TFM Companies: Overcoming the Challenges of Agile Working through Digital Innovation

Transcription

1 TFM Companies: Overcoming the Challenges of Agile Working through Digital Innovation March 2018

2 Introduction Total Facilities Management (TFM) companies are coming under increasing pressure as businesses move to more modern ways of working, spread out across more locations, using different types of tools to communicate and with more flexible workspaces and hours. As more employees opt to work remotely and headcounts in static offices shrink, many TFM companies have begun considering how to adapt their role to better fit the modern workplace. This whitepaper will combine an assessment of previous research into the nature and impact of changes to the work environment with the results of a survey of TFM professionals undertaken by Hobs On-Site in order to understand the place of innovation in facilities management. It will discuss the challenges and the opportunities around agile working for TFM companies as well as the benefits of agile working for employees and businesses. Finally, this paper will discuss how to overcome the challenges facing TFM companies when dealing with agile working and how to turn workplace modernisation to an advantage through digital innovation. 1

3 Why is agile working of increasing importance to TFM companies? Agile working is defined as The ability to work in variable locations to complete the tasks necessary to your job on any given day. 1 Through a genuinely agile working environment, employers can meet the expectations of a modern, global workforce whilst improving employee satisfaction and achieving cost savings. 2 The rising cost of real estate, combined with the need to maintain multiple offices in a global environment, has meant that businesses are now looking to reduce running costs as a top priority. 3 Agile working can help a business reduce its carbon footprint and it can also help reduce the costs associated with maintaining a physical presence by 15-20%. 4 Gen X (born between ) and Gen Y (born between ), the largest elements of the current workforce, are both very comfortable with digital technology and are highly focused on achieving a good work/life balance. These groups want their employers to offer more flexible work environments. A recent survey discovered that 67% of workers want flexible working and 58% believe this would improve their motivation. 5 Offering flexibility at work makes workers feel happier in their jobs, improves retention and in many cases, reduces stress. The practice of agile working enables employees to determine how best to deliver their duties. This means teams can work in the most efficient and profitable way for the task at hand. There is less responsibility on employers to micromanage staff, allowing them to focus on the commercial success of a business. The expanding practice of agile working, however, means that the size of offices are shrinking, offering a challenge to TFM companies that charge based on headcount. 2

4 The role of technology in changing working practices The development of high speed internet, Virtual Private Networks (VPNs), cloud technology, video conferencing and team collaboration platforms mean that workers do not need to be physically present at all times in order to work as a team. The workplace has effectively become wherever an employee has access to a laptop and the internet. Using new technologies to move more of their physical resources into digital formats can enable businesses to more easily and efficiently implement agile working, allowing them to maintain physical workplaces solely for situations when teams need to sit down face-to-face with co-workers or customers, and in order to provide for those workers who still prefer to work in an office-based environment. 3

5 Supporting agile working through digital innovation The rise of agile working has prompted a requirement for companies, and subsequently TFM providers, to consider what support infrastructure is available to better enable flexibility for their workers and their workspaces. While many businesses immediately think of cloud collaboration and VPNs when they think of flexible working, one of the most important aspects of enabling agile working is having a good infrastructure for document management. In a world of flexible desk policies and remote working, the traditional post room, distributing hard copy documents to set collection points, is obsolete. Furthermore, as the size of offices shrinks, so does the space available for records storage. Finally, print infrastructures need to support a workforce that is no longer stationary. To address these and other challenges, TFM companies must embrace digital innovation to free staff from the constraints of the physical office. Some of the changes they must look to implement include: Digital Mail - allowing all mail to be delivered to a hub from which it is then processed, scanned in and digitally distributed; Online print submission tool - enabling a web-based print submission tool that offers a familiar internet shopping experience to all staff. This is typically delivered through a single sign-on authentication, regardless of whether staff are home or office based. With clear benefits for businesses in making use of digital innovation in order to facilitate agile working, businesses have begun to ask TFM companies to include digital innovation in their proposals as they look to benefit from new technologies. In fact, 79% of businesses link innovation to their strategic business objectives and a further 15% write it into contracts with TFM providers. 6 As a result, TFM companies must build digital innovation into their future plans. 4

6 What challenges do TFM companies face in embracing these changes? For TFM companies, the move to agile working means managing the implementation of more digital ways of working, different skill sets, new equipment, new software, and, crucially, facilitating different working practices. Many TFM companies, however, lack the incentive, expertise and change management knowledge to help their customers implement digital innovation. Hobs On-Site has undertaken research to understand the challenges and roadblocks to TFM companies actively making changes to their services in order to facilitate agile working. We surveyed a range of TFM providers and spoke to experts both in providing third-party services and in implementing innovation within facilities management contracts. The survey revealed that 83% of TFM providers identified delivering new services as expected of or critical to their company. 75% of TFM companies have identified a need for development or change to a service in the last five years in order to accommodate new working practices. In a world where companies are increasingly moving towards agile working and smaller physical workplaces, the revenue model for TFM companies is under threat. Typically, the revenue model of a TFM company is based on headcount within a set location and as headcounts begin shrinking owing to the widespread adoption of agile working, then TFM companies must find new ways of generating income. Many TFM professionals worry that digital innovation will require a large capital outlay, and that this digital innovation, in turn, will accelerate the shrinkage of TFM services. It is therefore imperative that TFM businesses generate revenue through other means such as software, hardware and provision of specialist knowledge. The true challenge of agile working for TFM companies is about opening new revenue streams through digital innovation. The survey revealed a number of specific challenges to TFM providers in embracing these changes and introducing innovation, specifically digital innovation in order to modernise, including: Capital investment Specialist knowledge requirement Change management 5

7 Finding a way to overcome these challenges is the key to surviving in a rapidly changing working environment. TFM companies do understand this, even if they have yet to overcome the challenges and begin offering digital innovation to their customers, with 50% of the respondents to the survey identifying the need for digital innovation. 6

8 How can TFM companies overcome the challenges of agile working through digital innovation? TFM companies recognise the need to embrace change in order to stay profitable, but face a number of challenges in doing so. By partnering with an expert third party supplier, TFM companies have access to the knowledge and expertise they need to successfully implement digital workflows for their clients. 7 A study by Sheffield Hallam University supports this, stating, innovation is led by the supplier community. This means that TFM companies and clients need to be led by specialists in order to understand the possibilities for the ways in which digital innovation can help customers move to agile working, while at the same time accessing new revenue sources. 8 Outsourcing to a specialist provider forms a key part of most, if not all, digital innovation strategies.they are able provide the necessary knowledge and infrastructure required to implement digital innovation, as well as reassurance that any issues can be dealt with promptly, or, indeed, omitted through experience. ability to make the move to agile working, but rarely forms part of a business core competencies. Bringing in a specialist provider that focuses on digital innovation can open up a new revenue stream to TFM providers by empowering them to aid in the transition to agile working, as well as continuing to provide the infrastructure to support it on an ongoing basis. Indeed, using third party suppliers to support the implementation of digital innovation opens up possibilities for TFM companies for broadening their offerings without having to develop new competencies, meaning that they can embrace the move to agile working wholeheartedly. In particular, Document Management services are a good candidate for outsourcing. As discussed in section 2 of this document, this function is key to any business and in particular to a business 7

9 What are the benefits of supporting an agile working environment? For TFM companies, the main benefit of supporting an agile working environment is clear - it can provide new revenue streams in the face of shrinking headcounts in offices, enabling TFM companies to modernise and grow their profits. For example, where a traditional inbound mail service may require a headcount of ten staff, a digital mailroom could potentially deliver the service with just five staff. While a TFM company may view this as shrinking the service by 50%, distributing to a digital location means recipients can receive mail instantly, regardless of their physical location, thereby maintaining the need for managed services, albeit in a more flexible format. demanding could provide TFM businesses who are early adopters of digital innovation with a clear competitive advantage. 10 Suddenly the FM provider can add value to the client and widen the scope of their service delivery and resulting revenue streams without adding significant cost. Enabling agile working means that customers can expect: Improved communication Improved organisational efficiency Improved flexibility Increased staff productivity Improve company image and appeal to Gen X and Gen Y Faster access to information Improved security Introducing digital innovation can reduce operating costs and increase efficiency. Using digital processes can make the distribution, storage, retrieval and security of documents a much easier prospect. It enable workers to access and share vital information when they need to, even if they are working remotely. 9 Through the right implementation of technology, process and people agile working is made possible. With 50% of businesses looking to change FM suppliers at the end of their contracts, delivering the new services that clients are For a TFM company looking to improve customer retention the introduction of agile working can add real value. Customer satisfaction is a key factor in building customer loyalty and increasing service profitability. According to one model, a 2% increase in customer satisfaction leads to a 2% increase in net profit. 11 There is significant financial incentive for TFM companies to facilitate agile working and embrace digital innovation. 8

10 Conclusion The nature of work is changing as more and more businesses understand the benefits of adopting agile working in order to cut costs and offer employees more flexibility in how they work. Agile working can improve productivity, lower stress levels and provide employees with a better work-life balance, something very important to Gen X and Gen Y. As the way in which we work changes, TFM companies must adapt and expand their service offerings in order to remain relevant and profitable. The way forward for the facilities management industry is digital innovation, a path which requires a rethinking of traditional revenue models, and specialised knowledge to manage the changes, delivered in partnership with niche third party suppliers. Document Management services are of growing importance for businesses in enabling decentralised working. Where TFM companies can partner with a specialist third party to supply this service, they can make themselves invaluable to customers by becoming the enabler in the implementation of agile working. By providing the knowledge and the resources to help their clients modernise their businesses, TFM companies will be rewarded with the strong customer satisfaction and retention that will lead them to improved profits. Partnering with third party experts opens up new revenue streams their will allow TFM companies to use digital innovation as a means of developing their offerings to work in line with changes to the modern workplace. 9

11 References p p p rticle/benefits-of-customer-satisfaction-at-the-micro-economic-level About This White Paper was produced by Hobs On-Site. Hobs On-Site deliver integrated Document Management and Information Solutions across a broad spectrum of industries, we offer a range of facilities such as Managed Print Services, Managed Mailrooms, Scanning Units and Creative Design Services. All of our solutions are bespoke and evolve as market pressures change and develop. We are heavily invested in digital innovation and look to support our clients in embracing digital workflow technologies to drive efficiencies, reduce costs and enable agile working. If you d like to discuss your agile working strategy with Hobs On-Site, we d be delighted to help. Hobs On-Site, 14 Castle Street, Liverpool L2 0NE t: e: info@hobsonsite.com w: HobsOnSite.com