Many organisations outsource services such as catering, security, fleet management, cleaning and travel to specialist providers. In these arrangements, the Facilities Manager is responsible for ensuring that each supplier delivers the agreed service safely, consistently and in line with the contract.
One effective way to monitor supplier performance is through a balanced scorecard. This provides a structured view of service quality, highlights underperformance and creates a clear basis for regular review meetings.
A scorecard brings together the most important measures used to assess a supplier’s performance.
A balanced approach is particularly useful because it combines:
Quantitative data provides objective evidence, while qualitative measures capture important aspects of service that may not be reflected in numbers alone.
Together, they provide a more complete picture of performance.
Wherever possible, quantitative targets should be SMART:
A vague target such as “improve customer satisfaction” is difficult to monitor.
A stronger measure would be:
Achieve an average customer satisfaction score of at least 90% each month.
Clear targets make expectations easier to understand and performance easier to assess.
The Facilities Manager and supplier should develop the scorecard together.
Both parties should agree:
Many of these measures may already be included in the contract or service-level agreement and can be transferred directly into the scorecard.
Involving the supplier in the process helps ensure that expectations are realistic, understood and accepted.
Consider an organisation that outsources the operation of its on-site restaurant.
The scorecard may include measures such as:
If the complaint target is missed, the contract may require the supplier to produce a corrective action plan. In more serious or repeated cases, service credits or financial penalties may apply.
Not every important aspect of supplier performance can be measured through statistics.
The scorecard may also assess:
These areas should still have clear assessment criteria to reduce subjectivity.
For example, communication might be scored according to whether reports are submitted on time, issues are escalated appropriately and agreed actions are completed.
Balanced scorecards are typically reviewed monthly or quarterly, depending on the service and its level of risk.
High-risk or business-critical services may require more frequent review.
During the meeting, both parties should discuss:
Actions should be assigned to named individuals and given clear completion dates.
When a supplier misses a target, the response should be proportionate to the seriousness and frequency of the issue.
Possible actions include:
The purpose of the scorecard should be to improve performance, not simply record failure.
A well-designed scorecard gives the Facilities Manager clear oversight without requiring constant involvement in day-to-day delivery.
It can help:
It also provides useful evidence when reviewing contracts, considering renewal or preparing a future tender.
A scorecard should not include so many measures that it becomes difficult to use.
Focus on the indicators that genuinely demonstrate whether the service is delivering value, quality and compliance.
Measures should be reviewed periodically to ensure they remain relevant to changing business needs and contractual priorities.
Balanced scorecards provide Facilities Managers with a practical and consistent way to manage outsourced services.
By combining measurable targets with qualitative assessment, they create a rounded view of supplier performance and support more constructive review meetings.
The strongest scorecards are jointly agreed, linked clearly to the contract and used to drive action. When implemented effectively, they help ensure outsourced services remain compliant, reliable and aligned with the organisation’s expectations.
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