Training Program on Leadership & Business Strategy For FM Professionals

Training Program
on

Leadership &
Business Strategy
For
FM Professionals.

Prepared & Presented By :
Mr. Deepak Sahoo

Day Plan @ 9th March 2013
Lunch Break Strategic Gap
(12.30 PM – 1.00 PM) (2.15 PM – 2.30 PM)

Change Branding & CRM
Leadership Business
Strategy &
O&M Opportunity for
Competitor
Segment
FM Industry Strategy
Analysis Improvement

Part - 1 Part - 2 Part - 3
Kindly put your mobile in
Silent or Vibrate Mode.
Prepared by :- Mr. Deepak Sahoo , Consultant
A1

Agenda
 FM industries – Origin.
 Key challenges for Facilities Manager
 Market share and global Market
 Middle East and Qatar FM Industry
 Change & Leadership.
 Business Strategy
 Strategies for O&M Segments, Marketing, Branding
CRM, Data Security & Competitor Analysis.
 Potential and Risk Management.
A2

Part – 1 - A

About
FM Industry
& Future Growth.

Mr. Deepak Sahoo

Define FM.
FM is an interdisciplinary field primarily devoted to
the maintenance and care of commercial or
institutional buildings, such as hospitals, hotels,
office complexes, arenas, schools or exhibition
centers.

However, there are differences in definition of FM
depending on different regions around the world.

01

Building Services vs. FM
Building Services
Facility Management
or
Facilities Management
Facility Management' tends to mean the management of a 'facility', for example a
hospital or office complex, whereas 'Facilities Management' refers to a broader
range of activities. Facilities Management is generally interpreted as 'FM' in the
US, Australia, UK and across much of Europe. Where as in APAC & MENA region
most of the peoples calls Building Services rather facilities management (FM).
But the trends are changing rapidly.

02

What is Facilities Management ?
According to the International Facility Management Association (IFMA),
facility management is:
“A profession that encompasses multiple disciplines to ensure
functionality of the built environment by integrating people,
place, processes and technology.”

The European facility management association (EuroFM ) uses the
EN15221 definition. Which was provided by the European Committee for
Standardisation (CEN, French: Comité Européen de Normalisation).

"(the) integration of processes within an organization to
maintain and develop the agreed services which support and
improve the effectiveness of its primary activities."
Source :- http://en.wikipedia.org/wiki/Facility_management

03

ISO Standards for Facilities Management.
 Currently a project is underway to develop an ISO standard
that defines FM on a global level which is being led by the
British Standards Institute represented by Stan Mitchell,
former chairman of BIFM and Global FM.

 The ISO Standard for FM Industries expected to release
before 2015.
 Some of the Asset management company currently using
PAS – 55. The standard was originally produced in 2004 by
a number of organizations under the leadership of the
Institute of Asset Management (IMA) and was released in
Dec 2008 as PAS 55:2008
Source :- wikipedia

04

Transformation of offices

Offices in 1970’s Vs. Today offices

05

FM Origin - Details
 In 1960 Herman Miller created the Herman Miller Research
Corporation under direction of Robert Propst; the inventor of the Action
Office that evolved into the cubicle office furniture system.
 In 1978, Herman Miller Research Corp. hosted the conference “Facility
Influence on Productivity". The Facility Management Institute (FMI)
was formed.
 In 1980, the National Facility Management Association (NFMA) was
organized in the U.S., largely from the Herman Miller Action Office user
group. FMI provided first NFMA staff.
 In 1982, facility managers from Canada became members of NFMA and
the name was changed to International Facility Management
Association (IFMA).

07

FM Origin - Details
 In 1986, IFMA Released First Official Statement on Facility Management and
defines FM job responsibilities.
 In 1986, the Association of Facilities Management (AFM), now the British
Institute of Facility Management (BIFM), was founded in the United Kingdom.
 In 1987, the Japan Facility Management Promotion Association (JFMA) was
established in Japan.
 In 1991, IFMA Defines Competencies.
 Institute of Asset Management (IMA) had released PAS 55:2008 in in Dec 2008
which was originally produced in 2004.
 In 2009, IFMA Redefines Competencies.
 Currently a project is underway to develop an ISO standard that defines FM on
a global level. This project is being led by the British Standards Institute
represented by Stan Mitchell, former chairman of BIFM and Global FM which is
expected to come before 2015.

08

Competency area defined by IFMA.
1. Communication : - Communication plan and processes for both internal and external
stakeholders.
2. Emergency Preparedness and Business Continuity :- Emergency and risk management
plans, procedures.
3. Environmental Stewardship and Sustainability:- Sustainable management of built and
natural environments.
4. Finance and Business :- Strategic plans, budgets, financial analyses, procurement
5. Human Factors:- Healthful and safe environment, security, FM employee development.
6. Leadership and Strategy:- Strategic planning; organize, staff and lead facility organization
7. Operations and Maintenance:- Building operations and maintenance, occupant services.
8. Project Management:- Oversight and management of all projects and related contracts
9. Quality:- Best practices, process improvements, audits and measurements
10. Real Estate and Property Management:- Real estate planning, acquisition, disposition.
11. Technology:- Facility management technology, workplace management systems.

09

Target Audience for FM Industry.
Retail & Big Manufacturing
Shopping IT & BPO Corporate Companies
malls House

Banks & Real Estate College
Financial SEZ
companies Universities
Companies

Convention Large Ports &
Museum
center Hotels Airports

10

Fast Facts : FM
 Global Construction 2020 report which was sponsored by PwC and
carried out by Global Construction Perspectives and Oxford Economics
predicts that global construction will grow by 67% from USD 7.2 trillion
to USD 12 trillion annually by 2020
 In Middle East and North Africa (MENA) region a total of USD 4.3
trillion is forecast to be spent on construction in the region over the next
decade, representing growth of 80% to 2020.
 In the decade from 2010 to 2020 the average construction growth will
be 13 % on year to year basis in GCC region.
 According to Global Industry Analysts research report the global market
for FM outsourcing is projected to touch US$394.7 billion by 2017.
 It has been estimated that the initial development cost of a facility is
only 20% of the total money spent across the lifetime of a building with
FM and maintenance making up the remaining 80%.

11

Fast Facts : FM
 In 2012; the outsourced FM sector in the GCC region reached a
value of USD10 billion, according to a study conducted by Arab
Business Review.
 Markets such as Qatar, Libya and Algeria will finance most of
their own investment from oil and gas revenues and Qatar will be
the fastest growing market around the world.
 Qatar will spend over 150 billion USD for developing rail, roads,
water and other infrastructure in preparation for hosting the 2022
FIFA World Cup.
 The Outsourced FM industry will grow at 22% in Qatar where as
in GCC 18%, globally 13% and less than 4.1% growth in mature
markets such as Japan & North America.
12

Upcoming Infrastructure projects in Qatar
 New Doha Port, Cost $ 7.4 bn, 2016
 Hamad international Airport, Cost $ 17.5 bn, 2015.
 Lusail City, Cost $ 45 bn, 2020
 Stadiums (9 Numbers), $ 4 bn, 2015 to 2019
 IRDIS, $ 2.5 bn, 2018
 Msheireb, $ 6.4 bn. 2016
 Al-Waab City, $ 2 bn. 2015
 Doha festival City, $ 1.6 bn. 2016
 Integrated Rail Project, $ 36 bn., 2019
Apart from this near about $ 3 bn. will be spend by QP, Qatar Govt, 17
public sectors companies for their headquarters and other offices.
Source :- Gulf times; Dated 28th Feb 2013
13

FM Industry : Organized Vs. Unorganized

14%
Organise

Unorganised
86%

Source :- AMA Research Study

14

Size of Companies in FM Industries.
1%

2% 1 to 20 employees
4%

12% 20 to 50 Employees

50 to 200 Employees

200 to 500 Employees
81%

500 + Employees
Source :- Annual Business Enquiry, 2011
Note :- Numbers don’t sum due to rounding.

15

Various Segments in FM Industries.
Property
services

FM Cleaning
Services services

FM Industry
Segment
Support Security
services services

Catering
services

16

Sub Segments of Property Services

Building Pest
MEP Maintenance
(Civil)
IT Control

Damage
Control Landscaping

PROPERTY SERVICES
17

FM Industry Segment
The FM industry is comprised of six main service types:
 Property services include maintenance of buildings, climate systems, electrical and
mechanical services, information technology and communication systems, landscaping,
damage control and pest control.
 Cleaning services include traditional cleaning of offices, factories, hospitals, transport
hubs and specialized cleaning of windows.
 Security services include manned guarding and installation and maintenance of
electronic surveillance systems. The market for security services is considered fairly
consolidated.
 Catering services include the operation of canteens and concessions for customers. The
market for catering services is considered fairly consolidated.
 Support services include the operation of call centers, reception and mail room services
within a client’s facilities, but exclude temporary staffing services where the provider does
not manage the temporary staff.
 FM (Consulting )services include such as on-site management of FM, change
management, space management and consulting.

18

Market Share of each Segments in FM.

2% Property services
11%
cleaning services
34%
15% security services
catering services
15% support services
23% FM services
Source :- Market Intelligence Report 2011

19

Types of Service Providers in FM.

Only provide Provide more Provide all 6
one segment than 2 segments
or Sub segments services.
segment services.
services.

Integrated
Single Bundled
FM (IFM)
service service
service
providers providers
providers.

20

Evans ratio in FM industry
A Detailed study by School of Construction Management and
Engineering, Observed "Evans ratio" in building Service segment was
practically impossible to reproduce the 1:5 ratio and being approximately
1:0.4

1: 0.4
"If the initial construction costs of a building is 1, then its
maintenance and operating costs (salary of people included) over
the years is 0.2 to 0.4. where as from company to company it can
vary another 10 to 30%.
Source :- wikipedia

21

FM :: Who is a facilities manager?
The description of a FM manager varies depending on the region of the
world in which you work, given that there are various definitions. The
various areas facilities managers work in :-
 People Management  Environmental Issues
 Working with Suppliers and  Space Management
Specialists  Procurement
 Property Portfolio Management  Risk Management
 Building Fabric Maintenance
 Financial Management
 Managing Building Services  Quality Management
 Managing Support Services  Information Management
 Project Management
 Customer Service

22

Role of Facilities Manager
 Building automation systems  Fire alarm systems,  Meeting room management
extinguishers Fire protection
 Business continuity planning and safety, Smoke/heat  Office space planning, layout,
detectors , Sprinkler systems and furniture placement
 Cleaning
 Grounds maintenance and  Pest control
 Control of Substances horticulture
Hazardous to Health  Photocopying
 Corrective  Heating, ventilating, air  Pressure systems
maintenance/Reactive repairs conditioning and refrigeration
 Help desk, Reception  CMMS,CAFM,PM, CBM
 Daily inspection of escape maintenance
routes and fire exits  Industrial hygiene, including
indoor air quality  Safety Rules for Contractors
 Disabled Access , Disaster
recovery  Lease Negotiations  Security, Car Parking, CCTV &
Access Control
 Display Screen Regulations  Lifting equipment  Specifying, tendering and
 Dry risers  Lightning conductors contracts' negotiation
 Electrical portable appliances  Mail Room  Vending
and fixed wiring
 Man safe systems (window  Waste management
 Environmental Issues cleaning, roof access, etc)  Work equipment

23

Key Challenges and Developments in FM
A. Which one of these issues do you think should be at the top of every
facility Managers Agenda ?
1. Achieving cost & energy efficiency throughout the operation and
maintenance of an asset.
2. Improving Quality of service.
3. Improving safety at all areas.
4. Improving and maintaining customers satisfactions.
5. All the above.

ALL THE ABOVE 77%
0% 20% 40% 60% 80% 100%

24

B. Which one of these key Challenges you are facing in FM
industry ?
1. Unavailability of Skilled Manpower.
2. Lack of quality conciseness.
3. Higher attrition rate.
4. More competitive environment
5. Lack of Standards and SOP.
6. All the above

ALL THE ABOVE 26%
UNAVAILABILITY OF SKILLED MANPOWER. 38%
0% 5% 10% 15% 20% 25% 30% 35% 40%

25

C. Is there any area where you or your team needs more
training?
1. Operation & Maintenance
2. Soft skill & Communication
3. Contracting & Customer relationship
4. Business Strategy & Change Management

BUSINESS STRATEGY & CHANGE MANAGEMENT 54%
OPERATION & MAINTENANCE 22%
0% 10% 20% 30% 40% 50% 60%

26

D. Do you read any magazine related to FM industries ?
1. YES
2. NO

NO 59%

0% 10% 20% 30% 40% 50% 60% 70%

27

E. Do you belong to any associations related to FM?
1. IFMA – International Facility Management Association
2. APFM – Association of Property & Facility Managers
3. MEFMA – Middle East Facility Management Association
4. EuroFM - European Facility Management Association
5. Others
6. I don’t belong to any associations

I DON’T BELONG TO ANY ASSOCIATIONS 64%

IFMA 17%

0% 10% 20% 30% 40% 50% 60% 70%

28

Take your career to next level
Certified Facility Manager® (CFM)
Eligibilities – Bachelor degree with 4 Years or Post-secondary
Education with 8 years in FM industries.
Cost - Approximately 2500 USD

Facility Management Professional (FMP)
Eligibilities – Any Graduate Professionals involved in FM Domain

Sustainability Facility Professional (SFP)
Eligibilities – Any Graduate Professionals involved in FM Domain
At least 2 years.

29

Part – 1 B

Change
&
Leadership style

Mr. Deepak Sahoo

The Story of Eagle

The Story of
Eagle…

30

The Story of Eagle continues…

The eagle has the longest life-span
of its’ species
31


It can live up to 70 years

But to reach this age, the eagle
must make a hard decision
32


In its’ 40’s

Its’ long and flexible talons can no
longer grab prey which serves as food.
33


Its’ long and sharp beak becomes bent

34


Its’ old-aged and heavy wings, due to their
thick feathers, become stuck to its’ chest and
make it difficult to fly.
35


Then, the eagle is left with only two options:
die or go through a painful process of change
which lasts 150 days.
36


The process requires that the eagle fly to a
mountain top and sit on its’ nest
37


There the eagle knocks its’ beak
against a rock until it plucks it out

The eagle will wait for a new beak to grow
back and then it’ll pluck out its’ talons
38


When its’ new talons grow back, the eagle
starts plucking its’ old-aged feathers
39

And after five months, the eagle takes its’
famous flight of rebirth and lives for ...

30 more years
40

Why Change !
Many times, in order to survive; we have to start a change process.

Sometimes need to get rid of old memories, habits and other past
traditions.

Organizational change is needed in order to align the company with
changing business environment.

Due to External Factors Due to Internal Factors

Market volumes, changing product Skills of employees, present plant
profile, competition on price and variety, technologies with respect to future
segment, product specifications, change product specifications driven by
in business environment driven by customers, level of productivity,
government Policies etc. Quality, cost and
morale of employees.

41

Kaizen Thinking !
Leaders are most important for bringing
change in an organization.

Environment makes people !
If environment changes, people change.

42

The Change Process
The change process starts by
 Demonstrated change in the management.
 Setting up a new management system and process that
reflects new approach and mind set.
 Implementing, achieving and sustaining activities in line
with new mindset

Process of
PLAN SHARE UNDERSTAND change
start

Management creates Share with Employees understand
policy and provides the employees the vision of
vision and mission. Management
43

Change Factor and It’s Outcomes.
Action
Skills Resource
plan
Rewards Confusion

Action
Vision Resource
plan
Rewards Anxiety

Action
Vision Skills
plan
Rewards Frustration

Vision Skills Resource Rewards No Start

Action
Vision Skills Resource
plan Slow Change

Action
Vision Skills Resource
plan
Rewards Change

44

Team & Leadership.

A collection of A Team Leader
A group of guys
Peoples and some peoples

A team is a collection of people
related to one another
who share a common objective
and work in a collaboration with
one another
to achieve a common target.

45

Types of Leadership.
1. Autocratic Style.
2. Consultative Style.
3. Participative Style.
4. Laissez-Faire Style.
5. Bureaucratic Leader.
6. Neurocratic Leader.
7. Paternalistic Style.
8. Sociocratic Style.
9. Situational Style.
10. Transformational Style
46

Types of Leadership style in details..
Type 1. Autocratic Style - Autocratic type of leader is called an Autocrat. He does not consult his
subordinates (followers). He takes all the decisions by himself. He also takes full responsibility for his
decisions. The subordinates must obey him without asking any questions.
Type 2. Consultative Style :-Consultative type of leader has an open mind. He encourages his subordinates to
give their suggestions and comments. If these suggestions and comments are good, then he will accept them.
So this leader consults his subordinates before taking a decision. However, the final decision is taken by the
leader. Therefore, he takes full responsibility for his decision.
Type 3. Participative Style :-Participative type of leader encourages his subordinates to take part in decision
making. The final decision is not taken by the leader himself. It is taken by the group (team), i.e. by the leader
and his subordinates. The leader gives his subordinates full scope for using their talents. He is loyal to them.
Therefore, they are loyal to him. They obey his orders willingly. They have a genuine (real) respect for him.
Type 4. Laissez-Faire Style: -Laissez-Faire style of leader is passive. He only acts as a contact man. He
provides information and resources to his subordinates. He believes that the subordinates will work best if
they are left alone. Therefore, he gives them complete freedom to take their own decisions. He allows them to
plan and organize their own work. He allows them to set their own goals and to solve problems on their own.
Type 5. Bureaucratic Leader :- Bureaucratic leader follows all the rules and formalities of the organization.
He does not believe in new ideas. He wants his subordinates to follow all his orders. This leadership style
result in red tapism and unwanted paper work.

47

Types of Leadership style in details..
Type 6. Neurocratic Leader :- Neurocratic leader is highly a task oriented one. He wants to get the
work done at any cost. He gets very upset if there is any failure. He is very emotional, sensitive and
eccentric. He does not consult his subordinates in decision making. He takes his own decisions.
Type 7. Paternalistic Style :- Paternalistic style of a leader creates a family atmosphere in the
organization. He acts just like a parent of his subordinates. He advises, guides and helps his
subordinates with their personal problems. This style of leadership will be successful in a small
organization having a very few employees and only one leader.
Type 8. Sociocratic Style :- The sociocratic leader tries to run the organization just like a Social
Club. He gives less importance to production and more importance to friendship. That is, he tries to
keep his subordinates very happy. So, he creates a warm and good social environment.
Type 9. Situational Style :- Situational type of leader uses different styles in different situations.
That is, he changes his style according to the situation. Sometimes he will be autocratic, or
consultative, or participative, etc. Now-a-days, most managers use this style of leadership.
Type 10. Transformational Style :-The transformational leadership style depends on high levels of
communication from management to meet goals. Leaders motivate employees and enhance
productivity and efficiency through communication and high visibility. This style of leadership
requires the involvement of management to meet goals. Leaders focus on the big picture within an
organization and delegate smaller tasks to the team to accomplish goals.
48

Team Leader is the Eyes & Ears of Team
Every team has a leader and members.
A team leader……
 First remove his Hat outside.
 Has need for improvement
 Sets targets for the team
 Good communicator
 Good coordinator
 Works as a member
 Resource person for the members
 Understands team’s strengths and weaknesses
 Has counseling skills

49

Leadership Game – Basic Rules
• Finalize the team leader of each group & each
group contain 5 or 7 persons.
• Create a process for giving and receiving the balls
in your Group.
• You can’t pass the ball next to you.
• The ball must return to the person who started with
it.
• The Ball Must travel through air.
• The ball can’t rolled across the surface; e.g. floors,
walls table chairs etc.

50

Leadership Game – Basic Rules (Part-2)
Creating a Product :-

You are now going to create a product

1 Product = 8 Rounds of passing the ball in correct
sequence.

If you drop the ball you must start the round again.

51

Watch the Video

52

Part – 1 Completed.

Any
Questions?
Connect With Me @
Mobile :- +974 – 3370 8982
Email (w) :- dsahoo@mattcons.com
Email (p) : dksahoo2@gmail.com
LinkedIn :- www.linkedin.com/in/dksahoo
Slideshare :- www.slideshare.net/dksahoo2
Twitter :- www.twitter.com/DefyDeepak
END

Training Program on Leadership & Business Strategy For FM Professionals

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