Zurich - FM at the crossroads

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

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?

• 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?

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).
.

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?

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

WHY?
A contracting mindset continues in an era of service
7
• 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?

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

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

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

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?

This presentation has been prepared by the author and the opinions expressed therein are those of author at the date of writing
and are subject to change without notice.
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based on numerous assumptions. Different assumptions could result in materially different conclusions. All information
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