Cleanliness and Catering Services at the Ministry of Defense - Example

A REPORT ON CLEANLINESS AND CATERING SERVICES AT THE MINISTRY OF DEFENCE MAIN BUILDIND Student name Code & Course Professor’s name University Date Contents 1.0 Introduction 3 2.0 Outsourcing Contract 4 3.0 Provider Selection Procedure 5 4.0 Outsourcing Benefits 5 5.0 Outsourcing Legislation Issues 5 6.0 Outsourcing Strategy 6 6.1 Outsourcing Arrangement 7 6.1.1 Multi-sourcing 7 6.1.2 Total facilities Management 7 6.1.3 Bundled Sourcing 8 7.0 Managing Performance 8 7.1 Performance Measurement in FM 9 7.2 Operational and Benchmarking Strategy 9 8.0 Outsourcing Risks 9 9.0 Outsourcing Risks Management 10 9.0 Recommendations 11 10.0 Conclusion 12 Reference List 13 A Report on Cleanliness and Catering Services at the Ministry of Defense 1.0 Introduction Quality with regard to service provision has been the key driving force in the present global working environment. The perfection of services has become the basic objective of the ministry of defense as well as other worldwide organizations that value quality provision in the sectors of hygiene and catering to their customers. Providing quality service, at MOD high profile building has suffered significantly; hence, an effective outsourcing strategy needs to be created to maintain its name. For such a high profile building it is paramount that service delivery be of utmost importance, not only at in-house levels but according to international levels. The poor quality of catering and hygiene services at such an institution as evidenced by the complaints is enough reason for the change to be embraced. Lack of coordination between these two departments has triggered speculation. In order for an institution that holds such a high profile to maintain its standards, outsourcing of contracts has to take place in order to improve quality. Such contracts will have positive effects on the institution despite the few challenges that are likely to be experienced. Considerations in terms of cost and productivity have to be taken. In order to offer prestigious services to the people who take pleasure in using this facility, exemplary work has to be done for outcome maximization in order to avoid dereliction of the high profile. Effective contractors whose previous work is evident and superb have to be considered during outsourcing contract allocation in order for maximum returns to be realized. Such contracts if well implemented are likely to trigger successful outcomes. An of cited description for facilities management is affirmed by Baldry and Barret (2009) who view it as an integrated strategy approach that is integrated into operation, improvement, maintenance and incorporating the infrastructure and buildings of any organization; aimed at creating an environment in supports the organization’s objectives. 2.0 Outsourcing Contract The outsourcing contracts will be the provision of quality hygiene and catering services to contractors who will prove fit and competent to offer such services. The contracts will be awarded on the basis of merit as per the requirements, and each contractor has to demonstrate an ability to deliver quality. 3.0 Provider Selection Procedure The choice to outsource a contract is a classic decision that can affect the institution positively or on the contrary. Among the considerations that the Ministry of Defense has to put in place are quality, the possession of the required skills and the organizational strategy (Haveckin, 2012, pp. 19). In order to select contractors who possess the requirements, a careful panel has to be put in place to carry out the evaluation procedure of the available contractors in order to arrive at a decision. 4.0 Outsourcing Benefits The maximum outcome is always the mainframe of any contractual agreement. This agreement is normally arrived at upon evaluation of the possible benefits. Entering into an agreement with outsourcing contractors by the Ministry of Defense will benefit it in the following ways: to start with, the institution will benefit in terms of quality service provision. The fact that the quality of catering and hygiene services is wanting is enough reason for such contracts. Furthermore, the contracts will restore the high profile and prestige associated with the ministry of defense. The high labor costs are likely to be reduced as a result of the outsourcing (Smith, 2012, pp. 10). The outsourcing is also likely to increase work escalation (The Smith Institute, 2013, pp. 14). The levels of accountability and transparency will be improved (Greenwood, 2014, pp. 19). 5.0 Outsourcing Legislation Issues The outsourcing of the contract, though seen to be productive can be drawn back by a number of legal issues such as the Transfer of Transfer of Undertakings (Protection of Employment), called TUPE. Such issues put some restraining regulations during outsourcing of contracts, and their utmost significance has to be put into consideration during sessions on contract outsourcing. For instance, the TUPE legislations demand that the incoming contractors will have to work with the workers who have been in the organization. This puts the contractors in a state of despair as to whether to put up with the initial employees or swap in with their new team of workers. The employees are supposed to continue enjoying their previous benefits despite the fact that a new employer may have been put in place. The introduction of new working terms and conditions in the working environment forces the employees to try and put up with rules that are not much familiar with them. In addition, the TUPE legislations demand that both the incoming and outgoing contractors together with the management must liaise with the employees through trade unions and or elected employee representatives in order to discuss when and why the transfer is scheduled to be effective and provide information on the implications of the transfer to the workers and a statistical report on every department’s workers (Acas, 2016). 6.0 Outsourcing Strategy Several limiting factors have to be put into consideration to ensure effective service delivery. Firstly, the contractors being awarded the outsourcing contracts have to be trustworthy and be legalized by the respective bodies to provide services to clients. This has to ensure that the contract is not awarded to unqualified individuals whose sole aim is to earn money without following the legal pathway. Secondly, the financial statuses of the purported contractors have to be sufficient to ensure that they provide the services adequately without experiencing a financial crisis (Department for Business Innovation & Skills, 2014). 6.1 Outsourcing Arrangement A number of outsourcing arrangements can be considered notably, multi sourcing, total facilities management and bundled outsourcing. Choosing the appropriate sourcing strategy is paramount in the planning process. In this regard, best-of-breed sourcing asserts that the providers have different weaknesses and strengths and creates the preferred strategy from various approaches. 6.1.1 Multi-sourcing A typical multi sourcing approach is described by competition between suppliers which eliminates lock in to single supplier. Whereas an agile multi sourcing strategy is described by an optimized mindset, it necessitates a creative mindset and a novel platform communications and processes can be effectively done both inside and out of an enterprise (Milota et al., 2012). Multi sourcing alludes to the effective special leadership required , the organizational structure and the process integrated in this approach. These aspects must function seamlessly in achieving the vital purposes of multi –sourcing. Increase operational efficiency, create quality improvements and increase corporate agility. Evidently, by multi-sourcing competition, suppliers are more attuned in controlling cost and preventing the lock in realized by clients. 6.1.2 Total facilities Management Out-tasking strategy can be incorporated where defined tasks, notably cleaning and catering services are outsourced to preferred vendors. This strategy is effective where a network of the external services can be outsourced is maintained as a buffer in meeting the peak load demands (Barrett and Baldry, 2003; Booty, 2006) 6.1.3 Bundled Sourcing Bundling effectively reduces the number of suppliers; hence it needs the description of optimal mix of processes purchased singularly; or at similar times from the same suppliers where efficiencies and synergies are showcased in end-to-end governance, processing, performance and cost. The possible strategies for bundling can be considered, making complex decisions with significant costs and the service effects. Question arises regarding the number of suppliers have created effective capabilities on large scale bundled deals. Following the divergent approaches that have been considered a bundled approach should be followed by MOD. Evidently, a bundled service proposition does not essentially require a client Board member directing it. It is evident that relationship factors were subjected to the string independent endorsement where relationships required a lot of relationships between suppliers and clients (Willcocks, 2012). Consequently, more often than not there is a tipping point where MOD may increasingly find advantages to bundling, pursuing what is commonly referred to as “add-on-strategy, that oversee a increasingly bundled service over time. 7.0 Managing Performance Competency among employees is one of the most advantageous characteristics of employees. Performance evaluation is the deterministic factor of success in any given organizational setup. Therefore to ensure that the performance at the Ministry of Defense proves to be a successful embankment, performance management has to be given the upper hand among the management (Williams, 2012, pp. 19). 7.1 Performance Measurement in FM Defined as the qualification of how well activities in a given process achieve a specified goal, the realization the benefits of the appropriate measurement systems is paramount (Keefe, 2012b). A clear attention must be considered to both the effective maintenance of culture and support systems within MOD. In this regard, it is imperative to pave the way for the adoption of POE in designs of buildings to understand better an effective approach to creating an effective working environment. Whereas the Ministry of Defence is typified by military-attuned designs, considering its architectural design in accommodating the outsourced individuals will be paramount (Keefe, 2012b) Even though actual changes may not occur, interior redesigning would go a long way in enhancing the working spaces. 7.2 Operational and Benchmarking Strategy Performance benchmarking is paramount for the success of the outsourcing relationships. Strategic benchmarking should be incorporated where the best strategies and their prerequisites are considered. Future key competencies by the outsourced parties notably, service delivery by describing and assessing divergent interdependent tendencies will be the considered (Smith, 2012). 8.0 Outsourcing Risks Despite the fact that change has to be given the forefront in MOD, such a change has its effects that may trigger the institution to a state of dilemma. Such risks have to be made aware of during the outsourcing of the contract in order to create an environment that is prepared well enough to deal with the likely risks that may surface. Firstly, there is a likelihood of the risk of having to incur extra costs (Guidance Cabinet Office Controls, 2014, pp. 60). The financial expenses are tendered to increase and create a shortage of financial resources. The salary expenses on many employees and the management are likely to be affected during such a time. Secondly, the risk of the outsourcing contractor not being able to adequately provide the services as anticipated (Girth, 2012, pp. 20). There is a likelihood that the services being demanded may not be adequately delivered by the contractor and the situation is likely to remain as it was before. Thirdly, MOD is likely to experience cancelation of some activities that were scheduled to take place. This may be due to renovations being carried out in the meeting rooms or a temporal hold out of workers in order to reassign the duties. In addition, MOD is likely to experience legal issues with its previous employees whose contracts become terminated in order to pave the way for the new workers from the outsourcing contract. 9.0 Outsourcing Risks Management The above risks if not properly taken into consideration are likely to pose major challenges to the ministry of defense and its daily operations. Management of these risks requires some expertise in order to curb adequately the challenges. In order for such risks to be sufficiently managed, the following actions as discussed have to be taken. In order for the Ministry of Defense to adequately have to deal with the risk of incurring extra costs, a financial committee has to be established in order to draw a financial plan for the outsourcing contracts and the likely expenses to be incurred in order to cut off unnecessary expenses (Hefetz, 2012, pp. 290; Andersen et al., 2010). Secondly, in order to ensure the outsourcing contractors achieve the targeted objectives without failure, a careful selection of contractors has to be carried out. The contractors have to be evaluated on the basis of their previous performances at other institutions in order to analyze their capability to provide excellent services. Contractors whose previous work are not evident or were poor have to be cut out to curb the risk (Wilcox, 2012,pp. 20). In order to ensure that the services being anticipated are achieved adequately, close monitoring and evaluation have to be a daily routine in the organization. If the work is not recorded in regular instances, the possibility of measuring change is blurred. For the previous employees not to present challenges to the organization, the management has to agree with them on compensation for work termination and or re-employment in order to have mutual benefits (Keefe, 2012, pp. 290). 9.0 Recommendations From the above conclusion, it is significant that the following should be considered; MOD should consider outsourcing contractors who are likely to improve the qualities of services in the catering and hygiene departments while marinating reduced cost (O’Donnell, 2014, pp. 5). A pivotal prerequisite for facility management is the optimization of the cost in realizing improved and quality services. In order to employ the outsourcing of facility management it is paramount to prepare a high quality approach of its ensuring. The contracts should be awarded on budgetary measures based on the contract with the least costs because of the limited budget resources. Whitmore (2006) suggests divergent strategies that can be used in overseeing quality of service and financial resources are well addressed. Five steps can be considered in minimizing the risk of outsourcing; vetting potential vendors. Among the risks to be considered by MOD include but not limited to; transitional risk, failure in its value chain, financial risks, hazard risk, complexity risk and complexity risks. Once a vendor has passed this, potential future impacts can be considered. MOD can create a first party insurance program that can ultimately protect its interest in any outsourcing deals. Thereafter liability issues including understanding and agreeing on who controls that handling of any claims, clarifications on employee injuries, to name a few should be considered. 10.0 Conclusion Conclusively, quality is the main motivating factor among customers. Provision of quality services triggers a continuous inflow of customers. Hygiene and catering are the main services deterministic of organization’s profile and, therefore, improvement of such would be of utmost significance. In order for such services to be improved at the ministry of defense, it has to enter into contractual agreements with outsourcing contractors who are supposed to provide the demanded quality services. Selection of contractors who are best fit to offer the services requires a series of extensive selection procedure based on cost, capability as well as final evaluation in order to arrive at distinctive objectives. In order to ensure perfection and utmost effectiveness, the institution needs to put into consideration the previous successes of the respective contractors in order to arrive at a good choice of the most suitable contractors. The benefits of the contracts are worth consideration as the institution is likely to benefit in terms of quality and profile. Legal issues from the TUPE Acts have to be considered in the contracts as they are likely to provide a setback. The Ministry of Defense has to closely evaluate performance in order to ensure success. The risks that are likely to be presented by the contracts if properly dealt with as discussed above may not present setbacks during the journey towards attaining quality. Reference List ACAS Handling TUPE Transfers (2014). The ACAS Guide. Andersen et al (2010) “Indirect cost savings when outsourcing.” ISS White Paper, December 2010. Barrett, P., and Baldry, D. (2003). Facilities Management: Towards Best Practice, Chapter 4 – Procurement. Wiley-Blackwell. Baldry, D., and Barret, P. (2009). Facilities Management: Towards Best Practice. John Wiley & Sons, NJ Booty, F. (2006) Facility management handbook, 3rd Ed. London: Elsevier. Pp 261- 282. Department for Business Innovation & Skills. (2013). Transfer of Undertakings (Protection of Employment) Regulations 2006 Consultation on Proposed Changes to the Regulations. Department for Business Innovation & Skills. (2014). Employment Rights On the Transfer of an Undertaking. A guide to the 2006 TUPE Regulations (as amended by the Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014) for employees, employers and representatives Girth, A., Hefetz, A., Johnston, J. & Warner, M. ( 2012). Outsourcing public service delivery: Management responses in noncompetitive markets. Public Administration Review 72: 6, 887‐900 Guidance Cabinet Office Controls. (2014). Spending controls for government departments to reduce wasteful expenditure and help reduce the fiscal deficit. 9th April, 2014, https:// www.gov.uk/government/publications/cabinet-office-controls. Haveckin, B. (2012). Information Technology Outsourcing by Large Australian Organizations. Faculty of Business and Law Victoria University Australia. Hefetz, A., & Warner, M. (2012). Contracting or Public Delivery? The Importance of Service, Market, and Management Characteristics. Journal of Public Administration Research and Theory 22:2, 289‐317. Keefe, J. (2012b). Public Employee Compensation and the Efficacy of Privatization Alternatives in US State and Local Governments. British Journal of Industrial Relations 50:4, 782‐809. O’Donnell, O. (2014). Service Level Agreements. Local Government Research Series. An Foras Riaracháin Institute of Public Administration. Smith, A. (2012). The Pros and Cons of Outsourcing. Purdue University. Usher, N. (2003). Outsource or in-house facilities management: The pros and cons. Journal of Facilities Management, Vol. 2, No. 4, pp. 351-359. The Smith Institute. (2014). Outsourcing the Cuts: Pay And Employment Effects Of Contracting Out. Wilcox, L. & Lacity, M. (2012). What Suppliers Would Tell You if They Could, In Professional Outsourcing. No 8. Williams, Z. (2012). The Shadow State. Social Enterprise UK. Whitmore, H.B. (2006). You’ve outsourced the operation, have you outsourced the risk? Financial executive international, 41-43 Milota, V., Potkány, M., and Hitka, M. (2012). Outsourcing Of Facility Management. Business Administration and Management. Read More