FM Realising The Value
FM Realising The Value
i-FM would specifically like to acknowledge the sponsors of Workplace Futures 2011.
Every organisation, regardless of size or sector, depends on a range of
These, and the management required to deliver them in line with dynamic
corporate needs, are increasingly recognised as critical business functions.
1 Introduction Page 04
So how should they be sourced: through in-house capabilities, one or more
2 What is Facilities Management? Page 06 outsource providers, or a combination of both?
What services does FM encompass? Page 08
The choice is not an easy one; nor is it a case of once done and thats
3 How is FM delivered? Page 10
finished. The purpose of this paper is to help senior executives think
How big is the market? Page 11
through the decision, whether for the first time or in review of a past
4 So, how should FM be delivered? Page 12 choice. It does not advocate a particular course: the best option can only
The starting point Page 13 be identified in the light of the organisations own circumstances.
FM process map Page 14
Risk management Page 15
People management Page 16
6 Conclusion Page 28
7 Acknowledgements Page 30
services
2008 revision of the UK Standard
In essence, FM is about taking Industrial Classification code. SIC
responsibility for those support 81.10 covers 'combined facilities
functions and services, leaving the support activities'. That
organisation free to focus on its represents a further big step in
central objectives, whether those formalising an understanding of
involve manufacturing products, the market and indeed in the
providing specialist services, maturing of facilities
operating a government management as a critical
department or delivering healthcare business discipline.
- or any other activity carried out on
all but the smallest scale. And FM is not just about support.
Good practice facilities
Since the early '80s when management can also make a
facilities management began to significant positive contribution to
be recognised as a separate a range of key business
discipline, a variety of definitions concerns: risk management,
has been offered. This can be productivity, reputation,
seen as a process of evolution, corporate social responsibility,
culminating in 2007 with the the talent agenda etc. Equally,
publication of European poor FM may have a negative
Standard EN 15221.1. impact on such issues.
on trust route is defined as two or more contract began the team decided
distinct processes or functions G4S had the professional skill
contracted to a service provider. and expertise to be trusted with a
range of additional services,
G4S provides bundled FM including management of the
services to numerous customers catering contractor.
across government, the NHS and
the private sector. In the case of In these difficult economic times,
the Food Standards Agency, the quality of relationships is
bundling of cleaning, security, crucial to continuing success for
reception and workplace both partners. The FSA has been
management services allowed asked to deliver 30% savings by
the organisation to outsource its central government over the next
soft FM to a single provider while 3 - 5 years. To support them in
retaining more direct control over this, G4S has suggested 25%
service elements. savings on the contract. That's
6% year on year for 4 years. We
When the Agency made the will do this by changes to shift
decision to move away from patterns, increased multi-skilling
managing multiple providers to and voluntarily ending our 'cost
establishing a relationship with plus profit' arrangement. We take
one partner, its objectives this as our own responsibility to
included securing the benefits of support our customer as we
cross-service efficiencies, consider their challenges to be
economies of scale and our own.
professional development of the
services. Bundling allowed it to Bundling means you're all in it
do this while leaving the hard FM together for the long-term. You
with another provider under the share any pain, but you also
landlord contract. share the success of your
customer and enjoy a relationship
One of the benefits bundled built on trust and mutual
services offers is that both client understanding.
and provider have an opportunity
to develop trust and grow the Emma Pearson, Corporate
contract over time as partnering Development Director, G4S
promised.
Facilities management is also a repent at leisure is an apt
big, diverse and dynamic industry, message here.
with the UK outsource market
valued at well over 100bn. Whatever service solution is
adopted - and however it may
Whether part of an in-house, change over time - if an FM
outsourced, or mixed mode strategy is based on a sound
service delivery model, facilities understanding of needs and
management is there to ensure opportunities, clear objectives,
corporate objectives are met. effective communication and
There is no 'right approach' to responsiveness to change - it will
whether it should be handled deliver fully on the benefits
internally or externally via promised.
contract. The right decision for
any organisation depends on
the specific circumstances and
context.
This White Paper grew out of the Workplace Futures is organised Workplace Futures is supported
Workplace Futures conference each year by i-FM the by the Facilities Management
series. award-winning web-based news Association (FMA).
and information service catering
Specifically, the need for such a to the needs of the facilities The FMA is the only trade body
paper, as well as the inspiration to management community. for employers in the FM sector,
produce it, grew out of the 2010 which works for its continued
programme (People, Service and Updated every business day, growth and development. FMA
Profit: a meeting of minds) and the site delivers a unique member companies have a
then 2011 (Commoditisation vs service - easily accessible, fully collective annual turnover of
Service Solution: which is the searchable and highly topical. more than 40bn and employ
future of FM?). more than 500,000 people across
The pioneer when it was the UK.
Each conference programme established more than decade
since the launch of the series in ago, i-FM is still the only online This document incorporates
2007 has tackled a different resource an FM needs. much of the content of Inside
issue in the FM sector; but an Out, a director's guide to FM
underlying theme throughout If you dont have access to the decision-making produced by
has been the comparatively low site - then please sign up at: (the now inactive) Action FM,
'name recognition' that www.i-FM.net/signup a 'ginger group' working for
continues to characterise improved communication and
facilities management, along collaboration within the sector.
with the associated tendency
toward under-appreciation of
the value it both represents and
contributes to UK plc.
i-FM would specifically like to acknowledge the sponsors of Workplace Futures 2011.