As the name suggests, providing facility to the management is all about improving the performance of a business. Facility management provides the fundamentals for any organisation which connects the various aspects to operate as a single entity. From providing the necessary infrastructure to communications to Project Management, several inevitable elements are taken care of with the help of Facility Management.
Typical performance of Facility Management includes
- Projects Management
- Operation & Maintenance
- Human Resource
- Property Management
KPI and Facilities Management are two inseparable entities of an organization. KPI’s indicate Facility Managers about the overall performance of the company not in terms of units but through Utilization. KPI’s can diagnose and pinpoint areas which are performing well or those which needs improvement. Based on the insights, FM Managers can create solutions from reducing costs to increasing manpower to enhancing communications and upgrading technologies, thereby steering the company in the right direction for maximum benefits.
Example of a Key Performance Indicator
KPI’s differ from business to business. A Freight forwarding company may have a KPI when it reaches 100 shipments in a day. An online digital store may have set their KPI for 1000 downloads in an hour. Based on the conditions set, the company may take initiates to improvise or upgrade the business for overall end-user satisfaction.
Types of Key Performance Indicators
There are several thousands of Key Performance Indicators ranging from Finance to People to Technology. For example, Customer Acquisition Cost is one famous KPI that calculates the cost involved in acquiring a new customer. Based on the data, the company can decide whether to continue or improvise the existing strategy and campaigns run to earn new customers.
A few popular KPI’s include
- Sales KPI
- Marketing KPI
- Customer Insights
- Product & Engineering
- People KPI
- Finance and Business
KPI’s can be department or function-wide or may be even brought down to an individual level. Sales target KPI’s or Performance KPI’s can be set for individual employees to evaluate and increase the performance of sales figures in an organisation.
Each company is unique in operation and existence. KPI’s are no different. KPI’s mostly depend on a company’s business model and its existence. For example, A simple customer retention KPI can work completely different for a wholesaler and a retailer. The retailer may have a huge customer base and makes more sense for a KPI to play its role.
Why KPI’s are important
Each team or department has an objective to achieve during the project life cycle. KPI’s helps the organization to identify the errors as well as the opportunities that can steer the program towards maximizing efficiency and success. KPI's help make important decisions in the company through their transparent performance reports. KPI's indicate performance at all levels and top management are kept informed about the actual condition of the business process.
How to Implement KPI’s in your business
Analyse as many KPI examples as possible. As said before, KPI’s differ from business to business. Know your business process and identify areas or departments which need assistance. Set specific KPI’s for the entire business or for the individuals and closely monitor the metrics. Based on the data, initiate new methods or revise existing workflow. KPI and Facilities Management should go well hand in hand in creating betterment for the company.