Ways to grow through competitiveness in the Facility Management Industry
The facility management industry has seen exponential growth in the past decade. The increased growth has resulted in a spurt of activity, consolidation has increased and new organized players have begun entering the space. In the ensuing clutter, very few companies have been able to differentiate themselves.
To face the competitiveness in the Facility Management Industry, Mr. Kunal Lala, Vice-President, SILA, says that a facility management company can tread a different path, stand out and grow by being competitive in the following ways:
- Let go off standardisation and look at customisation– The ‘one size fits all’ policy does not apply to the facility management industry anymore and gone are the days when services offered were standardised to the extent where the only thing different between facility management companies were staff uniforms. An integrated facility management provider should be capable of and prepared to customise solutions for each client, as each one’s needs are different. The client should never feel the need to look elsewhere for office based solutions – office space design & utilisation, staff welfare, office space upgrade projects, payroll management, event handling, etc. The facility manager has to always be at the forefront of providing specific services for the client’s property management needs over and above the usual gamut of services like MEP, soft services and security services.
- Use Technology& be Data Driven – Every facility management company has plenty of processes across departments like HR & payroll, operations, accounts & billing, compliance, CRM and business development. In order to ensure synergy between these departments and evaluate the data they churn & process, a company needs to use software that connects the different pegs of the wheel to project a clear snapshot. The software needs to collect timely data related to site performance, client feedback, HR & payroll management, sales projections. Decisions in any company need to be driven by accurate data. More so in the Facility Management space, where margins are low & heavily dependent on the performance of human capital. Technology can help decode the variations in data and portray a simple picture, which every company should use to strategize ahead.
- Attract, Retain and Retrain the right talent– It is crucial to attract, retain and invest in the right talent in any industry or business for growth & sustainability. This principle should be the foundation stone of any facility management company looking to grow in this industry due to its dependence on human capital.
- Track Performance– It is imperative that a facility management company periodically evaluates the performance of its frontline staff, support office staff, senior management, and vendor partners. This enables a company to gauge its service levels and help formulate future expansion strategies. If the performance levels are not as desired, a company can take a step back, consolidate its services and fill the gaps in its offerings before embarking on further business or services expansion.
- Aligning its interests with that of the client– A great way to project this ideology is to get away from the ‘manpower plus management fee’ model and adopt a ‘fixed management fee’ model. In the former, a facility management company is not incentivized to reduce the costs of the client since the higher the costs, the higher will be the facility manager’s fee. However, in the ‘fixed management fee’ model, a facility manager can be focussed on reducing the client’s total outlay since their income is fixed irrespective of the total outlay.
- Well – rounded CRM Process– A facility management company has to constantly evolve the CRM process and find new methods to engage with its clients. Client referrals and further services expansion with existing clients has always been the way to grow in this industry and this trait emphasizes more than ever, the importance of the CRM process.