April 2017 |
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How an Inefficient Work Order Management Process Hurts Tenants, Operators, and Owners – and What to Do About It (Part I) |
Alex Ortiz, Account Executive McKinstry |
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Summary:
Property managers and owners of large buildings can’t predict the
future, but they can control how they manage work orders when customers
request service. When this process breaks down, the tenants, property
managers, operators, and owners all pay a costly price. Here’s what to
do about it.
On a recent flight back home to Seattle, I
met an ecologist working on her master’s. Her specialty is on the
impact of sea levels on salt marshes in New England, and after
listening to her for five minutes, it was clear to me that she is very
passionate about her work.
When she asked me what I do, I explained
that I sell a work order management solution for property managers of
large commercial office buildings, but it could just as well be used by
a hospital, research laboratory, university, school district, or any
other property type. Work order management solutions help the people
who manage and operate facilities to quickly respond to and fix the
day-to-day operational issues that inevitably come up as people carry
out their work. Human affairs lead to a need for janitors, plumbers,
carpenters, locksmiths, electricians, day porters, engineers, IT staff,
and others. In her case, as a graduate student at a university, it
could be that her library is too cold, there’s a major spill to clean
up in a lab, or a chair in the student union needs replacement.
To make what I do even more relevant, I
asked her what her favorite building on her campus is. She replied, “I
spend a lot of time in our biology building – but it gets so hot in
there sometimes, and it takes so long for them to fix it, that I don’t
even bother putting in a service ticket anymore. Some days, I just give
up and leave.”
What a tragedy, I thought: this student
pays the university to provide her with a learning environment and
physical infrastructure for research, and that environment is failing
her.
A Building’s Purpose
The purpose of a building is to enable
people to carry out their work. Libraries are for learning, labs are
for research, residences are for living, and offices are for business.
Any time a building’s operation interferes with people’s ability to
work, the building fails in its core responsibility.
Sometimes these failures are unavoidable,
like record-breaking bad weather causing a rare rooftop leak that could
not have been predicted during capital planning.
At other times, these failures are
unforeseeable but entirely avoidable. Think of a flight delay due to
mechanical failure caused by human oversight or improper preventative
maintenance on the plane. In the airline industry, this is relatively
rare, and for good reason: mechanical delays are really bad for
business, so airlines invest in and implement robust service procedures
and carry them out consistently to prevent mechanical failures as much
as possible.
In the building industry, rarely is
mechanical failure catastrophic, so while there is a general incentive
to deliver excellent service to customers and keep tenants happy,
stories like the ecologist’s are unfortunately common. But make no
mistake: any time a building fails in any mechanical, operational, or
procedural way, the people who work in that building lose time, money,
satisfaction, or all three.
When these failures are not quickly
addressed, they become disruptive and lead to considerable downstream
costs. Tenants, operators, managers, and owners all suffer: reduced
workplace productivity for tenant employees, burnout for operators from
their heroic efforts to keep the building running at all costs, dips in
lease renewal rates for the property managers, and decreased building
profitability for real estate companies and owners.
Consequences – Negative and Positive – of Great Work Order Management
Think about the phrase, "work orders." A
work order is literally an order to do work. When the work is performed
well, quickly and consistently, tenants are happy because they feel
taken care of. They stay in the building longer, work more
productively, sign on to renew leases and generate more operating
income for owners. They're satisfied. Property managers and operators
who do this better than their peers know this all comes down to
something simple: do what you say you’re going to do when you say
you’re going to do it, and be able to quantify for your tenants and building owners the value of your performance.
One of my colleagues recently told me a
story about a customer of ours. One of their biggest tenants, an
employer leasing three floors in an office tower in Washington, wanted
to renegotiate its
lease. In the negotiation, the tenant blamed the property manager of
being unresponsive during the previous year. The tenant was so
dissatisfied that it demanded to pay less in rent—if they even renewed.
When my colleague ran a report on the specific tenant's service request
history, he found that the property manager's average response time was
10 minutes or less, and the average resolution time was under an hour.
[an error occurred while processing this directive]What
happened next was a marvel. The property manager showed this data to
the tenant, and together they separated perception from reality. They
then negotiated a deal that was better for the building owner. The
tenant renewed and continues to be satisfied with the property. The best
part of it all? Everyone won that day: the tenant, who remained at a
responsive property. The property manager, who received higher client
satisfaction scores. The operators, who now have proof of delivering
excellent service. And the owner, who's now generating even more
profit.
What helped this happen? Excellent service
procedures, an efficient work order process, and consistent data
capture. While the property manager couldn’t predict the future, what
was in their control was how quickly they responded to service
requests, how soon their vendors and maintenance staff resolved
problems, and how quickly tenants were able to continue their work in
the office environment they paid for. Whether you run a hospital with
patients to care for, a school district with bright young minds to
educate, or a university brimming with future world-class ecologists,
you owe it to your customers to deliver a similarly great experience.
Up Next
In Part II, we’ll discuss two things:
common failure points in the lifecycle of a work order, the impact
those failure points have on customers, and what property managers and
building operators can do to prevent these from happening. You’ll learn how to deliver a
better, more profitable experience for everyone involved.
About the Author
Alex Ortiz
is an Account Executive at McKinstry. He sells the work order
management solution InfoCentre, which combines a CMMS with a 24x7x365
call center that supports the entire lifecycle of your work orders.
Building operators and property managers can then focus on what they do
best: take care of their customers. For information about InfoCentre,
contact us here.
About McKinstry: Established in 1960,
McKinstry is a full-service design, build, operate and maintain (DBOM)
firm with over 1,800 employees and approximately $500 million in annual
revenue. McKinstry’s professional staff and trades people deliver
consulting, construction, energy, and facility services. As an early
adopter of the DBOM process, the company advocates collaborative and
sustainable solutions that are designed to ensure occupant comfort,
improve systems efficiency, reduce facility operational costs, and
ultimately optimize client profitability for the life of their
building. For information about McKinstry’s full range of services,
contact us here.
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