QSI Facilities Blog

More than a new name

Posted by Joe Kirmser, CEO on June 07 , 2016
QSI_Blog_Image_1.jpgQuality Solutions has a new name: QSI Facilities. Why the change? The easy answer is that clients and employees have been using the QSI moniker for years.
This change marks the next step in our evolution as an innovator in facilities maintenance and construction services.

QSI had firmly established itself as an industry leader by 2013. With the industry’s highest Net Promoter Score (a measure of satisfaction) among both customers and subcontractors, I faced a daunting challenge. How do you go from great to, well, even greater? Answer: We must change the way our customers and the industry as a whole measure and realize maximum value.

Over the past three years, we have focused on improving internal processes and technology systems, and we have embedded Six Sigma principles to create a high-performance, data-driven culture. This gave us the foundation we needed to tackle the toughest challenges facing the facilities industry today.

Understanding Industry Challenges: Late last year we set out to better understand the unmet needs and business challenges that our clients and field service partners face daily. Here is a brief summary of our findings:

  • Facilities management executives are under pressure to reduce budgets and control costs, but they lack effective means for representing and quantifying “what a good value looks like” to their internal stakeholders.
  •  As sourcing departments look to influence spend under management, there is an increase in proposals that appear to offer cost savings, like low hourly rates or upfront “savings”. But, as seasoned facilities execs know, these proposals often result in delivery and quality problems that ultimately inflate operating costs.
  •  The small businesses that provide plumbing, electrical, HVAC, carpentry and handyman services to our industry face shortages in the labor market for skilled technicians–just as many journeyman technicians are nearing retirement age. This, combined with highly fluctuating and seasonal demand, represents a significant supply-side risk to our industry.

A $12B Problem: All of these challenges have contributed to a problem that experts in outsourced services sourcing call Value Leakage. That is the difference between what is promised at the procurement stage and what is actually delivered over the course of facility services engagements. According to the International Association of Outsourcing Professionals, upwards of 20 percent of budgeted spend on outsourced facilities services is sacrificed to Value Leakage. That’s a loss of more than $12 billion annually!


Helping Clients Take Control
The problem of Value Leakage afflicts facilities departments across all industry sectors, and overcoming it will require cross-sector collaboration. QSI Facilities has developed a four-pronged approach to help clients take control of facilities management outcomes and costs:

  1. Establish Industry Standards: We work with clients to establish common industry standards and best practices for field service performance and cost control. We help quantify what great looks like.
  2. Employ Performance Analytics: We apply industry standards along with client-specific KPIs to measure, monitor, manage, report and improve field performance.
  3. Optimize Field Processes: We help our field service partners optimize their processes to achieve industry standards and KPIs, and we reward partners who meet and exceed goals with growth opportunities.
  4. Develop Hiring and Training Tools: We’re creating tools and programs to help our field service partners overcome shortages in the labor market for skilled technicians.

To support these efforts, QSI has established The Facilities Institute, our center of excellence for clients, project teams and field service partners. Initially, the Institute will publish interviews with industry experts and articles on best practices, which can be found in the Resources section of our website. In the fall, the Facilities Institute will become an online community of practice where clients, account teams and field service partners will collaborate and exchange ideas on performance improvement and cost control.

I hope you will take some time to browse our new site, and be sure to watch our video on the home page, which brings all of these ideas together!

Joe Kirmser, CEO
QSI Facilities