Facilities Management: New needs, new solutions

For more information on Facilities Management:
www.i-FM.net

Facilities Management
New needs. New solutions?

i-FM would specifically like to acknowledge the sponsors of Workplace Futures 2012.

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

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


Martin Pickard
2 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


“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 power
information systems required to These big deals seem to be mostly of social media.
inform that process. Traditional driven by global procurement teams
transaction driven models of whose appetite for bargain prices This year’s conference saw the
outsourcing, asset management and through ever increasing economies debate open up far beyond the hall
cost recovery are being replaced by a of scale often falls at odds with the as facilities professionals around the
more integrated workspace strategy, more informed service-led world followed the proceedings on
not divided by the boundaries of requirements of their internal clients. Twitter and Facebook, asking
different professional disciplines but In the UK market, such tensions have questions and making comments
focused on corporate need. contributed to a commoditised view throughout the day. While some
of some services with more focus on contributors to the debate described
In 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 the
facilities 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 a
chain, our CAFM systems, Evidence seems to show that the huge success story, delivering
outsourcing models, property service providers who are achieving continued growth right through the
tenure and workspace design have the most consistent levels of most difficult economic period of our
all been slower to adapt to these success in the current market are times. It is clear that things are not
new demands. those who are embracing the new going to ‘get back to normal’: the
commercial realities and competing rules of engagement have changed
One area where this has been robustly for each opportunity while forever, and we must embrace
evident is in the international FM developing an ever wider range of change as we have done before.
market. Globalisation is arguably the value-focused service offerings.
most important factor currently The FM supply chain must respond
shaping the world economy. Communicating this value effectively to changing customer needs, new
Although it is not a new and consistently while developing communication challenges and to
phenomenon, 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 real
rapidly, spread more widely and proving more successful for both value to government, society and
have a much greater business, large and small businesses than the business in the next five years and
economic 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 the
While 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 have

08 Facilities Management: new needs. new solutions

Ant Wilson
3 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’.


“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-effective
performing 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
(www.targetzero.info). Five reports
are now available to download from
the Target Zero website, covering
schools, warehouses, supermarkets,
office and mixed use (hotel)


Dave Wilson
4 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.


"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 and
customers, 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 the
Figure 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 Triple
Figure 2: The Triple Bottom Line Bottom Line.


Krista Lindsay
5 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.


Workplace utilisation their desks. This fact has led many Sustainability
Since 2005, Gensler has been companies to realize that 1:1 desk As long-term proponents of
conducting surveys of US and UK ratios leave them with an under- sustainable design, we know that a
office workers to determine how the utilised office, often with large areas sustainable approach produces
workplace environment affects their of space without people. To leverage results that matter to clients: reduced
productivity, creativity and attitudes space and make it work harder, energy and operating costs, brand
about work. The 2008 survey was an companies are implementing advantages, longer property
in-depth look at work mode drivers, mobility schemes to increase space lifecycle, enhanced human
seeking to understand in detail the utilisation and also, more importantly, performance and overall better
activities people engage in to get space effectiveness. quality of life. We also know that
work done and the spaces needed increasing government regulations
to support them. Forward-looking organisations are and corporate social responsibility
investigating mobility strategies at a requirements will keep pushing the
The research indicates that activities global level and focusing on how boundaries, forcing us as designers
in the workplace - work modes - can their workforce uses its space. A to think ever more creatively.
be grouped into four key elements: mobility strategy is not simply a few
focus, collaborate, learn and employees working from home from To conclude, we are on the brink of
socialise. These work modes provide time to time. It’s a fundamental an exciting new shift in the way we
a framework to identify the ways change in work practice. think about the workplace.
space is used and allocated. Developments affecting both real
Technology estate strategy and workplace
Through this understanding of how Technology is without doubt the environment will see the office
people work, organisations can primary factor leading the change in change dramatically - however, we
harness the power of the workplace the way we are able to work. An age believe in its new and evolving form it
to support their highly valuable of computers has removed vast will remain very much part of the
workforce, drive innovation and amounts of clerical processing from fabric of our working lives for quite
advance their business objectives. the workplace. The move from CRT some time yet.
to flat screen monitors opened up
Our surveys concluded that top- the possibilities of bench working,
ranked companies have better and the move to mobile devices and
designed workplaces than average wireless networks provides the
companies and that the design of opportunity to release us from the
the physical work environment is desk completely. Flexibility is key
strongly linked to business now, with spaces designed for rapid
performance. Companies with higher reconfiguration. Mobile video
profit growth had the highest number conferencing technology is also
of survey respondents who were changing the landscape. Where
satisfied or highly satisfied with their previously companies would invest in
physical environment. large expensive telepresence set-
ups, smaller flexible environments
When conducting the research we can be used in conjunction with
also found that often as much as mobile devices.
50% of the time people are not at


Paul Worland
6 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.


Learning from the pioneers base materials. In Abu Dhabi, the Demanding more
Although some organisations are world’s first fully sustainable city, As you will see from the above
beginning to adapt and change the Masdar, is in development and has examples, change is already taking
way they work, others are already the target of being totally self- place - and the frequency and extent
showcasing buildings of the future sufficient. The aim is that Masdar will of this is sure to increase in the
within their portfolio. provide the highest quality of life and coming years as communities and
work environment with the lowest organisations begin to realise the
In 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 the
Canada Square, London. Here advanced technology and materials, services of tomorrow. There have
employees work within an open plan, and revolutionary sustainable been many developments including
non-assigned desk environment, construction. It will be a ‘smart city’ self-clean materials, photovoltaic
with a range of alternative areas for with sustainable power generation energy, improved diagnostics, remote
individual output and collaboration. and sophisticated tools to monitor monitoring and control, wireless
Combined with practices such as power, water and CO2 generation. technology and anaerobic digestion
smart metering and lighting linked to Six buildings have been completed of waste for energy. These
available 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, improved
resulted in a 40% reduction in and 50,000 commuters ultimately. employee satisfaction and decreased
energy 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 industry
The building is 400,000 sq ft with an can be found in Songdo, South remains on top of technological
occupation of 5300 people. It is Korea, where the largest private developments and evolutionary ways
focused on providing quality space sustainable real estate venture in of working to ensure that we stay
to maximise collaboration, teamwork history is taking place. Measuring 6 competitive. Customers will soon be
and 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 service
his role as ‘minimising peoples’ will utilise the best technology - will no doubt be on the top of their
downtime’, 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 to
facilities team does not plan to stop communication systems and smart be aware of these new
there: they continue to challenge number plates. Songdo will be a fully developments and customer
workspace utilisation and are wired intelligent city with the ability to demands, but they also need to
working to achieve 50% non- regulate and produce energy to fulfil ensure employees are up-skilled to
assigned desking and a 50% its own needs. This will include the maintain and operate the new
reduction in their carbon footprint. implementation of rooftop systems and buildings of the future.
vegetation, home waste removal, It is unclear how quickly these
It would seem that FM is changing segregation systems and home developments will occur, but it does
across the world. Facilities and cities energy generation systems. pose the question ‘are we ready for
are being designed and built to meet the change?’.
the future shortages in energy and


Graeme Hughes
7 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


“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.


Barry Varcoe
8 What is FM
Introduction 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 review, 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


“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 incoming


Facilities Management: New needs, new solutions

Facilities Management: New needs, new solutions

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