1. Michael R Price Michael R Price Chair Property and Facility Management Hong Kong Institute of Surveyors                                     Group Estate Manager Swire Properties Limited

2. ADVERTISEMENT ADVERTISEMENT Are you a Surveyor? Have you registered with the Committee?

3. Current day-to-day issues in Facility Management Issues you need to consider constantly.

4. THE ISSUES 1. Capability. 2. Opportunity. 3. Benchmarking. 4. Value for Money. 5. Customers. 6. Outsource or In-house The basic issues in Facility Management in an economic downturn.

5. CAPABILITY  Staff Quality  Training  Processes  Service Delivery  Consistency

6. OPPORTUNITY  Market for services  Marketing  Internal  External  Honesty

7. BENCHMARKING  Should we benchmark - Always.  You need feedback.  Benchmark everything.

8. VALUE FOR MONEY  Quality vs Cost.  Tendering vs Partnership.  Supplier choice.

9. CUSTOMERS  Their needs  Internal  External

10. OUTSOURCE or IN-HOUSE 1. Why outsource ? 2. Control. 3. Expertise. 4. Core competencies. 5. Cost.

11. CAPABILITIES:- (1) STAFF QUALITY The key factor must have appropriate level of education and abilities. Must have initiative. Prepared exceed customers’ expectations. Prepared to learn. You pay monkey’s salary, you get monkeys. Treat your staff well, or they will go.

12. (2) TRAINING It is a must to give the service level you want. Targeted, interesting, delivered properly. In-house and outside expertise.

13. (3) PROCESSES  Yes you do need them clear and in writing.  Uncomplicated, easy to understand and to the point.  Revised and updated annually.  ISO is not needed for excellence.

14. (4) SERVICE DELIVERY You must deliver what you promise, preferably exceed. You must deliver it properly. You must deliver it on time. You must be organised. Your client can easily find someone else.

15. (5) CONSISTENCY Consistency in performance. Consistency in high quality service delivery. Consistency in cost control.

16. OPPORTUNITIES:- (1) MARKET FOR SERVICES  The government.  Major companies.  Banks.  Major developers.  Property investors.  Universities.

17. (2) MARKETING This is a skill you need now. People who hide disappear. Market internally Let people know what you do. Show value for money. Market externally Get known. Show your capabilities.

18. (3) HONESTY AND PROFESSIONALISM Only promise what you can deliver. Don’t lie, you’re always found out. Keep your skills and knowledge up-to- date. Plenty of opportunities for learning.

19. BENCHMARKING If you don’t do it. How can you assess your performance? How? - Contacts - Freely available information - Universities - Internet. - Build up a database. - Key Performance Indicators (KPI) You can never do too much.

20. WHAT SHOULD YOU BENCHMARK  Everything  Customer satisfaction.  Cost  Insurance costs.  Energy costs  Accommodation costs.  Churn costs.

21. VALUE FOR MONEY  Good quality vs cheapest.  Partnership is better than tendering, you must have the right “partner”.  Benchmarking / Compare.

22. YOUR CUSTOMERS You must know them. If you don’t, you’re dead. They are highly educated, and aware of their rights and power. You must gain their trust. Nothing worse than a relationship without trust. It is a delicate thing.

23. WHAT ARE YOUR CUSTOMERS LOOKING FOR ??  Professional advise.  Up-to-date real estate and facility management skills.  Great people skills.  One stop shop - You can handle everything.  Flexibility.  Value for money.  Feedback.

24. OUTSOURCING Which is best??  Don’t outsource unless there are clear benefits. Don’t outsource your soul.  Save at least 10%.  Clearly better service quality.

25. OUTSOURCING vs IN-HOUSE EXAMPLES PCCW and Citex (now E.C. Harris). HSBC and Citex (now E.C. Harris). Government and Cyberport. Hong Kong Land, Swire Properties, Sun Hung Kai. Different degrees out outsourcing / In-house, suit different situations.

26. OUTSOURCING vs IN-HOUSE Advantages (perceived) - Removal of inefficiencies. Disadvantages (perceived) eg. Loss of expertise. Poor quality. (You pay for monkeys, you get monkeys.) Outsource what is right for you!

27. PROFIT or YOU KEEP YOUR JOB High Quality = Customer Loyalty Customer Satisfaction = Consistent Income = Profit / Job Retention

28. SUMMARY You need to be considering at all time:- 1. Your capabilities. 2. Your opportunities. 3. Your customers. 4. Benchmarking and value for money. 5. Outsourcing vs In-house. 6. Profit, and job retention.  Happy for Q&A 