RICS Facilities Management. 18 March, 2016
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1 RICS Facilities Management 18 March, 2016
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4 Our Starting Point Why isn t FM a more strategic resource? What does it mean to be strategic? How are FM groups organised and managed today? What do FM leaders need to do to become a more valued resource?
5 Is Facilities a Strategic Resource? 78% of respondents agreed YES FM is strategic Only 20% of the Head of FM s time is allocated to STRATEGY & PLANNING
6 RICS FM Industry Audit 2011 Perceptions of the FM sector Dramatic change in pace in the industry in last years In a climate of budget cuts strategic FMs can add value to business by driving efficiency Sustainability seen as a opportunity for FMs linking to their expertise in managing workplace change Blurred lines exist between operational and strategic FM - No clear career path FM roles are not clearly understood and their value is poorly communicated to business FM is not considered an appropriate label for professionals working in workplace/infrastructure strategy A lack of professionalism is the big issue. People don t understand the value of FM. I think we struggle with the definition of what FM is and how to communicate its value Sustainability is a big challenge, the implications of carbon emissions over the lifetime of a building and the impact of changes to the desk space environment on your carbon footprint
7 The Headlines FM is increasingly being recognised as a strategic resource but. FM has had mixed success achieving strategic alignment with other elements of the business. Financial metrics and cost control continue to dominate facilities management Heads of Facilities are still buried in day-to-day operational activity
8 Hypotheses When FM is strategic. Alignment with other functions is high Facilities design and strategy makes a meaningful difference to the business: Brand image Leveraging people (productivity) Attracting and retaining talent Saving money Enhancing sustainability The Head of FM spends 50%+ of his/her time on business strategy and planning
9 Our BIG Question What do facilities leaders have to do differently to make FM a more valued and strategic resource?
10 Our Recommendations Think Strategically Act Strategically Rebuild the FM organisation - and its role in the business Teach the business how to ask for FM support
11 Professionalising FM RICS is the professional home for leaders in FM We are raising standards in the FM sector through knowledge, research, training and qualifications Our Strategic FM Guidance is driving professionalism initiating benchmarking that proves the value of FM We are creating a career path in FM for professionals with proven capability to think and act strategically RICS gives FM a relevant business context creating greater credibility for a sector often misconceived as commoditised, operational and not professional.
12 Benefits The five benefits of RICS: 1. Professional status - Credentials that provide unrivalled confidence 2. Recognition - RICS FM and real estate expertise is respected 3. Market advantage - FM standards demanded by markets 4. Knowledge - FM practice standards, professional guidance and CPD 5. Network - Over RICS professionals worldwide Benefits to your organisation Attract and retain talented people Professionalise your service delivery Deliver added value as well as optimised costs Minimise risk to your operationsrisk Integrate property, asset management and FM to your brand
13 5 Steps to Getting Chartered
14 Who s getting chartered and why? RICS has played a key part in opening the door to the role I have now: it is a globally recognised professional body that represents standards and ethics. Graeme Bishop MRICS, ISS FM needs to move out of its silo and evolve into an integrated discipline within the built environment. That s why I m a Chartered Facilities Management Surveyor Kath Fontana FRICS, ISS Becoming a Chartered Facilities Management surveyor is the highest professional accreditation in the UK and around the world. Rory Murphy MRICS, Vinci Facilities At both an individual and a corporate level, RICS has helped develop professional excellence and leadership capability that can really make a difference for our clients. Bruce Melizan FRICS, Interserve
15 Thank you.
16 For Further Information Paul Bagust UK Commercial Property Director RICS London, UK
17 The FM & Asset Management Data Journey 18 March, 2016
18 Benefits for AM & FM A more structured approach to AM & FM data lead to enhancements in: standardisation financial performance decision making risk management services and outputs social responsibility compliance reputation organisational sustainability efficiency and effectiveness motivated staff supply chain relationships End of Life Operate & Maintain Business Case Creation Refurbish or Build Options Appraisal Plan & Design Invest capital
19 Potential Business Decisions Only by having the relevant data can evidence based decisions be made: How does the asset base support the business objective? What is the return on investment from the asset base? How big does the asset base need to be to support the business functions? What are the big risks and how likely are they to happen? When does the cost, performance and risk of the assets out weight the value achieved from the asset What investments need to be made to mitigate risks When are acquisition and disposal decisions are required? Where should new assets be based?
20 The Data Journey to Resilience Milestone 5 Data and tool layering: trailing of capability Scenario and simulation testing: ensuring tools and models are operationalised Milestone 4 Milestone 3 Developing a greater understanding of risk and consequences across business Value delivery stage: modelling and understanding data Milestone 2 Milestone 1 Enabling stage: ensuring data capture is possible and making data visible
21 Data Layering & Geo Spatial Visualisation Layering of demographic data with asset management data to be able to provide a view on resilience of the estate to meet current and future demands. Space utilisation depicted by shape quarters completed 75% Colour depicts statutory compliance red low compliance, amber medium and green high/100% Shape size depicts size of office i.e. large % represents ROI
22 Types of Benchmarking Several types of benchmarking will be required to track progress and demonstrate return on investment: Asset Maturity Benchmarking from innocence to excellence and in line with ISO 55000? Reference Architecture Benchmarking to show as is data capture to to be Cost & Performance Benchmarking how much investment is required to achieve a specified level of service delivery Only from knowing where an organisation is can any journey be mapped. Making improvements need to be understood and tracked against the status quo. Any data journey has to be planned and the speed of travel well understood from strategic to operational levels. This should remove the need to ask are we nearly there yet? The journey will require people, processes, data and systems: PEOPLE: The right level of skills and expertise will need to be in place to lead and deliver the required business outcomes PROCESSES: The business architecture will need to be end-2-end and there will need to be interfaces to the IT technology and hand offs between business units DATA: The data required to support business decisions has to be understood by all and provide a single version of the truth SYSTEMS: The reference architecture (the physical ICT assets) need to be able to support the data capture, access and analysis required through embarking on the data journey. Commonly this will involve aspects of cloud, analytics, mobile, social and secure features (CAMSS)
23 Data Organisation Capital Projects RE Portfolio Management Space Management Operations Energy & Environment Ability to identify priorities for funding Understanding project risks and financial benefits of potential investments for better decision making View performance metrics Understand payback periods and annual savings Improve project delivery by accelerating schedules Understand real estate requirements Visibility to lease/rental data Secure better deals Incorporate demographics into real estate location decisions Links to space management data Understand and improve space utilisation by geography, location and unit Implement mobility strategy Track locks and keys Implement streamlined move, add, change processes Capture paper CAD based documentation in an electronic repository for better access Reduce response times to repair requests Reduce inspection violations Minimise lost productivity resulting from facility downtime Improve funding visibility for better funding decisions Maximise maintenance staff utilisation Control costs and budgets Increase the statutory compliance of property Uncover viable environmental projects Provide data to assist in project prioritisation financial paybacks and environmental benefits Long term planning analytics to identify trends and enable comparisons over time Environmental and financial tracking of progress against defined targets Organisational Data (HR, Payroll, IT alignment) Corporate Finance Data (Invoices, Time & Resource, Profit) 23
24 Metric Data Requirements 1-3 Data Required No. of staff No. of fee earners No. of desks Gross & Net internal area (1) Space Utilisation (2) Cost of Occupancy Rents & Rates Insurances Utilities FM Costs Lifecycle replacement costs(fffe) IT equipment Asset depreciation (3) Space Productivity Gross profitability No. of fee earners Data from Metric 1 & 2 Data for Metric 1 Functional Unit(s) Workstations/m 2 No. staff/fee earners per desk /m 2 /annum /workstation/annum /annum/fee earner /annum/m 2 /annum/workstation ROI Description/Purpose Space utilisation by location Total occupancy cost by location metrics Profitability of fee earners and space/workstations Question answered How densely populated in this office? Is the space expensive? Does the workspace represent a ROI? Correlations to test Is there an optimal workstation/population density in terms of increased motivation & productivity i.e. a critical mass? Does high occupancy costs result in increased motivation/higher levels of productivity? Is profitability linked to customer satisfaction survey?
25 Metric Data Requirements 4-7 (4) Location Productivity (5) Safe & Comfortable Environment (6) Start of Day Wellbeing (7) Lease Life Data Required No of sick days No of workplace accidents No of workplace incidents No of statutory non compliances against all statutory compliance checks and requirements Energy rating of building Customer satisfaction survey results Journey distances by range per employee Journey time per employee Lease end dates Equipment end dates IT Hard and Software end dates Data for Metric 4 Functional Unit(s) Average no. of sick days per employee Overall % of statutory compliance Average % of customer satisfaction Building energy rating % of staff live X-X miles from work Journey to work time/no. of miles might (i.e. mph) be considered a measure of stressfulness % of life remaining per lease, equipment and IT assets Description/ Purpose Loss of productive business time. Building safety, security and comfort levels Suitability of locations to workforce End dates which require business decisions to be made by. Question answered Does the building represent avoidable costs? (reputation, fines, taxes and recruitment) Is the building legal? Is the building popular? How motivated do employees feel when they arrive to work? How many employees would be glad to partake in flexible working? When do I need to make decisions and/or reinvest? Correlations to test Is the number of sick days related to the length of journey time to work or mph to work? Is the customer satisfaction related to the number of sick days taken? Is statutory compliance linked to high occupancy cost or low? Is employee wellbeing linked to profitability (quick, easy work journeys result in greater profitability because people are more motivated)? Is statutory compliance low because asset/property is being sweated due to lease end/end of life date is close?
26 High Level Occupier Performance
27 Example of Drill Down Dashboarding The ability to review data from a strategic level down to an asset level and see where the maximum return on investment is being achieved or not Space utilisation and planning decisions can be taken based on near real time data.
28 Data Layering & Geo Spatial Visualisation Layering of demographic data with asset management data to be able to provide a view on resilience of the estate to meet current and future demands. Space utilisation depicted by shape quarters completed 75% Colour depicts statutory compliance red low compliance, amber medium and green high/100% Shape size depicts size of office i.e. large % represents ROI
29 For Further Information Dr Rachel Dick, FRICS Senior Consultant, Bespoke Data Products RICS London, UK
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