In 2005 we commissioned independent research seeking feedback from our occupiers on how we work with them to support their needs and how we manage our properties. As a result of this feedback we implemented a number of changes in 2006.
We identified 85 particularly important customer relationships and established a Key Account Programme. Our senior management were assigned responsibility for these key relationships to:
- Identify contacts within each occupier and maintain a regular dialogue
- Understand our customers’ changing business needs so that we can support them more effectively
- Monitor our ongoing performance.
Results from this programme include piloting new out of town retail formats with Stylo Barratt, and negotiating with two occupiers at Broadgate the surrender of 5,500 square metres to enable expansion by UBS.
We published Our Service Commitment, which focuses on:
- Leasing
- Service charge management
- Contact, communication and responsiveness
- Property management
- Building management.
This sets out the standards we expect to exceed in supporting our customers’ needs. We communicated this Commitment to all of our occupiers. We use the standards to manage the performance of our employees and our managing agents.
We implemented changes to manage the performance of our managing agents more effectively. Following a review of the services they offered we:
- Established new contract terms
- Reduced those managing agents working with us from 19 to nine
- Agreed operating Key Performance Indicators (KPIs)
- Established a fee basis which is no longer linked to service charge expenditure.
We review the performance of managing agents every quarter.
We reviewed our service charge management and introduced a number of changes to ensure that we exceed the standards set out in the new Service Charge Code, which will take effect from 1st April 2007. We established a standard budget pack for all properties, introduced three year forecasts for service charge expenditure and standardised cost codes in the expenditure statement to reflect the Code’s standards. We also agreed service charge communication standards for all occupiers three times a year to provide:
- The previous year’s reconciled final expenditure statement
- A mid-year expenditure forecast to the current year end compared with the budget to act as the basis for consultation with occupiers prior to setting the following year’s budget
- The following year’s budget.
We reviewed and amended the licence application process for our London office portfolio, resulting in significant streamlining of the process and reduction of bureaucracy for our customers. The positive feedback we have received as a result of this indicates that licence applications are no longer the source of delay for occupiers that they used to be.
We continue to support our customer service initiatives through our active support of Real Service, a benchmarking group dedicated to helping the real estate industry improve customer service and generate improved performance. For more information see www.Real-Service.co.uk.
Next steps: we have commissioned a follow up piece of independent research, which will be completed in April 2007. We will publish the results in our next report.
