Chair Property and Facility Management
Hong Kong Institute of Surveyors
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Group Estate Manager
Swire Properties Limited

Are you a Surveyor?
Have you registered with the Committee?

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

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.

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

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

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

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

CUSTOMERS
 Their needs
 Internal
 External

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

(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.

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

(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.

(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.

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

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

(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.

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

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.

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

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

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.

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.

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.

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.

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!

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

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.
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Happy for Q&A
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