The number of RPs establishing their own internal maintenance services is on the increase, often driven by failing external contractor models or a desire to improve service delivery. But how can you guarantee your new delivery model will live up to expectations and hit the sweet spot for your organisation?
Clearly some DLOs are set up to make cashable savings. Just transfer the staff and save the VAT and profit margin – simple right? Apparently not.
Our work with a range of DLOs shows a number of common mistakes are being made which, despite the positive PR being sent out, is actually behind the scenes causing some major concerns. This is despite significant investment and employing specific staff to manage the TUPE transfer, procure the materials and fleet and get the service up and running.
Indeed we are working with some Executive teams who are almost ready to give up on relatively new DLOs and revert back to a contractor model.
We know that it only takes some small sensitivities in a few key areas and those VAT and profit margin savings will have vanished into thin air.
We work with RPs to get the right model for them via an objective options appraisal which tests the potential routes and is tailored to their needs. This may include external or internal delivery options or the right mix of the two.
This is why it is absolutely critical to complete a robust and objective options appraisal specific to your circumstances to test whether you are making the right step.
What we are absolutely certain of is that unless you address the root cause issues of why your existing model is not working for you it is likely that the grass won’t necessarily be greener on the other side.
Whichever model you adopt to deliver your R&M, the key to success lies across the whole organisation, spanning culture, alignment with organisations objectives and executive team buy-in. Sustainable delivery must be supported with the right performance management tools and IT processes to deliver the service and keep it on track with continuous improvement.
What’s your experience of creating a successful delivery model? Do DLOs always beat external contracts on costs and quality?