New Year Resolution for 2014- My communique to my team

Dear Team

I wished my last mail to all of you this year be something positive and that which speaks about things not necessarily around Admin, Customers, Cost-Cutting etc. J

This week I want to talk about New Year Resolutions and here is what I have gathered to share with you all,

I remember reading that if we can create a little bit of something positive that brings us joy and success, then we create more of it – we can further learn to scale it and build on it. I believe in the power of this idea, and have used it as a guiding principle to reasonable success in my professional and personal life.

So let’s apply this and see what could be our New Year’s Resolution – one that won’t just die as a fad after initial few weeks and leave us feeling demoralized and depressed, but will:

·         Stay longer and may be very long

·         Usher happiness, positivity and more importantly fulfillment

·         Bring in growth (We all should grow and there is no serendipity in it! We should remember that we are capable, accountable and RESPONSIBLE for our growth)

·         Build confidence and self-esteem (Very important in our roles where every other user gets reminded of a doormat whenever we are done with serving them)

Think about what you’ve already created in your life today, but want more of. Let’s start with the below 4 key categories:

1.     Love and Kindness

Look around you. Are your relationships supportive, loving, gentle, kind? Do you have at least one friend and loved one who believes in you without reservation, who sees the future vision of you before it’s visible to all, and would do anything for you? Then you can build more relationships that will offer this type of unconditional support. Think about the glue that holds this mutually-loving and respectful relationship together. You are part of this glue; you’ve helped make it possible. Where can you apply that “glue” to form new bonds that will help you be more of what you wish to in the world, and help others do the same?

New Year’s Resolution: This year I will build at least one new relationship in my life that is mutually loving, caring, supportive and nourishing.

2.     Professional Success

I’ve seen first-hand in my own career that if you have built the skills and traits that serve your clients well, and bring great success and fulfillment to them, you can build more such skills. Examine what you offer in your work. What skills, talents and passions are you drawing on that generate great outcomes for your employer or for your own clients and customers? How can you leverage these skills to bring more success to those around you? What innovation or efficiency enhancer can you develop that will help others in a deeper way than you are today?

New Year’s Resolution: I will use my skills in a brand new way this year that will bring more success, growth and well-being to those around me, and thus, to me.

3.     A sense of meaning and purpose

Do you feel that you were meant for something bigger than what you are experiencing today? If you’ve ever felt that, I can you tell — you ARE meant for something bigger. I know because I have witnessed winners who had that feeling for years, and finally, it led them to a complete, successful reinvention. People who dream of doing something big, something important, making a difference, leaving a legacy, have the seed of greatness inside of them and are longing to do something about it. Make 2014 the year you do.

New Year’s Resolution – I will honor the longing I have to play bigger, to go for something important in my life that will bring a sense of meaning and purpose to my life. I will define concretely how I want to play bigger, and walk towards that in 2014.

4.     Belief in what’s possible for you

Some people like to create a theme for their new year – using one word to describe what they want more of. A theme is a great way to focus on something important, and to help bring it into being. Here is a list of some powerful themes or concepts you could choose from, or build your own:

Love
Forgiveness
Creativity
Courage
Openness
Mentorship
Wealth
Peace
Compassion
Tolerance
Prosperity

Choose a word or theme that represents what you want more of. Print it out, and post it on your computer, your desk, make it your mobile screen home page – wherever the reminder will have the most impact on you. Then, make a pact with yourself that you will act, perceive and think in ways that are in close alignment with this positive experience you want to bring forth.

New Year’s Resolution – I will honor my new theme for 2014. I will keep a keen focus on what I want to expand, and gratitude each time I see this theme expanding in my life.

* * * * *

What new kind of resolution can you make that will guarantee to bring you more joy, peace and fulfillment in 2014? Make that resolution today.

Being Open to Feedback in Customer Service

Dear Friends,

Here is my article (A collection of thoughts) on Being Open to Feedback in Customer Service, as shared with my Corporate Admin, Travel & Hospitality team. Please share your feedback

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Team,

Personally, I am a passionate believer in the value of interpersonal feedback. To become more effective and fulfilled at work, I think we need a keen understanding of the impact of our work on others and the extent to which they are achieving their goals. Direct feedback is the simplest and most efficient way for us to gather this information and learn from it.

The tricky thing about feedback is that instead of objectively focusing on just the service (product in some cases), it takes the flavor from the culture of the environment on which the conversation is set in. When we have a culture which encourages feedback, even those users who aren’t usually interested or skilled in giving the feedback also chip in. The contra is equally true.  

So as leaders, how do we build a feedback-rich culture? What does it take to cultivate an ongoing commitment to interpersonal feedback? Here are four essential elements:

1. Safety and Trust

To give and receive truly candid feedback, people must feel a sense of safety and trust. Neurologist and educator Judy Willis emphasizes the relationship between positive emotion and performance, and as leaders we need to foster it to ensure that our team members and colleagues learn from feedback. Note that this does not mean avoiding confrontation or offering only support and comfort. It does mean being highly attuned to people’s readiness for a challenge and their emotional state in a given interaction. We have numerous examples amongst our team when we have refused certain services to employees but at the same time have come out of the conversation as sustained Service Champions. Our cabs team, International Ticketing Team, Leadership Academy Resource booking team have time and again confronted users and still have been in the forefront of service. What does this mean to me? This means that it is not necessary to always be yielding. If the policy, situation demand that we can’t provide a service, it is just fine. We can deny the same to our users, but we should make it clear by being polite and assertive. Saying NO doesn’t mean we have to fight with our users. We can keep our cool and still show our point of view. In such cases, taking the feedback after denying the service becomes very delicate. It requires patience and little bit of practice, but I am sure we all can quickly master this and keep seeking feedback wherever we provide service.

To create a sense of Safety and Trust is a simple 3- step approach:

1.        Get to know each other. Make an effort to understand colleagues as individuals. This doesn’t require a great deal of time or deep, personal disclosures — just taking a moment to ask about someone’s weekend and occasionally sharing stories of your own. A casual off-line dialogue, a general question about the holiday, a check on kids etc. These queries help us connect on personal front with the users

2.        Talk about emotions. The ability to discuss emotions is a critical feature in any group that aspires to share effective feedback, not only because feelings are at the heart of most difficult feedback, but also because feedback inevitably generates difficult feelings. When we can talk about our embarrassment, disappointment, frustration, and even anger, the culture is sufficiently safe — and robust — to handle real feedback

3.        Make it OK to say no. A risk in feedback-rich cultures is that people feel obligated to say “Of course,” when asked, “Can I give you some feedback?” The freedom to postpone such conversations when we’re not ready to have them ensures that when they do take place all participants are willing parties.

2. Balance

We usually receive a stinker email when our service is not up to the mark. In other instances, when we don’t deliver as per user’s expectations there is sure going to be a slew of escalations. So much of criticism that we associate feedback to only faults and repair. But, that’s just half the story. The other half is truly meaningful positive feedback, which is all too often absent in some people. You can’t have one without the other, but so many obstacles prevent us from offering and accepting positive feedback. We worry it will sound insincere. We worry it is insincere. We worry it will make us look like soft bosses. We worry it will make us seem weak. And since we don’t do it very often, we’re not very good at it. We should endeavor to pat a back whenever there is a good delivery, so that we can give harsh feedback when needed too. Likewise, we should be ready to face negative feedback when we know that our users are giving us URJAs, Appreciation mails etc. A recent research at Ghent University in Belgium indicates that positive feedback promotes self-development. Further, as University of Washington psychologist John Gottman has noted in his study of long-term relationships, in the most successful ones the ratio of positive to negative interactions is 5:1 even in the midst of a conflict. Strong relationships depend on heartfelt positive feedback — so we need to practice.

To establish balance in the feedback we offer:

1.        Offer some positive feedback…and stop there. Too often we use positive feedback to cushion the blow before delivering criticism, but that practice inevitably degrades the value of our praise and renders it hollow

2.        Start small. We miss opportunities to provide positive feedback every day because we have this idea that only big wins merit discussion. When we see any behavior we want to encourage, we should acknowledge it and express some appreciation. So, no matter how big or small the good work is, we should make an effort to appreciate it

3.        Praise effort, not ability. Research suggests that praising persistent efforts, even in failed attempts, helps build resilience and determination, while praising talent and ability results in risk-aversion and heightened sensitivity to setbacks

3. Normalcy

Off-sites, team building activities and picnics can create space for people to be open to new ideas and experiment with new ways of communicating, but the next day everyone goes back to the real world, if there is no follow-up. Unless the element of feedback seeking and giving becomes a part of routine and normal, the same isn’t practiced vigorously. You have to integrate the behaviors you want into your team’s daily routines in order to normalize those behaviors within the organization’s culture. If feedback is something that happens only at unusual times (such as a performance review or when something’s gone wrong), it’ll never really be an organic part of the team’s culture. It has to show up in everyday life — on a walk down to the cafeteria, at the end of a meeting, over a cup of coffee.

To make feedback normal:

1.        Don’t wait for a special occasion. There is a famous quote that goes-“Don’t build a castle; just put up a thousand tents,” and that certainly applies to feedback too. Don’t turn it into a complex, cumbersome process; just take a few minutes (or even a moment) and make it happen

2.        Work in public. Certain conversations are best held one-on-one, but too often we treat all feedback as a potentially embarrassing or even shameful process to be conducted under cover of darkness. When sufficient safety and balance exist, even critical feedback can be provided in larger groups. This not only allows everyone present to learn from the issues under discussion but also allows people to see how to give and receive feedback more effectively

4. Personal Accountability

As leaders who want to promote a feedback-rich culture, we have to walk the talk every day. Research by Harvard Business School’s Lynn Paine and colleagues makes clear that employees are more sensitive than leaders to gaps between our proposed values and our practical ones. Our teams will take their cues from us as to what’s acceptable, and if we don’t take some risks in this area, they won’t either. Why should they? This doesn’t mean we’re going to get it right all the time. If we’re taking some meaningful risks, then of course we’ll make some mistakes. The key is to fail forward and view those mistakes as essential learning opportunities. Let those around us know that we’re trying to get better at giving and receiving feedback, too, and ask for their input on how we’re doing.

To walk the talk:

1.        Be transparent. Everyone around us – colleagues, superiors, direct reports – should know that improving at giving and receiving feedback is an ongoing goal of ours

2.        Ask. We can’t just sit back and wait for feedback to be offered, particularly when we’re in a leadership role. If we want feedback to take root in the culture, we need to explicitly ask for it

Let’s together seek feedback and work on it, so that we are constantly in line with our user requirements,

 

 

Financial Management for Facility Managers

For most Admin and Facility managers like yours truly, Financial Management is a dreaded exercise that is taken up annually when the Budgeting is around the corner. We struggle with Capex., benchmark with previous year or comparable sites, look at dubious forecast plans shared by the line and then come up with Opex budgets. This is followed by an exercise of convincing the CFO’s office and eventually we get done with it, hoping not to be bothered by it, for another year. What comes naturally for some seems a nightmare for us. However, some basic application of tools and techniques that the finance guys use are immensely helpful for us too in predicting the ROI (Return on Investment) and thus justifying our budgeting strategies. There is definitely more to financial planning than allocating the dough in our kitty to our unit’s needs
Assumptions:
I recall a very old fable which revolves around a saying which says that to ASSUME is to make an ASS of U and ME. But as with the case of most planning, financial planning too depends on the assumptions we make for our own function as well the assumptions that the organization is making keeping the FY ahead. The financial performance of any facility broadly defines how well the facility is performing as a financial asset. It is upto the site management to decide what should constitute a good performance as there no applicable thumb rules here. Primarily, it should sync with the facility function at large as well the financial assumptions and forecasts that the organization is making for itself. One should be very careful in fixing these assumptions as a slight deviation in this stage could lead to a huge delta on the year end performance.
Let us look at 3 tools which are easy to comprehend and deploy that can be great help in our planning:
1. Lowest First Cost Analysis
The lowest first cost approach is merely finding the lowest-priced item that meets your specifications at the time you need it. This approach works best for a narrow set of circumstances like below:
 Identical brands and suppliers are available for our need. (Eg: Tissue Papers, Stationery etc)
 Availability and Supply of the said material is not a challenge
 Substitution of one brand for another doesn’t impact the user and is not infra dependent ( A4 Paper, Air freshener canister)
 The maintenance cost or storage cost is minimal or non-existent

In all of the above cases, the lowest first cost strategy is the best choice. However, it is not sufficient for all planning needs. Any need that has a perception based satisfaction can’t be defined for quality and quantity so easily and this strategy won’t function well the moment there are ambiguities in the need specification. That is where people come up with phrases like, for better quality one needs to pay more, etc.
The advantage of this strategy is that it doesn’t usually impact the budgeted expenses adversely. The rate normally rallies around a standard and anomalies are rare. At the same time, the disadvantage is that Life Cycle Cost or Operating Cost on a long term will increase. For example, using the cheapest available A4 paper will be easy on the Operating expense but might result in buying a new printer altogether before the actual Life time of the printer. Buying a slightly better quality paper will help us use the same printer for long and the best quality paper will enhance the printer for much longer.
2. Life Cycle Cost Analysis
Traditionally, Life cycle cost analysis (LCC) is a construction-based decision method, and not an accounting method. There are three major cost categories in a life cycle cost analysis.
1. Initial cost (Cost of acquisition, design, delivery, installation, testing, renovating, relocating, modifying etc. Eg Design cost for a Kitchen Modification and the project cost in commissioning it)
2. Ongoing expenses or what we usually refer to as Operational cost — such as utility, servicing, and maintenance costs that continue as long as the asset is used ( AMC of the kitchen equipment, B check on DG Set etc)
3. One-time future expenses — such as system calibration after commencing operation, and major upgrades or overhauls — that occur infrequently and predictably during the life of the asset ( Software upgrade that we undertake as and when required, Anti-virus up gradation etc)
LCC Analysis accounts for ALL the costs associated with an asset including cost of removal if any, disposal etc. One additional parameter that comes into play in LCC analysis is the aspect of time. Calculating the depreciation where applicable. This approach is hugely helpful when we have the complete utilization forecast. All one needs to do it have a comparable statement of LCC analysis of all available options and the winner will be looking in our face. Predictably, this approach hence is valid for analyzing investments when long-term payback is a major factor. The shorter the asset life, the less useful this method becomes.
When calculating life cycle costs, few factors ought to be considered are:
• Life expectancy of the asset
• Assessment of all costs and discounts, plus tax impact if any
• Capitalization of the costs that are capitalized
• Fair estimate of the inflation and interest rate during the life expectancy of the asset
Because assumptions may vary widely, the best approach is to predict outcomes based on a range, such as an inflation rate of a minimum of 5 percent and a maximum of 8 percent annually.
A great example of effective utilization of LCC analysis is during the installation of an energy management system or a Rain Water Harvest System etc. The cost of an energy management system is added to standard electrical and mechanical equipment costs. To justify the additional cost, the savings that are produced are also quantified and analyzed. Energy management systems and other such products produce cost avoidance or cost savings after the payback period too.
Life cycle costing is also useful for producing documented information about longer-term savings. Most products require some amount of maintenance to operate effectively over the long term. Therefore, such costs must be considered when making a final product decision.
3. Cost-Benefit Analysis
Cost-benefit analysis asks: "Are the benefits of a project worth its costs?" Cost-benefit analysis should be the method of choice if you must compare quantifiable (measurable) parameters with qualitative factors. It is not difficult to see that decisions made on the basis of quantifiable costs or savings (avoided costs) are easier to make. This method is useful when analyzing projects that involve physical improvements to existing infra structure but do not affect the market or asset value of the property as a whole. It can even be used to support trade-offs between cost related and qualitative factors
Not every quantifiable issue relates to cost. For example, specifications for computer systems include many measurable elements that do not relate directly to cost, such as amount of RAM, megabytes of disk space, and the clock speed of a chip etc.
To conduct a numerical comparison of hard and soft costs, you will need to apply relative-weighted numeric values to qualitative factors and to costs. These numbers can be assigned to derive an overall score that indicates how well a given project or proposal fulfills the department or company’s stated objectives.
When you begin any cost-benefit analysis, consider the following issues:
• Specifically, what is the project intended to accomplish?
• What conditions constrain or affect the project?
• What conditions might exist after the project is completed?
• Which conditions are controllable and which are not?
• What performance requirements or time and cost criteria will be used to evaluate effective project performance?
• What is the minimum acceptable level of performance in each category?
Hard Costs and Soft Costs
Hard costs are those associated directly with actual construction, leasing, maintenance, and upkeep. Hard benefits are savings on revenues generated directly from these activities. Soft costs and benefits are those related to the management of construction, leasing, and maintenance and upkeep, such as overhead, fees, and management time. These distinctions are not accounting or budgetary conventions, but may figure prominently in the thinking of executives who may be reviewing the project. As we plan for facilities projects, we should keep in mind that the argument for some costs is more persuasive than for others.
• Most persuasive are hard costs or benefits that can be measured and attributed directly to a specific activity, account, etc
• Also persuasive are hard costs or benefits that can be measured but are not attributed directly to a specific project or customer and therefore are allocated on a prorated basis (for example, overhead costs)
• Less persuasive are tangible but unmeasurable soft costs or savings (for example, projected savings in staff time that cannot be tracked or verified in a practical way)
• Least persuasive are intangible and unmeasurable soft costs or savings (for example, improved quality of service) because evaluations are often subjective or inconsistent
It is more difficult to compare hard (quantitative) costs/savings to soft (qualitative) costs/savings than to compare hard costs and savings to each other. The less measurable something is and the more one mixes bases for evaluation (cost vs. time vs. quality, for example), the more difficult comparison becomes. Consequently, project justifications often present the strongest possible case in cost numbers first and treat other justifications as secondary arguments.
The evaluation process is often structured into three levels:
1. Quantitative vs. quantitative factors
2. Quantitative vs. qualitative factors
3. Qualitative vs. qualitative factors
Facility managers must understand many important financial concepts in order to communicate effectively with senior management. Along with a thorough understanding of the core business, these financial concepts are vital if facility managers are to speak the language of business and gain the confidence of corporate executives as genuine contributors to corporate profitability and well-being.

The article is collection of thoughts from my colleagues, current and old, experiences shared over various forums over the internet and facility management events and other relevant sources like project material, submitted papers etc. Please refer to BOMI International’s course Fundamentals of Facilities management for more details.

Please feel free to use any part or complete article as deemed fit. These thoughts and collation have no copyright whatsoever.