The Leader Magazine

DEC 2017

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44 DECEMBER 2017 th E l E a DER Figure 3 Performance management With implementation of a new FM model, the challenge of managing supplier performance is important. In the bundled-service management model, suppliers are responsible for managing base business processes, tasks, and facility project work, and for ensuring safe work processes are employed in the field. Procurement, the CBRES governance board and contract owners developed KPIs (Figure 2), which help drive desired supplier performance while working onsite. Performance-measurement KPIs and metrics also were developed to support both large and smaller remote facilities, as under-performance at any site affects the overall performance of the supplier. Performance-monitoring tools Along with the change to a new maintenance and service delivery model came the need for a new way to audit/verify our suppliers' work and to provide motivation for exceptional service or consequences for substandard service. CBRES entered into a new procurement model built on performance-based contracts. The KPIs (Figure 3) provide additional measures for ensuring safety and work performance. During quarterly meetings, both the supplier and CBRES jointly discuss value- creation ideas, and review KPIs and financial targets, HES impact and highlights from quarterly stakeholder surveys. This meeting is a collaborative effort where both the supplier and client review performance data. Even during a time of mandatory cost savings, CBRES provides awards for safe operations and superior performance. Providing a financial award to our suppliers represents a period ending in a successful partnership where, ultimately, our tenants are rewarded with safe, reliable and exceptional service. How has the transition worked? Transition to the new facility model after years of out-tasked management requires not only a tactical shift in how work is performed, but also a paradigm shift for CBRES employees. Constant and clear communication, flexibility and collaboration are required to ensure the supplier staff, facility managers and their site-management support teams are informed about unexpected changes in the project plan or service schedule. The road to stabilization and transformation has been peppered with many successes and has generated just as many lessons learned. Through constant collaboration and communication, the suppliers and CBRES have resolved approximately 95 percent of implementation challenges and continue to create success stories. An important key to success in our post-sourcing environment will be how we work together with our strategic suppliers to resolve future unexpected challenges and improve partnerships, our operating model and the quality of services delivered. Anand Gadgil, operations support manager with Chevron Business and Real Estate Services (CBRES), has 25 years of facility management, engi- neering and consulting experience. Jason Hakes, CBRES global operations specialist, has 27 years of facility- management experience and now focuses on global sourcing, supplier performance and international service implementation. Theodora Foster, a commercial real estate veteran of more than 25 years, focuses on account sourcing and implementation, service alignment and standardization, and contract management as a global services specialist with CBRES. Figure 2 F E A T U R E A R T I C L E

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