Posts Tagged ‘kpi’

Sparring Partners – At The Facilities Show, Birmingham, UK

I had the privilege of speaking at The Facilities Show in May. My seminar is based on a cover article I wrote for Building Operations Management Magazine called ‘Sparring Partners’ (email me for a copy of the article) and focused on the 3 ways we fail to develop a strong partnership with our service providers and what has to change in how we procure services, structure contracts and financial models and manage performance.

After all, it is critical to our success in FM to have service providers who are also successful and the old-school approach that is founded on an adversarial relationship that takes more time and energy than it should to manage, distracting us from strategic and business responsibilities.

Posted by Michel Theriault May 31, 2011

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

Key Performance Measurements (KPI) Carrot & Stick approach There’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.

Posted by Michel Theriault Feb 19, 2011

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Rewards and Penalties can lead to Bad Behavior

Sign Asking for High Score on Survey

I’ve talked about it before – how KPI’s and other measurements with rewards and penalties attached can lead to behavior you didn’t expect.

While this example isn’t from Facilities or Property Management, it does illustrate the issue quite nicely and has relevance to anyone who is measuring customer or service satisfaction in their property or facilities.

Posted by Michel Theriault May 31, 2010

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KPI’s aren’t the answer to getting Performance in Facilities Services

Having been on the supplier and the client side in the past, I know that Key Performance Indicators (KPI’s) themselves don’t result in performance. While some people like the carrot and stick approach, you need a management approach that uses measurements (and other techniques, not just KPI’s) to get performance. Don’t just rely on a passive performance measurement system. In fact, sometimes KPI’s can even drive the wrong behavior if you aren’t careful.

Posted by Michel Theriault Apr 19, 2010

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Manage Performance, Don’t Just Measure It at the IMEC Conference

I had the pleasure of being invited to speak at the 2009 International Maintenance Excellence Conference recently. (IMEC.ca) Here is the blurb:

Do You Want Better Results? Don’t Just Measure Performance, Manage It!
Performance isn’t just about measuring results. You must implement management techniques that use performance measures proactively to drive behaviour and improve results. Start with measurement data and KPI’s, understand their impact on employee and subcontractor behaviour and implement a management approach that influences behaviour and drives results.

The conference is hosted by the University of Toronto’s Centre for Maintenance Optimization & Reliability Engineering (C-MORE) and organized by the publishers of Maintenance Technology Magazine.

My topic was a little different for the conference, which has an emphasis on technology, statistics and science to improve reliability, often for production facilities, factories and other organizations where high reliability and minimal unscheduled downtime are critical.

Posted by Michel Theriault Oct 25, 2009

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