17. 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
i 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

18. Bsi PAS 11000 – Collaborative Business Relationships
Prepare Partner
Awareness • Executive sponsor Working relationship • Governance
• Business objectives • Partnering charter
• Business case • Joint objectives
• Identify focus • Processes and plan
• Initial risk assessment • Joint risk management
• Key individuals • Measurement
Knowledge • Identify drivers Additional value creation • Define value
• Benchmark • Functional Improvement Teams (FIT)
• Knowledge map • Continuous improvement process
• Strategy • Innovation groups
• Risk management • Staff development
• Exit strategy • Future options
Plan Part
Internal assessment • Self assessment Staying together • Key Performance Indicators
• Constraints • Performance Monitoring
• Skills / Processes • Health checks
• Appoint a leader • Improvement plans
• Partner profile • Dispute management
• Action plan • Escalation
Partner selection • Assess partners Exit strategy • Set boundaries
• Strength analysis • Monitor change
• MAP assessment • Establish triggers
• Evaluate • Assess liabilities
• Select partner • Manage knowledge
• Joint objectives • Review future

19. Benefits of a framework standard
Collaborative Bsi PAS 11000 Public &
Private
Benchmark
Sector
•Better engagement
•Underpins effectiveness
•Stronger processes Consistent
Pan Industry
•Improved risk management Platform
•Neutral starting point
•Efficiency improvement
•Skills enhancement
•Sustainable relationships
Internal
Efficiency & Risk
Effectiveness Management
Resource Processes &
Development Systems

20. The Cost of Quality
£m
Lost Opportunity
Waste
The
Cost of
Failure
Failure Costs
Appraisal Costs
The
Cost of
Prevention Costs Quality
Time

21. FM and Partnering
• Cost of failure multi £ms
• Requires commitment and vision
• Bsi PAS 11000 a big opportunity
• Needs leadership

22. martin@fmguru.co.uk
THANK YOU