Choose Value, Not Price

Right now, the market for facilities management is good. Most organisations are optimistic, forecasts are strong and the mood reported by the media is positive. But whilst the volume of business and opportunities is on the rise, a lot of it, especially work in the public sector is being determined based on price and not value.

Many client organisations talk about value, but the reality is the economics now are pushing procurement decisions into a corner, making price the real deciding factor. Sadly, this often means some FM companies ‘over-selling’ and then under-delivering.

Workplace culture: the true test of productivity

This was the question in the March issue of FMJ. The Tenon FM argument is that as a service provider, an FM’s objective is to provide the critical support services that our clients can’t or should not be concerned with. What we do frees them to focus on core business, their end users, their own vision and values.

What we do must also help make them and their people more effective. How you define that is the problem. Is effectiveness about efficiency? If it is, how do you define that? Is it about saving money or about doing things right, aligned to an organisations vision, values and long term objectives. Or is it about productivity?

The ‘p’ word (as Simon Heath, one of the other pundits responding in FMJ, points out) is almost impossible to pin down. The OECD argues: Productivity is commonly defined as a ratio of a volume measure of output to a volume measure of input use i.e. doing more for less. What does this mean in practice?