Integrated Facilities Management: A Guide to Consolidating Facility Operations

In recent years, the expectations for facilities management have skyrocketed. 

As David Nice, Associate Director of Operations of an IFM service provider (Emrill Services), puts it:

But how do facility management service providers (FMSPs) keep up?

Clients now demand flawless operational execution and intelligent solutions that anticipate their needs before they can even articulate them. 

Another pressing challenge is the relentless pricing pressure from other FMSPs. With competition driving prices down, many providers face a dilemma: cut costs, risk service quality, or enhance value to stand out.

Instead of slashing prices—which can jeopardize operational stability—why not leverage advanced technology and superior service to build lasting client loyalty?

Also, cost optimization remains critical—companies strive to maximize their return on every dollar spent. FM is often viewed as a cost center, with its value only becoming apparent only during capital expenditures or when a poor strategy reveals itself. 

So, how can FMSPs prove their worth throughout the entire lifecycle of facility operations, not just at crucial moments?

Tackling these challenges is already a pain for FMSPs, and despite best efforts, growth feels perpetually out of grasp. They are still bogged down by the quicksand of day-to-day firefighting and hampered by a foundation of legacy systems and manual processes.

Due to outdated IT infrastructure, the current reality is now a frustrating cycle of missed feedback, minimal retention insights, and compromised service quality—pitfalls that affect customer retention and stifle geographical and service line expansion.

Imagine a much different space where new customer acquisition isn’t hindered by tech that fades into the background during RFPs, where deployments are swift, not stifled by CaFM complexities, and engagement with clients is clear and constant—not minimal and murky. 

I want you to think about the operational transformation possible when data isn’t siloed across spreadsheets, emails, and calls. Instead, it seamlessly integrates, offering real-time insights into crucial O&M areas of interest like costs, vendor and asset performance, and work order management.

Integrated Facility Management (IFM) does all this perfectly, getting your clients many steps closer to optimizing their operations and seeing better ROI.

The shift from traditional or bundled facility management operations to IFM is significant. The Integrated Facility Management market is projected to grow from $154.19 billion in 2024 to $217.08 billion by 2029.

Several factors are driving this transition:

• IFM systems ensure compliance with strict regulatory policies, which is crucial for modern businesses.
• As businesses expand, the demand for occupancy is increasing across various sectors, driving new facility needs.
• Augmented environmental awareness and concerned business practices have pushed IFM to exceed its conventional maintenance role as planned business drivers.
• Advanced technologies promote sustainability, enhancing building values through green certifications and management plans.
• Increasing adoption of IoT and AI maximizes operational efficiency in modern IFM through predictive insights that enhance decision-making and optimize resource management.

This article will cover the concept of IFM and how it can be used as a strategic tool for improved operational excellence and service delivery for facility management service providers.

What is integrated facilities management?

This approach combines various facility management tasks under one unified strategy to ensure seamless and efficient operations across the entire property.

Core components of IFM include:

• Proactive on-site maintenance - Regular upkeep and repairs to prevent issues and ensure smooth operation of all building systems.
• Comprehensive FM services - Encompassing hard (e.g., HVAC, plumbing, electrical) and soft (e.g., cleaning, security, landscaping) services.
• Energy utility optimization and management - Implementing strategies to monitor and reduce energy consumption for both economic and ecological benefits
• Strategic space management and utilization - Optimizing the layout and use of space to enhance the building's functionality and performance.
• Sustainability and environmental target setting - Committing to and achieving measurable goals that reduce the company’s ecological footprint with sustainable facility management tools.

The development of cloud-based software like Facilio has allowed organizations to consolidate operations and manage their facilities data from anywhere.

Key KPIs and metrics for integrated facilities management

Modern IFM platforms offer clear and factual insights into facility management operations and costs so users can easily monitor maintenance performance with real-time data. Essential facility management KPIs include:

• Improving first-time fix rate: Monitor work order performance to gauge operational efficiency and responsiveness. This includes tracking the percentage of completed work orders, first-time fix rate (FTFR), and the backlog of open work orders to identify potential bottlenecks.
• Reducing mean time between failures: Optimize equipment reliability by ensuring high PPM Compliance (%) and extending asset life through favorable MTBF metrics. Compare the ratio of preventive to reactive maintenance tasks to balance proactive maintenance strategies.
• Monitoring asset condition index: Track asset availability and maintain asset health status with a solid asset condition index (ACI). Efficient repairs are critical—monitor MTTR closely while planning replacements with the asset useful life (%) data.
• Monitoring cost per square foot: Ensure cost efficiency by monitoring cost per square foot ($/sq ft) and maintaining balanced maintenance spending relative to assets’ value. You can also optimize budget management with real-time adjustments and track trends on year-over-year expenditure and service coverage.
• Tracking energy usage intensity: Cut utility operational costs and meet sustainability goals by managing your energy usage intensity (EUI) and reducing your carbon footprint. You can monitor energy costs per occupant and avoid peak surcharges.

Check out Facilio’s eBook on FM KPIs that explains how the right metrics can drastically improve your decision-making, streamline operations, and help you hit business goals.

Who is integrated facility management right for?

If you’re managing multiple facilities across various locations, ask yourself: 

Are your current tools truly up to the task? 

Legacy FM software might have served well in the past, but the terrain is different now. Today’s facility management needs demand more than just basic functionalities—they require a sophisticated, integrated approach that legacy systems often can’t provide.

Who is IFM suitable for?

1. FMSPs and facility managers drowning in silos

One of the biggest drawbacks of legacy FM software is fragmentation. How do you make informed decisions when you have to piece together information from multiple sources? 

These older systems operate in silos, creating data fragmentation that makes it nearly impossible to gain a bird’s-eye view of all your operations. This isn’t just an inconvenience in a multi-site setup—it’s a severe risk.

How IFM solves this: 

• Each aspect of facility management is treated as a module within the platform. These modules are independent but interconnected. For example, the work order module can interact with the asset management module to automatically schedule repairs based on asset condition data.
• A centralized control dashboard gives facility managers a holistic view of all operations. This dashboard consolidates data from all modules and allows managers to oversee all aspects of facility management from a single interface.
• Many IFM platforms use a data lake architecture, where all structured, semi-structured, and unstructured data is stored in its raw format in a central repository. The platform can then apply schema-on-read principles, allowing different departments or modules to access the data they need in the required format.

2. FMSPs having trouble with client service-line expansions

As an organization grows, so does its demand for your facility management services. Legacy systems are notoriously bad at scaling. What worked for one site often crumbles under the pressure of managing several. 

The result? Inefficiencies, increased costs, and a system that becomes more of a hindrance than a help. 

How IFM solves this: 

• Modern IFM platforms are typically built on cloud-native architectures, leveraging the cloud’s inherent scalability. This elasticity allows the platform to scale up or down based on the number of users, the volume of data, or the complexity of operations without any manual intervention.
• IFM platforms utilize a microservices architecture, where different system components (e.g., maintenance management, energy monitoring, security management) are decoupled and operate as independent services. 
• With microservices, updates and improvements can be deployed continuously without disrupting the entire system. This allows the platform to scale well as new sites and functionalities are added.
• For real-time processing, especially in geographically dispersed sites, IFM platforms can leverage edge computing. This involves processing data closer to the source (e.g., at the site itself), reducing latency and ensuring faster response times while still syncing with the central system.

3. Managers dealing with workflow blocks

Then there’s the user experience—or lack thereof. How many times have you or your team struggled to extract the data you need from a clunky interface? 

Legacy FM systems are often not designed with the user in mind. This leads to delays, errors, and a general sense of frustration and disrupts workflow. When you’re managing facilities, the last thing you need is to fight with your tools.

How IFM solves this: 

• Uses minimalist design layouts that reduce clutter and focus on the most critical information, by employing clear visual hierarchies that guide the user’s eye to essential functions and data, reducing the cognitive load and making it easier to perform tasks quickly.
• Interactive data visualizations allow users to drill down into specific data points, filter information in real time, and view trends over time. 
• Customized dashboards that display the most relevant data for their role or tasks. For example, a facility manager can prioritize maintenance schedules, while an energy manager might focus on consumption patterns. 

Organizations of all sizes and industries can benefit from IFM. Some of the organizations most likely to benefit from IFM include:

Case study: Operational transformation at Quality FM organization with Facilio’s IFM solution

The UAE FMSP overcame traditional facility management challenges by integrating Facilio’s advanced CMMS solutions, realizing significant operational benefits across its portfolio:

• Tenant engagement: Implemented Facilio’s tenant-vendor portals, reducing customer escalations by 85%.
• Workforce optimization: Introduced mobile work orders, enhancing maintenance efficiency and achieving 95-99% SLA compliance.
• Proactive management: Leveraged real-time data for quicker issue resolution and improved portfolio KPIs.
• Financial clarity: Launched a digitized quotation service that increased transparency in maintenance costs.

Read the full case study here.

Integrated facilities management vs traditional facilities management

Traditional FM keeps different aspects of O&M management in their own little bubbles, which can work but is not efficient. 

IFM, on the other hand, ties everything together into one cohesive strategy. The difference between both FM strategies can be seen in:

Advantages of integrated facilities management

An integrated approach to facilities management offers many advantages, the most common ones being include:

1. Cost efficiency: IFM provides a potent avenue to slash operational expenses significantly by streamlining processes, eliminating wastage, and optimizing resource utilization without compromising on quality.

For example, a global financial institution cut its $450 million annual facilities management bill by over $150 million within three years. 

By streamlining from over 10,000 vendors to a single provider and standardizing processes, the institution not only slashed costs but improved service quality across its thousands of locations worldwide. 

2. Enhanced asset performance: Maximizing the potential of assets is critical for long-term success. IFM excels at proactive asset management, enabling early problem detection and preventive measures. This extends asset lifespan and minimizes the need for costly emergency repairs.
3. Regulatory compliance: Compliance with regulations is non-negotiable and increasingly complex. 

Regulatory bodies like TASNEEF (Emirates Authority for Standardization and Metrology) in the Middle East and OSHA (Occupational Safety and Health Administration) in the U.S. have stringent laws to preserve the building environment and promote safety.

For instance, Deloitte's findings reveal that nearly 90% of business leaders receive compliance updates at least semi-annually, yet only 20% of the entire boards receive such updates.

IFM can enhance this process by providing real-time updates on compliance reports. This capability not only ensures that every update is timely and reflects the most current regulatory standards but also that it reaches all relevant parties.

4. Elevated occupant satisfaction: IFM helps foster a safe, comfortable, and functional environment, enhancing occupant satisfaction and productivity. A well-maintained facility is an investment in happy occupants, who are the cornerstone of a thriving facility.
5. Informed decision-making: Empowered by a single, integrated view of facility information, IFM equips decision-makers to identify areas for improvement and allocate resources wisely.
6. Sustainability focus: The United Nations Environmental Programme (UNEP) reports that buildings are the largest emitter of greenhouse gasses, contributing to 37% of global emissions.

From energy-efficient solutions to water conservation and sustainable materials, IFM enables O&M teams to drive sustainability initiatives to contribute to a greener, eco-conscious future.

7. Seamless communication: IFM offers a centralized repository of information, fostering improved communication and coordination among all stakeholders.
8. Flexibility for the future: IFM equips organizations with the tools and information about their changing environments and trends to make swift, well-informed decisions, enabling them to stay ahead of the curve.

Preparing for IFM implementation

When deciding on integrated facilities management, enterprise companies weigh two main options: develop in-house capabilities or outsource to specialized providers.

Here's how to choose:

• In-house IFM: Suitable for enterprises seeking maximum control over their operations and alignment with strategic objectives. 
  • This option demands significant investment in advanced Computer-Aided Facility Management (CaFM) systems that manage complex processes and provide real-time insights. It's ideal if your enterprise prioritizes customization and direct oversight and possesses the infrastructure to support it.
• Outsourcing to IFMSPs: This approach offers access to expert services and innovative technologies without the overhead of managing them internally. It benefits companies looking to streamline operations and reduce costs while focusing on their core business activities. 

According to McKinsey, over 50% of the FM market in regions like the Middle East has adopted outsourcing. The same study showed the effectiveness of this FM approach, highlighting a case study of a large multi-chain retailer that reduced FM spending by 15% by outsourcing its operations to an IFMSP.

To successfully implement IFM, you should start with a comprehensive facilities assessment. Understanding the current state of your facilities, identifying gaps, and setting realistic goals will pave the way for a smooth transition to IFM.

Three steps to implementation of integrated facilities management

1. Form a cross-functional implementation team: Bringing together experts from different departments fosters collaboration, ensures diverse perspectives, and helps overcome challenges during implementation.
2. Establish Key Performance Indicators (KPIs) and benchmarks: Defining clear KPIs and benchmarks sets the framework for measuring the IFM strategy's success and identifying improvement areas.
3. Integrate technology solutions for efficient operations: Leveraging technology, such as Computerized Maintenance Management Systems (CMMS) and Internet of Things (IoT) devices, enables real-time monitoring and efficient maintenance.

A CMMS, which sits at the heart of all things O&M, is a choice that can make or break your IFM vision. Your CMMS should accommodate all your systems and software and provide a comprehensive and real-time view of assets across your portfolio.

Rising IFM Adoption in the Middle East and the United Kingdom

In 2022, the Middle East's facility management market was valued at $52.5 billion and is projected to grow at a CAGR of 5.8% through 2030. Several factors, including sustainability efforts and burgeoning construction projects, fuel this surge.

Increased demands from various sectors such as government, education, and transportation. Particularly in nations like the UAE and Qatar, the push towards green buildings and sustainable infrastructure is noticeably driving the demand for IFM.

Moreover, initiatives like Saudi Arabia’s ambitious goal for zero carbon emissions by 2060 and its commitment to derive over 50% of energy from renewable sources by 2030 illustrate a proactive governmental stance in supporting eco-friendly practices.

The UK's facilities management market, valued at $69.28 billion in 2020, is projected to reach $75.19 billion by 2029, growing at a modest CAGR of 1.65%. 

In 2022, total maintenance expenditure was estimated at £86.1 billion, approximately 3.4% of the UK's GDP. This significant expenditure highlights facilities management's substantial impact on the national economy, now accounting for roughly 7.5% of GDP, including cleaning and utilities.

The shift towards outsourcing is a key driver of this growth, as companies increasingly opt to delegate facilities management to specialized providers (IFMSPs). 

This trend has intensified competition in the sector, with companies vying for market share through aggressive pricing strategies, often at the expense of service quality.

Winning high-value enterprise clients means your IFM service company needs to stand out. 

What better value proposition than pitching advanced CaFM/CMMS tech that improves your service delivery for your clients, meets their demands, fills gaps, and exploits areas of missed opportunity for them.

Building the right tech stack to support IFM initiatives

IFM aims to bring all facility management functions under a single umbrella, so your CMMS should enable it–simple.

If your CMMS only allowed maintenance and asset management, but vendors and inventory need separate software that refused to integrate with your CMMS, it would not be much of an integrated or holistic approach to FM, right?

Your teams would still do double the manual work in consolidating data over sheets or converting them into formats the CMMS can read. Of course, the delays, errors, and bottlenecks that arise as a result would make it impossible to achieve the outcomes that IFM promises.  

Therefore, ideally, your CMMS is comprehensive, flexible, and friendly enough to integrate with all your existing systems to create a truly connected O&M ecosystem.

While you evaluate CMMS software to bring your IFM vision to life, consider the following features and capabilities:

• Asset management: Easily monitor assets throughout their life cycle, including their condition, location, and warranty info.
• Maintenance management: Schedule and track maintenance tasks, work orders, labor hours, and materials used.
• Work order management: Create and track work orders, knowing their status, priority, and cost.
• Inventory management: Track inventory levels, location, and expiration dates.
• Reporting and analytics: Generate reports and analyze data to make smarter decisions. Get insights on asset condition, maintenance costs, and energy usage.
• Collaboration: Work closely with stakeholders, like technicians, engineers, and managers, across the organization.
• Asset optimization: Improve asset performance by finding opportunities for enhancements and providing recommendations for better results.
• Predictive maintenance: Use historical data and asset conditions to predict when maintenance is needed.
• Risk management: Identify and handle risks related to assets, like potential failures or downtime.
• Energy management: Manage energy consumption, track usage, and find ways to save energy via energy analytics and reporting.
• Sustainability reporting: Generate reports on sustainability metrics, such as fugitive emissions, water usage, and waste generation.

Whether you need most of these features, as your business grows and compliance regulations inevitably keep evolving, you need a CMMS that meets your needs today and seamlessly scales with you.

Facilio for integrated facilities management

Facilio is a cloud-based software-as-a-service (SaaS) CMMS platform for integrated facilities management. Trusted by companies managing over 150 million square feet worldwide, Facilio provides a comprehensive suite of solutions tailored for facilities management service providers seeking to enhance operational efficiencies across large portfolios.

Why settle for fragmented tools when you can streamline your entire facility management in one connected platform? 

See how Facilio’s integrated CMMS transforms efficiency across portfolios—schedule a demo and experience the future of facility management for yourself.