Lack of Facilities Management costing UK businesses almost £1 billion

Ineffective facilities management could be costing UK businesses nearly £1 billion, new research has revealed.

A study conducted by the Royal Institution of Chartered Surveyors (RICS) around 26 per cent of organisations in the UK are still not taking a strategic approach when it comes to facilities management – a business discipline that involves the co-ordination of space, people, resources and property within an organisation. It suggests that those organisations using FM in a strategic capacity could be saving themselves as much as £120,000 on average.

The RICS is championing a ‘Strategic FM’ (SFM) approach whereby businesses use facilities management to achieve real strategic alignment with other parts of an organisation and add real value. Of those questioned who use SFM, almost three in five (59 per cent) said that their organisation had seen an increase in overall productivity, with 49 per cent saying that the attractiveness of their organisation to clients or customers had been boosted by it. In addition, around a fifth (21 per cent) said that employee absence in their organisation had decreased as a result of SFM.

Johnny Dunford, global commercial property director at RICS, said: “It’s clear from our research that recognising FM as a strategic discipline has the ability to bring about tangible business benefits for organisations of all shapes, sizes and sectors. With nearly £1 billion being wasted by those organisations without SFM in place, our research clearly demonstrates that more needs to be done to get leaders in the private and public sectors on board with the new approach. By recognising FM as an important strategic discipline, businesses could reap the huge business benefits it promotes.

“To support professionals in developing SFM in their own organisation, RICS has developed a valuable suite of information, resources and services which includes our recently launched SFM Guidance booklet and accompanying Case Studies booklet. What’s more, the RICS is helping to professionalise the FM sector through its Chartered Facilities Management Surveyor (MRICS) and  Associate (AssocRICS) qualifications.”

To accompany their findings and to support professionals in implementing SFM in their own organisation, the RICS has developed a series of top tips.

  1. Ensure that you are fully aware of your organisation’s overall mission statement and business objectives with a view to developing an SFM approach that supports in their delivery.
  2. Put measures in place to capture accurate data which will enhance strategic decision making when it comes to FM – data on operating costs, repair costs, utilisation levels and environmental performance are key.
  3. Ensure that FM is represented at a strategic level when organisational policies and frameworks are being developed – this will ensure that the right facilities can be provided in the right locations at the right cost and quality, supporting organisations in meeting key objectives.
  4. Use internal communications networks to get a view of the operational requirements of your organisation and build relationships with key operational managers who can help you deliver an effective FM strategy.
  5. Access the abundance of resources, information and qualifications that are out there – all geared towards the professionalising of FM and enhancing of its vital importance as a strategic discipline.

For further information the RICS’ products and services relating to Strategic FM, visit

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