Facilities Management

DISTRIBUTED WITHIN THE SUNDAY TELEGRAPH, PRODUCED AND PUBLISHED BY LYONSDOWN WHICH TAKES SOLE RESPONSIBILITY FOR THE CONTENTS

YOUR AWARD-WINNING SUPPLEMENT

June 2014 | business-reporter.co.uk

FACILITIES MANAGEMENT

how experts can help you look after your business

Business Reporter · June 2014

2

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Facilities management

Opening shots René Carayol

O

UTSOURCING behemoths like G4S, Serco and ISS are leaders in one of the most hidden and unstylish industries in the business world. These facilities management companies run hospitals and prisons, oversee heating and lighting, clean offices, provide security services, feed employees and much more. The intent is to service anything which enables their customers to concentrate on their core operations.

They employ millions of people, and some estimates would have industry revenues as high as $1trillion a year.

It’s an industry which has had its fair share of criticism over recent years, including over staffing problems at the 2012 Olympics and the overcharging for electronic tagging and monitoring contracts outsourced by the Ministry of Justice, which were referred to the Serious Fraud Office and which saw the return of around £180million to the taxpayer.

Both G4S and Serco have recently changed CEOs, and ISS, the huge private equity-owned and heavily indebted Danish outsourcing group, is seeking a stock market flotation for the third ­time. It had to pull

Find us online: business-reporter.co.uk

Follow us on twitter: @biznessreporter

The big players are finding out that you cannot serve all of the people all of the time previous flotation plans in 2007 and 2011.

Today this attitude of doing anything, for anyone, at any place and at any time is starting to come under duress. Economies of scale form the fundamental bedrock of these firms’ strategies, enabling them to deliver these services at a lower cost. But this jack-of-all-trades model is starting to burst at the seams, and is leaving senior management overwhelmed.

A much more focused model is being exemplified by another outsourcer, Compass. It employs around 500,000 people around the world, but only targets food services, serving more than four billion meals a year and operating in more than 50 countries.

Compass has recently returned more than £1billion in a special dividend. That now brings the total amount returned to investors over the past seven years to some £6billion. But it doesn’t stop there – a

£500million share buy-back last November took total stock repurchases to £1.4billion in the past two and a half years. With the first six months, and pre-tax profits at £595million, Compass sees no reason to be “all things to all men”, and it will remain fixated on food. Rather uniquely, its CEO has been in post since 2006.

It is clear that the accumulation of services offered by the multiplex players like G4S, Serco and ISS demand different approaches, breed a collection of different cultures and require strong, varied expertise and agile management.

The one thing they have not learned from their clients is focus. They must learn to say no to opportunities that stretch their management and resources too thinly. You can serve all of the people some of the time, and some of the people all of the time, but perhaps not all of the people all of the time.

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

Facilities management

Find us online: business-reporter.co.uk

3

Serco branches into military with £26m Qatar contract SERCO, one of the world’s largest facilities management providers, is moving into new areas as it looks to improve its fortunes.

The company, which does outsourcing work around the world, is known for services ranging from managing prisons to transport and facilities management.

But after scandals around the tagging of prisoners, calls for Serco to be banned from carrying out public sector contracts and a costly bout of restructuring, the company has looked embattled.

There was the hint of a possible new direction last month, when the company entered the defence market in the Middle East.

Serco does already work with the military in some countries. But the announcement of a three-year, £26million contract with Qatar’s ministry of defence to provide training for the country’s armed forces signalled a move into a new area, in a region where it has been better known for facilities management.

The contract, which sees the firm working with the Joaan Bin Jassim Joint Command and Staff College in Doha, will involve postgraduate courses taught to some of the force’s “mid-career” officers, as well as the development of course material, investment in IT systems and the provision of both a learning resources centre and facilities management services.

Duncan Mackison, Serco’s managing director for defence in the UK and Europe, says: “This important contract represents a significant entry into the defence market in the Middle East and complements our experience in delivering high-quality courses to the UK military.

“We are delighted to have the opportunity to educate Qatar’s future military leaders and look forward to further developing our partnership with the Qatari armed forces in close collaboration with colleagues in the Middle East.”

The company remains heavily involved in the facilities management sector all around the world. But as it looks to repair its balance sheets, its portfolio of services could expand further.

Competition increasing as FM sector expands

By Dave Baxter IT DEEPLY affects people’s working lives, but remains relatively unknown.

From building maintenance to cleaning, security, how environmentally friendly a workplace is and whether it functions well at all, facilities management has a huge effect on business life.

It covers a large number of workplace functions and how efficiently an organisation is operating.

With new technologies and working practices, the industry is likely to change dramatically in the future. But the sector is enjoy ing good times commercially after a period of decline, according to recent research. A report by MTW Research suggests that the industr y grew by nearly £2.5billion last year, with promises of “inflation-busting” growth in 2014.

The firm’s analysis, based on £70billion of industry sales data, finds that although facilities management providers have declined in recent years, many are now experiencing

growth. Mark Waddy, from MTW Research, says: “For the first time since the recession of 2008/2009, a larger proportion of facilities management providers reported growing sales than those reporting de c l i n i ng p e r for m a nce, illustrating a backbone of strength now clearly evident in the UK facilities management market.”

This may make for cheerful reading, but the report also warns firms that the industry is likely to become more competitive as standards move upwards.

A summary of the report reads: “The research underlines that enhanced service levels are often considered prerequisite for success in 2014, with differentiation i nc r e a s i ng ly e lu s i ve a s standards in the industry continue to rise.

“The need for innovative, strategic solutions within a consultancy framework which provide proactive, rather than reactive, solutions continues to grow in importance in 2014, with this likely to represent a key battleground.”

With thanks to...

Publisher Bradley Scheffer...............................info@lyonsdown.co.uk Editor Daniel Evans.............................................dan@lyonsdown.co.uk Production Editor Dan Geary .................d.geary@lyonsdown.co.uk Reporters...........................................Dave Baxter and Joanne Frearson Client managert Alexis Trinh.......................alexis@lyonsdown.co.uk Project Manager Costa Philipou.........c.philipou@lyonsdown.co.uk

For more information contact us on 020 8349 4363 or email info@lyonsdown.co.uk

The firm also notes that public spending cuts, particularly in the Department for Communities and Local Government, could continue to hurt the facilities management industry, although growth is expected in both education and health.

Despite predicting an increasingly competitive market, the analysis offers hope for those companies that have struggled, possibly because of difficult economic conditions, before. It reads: “Analysis found

that the number of facilities ma nagement compa n ies considered at risk has continued to decline in recent months, with more than 90 per cent of the market regarded as having either excellent or fair credit ratings in 2014.”

With facilities management still playing an important role in how organisations run, its growing strength could be good for businesses in general.

Whether it begins to enjoy a higher profile and greater recognition is yet to be seen.

Business Reporter · June 2014

Facilities management

Outsourcing firm reports sustainability improvements A LARGE facilities management provider says its efforts towards corporate responsibility have improved significantly but some areas remain challenging.

Mitie, a FTSE 250 outsourcing company, has published a sustainability report looking at its work on a number of fronts, including involvement with suppliers, the environment and local communities. The report praises the company in a variety of areas, including its focus on diversity and helping young people.

It notes initiatives such as its Women of Work project, which was launched to raise the profile of Mitie’s female employees, acknowledges the firm’s new partnership with Remploy, an organisation helping people into work, and praises the fact that Mitie has boosted the number of apprentices it trains.

The report also mentions the company’s performance on health and safety, where it says there has been a 10 per cent reduction in the major injury rate, and mentions the establishment of the Mitie Foundation, which focuses on community engagement and investment in local areas.

But the report also admits that, because of added complexity, it is not performing as well as it should in the area of waste management.

The report reads: “Our waste management continues to be a challenge because of the large number of waste management contractors and our high proportion of landlord-serviced properties.

“Our total waste volumes have increased, driven by a net growth in estate size. Our recycling rates remain fairly consistent with last year, though we accept that there is a considerable level of uncertainty in our waste volumes and recycling rates.”

Find us online: business-reporter.co.uk

Follow us on twitter: @biznessreporter

BUILDING ON EFFICIENCY Firms are becoming greener by the day – largely thanks to the huge savings that efficiency can produce.

Dave Baxter reports

T

HOUGH it may not be the top priority, growing awareness and a sense of commercial “self-interest” could convince businesses to run their buildings more sustainably in future, experts claim. From clever designs to insulation and energy use, facilities managers and bosses can use a variety of techniques to boost the efficiency and environmental friendliness of a property, with potential commercial benefits.

One study by the British Council for Offices (BCO), released earlier this year, argues that energy efficiency could save as much as £50 per square metre by cutting overheads as well as improving staff productivity.

Dr Andrew Smith (inset, opposite), a facilities management lecturer at the University of Central Lancashire, argues that these “social and economic” factors could make a big difference to how well a business functions.

“The look and feel of a building, space planning, colour choice, level of individual control over workplaces, levels of natural light, views from windows and indoor plants are all factors that can aid workplace satisfaction, which leads to improved productivity,” he says.

“If the workplace can be used to aid flexible working and worker productivity, there are gains to be made in the social aspects and this leads to economic gains.”

The Co-op’s One Angel Square, Manchester – one of Europe’s most sustainable buildings

There are, he says, examples of good design, as well as companies which have benefited in different ways from a more sustainable approach. The Co-operative Group’s One Angel Square building in Manchester is one of these, using a number of sophisticated features including a façade that manages to insulate offices in winter but ventilate them in summer. On its launch, the building was conferred the highest-ever BREEAM

Stevo1000/Wikimedia Commons

4

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

rating, a measurement that reflects a building’s environmental credentials.

Smith believes that sustainability is already paying dividends for companies in different ways. “I helped implement an environmental management system for an SME, where we calculated annual savings of about £7,000, which is quite substantial for a company of that size,” he says. “In larger organisations, savings can

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

Facilities management

Find us online: business-reporter.co.uk

5

Imagine your worst audio-visual nightmare…

INDUSTRY VIEW

run into millions. This can simply come from identifying efficiencies such as in energy use and waste management.

“It can also lead to an improved brand image and greater investment. Toyota has recently built its brand around hybrid cars and targeted more environmentally conscious consumers.”

Richard Francis, who chairs the environmental sustainability group at the BCO, believes a crude “self-interest” could begin to shift the way companies behave.

“Sustainability is becoming much more selfinterested,” he says. “The reason is that as we measure buildings, we are getting much better through things like smart metering. We are talking about the value of the buildings as well.

We are seeing a convergence of the financial and environmental.”

Francis believes that, after an initial flurry of excitement over the idea of sustainability, the focus on environmental concerns and energy efficiency has become less altruistic, but possibly more effective. “I think we are becoming more mature.” “At first, there are limited results and then there’s a little bit of disappointment.

“People who have been idealistic about this were in two minds about whether they could energise the business community in this, but in business, people need to find value. Most of the learning comes from when you look for new

Toyota is building its brand around its fleet of hybrid vehicles

information. Most of that is being driven by business.”

But some are less convinced that business attitudes to sustainability have really changed.

Professor Paul Ruyssevelt, of the UCL Energy Institute, argues that the clamour for sustainability has yet to reach smaller firms working out of tiny offices.

“There’s certainly a lot of interest from some of the larger companies and property providers in the whole subject of sustainability,” he says. “A number of them, particularly in London, have been working to measure their sustainability.

But the average size of an office building in the UK is 250 square metres, and the smaller companies are typically less well-informed and less able to change that.”

Ruyssevelt notes that while efforts are ongoing to win over SMEs to the sustainability cause, this is less easy than it appears. “Over the years, lots of organisations have tried that,” he says. “The SME is the consultant’s graveyard – it really is difficult.

“Most organisations operating in a smaller office are by and large not focused on their working environment. They are focused on keeping their business going. They don’t have much time to think about the buildings themselves.”

He also points out the danger of the so-called “performance gap”, where predicted carbon savings are far greater than the actual result.

“We are trying to save real energy and real carbon, not theoretical energy and carbon,” he says. “We have to close that performance gap.”

Local authorities urged to monetise ‘surplus’ assets UK LOCAL government is sitting on billions of pounds in “surplus” assets such as dormant property, according to the Audit Commission.

The commission claims that the local government estate has around £2.5billion of surplus assets, which it classes as facilities not being used to

provide or support services, or as an investment to generate income. With the costs involved in maintaining this, the commission is urging councils to either sell surplus assets or find a way to use them, or boost their value.

The body’s chairman, Jeremy Newman, says: “To be clear, we are

neit her advocat i ng t hat loca l government starts a wholesale sell-off of their land and property, nor are we suggesting councils shouldn’t spend money on buying assets or on investment to improve their existing property.

“What we are highlighting is a group of assets that do not provide immediate

benefit to local communities, but still require councils to spend money on maintaining them.

“W hile not all such land or buildings may be sellable, councils should consider how much value they gain from surplus assets and how this could be increased.”

The AV system in the presentation room isn’t working the day before a million-pound pitch.

The boardroom control system has frozen and the board is meeting tomorrow. The situation is critical, and then you realise that you don’t have service cover with a service level agreement (SLA) in place. This is not the time to find out.

Ikure has the technical capabilities and resources to not only ensure that your AV equipment functions at critical periods in your business, but to also provide a proactive maintenance service throughout the year, providing telephone assistance, real-time reporting and feedback on your current AV equipment. Ikure will also keep you informed of the latest technology in the marketplace.

Ikure has been looking after people for more than 10 years and has built up an enviable client list, whom we would also like to thank for being with us for so long and for their continued support. We work very well as a team to ensure you always get the service you deserve.

Ikure has a great team of people who will be only too happy to assist with your requirements, from consultation and design to installation, after-sales care and maintenance.

01628 819 249 www.ikure.co.uk

Business Reporter · June 2014

6

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Facilities management

Find us online: business-reporter.co.uk

Follow us on twitter: @biznessreporter

Consultation heats up over UK airport expansion plans Big data could be huge boon to FM sector

ExpertInsight

THE FACILITIES management industry could be missing out on the advantages of big data because it is too focused on “the here and now”, a specialist claims. Martin Ward, managing director at data analysis firm iSite, believes analytics could help facilities managers better anticipate their needs – for example, for new equipment – but that they are preoccupied by more immediate concerns.

“I think the pressures are here and now and what we are complying to and how we are performing at this moment in time,” Ward says.

“The decisions made in facilities management are in the two-to-four-year window and organisations are just waking up.”

Ward’s firm has worked with Nationwide on a system allowing users to oversee different assets in one place. But he believes systems like these are just the beginning for the industry.

“FM providers are looking at providing more value in the service,” he says. “It’s not difficult getting hold of the data. A lot of it comes down to having the desire and a long-term view.”

By Dave Baxter

AS DIFFERENT facilities fight it out for support, a discussion is being held on the state of Britain’s airports, and which ones it would be possible to expand.

The Airports Commission has opened a consultation calling for “evidence on the connectivity and business models of the UK’s existing airport capacity”. The consultation comes as a row continues over whether major existing facilities would be allowed to expand or whether new airports could be built, with fierce arguments from all sides.

The document stresses the need to look at some of the less high-profile airports, reading: “This call for evidence focuses on the domestic and international connectivity provided by regional airports and airports serving London and the south east other than Heathrow and Gatwick, and considers what recommendations the commission could usefully make to shape this national picture.”

London’s biggest airports have already been scrapping it out for the support they would need to expand. Gatwick recently released a statement claiming it would be “road and rail ready” for a second runway by 2021, quoting

senior transport adviser Hugh Sumner as claiming Gatwick would be ready “with no additional cost to the taxpayer”.

“The ease at which these improvements can be delivered adds yet more weight to the obvious case for a new runway at Gatwick.

“Gatwick already has the highest proportion of passengers travelling by public transport and these improvements will also help

encourage even more.” The statement lists a number of planned transport improvements expected to be achieved by 2021, including upgrades to the M25 and M23 motorways, a doubling of rail capacity by 2020 and new Gatwick Express trains in service by 2016.

Heathrow has also waded into the debate. John Holland-Kaye, Heathrow’s development director and chief executive designate, said: “Expansion at Heathrow matters to the whole country. Only Heathrow will connect all of the UK to fast-growing international markets.

“Expansion at Heathrow has national and local support. We have worked closely with local residents, listened to their concerns and improved our plans. Heathrow offers the fastest, most cost-effective and practical route to connect the whole of the UK to growth and we have proven our ability to deliver a worldclass hub that will make Britain proud.

“Building on Heathrow’s existing strength will connect the whole of the UK to growth, keep Britain as an ambitious global nation and help the UK win the global race.”

In addition to this, Heathrow has outlined plans to increase capacity while minimising negative aspects such as congestion and carbon emissions.

Stannah lift services – across the UK INDUSTRY VIEW

E

stablished in 1867, Stannah has supplied passenger and goods lifts in the UK for almost 150 years.

During 2013, our lift engineers made more than 150,000 planned maintenance visits and answered a further 84,000 call-outs to locations right across the UK. Our 360-plus highly trained lift engineers worked on more than 140 modernisations of lift equipment, escalators and moving walkways. We look after all Network Rail lifts, manage stock for major retailers, supermarkets, universities, hospitals, housing associations, local authorities – even a ship or two. And not just our own lifts, but lifts from all manufacturers.

Planned maintenance of lift stock – it makes sense Lifts require regular servicing.

Preventative maintenance will help to keep your lift in optimum condition, leading to fewer breakdowns, more reliable equipment, and in the medium to long term, lower running costs.

You and/or your company are legally responsible for maintaining any lifts in good and safe working order. You also have an obligation to have your lift thoroughly examined regularly by a

competent person, who will inspect the lift with a view to safety and should advise you of any defects.

The frequency is dependent on the type of lift you operate, its travel, its load and the number of journeys made.

A passenger lift in an office block, relied on all day, every day, will need frequent attention. A platform lift in the same premises, used less, may require fewer visits, however.

Trapped in a lift What to do if someone is trapped in a lift? Firstly, the person in the lift should be able to attract attention by using the alarm within the lift car, or, in passenger lifts installed since 1999, with the in-car telephone. As part of your workplace risk assessment, you should consider the need for passenger release training. Your service provider can help you with this.

Updating lift equipment Regular maintenance will keep your lift operating, but in time it may be necessary to think about a partial or complete modernisation. This decision might be made to: • Improve the performance and traffic flow of the lift

• Improve the reliability and therefore lower running costs • Reduce energy consumption and so lower ongoing running costs • Comply with new legislation • Add value to your building Plan refurbishment projects so you can choose, and plan for, the downtime of your equipment. Choosing a lift service provider to give you: • Local service • Capability to maintain all your lift equipment, from all manufacturers • Up-to-date advice, the latest legislation and your related responsibilities

• A 24/7, 365-days-a-year service • An in-house, out-of-hours call centre • A commitment to quality management via ISO 9001, environmental responsibility via ISO 14001 and occupational health and safety management best practice via ISO 18001 You may find our booklet Lifts: Your Questions Answered useful. Please call us on the number below to request your free copy, or simply download it at www. stannahlifts.co.uk/news-and-resources/ product-literature.asp 01322 227688 liftservices@stannah.co.uk

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

Find us online: business-reporter.co.uk

Facilities management

7

Whistleblower employees spark health and safety crackdown A new HSE ruling means firms could now pay fees for breaching policy

By Dave Baxter A CRACKDOWN on health and safety breaches could be a costly shock for businesses, an expert warns.

Laura Cameron, a partner at law firm Pinsent Masons, believes that greater employee awareness and a stricter approach by watchdog the Health and Safety Executive (HSE) could lead to more firms being inspected, and potentially prosecuted, in future.

She warns that this could lead to expensive court cases for the companies and, in some cases, their directors, if regulations are found to have been breached.

Pinsent Masons recently claimed to have obtained figures showing an 18 per cent increase in the number of HSE inspections carried out because of tip-offs from employees, union representatives and members of the public, as well as other sources including insurance reports on workplace incidents, in a year.

According to the firm, HSE carried out 4,097 inspections following tip-offs in the year to March 31 2014, compared to 3,475 the year before and 2,429 in the 2011/2012 period.

Cameron says that much of this is coming from a greater sense of awareness around health and safety, rather than an army of “disgruntled employees”, but that companies still need to be careful not to break the rules. “I think it’s interesting, because I don’t think it’s

about disgruntled employees,” she says. “I think it’s that people are a bit more savvy about health and safety in the workplace.

“People are more aware and conscious about health and safety.

They are not prepared to put up with working in unsafe conditions.

I think that’s helped by the stories in the news. For example, you had t he factor y collapse in Bangladesh [last April, in which more than 1,000 employees lost their lives]. These things are hitting the headlines and people are thinking, ‘I’m not having this anymore’.”

Any increase in tip-offs could mean an increased likelihood of surprise inspections, which Cameron warns could result in spiralling costs.

“There is a new regime called Fee For Intervention (FFI) that is hitting the pockets of organisations,” she says. “It’s fair for the HSE to say what’s a breach, and how much they charge to recover the costs.

“If you object to the ruling, in your appeal process you could be charged time for that, too.”

The HSE’s own explanation of FFI reads: “These regulations put a duty on HSE to recover its costs for carrying out its regulatory functions from those found to be in material breach of health and safety law.

“Dutyholders who are compliant with the law, or where a breach is not material, will not be charged FFI for any work that HSE does with them.”

Ca meron wa r n s t hat for companies this means one thing

– they must be stricter when it comes to health and safety.

“There will be an increase in inspections,” she says. “Companies have to be on the money, making sure they have their records in place and any relevant documents.

“These are the kind of things that could be targeted. I think some of the companies have been caught unaware in the past.”

For company directors and those responsible for different facilities, health and safety can cover a range of different areas.

In a section of the ruling, entitled “The basic health and safety mistakes crippling British industry”, the HSE website lists problems including poorly maintained or misused ladders, inadequate safet y g uards on machines, exposure to toxic paint vapours, bad ly orga n i sed work place transport and unhygienic welfare facilities.

It adds: “Each year around 170 people are fatally injured at work, and more than 100,000 serious injuries are reported to HSE. “These incidents devastate lives, causing untold suffering and grief – not to mention millions of working days being lost as result and a cost to society of billions of pounds every year.

“What makes matters worse is that many of these incidents are caused by the same basic health and safety mistakes that have been injuring and killing people for decades.”

One in five hospitality workers have stolen from the workplace, reveals poll NEARLY one fifth of hospitality employees have effectively stolen from the workplace, according to a recent survey. Theft in the hospitality sector – an industry closely linked to the facilities management world – may be more common than believed, according to the survey carried out by security company Versapak.

A poll of 2,107 workers from the industry found a tendency toward “workplace theft” among some, with 19 per cent of respondents operating under a split-tip system admitting that they kept customer tips to themselves rather than sharing them with colleagues at least once a month. On top of this, 8 per cent of respondents said they had previously taken money directly from the till or short-changed a customer with the intention of keeping

the remaining money themselves. Leon Edwards, group managing director at the firm, says: “While many may refuse to believe their employers would ever attempt to steal money or conceal tips given to them, our study highlights that it is an increasing problem within the hospitality industry.

“By having sufficient measures in place, businesses can protect not only themselves, but loyal members of staff who would never dream of stealing will also get the tips they deserve.”

Respondents earned an average of £19.50 per shift from tips, according to the research. And of those polled, 82 per cent said that in their current jobs tips were added up and divided between colleagues on the given shift.

Eight per cent of respondents claimed to have taken cash from the till or short-changed customers

Business Reporter · June 2014

8

Facilities management

City in the sky W

ITH THE expansive view across London, a commanding position of the city’s busy skyline and its iconic, shimmering appearance, the Shard has become something of a landmark for the British capital. Its memorable appearance and sheer height mean that it attracts tourists and curious Londoners alike, who book in advance to ascend to its viewing area.

Those behind its design and construction – in a somewhat limited, busy space in the city – have already been praised, with the Shard winning the Emporis Skyscraper Award 2013. The expert panel which chose the winner noted: “Construction of the Shard was complicated by the particularly tight site and therefore needed innovative planning. This makes the result all the more impressive: a skyscraper that is recognised immediately and which is already considered London’s new emblem.”

Renzo Piano, the Italian architect behind the design, describes his work in elaborate terms, saying: “The shape of the tower is generous at the bottom and narrow at the top, disappearing in the air like a 16th-century pinnacle or the mast top of a very tall ship. The architecture of the Shard is firmly based in the historic form of London’s masts and spires.”

The building boasts some impressive statistics. It uses some 11,000 glass panels, has 72 habitable floors and 95 per cent of its materials are recycled. And with a height of 306 metres, it is classed as the tallest building in western Europe.

But the skyscraper, which was designed with the aim of becoming a “vertical city” in its own right, is a huge facility as well as just a feat of architecture. The Shard, which was designed in 2000 and opened last year, may seem impressive from the outside but has a huge amount of activity within. This includes offices but also some apartments, restaurants and even hotels which are attracting varying levels of demand.

There have been some teething problems. One of the building’s luxurious venues, the Shangri-La hotel, opened to great fanfare but faced embarrassment when it emerged that guests could look into each other’s rooms. And hundreds of people were evacuated from the towering building recently because of reports of smoke.

The Shard is one of the ke y e le me nt s of t he London Bridge Quarter regeneration project, wh ic h a lso i nvolves revamping London Bridge bus station and work on public spaces in the area.

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Find us online: business-reporter.co.uk

Follow us on twitter: @biznessreporter

By Dave Baxter As the government wades into the zero-hours contracts debate, these controversial arrangements are becoming ever more prevalent…

T

HE USE of zero-hours contracts could be common, but it is far from popular.

The contracts, perceived to be common in industries such as security and catering, have been castigated by Ed Miliband (inset), Vince Cable and even the international charity Oxfam as a sign of a less fair Britain and a system open to bad behaviour.

In the recent Queen’s Speech, the government promised to start “cracking down on abuse in zero-hours contracts”. And while the term “zero-hours contract” lacks a set definition, certain working arrangements which could be seen as open to abuse seem relatively common.

The Advisory, Conciliation and Arbitration Service (ACAS), a body dedicated to resolving workplace disputes, notes that while the term “zero hours” is not defined in any legislation, it normally means “there is no obligation for employers to offer, or for workers to accept” work, though most individuals involved are given the status of an employee.

It adds that zero-hours workers, as employees, are entitled to annual leave, the national minimum wage and pay for work-related travel.

The extent to which zero-hours contracts are used is uncertain, but it may be significant.

The Office for National Statistics recently estimated that UK employers were using 1.4 million employee contracts which did not guarantee a minimum number of hours, though it added that not all of these would count as zero-hours contracts.

And some believe that confusion over the terms of zero-hours contracts could lead to them being used as a way to exploit employees.Professor Jill Rubery, of Manchester Business School, believes that uncertainty over conditions in the contracts could lead to abuse. “There’s ambiguity over employment rights, and this works to the advantage of the employer,” she says. “There is uncertainty and the employer can use this to get around employment rights, though not all are doing this.

“One example is where they [the employer] reduce people’s hours in the run-up to maternity leave. Effectively, this person should be made redundant.”

Another complaint against zerohours contracts is that they can be used to put pressure on an employee, with a worker being denied future work if they cannot do a certain shift, for example.

Rubery says: “I don’t have any problem with some forms of zerohours contracts – if we are talking about things like concerts and weddings where organisations

THE ZER SUM GAM

want a ready pool of labour and they can just ask who wants to work a shift. But pretty regularly, employers are using it to maximise compliance out of staff. In social care and in hotels, for example, it can be used to not pay for breaks between working hours.”

Calls have been made to clamp down on such incidents – but others argue that the argument around zero-hours contracts has been unfair and one-sided.

Ben Willmott, head of public policy at the Chartered Institute of Personnel and Development (CIPD), an industry body for human resources professionals, believes the contracts can provide flexibility for both employers and their workers.

In November, the CIPD released a survey which estimated that approximately one million people were on zero-hours contracts in the UK. It also found 47 per cent of workers questioned claiming they were satisfied with the contracts, compared with 27 per cent saying they were dissatisfied.

Willmott argues that the advantages of the contracts have been overlooked. “It’s not as straightforward as it seems,” he says.

“In terms of why they are used, from an employer’s perspective they do provide a lot of flexibility and that has given them the ability to respond to peaks and troughs in demand. It also provides flexibility for individuals. That quite often gets overlooked in the process.”

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

E RO M ME

He argues that, as people’s lifestyles change, they may look for more flexibility rather than set hours and conditions.

He says: “I do think that we will see an increase in various types of flexible working arrangements in response to our ageing working population, and the fact that people will want much more

Facilities management

Find us online: business-reporter.co.uk

flexibility over their move into retirement. It’s not just that people want to keep working. Many people can’t afford not to keep working.”

As others, such as workers “downshifting” from full-time work or those looking after elderly parents, demand more flexibility, Willmott believes there should be greater clarity about

what zero-hours contracts entail – including the advantages they offer. Rubery, however, is less convinced about their advantages over contracts with set minimum hours. “Guaranteed hours doesn’t mean you have to be fixed,” she says.

“With a good employer you could experiment to negotiate different hours, even if that doesn’t

9

always mean being able to do it. I don’t think it’s something you can just ban. But for regular work I think you should be able to have guaranteed hours.”

Looking ahead, it is unclear what could happen to zero-hours contracts – but the debate around them is unlikely to die down any time soon.

Business Reporter · June 2014

Facilities management

ExpertInsight

ExpertInsight

ExpertInsight

10

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Find us online: business-reporter.co.uk

Follow us on twitter: @biznessreporter

Building and using good intelligence INDUSTRY VIEW

K

nowledge is a powerful resource in business, but using it well is critically important. Well-informed decision makers transform knowledge into meaningful intelligence by applying it shrewdly based on the best information available. That is the vision behind The HUB, a software solution designed to be a central repository of all the information required by professionals working in corporate real estate and facilities management.

The HUB, which is used successfully by a number of banks, high-street retailers as well as Africa’s largest banking group, provides a single view of all the activity that supports the CRE and FM operation by linking external and internal systems of suppliers and clients alike. It creates a single version of the truth, a concise view of what is going on as regards intelligence – what we call

Building Intelligence. Because while there is always knowledge, there is intelligence – and then there is Building Intelligence. The Building Intelligence that the HUB provides adds an X-factor. It allows decision makers in the CRE and FM functions to measure, optimise and implement sustainable business drivers. More informed decisions can be made about property and assets by combining insight and expertise with trusted information from multiple sources. There is no need to worry about operational efficiencies – instead, property directors can focus on strategic decisions that drive improvement and maintain client satisfaction levels.

Building Intelligence has been developed and then refined by iSite initially with Nationwide Building Society. This joint venture means we can share the lessons about operational efficiency and strategy with stakeholders across the CRE and FM sector. Why? Because we do not see The HUB as a

piece of software or technology: it is a business tool.

What’s more, it is a business tool that can benefit the whole sector by empowering and applying real Building Intelligence.

0115 969 4713 info@isite.co.uk

Inside the UK’s healthiest office How Julius Rutherfoord reduced staff sickness INDUSTRY VIEW

S

pecialist contract cleaning company Julius Rutherfoord’s plan to make its head office in Battersea, London, the cleanest and healthiest office in the UK was not only ambitious, but it was also pivotal in demonstrating the benefits that specialist cleaning services can bring to staff well-being, as well as a business’s bottom line.

Wanting to lead by example, Julius Rutherfoord developed a bespoke action plan of analysis, testing and innovation, firstly to identify key areas for improvement, and then to develop specialist cleaning solutions. To these ends, a number of swab tests were taken using an ATP (adenosine triphosphate) reader to measure bacteria levels. The tests helped Julius Rutherfoord to identify areas where bacteria levels were higher than expected and allowed the introduction of measures to cut bacterial

prevalence in these areas, including staff awareness training, adjusting the cleaning regime and introducing desktop caddies containing hand sanitisers, tissues and desk wipes.

Ongoing swab testing showed a consistent improvement in bacteria levels throughout the Julius Rutherfoord office, and the effect that this appears to

have had on staff absence through sickness is staggering.

Julius Rutherfoord’s HR department has recorded a 28 per cent reduction in working days lost through sickness and staff have embraced the changes, even introducing healthy practices of their own, such as a running club and blood donation groups.

The results of this initiative led to Julius Rutherfoord winning the Healthy Workplace Award in the 2013 Kimberly-Clark Golden Service Awards – the Oscars of the cleaning industry.

“The success of our healthy workplace initiative is good news for everybody involved with Julius Rutherfoord,” said Andy de Sallis, sales and marketing director. “Our staff and their families gain from the associated health benefits, the company enjoys higher levels of attendance and productivity, while our clients benefit from the first-hand experience and knowledge gained by Julius Rutherfoord in winning this award.”

020 7819 6700 www.julius-r.co.uk

Wellbeing: the performance enhancer Happy employees will benefit the bottom line INDUSTRY VIEW

W

ellbeing is at the heart of public policy and the government is driving employers to help

people achieve healthy working lives. The requirement to facilitate this is becoming more prevalent as research consistently shows the link between wellbeing and high performance.

This issue is only going to get bigger, with research from Edenred showing 65 per cent of employers placing increased

priority on wellbeing this year. What does this mean for facilities?

FM has a huge role in supporting employees, guests and clients to achieve a better quality of life. We need to look at this as more than just a health and safety exercise, thinking about the physical but also the mental and social side.

We are working with London-based creative agency, AMV BBDO, which is leading the way with regards to the health and wellbeing of their employees and visitors. The agency has created a social hub where both employees and visitors can take time out or hold meetings.

AMV has worked hard to create a positive experience. Not only has it worked with us to ensure employees and visitors have access to healthy food, but

the space has been designed to facilitate wellbeing and support employees when taking time out to re-energise.

Facilities teams have an opportunity to ensure organisations create positive experiences like this, from the moment someone enters reception to the moment they leave. Wellbeing has become a huge issue for employers, and too much is at stake to be reactive. It’s time for facilities teams to play offensively, not defensively.

Lexington Catering and Lexington Reception Services support organisations by providing five-star food and service to people at work.

020 7332 8585 www.lexingtoncatering.com

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

Facilities management

Find us online: business-reporter.co.uk

Inspector Dogberry

Like many businesses, facilities management firms rely to an extent on their suppliers. But according to recent research, they don’t all know as much as they should about these partners.

Trade Interchange, which

By Natasha Clark, web assistant

focuses on supply chains, Facilities management may strike some as an obscure term, but there

by corporate giant Grant Thornton.

stood at a little over 4 per cent.

recently commissioned

While this is down on the 6.6. per

a survey of 50 facilities

both merger activity and the share

cent growth seen in Q4 2013, it is

management providers.

clout the sector has.

prices of certain large facilities

well ahead of the FTSE All Share

management firms, including

and Support Services indices,

of respondents claiming it

which stood at -1.5 per cent and

could take them months to

1.8 per cent respectively.”

deal with supplier information

names, with equally big share

G4S, Serco and May Gurney,

prices. And for now, the

found that these names

larger players appear

were doing relatively well

to be faring well. Take,

compared to other high-

for example,

profile companies.

an update on

A note on the

The group has been hit by the

This ended with 76 per cent

claims, means facilities

including G4S, but still manages

management providers are

to outperform many high-profile

“leaving themselves exposed

companies’ share

players. And if the economy

to substantial levels of risk due

performance in

prices reads:

continues to improve, the big

to significant gaps in supplier

will hope to do even better.

IBM’s Asset and Facilities Management blog http://bit.ly/1xwsa6r

Cream of the crop

The musings of a business development professional in the facilities management sector offers a detailed look into the future of FM, and asks important questions on what it should be focusing on for businesses in terms of cost cutting and effective services.

Containing more than 250 detailed articles written by leaders working in IBM and beyond, this blog offers some interesting insights. Although some of the articles are a little old, the content is still relevant to facilities management executives today.

“Average growth

facilities management firms

this year, published

across the tracker

ExpertInsight

Whitbagsinfm http://whitbagsinfm.wordpress. com

the first quarter of

Twitter: @dogberryTweets

Growing an environmentallyfriendly start-up facility isn’t particularly easy. This blog offers plenty of tools, advice and case studies to help you get going, as well as the latest news for entrepreneurs on incorporating sustainability into their business plans.

issues, which, the company

commercial troubles of some,

the sector’s

Facilities management is essential for any thriving financial district, with the bankers and accountants of the world often accustomed to gleaming, modern and well operated offices in busy locations.

This, at least, is the case in the City of London, where the sky is littered with huge glass and metal constructions. But Dogberry fears one building may have lost some of its shine.

Software firm Salesforce caused ripples in the City last month when it became the main tenant at 110 Bishopsgate, known as Heron Tower, and decided to change the building’s unofficial title. The new proposed nickname for the building? Salesforce Tower.

Whether it’s the Cheesegrater, the Gherkin or the Shard, Dogberry is a fan of memorable titles for the landmarks adorning the city. But will Salesforce Tower really catch on?

u Editor’s pick Ecopreneurist http://ecopreneurist.com/ category/business

The report, which looked at

are often reminders of how much The industry has some big

11

information”.

Catering may not be the most glamorous side of the FM

such as Wimbledon,

world, but some of it is proving

and Chelsea FC’s home ground,

lucrative. Catering firm Compass

Stamford Bridge. With catering

Group will have pleased some last

looking strong, should Dogberry

month with its half-year results,

get into selling grub?

when it announced boosted profits, improving conditions in

Facilities Management Blog

some of its global operations and

http://maintrain. wordpress.com

promised to pay an extra £1billion to shareholders using a special dividend. Chief executive Richard Cousins said: “Encouragingly, economic conditions and new business in Europe and Japan are starting to improve.”

Compass provides food services at high-profile UK spots

HVAC Quick Load (£4.39, Android/iOS)

Creston Mobile Pro (£69.99, Android/iOS)

This handy app allows facilities managers to control the heating and cooling of buildings via a mobile device.

This high-end control app allows managers to amend and monitor a range of facilities, from lighting to climate.

This facilities manager has years of experience in the field producing tangible results, and uses this insightful blog to share his thoughts and other news stories surrounding the importance of training, servicing, maintenance and cost-cutting.

Getting together behind the scenes A new force in facilities management will get the best out of employees INDUSTRY VIEW

H

ave you ever considered what life would be like without housing and property professionals, parking attendants, cleaners and the facilities management workforce? Without these hidden armies of workers, the places where we live, work and play would be unrecognisable.

The Building Futures Group represents five sectors: housing, property, cleaning, parking and facilities management, and is the trade association for two, cleaning and facilities management.

Members include service providers, end users and the supply chain.

Many people working within the industries represented will have been involved with Asset Skills, the Cleaning & Support Services Association (CSSA) or the Facilities Management Association (FMA) and some will have been members of two or more. It is for this reason that the individual bodies decided to merge and form The Building Futures Group earlier this year, the results of which have provided the industry with a unified voice and prevented members from doubling up on fees.

The organisations shared a vision for the future and by combining their expertise, The Building Futures Group is now able to deliver improved benefits to members including a revised fee structure, vocational qualifications and training, and a programme of high quality events designed to provide a proactive networking environment.

Being at the heart of the industry and dedicated to keeping the workforce abreast of new legislation and best practice, The Building Futures Group has developed a suite of accessible, forward-thinking and responsive workplace training, through its training arm, Asset Skills Training. The comprehensive range of training is designed to help employees gain the key skills and expertise required to drive performance in member companies. The Building Futures Group’s ultimate goal is to support members in their pursuit of ever-increasing standards of service and value as well as assisting them in improving their trading positions through innovation, leadership and improved visibility of the industry.

Sarah Bentley (left) is CEO of The Building Futures Group 020 7920 9632 info@thebuildingfuturesgroup.com

Business Reporter · June 2014

12

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Facilities management

Find us online: business-reporter.co.uk

Follow us on twitter: @biznessreporter

Business W rld UK

One of the world’s biggest facilities management providers is looking troubled after losing its third UK CEO in two years. G4S, which provides security and other facilities management services around the world, has been engaged in a major turnaround operation after falling profits and a number of scandals in recent years.

These include paying the government after charging for tagging offenders who were dead, in prison or nonexistent, as well as the 2012 Olympics staffing scandal.

The departure of Eddie Aston, who took the helm of the outsourcing firm’s UK operations in October last year, could make life harder for G4S as it works to rebuild its reputation and finances.

Germany

ExpertInsight

A German start-up is attempting to shake up the cleaning industry across Europe.

Helpling, which launched in April and is based in Berlin, provides a platform where businesses and individuals can book cleaning services.

It has expanded across different parts of Germany, and is now focusing more widely on Europe.

The service,

which charges users a fee for booking cleaners, may have to compete with a number of rivals, including Homejoy and Housekeep.

Brazil

Brazil’s president has reassured the world that her country has adequate facilities and security measures for the World Cup. The months leading up to the tournament, which has now kicked off, have been dogged by concerns over security and the readiness of facilities such as the country’s football stadiums.

But, speaking shortly before the World Cup started, Brazilian president Dilma Rousseff said the nation was ready for the event. “We’re ready to give the world a wonderful show, with an extra dollop of happiness, respect and courtesy – strong characteristics of the Brazilian people,” she said.

“We know that we’re ready, the stadiums are ready. And the fans who have already been to the grounds know that they’re modern, comfortable and safe.

I assure you that the security structure that we have in place will ensure the necessary tranquillity to enjoy the games, parties and trips to see our beautiful sites.”

Dave Baxter reports on how new dangers such as terrorism and crime mean new challenges for the world of facilities management ROM people “loitering near ATMs” to the possibility of 3D-printed guns being slipped through security, the likes of facility managers, planners and architects will have to consider a range of new and old threats in and around their buildings in future.

Terrorism, theft and public disorder could all cause issues for a business, whether by damaging its property or disrupting operations. But a number of new technologies and approaches are emerging in response to this.

From houses to dolls, 3D printers have already wowed some with their possible uses and the ways they could transform supply chains, as well as manufacturing processes. But there have also been concerns that 3D-printed guns could slip through metal detectors, evading security and counter-terror measures.

Threats like these are already leading to new innovations and counter-measures. One company, Radio Physics Solutions (RPS), has developed a scanner able to detect plastic guns which would not be picked up by

metal detectors. RPS has generated significant interest, and recently managed to attract £700,000 in finance on SyndicateRoom, a crowdfunding site.

A summary on the firm’s site reads: “The main product that we are working on at the moment, and the product which this founding round is geared towards the further development of, is a device that can detect guns and bombs hidden by a person carrying them.

“Currently there is no other way of detecting hidden guns from a distance. The UK’s Home Office and Scotland Yard have both independently tested our patented technology.”

Ian Graham, senior vice president and general manager for Verint’s EMEA video division, believes companies want to be “proactive and not reactive” in dealing with

Taking care of business An intelligent merger can help firms grow to their potential INDUSTRY VIEW

A

s of December 2013, Europa – a UK-based support services group with revenues of £145million – became part of the Bilfinger Group.

Since forming in 1971, Europa had grown to a size where it was well established as one of the largest and most respected independents operating in the UK marketplace. However, in order to progress and facilitate further growth, the business was in need of additional support and development. With an output volume of €8.5 billion in 2013, the expertise of more than 70,000 employees worldwide, a strong engineering and services background and the ability to fund and support further development and growth, Bilfinger was the perfect fit.

Germany-based Bilfinger operates through four business segments – industrial, power, building and facilities and construction. In facilities management alone, Bilfinger is the market leader in

Germany and the third largest in Europe, while worldwide it employs approximately 16,000 people as it rapidly expands its presence throughout the rest of Europe, the USA, the Middle East and North Africa. As part of the worldwide expansion of facilities management operations, the UK had been identified

by Bilfinger as a key growth area within which to establish a significant presence.

For this reason, the acquisition of Europa was the perfect opportunity.

“Europa has a strong geographical spread across the United Kingdom, excellent market penetration in key areas, a sound reputation for customer service and aspirations to grow as a business and diversify into new markets and specialisms,” said Dr Eckhart Morré, CEO of Bilfinger HSG International Facility Management GmbH, at the time of the acquisition.

“Bilfinger is looking to further establish itself in the United Kingdom and Republic of Ireland markets, which we see as critical to pan-European and global success, and key markets in which we need to participate,” continued Dr Morré.

Europa’s culture and business strategy had been cornerstones of the success that had seen the business grow from a small cleaning company to a total facilities

management business. Both Europa and Bilfinger shared a similar approach to business and focus on customers, with the cultural fit between the organisations aligning perfectly as a differentiator from the wider marketplace.

Greig Brown, chief executive officer at the newly named Bilfinger Europa Facility Management, added: “Becoming part of the Bilfinger group was a natural step in the journey, building on our growth as a private company to now being part of a larger international organisation with a more diverse range of service offerings.

“The acquisition has given the management team the support to further develop the business to the next level. The

senior team are proud of what has been achieved so far and want to make an even bigger impact in the UK facility management market. As part of the Bilfinger group, Bilfinger Europa will benefit from the impressive combination of both organisations’ strong service cultures, product strength and scaled ability to support growth within our chosen markets. The additional expertise and experience from within Bilfinger presents great opportunities and a tremendous outlook for our clients and employees.” www.bilfinger.com www.europa-services.co.uk

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

ExpertInsight

threats, but that there are a number of different challenges.

Terrorism is very much on the agenda,” he says. “Theft is there as well. Sometimes there are people who may be loitering in areas near ATMs, and you can spot things before they happen.

“Enterprise organisations need to protect people and property, but they are doing that differently to before.”

Graham says that, from face and licence-plate recognition technology in cameras to analytics, technology is beginning to change the way companies protect themselves and their buildings from terrorism, disturbances and crime.

“The platforms are IT solutions and not analogue,” he says. “They are capable of moving to the age where you can have intelligent devices instead of monitoring banks and screens you can react to when something happens.”

Other approaches to threats are more conventional.

The National Counter Terrorism Security Office, which focuses on a range of different forms of terrorism, advises: “Your risk assessment will determine which measures you should adopt, but they range from basic good housekeeping (keeping communal areas clean and tidy) through mitigation against flying glass, CCTV, intruder alarms, cyber security and lighting, to specialist solutions such as mail-scanning equipment.” It adds that the awareness of staff – including those from traditional

Facilities management

Find us online: business-reporter.co.uk

facilities management industries such as cleaning – is an important element of security.

The report reads: “The vigilance of your staff (including cleaning, maintenance and contract staff) is essential to your protective measures. They will know their own work areas or offices very well and should be encouraged to be alert to unusual behaviour or items out of place.

“Staff should be briefed to look out for unusual packages, bags or other items in odd places, carefully

Below: ATM security is a relatively new factor in facilities management; Opposite page: 3D printed plastic guns are a new threat to building security

13

placed (rather than dropped) items in rubbish bins and people showing unusual interest in sensitive, important or less accessible areas.”

There is an awareness of how building design itself could help thwart terrorists, or at least limit the damage they can cause. The Royal Institute of British Architects (RIBA) has previously published guidance stating how experts could design buildings in a way to help combat terror attacks.

A 2010 guide, which was published as part of work with the Home Office, listed a number of design elements which could prevent or limit the fallout of terrorist attacks.

It recommended designers use barriers such as bollards to “mitigate” attacks, and advised they engage in “damage limitation” using, for example, blast-resistant glass. It also noted that preparations, such as established fire evacuation procedures, could be important.

The RIBA president at the time, Ruth Reed, warned: “It is important that our built environment continues to reflect that we are an open and inclusive society and that in interpreting these new requirements our buildings do not convey that we are driven by security measures.”

With new technologies developing, the threat to workplaces and the people using them is likely to evolve.

But a mixture of old and new methods could help fend this off.

A partnership approach reaps rewards INDUSTRY VIEW

P

rivate finance initiatives are now part of the national lexicon, and an accepted way of building and maintaining public infrastructure; however, when Bouygues Energies & Services started its 25-year, £82million build-andoperate PFI agreement with King’s College London in August 1999, the terrain was less familiar.

Over the past 12 years, the successful partnership, one of the first PFIs in the UK, has delivered the refurbishment of the Franklin-Wilkins Building on the college’s Waterloo Campus, the demolition and replacement of Old Hunt’s House on Guy’s Campus; and lifecycle replacement and facilities management at both locations.

In February 2012, Bouygues Energies & Services, working with King’s, launched an efficiency review to see how the FM service delivery could be made more efficient and effective. “Over the first 12 years of the relationship we had introduced new ideas, tools and skills to keep abreast of technological changes and developments. The review gave us the opportunity to think outside the current relationship and look at what else could be achieved by both parties,” says David Carr, managing director, FM at Bouygues Energies & Services.

A joint review team considered ideas from facilities staff, academics, students and other support staff. They identified more than 150 opportunities, which were evaluated against potential commercial benefit, cost of and impact

of change, and produced a league table of opportunities. Over the following year, Bouygues Energies & Services delivered more than £1.1million in savings to be reinvested in student services. This was achieved by a mixture of simple changes and fundamental strategy alterations across four areas: mechanical and electrical maintenance; soft services such as cleaning, catering, waste management and security; energy savings; and the innovative use of the lifecycle fund.

In maintenance, for example. Bouygues Energies & Services and King’s introduced a new approach to asset management. Lean Six Sigma tools such as Failure Mode and Effects Analysis were used to analyse assets holistically, including performance, reliability and criticality, which lead to the redesign of maintenance schemes to be more data-driven and flexible, rather than a traditional cyclical model.

Optical counters were pioneered in areas such as washrooms, to assess traffic which allowed the team to lean engineer the facilities provision – providing increased levels of washroom servicing during busy periods, and reassigning resources to other tasks during quieter periods.

Bouygues Energies & Services and King’s introduced 20 different types of energy efficiency and savings projects, including the use of variablespeed drives for pumps and fans on equipment such as air-handling units; LED replacement; insulation on pipework and ductwork; improvements to chiller and boiler performance; light sensors; and

the introduction of variable ventilation profiles to suit user occupancy. A key element of the success was to change people’s behaviour and adopt a “one-team” approach through multi-skilling, particularly of helpdesk, reception and security roles. The concept of “it’s not my job” was challenged. Staff and management were retrained to see the whole facility as their responsibility, and that everyone had a part to play in achieving that goal. The boundaries between roles have blurred, with staff taking responsibility for the look and feel of the campus, whether that be picking up litter or reporting issues they spot around the campus which they cannot deal with. There was a real coming together of FM staff to deliver a one-stopshop service for King’s College London. development@bouygues-es.co.uk www.bouygues-es.co.uk

Focused on delivering energy control solutions across UK and Europe Chartwell Controls An established turnkey solution provider for BMS or BeMS applications with a proven track record across Europe.

As well as the more traditional market sectors Chartwell provide solutions and remote support services to the multinational Data Centre sector.

We pride ourselves on delivery and repeat business.

Energy reduction Chartwell’s dedicated support department delivers the on-going support of installed systems. The focus is to provide end clients with a driven approach to reduce energy through smart control strategies and smart energy equipment.

“Find out how your buildings energy usage can be reduced by maximising on your BeMS investment?” Contact Chartwell for your free site review.

Commited to energy reduction

Email us: Projects UK p.coker@chartwell-limited.com Projects EU d.buchanan@chartwell-limited.com Service & Energy a.king@chartwell-limited.com

Business Reporter · June 2014

AN INDEPENDENT REPORT FROM LYONSDOWN, DISTRIBUTED WITH THE SUNDAY TELEGRAPH

Like us: www.facebook.com/biznessreporter

Facilities management

Find us online: business-reporter.co.uk

15

The debate What is the biggest Business Zone FM challenge faced by UK business today?

Industry view

Alex Riche

Sarah Bentley

Neil Longley

Martin Ward

Johnny Dunford

Managing director Concourse FM Ltd

Chief executive The Building Futures Group

MD Opale Management Services Ltd

Managing director iSite

Global commercial property director, RICS

Aligning operational overheads with business values and objectives and ensuring total cost and service levels are appropriate to the business needs is one of the biggest FM challenges today. To achieve this organisations must clearly identify how FM supports their business and which support services are appropriate, then determine a robust contract strategy, aggregating related services to minimise the number of suppliers. This aids procurement and focus monitoring so FM staff can proactively manage suppliers, ensure legislative compliance and deliver customer satisfaction.

FM staff should always be an integral part of any tendering process, as they will have to mange the outcome! The efficient provision of support services and a clear vision and understanding of how they contribute to the bottom line will give companies a competitive edge.

Facilities management remains a predominantly hidden industry and this is one of the main obstacles when looking to attract new talent to the sector. It is an issue that will impact UK businesses as the skills gap broadens, and something that we as the representative body for the cleaning and facilities management sectors are addressing.

The Building Futures Group is actively working with educational establishments and companies to promote entry routes into the industry and raise awareness of the varied careers on offer. Many of our member companies provide apprenticeships – an excellent way of providing structured progression to young people, in addition to work experience placements.

We are working with employers to raise the profile of our dynamic industry and provide specialist and responsive training programmes from entry level through to senior management, helping people to achieve their goals.

A “seam of discontent” exists within any FM contractual relationship, principally fuelled by unrealistic, poorly communicated or inappropriate expectations.

The shorter the relationship, the more FM is perceived as a commodity and the less valued it becomes. It is a downward cycle.

It is commoditisation that threatens the relationship – the wellbeing of the FM industry impacts FM’s ability to attract capable resources and reduces its contribution to wider industry.

Our challenge is to exile commoditisation. To do this we need a simple philosophy – it is up to the client to create an environment within which the supplier can be successful, and it is up to the supplier to be successful for that client. We should adopt innovative procurement techniques rather than those we have been using for the last 20 years – ones that craft the right environment and excite the supplier to success.

Rather than the biggest challenge, we need to talk about the biggest opportunity for FM. The potential sits with information – a bastion of wealth lending organisations a long-term view encompassing not just the property asset, but all facets of an estate, from workplace effectiveness to energy performance.

It allows CRE and FM teams to collaborate effectively, identifying a single source of building intelligence: breaking business silos, reducing risk and improving decision making.

By accessing the information buried in the layers of reporting data generated by the supply chain, FMs can unlock the building intelligence required to reach dynamic joint decisions that give the customer what they want – value. The challenge is to stop doing what has always been done; listen, swap ideas, analyse data, simplify processes to share a seat at the top table, and educate the client to see the importance of data and “intelligence” as a long-term business asset.

Integration summarises the biggest FM challenge faced by businesses today – whether this is buildings and bytes, or people and behaviours, the aim is to ensure FM adds value to the business. A report, commissioned by RICS, found that organisations such as the BBC and The Co-operative Group, with an integrated approach to the management of properties and facilities, successfully create better places for people to work, improved sustainability and more enjoyable places for people to visit.

To achieve this, business leaders must take a strategic overview of workspace management, ensuring facilities support the business and improve overall efficiency.

RICS’ Strategic FM Guidance Note, produced last year, lays out clear recommendations on how FM and business can achieve this strategic approach by ensuring heads of FM are integrated in the core values of the organisation. Only then can FM make the impact it is capable of and achieve the recognition it deserves.

0844 474 1555 www.concoursefm.com

020 7920 9632 info@thebuildingfuturesgroup.com

neil.longley@opale.co.uk www.opale.co.uk

07904 268085 mward@isite.co.uk

jdunford@rics.org www.rics.org/facilitiesmanagement

The directory

Expert workplace solutions aligned with your companies values and business objectives.

The PURE Water Company supplies an alternative to the traditional hot tap – The PURE Touch Tap, operated via a remote touchscreen.

0844 474 1555 info@concoursefm.com www.concoursefm.com

Why not come and test the tap for yourself at the FM Show, Stand Q1410 and taste the difference?

Step On Safety is one of the UK’s leading GRP specialists. Step On Safety designs, supplies and installs bespoke GRP safety flooring and associated products for the construction, rail, water and energy industries. We deliver quality solutions, on schedule and on budget.

Contact: Mark Pitt, 0844 809 4404 www.purewater.uk.com

01206 396446 www.steponsafety.co.uk