integrated facilities management - do we really apprehend it as it should be ?


What is Facility Management? Facility management is a profession that encompasses multiple disciplines to

ensure functionality of the built environment by integrating people, place, process and technology.

Facilities management is the integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities”.

Facilities management encompasses multi-disciplinary activities within the built environment and the management of their impact upon people and the workplace.

Facility Management is the means of guiding an enterprise through its actions to its chosen Future. In simple terms, the aim of a Facilities Management is to achieve a strategic fit between core business needs and the provision of facilities management and physical infrastructure.


Facilities Management TodayThe FM sector is now large and complex, comprising a mix of in-house departments, specialist contractors, large multi-service companies, and consortia delivering the full range of design, build, finance and management.


Looking to the future of Facilities ManagementIntegrated services that make all the difference. Going Global with the next generation of integrated Facilities Management Services

Integrated Facility ManagementIntegrated Facility Management is a method of more clearly linking the FM service to the organization’s strategy. Integrated FM covers; the facility goals, needs and priorities; the FM plans, funding sources and performance measures and the enabling functions of FM systems, structures and processes

Integrated Facility Management is a way of more clearly

linking the FM service to the organization’s strategy


Drivers for FM IntegrationThere is an increasing need for an Integrated FM approach following the increasing complexity of the FM operating environment due to factors such as: Number of management layers, where (in an IFMA study1) around 40% of

FM departments had 4 or more layers

Two-thirds (64%) of FM departments use a functional design, which means they are organized according to the types of services being offered, such as engineering, property management, Food services, security, Transport and Soft Services etc.,.

increased spans of management control, where the ratio of managers to staff can be up to 1 to 15

A modern FM service requires effective integration of activities to cope with increasing service complexity, maximize coordination and demonstrate service value for money


Serving Client Needs

Client needs from the FM service are frequently around:

Service costs

Asset optimization

Service satisfaction

While these needs and priorities are often clear at an executive level, conflicting needs often appear at lower levels of the client organization, which again can increase the complexity of the FM service delivery environment.

Client needs relate frequently to service costs, asset optimization and service satisfaction


The Integrated Service Delivery Model – SampleThe service delivery model intention is to control service complexity, by providing specific stages and frameworks for the service delivery.

The key outputs in model are geared to meeting the FM strategy and service targets and cover:

1) Service Level Agreements to summarize client needs2) Standard Operating Procedures to deliver the services3) KPIs to set the and manage the performance targets4) Continuous Improvement programs to meet and exceed the targets

1Discuss Needs

_______________Call Service Provider to see whether they can Help You

2Draft Scope

_______________Develop a Draft Scope with all requirements to review

3Confirm Scope

_______________Review, Discuss and Finalize the Scope

4Go for RFP

_______________Request for Proposal from eligible Service Providers

5Approve &

Finalize_______________Award the Contract and Go Live IFM


Scope


KRAThe role of facilities

management

Strategy and policy development

Leadership and management

Business continuity

and compliance

Business support services

management

KPI

Sector KnowledgeInformation Andknowledge management

Facilities management strategy Corporate social responsibilityFacilities management policy

Project management People management Change management

Risk management Compliance

Service innovationandManaging service delivery

KRAProperty Portfolio

Management

Quality Management and Customer Service

Finance and ITProcurement and Contract management

Sustainability

KPI

Building maintenanceProperty and asset managementSpace management

Customer serviceStakeholder relationships Quality management

Financial managementInformation technology

ProcurementContract management

Energy managementEnvironmental management

“Trust But Measure” – You can’t Manage what You can’t Measure


Benefits of Integrated Facility ManagementIntegrated FM helps the FM organization achieve service excellence by meeting client needs and priorities (for service effectiveness) and matching resources and costs to strategies and targets (for service efficiency).

The FM service delivery model designs: What services service provider have to deliver; and How he will deliver

them The performance measures within the integrated model communicate how

well service provider are providing the service and how can further improve the service.

Overall, integrated FM ensures the benefits of optimal FM service through better design, linkage and implementation of the plans, processes and targets that meet the client’s FM strategy.

The key outputs in the Service Delivery Model are geared to meeting the FM strategy and service targets; via SLA’s, SOPs, KPIs and Continuous Improvement


Concerns of Integrated Facilities ManagementFear of Failure: Decision-makers hear examples of integrated facilities management failing due to poor performance, assets failure, or cultural rejection from stakeholders used to managing these services in-house.

Losing Control: A perception of a loss of control causes decision-makers to feel exposed to greater risk than necessary. Having a third party manage services providers seems risky, but in actuality, service level agreements and performance expectations are more specific and detailed than when these services are managed in-house, because the risk of poor performance is carried by the third-party supplier.

Commercial Risk: A fundamental concern is that customers will pay more by having a third party manage their service provider network. These concerns include a more complicated invoicing process, higher rate cards, a

mark-up for providing service, and higher costs.


Mitigating Concerns of Integrated Facilities Management

•Insurance: IFM suppliers require all service providers in their network to carry minimum insurance coverage. This provides protection from poor performance by small service providers like plumbers or electricians.

•Audit: IFM contracts tend to be based on gain share revenue models, which incentivize the IFM supplier to provide invoice and work order auditing, an area where most organizations apply little effort.

•Service Level Agreements: Since an IFM supplier’s job is to manage service providers’ performance, as they are tied to commercial incentives, they manage them with greater scrutiny than organizations do directly.

•Technology: IFM suppliers bring compliance metrics and reporting capabilities that drive decision making on asset repair / replacement options normally requiring significant capital investment. In addition, spend visibility and ability to forecast repair and maintenance costs is an issue that IFM programs solve.

•Savings: An IFM supplier leverages a large network of local service providers to deliver performance according to their customers’ SLAs, and they can achieve this at a lower cost more efficiently by aggregating volume.

•Best practice: IFM suppliers work across multiple customers in multiple industries, developing lessons learned and best practices that can be redeployed to mutual benefit.

•Performance: Increased equipment uptime and reduction in reactive maintenance cost through a planned maintenance program is a further benefit of an IFM program.


In summary...At the end of the day, Integrated FM is a label that covers a particular type of arrangement - single-point responsibility - and one that has been inappropriately applied by many owners. If Integrated FM has been chosen for the wrong reasons it is not the fault of the contractor; alternatively, it does not make sense to argue that “ IFM works perfectly well under the right circumstances”: that is true of just about anything. For many owners, IFM has not lived up to its promise, because expectations were unrealistic in the first place. The idea of a one-stop shop to suit every owner's needs is a tall order and one that faces stiff competition from other forms of procurement.

The journey to IFM can take an organization 18–36 months. A successful Integrated Facilities Management program focuses on total cost of ownership, risk management, supplier performance management, and continuous process improvement for all facilities within an enterprise. Organizations can mitigate risks and minimize variability in service quality and delivery by partnering with the right IFM supplier and structuring an IFM contract that incentivizes both parties to achieve success.


Thank You

integrated facilities management - do we really apprehend it as it should be ?

Leadership & Management