The benefits and challenges of the TFM model

THE TFM PROVIDER’S VIEW
ANDREW SUGARS, 
CHIEF CORPORATE DEVELOPMENT OFFICER, ATALIAN SERVEST

More than ever before it appears contractors – especially larger ones – are seeking to bring multiple service lines together in integrated packages. The TFM label, however, demands a bit of caution as there is no standard definition and it is used in different ways by different companies. Considering the current climate where cost is as high on the customer agenda as value, ‘add-on’ services can be crucial to a service offering. Clients are always on the hunt for the most cost-effective and efficient way of managing their property portfolios. What’s more, they are increasingly looking for consistency of management and delivery. Quality, of course, remains the most important check-box, so if you can offer a solution in the shape of a joined-up suite of services, without compromising the quality of any one area, you are onto a winner.

When the entire FM solution is outsourced to a single service provider it is undoubtedly simpler to manage and a more seamless process for the client. There’s one contract and one point of contact, or a small team that manage the overall service offering, which also makes it easier when FM operations are cross borders. Often, there is also the benefit of having a fixed price, so budget planning can be easier too. More often than not, the customer organisation will lack the specialist knowledge or skills to suitably manage the services. TFM providers, on the other hand, are specialists and can, and should, ensure that the service provision is first class.

In some cases, it doesn’t matter how ‘good’ the service provider is; they often cannot self-deliver absolutely everything. This is why Atalian Servest is and has always been very acquisitive in nature. We bring in specialisms from different geographies, sectors and disciplines, from building services and HVAC to fire protection systems. When we are faced with a service specialism that sits outside of our expertise, as a TFM provider, we know the best companies to use. With the increase in using data to create better service delivery and a more efficient FM offering, we wanted to make sure we maintain the aptitude to support all service lines now and in the future. Because of this, we have invested in, and partnered with global ICT services specialist Getronics. This will enable us to develop our technology-led workspace solutions including tools focused on workspace management, managed cloud, unified communications and applications. In 2018, to be a true TFM provider, you need to play a leading role in the workplace technology market and provide a seamless FM and mobile technology offering to your client base.

Clients have a great deal of choice when it comes to selecting service providers and service models. It’s hard to generalise the best solution for the supply and management of FM. It’s down to each specific client and contract. As service partners, we operate in a highly competitive market. The steady change on the supply side is evidence of this, as is continued pressure on sustainable profitability. Some may say that being completely dependent on one company for all your support services is risky should anything happen to this company. After the demise of Carillion earlier this year it’s clear that things can go wrong. 

THE CASE FOR A SECTOR BASED APPROACH
BOB TAYLOR, 
CEO OF OCS GROUP UK AND MIDDLE EAST

It is impossible to ignore the reputational damage that the TFM ‘brand’ has incurred in recent years. A lack of faith in the model stems from a series of high-profile failures in the FM outsourcing market. Customers are rightly concerned about the risks that come with outsourcing a wide range of support services to one supplier.

The outsourced facilities sector once made the case that its capacity to diversify was evidence of its ability to align closer to the customer’s core business strategy. There is, however, a strong counter argument that this impulse has had the opposite effect – diluting specialisms and causing the FM sector to lose sight of where it can really add value.

When I stepped into the role of CEO at OCS, one of the first actions we took as a business was to reduce the number of services that we self-deliver. This included a period of introspection that allowed to form an understanding of what we are good at, where our expertise lies, and in which areas we have credibility. When self-delivering big multi-service contracts, it’s far too easy to break promises.

It is important to note, however, that TFM isn’t an inherently bad delivery model. Done well, it provides the customer with a wide range of benefits including much better cost-efficiency and access to best practice and innovation in FM.

There is a tendency to assume that FM service delivery follows a certain cycle – from insourcing services, to outsourcing to a single service specialist, to bundling more than one service where it is convenient, and finally to outsourcing to a TFM or integrated FM provider. But each customer’s journey is different, and no company should ever stay moored to one model of delivery.

One-size-fits-all approaches are doomed to fail. Each of OCS’s customers has a unique set of needs and demands. A hospital will require a drastically different cleaning or catering service to a hospitality venue or corporate organisation.

It is for this very reason that OCS made the decision to adopt a sector-based approach three years ago. We don’t have a cleaning division. We have a healthcare business that can deliver facilities services. Ultimately, the crucial question isn’t “Is TFM the best service delivery model?” Instead, we should ask, “Is the TFM model right for our customer?”

The primary goal for any service provider like OCS is to understand the culture and objectives of the customer and then create a model that supports the right outcomes. This comes down to asking the right questions at the very beginning of the relationship, always being honest and, most importantly, understand the customer’s industry. By doing so, facilities organisations can deliver a service that meets their objectives, whether that’s through a TFM delivery model or not.