TOTAL FM NIGHTMARE? ces, analyses the complexities of Total FM contracts.
and capabilities, merged together effectively by technology, process and procedure; all of which has been sophisticatedly tuned to the specific client business drivers’ objectives and needs.
If any element of this is not correctly positioned, then the overall platform will not be mature enough to be Total FM and, therefore, will operate as an out tasked contract.
The outsourcing outcome is very much determined during the transition and transformation activities that take place quickly after the initial engagement of the contractor. Transition being the point at which what is being done today (FM platform) is inherited by the contractor, and transformation being the changing of that platform to Total FM. Invariably, this requires change for both the client and the contractor with a cost of between 2-5% of the first year’s contractual value (dependent on the level of change necessary).
Assurance being the measure that determines whether the FM platform is outsourced or out tasked is therefore the trigger that will determine whether or not it is utopia or a nightmare. Where it is a nightmare, very quickly the client assumes an intrusive and investigative governance stance (at additional cost to them) and by doing so seizes back the assurance reigns; the contractor then reverts to merely reacting to the client’s directions.
The challenge is knowing whether or not it is a utopia or nightmare. When Total FM is deployed correctly, the client invariably retains only enough resources to manage the demand of its own business (user or client relationship management) and to provide a managerial interface for the contractor; perhaps some functional capabilities are also retained for governance purposes.
Therefore, following transition, the client becomes wholly dependent on the information being provided to them from the contractor, or feedback from their business users. A difference between the user feedback and the Management Information (MI), or where the MI is immature, or where innovations are scarce, or where strategy is not being informed due to a lack of viable MI, is a fair indication of the nightmare.
At which point, deploying more intrusive and investigative methods the client quickly realises that the contractor has been operating as an out tasked provider. The choice is either to re-engineer the FM platform and try to realise the original expectations with the contractor, or revert fully to an out tasked model by insourcing assurance.
Today, our experience would suggest that there is more assurance insourcing than outsourcing.
www.opale.co.uk www.tomorrowsfm.com TOMORROW’S FM | 55
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