Procuring Property and Facility Services
For many businesses the cost of operating their facilities typically ranks near the top of their expenses. Frequently, it is second only to the labor cost of the employees. Property and Facility Services includes areas such as real estate, architecture and engineering, construction and fit outs, utilities, operational services, maintenance and more. It is also becoming more of a strategic Human Resources consideration as companies are using their facilities to attract and retain a quality work force. Work place satisfaction is often a key to employee satisfaction.
The more effectively a company manages its properties and facilities the more success it will have with its customers, employees and shareholders. Facilities are critical to a company's overall operations and must also be prepared in case of a catastrophic event. Business continuity, disaster recovery and preparedness are paramount to a company's ability to serve its clients and manage risk. A company must have a solid team maintaining its facilities with a strategic approach to both managing cost and reducing risk. A property and facility manager must have a good knowledge of strategic procurement, facility cost, current industry trends, and should actively participate in industry organizations.
Property and Facilities Management impacts not only direct costs but also affect indirect cost as well. The workplace environment will impact efficiency and output of the workforce, equipment, consumables/materials and services. Companies are looking for means to drive out cost, increase sustainability, improve efficiencies, and improve workplace satisfaction. According to KPMG's 2012 Global Real Estate and Facilities Management (REFM) survey the top 3 focus areas for REFM in 2013 are cost reduction, improving workplace environment as a tool to attract/retain talent and energy management. In addition activity based working is also becoming a trend for businesses with more people working remotely and workplace requirements needing to be more flexible. While companies strive for a more efficient workplace often real estate and workplace equipment becomes an additional cost to a company's overhead. Many times these facilities and excess equipment can be turned into cash. By pursuing early termination for leases, sub-letting and liquidating assets companies can actually turn these assets into cash.
Businesses today must be proactively reviewing its real estate needs with the workplace by planning and evaluating the benefits of optimizing its real estate portfolio and consolidating facility services. Whether your facilities focus is business to consumer or business to business, through a focused resource such as an outsourced Business Process Organization a business can deliver savings with a holistic view and solution that addresses your specific needs.