New needs. new solutions?


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Whitepaper published after the Workforce Futures 2012 in London and retracing the various options existing in Facilies Management at the moment

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New needs. new solutions?

  1. 1. For more information on Facilities Management: Facilities Management New needs. New solutions? i-FM would specifically like to acknowledge the sponsors of Workplace Futures 2012.
  2. 2. Contents 1 About this White Paper & the Workplace Futures 2012 Conference Page 04 2 Introduction Page 06 3 Sustainability: where to from here? Page 10 4 Beyond FM: meeting the sustainability challenge Page 14 5 The Workplace: planning for an uncertain future Page 18 6 Buildings of the future, services of the past Page 22 7 Technology in FM: software, shelfware, nightmare Page 28 8 What is FM anyway? Do we need a new story to tell? Page 32 9 Property: how to be a good juggler in a tough market Page 36 10 Procurement: defining what you need and how to get it Page 40 11 International trends: learning from others Page 44 12 Marketing, positioning, branding: what does it mean; how do we do it? Page 48 13 Communication in FM: is social media the future? Page 50 14 Bridging the gap: Communication between clients and suppliers Page 54 15 Conclusions, lessons & advice Page 58 16 Acknowledgements Page 62 i-FM would specifically like to acknowledge the sponsors of Workplace Futures 2012. Facilities Management: new needs. new solutions 03
  3. 3. 1 About this White Paper “FM is an essential The annual Workplace Futures conference has become a landmark related to - and often deeply involved in - strategic planning and decision- in the UK facilities management making at private and public sector management calendar. The 2012 event applied the organisations alike. Who is characteristic Workplace Futures responsible for ensuring the discipline, and a triple focus on the current market workplace is clean, safe and fully multi-billion pound situation, emerging trends and future compliant with all relevant legislation? opportunities. Who can plan and implement the business sector consolidation of accommodation Under the theme new needs; new resources; or manage the move to a employing hundreds of solutions?, the conference was new HQ in support of growth? Who thousands of people ” shaped around some of the central challenges facing UK FM as it knows which buildings in a portfolio are the most energy efficient and begins to reach some maturity. The what can de done to improve the essence of that theme was this: poor performers? More often than not, the answer in each case is the FM is a business discipline and a facilities manager. vast service industry. It is a simple service delivery requirement and a As we emerge slowly from some of mission-critical support operation. the most difficult economic times in Given that huge range, what does the living memory, it is clear that the future hold - more of the same? Or world has changed for facilities something quite different? Is FM management. Extraordinary change ready to face up to the big was already underway, in such areas challenges and define its own future? as technology, demography, work methods and the environment / A carefully selected expert panel sustainability nexus; but deep shared their own experiences, views recession has reshaped client needs and insights on a range of topics and expectations. around this theme in February 2012. This paper captures that invaluable FM has been a true success story material. over the past two decades. To continue on that path, it must Facilities management is a big, continue to demonstrate diverse and maturing area of understanding, flexibility and business. Tactical in its day-to-day determination. operations, it is nevertheless closely Facilities Management: new needs. new solutions 05
  4. 4. Martin Pickard2 Introduction Conference Chair 2012, Managing Director, FM Guru “many of the changes The discipline of management and the FM industry facilities Meanwhile ‘green’ issues, once fringe subjects that could be ignored that has developed to support it or embraced according to the in the last few years have both grown in complexity and prevailing mood, have become are long-term maturity over the years in response mainstream features of corporate to the ever-shifting social, economic reality, with increasing legislation and structural change in and technological landscape. As the regulation around energy and the marketplace ” nature of work itself changes, so does the design and operation of building design coupled with new levels of expectation and moral the workplace, as do the drivers positioning from building occupants, behind an organisation’s facilities customers and investors. The impact decision making. of the Green Deal and of zero carbon building designs has yet to For this reason the annual Workplace be calculated. Futures Conference is an important feature in the facilities management These challenges are being business calendar, providing a yearly embraced by some consultants, snapshot of current status and a designers and engineers; but many focus on emerging trends coupled are still struggling to adapt old with the forecasts of industry experts. designs, systems and infrastructure After three years of economic to the emerging agenda. As new turmoil, the talk at the 2012 event was generations enter the workplace they a heady mixture of harsh realism and bring different demands, but the confident optimism about the diversity of age, culture and opportunities ahead. workstyle that now needs to be accommodated within tighter This buoyant mood is mirrored in the financial constraints means that wave of positive news emanating compromise is likely to be more from Asset Skills, the sector skills common than revolution. council that represents much of the facilities supply chain. With £5m of Waves of change new funding already secured, it In contrast to earlier waves of looks as if skills improvement will change that led to the widespread play a key role in helping to lift the adoption of system furniture in the industry out of recession and 1970s or open plan offices in the towards sustainable growth. 1990s, the demands on today’s facilities managers are unlikely to be The emergence of a new generation addressed by a simple redesign. of facilities leaders with a fresh skill set is vital as the realisation begins to They may require a more set in that many of the changes fundamental rethink of the real witnessed in the last few years are estate and facilities paradigm, taking not mere aberrations, but long-term a more strategic view of structural change in the facilities organisations’ operational needs. marketplace. The facilities supply chain is having to adapt to tougher This cannot be achieved without procurement and lower margins in a appropriate levels of business more mature and competitive market. intelligence and the knowledge and Facilities Management: new needs. new solutions 07
  5. 5. “the facilities industry border manner, the number of facilities service providers able to lost in the economic fallout of the 2008/9 recession. match this capability is still in the UK is a huge constrained by the difficulties of Despite all this change, success story; but we different language, market communication remains the most conditions and regulation. As a important competency in the must embrace change result, competition is less intense facilities manager’s armoury, and than in the domestic market with just tried and tested techniques for as we have done a handful of major players engagement, collaboration and trust before ” challenging for some very large must be incorporated alongside the international contracts. use of new communication technologies and the growing powerinformation systems required to These big deals seem to be mostly of social media.inform that process. Traditional driven by global procurement teamstransaction driven models of whose appetite for bargain prices This year’s conference saw theoutsourcing, asset management and through ever increasing economies debate open up far beyond the hallcost recovery are being replaced by a of scale often falls at odds with the as facilities professionals around themore integrated workspace strategy, more informed service-led world followed the proceedings onnot divided by the boundaries of requirements of their internal clients. Twitter and Facebook, askingdifferent professional disciplines but In the UK market, such tensions have questions and making commentsfocused on corporate need. contributed to a commoditised view throughout the day. While some of some services with more focus on contributors to the debate describedIn the corporate world this price than value and an inevitable FM as ‘fractured’ and ‘dysfunctional’,convergence of real estate and deterioration of relationships I was personally encouraged by thefacilities functions has already between suppliers and their clients. quality of the discussion.happened at the most senior levels.However, within the facilities supply New realities The facilities industry in the UK is achain, our CAFM systems, Evidence seems to show that the huge success story, deliveringoutsourcing models, property service providers who are achieving continued growth right through thetenure and workspace design have the most consistent levels of most difficult economic period of ourall been slower to adapt to these success in the current market are times. It is clear that things are notnew demands. those who are embracing the new going to ‘get back to normal’: the commercial realities and competing rules of engagement have changedOne area where this has been robustly for each opportunity while forever, and we must embraceevident is in the international FM developing an ever wider range of change as we have done Globalisation is arguably the value-focused service offerings.most important factor currently The FM supply chain must respondshaping the world economy. Communicating this value effectively to changing customer needs, newAlthough it is not a new and consistently while developing communication challenges and tophenomenon, the changes it is strategic customer relationships in a the new market landscape. If we do,bringing about now occur far more spirit of honest entrepreneurialism is then FM will continue to deliver realrapidly, spread more widely and proving more successful for both value to government, society andhave a much greater business, large and small businesses than the business in the next five years andeconomic and social impact than more adversarial style being beyond. The evolution will continue,ever before. pursued by some contractors who but FM is by its very nature a fluid are resorting to claims and counter- and dynamic discipline and theWhile businesses are increasingly claims in an attempt to claw back future looks pretty good to me.comfortable operating in a cross- margin ground they feel they have08 Facilities Management: new needs. new solutions
  6. 6. Ant Wilson3 Sustainability: where to from here? Director - Sustainability & Advanced Design - Building Engineering, AECOM “our focus needs to be We have come a long way since Dr Gro Harlem Bruntland published a Focus on buildings in use It is becoming clearer that our focus report called ‘Our Common Future’ needs to be not just on buildings with on how well we for the World Commission on low operational energy. It must also Development. This set the agenda be on the design of low embodied maintain our buildings for sustainable development and energy/carbon buildings, on how and on how we occupy was shortly followed by the 1992 Rio well we maintain our buildings and Earth Summit which gave us the on how we occupy and manage our and manage in a phrase ‘Local Agenda 21’. We have building stock in a sustainable way. come a very long way in the last In August 2011, the government sustainable way” twenty years - but where do we go published the document ‘Enabling from here? the Transition to a Green Economy: government and business working The British government has to together’ which sets out where we respond to many European need to go from here. In December Directives and we have our own UK 2011, government set out ‘The law to follow, too. Much of what Carbon Plan: delivering our low needs to be done is outlined in carbon future’ which can draw upon government policy documents. The powers in the New Energy Act 2011 European Energy Performance of published on 18 October of that year. Buildings Directive of December 2002 put many of our current Yet, sustainability is not just about policies in place. The Directive was energy and carbon. It covers re-cast in May 2010 and is often resource efficiency and we are referred to as EPBD2. These learning to do more with less. We all documents mandate that we look at need to embrace the fact that we calculating the energy and carbon need to use less oil, gas, water, steel, performance of buildings and have aggregates, copper, timber, etc. guided us towards performance- Sustainability has to do with living based design. In essence, if we do within the planet’s resource system. not design low energy/carbon This has become much harder as the buildings, they will not be built. All of world population has increased and this supports the UK Climate continues to rise. In addition, living Change Act of 2008 which set us standards have risen across the legally binding targets to reduce globe and those in developing carbon dioxide emission by 80% countries are demanding equivalent over the levels in 1990. lifestyles to those in the richer nations. UK policy on sustainability is With the new financial pressure changing rapidly with new being experienced in Europe, I documents and guidance coming believe we should really be out almost weekly. In the summer of embracing the challenges outlined in 2011, we saw the Low Carbon the Stern Review on the economics Construction Action Plan launched of climate change. To have a real which promotes the concepts of future, we must promote occupant ‘whole life carbon’ and the use of behaviour that embraces living within building information modeling, or the limits of our planet – often BIM. referred to as ‘one planet living’. Facilities Management: new needs. new solutions 11
  7. 7. “one thing is very To this end in the environment,planning policy and built developments. Each report covers three key areas: operational carbon, Building Regulations are continually embodied carbon and how to clear for all of us: we changing with a major review achieve BREEAM ratings of very underway now to come into effect good, excellent and outstanding. The must learn how to next year (2013). Planning for climate findings are fully costed and use keep new buildings change is now commonplace, and marginal abatement cost curves to designing with attention to identify the most cost-effectiveperforming as intended maintainability and flexibility is now carbon savings. seen as extremely important. and work hard at Looking forward, as technology Delivering results advances and the cost of renewable improving the existing We must deliver on cutting our energy declines through cheaper building stock” emissions from all housing stock and solar thermal panels and the non-domestic building stock. We photovoltaic cells, the tough need buildings that are better challenge of zero carbon becomes maintained and continuously easier to achieve. This future will commissioned. Systems such as the embrace the proposed Green Deal Soft Landings Framework for better and pay-as-you-save mechanisms, briefing, design, handover and in- although precisely how the Green use building performance have Bank fits in with other government made people think about post- incentives, such as the Feed in Tariff occupancy evaluation, evaluating (FIT) and the Renewable Heat how buildings actually perform from Incentive (RHI), still needs to be a comfort/well-being perspective as explored. well as an energy/water consumption perspective. Nonetheless, one thing is very clear for all of us: we must learn how to We have targets to achieve zero keep new buildings performing as carbon buildings by 2019 set by our intended and work hard at improving government and, following EPBD2, a the existing building stock. The requirement to have near-zero existing stock must be refurbished, energy buildings by the end of seeking to bring it into line with the December 2020. To help with this near-zero energy philosophy. Clearly, change, the steel sector funded a if we are to maintain and improve three-year research programme that building performance through the investigated how zero carbon fine-tuning of our building systems, buildings could be achieved today. then the role of facilities managers The project was called Target Zero. must become increasingly This was funded by Tata Steel and important. The British Constructional Steelwork Association (BCSA) and the findings are published online ( Five reports are now available to download from the Target Zero website, covering schools, warehouses, supermarkets, office and mixed use (hotel)12 Facilities Management: new needs. new solutions
  8. 8. Dave Wilson4 Beyond FM: meeting the sustainability challenge Director, Agents4RM “in most organisations It may be that the only people who care about the future of facilities In fact, I believe these are simply poles on a broad axis of options available to management are those in the facilities service users, and that in practice the the delivery of management industry. There is vast majority of organisations use certainly neither proof nor reason that combinations of these factors from sustainable goals is our clients much care about how our different sources at different times to achieved through the services are described, packaged or achieve their objectives as operational formulated. For them, all that matters is circumstances change and their FM activity” output: what do we contribute to their challenges develop. The only ‘wrong’ organisation’s objectives and the ability answer, I suggest, is in being too to deliver its core services? wedded to any one of the above options – which is why we believe that And so for any discussion about the intelligent independent advice is future of FM, we risk talking only to needed to help frame decisions on how ourselves – a most self-indulgent and to obtain FM service delivery. dangerous behaviour which could lead to us forgetting that our customers are, By this point, you may be wondering and always will be, our raison d’être. what any of this has to do with sustainability. And the first response is The customer perspective that, if the FM industry is to have a Let us therefore consider not where FM sustainable future, then we need both is going, fascinating as that discussion to foster a more flexible set of offers might be, but where our customers are from the supply chain and to going and where there might be an encourage our clients to be less opportunity for FM to go as well. In prescriptive in the models they adopt, doing that, I don’t want to lose sight of making their choices on the basis of the great changes that have been informed options, not ‘one size fits all’ made to move what we do from simple solutions. single service propositions towards an integrated service offer. But it is worth More fundamentally, though, the FM challenging some of the assumptions industry does have a serious problem. that have arisen in the last five years or Its services are being rapidly so, which I believe have created an commoditised – the value add driven artificially limiting set of options for out, often because benefits of clients. For example, it seems to be integration have not been widely held that these are mutually demonstrated, or perhaps because exclusive alternatives: some parts of the supply chain focus on ‘service delivery solutions’ and not • Workplace management vs facilities on the management elements of management facilities. Clients too are culpable in not • Tactical delivery vs strategic obtaining the best outcome, by contribution consistently seeking the cheapest • Operational stability vs service solution rather than the most effective development option and by engaging in short-term • Risk minimisation vs value add relationships which detract from the • Local vs international sourcing ability to gain understanding of an • TFM vs single service organisation’s needs and strategy. • In-house vs outsourced provision. Facilities Management: new needs. new solutions 15
  9. 9. "while the future of option and by engaging in short-term relationships which detract from the Imagine, if you will, that we take off the blinkers that we have created for ability to gain understanding of an ourselves by talking about facilities FM itself may not organisation’s needs and strategy. management. Think not about what we Whoever you think is responsible, the do – forget cleaning, security, catering matter to our basic facts for the FM industry are and maintenance. Forget offices andcustomers, what we can undeniable: margins and profits are factories and shopping malls and so being driven down, relationships are on. Rather, concentrate on the skills do for them should ” short and change too often, and our and processes we employ, the collective value proposition is strategic planning that we do … and evaporating - cost cutting and cost apply those to the planet. control is what we offer, and rarely more than that. Doing that, imagine us as stewards of the planet – at whatever level we From sustainable to responsible actually work, just think of what we do And so, eventually, we come to as being about helping our sustainability. I believe that in most organisations to act responsibly, organisations the delivery of towards all stakeholders and towards sustainable goals is achieved through the world we inhabit, while still the FM activity. Although most contributing towards commercially or organisations are focused at the economically viable operations. We moment on carbon reduction, where can, if you like, call that responsible the facilities manager’s ability to drive management. And I suggest that reduction in energy consumption and facilities management as an industry, to source low carbon materials is vital, profession or discipline (as you prefer) carbon is obviously only one part of a is uniquely placed – with theFigure 1: The IFMA definition of FM sustainability programme. Again, processes, skills and commitment – to facilities managers often have the key deliver responsible management role to play in formulating and techniques. That opportunity, to delivering policy objectives: our skill set seriously add value to our and motivation, along with our pivotal organisations and create a truly position in organisations and our long- sustainable operating model for them, standing commitment to reducing is one we believe that our industry must waste gives FMs a unique opportunity embrace if it is to have a future of its to be the leaders in this activity. own. And while the future of FM itself may not matter to our customers, what However, I have argued before that we can do for them should - if we work there is more to this than just together to articulate it. sustainability: a large part of the corporate responsibility agenda can be discharged by facilities managers. If you think that is fanciful, consider how closely our combination of People, Place and Process mirrors the TripleFigure 2: The Triple Bottom Line Bottom Line.16 Facilities Management: new needs. new solutions
  10. 10. Krista Lindsay5 The Workplace: planning for an uncertain future Principal and Workplace Practice Leader EMEA, Gensler “the design of the employee and percentage of vacant space following closely. As one might While the traditional environment remains important, office expect, in the current climate trends most organisations understand that physical work across global portfolios tend towards work doesn’t always have to happen consolidation strategies. Facilities there. We have undertaken environment is strongly managers are finding themselves significant research into the linked to business asking whether they should relocate motivations of the three primary or stay put when leases are coming generations - the Boomers, Gen- performance” to an end; they are looking at Xers and Millennials - and across all subleasing options for excess space groups the notion of some form of and working out how downsizing can flexible working is important. make enough difference to the Volatility in the global economy, bottom line. The Boomer generation comes from a generational shifts in the workforce, background where the core value of rapid evolution of technology and the Gensler has defined six basic real hard work is upheld and respected. ongoing and increasing commitment estate options for companies looking As would be expected, they are often to sustainability have collided - and at consolidation strategies: in positions of power and are most the result is a significant impact on likely to hold the traditional ideals of workplace environments and real 1. Stay & pay - Should we just leave hierarchy of space. However, when estate strategy. the space the way it is and ride out surveyed 87% still voted in favour of a the cost? flexible workplace with an element of The economy 2. Relocate - Is it possible or even mobility. The uncertain global economic smart to move? climate has forced companies to 3. Compress & dispose - Could we fit Generation X was brought up to emphasise efficiency in managing in less space and get rid of the value independence. They are the real estate holdings more now than extra? ‘latch key kid’ generation and, as ever. And this combined with the 4. Compress & save - What if we such, a mobile work environment impact of globalisation means that darken space and eliminate services comes naturally. They adapt well to workplace thinking has generally to it? change and have engaged with the shifted from a single-site approach 5. Compress & sublet - Could we fit rapid developments in technology to a portfolio-wide approach. into less space and sublease so that over the last 20 years. They are we could pick it up later? resourceful and self-sufficient, and Single source procurement features 6. Enhance the environment - Could work to live rather than live to work. prominently in current global real it make our people more effective, Generation X workers attach estate strategy, whilst regional compensating for increased real importance to human interaction differences pose challenges to how estate cost? however, and are happier engaging the workplace must accommodate face to face. Nothing beats a lunch. the different needs across a variety Generations in the workplace of geographies, cultures and global For the first time we are seeing The Millennials (or Generation Y) are economies. The key is finding a almost equal ratios of men and the fastest growing segment of the balance between standardisation women in the workplace and a broad workforce. They are technology- and cultural identity, and not generational diversity, with three driven, not remembering a time imposing a ‘cookie cutter’ solution generations often co-working and without the internet. Their preferred across the portfolio. sharing the same environment. communication is digital and the concept of a work–life balance, Cost per square foot continues to be This provides a number of antiquated. Millennials aspire to a the primary performance metric for challenges for the designer. ‘bring your own device’ work-life real estate, with square feet per blend. Facilities Management: new needs. new solutions 19
  11. 11. Workplace utilisation their desks. This fact has led many SustainabilitySince 2005, Gensler has been companies to realize that 1:1 desk As long-term proponents ofconducting surveys of US and UK ratios leave them with an under- sustainable design, we know that aoffice workers to determine how the utilised office, often with large areas sustainable approach producesworkplace environment affects their of space without people. To leverage results that matter to clients: reducedproductivity, creativity and attitudes space and make it work harder, energy and operating costs, brandabout work. The 2008 survey was an companies are implementing advantages, longer propertyin-depth look at work mode drivers, mobility schemes to increase space lifecycle, enhanced humanseeking to understand in detail the utilisation and also, more importantly, performance and overall betteractivities people engage in to get space effectiveness. quality of life. We also know thatwork done and the spaces needed increasing government regulationsto support them. Forward-looking organisations are and corporate social responsibility investigating mobility strategies at a requirements will keep pushing theThe research indicates that activities global level and focusing on how boundaries, forcing us as designersin the workplace - work modes - can their workforce uses its space. A to think ever more grouped into four key elements: mobility strategy is not simply a fewfocus, collaborate, learn and employees working from home from To conclude, we are on the brink ofsocialise. These work modes provide time to time. It’s a fundamental an exciting new shift in the way wea framework to identify the ways change in work practice. think about the is used and allocated. Developments affecting both real Technology estate strategy and workplaceThrough this understanding of how Technology is without doubt the environment will see the officepeople work, organisations can primary factor leading the change in change dramatically - however, weharness the power of the workplace the way we are able to work. An age believe in its new and evolving form itto support their highly valuable of computers has removed vast will remain very much part of theworkforce, drive innovation and amounts of clerical processing from fabric of our working lives for quiteadvance their business objectives. the workplace. The move from CRT some time yet. to flat screen monitors opened upOur surveys concluded that top- the possibilities of bench working,ranked companies have better and the move to mobile devices anddesigned workplaces than average wireless networks provides thecompanies and that the design of opportunity to release us from thethe physical work environment is desk completely. Flexibility is keystrongly linked to business now, with spaces designed for rapidperformance. Companies with higher reconfiguration. Mobile videoprofit growth had the highest number conferencing technology is alsoof survey respondents who were changing the landscape. Wheresatisfied or highly satisfied with their previously companies would invest inphysical environment. large expensive telepresence set- ups, smaller flexible environmentsWhen conducting the research we can be used in conjunction withalso found that often as much as mobile devices.50% of the time people are not at20 Facilities Management: new needs. new solutions
  12. 12. Paul Worland6 Buildings of the future, services of the past Business Development Director, EMCOR Group UK “FM service providers The facilities management sector faces a period of significant change one-desk-per-worker model no longer applies. Embracing new with increasing economic and technology can increase overall can play a decisive and environmental pressures. There has worker efficiency and productivity positive role” been a dramatic increase in global consumption and carbon emissions whilst also saving costs. Additional savings can be made through which is having a detrimental effect ‘greener’ practices, such as on the planet. There are shortages in reducing waste by adopting base products such as water, energy sustainable supply chains and and primary materials with minimising water consumption by subsequent increases in costs, installing self-cleaning building along with the implementation of products such as ‘smart glass’. tighter governmental controls and standards. Assessing requirements There is no ‘one size fits all’ answer In the UK, this situation is and each building and customer exacerbated by ageing building requirement should be assessed stock, constrained building fabric individually to determine the best and inefficient use of space. overall integrated solution. This Customers are looking to the FM solution may require a team of industry to provide cost-effective multiple suppliers and technology solutions whilst also improving on providers in order to collaboratively service quality. It’s a challenge draw on their individual expertise. where FM service providers can play The FM provider is ideally placed to a decisive and positive role, deliver this to the customer in a especially when they are embedded hassle-free integrated offering. To within customers’ organisations. By ensure this is provided efficiently, suggesting, implementing and sustainably and cost-effectively, it is encouraging adoption of energy- important to consider the whole efficient practices, technological supply chain. For example, at improvements and alternative ways EMCOR UK we are working with of working, FM companies can help Action Sustainability to implement a clients reduce their dependency and new British Standard, BS 8903, for expenditure on energy and other reducing waste in the supply chain. costly resources, safeguarding profitability while meeting The introduction of new technologies environmental targets. and working methods is not enough on its own. To ensure new ways of The way we work and how buildings working are successful, it is essential are used has changed, and with the to gain buy-in from the outset, and help of technological advances and building users should be educated with the right implementation, there and involved throughout the process. is further scope within working This is an important step in practices themselves. Greater behavioural change: without the working mobility, with the ability to cooperation of building occupants, communicate via WiFi, means the old new processes and schemes can fail. Facilities Management: new needs. new solutions 23
  13. 13. Learning from the pioneers base materials. In Abu Dhabi, the Demanding moreAlthough some organisations are world’s first fully sustainable city, As you will see from the abovebeginning to adapt and change the Masdar, is in development and has examples, change is already takingway they work, others are already the target of being totally self- place - and the frequency and extentshowcasing buildings of the future sufficient. The aim is that Masdar will of this is sure to increase in thewithin their portfolio. provide the highest quality of life and coming years as communities and work environment with the lowest organisations begin to realise theIn the UK, KPMG is setting the pace environmental footprint. It will utilise overall benefits of such developments.with their new office development in cutting edge R&D, pilot projects, The services of today will not be theCanada Square, London. Here advanced technology and materials, services of tomorrow. There haveemployees work within an open plan, and revolutionary sustainable been many developments includingnon-assigned desk environment, construction. It will be a ‘smart city’ self-clean materials, photovoltaicwith a range of alternative areas for with sustainable power generation energy, improved diagnostics, remoteindividual output and collaboration. and sophisticated tools to monitor monitoring and control, wirelessCombined with practices such as power, water and CO2 generation. technology and anaerobic digestionsmart metering and lighting linked to Six buildings have been completed of waste for energy. Theseavailable daylight, this innovative so far in this 6 km² city which is improvements will lead to less waste,approach to building utilisation has expected to have 40,000 residents greater productivity, improvedresulted in a 40% reduction in and 50,000 commuters ultimately. employee satisfaction and decreasedenergy consumption and a 50% costs, and this is merely the start!reduction in carbon emissions. Another example that shows the possibilities of such advancements It is imperative that the FM industryThe building is 400,000 sq ft with an can be found in Songdo, South remains on top of technologicaloccupation of 5300 people. It is Korea, where the largest private developments and evolutionary waysfocused on providing quality space sustainable real estate venture in of working to ensure that we stayto maximise collaboration, teamwork history is taking place. Measuring 6 competitive. Customers will soon beand individual effectiveness. Ian Tew, km² in size, and built on an artificial demanding more, and cutting costs -Head of European Workspace, sees island 56 km west of Seoul, Songdo along with a higher quality of servicehis role as ‘minimising peoples’ will utilise the best technology - will no doubt be on the top of theirdowntime’, not just running the available and will include transport agenda.facilities. What is really admirable is control hubs, wireless technology,that the KPMG workspace and telepresence screens, public Not only do FM companies need tofacilities team does not plan to stop communication systems and smart be aware of these newthere: they continue to challenge number plates. Songdo will be a fully developments and customerworkspace utilisation and are wired intelligent city with the ability to demands, but they also need toworking to achieve 50% non- regulate and produce energy to fulfil ensure employees are up-skilled toassigned desking and a 50% its own needs. This will include the maintain and operate the newreduction in their carbon footprint. implementation of rooftop systems and buildings of the future. vegetation, home waste removal, It is unclear how quickly theseIt would seem that FM is changing segregation systems and home developments will occur, but it doesacross the world. Facilities and cities energy generation systems. pose the question ‘are we ready forare being designed and built to meet the change?’.the future shortages in energy and24 Facilities Management: new needs. new solutions
  14. 14. Graeme Hughes7 Technology in FM: software, shelfware, nightmare Chief Executive Officer, Innovise Software “view technology as a There is no doubt that software enables facilities management deliver its true organisation. value to the processes to become more long-term business streamlined. Experiencing a surge in The regular users are the key to popularity over recent years, FM and success. We have been involved in investment rather than workforce management software a number of projects where an a quick-fix remedy” packages (outside of CAFM) have organisation has tried and failed not only become a tool through because they simply didn’t engage which an organisation can gain properly. Add to that the cost of greater control, but are largely seen purchasing and implementing a as a staple strategic element in new software solution, and all of a ensuring optimisation of a business. sudden it becomes a daunting, time-consuming and very high-risk Fundamentally, the goal of prospect. In a busy world where technology in FM is to help time is valuable, it may be tempting management and operations to to skip this initial phase of research deliver the best possible service at and stakeholder engagement – but the least possible cost. We would don’t ever be tempted to short-cut advocate investment in technology this part of your journey. It is vitally to increase profitability through important that this groundwork is working more effectively – but we completed to ensure that your also caution organisations to take business is investing into a software the time to properly evaluate the solution that will actually make a specific needs of the business positive difference to the way that before jumping onto the promises you are working. offered by new technology. It is essential to view this as a long-term The other key message is that there business investment rather than a is no one solution out there that will quick-fix remedy. match the exact needs of a company. To pick a software Preparation is critical package off the shelf and see Considering what software would everything change overnight is not best suit your business and something that is going to happen - fathoming out exactly what this especially if you have no concrete software does and what it will idea of all the problems that need actually deliver can be confusing. rectifying or the objectives that Similarly, not understanding what need satisfying by the new each stakeholder will gain from the technology. Many evolve or get investment is a sure-fire way to created with the new solution. Know making a bad decision. Everyone, what you want to happen: define from the board to the frontline what your company sees as being teams, needs to gain from the acceptable and what needs to investment – something that is too happen for the company to be rarely understood, and as a result, exceptional…and then begin your the workforce (who are often search for a software solution exposed to the technology on a based on this information. Manage daily basis) don’t buy-in and the on the outputs, not the inputs. system either fails totally or fails to Facilities Management: new needs. new solutions 29
  15. 15. “progressive Once a business has realised its need for a software solution, Getting buy-in Once an organisation has justifying the cost of implementing completed its self-evaluation, organisations are a new system is the second hurdle researched the software options for organisations looking to find a that could be implemented to making their more efficient way of optimising satisfy the objectives and identified technology decisions workflow and sharing and obtaining the areas where a software solution accurate management information. could be best applied to save costs with a focus on Understanding how increased yet increase productivity, the final efficiency and tighter processes challenge is to ensure that the processes” will reduce your largest costs is the business as a whole is truly cornerstone to any business engaged with the new technology. strategy that aims to save costs and Unless this is done successfully, optimise workflow. For instance, any new way of working will not be payroll comprises a huge part of whole-hear tedly adopted, the the overheads for any service- technology will not be used based business. Such companies properly and new procedures will have to tread a fine line between fail, often immediately. paying an attractive salary to their employees and remaining Technology is indeed a critical tool competitive for their clients. For and investing in software that companies whose employees tend increases business productivity is to operate at the lower end of the always a good bet; but with the remuneration scale, salaries and above information in mind, it is benefits are often as generous as important to not rush out with the they can be, but are not too company credit card just yet. different to the minimums set out by government legislation, removing Progressive organisations are any scope for efficiency savings in making their technology decisions that respect. Where margins are with a focus on processes, so tight, it becomes even more critical deliberation as to what the software for service providers to minimise allows you to do rather than the any unnecessary costs. As payroll features of the software itself is the largest expense item, needs to take place – be careful not managers need tools to ensure that be blinded by the promise and ancillary costs are identified and understand what it is that your reduced or even eliminated. company actually needs. Knowing how much money can be saved through tightening up on this process, as well as other areas where money is easily haemorrhaged (staff absence, unpaid invoices due to ill-planned or incomplete work, as examples) would provide a sufficient case for investment in a software solution.30 Facilities Management: new needs. new solutions
  16. 16. Barry Varcoe 8 What is FMIntroduction anyway? Do we need a new story to tell? Global Head of Corporate Real Estate & Facilities Management, Zurich Financial Services “there are arguably Facilities management as a discipline has grown and developed 1. Workplace: 12/1.3/80 These three numbers need to be successfully over the last 25 years or remembered and understood. They lots of areas and issues so. It is now a recognised component describe where the best workplace of the ‘shared services’ infrastructure leaders are headed in terms of around which the FM of the enterprise value-chain. In my average occupancy efficiency across industry needs to re- view, however, it has reached a crisis their office portfolios: point in its evolutionary path. invent itself. Here are • 12 sqm (net internal area) per Two significant drivers have caused workspace a handful of what I this – the massive economic and • 1.3 supported occupants per societal changes the world is workspace think are the more currently experiencing, and the • 80% utilisation per workspace. important ones” rapidly diminishing shelf-life of the current FM value proposition (now There is little doubt that matching the 20+ years old). design, configuration and use of office workspaces to the ways organisations are now working is A tired proposition increasingly becoming mainstream. If you take a look at the websites of The significance of these three the current FM service providers in numbers is perhaps greatest when the UK you will soon realise that, for reflecting on the potential impact they the most part, they are all saying the have in shaping organisational same things. The words that occur culture, communities and work over and over again are ‘reduced patterns. But in these economically costs’ and ‘improved efficiency’. The stressed times, the scale of possible industry has been saying - and selling cost reductions they embrace cannot - this for decades. The problem this be ignored either. If your existing causes, however, is that cost (or numbers are 20/0.8/50, then moving investment) and process efficiency to 12/1.3/80 represents a staggering are a means to an end, and not the 63% improvement in efficiency. end or outcome itself. As an industry, FM therefore has not been selling the 2. It’s about people first, value it brings, but has backed itself then real estate into a position of being an Following on from the march of the increasingly marginalised commodity, truly flexible workplace, as with the wafer-thin profit margins that organisations become more complex goes with that. and dispersed, the strength of community and a strong cultural If the industry is to have a bright future, identity become increasingly it needs to change itself and quickly. important and acts as glue to bind people together. This relates directly A new story to a need to see the FM role from a There are arguably lots of areas and different perspective. It is no longer issues around which the FM industry exclusively about bricks and mortar, needs to re-invent itself. Here are a buildings, facilities or financial assets; handful of what I think are the more rather, it is about people as well. The important ones: space is provided for people to Facilities Management: new needs. new solutions 33
  17. 17. “achieving undertake value-adding activity in, either as employees or customers. A generation of workplace users to demand it. While most of us reading primary focus therefore needs to be on this article can be considered to be differentiation will understanding what those people digital immigrants, the new really need and how they will relate to it. generation is made up of digital become increasingly natives. Furthermore, they have important over the 3. Coordinator to integrator access to unparalleled knowledge FM outputs involve bringing together sources. The incumbents of the FM next decade” the deliverables from many separate industry must overcome any inertia or service sectors into a cohesive misinformed comfort zone, and align working or customer environment. For migratory digital skills to these vast many years we have done this knowledge resources and their one reasonably successfully through the big advantage – experience. And the coordination of these otherwise siloed change needs to be both structural components – with a thin veneer of (innovation process, systems and management across the top. We investment) and cultural (behaviour). seldom truly integrate them, however. When we figure out how to integrate 6. Differentiation these resources and competencies What do you want your customers to into new end-to-end service remember you for? What makes you propositions, we will take a big step stand out from the crowd? Achieving forward. differentiation will become increasingly important over the next 4. Beyond service to experience decade. Key to this will, for many, be For an industry that still too often a change of perspective, away from doesn’t get the basics of service emphasising what they do and right, moving on to the next step might replacing it with a conversation seem ambitious. But the world is around what they achieve. moving on, and we need to keep pace. Increasingly what differentiates 7. From cost to value – our new story and wins new customers is the In my view we need to make the next experience you create. This is true of 10 years a decade of value, not cost. the workplace, too; and the good FM needs to demonstrate the news is that it doesn’t need to cost positives about what it produces, and much, if anything. In my experience, not merely the reduction or removal of great customer experiences start in negatives. If we can focus more on the mind of the deliverer through their our benefits and outcomes and attitude. Throw in a reasonable collect the evidence to prove them, amount of innovation and creativity, our message will become far more and it is amazing the impact that can compelling. Let’s talk about tangible be made. value we add, rather than just the cost we avoid. Perhaps then our relevance 5. Innovation and significance to the enterprise and As an industry we talk a lot about its leadership will be transformed as innovation, but in truth we don’t do well. It needs to be! much about it. In the future, though, we will have to. If nothing else spurs it on, we can rely on the incoming34 Facilities Management: new needs. new solutions