What is Facilities Management?
“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”.
(CEN the European Committee for Standardisation)
Facilities management encompasses multi-disciplinary activities within the built
environment and the management of their impact upon people and the workplace.
It contributes to the delivery of strategic and operational objectives. On a day-to day
level, effective facilities management provides a safe and efficient working
environment, which is essential to the performance of any business – whatever its size
What is at the core of Facilities Management?
"A profession that encompasses multiple
disciplines to ensure functionality of the
built environment by integrating people,
place, process and technology."
History of FM
Cost-cutting initiatives of the 1970s and 1980s led organisations began to
outsource ‘non-core’ services
Integration of the planning and management of a wide range of services both
‘hard’ (e.g. building fabric) and ‘soft’ (e.g. catering, cleaning, security,
mailroom, and health & safety) to achieve better quality and economies of
Formation of the BIFM in 1993, followed by the development of specialised
training and a qualification
Step-change with the Private Finance Initiative (now Public Private
Partnerships), becoming an integral part of large-scale projects to manage,
replace, and upgrade the country’s infrastructure and public service
facilities. This new approach was swiftly followed in the private sector and
Current Market Size
Estimates vary; market research suggests that, in the UK alone, the
sector is worth between £40bn and £95bn per annum
“We need to let more people know just how important the FM
industry is in the running of the country as well as the contribution
the FM industry makes to the UK economy. We represent £40bn in
turnover and over 500,000 employees; 5% of GDP is a significant
Chris Hoar, Chief Executive
Why do you think Facilities Management is often overlooked in the
UK Corporate Boardrooms?
The report also mentions that public expenditure, climate change and
economic growth will be amongst those with the biggest impact on the
“Some single service providers may lose share in the medium term as larger
clients seek to reduce their costs further and move toward a preference for
‘bundled service provision’.”
ISS 20:20 Vision
What is Innovation in FM?
“Innovation in facilities management is the introduction of a
new product or process, which delivers tangible and
measureable benefits in terms of operational cost reductions,
increased efficiency and optimising building usage and
It is not merely process improvements.”
Can you do better?
The “Innovation Environment”
“an external supplier might bring
innovation and efficiencies that are beyond
the scope of the existing team. They will
also be more familiar with procedures for
help desk, customer relationship
management and the handling of change
During the design stage of buildings, the
prospective accommodation is modelled to
assess its effectiveness to occupy, its
efficiency to heat, cool and light and to
gauge whether the resultant environment
will stimulate innovation and productivity
for its prospective occupants”
Some Barriers to Innovation
Finding the right partner
Lack of finance- internal & external
Lack of qualified personnel
(1). Building Information Modelling (BIM)
Co-ordination & Collaboration
Easier Maintenance of Building Lifecycle
Greater connection between building designers & end users
Greater customisation and flexibility
Easier conflict detection & resolution
Optimisation of cost
Improved asset database & understanding
GSL will be mandated in 2016 for all central government projects
(new build and large refurbishments)
(2). Space Utilisation
Greater analysis of how building
assets are being used.
Identification of cost savings as
companies downsize operations
More scientific measurements of
space utilisation, particularly in
A key driver in the design of new
properties, particularly within the
(3). Flexible Workspaces
“Hot desking” more common
More flexible shift patterns
Greater home working
Greater focus on enjoyable working environment
& the impact on businesses performance
(4). Greater Collaboration/Partnership
Private Finance Initiative (now Public Private
Partnerships) with crucial element of building life
Longer term contracts encourage investment
Shared targets and goals & reward schemes
Advantages of Longer Term Contracts
Partnership Approach & Relationship Building
Joint Goal and Target setting
Stability and reliability
Innovation in Service Delivery
Reduced Procurement costs
Flexibility in service delivery
(5). New/Enhanced Technology
More integrated Building Management
Smart Energy Meters
(6). Outcome Based Contracting
“A shift in focus from activities to results and from how a
programme operates to the good it accomplishes.”
The ‘Green Agenda’ will grow in importance in the future
Helping customers achieve their Carbon Reduction Commitments
Green Technology, such as biomass boilers, Combined Heat & Power (CHP)
Focus on Ethical Trading, Bio-diversity and Waste Management and recycling
Most significant FM Innovations?
“I think the biggest impact has been the way the new
technologies - GPS/Tablets/Social media etc. have been
utilised by different organisations to eliminate wasted
process and provide smarter service.” Martin Pickard,
FM Guru Consulting
“The biggest change for me has been the development of the
outsourced market. There are a number of suppliers in the
industry who now really understand what FM is all about and
are providing a service that matches the clients’ needs.” Julie
Kortens, Head of FM,Channel 4
“The one area which does look as if it will impact is the advent of
Building Information Management systems, albeit that these systems
are very much in the infancy and current CAFM technology is not up
to speed with it.
Iain Murray, Principle Consulting
Five Key Benefits innovation can deliver in
What can stifle innovation?
Price based procurement
Short term contracts
Lack of partnership/collaboration
Lack of internal support for FM at Senior/ Board
Being afraid to take risks
What does the future hold?
More flexible & better utilised workspaces
Buildings designed & built with greater engagement with
users and Facilities Managers
Greater outsourcing in a bundled service provisions
Greater building and asset knowledge
Greater focus on larger, leaner FM providers delivering cost
Professionally recognised “Collaborative Working”
Longer term contracts
Joint “Innovation Strategies”
So what practical steps can a UK University take in the current
climate to improve cost efficiency of their FM spend?
Cost Saving Strategies
Fix not cure
Review operational spend:
? Space Utilisation/ mothballing
? Utilities spend and enter new contract with guaranteed savings?
? Reactive spend
? Altering equipment settings
? Reduce courses and spaces
? Maintenance spec reduced ?
? Investment in Capital Expenditure Projects such as BMS, lighting, voltage
Review Operational Delivery Model:
? Worth re-procuring both Hard & Soft FM services?
? Altering of shift patterns/opening times.
? Can more services be outsourced?
? Will an integrated FM model a deliver improved costs or de-bundle
? Can the delivery be smarter? (Up-skilling people).
Exploit other revenue streams?
Attract greater numbers of foreign students to make up shortfall?
Gain rental income from buildings/sub-let?
University of Liverpool experience
The current situation
550 students down in 2012/13. 10% down
£1.6 million revenue down.
3no sites mothballed & 1no partially empty.
Refurbishment plans put on hold for halls of residences (£250,000)
Revision of capital expenditure plans
Ongoing analysis of property usage
Selling off of property to raise funds
Reduced maintenance (statutory only) on under used buildings
Targeted attraction of foreign students (Chinese)
Research the market you want to work in & seeks the views of others
Identify your personal strengths
Identify what potentially excites you about FM
Build good networks through social media & BIFM
Be different, distinctive & sell yourselves, “what benefits could you
bring to an organisation”
And finally “persevere lad…. you’ll get there.”
Take the knocks
And Finally……Do keep in touch