KPIs define the metrics and the way in which we manage the supplier partner's performance against agreed contracts and SLAs, at a site or cluster level. KPI results will typically be aggregated to a country / regional / global account level as required to meet CBRE and client reporting requirements, using the reporting formats and to the frequencies agreed upon with the client.
A good performance indicator is part of the ‘SMART’ Goal KPI tool and should be:
- Specific – it should be clear what is being measured
- Measurable – it should be measurable against set standards
- Achievable – target a realistic / achievable goal
- Relevant – it should offer insight into overall safety performance
- Timely – KPIs should follow a set timeframe
KPIs can help ascertain the current financial position within the contract. KPIs summarise the comparison of figures against the budgeted values and also industry benchmarks that are published from the result of comparison reports.
KPI's can also be used more broadly as part of a bench-marking exercise to assess the performance of a supplier partner relative to another and to assess others within the industry and the performance of the industry as a whole.
The CBRE project team should work closely with the supplier partner to establish and define the specific account / site KPIs against measurable, consistent and appropriate leading and lagging indicator metrics, in order for the supplier partner to produce and maintain an effective KPI scorecard. KPIs may be unique to the account / site and specific CBRE / client requirements.
The supplier partner is required to perform the following:
- Track and consistently report KPI metrics to the agreed calculation methodology and to the agreed frequencies
- Explain key outcomes from the data and propose appropriate remediation actions - should performance fail to meet the agreed targets
- To remediate issues through robust action plans and strive to continuously improve performance to meet and exceed KPI targets
- To escalate material KPI performance issues outside of standard reporting frequencies as required and as deemed necessary
KPIs shall be periodically reviewed to ensure that the indicators provide the necessary and appropriate metrics to effectively and objectively manage, report and validate the supplier partner's performance consistently. Account teams shall ensure that supplier partner KPI reporting is reviewed, accurate, validated and where applicable - appropriate remedial actions are escalated, agreed upon, progressed and closed out.
1. KPI Purpose
2. Responsibility of Management team
3. Responsibility Of The Supplier partner
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It is important to take the time to create KPI’s which:
Several KPIs have been developed which should form the basis of the monthly performance and operations review conducted between the service provider’s managers and CBRE site facility managers. These KPIs define the performance measurement metrics of the services to be delivered and managed by them. The KPIs shall monitor and record their performance against the SLAs.
Please refer to the template below for relevant KPI metrics that should be applied to the contract on site.
4. Conclusion
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It is important that KPIs are identified in tender documentation and that regular provision of the information required to assess them is a requirement of the contract. This may require the provision of sub-contractor information where performance on specific packages is to be monitored.
KPIs may be of particular importance where the contract stipulates that the supplier partner will be rewarded or liable for service credits based on their performance relative to certain indicators.
5. Useful Links
Reflect the performance requirements of the contract
Have consistent objectives and measurable outcomes
Can be used to measure the efficiency of the supplier partner
Electrical
Key Performance Indicators
Contracting
6. Footnote
It should be noted that in some cases the client may contribute to the types and quantity of KPI's to be used on an account. Where this occurs it is important that the client the KPI's are achievable and measurable. The global lead should be involved in this instance to vet the content to ensure that it aligns with CBRE values and the service providers operating standards.