Zurich - FM at the crossroads

1. CRE&FM at The Crossroads?
The role of intelligence and cooperation in the future of CRE&FM
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

2. Five levers for innovating today’s CRE&FM model:
Consumer centric service concepts
Integrated service models based on Tier One (or Tier Zero) partnerships
A new role supporting organisational culture change
A systemic approach to the world of work
Evidence-based service optimisation
Three questions:
How do we apply them to innovate CRE&FM?
What do we need to stop doing, start doing differently?
How do we do this as an industry?
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

3. John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877
• Exactly what ‘Intelligence’ is required by
the CRE&FM Client function now that
outsourcing has become so
sophisticated?
• Map the know-how and innovativeness of
our service provider industry.
• Develop and test our own views
• Plan our priorities and research
investments
• Set a high innovation threshold for
renegotiating our service contracts
• Show the service provider industry we
were a client truly-committed to
innovation and innovativeness
3 crowdsourcing events. Why?

4. How we used this
4
• Identify the most advanced and innovative practices,
thinking and thinkers in our service industry.
• Challenge this leading edge of the industry to
respond to some innovative ideas (which helped test
and stretch our thinking too).
• We published our analyses of the findings as our
”disruptive thinking” series, in part as a payback to
everyone who joined in the crowdsourcing events,
also to cement our position as a client who is “open
for innovation”
• We then used this to set the threshold for innovation
from our service providers during contract
(re)negotiations:
= a structured programme of operational and strategic
innovation, ongoing innovation debate
= an innovative re-procurement with the most forward
thinking service providers in the industry
= a departure point for co-innovating tomorrow’s
service model with these service providers
Started by horizon scanning (24 topics), focused down to
1 deep discussion (Jan 2012 – Oct 2013).
.
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

5. 5
CRE&FM still needs to re-
centre on supporting the
effectiveness of people
and the productivity of
business?
CRE&FMstill waiting for
its advances in strategic
capability, also change
management capability?
CRE&FMstill needs to
truly integrate end services,
not just systems and
providers?
CRE&FM still needs
crucial disruptive
innovations in
procurement, partnering
and performance
CRE&FM still needs its
revolution in KM, R&D,
and talent
management?
John.Hinks@uk.zurich.com00447875887877
So what did we discover?

6. Why?
The legacy CRE&FM concept is broken
• New ways of working (IT, 3rd spaces, flexibility and the dispersed
asynchronous organisations)
• New attitudes to what work is, and new models of competitiveness for
21st Century organisations
– Communication, collaboration and connection are increasingly crucial to
business ‘edge’
– More work (and more teams) have become asynchronous, disaggregated
and globalised
– The corporate workplace is increasingly a mediator for more social,
interactive modes of work, but the corporate workplace is only one of
many settings
– Speed and continuous innovation are becoming more important
competitive differentiators for more businesses
– Individuals play a bigger part in the success of the information business, its
people and their relationships who make the difference
– Workplaces, work and people behave as a complex co-adaptive system –
level of control matters
6
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

7. WHY?
A contracting mindset continues in an era of service
7
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877
• CRE&FM has only innovated tactically to sustain its existing model
• A self-referential system that has pushed both client & provider into a
corner
– Cost-based thinking endures in CRE&FM & business – victims of
management accounting?
– Commoditisation-based offerings and adversarial contracting and
governance remit = vicious circle?
– Chronic disconnect between management, infrastructure, culture and
productivity
– Eroded domain specialisms, sparse R&D, poor talent management
– Global/ local distinctions missed in global CRE&FM models?
– An asymmetry of capabilities and an 85% industry, with innovation
happening outside of the contract?
– And a “Big 6” model emerging – what impact will this have on diversity,
differentiation and innovation?

8. Why?
A need to think beyond buildings
• Workplace-centred CRE&FM models have replaced building-centred models
• But what people and 21st
Century businesses need are work-centred models
• And people centred services that work on and off the corporate footprint
• Because 21st Century work challenges legacy CRE&FM thinking:
– Holistic and synthetic thinking needs to replace linear and deterministic approach
– Complexity between people, work, organisation and workplace still being ignored
– Wrong-shaped portfolios of workplaces designed around utilisation efficiency
– Legacy manufacturing era concepts instead of a networking model of work
– Metrics that conflict with what drives and differentiates 21st
century businesses
8
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

9. The concept of The Intelligent Client Role
• Holism (beyond zero-sum, beyond buildings, and beyond the corporate footprint)
• Tolerance of failure and innovation
• Comfortable with complexity (work + people + workplaces = complex adaptive system)
• Coherent, principled and proportionate
• Genuine leadership (in the face of business catching, and management accounting blockers)
• Ability to evolve ourselves, and nurture co-innovation with service providers (2 way)
• Cooperative, and an emphasis on achieving synergy
9
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

10. The concept of The Intelligent Cooperative
• Beyond zero sum, needs both client and provider(s) to partner around ideas such as:
• Intermediation roles, an integrative perspective and attention to outcomes
• An explicit focus on value, and comfort with proportionality and balancing priorities
• Comfort with risk, experimentation and genuine innovation
• Proactive, recognise and respect expertise
• Trustworthiness and tolerant (this needs to operate at all levels in all teams)
• Long view – this is not just a goal, or even a journey, but a new way of travelling
• Willingness and ability to evolve on-the-wing
10
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

11. 11
Evidence-based
service optimisation
Integrated service
models based on Tier
1 partnerships
Consumercentric
service concepts
A new role supporting
organisational culture
change
A systemic approach
to the world of work
John.Hinks@uk.zurich.com00447875887877
But where and how to start?

12. Five levers for innovating today’s CRE&FM model:
Consumer centric service concepts
Integrated service models based on Tier One (or Tier Zero) partnerships
A new role supporting organisational culture change
A systemic approach to the world of work
Evidence-based service optimisation
Three questions:
How do we apply them to innovate CRE&FM?
What do we need to stop doing, start doing differently?
How do we do this as an industry?
John.Hinks@uk.zurich.coGlobalHeadofInnovation,ZurichCRE&FM00447875887877

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