Balancing in-house teams and out-tasking partners often leads to inefficiencies and hidden costs. Discover facilities management options to integrate your hard & soft FM tasks.
What Type of Facilities Do You Manage?
Six Reasons Building Owners Choose IFM to Consolidate FM Services
Rising costs, siloed data, and the overhead of overseeing multiple service contracts are the main reasons property owners consolidate their facilities management under one provider.
Rather than juggling separate suppliers for cleaning, catering, maintenance, and security, an Integrated Facilities Management model brings them together for reduced contractor costs, simpler task assignment, less day-to-day complexity, seamless data sharing, and a more consistent standard of service.
This shift is driven by connected technologies, notably the Internet of Things (IoT), and Computer-Aided Facility Management (CAFM) Software, which make consolidating and coordinating FM services far more manageable, and it’s happening at scale.
There are six benefits that stand out when choosing an IFM approach:
1. Fewer People in the Decision-Making Process
With one provider handling all service-led decisions, there’s no back-and-forth across multiple suppliers and contractors, so decisions get made faster. That also cuts delays to building maintenance and improves the amenities offered to occupants, increasing workplace well-being.
Video: Head of Workspace Solutions, Laura Wright, talks about the challenges faced when using various tools such as IWMS and spreadsheets as opposed to having an all-in-one CAFM solution.
2. A Single Source of Truth
Even where services are still subcontracted to specialists, you (the facility manager) see everything in one place, much like a CAFM system works. Instead of tracking multiple suppliers separately, you get a single, comprehensive view of scheduling, service level agreements (SLAs), costs, and service detail across the estate.
3. Standardised Quality of Service
With every service covered by the same provider, expectations are set once and met consistently across the board, from catering and cleaning to maintenance and landscaping. Tarniah Thompson, Head of FM and Sustainability at SHW, delivers FM services to the Crown Estate. She explains that communication is what holds that consistency together:
“There are four main pillars in facilities management, which are people, processes, buildings (or the portfolio) and technology. And once you’re communicating in each of those pillars, I think it builds for good facilities management culture.”
4. Access to Industry-Leading Technology
With IFM, you get the latest FM technology without buying or maintaining it yourself. Upfront costs are higher, but providers typically bring IoT sensors, energy management trackers, and software platforms, and apply them to your building. That helps you move toward a smart-building approach without the capital outlay.
5. Fewer Property Management Risks to Track
An IFM provider takes on the workplace risks you would otherwise track yourself, across health and safety, compliance, SLA performance, and emergency preparedness. Its expertise and experience mitigate those risks more effectively than managing them piecemeal.
6. Lower Costs in the Long Term
Over time, an IFM arrangement makes FM costs easier to control. In-house or outsourced, FM costs mount up: ad-hoc contracts, emergency call-outs, variable contractor rates, and hardware purchases. IFM typically works on a single upfront payment, steep at first, followed by predictable monthly payments that fold in all FM processes and risks.
Shortlist Facilities Management Options For Managing Your Hard and Soft FM Services
What Type of Facilities Do You Manage?
How Does IFM Compare to Other FM Service Strategies?
While integrated facilities management offers a variety of top-level benefits, other strategic approaches replicate different levels of facility management. Most notably, two FM strategies remain popular among facility managers and property owners; in-house and out-tasked.
The latter being the most popular, with more than 50% of FM tasks being outsourced in regions including Europe, the Middle East, and North America.
Source: Six emerging trends in facilities management sourcing, McKinsey.com
In-House FM: In-house facilities management is typically a good starting point for facility managers who operate on one or two floors in a building or manage small properties. Keeping FM services in-house enables more direct control over hiring contractors, payments, and scheduling.
Out-Tasked FM/Outsourcing FM: Choosing to outsource FM tasks works well for a variety of property sizes, from office floors to multi-site warehouses. Outsourcing hard and soft FM services allows facility managers to select particular service providers for various tasks while retaining control over hiring, costs, and timings.
Strategy | Advantages | Disadvantages |
|---|---|---|
| In-House |
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| Out-Tasked |
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| Integrated |
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Factors That Demonstrate Why IFM Isn’t For Everyone
As with all deployments of new systems and approaches, there are important factors to consider. In terms of an integrated facilities management approach, there are 4:
- Budget: Although cost-effective in the long run, the high up-front costs will be a concern for property owners working with a small budget.
- Property: The size and operational function of a property will determine the best approach to managing facility management services. For instance, a small office space or a floor within a residential building can be managed through in-house or out-tasked strategies and operate to a minimum budget.
- Self-assurance: If a property manager is confident in their ability to manage multiple contractors and has the time to schedule, communicate, and finance a building’s FM tasks, then relinquishing control to a single provider may not be on their radar.
- Access to Technology: With affordable software systems being made more readily available, building owners have the budget to implement them and hand over the reins to facility managers. CAFM systems in particular have the features to work with IoT devices and provide FMs with unique building insights.
What’s the Difference Between IFM and Total Facilities Management (TFM)?
IFM and TFM are two concepts that are often used interchangeably, but there are differences:
IFM is the approach taken to combine all facility management services under one provider. That typically includes all hard and soft FM services.
TFM combines all aspects of facilities management. This means on top of the typical FM services of maintenance, cleaning, catering, security, and space management, it also incorporates strategic planning, real-estate portfolio management, building design, and more. Total facility management is aimed at organisations that believe facilities to be an integral part of meeting goals and objectives.