How to move up the ladder fast as an emerging FM company

We're not going to see as many FM companies (at least not at the top) in the next five to ten years as we see now. Yes, it's very likely.

I came across an interesting finding in recent times that the lifespan of a company on the S&P 500 list has consistently gotten shorter over the last 50-60 years.

• 52% of the S&P 500 companies have gone bankrupt in the last 15 years.
• The average lifespan of the S&P 500 in 1955 was 61 years.
• In 2015, it was reduced to 17 years, a considerable and dramatic reduction. And it's expected to drop even further in the future.

In this article, I will highlight some of the lessons that progressive FM companies can take from how the S&P 500 has performed over time. We'll look at it from the perspective of an emerging and progressing FM company, rather than one that is already at the top of the charts.

Those FM companies that are young, have been there for a bit less time than some of the incumbents, and are also young in terms of the spirit that they bring on board. At the same time, they are dynamic, and they want to take the lead in the market, figuring out how to be at the top of the spectrum rather than remaining at the middle or bottom of the spectrum.

There’s a huge opportunity for CXOs at emerging FM companies to rise to the top as places open up for them to fill and capture the market. However, in order to take that space, you must act quickly. There is no way you wake up all of a sudden and announce that there is a space unfilled there, and this is a place that's going to be filled by our company.

Four things you'd want to do now as CXO at an emerging FM company

1. Establish a niche

It's extremely crucial for you to establish a niche. Different FM companies operate in different sectors; some specialize in healthcare, while others specialize in public office buildings, residential towers, or a combination of properties. Almost all FM companies are attempting to operate over many spectrums. As a result, it is critical that you create and deeply root yourself in one of the niches. It will be difficult, but it will provide you with a different Value Proposition Canvas than some of your competitors, and you will be able to expand upon your IP over there at the same time.

2. Focus more on Hard Services

The value of a building is determined by both hard and soft services, and it cannot be simply determined by soft services such as cleaning because this would make it extremely difficult for you to thrive.

To boost the value of your buildings, you must transition to hard services such as engineering services. And when you take that step, technology plays a significant role.

Hard services are still the most underdeveloped branch of FM services. A significant shift is required. It is critical that rising FM companies understand this if they are to push deep into hard services. You'd have to accomplish it in a way that hasn't been done before in the usual business context. So, if you begin your hard services area and grow it in the same way that an incumbent FM player did 10-20 years ago, you're already on an irreversible path. You won't be able to undo that. Instead of moving forward, you're actually moving backward. This leads us to our next point.

3. Determine your technology stack

In order to stay ahead of your competitors, determining your technology stack and moving toward Digital transformation is crucial.

But this must begin immediately. During a discussion with the general manager at one of the Middle East's leading FM companies, I asked when they would like their tech stack to be delivered.

He replied that the right time was yesterday ??

And that is exactly how FM companies must respond because they are already late, and with each passing day, you are not simply getting delayed by a day. There's a compounding effect that occurs as a consequence of the fast movement happening within the sector.

4. Improve your facilities-to-workforce ratio

Set a goal of increasing the number of facilities you manage in relation to the number of employees you have. My advice is to go ahead and take the bold strategy of doubling it. Suppose, if you are managing 10 facilities and have a thousand-strong facilities workforce.

Your current ratio is 1:10, but you should consider doubling it. Moving forward, you can have 20-30 facilities for the same workforce while only increasing your workforce by 20-25%. The idea is not to cut the current workforce but instead look at two other aspects, which are upskilling and hiring the next generation workforce.

So effectively, you're increasing your workforce capacity, but at the same time, you're catering to additional facilities. And when you do that, your chances of landing a spot on the top 20-25 FM companies increase. In the next three to five years, some of the top companies in the facility management industry will no longer hold their positions. When that slot becomes available, you will have the opportunity to make it yours. If you do not act immediately, the opportunity to fill that position will be lost.

I would like to know your opinion on how emerging companies can make it to the top and what strategies you have applied for your company. Let me know in the comment section.

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