USG People strives for further professionalization and decrease of facilities and real estate costs. In close collaboration with the management of the Facility Management (BFS) and Procurement Departments Hospitality Group developed a sourcing strategy for the department’s future. Various alternative strategies were discussed and analysed. Based on the analysis the IFM strategy was chosen as preferred strategy.

The preferred strategy was worked out in a detailed business case, a risk analysis, the HR impact and a market analysis. The business case identifies cost savings and potential risks.  For the study we involved the principal stakeholders, including managers of the star brands (business units), management of the Business & Facility Services Department and the Procurement Department.

At the moment the decision-making process is still ongoing and all options are being considered in detail. Expectations are that the IFM model will cut almost 10% of annual facility management costs of USG People cf. the business case. In addition it will make costs flexible, so that they will follow any decline or growth in business.