6 tips to secure a successful contract transition in Facility Management outsourcing

Whether or not you will succeed with your contract transition in Facility Management outsourcing, largely depends on a well-planned and executed transition process. Here’s how to make it successful.

Transition can be regarded as the foundation of an outsourcing relationship. A new outsourcing relationship can suffer extensively if the contract transition i.e. causes delays, downtimes or hurts service quality. On the other hand, a great transition management process can secure an even greater start to a new collaboration.

Even though the service provider and the client interests are aligned when the contract is signed, the relationship can start to show cracks as the transition begins. There are especially three areas where client and vendor interests can drift apart:

Cost. The client has “booked” the savings of the transaction, and so attitudes toward the service provider may shift if the transition milestones slip and financial objectives aren’t fully achieved.

Change. From the moment a contract is signed, the client’s business is evolving, while the service provider is trying to stabilize operations and meet performance and cost targets. The service provider may find it difficult to accommodate continual change while stabilizing the environment.

Stabilization. The client is looking for results and the adoption of new technologies and innovations. Yet the service provider must first stabilize services

6 key factors in transition excellence.

To avoid the breakdown of a customer and vendor relationship a thought-through plan that includes key factors driving transition excellence should be put in place.

Our research has identified the 6 key factors in transition excellence:

  1. The supplier needs to deliver a structured transition process and use proven change management and project management methodologies.
  2. The transition process needs to be led by a dedicated team of qualified and experienced transition managers, set up in alignment with the customer’s organisational structure to appropriately connect with the stakeholders of the project.
  3. Project planning needs to be based on detailed scoping and stakeholder analysis, so that the full complexity of the change and related risks are understood.
  4. The scoping and stakeholder analysis should be used to inform targeted change management and communications to reach all stakeholder groups with the right messages.
  5. Care needs to be taken to ensure governance and reporting structures provide transparency.
  6. High-quality induction and training are needed to motivate and retain staff, and ensure their competencies match the customer requirements.