Facilities Management In Action
– Best Ways To Optimise Service Operations
The rapid growth in the facilities management (FM) market around the world sees no signs of slowing, but to take full advantage FM companies need to harness the potential of trends, challenges and macro changes that are currently impacting the industry.
Most prominent among these changes is the adoption of hybrid working and having to deal with a workforce that has become distributed. Many companies are scaling back their headquarters operations, while others are increasing the volume of satellite operations in locations closer to those of their employees, where staff can meet and collaborate in person.
Secondly, customers are changing behaviour and demanding more. They are increasingly looking for outcome‑based contracts that offer defined end results and guaranteed solutions to problems rather than traditional ones that simply deliver a service.
Thirdly, as the workforce ages and gets smaller, many facilities management teams lack the workers and skills they need. Subcontractors can fill specific gaps, but their use can be costly and result in inefficiencies. Additionally, subcontractors sometimes fail to deliver the same quality of service as the organisation’s own field engineers.
Lastly, there is pressure on facilities management companies to reduce the environmental emissions and waste generated in the buildings they look after today. According to research by Frost & Sullivan, 40% of CO2 emissions, 75% of electricity consumption and around 35% of waste production comes from our creation and use of buildings. There is likely to be more enforcement of sustainability policies in the future, and while this is partially driven by legislation, competition is also playing a role and companies who demonstrate credible Environmental, Social and Governance (ESG) performance can expect to win more business going forward.
Searching For A Solution
Given this growing list of challenges ramping up for FM companies, the industry is increasingly coming to terms with these and addressing them through a series of interlinked solutions.
In terms of hybrid working, FM companies need to appreciate changing demand for services. With peaks and valleys in workplace utilisation, scheduled services are becoming less profitable, and FM companies should consider a more on‑demand service model.
One way to support building efficiency is through predictive maintenance. By integrating IoT, data analytics and AI/ML with a field service management software platform, FM companies can anticipate service issues and avoid unnecessary onsite visits. This also improves sustainability, builds efficiency and increases profitability.
Full asset lifecycle support is one approach to cater to outcome‑based contracts. Outcome‑based performance contacts concentrate on value and outcome delivered over an asset’s lifecycle. For example, maintaining the temperate of an office building at a comfortable 72 degrees, whenever the building is occupied.
To deliver on this promise, FM companies need to be able to configure contracts to account for all the service tasks, resources, and processes that make the outcome possible over the asset’s lifecycle.
To address skills shortages, FM companies can drive customer self‑service. Building on this, FM companies can create AI‑powered virtual agents to support this goal.
Finally, in terms of sustainability, we are witnessing facilities management providers looking to cloud‑based technology to help them understand whole‑life costs and manage and model complex projects and built assets in the most sustainable way. Allied to this is the increasing adoption of sensors to provide real‑time data to ensure heating, ventilation and air conditioning (HVAC) systems are operating effectively and efficiently.
Looking Ahead
Despite increasing demand for services, there are a number of issues that facilities management companies need to solve. Fortunately, we are seeing new tools coming to the market that can address all of these challenges, thereby giving firms the ability to meet and exceed changing customer expectations and continue the path of growth.
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