4 partnership models to consider when outsourcing Facility Management

Different businesses try to solve different things when outsourcing Facility Management. So which Facility Management partnership model can best help you achieve key business outcomes? 

While some businesses put major emphasis on user-centricity and service personalization, others are more concerned with transparent and strandardised Facility Management governance frameworks that can unify the service delivery outcomes cross-sites.

Finding the best way to reach your business outcomes through a Facility Management partnership can be a complex process.

The four worlds of service model

Use the framework below, to understand the four worlds of service in FM, the shift taking place towards 2020 and orientate towards which partnership model is the right fit for your business.

The four worlds of service model has two axis. The value dimension and the delivery dimension.

The value dimension: At one extreme is business efficiency, mainly concerned with efficient management of infrastructure and assets. The other extreme is concerned with business innovation outcomes. Service here is linked more directly to business outcomes, added value and strategic goals.

The delivery dimension: One-to-one personalisation aiming at meeting distinct business challenges and needs of a client with tailored solutions, make up one extreme of this dimension. The second extreme is mass customization, where ready-to-use services and short implementation is the norm.

Combining these two axes creates a framework that describes four different worlds of service or in a broader sense 4 types of partnerships that you as a client can build and focus on with your outsourcing partner:

Management

Achieving FM efficiency in a customized environment depends on adopting best practices and optimizing processes or exploiting the scale that a Facility Management partner can provide.  These are one-to-one engagements focused on predictable pricing. A key outcome of management services is the efficient management of custom FM solutions.

Maintenance

The use of standardized FM solutions has major advantages. Standardisation in FM grows efficiency through scalability, enables automation and allows for pay-per-use pricing. Furthermore, standardized solutions can deliver cost savings through economies of scale.  In those partnership models, a key outcome of maintenance services is leveraging efficient large-scale, mass-customised infrastructure services and utilities.

Optimization

This is an emerging and hybrid partnership model in FM outsourcing. It focuses on gaining business improvement through efficiency, speed and agility by leveraging FM services and solutions in a shared environment. These are one-to-many or many-to-many relationships with payment tied to business transactions. A key outcome is the optimization of FM solutions and business processes through a network of best possible FM providers.

Transformation

This partnership model in FM outsourcing focuses on creating, designing and supporting a unique solution so highly customised that the business process is, transformed. These are one-to-one relationships with payment tied to achieving and supporting business goals; an outcome-based, performance-oriented payment model. A key outcome of transformation services is the development of highly customised FM solutions and business processes. FM outsourcing will move towards transformation services that redefine and shape business outcomes, cultural change, and attraction of new skills within organisations; away from the traditional focus on cost reductions, which has blinded senior business executives to FM’s strategic potential.

 

Related articles