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Marketing Facility Services within Your Company
Every facility management employee is in a position to market facility services in their contact and conduct with customers. In this respect, customer service is vital. The terms "marketing" and "customer service" are not synonymous, however. While customer service provides opportunities to reinforce positive images of a facility management department, marketing involves first researching who your customers are and then selling and promoting facility services to them. The main responsibility falls on the shoulders of the facility management department leader. All facility managers should understand the following basic concepts of marketing:
• • • •
Know the market Know the facility management department's strengths and weaknesses Develop a marketing plan that serves as a road map Recognize the importance of quality customer service
Know the Market
If a facility management department is one of the administrative services supporting the core business departments, it is unlikely that much thought has been given to marketing the facility management department. Instead, your market was guaranteed: corporate customers had to get facility services through the department. Today, many facility management customers are given the option to go elsewhere for facility services. Facility managers now compete with contracting firms that have developed considerable marketing skills. In recent years, facility management customers have become quite sophisticated. They are smarter, better informed, and far more cost conscious. Many have substantial experience in marketing their own products and services and expect others to similarly market their goods and services. They may know as much as we do about some topics (indoor air quality, accessibility for the disabled, or CAD systems, for example).
Know the Facility Management Department's Strengths and Weaknesses
To develop a marketing plan, it is important to identify the marketing elements you already have in place. Your greatest asset is the range and magnitude of customer contact. There is a fundamental maxim of customer service that applies particularly well to facilities marketing: "If you're not serving the customer, you'd better be serving someone who is."
Facility managers should know the skills of their staff. Every staff member makes an impression on a customer in every transaction, whether it is by telephone, in person, or in a report. For marketing purposes, every worker should understand the customer. Mechanics, custodians, and housekeepers who make contact with customers may exert more influence on them than higher-ranking facility management employees who are seldom seen. Facility staff who feel connected to the department's mission will see value in their contribution. American Airlines found that by communicating to their cargo handlers that profits would increase by $100 million if they could put one more piece of cargo on every flight, the employees understood that they were carrying their customers' business.
Develop a Marketing Plan
First and foremost, there must be a marketing plan, and that plan can be organized around the following basic steps.
Conduct market research—Know the characteristics and needs of your customers; know about the service of your competitors. • Promote services—evise a marketing plan that matches services with the right customers. A marketing brochure explaining facility services is a tool now widely used, and it can be customized for different customers. • Keep customers informed—Talking to customers directly provides an opportunity to inform them of upcoming developments that may affect them, such as new regulations. This enables you to apply another basic marketing maxim: Prepare the market for change. By eliminating surprises, you help your customer and become an ally. • Evaluate service delivery—Ask customers for feedback on service delivery. In doing so, you can diffuse potentially damaging misunderstandings about facility services, especially on sensitive issues such as indoor air quality. • Create a website—The Web allows users to download standards, post construction schedules, standards forms such as the PRP, and to post surveys/questionnaires for research/ benchmarking purposes. To implement the steps mentioned above, an overall marketing strategy is needed. This strategy incorporates several key elements that form the backbone of an effective marketing plan.
Recognize the Importance of Quality Customer Service
As the struggles for market share intensify, workers in all companies have been besieged with entreaties from their leaders to be sensitive to their customers. This issue has particular urgency for facility managers, whose customers have become increasingly aware that they have choices of where and how to obtain facility services. In many companies, executives openly permit departments to shop for facility services, putting corporate facility management departments in direct competition with outsourced providers. Excellent customer service is essential to maintaining a strong, on-going relationship between a facility management department and its customers. If the bond is strong, the customers are more likely to feel that the facility management department knows them and their needs so well that they don't want to change relationships. Following are some strategies that will help keep the relationship between the customer and your facility management department strong.
Staff as a Selling Tool
One strategy is to see your staff as a selling tool. The Walt Disney Company refers to all their employees-from the head of the company to the person sweeping the sidewalk-as cast members. Disney believes that cast members should treat each other as guests and insists that everyone behave accordingly. The magic at Disney flows throughout the organization directly to its paying guests. Disney calls their approach "spreading 'pixie dust.'" The formula is simple:
The pride comes not just from being part of the organization but from respectfully treating, and being treated like, the primary customer.
Although few people know intuitively how to provide the best service possible, rarely do companies invest in training their employees in customer service. An exception is the Marriott hotel chain, which has trained 70,000 employees to better serve the needs of their customers. Proper training in how to serve fosters creative and imaginative solutions. Employees begin to see how the customer views them, the service they provide, and the unit they represent. Spending time in the customer's shoes is one of the best ways to understand how to serve the customer best.
Two maxims readily apply to the area of tracking, or monitoring: "Manage what you measure" and "Don't expect what you don't inspect." Rewarding good performance reinforces appropriate behavior and communicates to the organization that customer service is important. This may sound simple, but it is surprising how many organizations do not have a method of assessing the impact of what they do. Measures of success should be expressed in monetary value to the company. When corporate management wants to know how the facility management department contributes to the corporate bottom line, provide data that document successful project completions and customer satisfaction. This article was excerpted from BOMI Institute's Fundamentals of Facilities Management textbook required in the Facilities Management Administrator (FMA) designation. For information on this course or additional courses offered from BOMI, please call us at 800-235-2664 or visit www.bomi-edu.org.
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Products and Services Recent industry developments that promise to provide facilities managers with significantly upgraded or completely new products.... Regulations and Government.. and organizational matters. The current question will run through the end of October. as provided by Whitestone Research. A summary of ideas exchanged by FMs on how they are using today's technology. Significant contracts and commissions affecting the facilities management industry. Question of the Month FMLink conducts a monthly poll on an item of current topical interest. The latest newsworthy developments in FM organizations. FMLink also receives news from several other sources. FMLink News Sources. Most FMLink news comes directly from the source. Send FMLink a suggestion for Question-of-the-Month.News Developments. See his vision for IFMA and how he sees the FM profession advancing to the next level. Late-breaking news on regulations and government activity that affects facilities and the people who manage them. See results from previous Questions-of-the-Month.. Building Cost Indexes Monthly updates on current building cost indexes. e-mail and snail-mail addresses. The idea exchange took place at eight World Workplace conferences: Fall 2010 Fall 2008 Fall 2007 Fall 2006 Fall 2005 Fall 2004 Fall 2003 Fall 2002 Fall 2000 .. Associations and Organizations. voting. company name. bylaws. Results of the poll will appear next month... and emerging trends.. News on association business. everyday practice.. and if it gets used. Features Special Reports.. phone. either a press release or its Web site. Click here to read FMLink's exclusive interview with Tony Keane.. Contract Awards. IFMA's new President and CEO. we'll send you $25! Be sure to include your name.
Benchmarking Each month. see a new article on how benchmarking is measured. This is not the time to throw our hands up in horror at the possible loss of physical stores. or find items that might be out of stock. the retail industry is seeing the shift in sales from 'bricks to clicks' with over 10% of all retail sales (excluding fuel) made on line (according to the Office of National Statistics in February 2012). often the barometer of disposable income and thereby a visible measure of GDP. or request ordering information. Provided through courtesy of the U. a compilation of recent news stories on FMLink devoted to sustainability. There are sustainability feature articles written by the United States Green Building Council. The high street. purchase heavy items online with free delivery. How To A series of facilities check lists and practical step-by-step guides. Best Practices. Clicks for bricks Issues facing FMs with a retail portfolio. Case Studies Professional research and analysis provided to FMLink by our sponsors. Sustainability This section comprises information that focuses on conserving our natural resources.S. Internet sales are last years' phenomenon. Not only does it enable consumers to shop on impulse wherever they are. Sustainability and Benchmarking.. and how technology can help balance demands Richard Singleton SEE US ON: SHARE: Richard Singleton takes a tour of the particular issues facing FMs with a retail portfolio to manage.White Papers Professional reports and guides provided to FMLink by our sponsors. presented by BOMI International.. This section is presented by Facility Issues. General Services Administration. Best Practices Best practice policies and success stories from across the U. Notwithstanding the obvious impact of the economic downturn. but they can use their mobile device while in-store to go online and to compare prices. Savvy retailers are using this new technology to help integrate online and traditional shopping — driving consumers to the . and believes that technology can help balance demands. Browse through recent articles in prominent FM publications. and a sustainability directory. Magazines and Periodicals. and presentation of actual data. particularly for maintenance provision. Mobile commerce has merged the convenience of online shopping with the benefits of visiting a physical store. how to use and apply data. Federal Government. featuring helpful information for managing facilities. Contact Page for Featured Articles published on FMLink Contact information for all magazines published on FMLink. has been paraded across our screens as the embodiment of how much tougher the economic situation has become over the last few years. the latest trend is m-commerce or transactions using a mobile device.S. as well as for featured articles from How To. The retail sector is finding itself in the middle of a media storm.
not just because the manager of the store who reports the requirement is unlikely to hold the budget or have the authority to authorise the work. The only new consideration is the energy efficiency. There is undoubtedly a logical approach to both planned preventative maintenance and life cycle management for retailers. and level of maintenance required to operate within the strategy. They can also be in different types of locations. The portfolio Units can range from the small to several thousand square metres spread across a wide geographic area. When equipment is critical to the retailers business. Not only does the diversity of location require a maintenance schedule that reflects those different needs but there is also the individual store strategy to consider. in a shopping centre. but because reporting and understanding costs and budgets in real time are essential in what is a fast moving and dynamic environment. whilst those in shopping centres may have certain aspects of maintenance covered by the in-centre service charge. Take stores within airports as an example. a windswept hill. Most important is to ensure that the brand is protected. However managing the programme without a robust IT system can make the job unwieldy. From that a maintenance plan is drawn up that establishes parameters around budget allocation. Life cycle management When it comes to life cycle management the situation is complicated for retailers by the fact that planning to stay in a particular location is often difficult to do beyond a 10 or even five-year period. for example on the high street. The maintenance schedule is all about balancing short term need with the life cycle cost of running that particular store. but more importantly data and analysis of cost and service . For most stores the benchmark is compliance and protecting customers within the store. These supplementary security checks and training are not required on the high street for example. length of lease on the store and the condition of the estate. The chances are that the retailer will go for equipment that may be reliable over a shorter period of time and as a result more cost effective as they do not need to consider the long term performance. as well as the cost of repair. an airport or other travel hub. However the biggest challenge is managing and tracking cost. they can be in the salty air of the coast. Managing retail properties from an FM and property perspective has always been challenged by the marketing-led approach to fit out. As equipment becomes dated energy usage increases. The standard calculations of balancing the reactive maintenance costs over a 25-year period against spend on new capital equipment just doesn't stack up. but take into consideration that a failed light fitting or dirty walls can affect brand perception and will add those as priority tasks. Most retailers establish a hierarchy of stores based on profitability. Every member of the maintenance team will require airside and landside passes. This often results in regular replacement of equipment as the impact on sales can be too costly to risk non-performant equipment. The result is that the FM provision has to be nimble and adjust to changing trading conditions and seasonality. The physical presence of the brand is being recognised as an important channel for engaging customers. It is essential that any service provider working with the retailer understands the core business so that the proposed life cycle management plan reflects the trading priorities. for example air conditioning for chemists to keep the drugs at temperatures below 25 degrees or freezers for food retailers the life cycle argument has to take into account lost sales due to breakdown. or a congested town centre. These are spaces that trade through their space so decisions are made based upon consumer appeal and brand standards. This diversity and scope creates a headache for the property team as there can be no one solution applied across the estate. As with many businesses some retailers will be considering the impact of increased energy use within the context of the CRC whilst others will be considering the impact on the bottom line. All is not lost. just not the only one. Similarly. or on the edge of town. The key is technology Using an IT infrastructure that reduces duplication and creates a more efficient management process can provide the retailer with not only operational transparency. criticality to the brand.physical store. and service delivery on what can be a diverse and sometimes unpredictable estate.
The philosophy of clicks to bricks can be applied not just for consumer shopping but to maintenance management of those physical stores. more efficient businesses. The system is in effect the engine for the help desk so that requests are centralised but audited to point of origin. maintenance tasks can be requested in more than one way.com based on a system SGP developed with another client for their pubs. On the subject of helpdesks. Retail managers can review which jobs are logged and where they are in the process as well as easily escalating an issue if required all in real time. Of course this means that the groundwork in setting up the system can be quite extensive but the reward is that once in place the system supports the needs of the business in a comprehensive way. From a property and FM perspective there is a wealth of possibilities to supporting those retailers to become leaner. Richard Singleton is Commercial Director. As access to the internet pervades. The net result is a smoother more reliable and efficient process. On-demand ventilation with energy recovery can help students concentrate and learn better SEE US ON: SHARE: . On the other hand the planned maintenance requests can be requested from a single source yet they need to be aligned to the asset register for each store. and highlighting best practice in Europe and the USA. A new skin. SGP Property and Facilities Management As the UK's leading FM title. PFM has been reporting on facilities management in the UK from its beginnings. As with shopping itself. These questions are asked to allow the system to pinpoint the selection of the appropriate supplier and Service Level Agreement (SLA). the nature of the interface between on site customer and the central team is changing. At SGP we have taken the step of creating a maintenance request system for store managers called fixmystore. The on-line tool which is designed to reduce the time spent by retail management in managing maintenance requests. Priorities for each store including spend thresholds and authority levels can be pre-programmed so that when requests come through they are either processed quickly or held until further budget or authorisation is available. This is essential for the reactive requests that are the most diverse as they come from different locations. provides the look and feel appropriate for the business. As with every other sector there are challenges for retailers to remain competitive. The questions relating to the job-raising process are tailored to the specific requirements of the retail managers and the in-house property team. requests for maintenance can be made on-line.performance with which to make decisions. which was jointly developed with a large retailer. The system pulls all of these requests in to one central location and then is able to generate reports based on the total picture of reactive and planned maintenance.
energy is needed to provide top-up heating to the fresh air brought into the building in winter or it is simply exhausted to outside when it could be put to other uses in summer. Higher levels of CO2 reduced the attention span of students. as Nygel Humphrey explains. This type of system extracts the energy from the warm. in turn. On-demand ventilation with energy recovery offers a far more energy efficient solution compared to natural ventilation in schools. Building Bulletin 101 also requires natural ventilation in schools to achieve an air flow rate daily average of 5 l/s per child. Because there is no capability to recover heat or coolth in a naturally ventilated school. stale air taken from classroom areas before it is exhausted to outside whilst fresh. supplying or extracting air only when and to the level it is required. drives the fan to the required speed to deliver the airflow and respond exactly to classroom conditions. mechanical demand ventilation with energy recovery is the comprehensive air quality answer for schools. The inclusion of a minimum level (no minimum level is specified for mechanically ventilated schools) is a tacit admission that natural ventilation struggles to achieve the daily average and maximum capability levels required. The energy recovery process is proven to utilise up to 94 percent of the heat energy which would otherwise be wasted to outside. It specifies limiting CO2 levels within teaching and learning spaces to 1500 ppm. CO2 levels in UK schools have frequently been measured far in excess of these levels. CIBSE recommends a CO2 concentration of no more than 900 parts per million (ppm) to achieve a medium quality of air. were as a result featuring ventilation rates with CO2 levels exceeding targets. incoming air is preheated via the high efficiency plate heat exchanger and supplied into the classroom. However. research from Reading University and University College London in 2009 revealed that new energy efficient schools designed to be more airtight to reduce heat loss. Demand ventilation works by responding to the exact ventilation demands of a room. Building Bulletin 101 provides the regulatory framework for the adequate provision of ventilation in schools and the design of school buildings to meet the ventilation requirements of both The School Premises Regulations and the Building Regulations Part F (Ventilation). Sensors communicate with the main unit which. integrate 90 percent energy recovery into the ventilation system. a minimum level of 3 l/s and a maximum capability of 8 l/s with teacher intervention. In contrast. The latest on-demand ventilation systems such as Sentinel Totus Demand Energy Recovery Ventilation (D-ERV).Ventilation in Schools Pupils' concentration and learning is better in well ventilated classrooms. The system is activated according to sophisticated control and sensing options. . adversely affecting their learning ability. Being able to achieve just the minimum air flow rate level under Building Bulletin 101 will only lead to air quality issues down the line in the classroom. with no teacher intervention required. Air Quality has a direct impact on learning.
however.83 kW/h. One major concept with all Green technologies is to weigh reduced environmental impact during manufacturing and installation versus service life. should be used. The Benefits of Green Roofing Green roofing can lead to energy savings. Seaverson. And that's with the fans running on the mechanical system! On a recent project in Scotland. reduce environmental impact. there are many types of Green roofs. you may be confused about what Green roofing really is. SEE US ON: SHARE: Because of their contribution to sustainability. A night-time purge facility takes heat from the room overnight in the summer to reduce start up temperature/loads and help cut over heat from non air conditioned spaces. Comparative studies based on an outside ambient of -4ºC and a desired room temperate of 18ºC. Instead. a solar-panel roof is considered a Green roof even though it does not include landscaping. Eric J. This one is atop the Georgetown University Intercultural Center. Branch Unless your specialty is roofing. The TOTUS system also incorporates interlocks for associated heating and cooling equipment installed to optimise energy recovery potential and eliminate any possibilities of systems conflict. Because the membrane systems are constantly exposed to moisture. The TOTUS system is reducing energy demand so significantly that the original requirement for a parallel upgrade of the school's boiler systems has been cancelled. because the overburden layer composed of growth materials and plantings must be completely removed to replace and repair the membrane system. such as photovoltaic energy cells installed over a roof system. replacing a Green technology system after only a few years may not be very Green. if natural ventilation is used. the technologies used to Green a roof are not necessarily new.An automatic summer bypass takes advantage of any free cooling available when the ambient temperature is below the room design condition. one thing is clear: Green roofing provides organizations with excellent opportunities to save energy.E. The term Green roofing refers to landscaping installed over a weatherproofing system. typical in Spring and Autumn. conventional roof systems may not be an appropriate selection. . plaza waterproofing systems. With Green roofing. the result will be a total energy lost to ventilation of 4. Whatever type of Green roofing is being referred to. and it can also be applied to the use of Green technologies. specifically designed and manufactured for constant moisture exposure. helping to cut the time and cost of installation as well as the carbon footprint of the school. an air flow rate of 5l/s per child show that it will ensure that CO2 levels will not exceed 1500ppm. the impact of replacing a system is significant. often pertaining to landscaped roofs.04 kW/hr per classroom whereas the equivalent figure for demand ventilation with energy recovery will be just 0. and highlight the company's concern for the environment to customers and the community at large. After all. we are retrofitting demand ventilation with energy recovery where natural ventilation previously existed. due to the impact of the waste and manufacturing of more materials. While Green roofing is a seemingly new concept.G. That is. However. P. Photo courtesy of J. reduced environmental impact and corporate marketing.
Unwanted Wildlife and Insects The planting systems provide suitable habitat for birds. Membrane Access If leakage does occur. Green roofing requires periodic landscaping maintenance to remove unwanted weeds and other plants from overtaking and detracting from the Green roof plantings. which must be removed to determine the cause of leakage and make repairs. access to the membrane and unwanted wildlife and insects. a Green roof system can cost up to twice as much as a conventional roof system. and other wildlife.Similarly. Depending on the planting and growth medium and planting overburden system selected. . this is challenging because the interior leakage may not align with the breach in the membrane. insects. the membrane system is buried below the planting/overburden systems. As with any roofing. Maintenance While conventional roofing membranes require periodic maintenance to repair membrane degradation. which may be unwanted. Although there are many benefits to Green roofs. such as increased cost. plaza waterproofing concepts and detailing must be implemented to ensure longevity of the system. there are disadvantages that must be considered. Additional protection may be required to prevent unwanted wildlife and insects from inhabiting the Green roof.
Membranes time-tested for plaza waterproofing applications should be considered. In general. . This prevents the weight of the Green roofing from compressing the insulation and damaging the membrane. but provides adequate support of the membrane in any type of Green roof system and is more versatile than insulation. Just like conventional roofing. benches. slope to drain can be provided by tapered insulation or tapered concrete. The type and placement of the insulation is based on the type of Green roof plantings. including trees and shrubs Features: Architectural features such as paving. due to the installation process.There are two general types of Green roof planting systems. Extensive • • • • • Intensive Exist for environmental benefit. including the waterproofing membrane and insulation type/location. designed for harsh environments ("drought resistant" species) Irrigation: Little to none required. limiting the type of Green roofing planting types. walkways. it is good practice to remove water promptly and away from details to reduce the potential for leakage. which are designed for this type of exposure. etc. Depending on the type of structural deck. lighter weight extensive Green roof systems can include the insulation below the membrane system. Although the membrane systems are capable of withstanding constant water exposure. based on this. the membrane of Green roof systems must be sloped to drain. In some instances. Tapered insulation weighs less than concrete. It is important to remember that Green roof systems are covered and constantly wet. typically only during the "startup" period Weight: 15 to 50 lbs/sf • • • • • • Mixed environmental benefit and accessibility Deep soil / media (9 to 18+ inches deep) Vegetation: Varying depth of root structures. not accessible roof-top gardens Shallow soil / media (two to six inches deep) Vegetation: shallow root structure plantings (sods and sedums). the rest of the system can be selected. and that conventional roofing membranes modified for Green roof systems may not be suitable for Green roof systems. Also. Irrigation: Required Weight: 80 to 150 lbs/sf Based on the type of Green roofing desired. tapered insulation is less versatile for nonsymmetric roof plans. extensive and intensive. the insulation is typically located above the membrane. but the membrane system must be installed over the insulation. Tapered concrete adds significant weight to the structure and is more expensive than tapered insulation. The membrane must be capable of withstanding constant water exposure. Green roof systems should include plaza waterproofing membranes.
WATER RETENTION LAYER: Depending on the planting type. the following secondary systems must be included in the system. including: BASE FLASHING: For conventional roofing. Allows water to migrate from the overburden layer and migrate to the drains within the composite. root barriers should be used between the plantings and waterproofing membrane to reduce the potential of roots reaching the membrane and causing deterioration. this is more important in Green roofing. etc. like trees and shrubs. as well as the waterproofing membrane layer. ensuring that water can drain from the top surface of the overburden. the top edge of the base flashing must be at least eight inches above the membrane surface. Branch In addition to the primary components list above. when appropriate: DRAINAGE COMPOSITE: Molded plastic sheet with adhered filter fabric. GRAVEL: Gravel should be installed at all perimeters and around all other penetrations and details to allow water to promptly flow from these areas. As part of the selection of a suitable system. MANUFACTURER: Whenpossible. Photo courtesy of J. In Green roofing. shrubs. PLANTERS: For deep root structure plants.). penetrations must be minimized to reduce the potential for water leakage. It's much more important to ensure proper installation of a quality roofing system.A Green landscaped roof at the campus of Georgetown University. a vapor retarder may be required to prevent condensation from forming within the roof system. PENETRATIONS: For all roof systems. VAPOR RETARDER: Depending on the waterproofing system and building conditions. DRAINS: Dual-level drainage must be provided. Due to access constraints and challenges. the top edge of the flashing system should be at least eight inches above the top of the planting system. use manufacturers that supply all the components from the waterproofing membrane up to the planting system. the system details must be considered. .G. water retention layers or systems may be incorporated to pool limited amounts of water within the system to maintain moisture in the planting system between rain events. ROOT BARRIER: When deep root structure plants are used (trees. Additional items to consider when selecting a Green roof system include the following: WARRANTIES: Don't rely on them. independent planter boxes should be provided to separate the roots from the waterproofing system.
to ensure longevity of the system. and how it perceives facility management. Instead. ELECTRONIC FIELD VECTOR MONITORING (EFVM): This is a technique using electrical charges to trace leakage paths. and far more cost conscious. To do this. they may not be as effective as flood testing for new systems.DESIGN AND INSTALLATION: Ensure proper design and installation by engaging a design professional. Facility managers now compete with contracting firms that have developed considerable marketing skills. They are smarter. a flood test of the system should be performed. Know and anticipate its needs. Water should be at least two inches deep at all details. The terms "marketing" and "customer service" are not synonymous. All facility managers should understand the following basic concepts of marketing: • Know the market—Know each customer type. however. Today. • Recognize the importance of quality customer service—Every facility staff member must realize how every interaction with a customer can serve marketing objectives and foster a positive image of the facility management department. In this respect. accessibility for the disabled. proper materials and detailing must be provided. for example). Many have substantial experience in marketing their own products and services and expect others to similarly market their goods and services. better informed. In recent years. EFVM uses only a mist of water. and how well we perform them. Although a suitable technology for existing membrane systems with leakage. FLOOD TESTING: Before installation of the overburden. If a detail fails. what its needs are. and where you fall short. many facility management customers are given the option to go elsewhere for facility services. customer service is vital. the costs to repair or even replace a leaking Green roof system dramatically reduces the green-ness and energy cost savings of the system. it must be retested after repairs. However. • Know the facility management department's strengths and weaknesses—Understand where you do well. or CAD systems. They may know as much as we do about some topics (indoor air quality. FEJ Making the Sale Q & A: What to do when selling your facility SEE US ON: SHARE: All facility management employees are in a position to market facility services in their contact and conduct with customers. Flood testing backs up water against details. While customer service provides opportunities to reinforce positive images of a facility management department. facility management customers have become quite sophisticated. marketing involves first researching who your customers are and then selling and promoting facility services to them. Otherwise. providing pressure which may cause improper detailing to fail and open. we should identify what skills are involved in marketing. and improper detailing may not fail and open until after the overburden is installed. whether we perform any or all of them. However. your market was guaranteed: corporate customers had to get facility services through the department. . • Develop a marketing plan that serves as a road map. The main responsibility falls on the shoulders of the facility management department leader. Green roofing offers significant benefits to the environment and the building owner. Know the Market If a facility management department is one of the administrative services supporting the core business departments. it is unlikely that much thought has been given to marketing the facility management department.
) To implement the steps mentioned above.) Staff Skills Facility managers should know the skills of their staff. For example. you can diffuse potentially damaging misunderstandings about facility services. The needs of corporate income-generating groups will be different from those that support them. This strategy incorporates several key elements that form the backbone of an effective marketing plan. published by John Wiley & Sons. it is important to identify the marketing elements you already have in place." published by Springer Associates. Most companies have several different types of customers. Your greatest asset is the range and magnitude of customer contact. in person. or in a report. construction schedules. and housekeepers who make contact with customers may exert more influence on them than higher-ranking facility management employees who are seldom seen. two BOMI International contributors. For marketing purposes. the employees understood that they were carrying their customers' business. and the facility services meet the needs and expectations of each group. Cotts.We must also understand that our customers are not people whose needs. Promote services—Devise a marketing plan that matches services with the right customers. and objectives are identical. Recognize the Importance of Quality Customer Service . there must be a marketing plan. custodians. and to respond to surveys/questionnaires for research/ benchmarking purposes. From the facility manager's perspective. motivations. (These strategies are based on suggestions from Stormy Friday and David G. standard forms such as the PRP. an overall marketing strategy is needed. Every staff member makes an impression on a customer in every transaction. you help your customer and become an ally. in the book Quality Facility Management: A Marketing and Customer Service Approach. In doing so. Facility staff who feel connected to the department's mission will see value in their contribution. Develop a Marketing Plan First and foremost. Conduct market research—Know the characteristics and needs of your customers. whether it is by telephone." (This quote comes from Tim Springer's report "Improving Productivity in the Workplace: Reports from the Field. know about the service of your competitors. each one constitutes a niche market—a particular population with certain characteristics and needs that are distinct. A marketing brochure explaining facility services is a widely used tool that can be customized for different customers. and that plan can be organized around the following basic steps. every worker should understand the customer. you'd better be serving someone who is. Create a website—A website can be designed to allow users to download standards. Know the Facility Management Department's Strengths and Weaknesses To develop a marketing plan. This enables you to apply another basic marketing maxim: Prepare the market for change. There is a fundamental maxim of customer service that applies particularly well to facilities marketing: "If you're not serving the customer. Mechanics. By eliminating surprises. Keep customers informed—Talking to customers directly provides an opportunity to inform them of upcoming developments that may affect them. top management has needs unlike those of administrative support units or core business units. Corporate marketing groups and legal staffs perform different functions than the manufacturing units. Evaluate service delivery—Ask customers for feedback on service delivery. American Airlines found that by communicating to their cargo handlers that profits would increase by $100 million if they could put one more piece of cargo on every flight. such as new regulations. especially on sensitive issues such as indoor air quality.
ongoing relationship between a facility management department and its customers. the primary customer. it can have an impact on profits. and it allows people to see the real impact of what they and others do. Tracking Performance Two maxims readily apply to the area of tracking. workers in all companies have been besieged with entreaties from their leaders to be sensitive to their customers. and improved performance. financial benefits.000 employees to better serve the needs of their customers. The Walt Disney Company refers to all their employees—from the head of the company to the person sweeping the sidewalk—as cast members. The magic at Disney flows throughout the organization directly to its paying guests. Staff as a Selling Tool One strategy is to see your staff as a selling tool." Training Although few people know intuitively how to provide the best service possible.As the struggles for market share intensify.'" The formula is simple: Training + Communication + Caring = Pride The pride comes not just from being part of the organization. An exception is the Marriott hotel chain. or monitoring: "Manage what you measure" and "Don't expect what you don't inspect. but from respectfully treating. which in turn raises awareness of the contributions of the facility management department. rarely do companies invest in training their employees in customer service. Excellent customer service is essential to maintaining a strong. Following are some strategies that will help keep the relationship between the customer and your facility management department strong. This issue has particular urgency for facility managers. cost savings." Rewarding good performance reinforces appropriate behavior and communicates to the organization that customer service is important. and the unit they represent. Disney believes that cast members should treat each other as guests and insists that everyone behave accordingly. value-added service to our customers to ensure their satisfaction. Spending time in the customer's shoes is one of the best ways to understand how to serve the customer best. the customers are more likely to feel that the facility management department knows them and their needs so well that they don't want to change relationships. In many companies. A mission statement can be expressed as goals: "We must at all times provide the highest quality." It can also be stated more simply: "We all succeed or fail together. Service as a Fundamental Value Service must be the prime directive of a facility management department. and being treated like. Proper training in how to serve fosters creative and imaginative solutions. While the idea of treating everyone as a customer may seem simple. executives openly permit departments to shop for facility services. Disney calls their approach "spreading 'pixie dust. whose customers have become increasingly aware that they have choices of where and how to obtain facility services. This may sound simple. the service they provide. It is also important to recognize exemplary staff performance. Employees begin to see how the customer views them. putting corporate facility management departments in direct competition with outsourced providers. If the bond is strong. When corporate management wants to know how the facility management department contributes to the corporate bottom line. Bottom-line impact allows facility managers to market to their customers in terms that make business sense: cost avoidance. provide data that document successful project completions and customer satisfaction. This approach gets everyone involved in improving the organization. Measures of success should be expressed in monetary value to the company. . but it is surprising how many organizations do not have a method of assessing the impact of what they do. which has trained 70.
and this will benefit both the customer and the manufacturer/distributor merchant. understand who their customers are. Effective facilities management." FACILITIES MANAGEMENT INTRODUCTION BIFM has formally adopted the definition of FM provided by CEN the European Committee for Standardisation and ratified by BSI British Standards: “Facilities management is the integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities”. Facilities management encompasses multi-disciplinary activities within the built environment and the management of their impact upon people and the workplace. when. and [monitor what type of customer] is purchasing what. studies indicate as many as 92 percent of people trust the recommendations of friends. distributors as well as cleaning contractors will have no choice but to pay very close attention to what end customers say about them and their products online. At a corporate level. jansan manufacturers. it contributes to the .AlturaSolutions forecasts marketing directions that will impact jansan industry in 2013 SEE US ON: SHARE: January 21. online content is simply much more versatile. "Not only will more people use computers and tablets to read trade publications. a marketing and public relations firm for the jansan and building industries. and others posted online." According to Kravitz. peers. "End customers using their smartphones for purchasing will evolve into a primary conduit for doing business in 2013. placed on social media. 2013—E-commerce will grow significantly in the professional cleaning industry and will evolve into "mcommerce" (mobile-commerce)." Other marketing directions Kravitz's "Marketing Directions 2013" foresees emerging in 2013 that will affect the professional cleaning and facilities management industries are the following: • • • Manufacturers and distributors as well as cleaning contractors and carpet cleaners will develop "apps" for their businesses for both marketing and purchasing. "Marketing opportunities and perils will grow in 2013 because end customers will no longer be afraid to express their thoughts [(good or bad)] on jansan products and equipment on social media sites. what they are looking for. families. combining resources and activities. etc. according to Robert Kravitz. and other mobile devices." says Kravitz. Social media will get bigger." Online content will grow in importance. added to blogs. it is not going away and will start finding its marketing footing in 2013. allowing end users to view and buy janitorial tools and equipment on smartphones. "Starting in 2013. is vital to the success of any organisation." • End customers will be more outspoken. tablets. President of AlturaSolutions Communications. "It will allow merchants to better track purchases. "While social media has struggled in the B2B market in general and the jansan industry specifically. It can be shared with others.
What does a facilities manager do? Read our member profiles The foundation for facilities management Some key points in the development of facilities management include: • • • • Cost-cutting initiatives of the 1970s and 1980s under which organisations began to outsource ‘non-core’ services Integration of the planning and management of a wide range of services both ‘hard’ (e. security. and upgrade the country’s infrastructure and public service facilities. The facilities management profession has come of age. a heightened awareness of the FM sector has been evident. The sector definition continues to expand to include the management of an increasingly broad range of tangible assets. finance and management. driven by a number of factors including: • • • Interest in outsourcing as a ‘hot’ management topic Heavy media coverage of PFI/PPP initiatives and Increasing attention being paid to the sector by the financial community Facilities management is a vital strategic discipline because it ‘translates’ the high-level. Looking to the future In recent years. which is essential to the performance of any business – whatever its size and scope. followed by the development of specialised training and a qualification Step-change with the Private Finance Initiative (now Public Private Partnerships). in the UK alone. These range from property strategy. replace. market research suggests that. administration and contract management. the sector is worth between £40bn and £95bn per annum. effective facilities management provides a safe and efficient working environment. catering.delivery of strategic and operational objectives.g. Its practitioners require skill and knowledge. maintaining and developing myriad services. . Facilities management today The FM sector is now large and complex. space management and communications infrastructure to building maintenance. facilities managers have extensive responsibilities for providing. Estimates vary. cleaning. build. comprising a mix of in-house departments. support services and people skills. On a day-to day level. specialist contractors. and health & safety) to achieve better quality and economies of scale Formation of the BIFM in 1993. strategic change required by senior decision makers into day-to-day reality for people in their work or living space. and consortia delivering the full range of design. large multi-service companies. Within this fast growing professional discipline. building fabric) and ‘soft’ (e. This new approach was swiftly followed in the private sector and abroad. becoming an integral part of large-scale projects to manage. mailroom.g.
higher education institutions. Those organisations that treat FM as a ‘commodity overhead’ will be at a significant strategic disadvantage. and recommends marketing opportunities for the FM organization to participate in. and action plan development for entire companies and organizational components. amongst other things: • • • • • • Deliver effective management of an organisation’s assets Enhance the skills of people within the FM sector and provide identifiable and meaningful career options Enable new working styles and processes – vital in this technology-driven age Enhance and project an organisation’s identity and image Help the integration processes associated with change. The Friday Group's clients also include other corporate entities. close window Facilities Management Our facility management (FM) clients look to us for fresh ideas and practical tools to help them manage their service delivery. Organization Assessment The Friday Group reviews organizational strengths and weaknesses including current structure. mission. enhances staff presentation skills. goals and objectives statements.bifm. Customers worldwide know and trust The Friday Group to provide highly specialized expertise. span of control. We map baseline data. post-merger or acquisition Deliver business continuity and workforce protection in an era of heightened security threats Successful organisations in future will approach FM as an integral part of their strategic plan. We provide assistance to these clients with their management issues.uk/bifm/about/facilities The Friday group Marketing Our marketing assistance begins by reviewing the customer perspective on service delivery systems.Excellent facilities management can. associations. Marketing Plans The Friday Group develops marketing materials. • • • • Create baseline data Identify 'quick-fix' and long-term solutions Conduct customer service training Perform market research Management & Strategic Planning In addition to our mainstream FM business. team approaches and thoughtful business practices to their FM challenges. through focus groups. http://www. interviews and surveys. identify gaps in service delivery and develop strategies to strengthen customer relationships and create a marketing plan of action.org. communication flow and application of best practices. Strategic Planning We facilitate strategic plan development involving the establishment of vision. . the public sector and service providers.
more information http://www. and organizational effectiveness. more information Customized Training The Friday Group designs and delivers customized training programs. Strategic Planning Failure to Plan is Planning to Fail! .com/facilitiesmanagement. more information Merger and Acquisition Positioning The Friday Group assists FM organizations with corporate mergers and acquisitions through FM due diligence. Market Research for FM Service Providers We assist outsource firms with market research on current and potential products and services in order that they may re-direct and/or strengthen their efforts with marketing.html Simple Keys to Effective Strategic Planning September 2. customer service. Customer Service Assessment The Friday Group has become an international authority on helping FM organizations assess customer satisfaction and strengthen customer relations. workshops and seminars in several different areas: marketing. and mapping a plan for its migration and implementation. 2011 Corporate Strategy. strategic planning.Strategic Planning Services Through strategic planning an FM organization can link its service delivery to the company's mission to ensure the FM contribution is valued by corporate management. quality management. more information Organization Assessment. more information Marketing Plans The Friday Group is a strong proponent of marketing FM services to customers and has been a pioneer in the integration of a marketing plan into FM functions.thefridaygroup. Development and Re-engineering A trademark service of The Friday Group is the development of effective. more information Strategic Sourcing Plans The Friday Group assists FM organizations determine the best mix of resources to create a quality. identifying strengths and challenges of the new corporate FM entity. agile and entrepreneurial FM organizations and companion service delivery structures. cost-effective service structure.
quite effectively demonstrate how best to develop both the skills. As Jack Welch accurately noted. resource requirements and technologies acquired to support those markets effectively. I have always perceived athletics. Southwest Airlines culture of excellence. creative. as well as those who serve our country through military service. Effective strategic planning is essential in driving sustainable success of an organization. diversification of both products and services. Apple’s drive towards innovation and redefining the marketplace as we know it. and often. and overall mindset to drive substantive results. and leaders must be much more analytical. I believe athletics parallels business on multiple levels. sustain and improve business units.In today’s business climate. and equally innovative in developing strategic plans that drive viable and equally sustainable business results. We’ve all read the books. is it enough? Fortunate to have played collegiate football. to meet or exceed their objectives through the execution of those specific goals and strategies. the capital investments necessary to support the sustained success of such strategies. it is clear that the ongoing trend towards globalization. Yet. Clearly. rarely if ever. The ability to drive towards well-defined strategic goals … The focus on the intermediate milestones associated with meeting those goals … The teamwork. managers. and the reality that organizations that hire only the very best people are positioned to effectively compete within the marketplace. Yet. failure to effectively plan. discipline. To be sure. Rather. without a welldefined and continually measured strategic plan. Strategic planning often translates into establishing short-term and equally measurable objectives around very specific. case studies provided. strategic planning musttake on an increased importance as businesses explore how best to allocate resources. This may incorporate detailed marketing strategies that directly tie into the company’s future goals.” Regardless of industry. attended the seminars. we continually hear or read about a variety of success stories. be it. In addition. is planning to fail! (or as the saying goes). the Jack Welsh plan at GE. while remaining on the cutting-edge of cost effectiveness and overall value. it is equally clear that no athletic team. increased emphasis on business differentiation. . a short-list of business objectives and/strategies. penetrate new markets. or seminars made available indicative of businesses that worked towards maximizing its success and overall profitability. and more recently. “Control your destiny or someone else will. and subscribed to various industry journals in order to increase our knowledge and general understanding of successful strategic planning. are books written. “goes to battle”. discipline and incredibly hard work necessary to position the team (or business). without a business plan focused on very specific and equally well-defined strategic objectives. nor military unit. Business owners.
departments.. which includes a quite stringent focus on data. Far too often. consumer habits. businesses fail due to what I like to refer to as the “McDonald’s Mindset”. key business decisions are made without the contribution from other managers and associates within the company. we must allow strategic plans time to develop and ultimately yield a return on investment. To be clear. are critical to the success (or lack thereof) of our planning. For some. often. benchmarking. etc. I believe the keys to effective Strategic Planning include: Customization Strategic planning can be interpreted in a variety of ways by different businesses. Moreover. and the development of easily interpreted short and long-term milestones. as well as measured. We want to see quick results … we want it prepared our way … we want it completed quickly and to our complete satisfaction (and of course. I strongly believe this is why intermediate milestones that are both easily understandable throughout the organization. employees. fail to generate substantive results. their playbook lacks focus and specificity. directors. it is equally obvious. Far to often. they focus on a much more analytical approach to their planning. some businesses “playbook” is far too lengthy and complex. Other organizations can be much more artistic. Provide a department and/or group of employees a very specific objective that can be both measured and achieved within a realistic timeframe. managers. and ultimately. Although we all understand that “speed counts” in business. Collaboration Business plans and strategies driven solely by a narrow list of key executives. such strategies can be poorly communicated. etc. which encompasses a broad focus on business execution. can at times. manageable. soliciting employee and departmental feedback to ensure collaboration. at the lowest possible cost)! Although I both understand and support the principle of agility in business. business owners. and measurable through well-defined key performance indicators. with little to no visibility to the specific milestones associated with meeting . Best-in-class organizations blend both paradigms into a workable strategic model. with a primary focus on execution and business expectations directly tied to achieving intrinsically pleasing results. market analysis. while for others. analysis of market data. and once again using an athletic example. and leaders must sustain their efforts to ensure the specific strategies and milestones ultimately yield positive results. A successful strategic plan should be simple.Interestingly. supported by carefully crafted incentives and recognition programs – organizations that do facilitate such an approach inspire innovation and ultimately drive continuous improvement in all areas of the business.
Measure. measure.”The operative assumption today is that someone. manage. Yet. support the objective. Jack Welch provides us with a more than pertinent quote regarding the importance of corporate collaboration. yet. which . engineering measurable performance targets that are frequently measured. sustain. Doing so fosters an environment of teamwork. We’ve looked at the importance of collaboration. effective collaboration at all levels. and ultimately improve in an effort that yields a positive return on investment must incorporate the feedback and overall contributions throughout the entire organization. The people within our organizations often have wonderful ideas – I believe it is critical to the success and viability of any healthy company to solicit those ideas. Some may argue that in doing so you would have far too many moving parts. has a better idea. measure. to the extent that the organization stays the course and is ultimately positioned to meet the agreed upon objective(s). the flow of information related to such strategies should be connected throughout the organization’s network of business owners. front-line associates. MBA course. Manage. An organizations ability to effectively define. It’s all about performance . I am of the belief that effective strategic planning is directly interlinked between concise customization. and strong collaboration and commitment to company objectives.” Quite candidly. learn it. and the operative compulsion is to find out who has that better idea. Many organizations have used the terms. somewhere.the strategic goal. Improve Effective strategic planning should incorporate a culture of total quality management (TQM). more successfully manage and ultimately improve the business as a whole. Welsh goes on to say. cohesiveness. determine what KPI’s. how can we insure a direct link between the specific strategy development and the rest of the organization as a whole? I strongly believe that beyond the development of specific company strategies. is this enough? Focus on Execution Strategic plans for any forward thinking organization should not be developed in a vacuum. department managers. etc. implement. seminar. innovation.” Mr. evaluated. and reported at all levels within the organization. marketing strategist. To be sure. and the ability to measure performance milestones along the way. or key performance indicators. Ensure that you have internal resources dedicated to ongoing measurement. and involve the appropriate positions within the company in corporate decision-making. and based upon such measurements. I have learned far more from mid-level managers and line employees than from any book. over the course of my career. Once again. with only a small group of managers driving the strategy and overall execution therein. Once strategic objectives are agreed upon. there is a direct connection between one’s ability to measure the value and effectiveness of one’s product(s) and/or service(s). “We are constantly amazed by how much people will do when they are not told what to do by management. etc. improve. manage. and put it into action – fast. Clearly.
Leaving them behind puts an organization at a distinct disadvantage.everyone is positioned to contribute and ultimately be an integral part of solution design. Engineering processes in association with the strategic plans we have engineered must be centered around ensuring total business alignment. and implemented in an efficient manner so as to avoid unnecessary bottlenecks.would further create a climate of confusion. Progress should be communicated regularly amongst all stakeholders. supervisors. The way to engender enthusiasm is to allow employees far more freedom and far more responsibility. whereby the business owner ensures complete collaboration at all levels. and as such. “Business is all about capturing intellect from every person. contribute to the overall health and success of the company. with corrective action plans quickly put in place in areas whereby the data demonstrates negative or insufficient performance results. Strategic discussions. will lead to improved performance and employee satisfaction. must once again quote one of my personal favorite business leaders when he stated. while involving the appropriate stakeholders in the overall process. yet. etc. the fundamentals of business. if in fact. in my view. it is my belief that the application of the affirmation principles. I have read all or most. Every organization approaches the process of strategic planning differently. serves to drive expedited decisions. which often leads to added value in the performance of one’s work. meaning. I disagree! Strong execution and the ability to achieve product and/or service excellence truly begins with a company’s line employees. should all be centered on established company wide objectives. A solid planning process will move a company toward coherence. Product or service differentiation is likewise a key component in engineering strategic plans that drive product and/or service delivery solutions that ensure a competitive advantage. Further. should be simple and easily understood at all levels within the company. evaluation of performance to goal. when effectively applied. rapid response to bottlenecks or perceived roadblocks. planning. and invaluable inputs from those that contribute to the engineering of said products. and has the potential of negatively influencing business execution. leadership development. we can all see it! Focus on Efficiency Effective strategic planning must include a stringent focus on efficiency and overall cycle time. Strategic plans. I firmly believe that strategic planning should incorporate the contributions of all primary stakeholders within the organization. and beyond. while ensuring that businesses remain agile. and be measurable with both short and long-term “quantifiable scorecard metrics” that ensure progress to goal. all of which. quantifying performance around agreed upon key performance indicators. such businesses remain focused on the quality of product.” It seems clear that focusing on efficiency in process development. The focus of my MBA is/was . it is far easier to hit a target. At the same time. such plans should be developed based upon sound data and market analysis. midlevel managers. Jack Welsh has written many wonderful books on strategic planning. To be clear.
or market position.0740 What Every Service Provider MUST Know September 4.Strategic Management. we might answer. ultimately minimizes our ability to reach our true potential in the effectiveness of our business in the areas of client satisfaction and loyalty. which clearly denotes performance against goal. I would argue that our inability to implement a viable performance scorecard process.” As Dwight D Eisenhower once said.656. or call us at 888. executive. “Plans are nothing. growth. business focus. that I have ever learned from a collegiate course. or book.com. and follow with a line we have all heard. if asked the following question.” To that extent. over my 18+ year career in management at all levels. employee satisfaction and overall profitability. contact us via email at info@fmadvisors. the same fact holds true for me – I have learned far more from line level employees through mid-level managers. . namely. “I feel things are going fine … we are not receiving many complaints”. 2011 Performance Management Regardless of your current company position. as well. how would your clients respond? • • • How do you feel about our service performance? Are you happy with how services are currently being delivered? What (if anything) could we do differently? Often. and while I greatly appreciate and value what I personally learned over the course of this process. planning is everything. For additional information or to request a free consultation. “no news is good news.
aren’t showing steady improvements through objective metrics. it highlights a very repetitive challenge within the facilities management and building services industries. According to International Facilities Management Association. Now. service delivery. whereas the salesperson who ultimately coordinated the sale from the onset indicates that either 1) “they never made such a promise. selling what you do. Facilities Management firms. suppliers and contractors alike have added pressure to drive sustainable cost savings while creatively implementing systems and processes to meet service level objectives. and safety performance? We have all certainly experienced the discussion to varying degrees – the client informs the on-site Project Manager. that he/she felt they were entitled to additional services and programs. they lack a meaningful process to more effectively measure service performance in a manner that contributes towards improved management. in today’s increasingly challenging business climate.Clearly. they are. while continually improving their overall business model. namely. preparing to fail! What strategy does your organization utilize to engage your customers and monitor levels of client satisfaction? How do you know whether or not you are fully aligned with your customers in overall cost. delivery. that service providers lack a well-documented.” Our ability to bridge that gap. and objective process to measure service performance against goal. and doing what you sell.” Either way.” or 2) “what we communicated during our presentation is essentially the basics of what we do… nothing more. quality. there are added pressures being placed on clients across a diversity of vertical markets. Either way. Operator and/or Engineer. quantifiable. performance metrics. In short. one of the more significant missed expectations as communicated by various clients across multiple market segments continually revolves around the same premise. or perhaps the client misunderstood communications during those final meetings prior to contract signing. in fact. Perhaps we oversold our products and/or services. . while delivering improved management. and continuous improvement. if suppliers. we are faced with a dilemma. namely.
Manage. Customer satisfaction . Improve. generates more opportunities for growth and increased longevity in the client relationship.comparative benchmarking. Customer satisfaction is a key differentiator and increasingly has become of utmost importance in the development of overall business strategy. For some companies. and/or simply perceive that they lack the resources and/or work tools necessary to drive the program. For these organizations. Measure. all or most organizations genuinely care about their clients – they want their customers to be happy … to say good things about their product or service … to expand their business through added volume and services. among other things. So how are we defining customer satisfaction? The dictionary might tell us that it is simply “a measure of how products and services supplied by a company meet or exceed customer expectations. their customers spend more. in a survey of nearly 200 senior managers. they either lack the desire to implement an improved TQM model (Total Quality Management). World-class organizations maximize their opportunities for both organic and external growth through achieving high levels of customer satisfaction – easier said than done. Clearly. organizations that have strong processes in place to effectively manage and improve client satisfaction have outperformed their competitors by 26% in gross margin and 85% in sales growth. According to a recent Gallup poll. don’t clearly understand the value of doing so.”According to Marketing Metrics: the Definitive Guide to Measuring Marketing Performance. buy more. fundamental to any companies business operations and success is to engineer a meaningful measurement process. driving accountability and sustained effectiveness at all levels within the organization. right? To be clear. and continually renew their contracts. 71% responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses.
Raising customer retention rates by 5% could increase the value of an average customer by 25-100%. The probability of selling service to a new customer is 1 in 16. Each one of your customers has a circle of influence of 250 people or potential customers who hear bad things about you. . there are 26 others who remain silent. opens the door for competitors to capture their clients imagination and ultimately earn (or take) the business. fail to see those metrics improve performance. . If managed properly such metrics provide specificity to performance defects in service delivery. So what does the data tell us regarding the importance of implementing and sustaining an effective performance scorecard process for your business Customer Satisfaction: • • • • • • 91% of unhappy customers will never purchase services from you again. • Almost 70% of the identifiable reasons why customers left typical companies had nothing to do with the product. Client Retention: • • • • It costs about five times as much to attract a new customer as it costs to keep an old one. while educating their clients regarding their performance to target and overall contractual compliance. many organizations lack a definitive performance scorecard process and as a result. 96. The prevailing reason for switching was poor quality of service. Yet. For every customer who bothers to complain. Typically only 25-30% of a firm’s clients are completely satisfied – Such low satisfaction means that 70% or more of the firm’s clients may be open to pitches from competing firms. Loyal customers who refer others generate business at very low or no cost.7% of unhappy customers never let out even a squeak of dissatisfaction to the organisation that has given them bad service. service providers that fail to effectively articulate their value through viable key performance indicators whereby the client is fully aligned with what is being measured. according to research they will tell at least 15 other people. while the probability of selling service to a current customer is 1 in 2. . To be sure. 70% of complaining customers will do business with you again if you resolve the complaint in their favour. as well as focus employees on the importance of fulfilling customers’ expectations.scorecards can have powerful effects within organizations of all sizes. while satisfied ones will tell six at the most.
seminars. If a credit card company can hold onto another 5% of its customers each year (increasing retention rate from. which further demonstrate the importance of “telling one’s story” as it relates to business performance. Candidly. which. training collateral. it is simply not enough to deliver “good” products or services … indeed. The average business loses between 10 percent and 30 percent of its customers each year. have been show to dramatically increase customer loyalty while strengthening the bond between both the client and service provider. if managed AND communicated effectively. In James C. 90 to 95%). he begins by noting one simple truth … Good is the enemy of Great! Candidly. in turn. then the total lifetime profits from a typical customer will rise. all focused on the subject of customer service. or develop. increased customer retention. innovations in service delivery. Indeed. technology. by 75%. Truth be told. regardless of what products and/or services they may deliver. and overall business growth. should be intensely focused on “thrilling” their clients. defining their value and reinforcing . yet lack the tools and methodologies to do so? This is such an important topic that there are countless books. cost-containment methods … all of which. Good to Great. have been best reflected in their outstanding results in service delivery.• • • It’s easier to get present customers to buy 10 percent more than to increase your customer base by 10 percent. Measuring Customer Satisfaction: • • 96-100% of clients interviewed say they approve of client satisfaction surveys. Reference Sources These are truly staggering numbers in my opinion. we must deliver “Great”. on average. it’s not so much what you (the supplier) accomplished (for your clients) lately that matters … the question we should be asking is what are you doing for them (the customer) today?” I believe it is of tremendous value for suppliers to maintain. I couldn’t agree more! A service provider. the “daily discipline” of engaging their customers in a very short and concise manner. In this highly competitive marketplace. What about the well-intentioned service providers who truly want to excel in every area of their business. I have observed many organizations who maintain the right business formula AND work culture. say. continuous improvement strategies. it has always been of particular interest to me why some suppliers of various commodities often fail to effectively demonstrate their value through sustained metrics. Collins book. 60% of clients interviewed in person will give a firm new business within 60 days of the survey.
.. .] Continue reading.] Continue reading. the various social media marketing outlets.. and improve all aspects of their business is critical to the overall health and future of the organization. Twitter. or tollfree at 888-656-0740. It would seem reasonable to include that outside of creating a great work environment for one’s employees. Further. peers and subject matter experts. 2011 5 Comments Social media marketing has dramatically transformed the manner in which we communicate on a global basis. the consumer is now directed to the company or product’s Facebook page instead [. including but not limited to Facebook.com. To speak with us and/or to schedule a meeting. reflected and further supported by strong performance scorecard metrics. this is what separates those organizations that are perceived to be average-to-good. developing a process by which one can more effectively measure. you must improve your client relationships. manage. please contact us atinfo@fmadvisors. one must assume that their existing customers are being contacted by competitors on a regular basis... supporting those relationships through exceptional service delivery.. collaborate with clients.. [. network with both friends and colleagues.what they are doing to contribute to the success of the client … indeed. the champions of “Great”! In this increasingly competitive market whereby (some) service providers are often high on promise and short on delivery.. Archive | MarketingRSS feed for this archive Here’s Why Facebook Is Worth $70B October 4. 2011 1 Comment It’s standard now days to see an icon on a company’s website that allows readers to connect with the company on their Facebook page with one click. LinkedIn-The #1 Social Media Outlet for Business Professionals September 10. vs. Blogger. If your goal is to mitigate these concerns. while in many cases expanding our knowledge in areas of particular interest. Have you noticed a recent change at the end of television commercials? In many ads.
among others. How can we utilize social media in its various forms to reinforce our brand. 2011 • The Value of Key Performance Indicators (KPIs)SEPTEMBER 15.es/CDPAD via @sharethis 19 hours ago Apple to launch 128GB iPadusat. with Facebook..Social Media Marketing – What’s the Point? August 20. LinkedIn.] Continue reading.. 2011 • Competitive or Business Intelligence – What’s the Difference?AUGUST 10. 2011 10 Comments Social media has become increasingly popular of late.ly/117gHax #iPAD #Apple 3 days ago Building a Stronger Budget Requires Solid Data | #FM #Facilities #FacilityServicesshar. and more effectively market our business in order to maximize market share? [. Recent Tweets • The Value of Key Performance Indicators (KPIs) | #FM #ISSA #Facilities #Scorecard#kpifacilitiesmanagementadvisors. • • • • Popular Latest Comments Tags • What Every Service Provider MUST KnowSEPTEMBER 4. Twitter. 2011 • Top Ten Business Apps for the iPADAUGUST 13. 2011 Email Subscription Enter your email address to follow this blog and receive notifications of new posts by email..com/2011/09/15/the … 19 hours ago • Trends in #Facilities Management: What’s the Impact? | #FM #ISSA#facilitiesmanagement #BizRTfacilitiesmanagementadvisors. 2011 • Social Media Marketing – What’s the Point?AUGUST 20.es/CAnyf via @sharethis 3 days ago . evolving to become widely accepted as part of our cultural fabric. more effectively promote our business.com/2011/10/07/ tre… 19 hours ago • • • Don’t Treat Green Marketing as a Fadshar..
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