Shopping Centre
Good incentive
Many shopping centres use a traditional mix of mechanical and electrical, security and cleaning providers, but are they missing a trick? Jeremy Waud, managing director at Incentive Facilities Management, believes so - and explains why
Published:  13 November, 2007
Page 22 

The term 'facilities management' or FM is widely used and often misused. In simple terms it can best be summarised as providing and maintaining the working environment - or put another way, the total management, delivery and budget-holding for all non-core services.

There are endless and generally long-winded definitions of FM, but perhaps none better than that of Irish comedian Dara O'Briain at the FM Excellence awards, who described the FM community as the 'wee fairy folk' who make everything work when we've gone home at night and before we return for work in the morning!

The customer benefits for shopping centres and other organisations that work with an FM company have been well documented and include lowering costs, improving service, streamlining administration and reducing headcount. FM can allow money to be saved in non-core areas that do not affect the main running of the centre, such as security. In some cases cost savings can be achieved while the number of staff employed by the FM company is increased, and staff transferring can benefit from good training and the opportunity to work on other contracts.

But what about those shopping centres that don't want to buy a full FM service, usually because they have a robust in-house team that already has the necessary expertise and skills? Currently I would say that such organisations have limited options - well, good ones anyway.

Firstly, they can choose to employ an army of maintenance and cleaning staff and keep all activities in-house. This is the way that many shopping centres have traditionally operated in the past and it's not a very cost effective option.

Secondly, they can individually source a wide range of suppliers and then attempt to manage the vast array of reports, budgets and invoices that result from this. Again many shopping centres currently operate this way and, while technically it gives them the maximum amount of choice, it also involves a huge amount of management time. So what else is there to consider?

I believe that there are a lot of shopping centres that want to exercise freedom in their choice of suppliers while also getting some of the benefits that would result from opting for a full FM management service, such as consolidated billing and reporting, and reducing the number of suppliers.

Enter the 'multi-service provider', otherwise know as an 'integrated service provider'. These are businesses which can offer a range of services from under one roof and which enable the client to benefit from a tailored but flexible package of services that can be adjusted to meet changing requirements. Because there is a single point of contact and a dedicated helpdesk, shopping centres can also enjoy the additional benefits of a reduction in administration and costly management time. However, multi-service providers do not generally offer the intellectual or in-depth support and knowledge base of an FM company.

Nevertheless, this solution particularly appeals to organisations who do not feel comfortable handing over budgetary responsibility to a third party and also to those who are perhaps interested in safeguarding their own position within the business and may feel threatened by the expertise of an FM company. It certainly enables businesses to keep a firm grip on the reins but also allows them to benefit in numerous ways from an element of integration. It's not a better solution than FM - it is just a different one, and one that appeals to, and is often taken up by, a different type of market.

Whatever options you choose it is important to realise that a good FM partner can be vital to your success. At Incentive FM we now have a number of clients within the retail sector and for some we provide a full FM service and for others we act as an integrated service provider. Regardless of this, our solution is designed to help drive asset value upwards as a result of the improved cost savings and the quality of the services provided. We provide a full range of maintenance and support services, delivering benefits through more efficient use of staff, the streamlining of invoicing and accountancy procedures and expert procurement and management of sub-contractors. This is designed to add up to a lower total acquisition cost for the shopping centre and accordingly the retailers.

By working with a professional FM company such as Incentive FM, shopping centre managers and property agents should be better able to focus on strategic and value-enhancing issues rather than trying to manage a diverse number of different service companies, with all the complex paperwork and negotiation this inevitably involves. Whether full FM or integrated service provision appeals, if you'd like to learn more, why not visit the website at http://www.incentive-fm.com.



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