Balanced Scorecard Facilities Management
KPMG International Shared Services and Outsourcing Advisory
Using a balanced scorecard to help measure facilities management performance by Steve Silen, Director, KPMG Advisory Services
For nearly 20 years, leading organizations have been using balanced scorecards to strategically measure the financial and non-financial performance of different operational functions within their firms. More recently, they have begun leveraging them to measure the performance of their third-party service providers. In the facilities management (FM) function, use of a balanced scorecard enables companies to evaluate the performance of their external providers against multiple criteria (see Figure 1), help set alignment and focus, identify improvement opportunities, enhance performance reporting, and conduct constructive discussions with their FM providers.
Sample balanced scorecard (1 – best, 5 – worst) Evaluation Criteria Cost Customer Satisfaction Service Delivery EHS Performance Compliance Innovation/Continuous Improvement Weight 35 20 20 10 10 5 100 Evaluation Comments Costs were slightly under budget Score based on customer satisfaction survey All SLA requirements were met There were a couple of safety incidents in the cafeteria No fines or violations No initiatives were implemented Weighted Score Score 2 2 1 4 3 5 2.25
In a sense, the balance scorecard process for FM service providers should be similar to the way in which individual performance is handled – expectations are set, measures to evaluate performance are established, performance is monitored and discussed throughout the year, corrective measures are implemented, and performance is formally documented.
“Just as organizations want their employees to achieve the highest level of performance, they should want the same from their FM service providers. ”
Although there is no set format for balanced scorecards, and they vary from company to company, Figure 1 demonstrates elements many organizations include in
Using a balanced scorecard to help measure facilities management performance by Steve Silen, Director, KPMG Advisory Services
For nearly 20 years, leading organizations have been using balanced scorecards to strategically measure the financial and non-financial performance of different operational functions within their firms. More recently, they have begun leveraging them to measure the performance of their third-party service providers. In the facilities management (FM) function, use of a balanced scorecard enables companies to evaluate the performance of their external providers against multiple criteria (see Figure 1), help set alignment and focus, identify improvement opportunities, enhance performance reporting, and conduct constructive discussions with their FM providers.
Sample balanced scorecard (1 – best, 5 – worst) Evaluation Criteria Cost Customer Satisfaction Service Delivery EHS Performance Compliance Innovation/Continuous Improvement Weight 35 20 20 10 10 5 100 Evaluation Comments Costs were slightly under budget Score based on customer satisfaction survey All SLA requirements were met There were a couple of safety incidents in the cafeteria No fines or violations No initiatives were implemented Weighted Score Score 2 2 1 4 3 5 2.25
In a sense, the balance scorecard process for FM service providers should be similar to the way in which individual performance is handled – expectations are set, measures to evaluate performance are established, performance is monitored and discussed throughout the year, corrective measures are implemented, and performance is formally documented.
“Just as organizations want their employees to achieve the highest level of performance, they should want the same from their FM service providers. ”
Although there is no set format for balanced scorecards, and they vary from company to company, Figure 1 demonstrates elements many organizations include in