much needed revenue.
The only issue with the BSA is that it covers a much wider range of
services than true Facilities Management, including construction,
which understandably skews the remit of the organisation and the
areas that it is focusing on.
Two years ago, Julie Kortens, ex Channel 4 FM, tried to get some
momentum for an FM trade body using BREXIT as a jump o point.
However, the fact of the matter is that the large corporates are happy
with the BSA and the smaller companies cannot easily bankroll a
start-up organisation with overheads. Therein lies the real problem.
In conclusion we believe that our industry does need a true trade
body but in order for that to happen we would need a considerable
number of small and medium sized businesses to pay a few thousand
pounds each to get the thing started. This is not easy and very unlikely
to happen in the current, uncertain climate.
THE PUBLIC SECTOR
OUTSOURCING
EXPERT’S VIEW
SIMON VENN,
CHIEF GOVERNMENT &
STRATEGY OFFICER, MITIE
There is no escaping the past 15
months have been challenging
for the sector. As individuals, the
genetic make-up of each company
is totally di erent. Yes, there is
overlap and we compete in many
sectors like catering, security,
cleaning or engineering, but no two
FM companies are the same. We each have our own unique additions
and opportunities which add value for clients.
Yet as a cohort, we are tarnished with the same brush. Right now,
that brush isn’t painting roses around cottage doors but it’s also not
revealing the entire picture. Much work is being done to reinvigorate
the sector. Be that improving client services and adding value by
developing smarter ways of working or deploying state of the art
technology. It’s also important to support our most important asset
by being better employers for the thousands of people working across
the sector. It’s been an intense journey and there’s still some way to go,
but we are on the right path.
So how do we get that story out there? Some cynics would say that
‘bad news sells’ and journalists aren’t interested in FM’s answer to
unicorns and rainbows, but I disagree. There are a few vocal leaders,
but it’s the cohesive narrative that is missing. That is a void that a trade
association could help the industry fill. Not by becoming a defensive
mouth piece, but by creating a space where FMs could come together
to raise industry standards which benefit both clients and providers
alike.
This does work. We see it across a vast range of sectors. In the UK
alone, there are almost 2,500 trade bodies according to the Trade
22 APRIL 2019
Association Forum’s Directory. Each of which focuses on collaboration
in its sector.
On an informal level, this united approach is already bearing fruit
within FM. Mitie, along with a range of other outsourcers, has been
working closely with the Cabinet O ice on a collaborative project
to launch a new Government Outsourcing Playbook. This venture
between public and private sectors was designed to ensure future
services outsourced by government are set up to succeed and provide
the best possible public services. Basically, a win win scenario for
providers, the client, and ultimately, the end user.
Guidelines have been developed and there will need to be a shi
in both procurement and bidding cultures. But, in working together,
this project has the best possible chance of succeeding. Competition
remains a core element so there’s no conflict of interest when it comes
to securing business, but each provider involved has seized this once
in a generation opportunity to e ect positive change.
I’ve been privileged to be involved in the project. Seeing how we’ve
tackled industry wide issues within the public sector makes me
wonder how we can apply the same approach to the private sector.
The variety of clients and their individual needs will make this more
complex, but that doesn’t mean its unachievable.
The only potential conflict comes when policy change doesn’t
work for all parties and has indirect consequences. For example, if a
company’s main client is the public sector, it’s unlikely to have any
issue meeting the new PPPR regulations for paying suppliers. Not so
simple for companies which have a significant share of spend with
private sector clients who contract on much longer payment terms
(+90 days is some cases) but leverage the same supply chain as their
public sector counterparts. These companies are inevitably caught in
the middle and squeezed from a debt perspective because they must
still pay their suppliers within 30 days. I think everyone agrees the
timely payment of suppliers is the right thing to do, but finding a way
to reach that payment panacea will prove a more challenging journey
for some more than others. This is exactly the kind of bumpy road an
industry association could seemingly smooth.
Similarly, with market pressures all outsourcers face, such as debt
reduction, risk allocation and regulation. Instead of individuals driving
an imperfect market, a cohesive body could support a broader,
more balanced industry. Ensuring space for entrepreneurial entrants
alongside established players is achievable, providing the governance
is in place to achieve a consistently high industry standard.
An industry striving for better is powerful. Together, we can be
a force for professionalising the FM industry. Don’t get me wrong,
when it comes to winning business, the gloves are o . But when it’s
down to defending our industry’s reputation and raising professional
standards, we should all stand together. In that regard, a trade body
could only be a welcome addition to the sector.
Do you have a question that you’d like
answered by the FMJ Clinic?
Email: sara.bean@kpmmedia.co.uk
FM CLINIC
Simon Venn
ADVICE & OPINION
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