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TITLE (MAIN)
Title (sub)
Perspectives on the FM
Market Development
Glenn Hodge, Vice President – Client Solutions, ISS Fac...
CEUs & CFM® Maintenance Points
You are eligible to receive Continuing Education Units and Certified Facility Manager® main...
TITLE (MAIN)
Title (sub)
Your Feedback is Valued!
Please take the time to Evaluate
Sessions
Log into the Attendee Service ...
4
• TITLE (MAIN)
• Title (sub)
Peter Ankerstjerne
Chief Marketing Officer of ISS World Services A/S
since 2007
With ISS si...
Review Session Learning Objectives
The purpose of this session is to discuss the;
• Evolution of the FM industry from the ...
EVOLUTION OF THE FM INDUSTRY
6
Evolution of FM from the 80’s through 2020
7
Copyright © 2014 IAOP. All Rights Reserved.
1980 1990 2000 2010 2020
Single S...
Shift from in house delivery to service provider
• Large shift from in house to service supplier
• Service model moved fro...
Market is growing overall
9
IFM as a portion of total FM market
10
IFS vs IFM
• IFS: Integrated Facility Services
• IFM: Integrated Facility Management
For the purpose of this presentation:...
IFS will continue to outgrow the market
12
• From the customer perspective
– Integration provides one point
of contact
– I...
13
Tactical Management
Operational Management
Strategic Management
Services&Organizations
Standards&Language
Processes&Pro...
Increased Integration
14
The internationalisation of the FM business
Drivers for internationalisation:
• Pressure to cut cost
• Int. pains – perfor...
Market demand for value added services
16
• Generate greater Value
• Retain employees
• Drive the organizations whole
ecos...
Regulatory changes influence customer behaviour
Cen15221 – 1-7
ISO/TC 267
17
DRIVERS FOR GROWTH IN THE
INDUSTRY
18
Economic and environmental demands
Feeling the pressure:
• Economic pressures and
competition are pushing
companies to eva...
Nationalization and internationalization of purchasing
20
• Cost pressures
• Drive for increased quality
• Demand for simp...
Increased appetite for outsourcing
• Expected growth is 4-5%
• Outsourcing is growing across
– Regions
– Service lines
• C...
22
Value Add through outsourcing
A transparent and streamlined value chain makes
management more efficient and creates val...
Market’s demand for increased value added
• The decision to outsource is moving beyond the traditional core vs.
non-core a...
24
Key points when outsourcing
• Finding partners who can provide support in achieving strategic
goals and reaching overal...
26
1
2
3
4
5
Quality Reputation Price Range National
coverage
International
coverage
Companies with > 354.1M USD in revenu...
CHANGES IN FM DELIVERY MODELS
27
Move from service delivery to service performance
• Integrated vs Independent
delivery
• Self delivery vs sub contracted
•...
Focus for Industries
• Focus on the key market drivers
• Determine what are your core
competencies
• Determine what makes ...
30
The competitive landscape is changing
The FM/CRE market is big and continues to grow
Competition comes from many places...
CHANGING
DEMANDS
REQUIRE A NEW
WAY OF THINKING
31
Service Management 3.0
• Fostering a culture of Service
• Creating a sense of purpose
within the organization
• Engaging e...
33
0%
20%
40%
60%
80%
100%
Time
Workload
Actual Workload
“Staffing to Peak Demand”
Efficient base organization
“Service on...
34
Optimizing the Service Delivery System
Service delivery must be based on….
• What value the customer is getting from the service
• How total quality is perceived...
Understanding Workplace Management
0 20 40 60 80 100
Hospitality services
Internal signage
Leisure facilities onsite or ne...
TITLE (MAIN)
Title (sub)
THANK YOU!
For download of white papers/books;
http://www.issworld.com/en/about-iss/learning-zone...
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IFMA's World Workplace: Perspectives on the FM Market Development

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During the IFMA's World Workplace, we had the chance to drive in to the Perspectives on the FM Market Development. Among others, we presented perspectives on:
- The evolution of the Facility Industry
- The drivers for growth in the Facility Management Industry
- Changes in FM delivery Models
- Changing demands require a new way of thinking

Published in: Leadership & Management
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IFMA's World Workplace: Perspectives on the FM Market Development

  1. 1. TITLE (MAIN) Title (sub) Perspectives on the FM Market Development Glenn Hodge, Vice President – Client Solutions, ISS Facilities Services, Inc. Peter Ankerstjerne, CMO, ISS World Services A/S
  2. 2. CEUs & CFM® Maintenance Points You are eligible to receive Continuing Education Units and Certified Facility Manager® maintenance points for attending sessions at IFMA’s World Workplace. To receive CEU points, you must add the US$15 processing fee to your registration. (Full Event PLUS! registration includes the CEU processing fee.) To Receive 20 CFM Maintenance Points Record your attendance for the three-day conference on your CFM Recertification Form in CAMP. At re-certification time, submit your completed CFM Recertification Form. Managing CEUs: • Log into the Attendee Service Center. http://tinyurl.com/p6y4fxb Your log-in information was sent to you when you registered for the conference. • Click “Start CEU Process” on the left-hand side. • Click “Start” next to the session you attended. • Complete the session evaluation. • Click “Start Test” next to the session. After passing the test, your certificate will be available for download. **If you wish to receive CEUs or LUs from other organizations, you must contact those organizations for instructions on reporting credit hours. 2
  3. 3. TITLE (MAIN) Title (sub) Your Feedback is Valued! Please take the time to Evaluate Sessions Log into the Attendee Service Center http://tinyurl.com/p6y4fxb
  4. 4. 4 • TITLE (MAIN) • Title (sub) Peter Ankerstjerne Chief Marketing Officer of ISS World Services A/S since 2007 With ISS since June 1994 Based in Copenhagen, Denmark Chair of the IFS Steering Group (Key Business Development Initiative) Member of IAOP's Strategic Advisory Board, Fellow of RICS and former Trustee of IFMA Foundation VP Clients Solutions, ISS Facility Services Inc With ISS since 2011 Based in Phoenix, Arizona ISS sponsor for IFMA – FMCC Council 28 years of experience in Engineering, Operations and Finance roles both in manufacturing and facilities Glenn Hodge
  5. 5. Review Session Learning Objectives The purpose of this session is to discuss the; • Evolution of the FM industry from the 80’s to present • Identify the drivers for growth in the FM industry • Changes in FM delivery models • Changing demands require a new way of thinking 5
  6. 6. EVOLUTION OF THE FM INDUSTRY 6
  7. 7. Evolution of FM from the 80’s through 2020 7 Copyright © 2014 IAOP. All Rights Reserved. 1980 1990 2000 2010 2020 Single Service Outsourcing Soft FM Outsourcing Hard FM Outsourcing FM Automation (e.g. CAFM) Contract Management Property Management Energy Management IT Services PFI PPP/BTO Offerings Waste Management Value Driven Design Regional/Global Contracts BPO Workplace Change Management Environmental Performance Sustainable Work Space Source; Adapted from Frost & Sullivan, February 2015 The evolution of FM Outsourcing Service Bundling Service Integration Total FM Sustainability Management Workplace Management Managing Intelligent Buildings Integrated FM Smart City Integration Business Productivity 2015 2015 Hot Issues: • Contract globalisation • Service integration • Business efficiency value propositions • Vested Outsourcing • Adoption of smart building solutions • Active energy management services
  8. 8. Shift from in house delivery to service provider • Large shift from in house to service supplier • Service model moved from single to bundled service delivery • Integrated service delivery will take more market share in the future • WMS (Workplace Management Solutions) and “office hotelling” concepts are gaining new ground 8
  9. 9. Market is growing overall 9
  10. 10. IFM as a portion of total FM market 10
  11. 11. IFS vs IFM • IFS: Integrated Facility Services • IFM: Integrated Facility Management For the purpose of this presentation: IFS = IFM 11
  12. 12. IFS will continue to outgrow the market 12 • From the customer perspective – Integration provides one point of contact – Increased transparency through dealing with fewer vendors – Reduced points of accountability “It’s not part of our core business to take care of services such as cleaning and security. That is why we choose to outsource them. It’s also more flexible to do so than to have these services in- house.” - Nordic purchasing manager, Pharmaceutical Co, Sweden
  13. 13. 13 Tactical Management Operational Management Strategic Management Services&Organizations Standards&Language Processes&Procedures MgmtTools&Systems Integration is (still) at the top of the agenda FM and CRE
  14. 14. Increased Integration 14
  15. 15. The internationalisation of the FM business Drivers for internationalisation: • Pressure to cut cost • Int. pains – performance, productivity and retention of key personnel • Corporate Real Estate IT HR with increased focus on: - Lifestyle of work/NWOW, - Flexibility - Collaboration, - Mobility - Cost of operations - And movement of people < 2000 2010 30-50 Int. contracts Avg. turnover $ 100-500 mill e.g. Motorola, Caterpillar, Shell Pfizer, CSC, P&G, Kraft, HP 2020 >1,000 Int. contracts Avg. turnover $ 50-800 mill e.g. ? 1-2 Int. contracts Avg. turnover $ 300 mill e.g. IBM 15
  16. 16. Market demand for value added services 16 • Generate greater Value • Retain employees • Drive the organizations whole ecosystem – – Social – Environmental – Economical The market leaders are able to provide the client efficiency gains above mere outsourcing… innovation is becoming key, and that requires scale.” - Director General, Facilities Management Association
  17. 17. Regulatory changes influence customer behaviour Cen15221 – 1-7 ISO/TC 267 17
  18. 18. DRIVERS FOR GROWTH IN THE INDUSTRY 18
  19. 19. Economic and environmental demands Feeling the pressure: • Economic pressures and competition are pushing companies to evaluate how they do business • Higher scrutiny after financial scandals • Broader environmental requirements • Increasing focus on Corporate Social Responsibility Looking for: • Companies that are vested in the corporations success • Facility Leaders to maximize the value of their corporate assets • Innovators to deliver new ways of providing service (increased value) • Trustees that will take care of their employees as their own 19
  20. 20. Nationalization and internationalization of purchasing 20 • Cost pressures • Drive for increased quality • Demand for simplification and standardization of services • Reduction of internal soft costs (procurement and finance) estimated at 5-7%
  21. 21. Increased appetite for outsourcing • Expected growth is 4-5% • Outsourcing is growing across – Regions – Service lines • Companies focus on core activities • Simplification and cost savings are key drivers 21 “I would prefer moving to an integrated set-up with a single provider. It seems so much more convenient than our current solution.” - Purchasing manager, Pharmaceutical Co, India
  22. 22. 22 Value Add through outsourcing A transparent and streamlined value chain makes management more efficient and creates value: Drive for efficiency – price, cost, performance and service level dynamics Doubled-up functions are easily eliminated A single point of contact shortens and optimises lines of communication Risks are eliminated by transferring them to a (reliable and sound) partner Someone who mitigates these risks Someone who protects the brand you are building 22
  23. 23. Market’s demand for increased value added • The decision to outsource is moving beyond the traditional core vs. non-core and cost reduction parameters • Customer’s are demanding providers with e.g. – knowledge and competencies to address the customer’s specific needs – the ability to comply with CR and health, safety and environment standards – (credible) risk transfer – the ability to deliver a uniform set of services internationally – The ability to integrate facility services 23
  24. 24. 24 Key points when outsourcing • Finding partners who can provide support in achieving strategic goals and reaching overall success criteria • Transfer financial and operational risks • Strive for Management and Operational Excellence by outsourcing processes and not only tasks • Performance based on balancing quality & cost • Ultimately striving for a Vested Partner 24 24
  25. 25. 26 1 2 3 4 5 Quality Reputation Price Range National coverage International coverage Companies with > 354.1M USD in revenue Companies with < 354.1M USD in revenue Source: Global customer interview program undertaken by a third party Large customers care as much about reputation as they do about price Reputation is a more important parameter for large customers than it is for small customers How important is each of the following criteria when purchasing facility services? (1-5) 4,6 4,4 4,3 4,3 4,2 4,1 1 2 3 4 5 Matching geographic scope HSE/CSR reputation Price Ability to self- deliver Quality Matching range of services IFS buyers rate self- delivery criteria highly How important are the following criteria in purchasing IFS for Multinational companies? Service range Key drivers of outsourcing
  26. 26. CHANGES IN FM DELIVERY MODELS 27
  27. 27. Move from service delivery to service performance • Integrated vs Independent delivery • Self delivery vs sub contracted • People & process vs supply- chain – Managing service – Output vs input specifications • Value vs cost 28
  28. 28. Focus for Industries • Focus on the key market drivers • Determine what are your core competencies • Determine what makes you successful • Determine what is core to your products and services – what is a prerequisite for you to be competitive in your market • Liberate resources by outsourcing of “non-core” services 29
  29. 29. 30 The competitive landscape is changing The FM/CRE market is big and continues to grow Competition comes from many places and continue to drive the development Everybody is fighting for the same market Strong need to develop the market and a shared interest to define the industry New entrants are re-defining the market NWOW as a disruptive technology? WeWork Liquid Space Regus 2’nd Home Project Management New Ways of Working Assets (CRE) Management Technical Management Service Management Integrated Facility Management 30
  30. 30. CHANGING DEMANDS REQUIRE A NEW WAY OF THINKING 31
  31. 31. Service Management 3.0 • Fostering a culture of Service • Creating a sense of purpose within the organization • Engaging employees • Leading instead of managing 32
  32. 32. 33 0% 20% 40% 60% 80% 100% Time Workload Actual Workload “Staffing to Peak Demand” Efficient base organization “Service on Demand” Potential Synergies Services must become significantly more efficient Efficient base organization From “staffing to peak demand” to “service on demand” at the same quality level or better! Efficient base organization (on-site) Self-delivery is a fundamental requirement: Ability to integrate services and multi-task employees Ability to take-over outsourced staff as new core employees Going from input to output specifications Empowering front-line employees and provide them with more responsibility Become more purpose-oriented and empower the frontline to deliver CUSTOMER EXCELLENCE Demand for increased ”service” experience 33
  33. 33. 34 Optimizing the Service Delivery System
  34. 34. Service delivery must be based on…. • What value the customer is getting from the service • How total quality is perceived in customer relationships to facilitate value creation • How an organization will be able to deliver the perceived quality • How the service delivery system should be developed and managed • Empowering frontliners to meet customer value expectations 35 Excellent Service = Customer Perception minus Customer Expectation
  35. 35. Understanding Workplace Management 0 20 40 60 80 100 Hospitality services Internal signage Leisure facilities onsite or nearby Health and safety provisions Mail and post-room services Reception areas Atriums and communal areas Access (e.g. lifts, stairways, ramps etc.) Security Parking (car, mororbike, bicycle) General tidiness Restaurant/ canteen Washroom facilities/ showers General cleanliness Tea, coffee and other refreshment facilities % of respondents 'very satisfied' % variance vs. 'Top 15 average' Workplace Facilities Satisfaction Survey Source: Leesman Supporting customers to win their war on talent Assisting to drive up productivity and efficiency Supporting the brand and reputation of the customer… …all at the right cost 36
  36. 36. TITLE (MAIN) Title (sub) THANK YOU! For download of white papers/books; http://www.issworld.com/en/about-iss/learning-zone Follow us: www.servicefutures.com Be sure to evaluate the session online at the Attendee Service Center http://tinyurl.com/p6y4fxb

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