Savings Initiatives in Integrated Facilities Services/Management Deals. Terry Mills, GVP & Head of Corporate Clients EMEA Region

Transcription

1 Savings Initiatives in Integrated Facilities Services/ Deals Terry Mills, GVP & Head of Corporate Clients EMEA Region

2 Areas to be covered Typical Sourcing Drivers Indirect Benefits Direct Benefits & Savings Initiatives Managing Quality Summary

3 IFS increasingly demanded and important for customers DKK Trillion Global outsourced facility services market by contract type CAGR 06E 09E 2% 7% 3% CAGR 09E 15E 6% 10% 7% Simplicity and trust We plan to move towards IFS because its easier, faster and more convenient to have one contract and one invoice from the services. Facilities manager, Sweden Quality is worse with third parties. They are either exploiting staff or the package becomes more expensive. HR manager, Spain In our experience self-delivering IFS providers deliver the high quality we need. Facilities manager, UK 2% 5% Self-delivery get us better control, quality and responsiveness. IFS Customer, UK We want self-delivery because it leads to higher quality and better security for us. Operation manager, Finland Trust goes down and prices go up when third parties are involved. Administrative manager, India 2006E 2009E 2012E 2015E Single services Multi services IFS Source: estimates based on market studies 3

4 Typical Sourcing Drivers Out task Single service Out Source IFS Retain GRE Direct cost reduction Procured against activity based specifications Faster time to market (vs internal route) Catalyst for cultural change (acquisitions) Increased flexibility Improved operational quality / stability Focus on core business Transfer of Risk Maintain acceptable service levels and perceptions Provide acceptable transfer conditions for personnel in scope Provide systems, tools and solutions not available in-house Reduction in Total Cost of Occupancy Leverage Real Estate/Production

5 Typical Strategic Savings Optimise retained organisation Move from managing delivery to results and contract Shift focus to higher value activities Fewer more strategic interfaces with Suppliers and Business Transfer in-house delivery, reduced HR load and liability Need right skills in right places Need to allow for transition and initial transfomation Rationalise supplier base Agility Finance Admin and Procurement Large changes more predictable and manageable Greater tolerance to smaller changes Faster support to acquisition integration Faster realisation of tactical benefits Transparency Risk Transfer Warranties and insurance liabilities Personnel Assets and Technology Continuous Improvement

6 Typical Tactical Savings Expectations ARD, Transition, CAFM Excluded 3 Years

7 Our best practice and knowledge sharing Defining and documenting knowledge Excellence and best practice initiatives Customer Requirements Continuous Improvement Contract Operations Manual Record Business Documentation Service Desk Incident Mgt Service Request Mgt Complaint Mgt Notification Mgt Escalation Mgt Resource Mgt Training & Development Motivation Absence Mgt Employee Relations Employee Retention People Service Level Service Definitions Service Levels Performance Indicators Expectation Organising for SLM Service Delivery Facility Cleaning Services Office Support Property Services Catering Services Security Services Financial Quality of Service, Product & Process Satisfaction Improvement & Innovation Performance Measurement & Reporting Business Continuity Business Continuity Planning Disaster Recovery Action Planning & Testing Workforce Project Integration Selection Performance Supplier Contract Planning & Review Strategic & Tactical Planning Alignment to Customer Changes Realising Contract Potential Contract Retention Relationship Mgt Contract Awareness Communication Problem Solving, Performance & Innovation Resource Planning People, Consumables, Equipment, Tools Work Plans and Schedules Initiation Planning & Design Execution Monitoring & Control Completion Integration Delivery Integration Responsibility Communication & Training Risk Improvement & Initiatives Reporting Safety, Health & Environmental Employee Surveys Customer Surveys Feedback Analysis Satisfaction Assessment Exit Record Exit Planning Knowledge Transfer Decommission of Contract Self Assessment Process Audit Service Audit Process Compliance Document Changes Maintain Contract Framework Contract Change Added Value & Customer Satisfaction Example of cleaning best practices Trolley and materials Service innovation Methodologies and work processes documented Process innovation Core Delivery Processes Planning Processes Service Desk Support Processes SimISS planning and calculation system Business systems innovation 7

8 Example, Business Focused Maintenance Full visual and supply chain review of engineering assets Plant assessment from a business outcome rather than an engineering system's perspective Assessment and rating of consequence of failure, likelihood and time to failure. concentrating on single points of failure and effects to prioritise resources Continuous review to identify the likelihood of failure and highlight items deteriorating faster than normal Application of maintenance levels based on these risk and consequence ratings Frequencies and degree of CBM, IL&C and PPM adjusted accordingly MTBF and MTTR feedback included in forward fine-tuning

9 Actual Example Example: Engineering System PPM Pilot Scheme Erskine Maimtenance Hours Planned Maimtenance Hours BFM 0 Example: Engineering System Reactive Pilot Scheme Erskine Maimtenance Hours Reactive Maimtenance Hours BFM Reactive

10 Example, Service Integration ISS Workflow Planning Tool Multi skilling or Same skilling? Based on PPM principle with focus on tasks on same skill level Applies sensitivity to when tasks can be done Brewing industry Case Study Hard savings 11% over traditional model Soft savings more full time employment Reduced staff turnover Reduced recruitment and training costs More engaged employees higher productivity

11 INTEGRATED SOLUTIONS Maximise Performance the next generation Building Business SPACE & CLIMATE Enhancing the productivity of your workforce. INFORMATION & COMMUNICATIONS Creating an anytime, anywhere, any place culture. ENERGY SERVICES & MANAGEMENT Maximising the energy efficiency of your operations. NATURAL RESOURCES & CARBON Minimising the environmental footprint of your business. INFRASTRUCTURE & ASSETS Optimising the whole life cycle value of your assets.

12 Components of Service Level Agreement Customer ISS Contract Scope Definitions (List of Services) Key Performance Indicators Performance Values (and method of measurement) Processes & Procedures Specifications Tools, Technology, Equipment and Materials Cost & Liability Service Delivery Balance Point

13 Tracking to joint results Criticality User Satisfaction (survey) annual (contracted, governance) User Groups / BU Managers, Audit & Guidance - bi-annual (governance) GRE Client Assessment monthly, (contracted/governance) Service Desk/CMMS Statistics, Audit, User Polls, Response Times (contracted measurement) Frequency/Time

14 ISS Global Corporate Clients Governance Model ISS' Customer Governance Model ISS Purpose Customer Frequency Group CEO, Regional CEO, Group CCO, Head of CC Relationship/Strategy Global Head Ops/Procurement /(CEO, CFO etc) 1-2 times/year GLOBAL Head of CC, Global KAD Strategy/Steering/Escalation Global Programme Directors/ (Head of Procurement, Head of Ops) 4 times/year Regional KAD (Regional CEO/Country Managers/IFS Directors) Steering/Escalation Regional Directors/ (Head of Procurement, Head of Ops) Monthly REGION Programme Director & Programme Managers/(IFS Directors/Divisional Directors) Contract & Delivery Delivery, Development & Compliance Regional & Country Programme Managers Monthly HSE, Eng. Mgrs., Programme Managers, Reporting & Benchmarking Managers Audit, Reporting Regional & Country Programme Managers Monthly COUNTRY Programme Managers, Account Managers/FM (Divisional Managers, Branch managers) Contract Delivery & Compliance Regional & Country Programme Managers Monthly Country HSE, Account Managers, FM Audit, Reporting Country Programme/Category Managers Monthly SITE Facility Managers, site based support staff Contract Delivery & Compliance Site based Customer reps Daily/Weekly

15 Global IFS Knowledge Forum Service Excellence Teams Integrated Facility Services Global OS Knowledge Forum Service Excellence Teams Global PS Knowledge Forum Service Excellence Teams Global CE Knowledge Forum Service Excellence Teams Global Catering Knowledge Forum Global Security Knowledge Forum Service Excellence Teams Office Support Property Services Cleaning Catering Security ISS Value Proposition as an integrator Geographic Footprint - Country-based structure and local delivery - Regional/global BD, Transition & Account management (Corporate Clients) - Global and local collaborators (IVA-MAAS, MCS, Diversey, etc.) Degree of Self Delivery - Ability to integrate - Low system margin (no management & marginon- management & margin) - Knowledge sharing Processes & Systems - Business Process Framework - CC Process Playbook - ISS Facility System - Route-based systems Business Critical Services - Technical & hard FM capability - Datacenters - Clean room - Etc. Support Functions - Change and Transition capabilities - In-country & regional/global EH&S capabilities - Project management - Centers of Excellence - HR (staff transfer) Risk Transfer Global Integrated Facility Services Excellence Regional Country - Outsource delivery risk (insurance, price, some EH&S) - Increase flexibility - Speed to change Eastern Europe Office Support Excellence Western Europe & Americas Property Services Excellence Centre of Excellence Central Europe Cleaning Excellence Nordic Catering Excellence Security Excellence Asia & Pacific References - Segment experience - Local and regional experience Competitive Price - Integration & Synergies - Service Excellence - Strategic sourcing - Leverage of international infrastructure 1 st time outsourcing Initial Client with FM 2 nd time outsourcing 15% 9% 76 Client With ISS on an IFS contract solution

16 Thank You for Listening! Any Questions?