What can we learn from the Financial Crisis that can be applied to Facility Management?

Shortly after I post the earlier writing on “Financial Crisis and FM”, I receive queries about “how then can learning from the causes for the financial crisis be applied to facility management?”

Great! That’s challenging and sets my mind thinking….I will briefly share my opinions

The banks / financial institutions were “narrow” in their strategic plannings. I believe they felt that by being lenient in lending (even >100% loan) will attract more customers, thus thought they will earn from the interest. You know as well as I do that one main reason that caused the collapse was that the people (lenders) cannot make payment as such caused the system to collapse. That’s simple.

Lesson learnt:

The banks – financial institutions:

  • took a narrow views on the potential gains from charging interest.
  • did not consider CONSEQUENCES! Were the customers QUALITY customers?
  • did not consider long-term for the people, their organisations, effects on its own country & globally.
  • greed took control – now they are not able to digest what they “consumed” from the leniency of loans.

What about that which can be applied to FM?

  • when selecting service providers or vendors, think CONSEQUENCES. Qualify if they are reliable vendors / contractors. Not appointing them just because they are the lowest quotes.
  • Qualify the QUALITY of the vendors / contractors. Verify their people’s abilities, skills, experience, behaviour, etc, besides their financial capbilities…
  • Low cost does not necessary equal to value add.  Ascetain clarity as ambiguities may lead to variation costs, rework, overrun of schedule-resources.
  • Do risk identification and analysis.

In situational planning, consider always the 4-legs of enterprise: Productivity, Innovation, Quality and Safety. These are reasonable and practical guides to ensure effective and value added services provided by facility management.

To Your FM Success!

steven@stevenee.com

Making a Difference in Facility Management……

Leave a Reply

You must be logged in to post a comment.

BLOG POSTS

ADDRESS

Blk 1003 Bukit Merah Central #07-05
Singapore 159836
Phone: (65) 6100 3672
Website: http://www.stevenee.com
Email: steven@stevenee.com