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INTEGRATEDFACILITY SERVICESO F F E R H O L I S T I C A P P R O A C H

JULY/AUGUST 2015 63

I n addition to managing facilities, organizations have a primary job to do: running their business. Outsourcing has long been a solution that allows organizations to

focus on their core business issues while leaving the facility services to an expert. Organizations can outsource one, some or all services that relate to running their facilities.

Those already outsourcing some services have taken the right step. However, chances are, not all their problems have disappeared — and they might not realize that there’s a better way.

Traditional outsourcing options and their inherent limitationsService-by-service: Organizations that opt for “out-tasking” individual services (e.g., electrical, energy, facilities engineering, HVAC/mechanical, janitorial, landscaping, parking or security) from several providers have the advantage of turning these tasks over to specialists.

However, this method leaves other services to deal with in-house or several provider relationships to manage, including multiple contracts, bills, risk and diversity issues, etc. A better option would be to look for a provider that can handle more than one or all services, and preferably under one contract with one point of contact.

Facility management or integrated facility management (IFM): Another option is to hire a facility management company. Normally, this means contracting with a provider that would subcontract out most or all of the services. A problem inherent with this model is the lack of control over subcontracted services, including fees added onto the subcontracts by the facility management company.

Th is option may seem to solve facility problems, but can create a mishmash of diff erent providers with diff erent work standards, values and cultures that might not match those of the organization, as well as separate

BY TONY PIUCCI

P O D C A S T

Interview with ABM’s Tony Piucci

FMJ EXTRA

C L I C K T O L I S T E N

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reporting systems and billing. Ultimately, this leads to inefficient use of human resources and difficulty in creating teamwork, because the workers will be operate in silos, performing only the services for which they each are responsible for executing.

Under this model it can be very difficult for organizations to know what is going on, especially if the facility management firm doesn’t have the technology to pull together all the disparate data, giving transparency related to all operations to the client.

The ultimate solution: Integrated facility services and self-performanceThe ultimate solution is integrated facility services (IFS), a rather new concept but one that is working well in several facility types for many different industries on local, national and global scales. IFS providers strategically direct all facility operations, self-performing most services. By eliminating or greatly minimizing subcontractors, efficiencies abound and quality standards are met across the board. The organization is still in the driver’s seat, setting the standards, seeing reports from consolidated, comprehensive data and maintaining control over who works in the facilities.

The advantages of IFS providers include having the infrastructure in place to offer:

- One purpose/vision that matches organizational culture/goals for all services across facilities

- Deep expertise across all services provided - Consistent training and processes according to industry

best practices - Flexibility to adapt staffing to business needs and cycles - Proactive initiatives, anticipating needs and preventing

problems - Sustainable, compliant practices across the board - Quality standards, accurate and benchmarked data with

detailed key performance indicators - A single technology platform to support consolidated

data, transparency and improved forecasting - Business continuity planning

Sustainability is an important part of any corporate program and with IFS, it is imbedded holistically. IFS can make LEED qualification easier to obtain and maintain. Cost also matters, and when business cycles dictate, IFS providers can manage costs down during a downturn and ramp up efficiently when business is booming. They can scale staffing and services to the needs of the business over time and extend or contract geographically as required.

Advantages of self-performanceQuality at lower cost: When nearly all services are self-performed, IFS providers spend more of their budgets on quality labor—an approach that is more efficient and delivers better quality.

- Cutting out the middleman saves money. Labor accounts for more than 70 percent of the cost of delivering facility services. By managing their own people, IFS providers keep labor costs down, ensuring that less of the maintenance budget goes toward overhead and fees.

- Organizations benefit by having well-paid people who can be deployed at the most efficient level at the point of service with the most appropriate qualifications. The IFS provider doesn’t attempt to drive down costs by purchasing low-bid services from subcontractors. Better pay means a higher-caliber workforce, delivering higher-quality service at a reduced cost.

Multi-function employees: IFS facility managers are subject matter experts on multiple functions, eliminating duplication of management. Yet cross utilization isn’t just at the management level, but at all levels — from the janitorial staff to maintenance staff and all other service personnel. This allows for efficient use of organizations’ most valuable resource: people.

Being served by well-managed people in the right jobs who feel good about their contributions and growth opportunities, IFS clients benefit in many ways from a single-team culture:

- Higher-quality work - Ease of communication - Increased productivity and reliability - Professional interaction with occupants - Reduced turnover, more familiar faces

Subcontracting only when necessary: In areas where an IFS provider does not have an established regional or branch office or local service expertise, they can subcontract through affiliated service partners. Those partners typically undergo a screening process to ensure they have appropriate insurance and licensing and have performed employee background checks.

IFS experts establish sophisticated purchasing and subcontract management systems that enable companies to procure necessary services, manage service partners effectively and save money without sacrificing quality. The performance of subcontracted services is then monitored by the IFS team to ensure that contractual requirements and standards of timeliness, quality, service and cost-effectiveness are maintained.

Diversity: A company with sophisticated IFS capabilities will make it a common practice to look for ways to include their diversity partners whenever practical or when the client’s plan blends the IFS company’s self-performed work with subcontracted services. They will identify opportunities for many minority businesses, woman-owned businesses, historically underutilized businesses zones and disadvantaged business enterprises to participate and will have already formed such alliances.