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Posts Tagged ‘contractor’

Do you use the Carrot & Stick approach to managing Outsourced or Subcontracted suppliers? Think Again.

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Key Performance Measurements (KPI) Carrot & Stick approachThere’s a lot of evidence that the typical Key Performance Indicator (KPI) methods of trying to ensure you get performance from an outsourced or subcontracted service provider don’t work the way you think. In this Video (see below), Daniel Pink, author of “Drive : The Surprising Truth About What Motivates Us” presents research that tells you why.

I have personal experience on both sides of the fence on this issue and use KPI’s with extreme care – it’s better to put a measurement and management system in place to get the results you need, not a ‘set it and forget it’ KPI system where you simply measure success or failure after the fact and award a penalty or bonus accordingly.

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Have you cut operating costs lately?

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On a forum recently, a Facility Manager was looking for ways to save costs at his facility due to the current economic pressures. He identified a few things he was doing, mostly the common low hanging fruit items, and asked for ideas.

Having  been in that situation as an FM and responded to it as a supplier, I learned that a good source for cost savings ideas can be your suppliers. Yes, it can happen, but you need to approach it properly.

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Penalize Your Suppliers!

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The search term “penalize your supplier” in a Google search recently led someone to my web site, www.StrategicAdvisor.ca

They landed on our performance measurement article, which certainly has those words in the content, but then they quickly went somewhere else – probably because we don’t talk about penalizing suppliers – we focus on managing supplier performance to get results in a proactive, constructive way.

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Serving Up Quality

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My recent magazine article on getting the right service level from your outsourced (or subcontracted) service provider has been published and already I’ve received positive feedback. This article came from a startling statistic from a recent IFMA research report that said getting the right service was an issue with 78% of the facility executives surveyed.

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Update your Contract Management

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Have you updated your contract management yet?

Contract management is moving from legal terms and specifications to an important tool between you and your service provider to ensure success.

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Michel Theriault

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