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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 2Internal SAP Today ~74,497 SAP Employees worldwide >120 Nationalities 25 Industry Solutions >293,000+ Customers 190 Countries 11,700+ Partner Companies worldwide Our customers include • 87% of the Forbes Global 2000 companies • 98% of the 100 most valued brands • 100% of the Dow Jones top scoring sustainability companies Our customers produce • 78% of the world’s food • 82% of the world’s medical devices • 74% of the world’s transaction revenue touches an SAP system
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 3Internal SAP KEY FINANCIAL INDICATORS, 5 YEAR VIEW (*) Total revenue & Operating margin as a percentage (IFRS) 0% 10% 20% 30% 40% 2010 2011 2012 2013 2014 20.8% 34.3% 24.9% 26.6% 24.7% TOTAL MARGIN 8 13 2010 2011 2012 2013 2014 12.46 14.23 16.22 16.82 17.58 TOTAL REVENUE (€Bn)
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 4Internal GFM Organization comprises Corporate Real Estate & operational Facility Management GLOBAL FACILITY MANAGEMENT REAL ESTATE MANAGEMENT Location Strategy & Management City Strategies (tactical planning & operational execution) Real Estate Sustainability Providing Data Center space FACILITY MANAGEMENT Operation of Facilities Operational Real Estate Management FM Sustainability FM Data Center Operation Energy Engagement
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 5Internal SAP's Global Facility Management (as of September 2015) 370 HC GFM Employees worldwide > 80 Nationalities 70/220/410 Countries/Locations/Buildings >1.520.000 sqm Office Spaces served ~ 583m Euro/a Operational Expenditure (Opex) ~ 169m Euro/a Capital Expenditure (Capex) GERMANY Space: 542,000 sqm Buildings: 100 Opex: 102m Euro APJ Space: 315,000 sqm Buildings: 80 Opex: 117m Euro ARIBA Global FM Space: 30,000 sqm Buildings: 15 Opex: 21m Euro AMERICAS Space: 360,000 sqm Buildings: 110 Opex: 167m Euro EMEA Space: 270,000 sqm Buildings: 120 Opex: 141m Euro Concur < 1000 sqm (1) Concur ~ 32.000 sqm (21) Concur ~ 8.500sqm (6) Concur ~ 9.500 sqm (9) Concur + ~4.200 HC + ~50,000 sqm 1) OPEX FC9 values on local expenses @FC9 rate; excluding Hybris and Concur 2) CAPEX FC9 values @FC9 rate; including Data Center; excluding Hybris and Concur Global DC spend Opex: 38m Euro
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 6Internal The EMEA Facilities department pre evolution When taking over the region in 2010 I was concerned about the low EEI mark for the region and reviewed possible reasons for this situation. My findings were as follows:- Little sense of GFM EMEA as a community A variety of different management styles deployed – no consistency on management vision and techniques Very little employee development -Some very good people in the organization but they were under utilized or not so well career developed Little celebration of successes Very little cross boarder collaboration Little sharing of best practises Many requests for information from a variety of sources with no explanation of why the data was needed Poor communications A management team that were in silo mentality in their way of working No sense of fun in the way we work
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 7Internal It starts with the leader • My role was far too focused on real estate with around 80% of time spent on that one area alone • I needed to balance the role to incorporate more time on employee development, FM EMEA community development, setting strategy, engaging more and listening to my customers • I needed to create an environment where innovation could flourish and best practises are shared • I NEEDED TO EMPOWER THE TEAM
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 8Internal The jigsaw challenge – GFM EMEA • Many pieces needed • Pieces need to be in the right place • Some pieces are more important than others but all are needed • It is never finished, some pieces need changing or reinventing • The viewer has to understand the jigsaw and how it is put together
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 9Internal Strategy setting • Design thinking workshops to analyse what we do and what do we need to focus onto make a real difference • Take the 40 or so initiatives and focus on 4-6 that we can do really well • Agree action plans on those key initiatives and drive change throughout the year • Celebrate success and share best practises • Take corrective actions when you see challenges and adapt
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 10Internal Key areas focused on Celebrate Success and build a sense of GFM EMEA community There were quite a number of measures in this area including:- The setting up of a quarterly GFM EMEA Newsletter – again a cross geography team were formed to do this and we tried to make it a ‘for the people by the people’ type of newsletter . So together with success stories we also included fun bits and insights into GFM people in the region. We made sure success contents are a heavy inclusion in regional and sub region updates We collated and publicised feedback from satisfied clients We ran extensive service level surveys throughout the region in order to quantify and gauge progress and then made sure we publicised results We focused on people or teams when best practises were recognized and publicised We shared a lot of regional information deep down into the organization. Budget and forecast performance became a much wider focus area rather than the preserve of the management team “It is amazing what you can accomplish if you do not care who gets the credit.” Harry S. Truman
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 11Internal Key areas focused on Introduction of cross boarder collaboration We set up a number of teams pulled from across Europe to work on specific projects. Example 1 -The formation of a Security management coordinator group which where we nominated a person from each Sub Region to be act as security coordinator for their geography. This was in addition to their existing role – the team is matrix managed by the EMEA Head of Security. The team meets regularly and discusses and reviews common topics and ideas. This initiative has fostered teamwork and developed the individuals Example 2 - Is a group we formed from all Geographies to analyse our EEI results and report back to the management team on what we are doing well and what we could improve. This was introduced in 2012 and we got some very good feedback. It also has allowed an employee voice into how we run things in the region Communications improvement A number of measures are already highlighted under celebrating success and building a sense of GFM community. However, additional to mention:- We spent a lot more time sharing GFM and GFM EMEA key objectives and topics throughout the region. The idea was to have common alignment but also to make sure everyone understood how their roles fitted into the regional objectives We stopped communications of ‘we need this by this deadline’ and changed them to ‘ we need this information for these reasons and this is how it will benefit us longer term by this deadline’ Myself and my management team invested more time into general update communications and reviews for the region and sub region
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 12Internal Key areas focused on We developed people As a management team we identified rising talent in the organization , particularly T3 and actively encourage development. This included using some of that talent in other areas and geographies such as Project delivery to broaden their skill sets and give them exposure to other geographies We encouraged professional education development on FM courses and diplomas – a number of graduations in last few months We formed cross boarder teams on certain projects as highlighted earlier in order to stretch experience and develop skill sets We improved objective setting and measuring to get a more aligned and targeted development We encouraged best practise sharing to develop and share knowledge We started to create mentoring within region “Leaders don’t create followers, they create more leaders.” — Tom Peters
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 13Internal Key areas focused on Empowerment Empowerment became a pillar of our strategy. Responsibility in many areas such as forecasting, budgeting, business case compilation etc. was passed further down into the field. We became very much more open on financial performance and other key challenges in the region. We actively grew many employees experience in order to facilitate even more empowerment within the region We focused on local FMs building strong relationships with CFOs and MDs so that they are positioned in very much more of a strategic level rather than pure operational Breaking the silos This was an important mind set change for the whole team. We now look at many topics and challenges as an EMEA region not just on a Sub regional level We share information and data which in the past was kept on a regional or EMEA level We network within the region when common or unusual challenges are encountered We try to drive a more solution focus approach to our clients referencing where solutions have worked in other parts of the region and GFM worldwide
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 14Internal Key areas focused on Introduce some fun into our way of working Given some of the pressures of work it important that we can at times have a sense of fun or humour to provide some release of pressure This is very much personality driven but I do sense the management team and their sub region teams can enjoy the odd joke and humour when appropriate at times You do n’t stop laughing because you grow old. You grow old because you stop laughing – Mark Reynolds
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 15Internal So is it working for our clients? ‘However beautiful the strategy, you should occasionally look at the results’ – Winston Churchill Validate in your 121s with senior and line managers, have your team do the same Surveys and plenty of them ‘Design think’ solutions with your clients Could we do it better? Be prepared to evolve or shift emphasis based on those ongoing validations If you do need to change bring the whole Facilities team along on the reason for change and how it will improve matters
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 16Internal
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 17Internal …………..and the future???
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 18Internal What do Facilities do? They are the people that keep the lights on and air conditioning working They sort out the security badges, cleaning , catering etc. They are the people that provide the world class infrastructure and real estate strategy to enable our business to be successful
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 19Internal GFM it will be a continuing journey GFM formed GFM current state GFM future state
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 20Internal
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 21Internal FOUNDATIONS Business partnering BEHAVIOURS Need to listen Solutions focused Find common ground What is our value proposition? Be a strategist Pursue world class operational excellence Focus the team on the principles of effective partnering Celebrate success Foster innovation
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© 2015 SAP
SE or an SAP affiliate company. All rights reserved. 22Internal THANK YOU
Editor's Notes
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