Iconic Australian business reengages internal customers
In this case study Grosvenor had to go back to basics and help this iconic Australian business to reengage with internal customers after the first attempt to outsource failed.
We help design the most effective model and strategy for your outsourced property suppliers. We understand the market of suppliers, their strengths and weaknesses, and how to best leverage their capabilities. From performance based contracts with outsourced property and FM firms, to maximising your FM supply chain to construction delivery.
We design outsourced models that match your property portfolio, owned or leased, and industry sector and locations. We focus on maximising outcomes by leveraging the strengths of the market and avoiding the weaknesses.
We have an in depth knowledge of the property supplier market and can help develop your approach to market for corporate real estate, asset management, facility management and capital works.
We can lead your end to end procurement ensuring you are best placed to have a high performing contract, driven by a proven and robust process, and real IP in best practice contracts.
We can conduct contract reviews, benchmarking and health checks to optimise or turn around performance. We can provide support to implementing effective contract management of outsourced suppliers.
“Peter demonstrated a deep understanding of the issues, building trust and rapport with the team and always offering insightful and constructive feedback for consideration.”
“We were also able, through this engagement, to get the privilege of a masterclass on contemporary performance management arrangements for large volume and scale service contracts. This masterclass provided great insights which influenced the approach adopted for performance management in our future contracts.”
“The delivery of new contracts will significantly impact the future delivery of estate services and we feel like we are in a very good position at the start of these contracts to deliver enhanced value over time. I would like to take this opportunity to thank Peter and the broader Grosvenor team for the contribution they have made.”
Peter has expertise in supporting organisations to optimise their property, facilities and built asset functions and management. He specialises in Property strategy and management and procurement and contracting.
"Quality thinking is all about understanding the client’s need first and foremost, leveraging Grosvenor’s knowledge base, applying true critical thinking to find the best solution and exceeding expectations."
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In this case study Grosvenor had to go back to basics and help this iconic Australian business to reengage with internal customers after the first attempt to outsource failed.
Rather than just refreshing the contract and rolling out the project three times, we engaged broadly and deeply, quickly and efficiently, to see how it could be refined to produce additional benefits.
Museum Victoria manages a wide range of services for some of Melbourne’s most significant cultural attractions. The visual presentation of these unique facilities requires a rigorous program of site inspection and ongoing contract performance management. Grosvenor developed a mobile app that supports site supervisors during site inspections, collates all results and automatically calculates performance levels.
Large complex contract relationships require high-quality management skills and high-quality performance measures. Even with the best intentions parties can often find themselves at loggerheads when assessing performance. With over two decades of experience, Grosvenor works with clients to ensure contracts and contract relationships are performing.
When it comes to managing property portfolios, outsourced service providers, and FM strategies, many organisations focus on what’s easy to measure - not what actually matters.
As contract getting longer, focus on outputs, not inputs, relate to services, not products and have higher numbers of stakeholders to service they require a relationship-based approach. More importantly, if you want the service provider to do more than just the minimum, then you must (as a client) take an active interest in THEIR needs as well as your own.
Property outsourcing is a procurement and operating model where organisations engage external providers to deliver defined property and facilities management services under structured contractual arrangements. These services typically include facilities management, maintenance, lease administration, workplace operations, help desk functions, and project delivery.
In leading consulting and advisory models, outsourcing is implemented through service-based or performance-based contracts that define service towers, KPIs, SLAs, reporting requirements, and governance structures. This enables organisations to shift from internally delivered operational functions to externally managed service delivery models.
The primary objective is to improve operational efficiency, access specialist capability, and standardise service performance while allowing internal teams to focus on strategic property, asset, and portfolio decision-making.
The decision to outsource facilities management services is typically based on an assessment of organisational capability, portfolio complexity, cost efficiency, risk tolerance, and governance maturity.
Leading practice organisations use a target operating model assessment to determine which services should remain internal versus those better suited to outsourcing. This often results in hybrid delivery models, where strategic property functions and governance remain internal while operational service towers are delivered through external providers.
Outsourcing is generally considered appropriate when it improves service consistency, enables scalable delivery, provides access to specialist expertise, and delivers better value-for-money outcomes through performance-based contracting and measurable KPIs.
The benefits of outsourcing property and facilities management are primarily realised through access to specialised service capability, scalable operating models, and improved performance management frameworks.
Well-designed outsourcing arrangements typically include structured service towers, KPI and SLA frameworks, vendor accountability mechanisms, and integrated reporting systems. These enable organisations to improve service consistency, reduce internal operational load, and strengthen transparency of performance outcomes.
From a consulting perspective, outsourcing also enables organisations to benchmark service delivery against market standards, improve cost efficiency through competitive procurement, and focus internal capability on strategic asset management, portfolio optimisation, and workplace strategy.
Outsourced property contracts typically fail due to weaknesses in contract design, governance structure, and performance management rather than service delivery alone.
Common failure points include unclear service definitions, poorly designed KPIs, misaligned SLAs, insufficient governance frameworks, and weak supplier relationship management. In many cases, organisations also lack internal capability to effectively manage vendors and interpret performance data.
High-performing organisations mitigate these risks through structured contract management frameworks, clearly defined escalation pathways, continuous performance monitoring, and integrated governance models that align supplier delivery with organisational outcomes.
Before outsourcing property services, organisations should assess their current operating model, internal capability maturity, data quality, governance structures, and service delivery requirements.
A structured assessment typically evaluates which services are core versus non-core, the maturity of existing FM operations, and the organisation’s ability to manage external providers through KPI-based performance frameworks.
Critical considerations also include contract design capability, supplier market conditions, integration of technology systems, and the ability to maintain visibility over service performance through reporting and governance mechanisms.
Facilities management procurement is the structured process of sourcing, evaluating, and contracting external service providers to deliver property and workplace services.
In leading practice procurement models, this process includes market engagement, service tower definition, KPI and SLA development, evaluation of supplier capability, and contract negotiation. Services may include cleaning, maintenance, security, technical services, and workplace operations.
Effective procurement strategies are designed to optimise long-term value, reduce operational risk, and establish clear performance management frameworks that support ongoing contract governance and supplier accountability.
Facilities management contract performance is improved through robust governance frameworks, clearly defined KPIs and SLAs, structured performance reporting, and active vendor management.
High-performing organisations implement integrated contract management systems that track service performance across defined service towers and enable real-time or periodic performance assessment.
Continuous improvement is achieved through regular performance reviews, stakeholder engagement, issue escalation pathways, and alignment of supplier incentives with organisational outcomes through performance-based contracting mechanisms.
Insourcing refers to the internal delivery of property and facilities services using organisational staff and resources, while outsourcing involves engaging external providers under contractual arrangements to deliver defined services.
Leading organisations often adopt hybrid operating models where strategic functions such as portfolio management, governance, and planning remain internal, while operational service towers are outsourced to specialist providers.
The choice between insourcing and outsourcing is typically determined by cost efficiency, capability availability, risk exposure, and the organisation’s ability to manage service performance through structured governance frameworks.
Organisations should review their property outsourcing model when there are indicators of performance misalignment, such as declining service quality, rising costs, KPI underperformance, or governance breakdowns.
Reviews are also triggered by contract renewal cycles, organisational restructuring, workplace transformation programs, or changes in operational demand.
A structured review typically includes benchmarking current service delivery against market standards, evaluating contract effectiveness, and assessing whether the existing operating model remains fit-for-purpose in terms of cost, capability, and performance outcomes.
Governance is critical in outsourced property contracts because it provides the structure for managing supplier performance, enforcing accountability, and ensuring alignment between service delivery and organisational objectives.
Effective governance frameworks include clearly defined decision-making structures, performance dashboards, KPI and SLA reporting mechanisms, escalation processes, and regular contract review cycles.
In mature outsourcing models, governance also integrates stakeholder feedback, continuous improvement processes, and performance benchmarking to ensure service delivery remains aligned with evolving organisational needs and market standards.
Whether you are looking to get more out of your projects, are interested in collaboration or would like to talk about joining the Grosvenor team, please get in touch.
