Tapping the power of benchmarking in FM and construction

Citation

(2000), "Tapping the power of benchmarking in FM and construction", Facilities, Vol. 18 No. 1/2. https://doi.org/10.1108/f.2000.06918aab.037

Tapping the power of benchmarking in FM and construction

Keywords Benchmarking, Facilities management, Construction

New Business Round Table guide

Higher quality, improved productivity and increased shareholder value are among the benefits that a properly structured benchmarking exercise offers, as the pioneers of benchmarking in construction and facilities management have shown.

These are the findings of a new best practice guide, Thinking about Benchmarking for FM and Construction, from the Business Round Table. Until recently, most companies in these industries had been insulated from globalisation and international competition. Other features of FM and construction include varying productivity, patchy project management and a fragile skills base. Although a number of business process techniques have been used to overcome the problems and improve performance, benchmarking remains surprisingly under-used by the industries.

The guide identifies eight steps to successful FM and construction benchmarking, with well defined milestones for continuous improvement and business efficiency gains. The first steps are securing commitment, determining the critical success factors and setting up a benchmarking management system. The next steps take prospective benchmarkers through the process of selecting partners, collecting/analysing data and setting targets. Implementation is considered crucial - too many benchmarking projects are started with enthusiasm but end without any real benefits. The final step is monitoring results and getting feedback.

The potential of benchmarking is enormous. As Chris Powell, group quality manager, the Miller Group remarks: "A wider culture of benchmarking would be of significant benefit to the construction industry". Miller, which has undertaken both internal and external benchmarking, is highly satisfied with the outcome.

Well-conducted benchmarking, with measures to ensure confidentiality, allows the participants to see exactly how they stack up against other companies in the same or similar industries. In one case, unauthorised absence rates on a plant construction project were significantly higher in the UK than on an almost identical project in the USA. In another international example, HVAC costs, measured in ECU per square metre, were 433 in an English project, 205 in a comparable Danish project and 155 in Spain. And in a domestic benchmarking exercise, seven UK organisations which measured their front-end planning processes against a model of best practice discovered how their performances and processes varied.

Business decisions made on the basis of hard facts such as these are able to get to the root of the problems.

Benchmarking needs to be done with partners tackling similar issues but not necessarily in the same industry. BAA, for example, has benchmarked against Wembley Stadium and Ascot racecourse, which have similar businesses of handling large numbers of people in a confined space. The prizes are not limited to large companies - medium-sized and even small companies can benefit.

Thinking about Benchmarking for FM and Construction concentrates on practical "how to" advice, backed by research and case studies. "Benchmarking is a powerful tool for improving competitiveness", says Christopher Groome, director of the Business Round Table. "Construction and FM needn't miss out on the opportunities if they follow the advice in this guide."

For further information please contact Beryl Garcka, The Business Round Table Ltd, 18 Devonshire Street, London W1N 1FS. Tel: +44 (0)171 636 6951; Fax: +44 (0)171 636 6952; E-mail: brt-garcka@dial.pipex.com; Web site: http://www.Business-Round-Table.co.uk/brt.win