FM Provider Size

When selecting an FM provider, organisations are often very concerned with turnover. There is a perceived link between a providers turnover, and their ability to leverage economies of scale and deliver robust service plans. Though there may be some common sense truth to this, size, or rather growth, can also result in negative outcomes.

FM providers which grow organically, tend to begin life servicing multiple small value contracts. They have relatively small teams of dedicated personnel, off the shelf systems and basic processes. To grow, providers gradually replace/supplement these contracts with those of a higher value. Gone are the days of incremental growth. When a provider reaches a turnover of £100 million, the next target isn't £105 million, its £250 million. This level of growth requires new processes, more advanced systems and a broader staff base. The level of internal change required is immense, and undoubtedly impacts upon the service levels afforded to mobilising and existing contracts.

We would therefore suggest expanding upon the turnover focus to include a consideration of growth. Essential questions include:

1. How many other contracts are you currently mobilising and what growth does this represent?

2. How many other contracts are you currently bidding and what level of growth does this represent?

3. What are your growth targets over the next 5 years?

4. Are you planning any major structural, process or system changes in the next 5 years?

If targeted growth rates represent more than 15% of existing turnover in any year. Be sure that the provider has robust plans in place to ensure that your organisation isn't caught in the maelstrom.

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