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Vendor Performance Management Program Drives Efficiency and Supplier Effectiveness

		Related Service Offerings
		·  Performance Management
		Related Areas of Expertise
		·  Facilities Management
		EMS Can Help You...
		·  Measure Performance Effectively ·  Manage Your Suppliers Better

Overview:

Within a six-month time frame, Expense Management Solutions (EMS) helped this major financial services company implement a comprehensive performance management program for facilities management services across its 8.5-million-square-foot real estate portfolio.

Client: 

The client is a leading global provider of financial services and investment resources that help individuals and institutions meet their financial objectives.

Challenge:

This company outsourced its facilities management services to two leading real estate providers.  However, one year into the relationship, the company was having difficulty measuring the suppliers’ performance consistently across regions and from one supplier to the other.  The client hired EMS to develop a customized Performance Management Program to enable consistent measurement of both suppliers across five geographic regions involving 50 separate functions.  The goal was to complete the project, including user orientation and implementation, within six-months in order to begin implementation at the beginning of the next fiscal year.

Solution:

• Customize Performance Management Program for implementation on the entire portfolio
• Develop a detailed service level agreement for each of the 50 functions assigned to the facilities  management provider
• Link each service level agreement to a series of management scorecards designed to measure the supplier’s  performance on a quarterly and annual basis
• Apply best practice data to generate specific recommendations regarding performance metrics, such as  response goals, satisfaction levels and compliance targets
• Weight the measures that would indicate successful achievement of the client’s most critical objectives

Results: 

• Within six months, the company and both providers were operating effectively within the new framework. 
• The company’s internal vendor managers achieved their goal of enabling consistent cross-regional/cross- vendor measurement. 
• Providers had a clear understanding of the company’s expectations and could communicate effectively to  their staff what constituted success. 
• Staff could efficiently manage activities and focus on achieving critical performance goals without  distraction.