BuildingEngines. Operations Performance Management (OPM) Don t Just Work... Perform. Success Kit. Operations Performance Management

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1 Success Kit Market: Commercial Real Estate Role: All Purpose: Education Operations Performance Management (OPM) The last several years have brought a number of dramatic changes to your business. Today, sustaining your business is largely dependent on maximizing asset value and net operating income by improving the day-to-day management of your property and implementing rigorous service standards. OPM is a strategy to assure service delivery through a platform of real estate technology tools that document and report against set benchmarks and targets. OPM delivers "in the moment" performance visibility and measurable, bottom line results. BuildingEngines Don t Just Work... Perform. Building Engines (866)

2 Building Engines (OPM) Success Kit About Building Engines Building Engines is a web-based and mobile system providing owners and managers of all property types with a comprehensive solution for improving operations and workflow management. The Building Engines Solution consists of over a dozen integrated modules for everyday tasks including work order management, preventive maintenance, visitor access control, insurance compliance monitoring, incident tracking, inspections, document management, and more. Real Estate owners and managers employ Building Engines to capture, communicate, assign and report every aspect of property performance and the tenant experience through the regular collection of data from daily tasks, collaborative systems, and enhanced reporting and analytics that track execution against customized goals. Building Engines simplifies complexities by improving visibility, information extraction, and communications- helping customers realize noticeable improvements in tenant experience, as well as higher operating efficiencies. Section 1: OPM Defined... Section 2: OPM Datasheet... Section 3: OPM Checklist: Best Practices for Tenant Service Delivery Assurance... Section 4: Case Study: Data-Driven Service Excellence... BuildingEngines BOMA-OPM-0612

3 Success Kit OPM Defined What is (OPM)? (OPM) is the alignment of all business units within an organization to ensure they are working together to achieve core business goals. An OPM strategy melds technology tools to business discipline to transform operational data into actionable information. An OPM program begins with critical goal-setting and benchmarking that allows property owners and managers to establish and measure true links between activities and results. Data from all daily property management activities is captured and packaged as exception reports and Key Performance Indicator dashboards, and is compared against key business goals. The end result is critical in the moment visibility into performance and informed decision making. What are Key Performance Indicators (KPIs)? KPIs are an integral part of any OPM program and help an organization define and measure progress toward organizational goals. KPIs are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. KPIs for property management generally fall into seven categories: Occupancy, Maintenance, Tenant Relationship, Rent Collection, Churn, Revenue, and Contract Management. Some examples of Key Performance Indicators for property management include Occupancy Rate, Repairs Completed on First Visit, and Work Order- New to Completed Time. Why use OPM for Service Delivery Assurance? OPM for service delivery assurance allows you to do more than just say you deliver great service, but to document and prove it. OPM provides answers to the following service delivery questions: Are we hitting our service delivery targets? How do our people know how to prioritize tasks and what to do first each day? Who are our peak performers and where do we need some remediation? Which tenants are being underserviced or overserviced? Which buildings are performing better than others? And Why? Section 1 Building Engines (866) BuildingEngines

4 OPERATIONS PERFORMANCE MANAGEMENT (OPM) For Tenant Service Delivery Assurance A strategy for optimizing tenant service through real estate technology tools and best practice guidance. OPM for tenant service delivery assurance compares service delivery against benchmark targets, delivers in-the-moment visibility into performance, and utilizes real and current data to document and prove service delivery and tenant satisfaction. 1. Define Service Standards 2. Measure Performance Priority 1 Start Metric: New Start Metric: New End Metric: Arrived End Metric: Completed Target: 15 minutes Target: 2 hours Cleaning (81) < click to add a new Metric > Priority 2 Start Metric: New Start Metric: New < click to add a new Metric > Priority 3 Start Metric: New Start Metric: New End Metric: Arrived End Metric: Completed End Metric: Arrived End Metric: Completed Target: 30 minutes Target: 8 hours Target: 1 Day Target: 2 Days Plumbing (393) Too Hot/Too Cold (244) Lighting (302) Keys/Access (43) Carpet (37) < click to add a new Metric > 3. Act on Escalations 4. Set Your Team up for Success! ACT! Hours (average) Work Order Performance Trend: New to Arrived /25 Target Priority 2: 0.5 hr. 06/26 06/27 06/28 06/29 06/30 Escalation Alert! Priority 2: 1.98 hrs. 07/01 Work Orders Leaks - # Details: Tenant: MAIN STREET CORPORATION Status: Completed Assigned To: Sean Smith Building: City Financial Building Floor: 13 Location: ceiling above water cooler Notes: check source of leak and replace tile Labor and Materials: $23.00 Equipment: Notes: History: Date/Time 06/30 01:50 PM 06/30 01:15 PM Service Level: Priority 3 Must Arrive By: 06/30 at 01:07 PM Must Complete By: 07/01 at 10:07 AM Private Private Details Added labor/checked for leaks- from spill? Arrived- updated via mobile device: 01:15PM Section 2 Building Engines (866) BuildingEngines

5 OPERATIONS PERFORMANCE MANAGEMENT (OPM) For Tenant Service Delivery Assurance Success Kit Key Benefits Key Features In-the-moment visibility into performance by priority level, service type, building, tenant, or person. Crystal clear data and proof of performance Root-cause analysis of problems and non-compliance No more waiting for outdated surveys to identify potential problem areas Ability to identify peak performers throughout the organization. Clear understanding and visibility for management and maintenance teams into service requirements no more guesswork. Culture change from reactive to pro-active. Multi-level service priority definition mapped to issue types Clear performance targets for various states of service delivery workflow Custom exception notifications and escalations by building, tenant or day Detailed workflow states (arrival, completion, etc.) on all communications so teams have a clear understanding of requirements Rich interactive dashboards with configurable data and timeline views Experienced configuration guidance and best practice recommendations Tenant satisfaction rating overlay Broker s report for tenant meetings Real Client Results enabled a Building Engines client to fully execute on their commitment to data-driven service. Through OPM, the client now has the ability to enforce, deliver, and prove the level of service they promise tenants. They also gained the ability to efficiently monitor ongoing performance and manage by exception in real time. Ask to learn more! (866) Without any staffing increases, our client was able to achieve, and demonstrate, a 73% improvement in documented service delivery! Section 2 Building Engines (866) BuildingEngines

6 OPERATIONS PERFORMANCE MANAGEMENT (OPM) Best Practices for a Tenant Service Delivery Program Workflow processes and states are clearly defined e.g. New, Open, Arrived, In-progress, On-hold, Completed, Closed, etc. Critical Key Performance Indicators (KPI s) are established. Service request issue types have standardized terminology and lexicons. Service request issue types are assigned priority levels. Priority levels have established target benchmarks for performance based on workflow states. Billable labor rates, associated markups and taxes are associated with each service type. Adjustments and exceptions for different building types, locations, leases and/or tenants are documented. Service request assignment rules are clearly defined for both internal personnel and external service providers. All service request priority levels have established target benchmarks for performance based on workflow states. Current performance metrics are reviewed to understand performance improvement opportunities. Process and system in place to generate analytics surrounding KPIs and ongoing performance against targets. Escalation notifications and re-assignment rules are configured properly in the designated operations system. All personnel (internal and external) are properly informed of expectations and trained on processes and systems. Exceptions/escalations are managed in the moment by senior management. Performance-based remediation and reward process established. Score Card: Count your checks. Less than 9 means you may lack visibility into your service program. Request a conversation to learn more about utilizing OPM to document and assure service delivery. (866) Section 3 Building Engines (866)

7 Building Engines (866) CLIENT STORY Monitoring Tenant Service With Data A building engines client, one of the nation s leading owners and managers of healthcare real estate is passionately committed to customer service as exemplified by their company standard of delivering value to tenants and investors. However, the client s team wanted to do more than just say they delivered great service, they wanted real data to prove service excellence to their owners and investors, tenants and prospective tenants. They wanted the ability to manage all aspects of their service delivery in real time. This is the story of how Building Engines worked with a client to document and prove a commitment to service excellence. Case Study Market: Commercial Real Estate Role: Owner, Manager, Broker Purpose: Share a Customer Story BuildingEngines

8 The Challenge Case Study The Client engaged with Building Engines in 2010 to automate their operational processes with an initial focus on tenant service request delivery. The process included standardizing workflow and nomenclature across their 21 million square feet portfolio, as well as extending the process out to new mobile devices carried by the property management and maintenance teams. While the initial deployment created immediate benefits and visibility, The client s senior executives, led by their Executive Vice President of Property Management and Leasing, wanted to improve the centralized management and measurement of service delivery by connecting the process and system to their existing service delivery standards. This would allow them to fully understand property performance relative to those standards and clearly answer these questions (among many others) Are we hitting our service delivery targets? How do our people know how to prioritize tasks and what to do first each day? Who are our peak performers and where do we need some remediation? Which tenants are being underserviced or overserviced? Which buildings are performing better than others? And Why? The client regularly emphasized the goals expressed in the axiom you can t manage what you can t measure. Additionally, the client s leasing department wanted real data that would be helpful in meetings with prospective tenants and tenants up for renewal to demonstrate the client s historic service excellence, as well as validate their ability to meet the unique service requirements of any tenant. The implications and value of this in today s economy are significant, where the battle for tenant retention and maintaining strong net operating income is often won through outstanding service delivery. Today s sophisticated tenants are asking management teams to provide quantifiable and demonstrable proof of all building claims, including service. Institutional owners and investors are demanding operational performance data and quantifiable evidence of management s ability to deliver on the investment goals for an asset. 2 Building Engines (866) BuildingEngines

9 The Solution: Case Study The focus of the Building Engines initiative was to help clients derive deep and meaningful insight into performance through actionable intelligence; to provide clients with the ability to set targets and benchmarks throughout the system that they could measure performance against internally, as well as against other like-clients and properties. These objectives, which aligned with client s needs, presented Building Engines with an exciting opportunity to extend the work they started to a client that was ready to deploy. The Building Engines Product and Customer Services Team met with the client s senior management in late Q4 of 2011 to clearly define their objectives and map out an implementation and deployment plan. The new system capabilities incorporate a management principal utilized in many other industries called Operations Performance Management (OPM). The key principles of OPM are that all business units need to be aligned to achieve goals and that software used to complete operational tasks should aggregate the raw data of daily use and present it back to users as actionable information through key performance indicator (KPI) dashboards and alerts. Additionally, OPM requires that results reflect performance against targets and benchmarks that are embedded in the processes and the system. Guided by OPM principles, the client and Building Engines partnered in following a standard Building Engines Seven-Step Implementation Process: Step 1: Establish KPIs Key performance indicators are the required service levels, which can vary based on a priority level, a specific tenant, property or day of the week. Building Engines worked with the client to gain input from property management, leasing and engineering, industry standards and existing contracts to answer the question What should our key performance indicators be for managing service delivery? Step 2: Review Process to Support KPIs The Building Engines Customer Operations Team reviewed the client s existing process to identify gaps and process improvement opportunities. 3 Step 3: Process Improvement Recommendations Areas of immediate process improvement included: Addition of a new state of arrival to be able to track and measure physical arrival times distinct from resolution times. Creation of service priority levels connected to work order request issue types Setup of multi-level escalation notifications based on service priority levels Step 4: Establish Current Performance We turned on the system (with accompanying training and practice sessions) and the client immediately began collecting data to establish their current performance levels. Step 5: Data Review Analysis Within one week, the client & Building Engines were able to review the real performance data and identify gaps where documented performance did not match desired service levels. Step 6: Improvement to Meet Targets The client took specific actions within their process to remedy the areas where targets were not met. Within another two weeks, and a few minor adjustments, they saw Priority One arrival times met and exceeded without fail. Step 7: Ongoing Operations The system will monitor all activities and provide real-time alerts when service level thresholds are violated, allowing managers to turn their attention to other day-to-day issues. In addition, the client regularly reviews interactive dashboards and shares reports with management teams and the leasing department to demonstrate performance improvement results. Building Engines (866) BuildingEngines

10 Results Case Study The impact has been nothing short of dramatic. While the client came into the project confident that they were delivering quality service, they found that their service delivery, documentation and process were vulnerable if called into question during meetings with senior management. With the program in place, the client now has a process to enforce, deliver, and prove that they are providing the level of service that they were promising. They also gained a set of tools to efficiently monitor that performance ongoing, through managing by exception. Without any staffing increases, the client was able to achieve, and demonstrate, a 73% improvement in documented service * delivery! Property Teams Maintenance personnel now know immediately which service requests they should prioritize and the target response and completion times for each Personnel can now manage daily activities by exception based on automated escalation Rich discovery dashboards allow for root cause analysis and action Senior Management This was accomplished by enabling staff through the Program to have in the moment visibility into service targets and the required actions so that there was complete understanding of what to prioritize in order to uphold their standards and service delivery commitments. These new capabilities are now available to the following client constituencies: * results based on initial pilot test locations Has clear visibility into performance and ability to define and manage standards in all properties. Can clearly and proactively identify peak performers and areas in need of improvement Are able to detail real time performance metrics to owners and investors Can direct personnel toward other high value activities as program automation requires little oversight once configured. Leasing Has quantifiable data to illustrate service delivery and performance to prospective tenants and tenants up for renewal. 4 Building Engines (866) BuildingEngines

11 What s Next? Case Study Building Engines is delivering additional insight to the client through the OPM program by layering in a service quality rating from their tenants. A proprietary formula will factor the service quality responses with the delivery metrics to provide a true overall service delivery rating. Management will have complete, real-time visibility into service delivery performance with data they have never had before. Is a Fit For You & Your Organization? That depends on your service performance goals and whether real time visibility and operational data are important to your organization and bottom line. Ask yourself and your team a few key questions: Do we have a clear understanding of what our service delivery targets are or should be? How do we really know if the service we delivered to our tenants last week met our (and their) expectations? How would we know if we missed a key deadline? What real-time visibility do we have into our service delivery performance across our portfolio? What real and current data could we provide to a prospective tenant that demonstrates our commitment to service excellence? To discuss the implications of how you answer these questions, please contact us today to schedule an introductory conversation. Phone: (866) opm@buildingengines.com Chat: BuildingEngines

12 Building Engines Success Kit About Building Engines Building Engines is a web-based and mobile system providing owners and managers of all property types with a comprehensive solution for improving operations and workflow management. The Building Engines Solution consists of over a dozen integrated modules for everyday tasks including work order management, preventive maintenance, visitor access control, insurance compliance monitoring, incident tracking, inspections, document management, and more. Real Estate owners and managers employ Building Engines to capture, communicate, assign and report every aspect of property performance and the tenant experience through the regular collection of data from daily tasks, collaborative systems, and enhanced reporting and analytics that track execution against customized goals. Building Engines simplifies complexities by improving visibility, information extraction, and communications- helping customers realize noticeable improvements in tenant experience, as well as higher operating efficiencies. Request a Conversation Today! (866) opm@buildingengines.com BuildingEngines BOMA-OPM-0612