Performance Measurement

Topics: Facility management, Management, Strategic management Pages: 19 (6223 words) Published: March 31, 2013
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Performance measurement in facilities management: driving innovation? Michael Pitt and Matthew Tucker
School of the Built Environment, Liverpool John Moores University, Liverpool, UK Abstract
Purpose – This paper aims to examine the state of knowledge of performance measurement in facilities management, in particular regarding the concepts underlying benchmarking in relation to its ability to drive innovation in the industry. Design/methodology/approach – An evaluation of the key issues surrounding performance measurement and the effective application of benchmarking systems are examined, exploring the possibility of applying a benchmarking technique to measure facilities performance. Findings – The paper suggests that a fully developed performance measurement solution via effective benchmarking can deliver as a business tool in facilities management (FM), whilst acting as a driver in the innovation process. Practical implications – With the nature of performance measurement having changed over the past few decades, the paper acts as a catalyst to how performance measurement systems and techniques operate within FM and stimulate innovation. Originality/value – By adopting the notion of innovation to performance measurement, the paper highlights new areas of thought to facilities management and how performance measurement is strategically applied to the industry. Keywords Performance measures, Benchmarking, Facilities, Innovation Paper type Research paper

Performance measurement in FM 241
Received October 2005 Revised August 2007 Accepted May 2008

Introduction Performance measurement is an area to which companies have paid much attention recently. Performance is regarded as a major competitive issue (Tranfield and Akhaghi, 1995). In facilities management (FM), there is a wide range of choices in measuring FM performance, reflecting the varied nature of the field. The focus on FM skills and techniques should be in the areas that contribute to the overall management of a business, financial and personal criteria (Barrett, 1992). This paper aims to review the state of knowledge of performance measurement in FM and seeks to explore how measuring service performance is linked to innovation processes within the organisation. Benchmarking is a key performance measurement tool that allows organisations to achieve added value and “superior performance” (Camp, 1989). The discussion focuses on the proposition of adopting benchmarking techniques in measuring facilities performance, driving a framework of an FM performance measurement solution. It is important to stress however that by researching such an approach, with the emphasis on benchmarking, it does not contend that benchmarking should be the only performance instrument implemented to organisational performance measurement

Property Management Vol. 26 No. 4, 2008 pp. 241-254 q Emerald Group Publishing Limited 0263-7472 DOI 10.1108/02637470810894885

PM 26,4

systems. It merely identifies the importance of benchmarking as a stimulant to achieving innovation in performance measurement. Facilities management overview FM is a relatively new discipline. It has developed since around 1978 where the Herman Miller Corporation, the worlds leading furniture manufacturer, staged a conference on “Facilities Impact on Productivity”. This might be seen as the beginning of FM. FM as a discipline emerged out of practice, just as the great established professions. It emerged with the integration of three main strands of activity: property management, property operations and maintenance and office administration (Kincaid, 1994). More significantly it established a focus on the management and delivery of the business “outputs” of both of these entities; namely the productive use of building assets as workplaces (Varcoe, 2000). The International Facility Management Association...
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