A Brief Introduction to Facilities Management
What is FM?
Every organisation relies on a mix of functions and services to provide the support essential to its core business operations. Ensuring that this support is available in the right form, at the right quality and for the right cost is the task of facilities management.
In essence, FM is about taking control, freeing organisations to do what they do best while the facilities managers take care of the rest.
In practice, FM has proved notoriously difficult to define over the years. However, clarity is being brought to this by the development of recognised standards, a process that has been underway for some time. The latest ISO standards offer this:
Facility management (facilities management, FM) is an organizational function which integrates people, place and process within the built environment with the purpose of improving the quality of life of people and the productivity of the core business.
At the beginning of the 21st Century, with its climate of continuous change in business and technology, and the consequent emphasis on effective utilisation of all corporate resources, facilities management (regardless of the precise definition!) has emerged as an important business discipline. With this has come greater professionalism - and a wider range of choice in how specific functions and services are secured.
Sourcing facilities services
One of the FM's primary responsibilities is providing and managing a variety of services to his or her 'customers', that is, the employees within the organisation. These services span the range from security and M&E, through cleaning and catering, to plants and landscaping. Increasingly, such services are outsourced; in other words, purchased from and delivered by external suppliers – a practice that has grown and developed in parallel with the rise of FM.
From a starting point of single-purpose contracts (typically, maintenance, cleaning or security), each handled by a specialist supplier, the outsourcing concept broadened over the years to encompass 'bundles' of services put in the hands of a multi-discipline contractor. Subsequently, contractors - especially the larger ones - sought to bring diverse service lines together in 'integrated' packages, promising greater efficiencies and reduced management costs.
Alternative service supply solutions are offered by a number of FM providers who focus specifically on the management of services that are delivered by sub-contractors – but this once-common approach (the 'managing agent' model) has become less so as many of these specialists have either diversified their skill base or been bought by ambitious contractors. 'Total facilities management' (TFM) is another alternative, in which the provider takes on responsibility for the delivery and management of all required service lines. TFM solutions can be sourced from FM specialists or from diversified contractors, who will generally meet as much of the need as possible from their own resources. More comprehensive still is the solution offered by a few outsourcing providers who combine expertise in both FM and property.
It is impossible to generalise about the 'best' solution for the supply and management of business support services. That can only be defined in terms of a specific client organisation.
How big is the market?
Just as it is difficult to define precisely what FM means, putting a firm value on the size of the UK market is a challenge.
In past years, estimates have varied over the years from more than £10bn, through £16bn and £117bn to £173bn. Much of this variation has to do with the definitions being used. These days the most commonly quoted figures are in the region of £110bn to £120bn.
The only definite conclusion to be drawn from available research is that the facilities sector in the UK is a large and dynamic marketplace.
The i-FM Top 50, our rankings of the leading facilities companies in the UK, accounts for a total turnover of about £17bn and a total employment roll of well over 450,000.
Sources of information
To find out more about who FMs are, what they do and how they rate their priorities, have a look at some of the reports on our Research pages.
To find out more about the structure of the FM marketplace and how it is changing, read our latest Trends & Opportunities Report.
To find out more about the leading players in the market, go to the i-FM Top 50.
To find out more about a specific organisation or a particular topic, use the search engine accessible from our front page.