8 Metrics You Should Be Using
To Rate Subcontractors
If you're like many National or Regional Facility Maintenance Providers, then you have built a large database of subcontractors that you utilize to serve your customers. Although you may have a good idea about who your most reliable and trustworthy subcontractors are, the reality is, you can only really know this about a handful. Without having a system in place to track their performance, you're really just guessing. Facilities Exchange tracks the following 8 key metrics automatically and calculates and displays a performance grade for all subcontractors. Even if you are not using Facilities Exchange, tracking these 8 metrics will put you in a much better position and provide a mechanism for not being blindsided by a loss of business.
- No Shows:
Track the number of No shows that a subcontractor commits. When a subcontractor doesn't show up for a job without notice, they are not concerned about your business. The location manager doesn't see the subcontractor as an external resource, when they don't show, you don't show and location manager is likely to report to corporate how unreliable you are. No Shows are deadly and need to be tracked.
Tracking recalls will help you find the subcontractors who are providing unreliable and poor quality solutions on the work you are assigning them. You may be able to send someone out to remedy the solution quickly, but that gets old fast and you'll quickly have a reputation for providing poor service.
- IVR Usage:
In the age where everyone has their own software, using IVR as a control mechanism is often not in your domain of control. Our analysis has shown that as much as 4 out of every 5 calls that require the use of IVR are coming from an external technology system belonging to the customer. If subcontractors don't use it, then you take the hit. As much as IVR has little to do with your ability to perform, trust has likely been something eroded out of existence by your competitors. Tracking Check-ins, Check-outs and Time On-Site will help you sure up your compliance and keep your record stellar with customers
- Time To Receive Paperwork:
Getting signed work-orders and invoices back from the field is often a requirement to move along the process to bill your clients and pay subcontractors. You could easily be having cash flow problems if paperwork doesn't make it back to your company in a timely manner. Track the number of days it takes subcontractors to meet paperwork requirements.
Reschedules are better than no-shows since they allow you time to deal with the issue before it becomes a No Show. When you have too many recalls the burden is on your staff to perform unnecessary work which slows down production and your response time with customers. Tracking reschedules will help you find unreliable subcontractors quickly and give you the confidence to route them out of your database.
- Customer Satisfaction:
Tracking customer satisfaction is probably one of the most important metrics, but is often overdone. Keep it simple! Asking 3-5-10 questions has limited effectiveness since it is hard to be sure that the questions are always being asked. More often than not, the person having to answer the questions is too busy to answer them and too busy to offer candid feedback. A simple "are you satisfied with our service today?" produces a result that can be quantified and calculated easily. At the end of the day, that's the one true important metric."are you satisfied with our service today?" YES or NO!. You can easily take a sample of your calls to perform deeper analysis with more questions and get to the systemic issues that are plaguing your organization with service issues.
- Completed On First Trip:
Multiple trips to fix a problem unless the work is expected to take multiple days is typically due to a lack of preparation or ineffective communication between your staff and the subcontractor. Regardless of the reason, the cost of the job is sure to go up, having to go twice or three times can quickly eat up profits since the customer is not liable for a lack of preparation. these expensive calls will pop put on reports as outliers and easily be subject to scrutiny.
- Profit Percentage
Some would argue this should be the first. And I wouldn't disagree with that. You have to look out for your bottom line and your customers cost of service. To survive in this increasingly commoditized market, you need to worry about profit more than any other metric. Make sure you are comparing vendors across the same discipline and across the same types of jobs to see how their average compares with industry averages and amongst all other vendors in your database. Facilities Exchange makes this effortless, but a simple data pull into Excel with pivot tables will quickly find the outliers. Poor profit puts a strain on every area of the business.
Implementing a system to track the following metrics will put you on a path to improve the performance of your organization and will return dividends quickly. Not doing it, is undoubtedly costing you time, money and aggravation. Although I have listed 8 above, you can certainly add more. I'd be happy to hear some suggestions on what your company is tracking on the performance of subcontractors.