Journal of Facilities Management Customer relationship management - - PDF document

Journal of Facilities Management

Customer relationship management for facility managers

Mike Hoots,

Article information:

To cite this document: Mike Hoots, (2005) "Customer relationship management for facility managers", Journal of Facilities Management,

• Vol. 3 Issue: 4, pp.346-361, https://doi.org/10.1108/14725960510630524

Permanent link to this document:

https://doi.org/10.1108/14725960510630524

Downloaded on: 01 November 2018, At: 23:35 (PT) References: this document contains references to 0 other documents. To copy this document: permissions@ emeraldinsight.com The fulltext of this document has been downloaded 9098 times since 2006*

Users who downloaded this article also downloaded:

(2003),"Understanding customer relationship management (CRM): People, process and technology", Business Process Management Journal, Vol. 9 Iss 5 pp. 672-688 <a href="https:// doi.org/10.1108/14637150310496758">https://doi.org/10.1108/14637150310496758</a> (2003),"Knowledge-enabled customer relationship management: integrating customer relationship management and knowledge management concepts[1]", Journal of Knowledge Management, Vol. 7 Iss 5 pp. 107-123 <a href="https://doi.org/10.1108/13673270310505421">https://doi.org/10.1108/13673270310505421</a>

Access to this document was granted through an Emerald subscription provided by emerald-srm:462515 []

For Authors

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/ authors for more information.

About Emerald www.emeraldinsight.com

Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 j ournals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.

Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

*Related content and download information correct at time of download.

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

Customer relationship management for facility managers

Received: 16th November, 2004

Mike Hoots

is an associate professor and programme coordinator for the Facilities Management four-year BS degree programme at Colorado State University-Pueblo in Pueblo, Colorado, USA, and director of The Facilities Solutions Center, headquartered in Pueblo West, Colorado. He also serves on IFMA’s Pikes Peak Chapter Board of Directors as Job Search and Resource Council Chairs. Mike is an IFMA Fellow and Certified Facility Manager as well as a licensed Professional Engineer with over two decades of experience in a wide variety of facilities and facilities management positions.

Abstract Customer relationship management (CRM) means developing a comprehensive picture of customer needs, expectations and behaviours and managing those factors to affect business

• performance. In the facilities management (FM) world, CRM

means looking at the FM function as a customer-intensive business function instead of merely a facilities services cost

• centre. And the management part implies an active rather than

passive role by the FM in influencing the customer’s perception

• f service success. Finding and closing gaps between customer

expectations and service delivery realities becomes the basis for CRM in the FM world. These gaps typically occur in the area

• f the ‘3 Rs’ — resources, response and respect. Key areas of

knowledge and skills covered in this paper include: defining CRM and distinguishing it from customer service; understanding the true measure of service success; uncovering the main impediment to service success and the main source of customer dissatisfaction; discovering and defining resource, response and respect gaps between customer expectations and service delivery realities; revealing unsatisfactory results of gaps; pinpointing strategies to close resource, response and respect gaps between customer expectations and service delivery realities; reliably saying ‘yes’ to every single constructive customer request — never say ‘no’ again. Keywords:

CRM, customer, relationship management, customer service

‘If I have been of service, if I have glimpsed more of the nature and essence of ultimate good, if I am inspired to reach wider horizons of thought and action, if I am at peace with myself, it has been a successful day.’ Alex Noble, 1979, http:// www.wisdomquotes.com/002343.html

Michael L. Hoots Associate Professor and Program Coordinator, Facilities Management & Technology Studies Program Colorado State University-Pueblo 2200 Bonforte Boulevard Pueblo, CO 81001-4901, USA Tel: +1 719 549 2838 Fax: +1 719 549 2519 E-mail: michael.hoots@colostate- pueblo.edu

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 346

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

The secret to CRM success is an ‘outside-in’ customer focus How about a Comfort and Productivity shop instead of an HVAC shop?

CUSTOMER RELATIONSHIP MANAGEMENT — DON’T YOU MEAN CUSTOMER SERVICE?

Customer relationship management (CRM) is the next step in the evolutionary advancement of customer service. Customer relationship management has its roots in sales. Rather than routinely trying to meet or exceed every customer’s wildest expectations, sales departments began studying customer buying habits and trends and scientifically matching service levels to revenue expectations. The trick was to minimise the number and seriousness of complaints, reward customer loyalty and keep customers coming back, all for a minimum outlay of expense. Special computer programs were even written actively to manage the entire process. Do these problems sound familiar? Customers cannot get consistent quality service. They need products and services faster then they can be delivered. They have to make several attempts to resolve problems and to get the job done ‘right’. What is wrong? The company’s department is designed inside-out. It is designed to provide products and services — not to help customers get products and services from the company. The problem is as simple as that — and that is the main difference between passive customer service and active CRM. With CRM, customers feel they are in control, because service providers embrace an outside-in relationship with customers. The secret to making CRM work is to turn the focus of customer service outside-in. From an incorrect inside-out perspective, departments first analyse their operations and facilities along with the capabilities of their people to determine what could be delivered to the customer. From that analysis they develop policies, procedures and systems, build plans, programmes and budgets, etc. At the end of this process, many facility managers end up with a department that is organised, equipped, staffed, trained and conditioned to deliver their products and services rigidly and ritualistically to their customers. The result: they lose sight of the customer’s perspective. Customer-driven, outside-in CRM means that departments first understand the customer, then move inward to operations. Within the context of customer-driven values, the systems and infrastructure capabilities needed to serve customers are developed. Implementation is made easy for customers, not the department. Instead of sub-departmental silos that inhibit superior customer relationships, everyone takes ownership and responsibility for customer satisfaction. Creating a single, unified view of the customer makes it much easier correctly to respond to real customer needs instead of to facility maladies and malfunctions. So what does inside-out and outside-in mean in real-world terms? An inside-out FM function might establish a heating, ventilating and air conditioning (HVAC) shop to focus on equipment needs. An outside-in FM function might create a Comfort and

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 347

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

Productivity shop to focus on real customer needs. If that just sounds like fancy wordsmithing, it is not. When implemented correctly, the differences between the two resulting states of customer care are profound. The outside-in approach requires radically different organisation, staffing, training and evaluation

• systems. The mission, vision, goals and objectives of the outside-in

department are powerfully distinct from those of the inside-out department. Achieving a fully functioning CRM end state is not easy; after all, old habits die hard. Long-held managerial, attitudinal and even emotional barriers must be overcome. New and imaginative systems, processes and procedures that flow from customer aspirations must be introduced. The development and implementation of these CRM systems, processes and procedures are beyond the scope of this introductory paper. They require a deep understanding of customer-driven value statements, customer- centric organisational techniques, customer/provider response and communication mechanisms and other related topics. The remainder

• f this paper will explore the preparatory steps necessary to move

toward becoming a genuinely customer friendly FM function.

RELATIONSHIP BETWEEN CRM AND CUSTOMER EXPECTATIONS

Many readers are familiar with the often stated goal of good customer service — to meet or exceed customer expectations. But what if customer expectations appear unreasonable? What is a company supposed to do when customers fail to or even refuse to understand its FM resource predicament? Is there a reasonable, businesslike alternative to telling them to ‘go to heck in a hand- basket’? Instead of just trying to meet or exceed customer expectations, why not manage customer expectations? Imagine dining in some up-market, Hollywood restaurant that caters to rich movie stars. A couple of Oscar winners walk in and immediately attract a gaggle

• f waiters and wine stewards. Do other diners resent the higher

level of service they attract? Probably not, because that is what one would expect in such a setting. What about those casino high rollers in Monte Carlo and the special ‘perks’ and ‘comps’ showered on them? Again, the perception is not that clients are being treated unfairly because their expectations are different from those of the privileged class, and their perceptions of service success have been successfully managed by the restaurant and by the casino. For the typical facility manager, the concept is basically the

• same. Rather than simply provide the finest service possible and

hope for the best, facility managers should achieve an awareness of customer expectations and actively manage them. Management implies an active rather than passive role by the service provider in influencing the customer’s perception of service success. Perception Perception is reality — modified by expectation

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 348

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

Customer service is about saying ‘yes’ involves acquiring, interpreting, selecting and organising sensory

• information. Since reality is so highly subject to interpretation,

managing customer perceptions is the real key to achieving service success. Think of a function not as a selection of products or services, but as a portfolio of customers. That means being customer focused and customer driven. All aspects of a function are designed and run to satisfy its customers by addressing their requirements for products and by providing high-quality, responsive service. The customer is in the driver’s seat, determining the rules of the relationship — managing the relationship becomes the facility manager’s job.

WHAT IS SERVICE SUCCESS AND WHY IS IT SO HARD TO ACHIEVE?

First, let us answer a fundamental question: what is the true measure of service success? And let us not answer that question from the company’s perspective or from the perspective of a disinterested third party — what does service success mean from the customer perspective? And not some complicated, situationally dependent definition — what does it mean to an FM customer at the gut level? The true measure of FM service success simply means: . Reliably saying ‘yes’ to every single constructive customer request — never say ‘no’ to a customer. Straight and to the point and, from a customer perspective, it would be nirvana to work with a service provider who never says no to any constructive request. Notice that the author did not use the phrase ‘reasonable request’. Like reality, what is reasonable is also highly subject to interpretation. What is constructive is already defined in the firm’s purpose, vision and mission statements along with its goals and objectives. By definition then, a constructive request is designed to maximise shareholder (private sector) or stakeholder (public sector) value while helping to achieve corporate goals and objectives. Put another way, a truly constructive customer request does not merely placate parochial desires and

• whims. And do not forget the word ‘reliably’. We need to say what

we mean and mean what we say. And what could be better from a service provider standpoint? Does any facility manager enjoy saying ‘no’ to customers? Does saying ‘yes’ not make him/her feel good too? So why keep saying ‘no’? The reason is quite simple. The main impediment to service success is gaps between customer expectations and service delivery realities. The American Heritage Dictionary defines a gap as a problematic situation resulting from a conspicuous difference or imbalance. Because of the inability to bridge the gap between customer

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 349

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

expectations and service delivery realities, one feels compelled to say ‘no’. The result of gaps is customer dissatisfaction with less than successful service. The secret to service success, therefore, is to close the gaps between customer expectations and service delivery realities. The following is a very simple illustration of the problem. A department head requests that the waste receptacles in his area be emptied five times daily. The FM publicised and management endorsed standard is once daily. A gap exists between customer expectations and resourced realities. The natural inclination might be for the facility manager to say ‘No, I’m sorry but we’re only funded for once daily waste collection’. But saying ‘no’ is not an

• ption. What should the facility manager do to close the gap?

First, attempt to close the gap in customer expectations. Is this a constructive expectation? After all, the customer will suffer frequent interruption during the work day if receptacles are emptied every two hours or so. Perhaps all that is needed is more waste receptacles or bigger receptacles. Perhaps better receptacle placement would help resolve the problem. Suppose that after some creative expectation management, the customer agrees that twice a day is sufficient. Secondly, attempt to close the gap in resources. Twice daily waste service still constitutes ‘above standard’ service. In accordance with the firm’s negotiated internal service agreement for janitorial services, the customer must fund ‘above standard’ service. Finally, close the remaining gap. Quite simply, let the customer say ‘yes’ or ‘no’ to himself. Let the customer say ‘Yes, I’ll pay the above standard rate’ or ‘No, I’ll get by with once daily waste collection.’ Note: the facility manager did not say ‘no’. The facility manager managed the scenario in such a way that, if the customer chooses to stay with once daily pick-up, it is the customer who says ‘no’ to himself. If that sounds trivial, it is not. The facility manager is in the customer service business, not the ‘no’ business. Consider how important it is that, if necessary, the customer says ‘no’ and not the facility manager. Many times, for example, in- house FM service providers are directly funded and so ‘enjoy’ a position of power. Direct funding means that the FM operating budget is provided directly to the FM at the beginning of the budget year instead of being reimbursed throughout the year via a charge-back or similar system. Saying ‘no’ might be construed as an abuse of power and sow ill will among the customer base. If it has to happen, let the customer play the ‘bad guy’. In summary, whenever possible, let the customer decide whether it is in his or her best interest to lessen expectations or to provide supplemental resourcing. Help guide the customer through the process of closing the expectation–service delivery realities gap. To maximise ‘whenever possible’, the facility manager must be creative and imaginative. The facility manager must be focused on outside- in CRM and not inside-out customer service. Where there are gaps, there is dissatisfaction

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 350

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

Close the ‘3 Rs’ gaps — resources, response and respect ‘R-E-S-P-E-C-T, find

• ut what it means to

me’ (Aretha Franklin)

WHAT GAPS ARE WE TALKING ABOUT?

The driving force behind customer dissatisfaction with FM service are gaps in the ‘3 Rs’: resources, response and respect. Lacking sufficient resourcing to meet customer needs, or absent the ability to respond effectively to organisational requirements, or without mutual respect between facility manager and customer, achieving service success is unlikely. Effectively managing gaps in the ‘3 Rs’ forms the basis for effective FM CRM. Resource gaps result from shortfalls in the seven key, basic, assessable resources:

• 1. time
• 2. money
• 3. people
• 4. facilities
• 5. materials
• 6. supplies
• 7. equipment.

In other words gaps in: . time available or allowed vs what is needed . funding allocation vs what is needed . amount and skill level of labour accessible vs what is needed . facilities accessible vs what is needed . materials and supplies provided vs what is needed . equipment obtainable vs what is needed. Response gaps can result when: . bureaucratic procedures conflict with flexible customer needs . FM department structure is mismatched to organisational needs . current demands interfere with future needs planning. Respect gaps might result from: . customer quality demands unmet by FM quality provided . customer perceptions regarding the FM department . customer perceptions regarding FM perceptions of customers. To help illustrate the connection between closing gaps and service success, several specific examples of gaps between customer expectations and service delivery realities and some ‘gap closers’ that can be employed to more closely align customer expectations and service delivery realities are considered.

RESPECT: GAPS AND GAP CLOSERS Respect gap: Relentless demand for perfection by customers

Quality is one of three essential elements of success in the service delivery triangle, the other two being cost and time (see Figure 1).

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 351

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

Customers today are more demanding than ever. The globally competitive marketplace provides today’s consumers with choices never before imaginable by previous generations. Customers bring these increased expectations from their private lives into the

• workplace. They are increasingly intolerant of service providers

who cannot quickly deliver the same level of affordable quality (value) they have grown accustomed to outside the office.

Gap closer: Eliminate outmoded thinking about the quality/ cost/time dilemma

Readers may remember, as children, reading that they would have to wait four to six weeks for delivery of a Captain Wizbang cereal box decoder ring. Would you tolerate that today? Imagine a customer going to a car dealer and being told a new car can be bought now for a great price but he/she will have to settle for lower

• quality. The customer would immediately head for another
• dealership. Today’s consumers expect it all — good quality, at a

reasonable price, now. Some still cling to or (heaven forbid) espouse archaic philosophies such as ‘You can only have two but never all three of the essential elements of service delivery’. Some still believe in the

• ld adage, ‘If you are in a hurry and you want it badly, that’s just

how you are going to get it’. Contrast that with the modern day instant gratification philosophy espoused by the actress Meryl Streep in the movie Postcards from the Edge, where she declares that ‘the only thing wrong with instant gratification is that it takes too long!’ Financially savvy bosses understand the meaning behind the ‘Streep way of thinking’. Once a decision is made, for example, to reorganise or renovate office space, every second the new configuration is not in place is costing the firm money. It is assumed, of course, that the decision to reorganise and renovate will have a positive impact on revenues by increasing efficiency, effectiveness, productivity and/or profitability. Otherwise, why else would a for-profit corporation make such a decision? If management could wave a magic wand and instantly create the new space, they would do so without hesitation, because they could begin realising enhanced revenues immediately instead of waiting for the facility manager to complete the job. Companies need to Quality, speed and economy — you can promise and deliver all 3

Quality Cost Time

Figure 1: Service delivery triangle

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 352

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

‘Do overs’ are great in life but not in customer service Communicate quality CRM as simply as possible respect their customer’s demands for immediate perfection instead

• f trying to convince them how unreasonable they are being.

Respect gap: Getting the job done right the first time

Apart from cost effectiveness, why do a job right the first time? The reasons are plentiful and obvious. Doing a job right the first time minimises workplace disruption, enhances productivity and promotes customer confidence in the competency of the FM

• department. Customer confidence means customer respect.

Gap closer: Reward getting the job done correctly the first time

If a department is having trouble getting jobs done correctly the first time, a reward pool of money and a point system can be set

• up. If a job is done correctly on the first visit, two points are

awarded to those who worked on the job. If the job takes more than one visit but still gets done correctly, one point is awarded. If the job reopens within ten days, five points are subtracted. The system can be used to reward top performers. At the end of the specified award period, the total points awarded are calculated. Then the reward dollar pool is divided by the total points awarded to get the point dollar value ($/point). The cash awards are distributed and the results posted.

Respect gap: FM workers slow to honour customer quality demands

The respect gap can also go the other way. Do FM workers often perceive customers as whining, spoiled brats? Such a bitter attitude can foster a disrespectful attitude toward certain customers and damage overall morale.

Gap closer: Reward workers who honour customer quality demands

When staff are observed providing quality service in a noteworthy manner, pass out on-the-spot service success cards. Then enter the cards in a biannual drawing for top quality prizes such as DVD players, trips to exotic destinations, etc.

Respect gap: FM workers do not know what level of quality customers expect

Workers come and go, and it is hard to achieve a consistent level of customer success, especially in high turnover positions. Who has time these days to run an orientation programme that can bring new employees up to seasoned veteran quality standards?

Gap closer: Say it in pictures

Why not take a page from the personal learning education market? Set up self-paced, individual learning modules that quickly bring new employees up to scratch. Whenever possible, avoid long-

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 353

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

winded textual explanations and instead capture significant improvement ideas in pictures and post them in a notebook or computer file for all new employees to review during their

• rientation. The previously unacceptable condition might even be

photographed and contrasted pictorially with the improved condition, as in Figure 2. A picture says a thousand words. And even seasoned employees should be required periodically to review the notebook to learn new ideas and recall forgotten concepts.

Respect gap: Customers treat FM people rudely or gruffly

One is always told to respect customers, but it should be a two-way

• street. What is supposed to happen when customers treat FM

employees discourteously? It becomes easy to resent customers when they ‘abuse’ facility managers and staff.

Gap closer: Smile!

Psychology should be used in management of customer relations. Take advantage of what psychologists call the ‘mirror effect’. Try this the next time you greet someone — maintain a stern or serious expression as you shake hands and note the expression of the person you are greeting. Most likely, it will mirror your own. Well, instead of a sour-puss expression, smile and watch how others

• react. Smile even during phone conversations — believe it or not,

you can really hear the difference.

Respect gap: Critical customers always get better service

Do service requests from support or administrative departments always seem to get shuffled to the bottom of the deck while the

• perational areas always get top priority? Sometimes support or

administrative needs are really more important than any others. These customers do not expect to be treated like mission critical units all the time — they just want to be treated fairly.

Gap closer: Support organisation needs and be fair to all

Create a service request prioritisation system that meets the needs

• f operation critical customers without ‘automatically’ slighting

support or administrative departments. Avoid the perception of playing favourites by using a matrix prioritisation system instead of When you’re smiling, the whole world smiles with you

THIS NOT THIS THIS NOT THIS THIS NOT THIS Figure 2: Unacceptable condition contrasted pictorially with improved condition

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 354

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

Balance criticality of work requests with customer contribution to corporate goals and

• bjectives

‘Get there firstest with the mostest’ (American Civil War General, Nathan Bedford Forest) a linear one. A matrix system like the one shown in Table 1 respects each unit’s unique contribution to meeting corporate goals and objectives.

Respect gap: Customers do not appreciate a good job

Never underestimate the importance of morale to the effective

• ffering of FM services. Employees look to facilities managers to

communicate effectively their function’s value to the organisation. The manager must be ‘the great communicator’. When employees hear praise of their efforts from customers, it means much more to them than just hearing it from the manager.

Gap closer: Do not ask customers how well you are doing — tell them how well you are doing

It is not enough to perform customer satisfaction surveys. Does your department have its own website on the company’s Intranet? Are you actively and persistently marketing your department’s value to every customer audience that you serve? Remember: CRM is an active, not a passive activity. Do not wait for customer accolades — elicit them. But be sure you can back up your claims

• f superb service.

RESPONSE: GAPS AND GAP CLOSERS Response gap: FM workers seem to get switched from job to job

Does it seem impossible to get the right people in the right place at the right time? Facilities management blue collar workers cannot finish one job before being pulled off to complete another. Multi- task teams are formed, split up and re-formed again and again. A job is barely finished when it is time to do a makeover just a short time later. These inefficiencies cost time and money. Why is it that customers cannot make up their minds?

Gap closer: Closely align tasks with organisation structure

Perhaps the problem is not rapidly changing customer requirements but an FM organisational structure that is ill suited to the current business environment. Perhaps customers are reacting logically to business trends and movements, and it is facility managers who are

Table 1: Units’ contribution to meeting corporate goals and objectives

Operational Support Administrative Compliance 1 2 3 Actual or impending work stoppage 4 5 6 Mission essential 7 8 9 Significant 10 11 12 0 (zero)=CEO’s special priority.

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 355

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

• ut of step with the business they support. By analysing a

representative sampling of service requests along with their duration, frequency and seasonality, they might better match FM

• rganisational structure to corporate organisational demands.

Response gap: FM workers not able to readily meet all facility needs

The FM in-house workforce seems to lack the needed skills, actual experience, training or expertise, tools and equipment or the preparation time necessary to meet the myriad demands of

• customers. By trying to be all things to all customers, the FM

function ends up spread too thin and unable to satisfy the needs of any customer.

Gap closer: Set core competencies and then staff/equip to accomplish them

First, determine what you really need in-house workers to do. Next, examine the advantages of having an on-site staff and then contract

• ut those tasks unsuitable to the in-house workforce. Take

advantage of contract opportunities to match FM function capabilities better to customer expectations. Since it is so important for the facilities manager to maintain a balance between in-house and contract capabilities, how does a facilities manager know when it is best to out-task with contractors

• r assign in-house forces to complete a task? Today especially, very

few FM functions have every skill they need on staff. When this is the case, the choice of how to accomplish a task is fairly straightforward — if the skill is not available from staff, contract for it. When a choice is possible or there is doubt about whether to acquire the in-house capability, the following guidelines may prove useful either alone or in combination: — It is generally preferable to contract a task instead of doing it with in-house forces when: . the in-house capability is not reliable, efficient or responsive to customer requirements in this particular skill area . it is more economical to contract . the task stretches the capability of the in-house force in scope and/or complexity . the in-house force has an excessive backlog of work and cannot react in a timely manner . the in-house forces cannot readily acquire the required training, tools or equipment . funding for the project is uncertain (a purchase order can be put ‘on the shelf’ and awarded subject to availability of funds) Know what you need to do for yourself as well as what you can pay other people to do for you

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 356

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

. the in-house forces would be ‘distracted’ from their primary (core) mission and functions . the work is cyclic or non-repetitive and does not justify hiring a full time in-house work force . the task is disdainful or would otherwise adversely impact the morale of the in-house force . mobilisation of the in-house work force is impractical or too lengthy . the workload of the in-house force is so large that they cannot complete the project by the required date . the cost of equipment, training, etc. needed to complete the task cannot be reasonably amortised. — It is generally preferable to complete a task with in-house forces when: . the in-house service is so reliable, effective and/or responsive to customers that it is worth any resultant inefficiencies . because of emergency conditions, the in-house force can react sooner (not always the case) . the task is so simple that the contract or purchase order process can take longer than the task itself . the task is unique and best done by specially trained in-house personnel . the task is so small that a contract or purchase order would not be economically feasible . the task is a ‘good fit’ with the basic purpose and mission of the in-house force . mobilisation of a contract force is impractical or too lengthy . contracting or procurement support is worse than the negative impacts of doing the job in-house (severe cases only) . loss of a special in-house skill may put the organisation at a competitive disadvantage.

Response gap: Things are changing too quickly to keep up

Does the FM function always seem to be behind the power curve? There is never enough time to react — fighting alligators and fires simultaneously (crisis management) is the norm.

Gap closer: Stop fighting the inevitable and embrace necessary change

During preparation for the D-Day invasion, Dwight Eisenhower noted ‘the plan is nothing — planning is everything’. Facility managers must take the time — or better yet — make the time to plan and thus control change. Do enough planning to have a comfortable balance between proacting and reacting. Never allow the routine to become non-routine. ‘Routinise’ as many processes and procedures as possible, for everyone in the organisation. This will not make work dull and boring but instead free up time to

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 357

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

engage in creative activities that lead to increased customer satisfaction and productivity.

RESOURCES: GAPS AND GAP CLOSERS Resource gap: There is not enough time to do everything needed

Does your spouse complain that you spend more time with your Day Planner than with him or her? Do you have trouble seeing your computer monitor through the blizzard of Post-it notes? Is work life intruding on your personal life? Do you even remember what it is like to have a personal life? About one-third of our lives is spent sleeping, one-third tending to personal lives and one-third at work. If work life is too stressful, it will inevitably affect personal life and can even bring about poor sleeping patterns.

Gap closer: Buy time with technology

Quite simply, productivity means extracting maximum outputs from minimum inputs. After facilities, information technology often represents the greatest capital investment for many corporations. Like all investments, investments in technology are expected to show a return. Facility managers must therefore select technology that will demonstrably increase productivity and then ensure the workforce is continually trained to maximise benefits from the technology. Which nation is the most productive on earth? It might surprise many Americans to learn that the level of US productivity has been very high compared with most other countries for many years. A recent study of productivity by the Organisation for Economic Co-

• peration and Development (OECD) found that only Belgium,

Finland and the Netherlands have been able to match the productivity levels of the US. Meanwhile, industrial giants such as Japan and Germany are currently less than 80 per cent as productive as the US. The key for the US has been its ability to leverage the power of technology. Desktop information management (DIM) software (Microsoft Outlook, etc.), everyday application software (Microsoft Word, Excel, etc.) and facility management information software (CAFM, CMMS, etc.) can be used to help: . increase productivity (without working harder) . manage time better (while winning back a personal life) . reach a sense of closure at the end of the day (so you can sleep like a baby) . turn the phrase ‘computers are our friends’ into a reality (they really are sweet, once you get to know them!). Let technology do what it is good at — instant and repetitive duplication — so you can free your mind to do what you are good Be resourceful with your resources Be careful not to draw overly distinct lines between play and learning and work

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 358

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

You can’t figure out where to go until you know where you are at — creating, visioning, etc. Use technology to adjust activities to your own biorhythms; that is, fit technology to your needs, not yours to the technology’s. Take advantage of the computer’s perfect memory and use the past to plan for the future. Gauge your

• verload point and use technology to reach closure at the end of

the day. Use technology to become a multi-tasker instead of a consecutive doer. Share tips with co-workers (perhaps they will share theirs with you). And do not just work with technology, play with technology.

Resource gap: Outdated equipment with no budget for replacement

Ownership brings with it a cost of ownership. If the outlook for securing long-term asset sustainment and replacement funding in the FM operating budget is slim, then the manager should ask ‘Why own when I can rent?’

Gap closer: Avoid the temptation to own all equipment needed or to do everything in-house

By leasing instead of owning equipment, facility managers can avoid ownership of as many capital items as possible and thus avoid maintenance, storage and many other such cost headaches. They may even take advantage of ‘off balance sheet’ accounting to help pump up the corporation’s return on assets (ROA) financial

• ratio. Instead of leasing and doing it in-house, why not out-task

capital-intensive activities that are not part of the department’s core competencies and thus might require excessive preparation to regain in-house proficiency.

Resource gap: Facilities do not properly support operations

Does it seem that phrases like these are heard on a too regular basis: ‘If only’ or ‘I wish’ or ‘Maybe some day’ or ‘I’m so tired of’

• r ‘I’ll be glad when’ etc.? You might even be one of the people

uttering those phrases. Listen to those voices carefully — your facility is talking to you.

Gap closer: Listen to what your facility is telling you

Do not ignore the voices — document those wistful ‘If only’ musings about the facility. Creatively brainstorm with staff and customers about how to achieve a greater vision of corporate productivity and profitability. Audit your facility’s current capabilities and develop a phased plan to come as close as possible to your ‘If only’ facility.

Resource gap: My budget cannot support service success

Are you getting tired of: . watching facility cost savings initiatives used to decrement your

• perating budget?

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 359

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

. constantly seeing your budget cut and feeling you have no control

• ver the process?

. always being told to do more with less? . trying to get blood from a turnip? Do not feel that the departmental budget is all the money there is in the world to meet customers’ facility requirements.

Gap closer: Share the cost and soak the rich

It is hard to be motivated to produce cost savings when you know those savings will just result in cuts to the operating budget. It is certainly true that, absent generating cost savings, the facility manager may find him/herself without a job, but that alternative is certainly less than inspiring. What if at least a portion of the proceeds from cost-cutting initiatives were retained by the unit creating those savings? Even better, what if those retained savings were invested in facility productivity initiatives? CFOs regularly retain corporate earnings to invest in research and development to grow the firm. Why not apply the same logic to facility savings? Why not propose sharing savings from cost-cutting initiatives with the CFO for the first few years and investing those proceeds in

• ther facility productivity improvements?

Soak the rich? Remember that other people in the organisation have money too and much of that money is discretionary. One universal characteristic of executives who rise high in the

• rganisation is that they get things done. They not only come up

with great ideas, but also turn those ideas into reality. These are driven, performance-oriented leaders. Take advantage of this

• attribute. Cajole (coerce, extort, whatever) the bosses into funding

their own ‘COBIs’ (corporate officer bright ideas) and take the pressure off your meagre budget.

Resource gap: I cannot convince my boss to fund me properly

Is upper management confident in your ability to: . project funding needs accurately? . account for commitments and expenses properly? . deliver promised services within budget? . demonstrate the costs and benefits from facility investment decisions?

Gap closer: Learn how to add FM financial value to corporate decision making

‘The gap, dear Brutus is not in our stars but in ourselves!’ Educate yourself in the ways of finance and budgeting. Consult with experts at the local professional FM chapter (buy someone lunch and watch how much help you will get). Take focused community college courses. Participate in professional development By not acting like an

• verhead

department, you won’t be treated like

• ne

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1741 ^ 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 360

Hoots

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

programmes offered by the International Facility Management Association (IFMA), the British Institute of Facilities Management (BIFM) and other similar organisations.

SERVICE SUCCESS STRATEGY

The key to service success, therefore, is to close the gaps between customer expectations and service delivery realities. Facility managers need to work actively to: . uncover gaps . define gaps . close gaps. Facility managers can enhance service success by closing gaps in the 3 Rs: . resources — be resourceful . responsiveness — always plan for success . respect — provide memorable service. Remember that internal and external customers alike seek value — value defined on their terms, not yours. As gaps to service success begin to narrow and even disappear, the true value of FM activities will become apparent to those who support and to those who are supported.

Customer relationship management for facility managers

# E M E R A L D G RO U P P U B L I S H I N G L I M I T E D 1 7 4 1 – 0 9 8 3 J o u r n a l o f F a c i l i t i e s M a n a g e m e n t VO L . 3 N O . 4 P P 3 4 6 – 3 6 1 361

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)

This article has been cited by:

• 1. Per Anker Jensen Centre of Facilities Management, Technical University of Denmark, Kgs. Lyngby, Denmark

Theo J.M. van der Voordt Faculty of Architecture, Delft University of Technology, Delft, The Netherlands Christian Coenen Institute of Facility Management, ZHAW - Zurich University of Applied Sciences, Zurich, Switzerland Anna-Liisa Sarasoja School of Science and Technology, Aalto University, Espoo, Finland . 2014. Reflecting on future research concerning the added value of FM. Facilities 32:13/14, 856-870. [Abstract] [Full Text] [PDF]

• 2. Florence Yean Yng Ling Department of Building, National University of Singapore, Singapore, Singapore Weiyan

Toh Department of Building, National University of Singapore, Singapore, Singapore . 2014. Boosting facility managers’ personal and work outcomes through job design. Facilities 32:13/14, 825-844. [Abstract] [Full Text] [PDF]

• 3. Carla Alexandra Barbosa Pereira, João José Matos Ferreira, Helena Maria Batista Alves. 2012. Tacit Knowledge

as Competitive Advantage in Relationship Marketing: A Literature Review and Theoretical Implications. Journal

• f Relationship Marketing 11:3, 172-197. [CrossRef]
• 4. Arun Kumar Agariya, Deepali Singh. 2011. What Really Defines Relationship Marketing? A Review of Definitions

and General and Sector-Specific Defining Constructs. Journal of Relationship Marketing 10:4, 203-237. [CrossRef]

• 5. Donald ChruscielIowa State University, Ames, Iowa, USA. 2011. Environmental scan: influence on strategic
• direction. Journal of Facilities Management 9:1, 7-15. [Abstract] [Full Text] [PDF]
• 6. Alireza Faed, Afsaneh Ashouri, Mehdi FaedThe Transition of Sports Marketing from E-CRM to E-SRM 569-573.

[CrossRef]

• 7. Eleni K. KevorkAthens University of Economics and Business, Athens, Greece Adam P

. VrechopoulosAthens University of Economics and Business, Athens, Greece. 2009. CRM literature: conceptual and functional insights by keyword analysis. Marketing Intelligence & Planning 27:1, 48-85. [Abstract] [Full Text] [PDF]

• 8. Chuni WuDepartment of Information Management, Hsing‐Kuo University of Management, Tainan, Taiwan.
• 2008. Knowledge creation in a supply chain. Supply Chain Management: An International Journal 13:3, 241-250.

[Abstract] [Full Text] [PDF]

Downloaded by Northumbria University Library At 23:35 01 November 2018 (PT)