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Over twenty years ago, as director of catering in Hull, I was responsible for implementing the first wave of outsourcing forced on local authorities by the Thatcher government. The 'client/contractor split' was one of the key things which bedevilled all of us, and formed the basis of several conferences and working groups as we tried to work out what structure gave the best solution. The problem then was that there was no model and no experience to base our judgements on: all we had was opinion and, in many cases, a political pressure to ensure that even in the process of outsourcing the local authority did not lose control of its services.

At the same time, the same process was taking place in refuse collection, grounds maintenance and building cleaning. The solution adopted in most cases was to implement a mirror management structure, but I persuaded my local authority not to do that (not least because no one, myself included, actually wanted to be on the client side of the fence). In the end, I became the sole 'client' officer, and then went on to work on the other services too (my introduction for facilities management, as it turned out). But there was precious little intelligence applied on any side, in what became a turf war between client teams and contracting bodies (most of which were actually local authority direct service organisations). For my part, I issued extraordinarily prescriptive specifications (anybody want to know how far a table cloth should hang down the table?) and then tried to walk round with a clipboard measuring compliance. In most cases, there was no conception that the services might change or develop over the life of the contract, and thus no strategic management role for the client-side team. It didn’t take long to realise what a sapping, soul-destroying and boring role that was.

Do we need one?
So my views of what might constitute an effective client role were shaped quite early by that experience. The subsequent twenty years have seen the same learning by lots of people in the facilities field, initially as individual services were outsourced, and later as the management role itself was procured externally. What evolved was a 'rump' client management role, nominally at least with a strategic remit to supervise, budget and plan ahead for the future needs of the client organisation – the so-called 'intelligent client' role.

Now, as total facilities management is becoming widespread and budgets are under pressure, that intelligent client role is itself being questioned by organisations' senior directors.

It is easy to see why this might happen. The role itself might be something of a victim of its own success: if the service is delivered effectively, why is a supervisory role needed? If the provider is good at managing the services and reporting on them, what is the 'value add' of the client role? Perhaps, in many cases, the client managers are suffering the same sense of existential angst that I felt – is there any genuine need for them to be there? Or perhaps the role is just a bit too comfortable and bit short on challenge? Maybe, even, it just attracts individuals who, lacking entrepreneurial instinct, neglect to develop their role and communicate their successes to their organisation?

Clearly all this varies enormously case by case, as does one's sense of what is most appropriate. For example, I instinctively feel that the client-side organisations I have seen in the central government sector are excessive: they do still seem to cling to the mirror image model, which simply shows a lack of confidence in their contracted partners and a failure to delegate effectively to the experts. That must be one area in which the new government could easily save money without impacting service quality.

But equally I look at some very 'thin' client teams, stressed by the volume of work and decisions required of them, and wonder if some companies have not gone too far, or perhaps too thoughtlessly, in the configuration of their internal management. Certainly, despite all the effort that goes into specifying and procuring outsourced facilities management support, very little planning seems to go into selecting the right client team model and creating the right skills to manage the relationships while providing clarity of role and added value from the team as a whole.

What do we want?
Do these observations point towards consigning all client roles to failure? Of course not – there are many examples of good teams around. What we can take from these is an analysis that might illustrate the weaknesses to be overcome, the circumstances in which the whole organisation benefits and thrives, and suggestions as to how a new client role might emerge across our industry.

So let’s consider some fundamental issues, without using aspirational (and unquantifiable) terms like 'strategy' – let’s focus on what really would add value for an organisation. I suggest that the key value for an organisation lies in the facilities client management's ability to:

1) independently assess supplier performance

2) independently understand and assess change opportunities within the marketplace and the industry

3) understand the organisation’s plans, culture and competitive advantage in the market

4) communicate with internal stakeholders to understand and assess their needs

5) balance competing or unrealistic requirements and make judgements on priorities for use of scarce resources

6) express those needs in a competent and coherent form so as to procure the right services

7) retain all this knowledge during times of transition

8) budget effectively in the best interests of the organisation

9) ensure the best fit between the supplier of FM and the client organisation

10) undertake and contribute to scenario planning within the organisation when plans cannot be shared (for example, in M&A activity and due diligence).

That is a considerable list of high value activities – if they are carried out well, by knowledgeable and experienced senior managers. The problem, however, is that the people who might be capable of doing this are few and far between. The role requires not just experience in FM, but experience in contracting and an ability to deal credibly with the supply chain – it’s not a junior role (even though many organisations try to fulfil it with relatively junior staff). What’s more, the salaries required to attract and retain people for this role typically are high, so that unless the portfolio is large the costs may be disproportionate to the benefits.

Various solutions to this situation have been tried, some successful. For example, there are a small number of people who clearly can combine genuine FM knowledge with a property background, so that in combining the roles a real synergy occurs. Those people are highly sought after, well paid … and there aren’t enough of them to go round.

Others have tried embedding a client-side facilities manager within a property team, but the problem there is one of seniority, especially as property directors rarely have the time or patience to understand the nitty gritty elements of facilities. Client facilities managers in those organisations rarely have the authority or personal dynamism to add the value needed.

Still others have expanded the geographical scope to cover EMEA rather than just the UK, or even further flung outposts.

At the most extreme level some organisations, under extreme cost pressure in the downturn, have effectively jettisoned their internal expertise and leave everything to the contractor. That might work in the short-term, but sooner or later they will be confronted with the need to re-procure the service, or find the contractor pursuing its own interests at the expense of the client’s. Some, recognising that incipient problem, have turned to consultancies to provide the client advisory resource on a part-time or ad hoc basis.

What's the solution?
There is no single answer to this conundrum; everything is contextual. It should be easier for larger organisations to solve, but the mere scale can be overwhelming, especially where services have not been outsourced in a single TFM package or unified geography.

Client buyers could also be more prescriptive in setting out the senior contractor management roles to be provided to meet their needs, and – while maintaining the flexibility to change where bidders make a strong case – be committed to the development of a credible, strong, intelligent client role.

Because the client role is so fundamental to the long-term success of the services for the buyer organisation (and thus to their ultimate success as well), and because finding the right balance and combination of responsibilities is critical to success for all parties, it is surprising that so little time is taken to understand these issues. I believe that there is a real need for buyer organisations to be clearer about how the roles relate to each other and to articulate that clearly during the tender process. Senior corporate engagement in this is crucial, and gaining that commitment is an opportunity which internal FM teams must take if they are to elevate the role of FM in their organisation. That possibility is one that good facilities managers will grasp in order to fulfil their personal and professional potential, and to benefit their organisation.

Only when this is done well can we be sure that the many benefits of outsourcing will be delivered and that our industry’s contribution to organisational success will be appreciated by our management.

Dave Wilson is a Director at Agents4FM.