FACILITY MANAGEMENT-HKPHQ 1

Facility Management- HKPHQ

Name
Institutional Affiliation
Date
FACILITY MANAGEMENT-HKPHQ 2

Abstract

HKPHQ Building provides Accommodation for police officers and the Civilian staff. The

Facilities also provides Accommodation to the Joint Chiefs of staff and some principal

government officials. The catering staff offers hospitality services. Some staff is involved in the

routine cleaning of the rooms after use. There concern the standards of both services.

Outsourcing services is required if the standards of services were to improve. Bundle FM

services should be the appropriate Option for HKPHQ Since it will allow the services to be

offered as one under a single supplier. It will be able to ensure that there is coordination between

the two services. Lack of coordination between the services has affected service delivery. Some

risks are associated with this type of arrangement; it will be very beneficial to Hong Kong police

Headquarters in the long run. The FM manager will be responsible for making sure that the two

Contracts are in line with the requirements of HKPHQ. This report is for Head of Property

Operations on the best options for outsourcing cleaning and catering functions.

Key Words: FM, Bundled Services, Outsourcing

Introduction
FACILITY MANAGEMENT-HKPHQ 3

Companies use outsourcing practices by hiring third parties to handle, perform tasks, and provide

the company services. The type of services available in the Hong Kong Police Headquarters for

catering and Cleaning staff is not to the standards that are required. HKPHQ will use outsourcing

services to improve catering and cleaning services. Since the building also hosts Government

principal officials and the joint chiefs of staff, security will also be paramount. The type of

outsourcing services that will be available for HKPHQ is Bundle FM services. It is the type of

contract available for the police department, unlike single or packaged services, which will

require HKPHQ to prepare different contracts for every line of service. Bundles services will

ensure that the three services are packaged into one and offered by one company. The facility's

Managed role in HKPHQ will be to analyze the issues related to cleaning and catering

(Wiggins,2020). Translate the activities required to be more cost-effective and do daily planning

on how the two services are going to be offered.

Strategic Facility Management

The work of the facility manager in KHPHK will be to develop a planning tool that will

aid in evaluating the strength weakness of choosing a particular Outsourcing model. The FM

manager can carry out a SWOT analysis on the project the HKPHK want to venture in. Strengths

will help the organization achieve its objectives; Opportunities will be the external factors that

will help achieve that particular objective. Threats will present the outside conditions that will

prevent HKPHQ From achieving its objectives. Weaknesses are the factors that are preventing

HKPHQ From achieving its objectives. Since the concern is outsourcing for catering and

cleaning services, the weaknesses are lapses in service delivery. Hence, HKPHQ Wants can

outsource these services to enhance service delivery and coordination between the catering

department and the cleaning department (Barrett & Baldry2009). The strength of Outsourcing is
FACILITY MANAGEMENT-HKPHQ 4

that efficiency is going can be assured as the two services will be bundled and given to one

provider. The facility manager's opportunities are; reduction of the number of staff and

coordination in service delivery, which will not affect activities in the Headquarters.

After carrying out the analysis performed, the facility manager will perform decisions and

recommend taking action courses. The facility manager can present the resolutions to the overall

management for approval and review(Barrett & Baldry, 2009). The facility manager can perform

the following steps to set up the best outsourcing plan for HKPHQ;

 Address the main objective to be addressed when outsourcing for the services

 Evaluate costs and factors that are critical for the success of the concept to HKPHQ

 Recommendations for specific alternatives can be proposed to

 Come up with the marketing strategy for the approval of the management.

 Seek for finances that are needed to launch the complete phase of the outsourcing

process.

HKPHQ's Decision to turn to outsource aims to improve food quality and sanitation and

ensure that the processes are secure in the facility(Barrett & Baldry2009). Professional cleaning

companies are known to help organizations benefit from improved safety practices.

Bundled Facility Management Services

Under Bundled services, the chosen firm will offer the following services; Catering,

Cleaning, and security in one grouping. HKPHQ will be able to hire one supplier who is going to

offer all the services. Because three services are going to be bundled together, it is the HKPHQ

Manager's work to manage and integrate these facilities so that they can be in line with HKPHQ

Objectives. This means that because the three services are will be outsourced under a single

contract, and some managerial responsibility is transferred to the supplier (Wilensky,& Buttle,
FACILITY MANAGEMENT-HKPHQ 5

1988). It means that most of the staff are going to be outsourced. The scope of the services will

only be limited to catering and cleaning. The integrating FM role will remain within HKPHQ.

Risks Associated with Bundled FM Services

In choosing the right outsourcing mechanism, HKPHQ must be aware of the risks

involved in Choosing a Bundled service for Cleaning and Catering contracts. There is no right or

wrong when selecting the right FM model since different models will differently serve various

organizations. It only depends on the structure and the culture of the organization. Choosing

bundled services is more effective for HKPHQ, but it is subject to the same diseconomies in any

organization(Wilensky,& Buttle, 1988. From the perspective of HKPHQ, it may seem to be

better. Divergent interests may arise from using bundled outsourcing services. Since there are

layers of other management, these divergent interests may affect performance among the staff

and dilute the department's single goal. Before this contract is implemented, it should be made

clear that these diseconomies can offset some of the contract's benefits (Alexander,1994). When

the diseconomies are generic, they may reduce performance and yield increased costs. The other

risks are that the supplier cannot guarantee that they will offer quality services. The supplier may

subcontract some of the services. There might be a "lock-in" effect due to the bundled services

(Coenen & von Felten, 2014). HKPHQ may experience decreased turnover from the staff

because they might not have the same benefits as the hired firm's employees.

Mitigation of Risks Associated with Bundled FM services.

FACILITY MANAGEMENT-HKPHQ 6

Most managers are aware of the risks that are associated with choosing the type of

contract. There is a need to establish strategic partnerships with the suppliers so that

underperformance cases will be minimized and the services aligned to the goals of HKPHQ

(Ventovuori & Lehtonen, 2006). For the cleaning services. Since most of the providers use the

same equipment to serve other buyers., subcontracting a third party for pieces of equipment

might be viable. There is no risk of competition since the HKPHQ does not engage in any

business dealings. These risks will vary according to HKPHQ goals and the acquisition strategy

that they are going to employ.

Advantages and Disadvantages of Using Bundled Services

1. Advantages/ Benefits.

Cost Savings

HKPHQ will benefit from this model of Outsourcing by cutting off unnecessary staff

who are not needed at full time. For example, the cleaners and catering staff are only required to

offer the services, yet they are employed on a full-time basis. This contract reduces the number

of staff that are needed to provide the services.

By contracting these services to a single firm, the provider will offer the services using

very little management staff. HKPHQ Had hired other staff for the management of those

services. There is separate staff for cleaning and another one for catering. It is expensive in terms

of the costs that are needed to manage them. It is an opportunity for HKPHQ to reduce the staff

that is required for service delivery. Bundled services will prompt improvements, especially

those that will lead to low external and internal transactions (Raiborn, Butler & Massoud, 2009).

Information management systems by the service provider will lead to these improvements.
FACILITY MANAGEMENT-HKPHQ 7

The other advantage will be to HKPHQ is that they will be spared in managing contracts

and invoices. The invoices that HKPHQ will handle every month will be significantly increased.

The Bundled contract will be responsible for input purchases; these include; cleaning equipment,

air conditioning, and transportation, which will lead to a higher purchasing power. It lowers the

buying costs.

HKPKQ is going to benefit from the efficient use of capital equipment. Most services

that are required in bundled services can share similar equipment(Raiborn, Butler & Massoud,

2009). Bundled services prevent buyers from purchasing overhead expenses by shifting the two

contracts to a single provider. HKPHQ will not be required to pay for the employees' insurance

policies, provide rentals for the staff, and pay for some set-up costs. By aligning these services, it

will lead to better performance. The buyer will have no choice but to make sure that the provided

service is of high quality.

Similarly, by converging the two services into a single contract, it more comfortable to align

the performance with other far-reaching goals. It is easier to align catering and cleanliness rather

than different providers in charge of individual pieces.

2. Disadvantages

Normally HKPHQ cannot be assured that the provider will be selected for the two contracts

of cleaning and Catering services. One of the problems was lapses in the delivery of services,

which affected the timeliness in the Headquarters. The facility manager must streamline every

activity to be in line with what HKPHQ Wants to achieve.

The other disadvantage that HKPHQ will face with using the bundled services. If the service

provider Cannot offer the services fully and subcontract one of the services to the third party.

HKPHQ will not be able to establish control (Ventovuori & Lehtonen, 2006). The facility
FACILITY MANAGEMENT-HKPHQ 8

manager will Have their work cut out to look for providers who do not have limited expertise.

This will make the supervision of the services very easy.

Managing and Controlling Outsourced Services

The process of outsourcing services is always controlled by purchasing power and price.

A type of control is needed when evaluating the ongoing services and purchasing of tangible

products. Normally HKPHQ will not be aware of the reliability of the outsourced services by

evaluation of the supplier. The provider must show all the necessary certificates. In terms of

catering services, the legal documents are important to make sure that they have met all the legal

standards (Van Iwaarden, & van der Valk, 2013. It does not mean that it will reduce the risks of

staff poisoning.

Rather than focusing on the product characteristics, the facility manager in HKPHQ will

want to put all energy into specific process parameters. It is an option for HKPHQ to chose

tailor-made service level parameters. How deep these parameters should go is dependent on the

risks that are involved as a result of outsourcing these services. Information should be

documented on the roles, responsibilities, and authorities that are responsible for monitoring

service delivery. The outsourced organization must make sure that customize their service

according to the needs of HKPHQ. Further improvement can be made on the documentation by

all the parties involved (Chotipanich, 2004). There should be auditing on the performance and

the agreed parameters. This type of audit is to make sure that the agreed parameters and the level

of compliance with the requirements are met. This audit will also show whether Outsourcing of

the services is sustainable. Whatever method of control is affected. It should be transparent to

both HKPHQ and the provider. The other way of ensuring the outsourced programs are being
FACILITY MANAGEMENT-HKPHQ 9

implemented is by carrying out benchmarks for evaluating the progress that is being made—this

important in achieving some key milestones and tracking the progress of both sides.

Consistent communication will ensure that minor disputes that arise from the contracts

are easily mitigated. There is a predetermined communication that requires to be established by

HKPHQ and the outsourcing Company. Subject matters will have their times for discussions.

The contracts cannot be given to any company. Robust vetting is required for appropriate

candidates.

Outsourcing Strategies.

Key questions are important in the process of determining the simple and practical way of

Outsourcing. For HKPHQ, the best question to ask is whether the outsourcing strategy is going

to achieve the intended purpose of improving service delivery. The best strategy is to come up

with a Checklist for the services that will be outsourced.

 Clarity of the task to be outsourced.

 The expected performance- The expected performance is supposed to be higher than the

one that is being offered currently.

 The cost implication of the project will depend on time and duration, pieces of equipment

that need to be purchased, or using a third party (Giachetti, 2012).

 Deadlines that are supposed to be met and clear scenarios of expected delivery indicated

 The type of resources that are supposed to deployed by HKPHQ

 Those in the organization are responsible for interfacing with the outsourced firm. The

management team that will interact with the firm

FACILITY MANAGEMENT-HKPHQ 10

 Whether there should be a manual program for step to step outline for the repeated task,

there should also be a plan for the resources that will be gained and another contractor if

the one hired does not work out.

To check the performance of the outsourced firm annual report data can be used. Most of the

time, Outsourcing is meant to improve cost-efficiency. There is no indication of profits or

productivity being improved. Since HKPHQ is a government facility, the only thing that is

required is to improve service delivery. Service delivery is important, especially when there are

top security officials who benefit from Accommodation being offered by the facility—the overall

strategy for Outsourcing.

There is a crucial need to build an outsourcing relationship with the respective service

providers. Since Outsourcing is an approach of procurement, it needs operational support in FM

(Kern & Willcocks, 2002). Categories of outsourcing relationships that are going to be

established will ultimately affect the efficiency and the sourcing strategy of HKPHQ. These

relationships are also important in outsourcing maneuvers. The strategic relationship that should

be established by HKPHR is for the framework. The FORT strategy has shifted from Reliance,

Alliance, support, and Alignment. This very specific and ensured a short time engagement for

the services being outsourced (Ancarani & Capaldo, 2005). The processes of Outsourcing have

nowadays evolved from model contingencies to processes of mutual support and nurturing.

Conclusion

The choice for the appropriate methods to be used for Outsourcing depends on the

services and the client's interests. Every outsourcing model has its advantages and

Disadvantages. The Hong Kong Police Headquarters would want to choose the Bundled model
FACILITY MANAGEMENT-HKPHQ 11

of Outsourcing for cleaning and catering contracts. This type of model has fewer risks and allows

the facility manager to monitor progress. There will be coordination between the services which

is currently lacking among the staff. Outsourcing contracts are dependent on product

characteristics and the performance of the outsourcing firm. Outsourcing, just like any other

process of procurement, needs operational support.

FACILITY MANAGEMENT-HKPHQ 12

References
Wiggins, J. M. (2020). Facilities manager's desk reference. John Wiley & Sons.
Barrett, P., & Baldry, D. (2009). Facilities management: Towards best practice. John Wiley &
Sons.
Alexander, K. (1994). A strategy for facilities management. Facilities.
Coenen, C., & von Felten, D. (2014). A service-oriented perspective of facility
management. Facilities.
Wilensky, L., & Buttle, F. (1988). A multivariate analysis of hotel benefit bundles and choice
trade-offs. International Journal of Hospitality Management, 7(1), 29-41.
Giachetti, C. (2012). A resource-based perspective on the relationship between service
diversification and firm performance: evidence from Italian facility management
firms. Journal of Business Economics and Management, 13(3), 567-585.
Chotipanich, S. (2004). Positioning facility management. Facilities.
Van Iwaarden, J., & van der Valk, W. (2013). Controlling outsourced service delivery:
Managing service quality in business service triads. Total Quality Management &
Business Excellence, 24(9-10), 1046-1061.
Raiborn, C. A., Butler, J. B., & Massoud, M. F. (2009). Outsourcing support functions:
Identifying and managing the good, the bad, and the ugly. Business Horizons, 52(4),
347-356.
Gill, M., Howell, C., & Horton, T. (2013). Bundled versus Single Service Security: A
Discussion.
Ventovuori, T., & Lehtonen, T. (2006). Alternative models for the management of FM
services. Journal of Corporate Real Estate.
Ancarani, A., & Capaldo, G. (2005). Supporting decision-making process in facilities
FACILITY MANAGEMENT-HKPHQ 13

management services procurement: A methodological approach. Journal of purchasing

and supply management, 11(5-6), 232-241.
Kern, T., & Willcocks, L. (2002). Exploring relationships in information technology
outsourcing: the interaction approach. European Journal of Information Systems, 11(1),
3-19.