Most of you will read this and never do anything with it. Don’t worry, that’s ok.For those of you who do try it, guess what? This is the exact principal we used to decrease a customer’s average invoices by over 30%.It’s called Parkinson’s Law and it’s POWERFUL.Parkinson’s Law is the adage that work expands to the container it’s given and spending increases to fill the budget given. It’s fascinating stuff. If you want to learn more there is a whole book written about it.Give someone an hour to get a 10 minute job done. It will probably take close to one hour.The same thing applies to facilities maintenance with NTE’s. Give someone $400 to get the job done and they are going to charge you close to $400. It’s basic human nature.
Here’s the challenge:
For one week, pick one trade and cut your NTE down to $150 for every reactive maintenance work order you send out.After one week compare your invoices to your company average for that trade.
2 things will happen.
- Your average invoice for this trade will decrease dramatically.
- The amount of NTE increases you will have to approve will go up. (Note: This is why you are only going to do one trade for one week.)
Item number 1 is a good thing. Item number 2 is completely unsustainable.You might be wondering how this technique can be used for the long term. Don’t worry, NTE automation comes baked in with FM Dashboard. The software takes care of all of the work while you get all of the reward.You should seriously give it a try.