CRE A Future View. Disruptive thinking. Dr. Barry Varcoe FRICS, Global Head of CRE&CRE CRE&CRE Zurich Insurance plc

Transcription

1 CRE A Future View Dr. Barry Varcoe FRICS, Global Head of CRE&CRE barry.varcoe@uk.zurich.com CRE&CRE Zurich Insurance plc Disruptive thinking CoreNet Discovery Forum 10 th June 2013 Richmond, Surrey

2 The Futures Forum 1 week crowdsourcing and audio debates in Jan experts from 30 countries across the CRE and CRE industry What did they think 2017 might look like for CRE and CRE? 700 discrete ideas Debate prompted by sixteen themes 2

3 What does the CRE&CRE industry need to do to significantly improve its relevance to the enterprise it exists to support? No objective way of evidencing the value that CRE brings to business a fresh understanding is needed. Should CRE become part of a reformed and wider business services function? The core issue is no longer about buildings or services but about enabling productivity that delivers competitive advantages for your organisation. 3

4 What does the CRE industry need to do, and how does it need to change, to consistently provide a great experience for all consumers? CRE has paid insufficient attention to the evidence of how customer value is created or lost. A shift from a primary focus on building-centric inputs to customercentric outcomes may require a redesign of the entire CRE&FM ecosystem. Tomorrow s differentiator for CRE will become the ability to conceive of and deliver great consumer and customer experiences. if we really want to re-centre CRE around the quality of customer experience, does it make sense to retain the same delivery model? 4

5 What does the CRE industry need to change to enable it to guarantee to its customers that they are getting the service quality that they are paying for? quality expectations may differ by stakeholder. If CRE is going to advance to the maturity level of other established service industries, then the quality and attitude of the people employed in the service delivery will be a critical issue 5

6 The What are the characteristics of a modern CRE organisation that is successful at aligning with both the enterprise and suppliers? Assemble and catalyse multi-faceted and cross-border/ crossorganisational networks The key skill sets for tomorrow s intelligent client will be strategic planning, change management and adaptability. Evidence of high performing ICs will include effective forward planning, the extensive use of analytics, appropriate organisational models, and close internal customer relationships. 6

7 Integrated How can the industry go beyond its current fragmented nature to deliver trulyintegrated solutions with a value that is more than the sum of their parts? So-called integrated solutions to date have tended to support existing operational and industry fragmentation rather than catalyse profoundly new ways of operating. benefits must drive the nature of integration. True integration will be based around partnerships, coordinated processes, data technology and a need to solve integrated problems. Integrated 7

8 Partnerships What are the characteristics of the most meaningful and creative partnerships and context(s) in which they will most likely succeed? Integrated There are multiple tensions inherent in the way procurement and CRE&FM operates today that makes partnering a challenge. True partnerships will be driven by a common vision for the relationship and mutually compatible goals. Partnerships stand or fall on the approach of the key people involved, so a better future hinges on a smarter attitude. Partnerships 8

9 Sourcing Process Is the two-stage RFI/ RFP approach to sourcing suppliers the most effective way of achieving today s vital relationships? The traditional, lengthy, sourcing process is arguably causing a vicious circle of commodity services, dissatisfied customers and low margins. For commoditised task-based services e-sourcing looks certain to continue as an efficient and effective approach. For more complex outcomefocused services a new approach is needed. Integrated Partnerships Sourcing Process 9

10 Market Differentiation Why is there so little differentiation between suppliers in the CRE marketplace, also between CRE teams in different organisations? A combination of current procurement processes and SLAs/metrics is seen to be causing commoditisation, a lack of differentiation, and a cycle of decline. Providers feel that they have more market-ready innovative solutions than customers are prepared to buy. Attaining market differentiation and its benefits will require new business models and new methods of cooperation. Market Differentiation Integrated Partnerships Sourcing Process 10

11 Knowledge Management The information that we routinely capture and use to manage performance and inform decisions is often out-of-date and incomplete. How can we advance? Realising the potential benefits of knowledge management will stand or fall on achieving a fundamental change of mindset (away from knowledge is power ). Priority components of an effective KM approach include data collection, categorisation, storage, retrieval, analysis, re-application, and disposal. A truly effective KM system has potentially massive benefits for all CRE&FM stakeholders. Market Differentiation Integrated Partnerships Sourcing Process Knowledge Management 11 11

12 Attracting Talent How can the CRE industry attract far more talent? The CRE&FM industry certainly isn t high on the list of career possibilities of high-fliers. Part of the problem is the narrow gene-pool that is typically considered. We also need to get better at developing those we have, especially in business/people leadership skills. Tomorrow s CRE skills and experience are selected by those with yesterday s. Success will start with a rethink of how to make the industry compelling and attractive. Market Differentiation Integrated Partnerships Attracting Talent Sourcing Process Knowledge Management 12

13 Value-based Pricing What would a valuebased pricing model for CRE services look like? Market Differentiation Integrated Value Based Pricing A fundamental change is needed to the current pricing models, which for real estate brokerage in particular seem to have lost touch with value. To achieve value-based pricing, CRE will need to develop new ways of articulating intangible value that cannot be easily measured using conventional thinking. Partnerships Sourcing Process Attracting Talent Knowledge Management 13 13

14 Globalisation What value should CRE be generating from globalisation? Globalisation has been one of the key drivers of change in the CRE industry over the last two decades. Global standardisation of every component of the CRE&FM model is not thought to be desirable. It is questionable whether CRE leadership collectively has the cultural skillset and experience necessary to achieve sustained competitive differentiation through globalisation Market Differentiation Integrated Value Based Pricing Partnerships Attracting Talent Globalisation Sourcing Process Knowledge Management 14

15 The Nature of Work and The Workplace What will work be like and what will the (unconstrained) office of the future look and feel like by 2017? The workplace will continue a transition to becoming a social hub. Economy of flexibility will succeed economy of scale. The worker and their needs (effectiveness) are now the primary CRE&FM focus, not the workplace (efficiency). CRE will need to better understand what releases productivity for different people working on different tasks in different contexts. Market Differentiation Integrated Work & Workplace Value Based Pricing Partnerships Attracting Talent Globalisation Sourcing Process Knowledge Management 15 15

16 Risk What is the true and full extent of the risks that CRE manages? Market Differentiation Integrated Value Based Pricing Globalisation It is crucial for CRE to fully understand the business appetite and capacity for risk in order to be able to design and manage the service resilience accordingly. Risk is broad and must go beyond building operation risk and business continuity. If not, does CRE become another risk factor for the business? Work & Workplace Risk Partnerships Attracting Talent Sourcing Process Knowledge Management 16 16

17 Sustainability What should we be doing together and individually to meet our moral obligation across all sustainability issues? Market Differentiation Integrated Value Based Pricing Globalisation There are several levers available to CRE&FM to reduce carbon intensity, but all require a base of reliable data and performance targets: Behaviour change. Standards. Building and environmental performance management. Knowledge sharing. Supplier management. But these are all tactical?! Sustainability Work & Workplace Risk Partnerships Attracting Talent Sourcing Process Knowledge Management 17

18 Innovation How can the CRE industry become more innovative? Market Differentiation Integrated Value Based Pricing Globalisation A number of forces have mitigated against innovation in the past Innovation has become a fundamental imperative for CRE which requires a radical change of mindset, a culture of openness, reflection and questioning, and a focus on how practically to catalyse and encourage innovation. Sustainability Innovation Work & Workplace Risk Partnerships Attracting Talent Sourcing Process Knowledge Management 18 18

19 Overall, what did the Forum tell us? To underpin this we need a revolution in KM, R&D, and talent management Advances are required in strategic capability, also change management capability CRE needs to re-centre on supporting the effectiveness of people and the productivity of business Plus advances in integrating services, systems, and providers We need disruptive innovations in procurement, partnering and performance management 19

20 CRE needs a portfolio approach to innovation Opportunity-led Idea-led New Combinations New Paradigms Problem-led -driven Smarter Operational Strategic Innovations Continuous Improvement Immediate, actualised, operational Developmental, potential, theoretical 20

21 Foundations first Opportunity-led Idea-led New Combinations New Paradigms Knowhow Problem-led -driven Continuous Improvement Smarter Operational Immediate, actualised, operational Strategic Innovations Learning Organisations Management Information Systems Focus Innovation in Managing Integrated Rethinking the value and impact of CRE Developmental, potential, theoretical 21

22 Plus some crucial sustaining innovations Opportunity-led Idea-led Problem-led -driven New Combinations Smarter Operational Responding to clockspeed Responding New to variability Paradigms Developing truly global service models Supporting flexible working Avoiding productivity dilution Strategic Innovations Continual Improvement Immediate, actualised, operational Developmental, potential, theoretical 22

23 But disruptive innovations matter most Opportunity-led Idea-led New Combinations New Paradigms Problem-led -driven Beyond buildings co-operatives Continual Radical reduction in climate Improvement change impacts Smarter Operational Enabling productivity Immediate, actualised, improvement operational Strategic Innovations Developmental, potential, theoretical 23

24 CRE needs a balance of innovations Sustain what we do? Opportunity-led Idea-led New Combinations New Paradigms Problem-led -driven Continual Improvement Smarter Operational Immediate, actualised, operational Strategic Innovations Or change what we do? Developmental, potential, theoretical 24

25 So, the future of CRE? CRE has some opportunities to innovate what it provides by developing new service dimensions. Our recent and Future Workplace forums indicated that: Designing the future of CRE depends on the client and service providers operating cooperatively the future belongs to the Cooperative. As technological innovations have freed people from the workplace, so the concept of work has changed. Work is now truly dynamic and people-centred, it encompasses a broader blend of services within concepts of wellbeing so the old building-centric model that has dominated CRE&FM is obsolete. (Is it time for a new title?) Furthermore, there are several candidates to lead an integrated new service (including but not limited to IT and HR); so the existing CRE know-how is no longer a barrier to entry. 25