“5 Reasons Why Your Organisation Needs an Independent Audit of its Facilities Management Service!”

Facilities management plays a crucial role in ensuring the smooth operation of an organisation’s physical infrastructure. These services are responsible for a wide range of activities, from ensuring that buildings and equipment are well-maintained to managing the security and safety of the premises.

However, despite their importance, facilities management is only sometimes held accountable for their actions. This is where an independent audit can help.

Here are five reasons why an organisation should independently audit its facilities management service.

1. Ensuring compliance with regulations

Facilities management contractors are subject to various regulations, including health and safety regulations, environmental regulations, and building codes. An independent audit can help ensure that the contractor complies with these regulations. This is particularly important for organisations in heavily regulated industries, such as healthcare, pharmaceuticals, and manufacturing.

2. Identifying areas for improvement

An independent audit can help to identify areas where the facilities management team could improve its performance. For example, the audit may highlight areas where maintenance is not regularly carried out or security measures need to be improved. By identifying these areas for improvement, the organisation can work with the contractor to develop a plan to address them.

3. Mitigating risk

Facilities management contractors are often responsible for securing an organization’s premises. An independent audit can help to identify areas where the contractor’s security measures may be inadequate, such as insufficient CCTV coverage or ineffective access control systems. The organisation can mitigate the risk of theft, vandalism, or other security breaches by addressing these issues.

4. Improving efficiency

An independent audit can help to identify inefficiencies in the facilities management processes. For example, the audit may reveal that specific maintenance tasks are being carried out too frequently or that equipment is being replaced more often than necessary. By identifying these inefficiencies, the organisation can work with a consultant to develop a more efficient and cost-effective maintenance plan.

5. Demonstrating accountability

Finally, an independent audit can help to demonstrate accountability. By conducting an audit of its facilities management, the organisation shows that it takes its responsibilities seriously and is committed to ensuring its facilities are well-maintained and secure. This can be particularly important for organisations that operate in industries where trust and transparency are essential, such as finance or healthcare.

In conclusion, an independent audit of a facilities management team or contractor can benefit an organisation. From ensuring compliance with regulations to identifying areas for improvement and mitigating risk, an independent audit can help to improve efficiency, demonstrate accountability, and, ultimately, protect an organisation’s reputation.

TFM Challenges v The IFM model

The Facilities Management (FM) sector is a rapidly growing industry, with forecasts predicting it will reach over ￡25 billion by 2023.

As such, the demand for bundled service and Total Facilities Management (TFM) contracts has increased significantly. However, while the TFM model has been popular, some challenges must be addressed to ensure it continues providing the value and innovation clients expect from an outsourcer.

One of the TFM model’s main benefits is its simplicity and efficiency, as clients don’t have to manage multiple single service lines. Instead, they receive all the services they need in one package, delivered by exceptional people and through innovative technologies.

However, this model can result in suppliers competing to win tenders, which may only sometimes meet a high level of service. As a result, clients may not receive the expected value, and suppliers may need help to provide the necessary innovation and added value.

To address these challenges, the FM industry is moving towards Integrated Facilities Management (IFM) underpinned by technology. With IFM, clients benefit from a single cohesive management team across all delivery areas, backed up by common and integrated technology platforms.

This enables clients to operate lean and efficient structures, supported by comprehensive reporting and overseeing solutions that deliver the most efficient Total Cost of Ownership.

IFM also delivers an optimised structure with the cost benefits of self-delivery services where appropriate, alongside the use of specialist sub-contractors to ensure the best service for the client.

This approach drives greater cost efficiency and provides robust performance management capabilities, with greater, technology-enabled insight supporting strategic decision-making or capability development.

However, the challenges of implementing bundled solutions must be addressed. For instance, if the solution fails to meet either party's expectations, it could result in issues where expectations need to be aligned.

Similarly, a poorly structured procurement process focusing on driving down supplier pricing rather than looking at the Total Cost of Ownership of Facilities will almost always result in a poorly executed contract with limited partnership and no ability to deliver appropriate performance across service lines.

These challenges can be addressed by engaging with suppliers early pre-tender, allowing them to bring innovative solutions that sustainably meet those needs. Properly considering and managing risk at the tender stage can also help to reduce the risk to both customer and supplier and ensure expectations are aligned.

The world of FM is changing rapidly, and advanced technologies like Artificial Intelligence (AI), the Internet of Things (IoT), and robotics are increasingly crucial in delivering outsourcing services. Embedding these technologies within an IFM contract can provide better insight, which can be acted upon to deploy resources more effectively, whether it is being more responsive to issues or creating efficiencies such as operating a ‘cleaning-on-demand’ model.

In summary, the FM industry is moving towards Integrated Facilities Management underpinned by technology as the preferred outsourcing solution. This model provides a single cohesive management team backed by common and integrated technology platforms across all delivery areas.

Clients can benefit from greater cost efficiency and robust performance management capabilities by addressing the challenges of implementing bundled solutions. Advanced technologies like AI, IoT, and robotics are playing an increasingly important role in how outsourcing services are delivered, and embedding these technologies within an IFM contract can provide better insight, which can be acted upon to deploy resources more effectively.

The future of outsourcing is here, and it is called Integrated Facilities Management.

The FM Consultants’ view:

When considering growth projections for the Facilities Management (FM) sector, it’s important to distinguish between overall economic growth and growth specifically within the industry. The FM sector tends to reflect growth in new building construction, which naturally leads to increased FM requirements.

However, the sector must outstrip general economic trends to see a real increase in outsourced FM services. This is where the TFM (Total Facilities Management) model comes into play, favoured by multi-service outsourcers due to its efficiency and profitability. While outsourcing has its benefits, implementing a TFM model poses unique challenges.

The biggest hurdles include delivering a seamless, integrated service, ensuring differentiated service by location or service line, and avoiding supplier complacency. Despite these challenges, TFM delivery remains an attractive option for clients seeking ease, efficiency, and value for money, and effective KPIs can help ensure success in TFM service delivery.

Is Total Facilities Management (TFM) Right for My Organisation?

“Total Facilities Management (TFM) has long been seen as the best choice for most businesses looking to outsource their whole FM provision”

Whether managing a single building or a large organisation with multiple sites, TFM is designed to reduce the customer’s management burden by giving them a single point of contact for their maintenance, cleaning, security and other services.

TFM is designed to reduce the management burden for businesses by providing a single point of contact for maintenance, cleaning, security, and other services. This is especially beneficial for businesses managing multiple sites.

But is this really a one-size-fits-all solution?

What are the benefits of Total Facilities Management?

Managing individual contracts is a huge management burden for any business that needs FM services.

Most FM providers are specialists, so you might have a?separate company for security, cleaning and catering, or hard FM services like building fabric and maintenance.

These contracts all require monitoring, reporting and feedback. TFM has remained such an attractive approach because it reduces this management burden and, hopefully, means you get a more consistent service overall.

Are there disadvantages to TFM?

On paper, it’s hard to dispute TFM as anything but the best solution for most businesses. Still, there are a few disadvantages which have driven many companies to break their FM contracts down into ‘bundled services’ or even individual provisions:

• ?TFM procurement is a large, complex process that can take years to complete and isn’t easy to back out of.
• Making these contracts successful requires a lot of resources to foster effective partnerships.
• Complacency on both sides of the partnership can become a serious problem – the provider might only be aiming to pass the low bar of ‘not being bad enough to force you back into procurement.’
• The provider may have taken on many smaller companies without true integration in data, organisation and working practice.
• You might see big differences in quality between different arms of the provider and even regionally.
• The contract cost is typically far higher than if you found individual specialist companies.

Careful Consideration

In a recent webinar Liam Porter, Head of FM and Project Delivery for Virgin Media O2, said:

“Just because you are an FTSE 100 company, it doesn’t mean you have to go for TFM. Look at the size and complexity of your estate. Outside advice and expertise are critical for this process.”

A successful FM provision depends on so many factors that no silver bullet solution exists.

For some companies, TFM will be the best fit. Still, other options exist, such as ‘bundled services’ that work like much smaller TFM contracts for specific areas such as cleaning and security or maintenance and building fabric.

It’s the partnership

Consultation from the beginning, particularly with an expert outside consultant, will ensure you start your procurement process on the right footing.

FM contracts live and die on the strength of the partnership between the client and provider. Transparency, accountability, useful data and a willingness to work together towards aligned goals will ensure you get the most value for money and the best service possible.

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