by Brianna Crandall — December 1, 2014—Recent research from the U.K.’s Royal Institution of Chartered Surveyors (RICS) suggests that U.K. businesses could be losing out on savings of nearly £1 billion as a result of their failure to adopt a more effective approach to facilities management.
RICS’ research found that around 26% of organizations in the U.K. are still not taking a strategic approach when it comes to FM — a business discipline that involves the coordination of space, people, resources and property within an organization. It suggests that those organizations using FM in a strategic capacity could be saving themselves as much as £120,000 on average.
As a result of these findings, RICS suggests that a reluctance to invest in and embed a dedicated FM program within an organization — known as “strategic FM” — means that many businesses and public sector organizations could be missing out on huge cost saving opportunities.
The research, conducted with 707 small, medium and large organizations from across the public (203) and private sectors (504), also shows the positive impact strategic FM has on organizations that already adopt the approach. Half of those interviewed from the latter group said that it has saved their organization money — with many of those in the private sector reporting the positive impact it has had on their profitability (39%) and turnover (48%).
In addition, of those questioned who use strategic FM, three in five (59%) said that their organization had seen an increase in overall productivity, with 49% saying that the attractiveness of their organization to clients or customers had been boosted by it. Moreover, around a fifth (21%) said that employee absence in their organization had decreased as a result of SFM.
Of those questioned specifically in the government sector, the tangible benefits of a more strategic approach to FM were even higher, with 70% of those respondents that use SFM saying that they had seen an overall increase in productivity, with a further 71% stating that they had also seen an increase in employee engagement.
RICS says that the research makes it clear that recognizing FM as a strategic discipline has the ability to bring about “huge” tangible business benefits for organizations of all shapes, sizes and sectors. With nearly £1 billion being wasted by those organizations without SFM in place, the group’s research clearly demonstrates that more needs to be done to get leaders in the private and public sectors on board with the new approach.
To support professionals in developing SFM in their own organization, RICS has developed a valuable suite of information, resources and services that includes its recently launched Strategic Facilities Management guidance booklet and accompanying Case Studies booklet. RICS is also promoting professionalism in the FM sector through its Chartered Facilities Management Surveyor (MRICS) and Associate (AssocRICS) qualifications.
RICS’ top five tips for strategic FM:
- Be fully aware of the organization’s overall mission statement and business objectives in order to develop a strategic FM approach that supports in their delivery.
- Put measures in place to capture accurate data that will enhance strategic FM decision making — data on operating costs, repair costs, utilization levels and environmental performance are key.
- Represent FM at a strategic level when organizational policies and frameworks are being developed — this will ensure that the right facilities can be provided in the right locations at the right cost and quality, supporting organizations in meeting key objectives.
- Use internal communications networks to get a view of the operational requirements of the organization and build relationships with key operational managers who can help deliver an effective FM strategy.
- Access the abundant resources, information and qualifications that are available for professionalizing FM and enhancing its vital importance as a strategic discipline.
