In this article, we will discuss the importance of benchmarking through comparison and innovation.
Rank Xerox, a pioneer in the field of benchmarking, defined the concept as “the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders.
Similar to the Facilities Management perspective, organizational efficiency and performance improvement are significant characteristics of facilities management. These characteristics must be well measured and achieved to lead to a High Performing Facility. As a result, there has been growing pressure to build high-performance buildings and systems that can track energy consumption, cost and usage to create more efficient facilities.
The keyword here is “measurement”. So now how do you measure – and the best way is by comparing with a benchmark. Benchmarking helps a facility attain high-level data comparisons of performance, opportunities, gaps and implementation of the inferences successfully. Robust DATA Assimilation and Cross Data Verification is the tool to achieve this characteristic.
What are the significant drivers for benchmarking an efficient Facilities Management provision?
Bench Marking Strategy starts with an efficient evaluation of KPIs, with the help of which FM management consultants compare the performance of facilities within the best-performing asset classes within similar use. Evaluation of these KPIs will yield maximum results when a critical business environment is identified by benchmarking the internal data against the qualitative or quantitative variables of the external companies in the key performance areas.
In the 1st edition of “The strategic role of facilities management in business performance”, the RICS guidance note separates the facilities management cycle into five areas: strategy; sourcing; operational; review; and continuous development and change management.
Benchmark metrics are essential in any area of the cycle.
The advantages of effective benchmarking using appropriate metrics can be many folds – some of the significant benefits would be:
- Best Practice
- Performance Certifications
- Value Addition
- Business case for change
- Cost Modelling and Justifications
- O&M support
- CAFM Integration
- FM Education
Benchmarking in facilities management can be done in several ways, including:
- Internal benchmarking: This involves comparing the performance of different facilities within the same organization to identify best practices and areas for improvement.
- Competitive benchmarking: This involves comparing an organization’s facilities management practices to those of its competitors to identify areas where the organization can improve its competitiveness.
- Functional benchmarking: This involves comparing an organization’s facilities management practices to those of other organizations in similar industries or with similar functions to identify best practices and areas for improvement.
- Industry benchmarking: This involves comparing an organization’s facilities management practices to industry standards or best practices to identify areas where the organization can improve its performance.
Benchmarking in facilities management can help organizations to:
- Identify areas where they can improve their facilities management practices and set realistic goals for improvement.
- Improve their competitiveness by adopting best practices from other organizations.
- Identify opportunities to reduce costs and improve efficiency in facilities management.
- Improve customer satisfaction by providing better facilities and services.
Overall, benchmarking in facilities management is an essential tool that can help organizations to improve their facilities management practices and achieve their goals continuously.