Framing KPI in Facilities Management ? Measuring what matters

Facilities Management (FM) is gradually evolving towards becoming a more strategic business function from being a simple non-core business function. FM, as a business function, has shown rapid growth and has become a spend area capable of adding enormous value to the organization. Buyers and service providers are evolving and aligning themselves to this shift. However, this shift demands transformation in various strategic and tactical FM processes involving buyers and suppliers. A change in how we approach performance measurement including Key Performance Indicators (KPI), though, probably not the most important process, is definitely a necessary step and needs to be a top priority for all FM procurement managers. Traditionally, KPI have been, in general, considered as being a tool/process to measure supplierï¾Ãƒâ€šÃ‚Æ’??s performance and to ensure compliance. The process, for most part of it, has focused on past measurements, past surveys and past analysis. While, they can be very insightful and interesting to look at, very few buyers have actually been able to convert those past numbers/data/measurements into actionable strategies for the future, to drive optimization, continuous learning and performance improvement. With consolidation and increasing amount of spend with fewer suppliers, there is an even increasing need to be able to do more with performance measurement.?? In a nutshell, there needs to be more focus on utilization of the measurement to further optimize processes, reduce spend and drive more value from the outsourced FM.