How to do a bad CRE/ FM outsourcing deal, Part 2 (as a buyer)

In my blog last week, I focused on the ways a service provider can help create a bad outsourcing deal. However, a buyer can behave in ways which can derail a CRE or FM outsourcing contract.  The attached checklist is a good way to insure your outsourcing deal does not meet expectations. So if you want to create a train wreak in corporate real estate and facilities management do the following:

1. Never give good data or information to your potential service providers. If they ask too many questions reply, “you are the experts, tell us the answers”. Bad data or misleading is ok, they should know better right?
2. Blind guarantee to executive management. Push the most aggressive savings targets you can conceive. Promise it to senior management early, with no detail or due diligence from the service providers. Ignore your specific context and circumstances.
3. You don’t need help.  Don’t hire an advisor (consultant or lawyer) who actually knows CRE/FM outsourcing. CRE and FM are not specialized disciplines. Save nickels and dimes, this is easy.
4. Buy a big promise at the lowest cost. Hire the service provider who offers the highest savings at the lowest price.  Treat all services as a commodities which are easy to obtain.
5. Push for no change. Force your service provider to take on your vendors and staff. Don’t allow change.
6. Force Fast Change. Force your provider to change too quickly. Don’t listen to expert advice. Be reckless. If a service provider tells you something should take 90 days, tell them you want 60 days.
7. Push a Crazy Risk Transfer. Push unreasonable commercial and legal terms on your service providers.  After all someone should be desperate enough to do whatever you insist and this is exactly the type of provider you need.
8. Hire an expert and tell them what to do. Tell your service provider exactly what to do. Put in place very prescriptive requirements, SLA’s and KPI. Force all your previous relationships on the service provider (every broker, contractor and service vendor).
9. Hedge your bets. Keep a very large “hold back” organization to shadow the service provider.
10. Expect everything to be easier as soon as you sign the contract. Expect all your pre-outsourcing issues will go away. Outsourcing is magic, not hard work, this should work out well.