Facility Management: June | July 2018 by Niche Media

SOLUTIONS FOR THE BUILT ENVIRONMENT

JUNE | JULY 2018

FACILITY MANAGEMENT

$10.95 inc GST

www.fmmagazine.com.au

THE WEAKEST LINK

IoT is everywhere – are you prepared for cyber risk?

TALKING THE TALK JUNE | JULY 2018

Peter Dollin on speaking the C-suite’s language

CHANGE MANAGEMENT SPECIAL A business without bosses? Why you need a portfolio change manager What moves you?

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Contents FM WORKSPACE360

15 Wishing well In this new platform bringing you news of the latest and greatest innovations in facility management, FM looks at the new iteration of the WELL building standard.

OPENING FEATURE

16 The weakest link The ubiquity of IoT devices in the built environment means facility managers must be fully prepared for cyber risk.

PROFILE

28 Talking the talk As head of workplace at KPMG, Peter Dollin has learned that, to influence the C-suite, you need to be speaking their language.

RISK MANAGEMENT

TECHNOLOGY

Don’t torch your growth

Connectivity – can your venue take the strain?

CONTENT PARTNER FEATURES

22 The golden age of docking The smartest docking stations are device agnostic and leave desks clutter free, writes Steve Bender.

24 Dollars and no sense Eschewing those eco-unfriendly plastic water bottles is also good for your hip pocket, reports Adrian Cugnetto.

Heightened demand for warehouses and the uptake of robotic solutions has facilities managers looking to improve efficiency without increasing fire risk.

MAINTENANCE

The world’s first 5G network has launched, so what are the implications for Wi-Fi in large venues?

64 Death of the spreadsheet

Time to come clean

Is facilities management software the key to opening property communications?

Your cleaning team is the frontline for keeping your facility functioning at its best.

WORKPLACE CULTURE

Badda bing, badda BIM

Forget those filing cabinets full of outdated specifications and yellowing site building plans – it’s time to go digital, even for your doors and door hardware, explains Brian Cornwell.

Scrubbing up nicely

More than the numbers

An introduction to some of the leaders in their respective cleaning fields.

Facilities managers need to change how they define and measure success to focus on outcomes.

www.fmmagazine.com.au

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JUNE | JULY 2018 FM

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Contents FM REGULARS

8 10 13 66

Editor’s comment News New FM products Events

HARD FM

Property Watch – what moves you?

Things are looking up

Prevention is better than cure

The latest technologies utilised in lift repair and operation are absolutely cutting edge.

Water quality management plans are essential for cooling towers, along with effective regular monitoring of hot water systems to avoid a legionella outbreak.

CASE STUDY

CONNECTIONS

CHANGE MANAGEMENT SPECIAL

Necessity, scarcity and purpose

Necessity is the mother of invention, but Marcus examines whether technology itself is creating necessities.

Getting the genie back in the bottle Tired of the blame game on rising tariffs? There is a way of taking back ‘the power’.

FM JUNE | JULY 2018

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FM INNOVATION AWARDS

59 Inaugural ceremony and party

A business without bosses? Several leading companies are changing the game to drive true agility in organisational design.

ENERGY WATCH

Moving from old premises to new should be a linear progression, but it’s easy to underestimate deadlines and it could impact your ability to negotiate the best deal.

54 Why you need a portfolio change manager Can every project be considered a change project? When it comes to technology, the answer is ‘yes’.

60 Sponsors

61 Overall winner – South Melbourne Market

62 Category winners

www.fmmagazine.com.au

6/06/18 11:45 AM

Are you using

RAC-licensed technicians to manage your cooling systems? All installation, servicing and repairs of refrigeration and air conditioning (RAC) systems containing fluorocarbon refrigerant must be carried out by a qualified tradesperson who holds an appropriate licence issued by the Australian Refrigeration Council (ARC). Benefits of using RAC-licensed technicians: › Minimising system down-times › Extending the running life of these vital systems

› Reducing the risk of substandard repairs and maintenance = cost savings

› Reducing emissions of ﬂuorocarbon refrigerant into the atmosphere, that can damage the ozone layer and contribute to global warming

› You are legally managing your facility’s cooling systems

Don’t risk it The use of unlicensed technicians increases the risk of unlawful emissions of refrigerant. Under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, penalties of up to $63,000 for an individual or up to $315,000 for a corporation may apply. To check if your technicians are licensed and to ﬁnd RAC-licensed tradespeople visit www.lookforthetick.com.au/FM The handling and trade of ﬂuorocarbon refrigerants is controlled and enforced by the Department of the Environment and Energy. The Australian Refrigeration Council administers the RAC licensing scheme on behalf of the Department.

For further information visit www.lookforthetick.com.au/FM

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8 | EDITOR'S LETTER

The Internet of Things has revolutionised much of the way facility managers go about their business, but there’s no doubt it has created a whole new set of challenges as well. As never before, we’re seeing an extraordinary level of integration between the systems underpinning smart buildings, the people who work in them and the teams that manage and maintain them. But with every technological innovation that comes to the fore, there are legions of criminal types intent on exploiting whatever they can. Insurers would call it business ‘disruption’ until that term was hijacked as a synonym for innovation itself. In this issue of FM , we look at how prepared facility and building managers are to manage cyber risk. Given the implementation of new data privacy laws and the announcement of a hack into a system or worse every other week, it’s timely to remind FMs that their systems are only as good as the weakest link. We also profile Peter Dollin, head of workplace in Australia for global behemoth KPMG. It’s easy to assume someone in Peter’s position came through traditional financial services, but his story is unique – starting his working life as a plasterer. With workplace change and deriving the maximum value from the built environment remaining top of mind for many FMs, we have a special feature on change management, featuring two of our regular columnists, Rodney Timm and Karen Skillings. This is my final issue as editor of FM and I’ve very much enjoyed immersing myself in such a diverse and stimulating environment. I hope you enjoy the read as much as I’ve enjoyed the ride.

Associate publisher Lachlan Oakley lachlan.oakley @ niche.com.au (03) 9948 4952

Editorial Managing editor Madeleine Swain Editor Michelle Dunner michelle.dunner @ niche.com.au Online editor Tiffany Paczek

Advertising Business development manager Nirma Ledford nirma.ledford@niche.com.au (03) 9948 4992

Production Editorial design Keely Goodall Production manager Alicia Pinnock alicia.pinnock@niche.com.au Design and digital prepress Karl Dyer

Publishing Chairman Nicholas Dower Managing director Paul Lidgerwood Publisher and commercial director Joanne Davies Financial controller Sonia Jurista

MICHELLE DUNNER Subscriptions

Michelle has left some rather large shoes to fill, but I’ll do my best! By way of introduction, my name is Tiffany Paczek and I am the new editor of FM . I’ve been the online editor for some time now and I’m looking forward to delving further into the industry in an in-depth and comprehensive way. If you have a topic or an issue that you’d like to see in the pages of FM in the future, please don’t hesitate to get in touch with me at tiffany.paczek@niche.com.au. I’ll see you on the other side of my first issue! Until then, enjoy this final offering from Michelle. TIFFANY PACZEK CONTENT PARTNER CONTRIBUTIONS A Facility Management content partner is an organisation with which we’ve entered into a partnership to collaborate on content for the magazine. In this issue, thought leaders from their respective organisations are:

Subscription enquiries Call 1800 804 160 or email subscriptions@niche.com.au

Printing Southern Colour Stock images courtesy of 123RF Cover photography: Matt Dollin FM online — fmmagazine.com.au — twitter.com/FMmagazine_au — facebook.com/facilitymanagementmagazine — linkedin.com/Facility Management magazine

FM is a publication of HH & M Media Pty Ltd, a member of the Niche Group. HH & M Media ABN 81 091 724 588 Niche Group ABN 20 097 172 337 1 Queens Road Melbourne, Victoria 3004 Tel: 03 9948 4900 / Fax: 03 9948 4999

ASSA ABLOY’S BRIAN CORNWELL

BILLI’S ADRIAN CUGNETTO

HUMANSCALE’S STEVE BENDER

Brian Cornwell is BIM technologies manager at ASSA ABLOY Australia Pty Ltd.

Adrian Cugnetto is the marketing manager for Billi Pty Ltd.

Steve Bender is global managing director of technology and monitor arms Humanscale.

FM JUNE | JULY 2018

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This issue of FM magazine may contain offers, competitions, surveys, subscription offers and premiums that, if you choose to participate, require you to provide information about yourself. If you provide information about yourself to HH & M Media (the publishers of FM magazine), HH & M Media and Niche Group will use the information to provide you with the products or services you have requested (such as subscriptions). We may also provide this information to contractors who provide the products and services on our behalf (such as mail houses and suppliers of subscriber premiums and promotional prizes). We do not sell your information to third parties under any circumstances, however the suppliers of some of these products and services may retain the information we provide for future activities of their own, including direct marketing. Niche Group will also retain your information and use it to inform you of other Niche Group promotions and publications from time to time. If you would like to know what information Niche Group holds about you, please contact The Privacy Officer, Niche Group Pty Ltd, Suite 1418, Level 14, 1 Queens Road, Melbourne VIC 3004.

FM ISSN 1320-3975 Advertisers and contributors of editorial to FM Magazine acknowledge they are aware of the provisions of the Anti-Discrimination Act 1977 and the Trade Practices Act 1974 in relation to false and misleading advertising or statements and other unfair practices and of the penalties for breach of provisions of those acts. The publisher accepts no responsibility for such breaches. FM Magazine is published bi-monthly. Opinions expressed by contributors are their own and not necessarily endorsed by the publisher. © 2018 HH & M Media Pty Ltd

www.fmmagazine.com.au

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10 | NEWS ROUNDUP

Majority of Australians willing to sacrifice salary for benefits New research shows there’s been a shift in the workplace as Australians increasingly value flexible working arrangements, for many even over a higher salary. The survey of 1000 Australian office workers, published in the newly released 2018 ‘Robert Half Salary Guide’, found the majority (84 percent) of Australian office workers are willing to accept a lower salary for more benefits. Flexibility tops the charts, as almost half (47 percent) would be willing to accept lower pay in return for flexible working hours. Other preferred benefits include the option to work from home (40 percent), increased holiday allowance (37 percent), medical benefits (36 percent) and travel allowances, such as company cars and fuel expenses (31 percent). Andrew Brushfield, director of Robert Half Australia, says, “While salary is a prime motivator and the main incentive of a remuneration package, it is one component. Flexibility is increasingly becoming one of the most in-demand workplace benefits and Australians are actively seeking out job opportunities that not only satisfy their monetary ambitions, but also their lifestyle needs, such as flexible working hours, the ability to work from home or additional holidays. “In a market characterised by slow wage growth, Australian companies may not be in a position to award pay rises or higher starting salaries. In such cases, employees should consider negotiating for benefits other than more pay, such as training and professional development opportunities or more leave. “Employers are fast realising these non-monetary benefits help to build a satisfied, motivated, productive and loyal workforce. In a candidate-short employment market, Australian companies benefit from diversifying their incentives offerings beyond the purely financial aspect in order to attract and retain high-calibre professionals.” Meanwhile, Australian Millennial workers are motivated by more than materialism, according to a global data analysis by HR think tank Reventure. Lead researcher Dr Lindsay McMillan says findings contained within the Workplace Wellbeing report should not be completely unexpected. Only 48 percent of Millennials indicated financial security is important to ensure high levels of personal well-being compared to 60 percent of Baby Boomers and 54 percent of Generation X. “Forty-two percent of workers define well-being as balance in physical, mental, social and spiritual life and only 12 percent said it is having their desire for a house, income and success met,” he says. “Less than half of young people think financial security is a priority for well-being, and it drives home the point that money isn’t the main motivation for many Millennials in the workplace. “What is interesting is that despite this, Millennials are highly driven towards success – twice the rate than that of Baby Boomers – yet do not seem to be motivated by financial security. “While this may seem like an imprudent approach from young Australians, it actually reveals that Millennials aren’t as materialistic as they are often portrayed. The implication for business leaders is: how do I motivate my younger employees if half of them want a kind of success not related to how much money they earn?” McMillan says business leaders should focus on benefits that do not have a price tag. “Creating new opportunities and experiences for career advancement, professional training and especially mentorship will help create jobs that young people really want,” he says. “Being successful and accomplished is more than just a stable income – rest and relaxation and healthy friendships rated higher than financial security across all generations.”

FM JUNE | JULY 2018

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SOFTWARE AND IT LOGISTICS TO SHAPE FUTURE OF WAREHOUSE MANAGEMENT Companies in the warehouse management sector need to implement new software and IT logistics technologies or risk losing competitive advantage, according to Australian warehouse management and transport systems company, Paperless Warehousing Group. Chairman and chief executive John Vercoe says there are massive changes in best-practice methods for operational efficiency throughout the sector. “While it may be tempting to stick with the status quo, the reality is that technological advancements are having a huge impact on our industry and, frankly, this is a positive thing,” he says. “From reduced errors and manpower requirements, to improved processing speed, accuracy and capabilities, companies that fail to entertain the possibilities offered by software systems and the latest hardware and equipment do so at their own peril.” The company says that increasingly across the manufacturing spectrum, organisations are incorporating new software such as cloud computing, Cyber Physical Systems (CPS) and IT logistics to digitally transform warehouse management. “The expanding capabilities of software and the Industrial Internet of Things (IIoT) are drastically affecting the future of manufacturing, warehousing and the entire supply chain,” he says. “This is propelling warehouse management into the next revolution of industry, known as Industry 4.0. Mobile and cloud technologies and integrated systems are truly making the manufacturing and warehousing process more productive, costand energy-efficient, safer and more streamlined. “We are already seeing IT and cloud software in factories providing new solutions in manufacturing, warehousing and 3PL environments – enabling real-time monitoring of flow and resources, transparency across multiple points and the seamless exchange of operational information.” The latest logistics, warehousing and supply chain technologies will be a major focus at CeMAT Australia 2018, being held in Melbourne at the end of July, with Industry 4.0, Logistics 4.0, automation and the warehouse and supply chain all being covered by leading industry experts at the exhibition.

www.fmmagazine.com.au

1/06/18 11:03 AM

YOU HAVE A TASK. KÄRCHER HAS THE SOLUTION.

Just right for every type of cleaning. Requirements for efficient cleaning are different in almost every case. Depending on the type of floor covering, the area, the degree of soiling and whether it is an indoor or outdoor location, factors such as hygiene regulations, work safety and environmental compatibility must be taken into account. Kärcher is your complete solution provider with all the possibilities and advantages that come from 75 years’

experience as world leaders in cleaning technology. With more than 35 Professional Sales and Service staff in Australia, plus a nationwide dealer network we support you with demonstrations, trials and consultation. 1800 675 714 www.karcher.com.au

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12 | NEWS ROUNDUP

NEW HOTEL TO DRAMATICALLY CUT ENERGY CONSUMPTION A new Melbourne hotel will set new design standards in energy efficiency to help cut as much as 25 percent of its energy consumption, drawing on a $39 million investment commitment from the Clean Energy Finance Corporation (CEFC). The Holiday Inn Express at Southbank in Melbourne is being developed by the Pro-invest Group. As part of the CEFC finance, Pro-invest Group will lift the design standard for the project, ensuring the latest clean energy technologies are included from the construction stage. CEFC CEO Ian Learmonth says: “These design changes will result in a 25 percent drop in the hotel’s energy use, delivering a substantial energy saving that will provide ongoing benefits for the hotel, carbon-conscious guests and for the environment.” Pro-invest Group CEO Ronald Barrott says the company is committed to ensuring all its assets achieve high-ranking ratings for energy and water. The Southbank project will include high-performance glazing, high-efficiency air-cooled chillers and condensing boilers, and solar photovoltaic systems on the hotel’s roof. “Other initiatives include regenerative lift drives rather than standard lift motors, which will enable the hotel to recycle energy. Integrated building management and guestroom energy management systems will also mean we can both monitor and drive optimum building energy performance,” says Barrott.

FM JUNE | JULY 2018

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Automation expected to increase headcount Australian employers report that communication is currently the most valued and in-demand soft skill, according to a new survey by ManpowerGroup, which predicts IT, frontline and customer-facing roles will see the greatest hiring increase in the country. Australian employers are anticipating that the continued growth in automation will drive an increase in headcount over the next two years, requiring more people and more skills. The report – ‘Robots Need Not Apply: Human Solutions in the Skills Revolution’ surveyed 20,000 employers across 42 countries, including over 1500 in Australia. The survey found that automation is happening at different speeds across Australia, with key industries and functions likely to suffer while others gain. In response to the impact of automation, 21 percent of Australian employers expect to grow their workforce, while 62 percent plan to maintain current headcount over the next two years, resulting in a net gain for employment, but with one caveat – job seekers need to have the right blend of skills. ManpowerGroup Australia managing director Richard Fischer believes that, while today’s in-demand skills are quickly evolving in response to digitisation, this latest data demonstrates the positive impact that automation can have on the Australian labour market. The report says the best blend of high-tech and high-touch will be the combination of core human strengths with technical and digital know-how.

www.fmmagazine.com.au

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NEW FM PRODUCTS | 13

HID Global SAFE Enterprise

EKA CyberLock 20 Key Vault The EKA CyberLock 20 Key Vault is a great solution for managing contractor access. CyberKeys are contained within the Vault unprogrammed until a PIN or RFID card is presented, downloading a user’s access permissions onto a CyberKey. After use a full audit of the CyberKey’s actions are downloaded to the software. To read more about this innovative product, see the article on page 52 in the April/May edition of FM magazine. Contact EKA on 1300 722 311 or sales@ekasecurity.com.au. www.ekasecurity.com.au

HID Global SAFE Enterprise software suite streamlines and automates secure identity management, compliant and operational analytics across multiple sites and systems in a single, fully interoperable platform – allowing you real time visibility into your entire security infrastructure. Find out how to lower your risk profile and operational costs by visiting: www.quantumsecure.com/know

Adams Pest Control Latest electronic monitoring devices

Dahua HD-CVI cameras Save costs by upgrading your existing analogue CCTV systems to Dahua HD-CVI without the need to re-cable. Dahua HD-CVI cameras, which have up to 4K resolution, can be run over existing co-axial cables, resulting in a huge reduction in upgrade costs as well as reduced installation time at your facilities. www.dahuasecurity.com

Karcher 36V Battery Powered Range

Rapid Pest Response: technology that allows rapid response to pests via a free app. Hot Spot Monitoring: mitigating risk through data collection via 24/7 monitoring sensors, giving protection between scheduled services, in a process tailored to fit circumstances/buildings. Ground Level: the exact time of a possible infestation, capture or source of rodent activity is often unknown. Sensors track and control with continual monitoring giving a Rapid Pest Response. Roof Void: sensors tracking activity along eaves, pipes and suspended ceilings. Below Ground: waterproof devices with NFC enabled sensors, so the signal can penetrate concrete and solid earth. www.adamspestcontrol.com.au

Range includes: Backpack Vacuum BV 5/1 Bp, Dry Vacuum T 9/1 Bp, Scrubber Drier BR 30/4 C Bp Pack Key points: Full mobility. Strong performance. Effort and time savings. We are pleased to release the new 36V 7.5Ah batterypowered range of professional cleaning equipment. The new 36V range increases productivity and saves effort and time up to 23 percent compared to corded machines. These units excel with unrestricted, cordless use and market leading mobility and flexibility. Cordless operation provides safety and eliminates the risk of trips, falls and injuries. Outstanding cleaning performance with up to 46-minute run time (on BV 5/1 Bp and T 9/1 Bp) makes it similar to mains operated equipment. Karcher Australia 1800 675 714 www.karcher.com.au

www.fmmagazine.com.au

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JUNE | JULY 2018 FM

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FM WORKSPACE360 | 15

FM Workspace360 Wishing well Introducing FM Workspace360, a brand new platform bringing you news of the latest and greatest, and most exciting innovations in the various spheres of facility management. To launch the platform, FM looks at the brand new iteration of the WELL building standard. By TIFFANY PACZEK.

he times they are a-changing, and in almost every aspect of our lives progress is rife and we’re making leaps and bounds into the future. Technology is moving at a pace so rapid that most of us can’t keep up, though that doesn’t stop us from being swept along for the ride. The building and facilities management industries are no exception to these developments, and it’s a field that affects most of us, whether we work in the FM industry or not. We all encounter buildings every day – we live in them, we work in them and we interact with them, often in ways we don’t even realise. The International WELL Building Institute (IWBI) is leading the global movement to transform our buildings, and thus our communities, in ways that will help people thrive within them. The IWBI recently unveiled its new version of the WELL Building Standard, the first rating system to focus exclusively on the impacts of buildings on human health and wellness. Launched worldwide and with great fanfare in New York, Beijing, London and Sydney, the WELL v2 pilot includes a full suite of enhancements that advance IWBI’s global aim to build a healthier future for all. WELL v2 is informed by key lessons learned from nearly 1000 projects that are registered or certified in 34 countries across the world. The intent behind WELL v2 is to empower project teams to pursue the interventions that matter most to their project and their community without sacrificing WELL’s

www.fmmagazine.com.au

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comprehensive, evidence-based approach and commitment to performance verification. IWBI chief product officer Rachel Gutter says, “Since [the WELL Building Standard’s] launch in 2014, we’ve learned a lot from the thousands of WELL users, practitioners and researchers who have embraced WELL as a tool for making building mechanisms to deliver health and wellness benefits for all. “WELL v2 is our effort to consolidate the latest knowledge, leading research, new technology and advanced building practice to extend the benefits of WELL buildings to more people in more places.” The refinements and enhancements to the rating system include: ● a new feature set with fewer preconditions and weighted optimisations ● a consolidation of multiple pilots into one WELL and improvements to the ‘All Projects In’ approach ● new pathways to achieve intents, with a focus on feasibility for existing buildings and commercial interiors ● an optional early phase review for projects wishing to earn a WELL D&O (directors and officers) designation that affirms and celebrates progress toward WELL certification ● a new approach to performance verification allowing projects to contract local providers ● a commitment to equity through marketand sector-specific pricing, a focus on localisation and the introduction of a dynamic scorecard, and

● a comprehensive and significant

adjustment to pricing, including a new subscription option. IWBI chief executive officer and chairman Rick Fedrizzi says, “The IWBI team has worked tirelessly to aggregate the expert contributions of our worldwide community of users, researchers and thought leaders, whose hands-on engagement with WELL v2 is evident throughout. “The result is a rating system that’s simpler, clearer, focused on the aspects that have the greatest impact and designed for improved return across every metric. “I’m especially excited about the significant cost efficiencies that have been built in, which will help spur uptake and increase accessibility to WELL for more market sectors,” Fedrizzi says. The Australian property industry has a global reputation for delivering best practice in green buildings and communities, and is embracing the IWBI and its WELL v2. Australia’s total of 59 projects make it the third highest country (in number of projects and square footage), behind the US and China. Fedrizzi says, “We’re looking forward to the market’s feedback as we move through this pilot phase. “With these changes, WELL v2 sharpens our ability to drive far-reaching change to buildings and communities in ways that help people thrive.” Users can now register for WELL v2. For more information visit v2.wellcertified.com. ●

JUNE | JULY 2018 FM

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16 | LEAD FEATURE – CYBER SECURITY

THE WEAKEST LINK The ubiquity of IoT devices in the built environment means facility managers must be fully prepared for cyber risk, as MICHELLE DUNNER reports.

S retail giant Target found out the hard way that, in protecting yourself from cyber risks, you’re only as strong as your weakest link. In 2013 the company paid out US$18.5 million after a massive data breach affected 41 million customers. But how did the hackers get in? According to US security investigative reporter Brian Krebs, it was through an IoT-enabled air-conditioning system installed by a contractor. While most facility managers are undoubtedly focused on ensuring the reliability and integrity of operational assets in any cyber security protocols, there’s no doubt a holistic approach is required. Craig Wishart, chief information officer at KPMG, says the connected world has to change the way we view our risk profile. “IT systems have developed mature frameworks and technologies to address cyber threats,” he says. “Interconnected smart buildings must address and respond to the complexity and convergence of applied technology.” Wishart says this is true of both physical and virtual smart building ‘architectures’. “Active and passive monitoring, patch management and event alarms must be considered across critical building systems.” Jim Cook of Malwarebytes, a global cyber security and antimalware software provider, agrees the complexity of the environment is a challenge for facility managers. “There is a lot of effort going into understanding, from a big data point of view, what the threats are, to build better protections,” he says. So, what should FMs running building management information systems or using IoT technologies know, at a base level, about cyber security? Cook says facility managers need fi rst and foremost to be aware that the technology in their buildings is of interest to cyber attackers. “I can think of several key reasons,” he says. “The first is to directly disrupt the built environment – hackers are looking to get into industrial control systems as a jump-off point leading to other attacks within the network. That’s what happened at Target and the way hackers got in there was the air-conditioning system. It’s something that will become a larger concern for building managers because all systems will

FM JUNE | JULY 2018

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come under much more scrutiny and there could be issues if the systems provided by contractors can’t be demonstrated to be secure.” Cook cites the Mirai malware, which infected over 600,000 IoT devices to virtually render the internet inaccessible across the east coast of the US in October 2016, as evidence of the potential inherent vulnerability. “This was a distributed denial of service attack and it was able to spread through small IoT devices – very much a wake-up call for the security approach, given many such devices are built from the ground up without security in mind.” “Another growing issue this year is cryptocurrency. While there are still massive threats from ransomware, cryptocurrency mining is a much ‘safer’ way for cyber criminals to extract value out of a compromised device.” A Malwarebytes report in 2017 claimed the company had blocked an average of eight million “drive-by mining attempts” around the world each day. Cyber criminals are infecting websites with crypto-mining code and gaining access to system resources without the victims even being aware. “An organisation could have 100,000 small devices running in a network and everyone is getting on with what needs to be done but, in the background, these computers could be mining crypto-currency for criminals,” Cook says. While ransomware attacks garner a lot of media attention, criminals are no longer making signiﬁcant money out of these, Cook believes. “I’d say ransomware generated perhaps $70,000 last year. Mining cryptocurrency is what we’re seeing much more of – because it doesn’t directly aﬀect users in the network, there is less focus on it as a risk from companies.”

AN IRON-CLAD SOLUTION? Even with the most tightly controlled and sophisticated security systems in the world, nothing is foolproof. In April this year, a British teenager was jailed for two years after hacking into the phones and systems of senior US CIA (Central Intelligence Agency) and Homeland Security oﬃcials. The BBC reported at the time that the hacker was even able to send the then secretary of Homeland Security a message through his smart TV saying: “I own you.”

www.fmmagazine.com.au

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JUNE | JULY 2018 FM

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18 | LEAD FEATURE – CYBER SECURITY

Cook says companies need to know no security protocol is 100 percent eﬀective. “What’s critical is the overarching visibility of the system and the speed of dealing with issues. Organisations need to know how and where and what the issues are and how to remediate them.”

THE PAIN POINTS FOR FMS Facility and building managers have a huge diversity of networks and technologies. “It’s a non-standard environment,” Cook says. “We’re not talking all Windows-based or all Mac. Hardware comes from a variety of companies and the microchips within may also be from diﬀerent suppliers. “That’s the main pain point – how do you achieve a security solution that covers everything? There was a real issue last year where Intel had to issue a patch for many of its chips. The issue for facility managers is knowing which devices feature that chip.

“Can they go around to each individual video camera or lift and be able to determine which chip powers it and does it need to be patched? “The answer for FMs is to segment their networks into manageable chunks. Put IT-based video cameras on a diﬀerent network from the air-conditioning, entry points or lifts, just to name a few examples. At each of those segregation points there should be some kind of security device that has the ability to detect issues. You can then narrow down the types of traﬃc across those networks. “Essentially, the tighter you can write the set of rules in terms of how things operate, the more likely you’ll pick up problems.”

THE HUMAN FACTOR Global insurance broking and advisory ﬁrm Willis Towers Watson last year analysed reported claims over a ﬁve-

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year period and found the human element remains an overwhelming cause of cyber risk issues – with 58 percent of claims directly attributable to employee negligence or malfeasance. KPMG’s Wishart says issues arise from poor situational awareness, compounded by complacency, insuﬃcient training and compliance to training, poor risk assessment and deviation from process. “Hackers exploit weaknesses in systems – people, process and technology,” he says. “Weaknesses in systems expose organisations to threats – from data breaches to system vulnerabilities, impacts on brand and value, insurance costs and, potentially, to human life. “Consider the risk of building having its elevators or escalators hacked. It’s critical for building management to have business continuity plans related to cyber threats and

Security megatrends The US-based Security Industry Association’s security megatrends report released last year indicated that there is strong evidence of fighting back against cyber criminal activity. Here are some of the megatrends it identified that have particular value for facility managers.

Booming IoT growth According to Gartner, businesses are predicted to represent more than half of overall IoT spending in 2017 (57 percent). Going into 2018, cross-industry devices, like those used in smart buildings (i.e. LED lighting and physical security systems) will drive this spending trend. The IoT is creating both challenges and capabilities for the physical security and risk management sectors. When implemented and properly secured, the IoT will provide predictive analytics, the ability to deliver a more personalised experience to users, and complete situational awareness from top to bottom.

Cyber meets physical security As the cyber and physical security sectors continue to merge, manufacturers are dealing with increasingly hostile and complex environments. To take security to the next level, manufacturers and systems integrators need to offer more advanced cyber safeguards to protect network-connected devices. Security integrators are moving in the right direction and are beginning to offer cybersecurity as a service as they continue to grow their businesses from hardware-centric to solution-oriented models. And customers rightfully expect service providers to be their trusted advisers; however, integrators will only be able to deliver if they continue to evolve towards total convergence.

Evolution of risk management Traditionally, the organisational process in security has been a siloed, single-lane approach. However, the most successful management models include all corporate stakeholders and possible sources of information to circumvent loss and reduce the potential for insider risk threats. We’re heading in the right direction as risk management and planning has broadened to be more holistic, and collaboration between all stakeholders – beyond just within technology/security roles – is becoming increasingly prominent. This needs to happen even more, however, to become the norm, not an exception. As we look to innovative technologies, such as drones, which bring about new risks and considerations, this coordinated approach becomes even more imperative.

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20 | LEAD FEATURE – CYBER SECURITY

“The answer for FMs is to segment their networks into manageable chunks. Put IPbased video cameras on a different network from the airconditioning, entry points or lifts, just to name a few examples.” – Jim Cook, Malwarebytes operationalise effective monitoring across all interconnected building systems – in addition to embedding appropriate people policies. “Preventing and mitigating risk starts with a business level strategy and measurable action plans.” Cook agrees that people are often the weakest link. “We’ve seen plenty of examples of companies disclosing things that they shouldn’t. Around half of them are people being silly and mistakenly emailing contact details out. It’s negligence rather than malicious – people who don’t think before they do something. “The important thing from an IT-perspective is that the IT environment is there to support people – not the other way around. The security policy needs to be a combination of technology and education – providing the information and context for humans on why they shouldn’t click on a particular link, for example.” “Facility managers should work with their IT people to ensure there is a threat and vulnerability management program in place, and to ask the right questions about the efficacy of that solution. “How mature is it? Is it being monitored in real-time? Are there scheduled scans? Is there a rapid detection vulnerability model? And, just as importantly, what happens when something is detected? Malwarebytes has a technology that immediately cleans affected areas, but whether it’s a consultant-based or technology-based approach, facility managers need to know how to deal with the vulnerabilities inside their systems.” Donald Macdonald from FM consultancy Macdonald Lucas says that given technology innovation is a relatively recent phenomenon in the built environment, IT and security management is not a core business for many FM service providers. “There is data that the FM provider becomes privy to, but that’s not necessarily on the client’s radar from a security point of view,” he says. “And it’s something everyone needs to get their head around. “An issue for some providers is that, when their contracts were scoped, many of these situations perhaps were never

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heard of. It’s important to then ensure the right checks and balances are put in place, but the FM provider themself may lack that direct expertise and require a third-party provider.” Macdonald says there have been major issues in the US around data integrity. “I know it has become more cost-effective to host data offshore because US legislation is so onerous. Perhaps what we need to look at is making data more secure, so that it doesn’t need to be shipped around globally. “But we need to address the challenges of this connected world. I have to say you don’t know what you don’t know and you can’t address risks you’re not aware of. We should all be aware, though, that the more interconnected assets you have, you introduce all sorts of pathways into the organisation that may be abused.” So, has there been enough examination of the potential threats? Jim Cook says a lot of this is occurring because of environmental influences. “Regulatory standards are becoming global and will affect the built environment,” he says. “The threat landscape and visibility at board level is quite significant. It’s a top-down imperative that anyone who manages the organisation’s facilities must be responsible for the security of the operation. We field a lot of questions in Australia about what can be done better in that regard. “And there have been a lot of reported cases of cyber incidents in the US impacting industry control systems, including business and access systems. These can lead to fi nancial losses as well as safety risks. The reputational damage also could be severe. “Overall, the Australian industry is taking cyber threats very seriously. While smaller businesses perhaps have not been so prepared and their leaders are focused on just running their business, the new data breach legislation has changed that. If your turnover is $3 million or more, you could face potential criminal charges in the event of a breach. “For businesses of all sizes, it’s about getting the right support. More businesses are outsourcing what is non-core and there are a lot of companies that will manage their IT and their IT security. We all can’t be experts in everything. “And it’s not just the facilities a company owns that may be at risk. Companies need to look at the contractors providing services to them. You may have confidence in your own security measures, but what about the people you have contracts with?”

WHAT ABOUT OLDER BUILDINGS? Are older buildings with less recent technology more at risk? Cook says it depends on how old the technology might be. “If I think back to industrial environments where systems are not run on an IP network, it’s still not impossible for cyber attacks to occur. “If you have a completely segregated network, the risk is lowered by many buildings with a combination of parallel systems that do have interconnection points and these systems can be easily forgotten.” ●

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22 | CONTENT PARTNER: HUMANSCALE

Content partner: Humanscale The golden age of docking Working in multiple environments, using whatever desk is available and still having an uncluttered workspace that means you can be productive and work effectively at the drop of a hat? The stuff of dreams? Not at all, writes STEVE BENDER.

id you ever see Billy Wilder’s

more streamlined, what it hasn’t really spent

1960 bittersweet masterpiece,

much time, and certainly not much innovation,

The Apartment? (If you haven’t,

on is the user experience.

do yourself a favour and download it. It’s on iTunes.)

When we talk about user experience, this means elements like the monitor – how can

In the ﬁ lm, Jack Lemmon as CC Baxter plays

that be used more eﬀectively than simply

a wage slave accelerating his path up the

taking up all the space in front of the user?

corporate ladder by lending his ﬂat to various

What about the keyboard, or how the user sits?

colleagues for their extramarital assignations.

How cluttered is the desk… with wires and

But before he gets the key to the executive

other piece of equipment? We may not need a

washroom, we discover him in the middle of

Rolodex anymore, but most people will have

a massive regimented oﬃce surrounded by

smartphones, tablets, hard drives etc, which all

hundreds of like-minded drones, processing

need to be used or charged at any given moment.

ﬁ les from his in tray. Each worker sits at an identical desk,

Decluttering their spaces and making people more comfortable in their working environment

with identical equipment (typewriter, adding

is actually a bottom line issue. It leads to people

machine, Rolodex) on it, performing identical

being healthier and performing better, which in

repetitive tasks.

turn leads to greater eﬃciency and productivity.

Steve Bender is global managing director of technology and monitor arms Humanscale.

Wilder is, of course, exaggerating to make a point. On the whole, though, that is what oﬃces

Workspace evolution

used to be like.

Today, there are three major expenses for a

Fast-forward to today and the nature of desk

company – its people, their technology and

jobs has altered dramatically. Are you in an

their real estate. But since the days of CC

oﬃce right now? Look around you. Do any two

Baxter and his ilk there have been a number of

desks look the same? It’s unlikely. There have

signiﬁcant changes in the oﬃce space. Perhaps

been all sorts of changes over the last 50 years,

the biggest of these is the advent of hot desking

many of them spurred by the extraordinary

– also known as hotelling or free addressing.

advances in computing. To begin with, single

What all these terms mean in simple terms is

computers have replaced our typewriters,

desk sharing and it stems from the idea, backed

adding machines and Rolodexes (as well as

up by copious research, that at any given time

being capable of carrying out hundreds of other

nowhere near 100 percent of staﬀ are actually

functions). But while the computer industry has

in the oﬃce. It can be anywhere from 70 percent

done a terriﬁc job of making things faster and

down to 50 percent of desks actually being

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Decluttering their spaces and making people more comfortable in their working environment is actually a bottom line issue.

used, which naturally has a considerable impact

So any given office will have a range of

on that third cost: oﬃce real estate.

systems and manufacturers, but that also

Accordingly, many of the world’s companies

able to accommodate any sort of laptop that

perhaps two-thirds of their workforces in the

is brought in. The system used to fall down

oﬃce and the rest working remotely, travelling

when so many laptops relied on click-in port

or in meetings elsewhere.

replicators. No longer. With a USB docking

But what impact does that have on the

station, a keyboard, mouse, monitor (or two),

ability to do work quickly and eﬃciently? If

Ethernet and power cable can all be attached,

you’re in a meeting in one spot and need to

then a laptop can be plugged into the docking

urgently plug in and access a ﬁ le or pull up

station and the user has access to everything

a spreadsheet, do you ﬁnd yourself wasting

they need.

valuable time as you cast around for a spot

lot of cabling strewn across a desk. And when

necessary accoutrements to attach it to a

the whole intention is to declutter to improve

monitor and keyboard etc?

productivity, 10 metres of cables scattered

What you need is to be able to hop to

over a desk is not helping anyone. It takes up

the nearest empty desk, plug in and play, so

space, looks unsightly and is not conducive to

to speak. Thankfully, there are now tools

productivity. Enter the split dock design, as we’ve

the world to do. And the most useful ones are

created with as MConnect 2, our integrated

device agnostic.

IT hub docking station, which has separated

For the second major change in the oﬃce

the dock into two parts. The top is integrated

space is the advent of BYOD (bring your own

into a monitor as a hub, so the user is covered

device). No longer do you see companies where

for audio, smartphone charging, ﬂash drives

everyone is devoted to Dell, adores Asus or is all

etc, while the main body is integrated into

Apple, all the time.

the bottom of the underarm monitor clamp –

Studies have also discovered that in companies where people are encouraged to buy or use their own equipment and preferred

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But with up to six cables in use, that’s still a

to place your laptop and then ﬁddle with the

available that make this the easiest thing in

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means that the empty hot desks must be

now utilise some form of hot desking, with

meaning all of those unsightly cords are out of sight and out of mind. All cables are eliminated from the desktop

systems, the ensuing greater familiarity and

and all that is left is an uncluttered, user

comfort levels means they are more eﬀective in

friendly, easily accessible working environment.

their job.

CC Baxter would love it. ●

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24 | CONTENT PARTNER: BILLI

Content partner: Billi Dollars and no sense The out of control behemoth that is the bottled water industry costs too much. It’s costing the environment and it’s costing our hip pockets. Surely there’s a sensible alternative, writes ADRIAN CUGNETTO.

very month, once a month, a

ﬁ nancial dollars and cents cost. And this is

woman I know spends an hour on

where the real head scratching begins.

a Sunday picking up rubbish from

We all understand that there are people

a beach outside of Melbourne.

out there, bizarre as it may seem, who don’t

Civic duty and all that…

really care about the environment. They value

The most recent clean-up took place during a

convenience and ‘the here and now’ so greatly,

wild and woolly wintry morning and there were

that the idea their everyday practices are

just a few intrepid volunteers out there with

causing such catastrophic damage to the world

their collecting bags. Even so, they picked up

they live in doesn’t really register.

32 kilograms of rubbish including 84 recyclable bottles and cans. A good proportion of those bottles and cans were old water bottles. It’s always that way. One hour, one beach, one day a month. Let’s

Or, if it does, they’re able to compartmentalise, justify or simply shrug it oﬀ. But what is hard to understand is that these are the same people who also seem to not care about money and the extraordinary

extrapolate that and think of the thousands of

proﬂ igacy associated with, for example,

beaches, hundreds of thousands of hours and

buying bottled water.

millions, nay billions, of empty bottles. In 2017

Let’s look at it this way: in 2015 Australians

Forbes reported that globally humans are now

bought 726 million litres of water and the

buying a million plastic bottles every minute. A

only way is up. According to research from

million. Every minute…

Canadean, sales are expected to rise to 867

Let that sink in for a moment. Then consider this: 91 percent of the plastic used in those bottles is not recycled. Clean Up Australia reports that plastic

million litres by 2020. At a conservative estimate, the average cost of the most popular bottled water in the country is $2.75 a litre. Actually prices

bottles are among the 10 most common rubbish

range from around $1.35 for the cheapest

items that get collected on the annual Clean Up

supermarket brands right up to the aptly

Australia Day.

named Cape Grim, which retails for $21.33 for

The devastation that this is causing to

750 millilitres (clearly that’s the one with

the planet is very well-documented and only

added gold leaf!). To put this further into

getting worse. But it’s actually not the prime

perspective, milk and petrol both sit below

focus of this article. For there is physical and

$1.50 a litre. Yes, we pay more for water than

environmental cost and then there is simple

we do for milk and fuel.

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Adrian Cugnetto is the marketing manager for Billi Pty Ltd.

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Filtration systems come with all the convenience and quality assurance of bottled water, but with none of the wasted packaging and environmental hazards. And for a fraction of the cost.

This means we’re looking at a combined total

have been proven to be nonsense. A May

of around $2 billion spent by Australians on

2016 Sydney Morning Herald report noted,

bottled water in 2015. Of course, there are

“Many taste tests have shown most consumers

all sorts of hidden costs in this too. Costs

can’t taste the diﬀerence between bottled

associated with the pumping out, packaging,

and tap.” But perception is one of the

transportation and chilling of the water before

hardest beasts to battle. Its very intangibility

it gets to the end user.

ensures this. If someone believes that bottled

Coolaustralia.org has reported that manufacturing and transporting this many

them to ditch it and simply turn on a tap is

plastic bottles requires more than 460,000

an uphill slog.

barrels of oil. The big question is why? Why has a great

and quality assurance of bottled water, but

buying water in bottles with such gusto?

with none of the wasted packaging and

Naturally, there is a case to be made that places

environmental hazards. And for a fraction of

without clean drinking water in the more

the cost. Plus, there are other benefits. We all

underprivileged and developing parts of the

know by now that sitting at a desk without

globe need to use it, as they rely on bottled

moving for hours every day is playing havoc

water as a genuine lifeline.

with our physical well-being. A short walk to a workplace kitchenette and its installed

where bottled water was introduced in the

filtration system is good for our bodies, and is

1980s and was derided as a joke – who would

a necessary and good use of time.

be so daft as to pay good money for something they can get for free, we all asked? That question has been answered (sadly),

On the other hand, it also saves time to install a chilled and boiling water system, because it cuts out those wasted minutes of

but the why still hasn’t. Is it just clever

hanging around waiting for the kettle to boil.

marketing? Probably. Or are there genuine

It also eradicates that sudden surge of power

reasons for Australians preferring to drink

usage associated with electric kettles, and

on average 30 litres of bottled water a year

ensures a steady and reliable cheap source of

(according to research from Roy Morgan)?

good clean, chilled or boiling water, when you

The most common response seems to be taste or ideas of quality. Such ideas

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There is an alternative though. Filtration systems come with all the convenience

proportion of the developed world taken to

But in the US? In Australia? In Australia,

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water has an inherent quality, convincing

want it. Every day, every week, every month. It just makes cents. ●

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26 | CONTENT PARTNER: ASSA ABLOY

Content partner: ASSA ABLOY Badda bing, badda BIM If your specifications of doors and door hardware are reliant on disparate and possibly inaccurate spreadsheets, text documents and pdfs stuffed in a filing cabinet somewhere, it could be time to partner with a provider utilising more up-to-date and efficient technology, writes Brian Cornwell.

he idea of a building information model (BIM) first appeared in the 1980s, but the actual term as a noun and indeed a verb with the acronym BIM (building information modelling) didn’t really take off until the early 2000s, spurred by the advancements in three-dimensional technology and computer processing. Now, however, it has become ubiquitous. So ubiquitous that those in the property and built environment spaces are expected to know exactly what it means. But do you? Or is it just some nebulous phrase that you assume has something to do with plans and blueprints and how a building operates? It is all of those things, but for a facility manager the most pertinent explanation is

BIM allows users to digitise and visualise a building prior to it even being built. FM JUNE | JULY 2018

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this: BIM allows users to digitise and visualise a building prior to it even being built, to understand the layout and how everything within that building is linked. And there’s more… As the ever reliable Wikipedia explains it: “Traditional building design was largely reliant upon twodimensional technical drawings (plans, elevations, sections etc). Building information modelling extends this beyond three dimensions, augmenting the three primary spatial dimensions (width, height and depth) with time as the fourth dimension and cost as the fifth. BIM therefore covers more than just geometry. It also covers spatial relationships, light analysis, geographic information, and quantities and properties of building components (for example, manufacturers’ details).” But BIM itself is not actually software. It is the files that contain digital representations of the physical and functional characteristics of a building. Structural details, architectural trades and MEP (mechanical, electrical and plumbing) can all be represented within it. Once the building is up and running, the information contained within the threedimensional BIM or project model allows the facility manager to better access information,

Brian Cornwell is BIM technologies manager at ASSA ABLOY Australia Pty Ltd.

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to do so more quickly and more efficiently, compared to the two-dimensional models of old. More importantly, this information can be continually updated as necessary. Unlike previously when a facilities manager might have filing cabinets overflowing with plans and specifications from the initial project construction, using BIM there is just one single source of truth where all the necessary information is stored in one project model. Accessing this model means that every last item of built information is at their fingertips. What this also means is that when it comes to specifying fixtures and fittings such as doors and other access control features, the vital statistics are available at a keystroke. Enterprising providers are able to take advantage of this by writing their own compatible software, so that independently created programs for door hardware specifications, for example, can work within the building’s design program. This is what ASSA ABLOY has done with an internal program entitled Openings Studio, which can receive a project directly from an architect, using design software like Revit (and shortly ArchiCAD) via a plugin, take that information directly from the project and then write appropriate schedules more

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quickly and efficiently – without the time intensive middle step of deciphering PDFs and Excel door schedules. This traditional two-dimensional document-based workflow is the system that has been used for decades in the door and door hardware industry. But it has long been riddled with inefficiencies. Specifications, schedules and submittals reliant on disconnected or abstract text documents, technical drawings and spreadsheets are inherently riddled with errors and inaccuracies. The technology behind Openings Studio has been around for nearly a decade, having been developed in 2010 and it works very well when it comes to integrating with the software used by architects. Where there is even greater potential, however, is with facilities managers or, depending on the substance of the various relationships, developers or property managers. Architects already have preconceived notions of the door openings in the buildings they are designing, but facilities managers aren’t working to the same restrictions. If, for example, a large facility is planning to grow – perhaps it’s a major university that is adding new building after new building – and has a preferred hardware supplier in mind, the two parties can sit down and

The net result is saved time, saved headaches and a reduction of errors. work out a future permanent strategy. They can design, if you like, a digitised door family integrated into the three-dimensional BIM. Again a step is then removed, as the facility manager can go to their architect and explain that this whole element of the building is already taken care of and no longer even needs to be considered. If it’s a classroom door, a storage door, or perhaps a dormitory or unit entry door, the facility manager will be able to indicate to the architect where the openings should be and what they should look like. The net result is saved time, saved headaches and a reduction of errors, and an opportunity for a facilities manager to say to their architect, ‘We’ve already defined this. Let’s move onto something else.’ ●

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5/06/18 4:49 PM

28 | PROFILE

TALKING THE TALK As head of workplace at KPMG, PETER DOLLIN has learned that to influence the C-suite, you need to be speaking their language.

pearheading the rollout of new major buildings in Sydney and Melbourne for global professional services giant KPMG, Peter Dollin is more than aware that people come into the workplace and facilities field from all manner of backgrounds. His just happened to be plastering. “My background is in construction. I had to leave school in year 10 and the next door neighbour had a plastering business,” he recalls. “I went and knocked on his door and asked for a job. I did solid plastering, cement rendering and ornate plasterwork in old terrace houses. It gave me a passion for buildings, especially when you start with nothing, watch it come to life and see the affi nity people have with the built environment.” Dollin had hoped to study economics, but he fell in love with his trade. “I became the leading apprentice in New South Wales in each year of my trade course because I was just so passionate about it. I even got my builder’s licence because I loved construction.” But as time went by, Dollin started to think about the process and, with it, a new career direction. “I’d see a lot of mistakes; one day I’d cement render a wall and the next day an electrician would come along to gouge holes out of it. It occurred to me there was something very wrong with this approach, especially at the management level. “After I fi nished my trade I did a Clerk of Works and Building Foreman Certificate, so that I could look at the management of buildings. Then, out of the blue, I got an offer from Westpac.” Dollin says he knew nothing of large corporations or property portfolios and signed up to do a few fitout projects, which he assumed would have a projected run time of three months or so. “But I just kept moving on to the next thing –

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OTHER PASSIONS While passionate about his work, Dollin remains heavily involved with his family – wife Jenny, three adult children and two grandsons. “We love to travel, when the kids were little, we took them around Australia because we wanted them to see our own backyard first. My niece worked with Imparja, the Indigenous Television network in Alice Springs, and we wanted to expose them to that and for them to see just how diverse and wonderful this country is. “Now, Jenny and I also travel overseas. As someone who loves buildings – and plastering –a trip to Austria was incredible. So much beauty.”

three months became six and there was still so much work to do. I ended up staying 15 years. “It opened my eyes to how much eﬀort goes into creating, maintaining, curating and evolving a workplace. It was the 1980s and a boom time – we couldn’t get through the ﬁtouts fast enough for the growth.” When the stock market crashed in 1987, followed by a deep property-led recession in the early 90s, Dollin says commercial real estate was hit very hard. “I had to go back to places we’d built or leased and close them down. It was a very tough and depressing thing to work through. It brought it home how much companies needed facility management on both the ups and downs – the growth phase and the correction phase as well.” Suddenly Dollin found himself to be a project manager without any projects. “But we had a wealth of properties in the portfolio and someone had to manage them. That was my entry into FM rather than necessarily projects.

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www.fmmagazine.com.au Photography: Matt Dollin

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6/06/18 12:14 PM

30 | PROFILE

“And my grass roots construction knowledge came in very handy. I had a practical understanding of how things fit together and who you need to consult with and when. I found the stakeholder management very interesting. “At this point, Westpac had 600 people in property across the country. We had to undergo a painful exercise of shedding a lot of staff to create a small national team and much smaller state teams. It wasn’t just about my skills or training or background, it came down to how we could get on with people and having emotional intelligence and empathy was really key to that process.” Dollin was faced with an uncertain future. “Departments were closing, friends were leaving. I thought about what I needed to do to get myself through that period and that was to focus on being the best at what I could do and build strong relationships.” From the 90s onwards, FM became Dollin’s passion, but he wasn’t content to drive value just within his remit in New South Wales. “I was Sydney-based, so that’s all I looked after. I quickly realised there was an opportunity in taking a national perspective, but also saw the complexity. I saw a model where Western Australia and Queensland were similar operationally because of the geographic spread and comparable number of branches, but they had 10 people in Queensland and 20 in WA doing pretty much the same output. I couldn’t understand why that was the case and no one else could either, so I needed to look for the right model.” Dollin says he was sitting on massive amounts of data but had no benchmarks. “To be able to determine the best way forward and to make a case for it to the leadership team, we had to make sense of the data and that took a while. After a difficult search for external cues, our CFO (chief financial officer) suggested that, surely with our size of portfolio, we had all the benchmarking data that we needed – and he was right. It was a long process, taking some three to five years to get it humming on an organisational, operational and external procurement level. It’s so important for fi rms to have switched-on FM specialists to be able to see what’s really happening and provide value to senior management and the C-suite. It’s not just about fi xing blocked toilets. That dawned on me when I joined JP Morgan Chase in 2003.” As a consultant head of facilities management, Dollin was exposed to JP Morgan’s FM partner, CoreNet Global. “I remember lots of discussions with peers and other people saying the FM team was very important, but could be more effective and have a better impact on the bottom line. The issue for us working in the team was: how do we get the messages across to the decision-makers to effect those changes? I decided to do a Master of Corporate Real Estate course as the next phase in my learning and it exposed me to the differences between how Australia does things compared to across the world. “One of the seminars I did was the impact of corporate real estate transactions on the balance sheet. It sat me back and I had to ask myself what that meant. My whole life was about

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“It’s so important for firms to have switched-on FM specialists to be able to see what’s really happening and provide value to senior management and the C-suite.”

understanding square metres, head count, insourcing and outsourcing, but I had no idea up until then of how the C-suite thinks and how to talk their language. “We were asked: ‘If you bumped into your CFO in the lift, what would you ask him about the company?’ We scratched our heads and suggested a chat about the FM portfolio. “The response was blunt. None of us spoke the CFO’s language. The way to get his attention was to ask his view on whether the company was cash flow driven or capital-driven. From that point I really understood what our impact could be – not so much in terms of the tangible things we do, but how it influences the fi nancial context. It made me look back on some of the decisions we made at Westpac – the timing, the tax impacts. Timing can make a meaningful difference on the value of a property asset transaction to the business holistically and, to some extent, with almost ambivalence regarding the value of the transaction itself. This can be a difficult concept for FM practitioners to understand, let alone accept where top dollar is considered the only benchmark.” Learning the language of the C-suite is something Dollin now tries to teach his FM and wider team members. “If you have a specialised area and speak that language all the time, you get categorised to that. If you become ‘bilingual’ and make sense to the senior team, you’re seen as an important asset – they immediately realise that you get what they need.” But at JP Morgan Dollin was still regarded as a contractor and there were certain commercially-sensitive conversations that understandably he wasn’t privy to. “If I’d been on staff there from the outset I may not have made the leap to UBS or KPMG. JP Morgan did make an offer for me to join them on staff, but I had already been approached by the chief operating officer at UBS who was looking for someone to manage its portfolio, so I thought this was my opportunity to be ‘on the inside’ to make more of an impact. “Again, when I sat down with the COO (chief operating officer) for a coffee, I was fluent in his language. After a couple of hours he told me he wanted me on board. It was a great experience – I was exposed to all the internal discussions on strategy and sat on various global forums around their FM information systems, future of workplace program and global ecology program during my nine enjoyable years there.

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“Then I got another tap on the shoulder, from KPMG. I didn’t want to leave UBS – it was like a family. But again, when I got in front of the KPMG people I just got more and more interested in their national workplace of the future program. What intrigued me about KPMG was their courageous decision to move from traditional partner offices to agile workplaces, which was truly transformational. “But I kept saying ‘no’ and they kept asking me back. Not so much that I didn’t want to join KPMG, but leaving UBS was very difficult thing to contemplate given the friendships I had and loyalty I felt to the company. They asked me to speak to their CEO, Gary Wingrove and that sealed the deal. He told me they wanted to change the culture of the fi rm and use workplace as the catalyst. How many times do you hear that from a CEO?” Dollin recognised that KPMG was a large organisation where not everyone thought the same way. “I’ve been involved in programs where change has been rolled out and hasn’t really stuck because the C-suite’s heart wasn’t in it, but Gary was the sponsor of this project and it helped that the national executive and CEO were right behind the principles of change.” Time-frames were very tight. “The leases had already been executed and construction had started at both

Barangaroo and Collins Square (KPMG’s Sydney and Melbourne flagship offices). But KPMG had already created a pilot floor in their existing buildings, set up like a model of agile working and was rotating groups through there 10 weeks at a time. It really gave people the tools to learn how to work in that environment.” Coming on board at the end of 2014, Dollin had to deliver Barangaroo in mid-2016 and Collins Square at the end of that year. His focus is now completing the rollout across Australia, having also done projects in Parramatta and Adelaide, while Brisbane, Perth and Canberra are still in train. “We learn what’s working and what isn’t and factoring that into new locations, even revisiting delivered workplaces to evolve them in subtle ways. The world’s changing so fast and change is a constant, so we have developed a workplace communities role, which is derived from our workplace change team so that we make sure we don’t lose the value from what we’ve done and we keep evolving. That’s particularly true from the FM perspective – looking at what we do and ensuring we have the right competencies, so that we can manage these fi rstclass workplaces – with the best mix of positions internally and partners externally in order to optimise the significant investment that KPMG has made.” ●

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24/05/18 AM 1/06/18 10:37 9:48 AM

32 | RISK MANAGEMENT

DON’T TORCH YOUR GROWTH Heightened demand for warehouses and the uptake of robotic solutions has facilities managers looking to improve efficiency without increasing fire risk. LYNDON BROAD reports.

ommercial property owners have plenty of reasons to be optimistic this year. Demand for warehousing is growing at an impressive clip, driving commercial property rental prices up to record levels. Land values across western Sydney have lifted by about 50 percent during the past 12 months. So, what’s driving this demand? General population growth is one factor. The rise of e-commerce, given further impetus by the recent arrival of e-commerce giant Amazon, is another. Nielsen research shows a 23.8 percent increase in online sales during 2017, with a further 403,000 Australian households adopting online shopping. Groceries accounted for a large part of this, with the number of families buying some or all of their household groceries online increasing by 22.9 percent. These trends are expected to accelerate following the arrival of Amazon, which is forecast to boost Australian online retail turnover by up to 14 percent per year, according to Citibank estimates. And it’s not just the number of warehouses that’s on the rise. The average size of these facilities is also expected to grow rapidly. This year, the average new industrial warehouse in Australia will come in at about 200,000 square metres. To put this in perspective, that’s big enough to store 10 Melbourne Cricket Grounds. Before 2011, only one of Amazon’s 10 distribution centres in Europe was larger than 90,000 square metres. All of this adds up. Australia’s warehousing and logistics industries will be worth $187 billion by 2021, according to a recent study from market research ﬁ rm Ken Research.

THE ROBOTIC WORKFORCE This drive for scale and eﬃciency in response to rising demand has led to rapid growth in automation. While workers in many industries wait nervously to see if their roles will be automated, it’s already happening in warehouses across Australia and around the world.

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Amazon is credited with popularising autonomous mobile robots (AMRs). It bought AMR maker, Kiva, in 2012, lapping up its production and renaming the company Amazon Robotics. These autonomous helpers on wheels can select and carry a box, or an entire shelving unit full of boxes, from the warehouse ﬂoor to a human ‘picker’ who moves it to the next stage of the process. According to a feature published on the Quartz digital technology news website, Amazon added 75,000 robots to its workforce in 2017. By replacing human labour, robots can reduce the ‘per pick’ cost of moving packages by almost 90 percent, to as little as 10 cents each time a robot travels to a pack station. The laws of scale make it highly likely this number will continue to fall. The other advantage of robots is that they have no preference about where they live. Unlike most people, they’ll happily get down to work in mega-warehouses situated further and further out from the major metro areas.

NEW RISK PROFILE With all of this evolution comes extra reason for concern, and not just because of its impact on employment levels. Although automation minimises the risk of human error, the scale and speed of what’s going on inside a modern warehouse has altered the risk profi le. Fire is the biggest risk when dramatically increasing the presence of electrically powered devices. They all have the potential to malfunction at any time. But it’s not just the robots. The push to store ever more packages and get them to their destinations sooner has also seen a trend towards boxes being piled higher and packed more densely into warehouses. Automated warehouses are also more likely to use fastburning open-top plastic containers rather than traditional closed-top cardboard or wood containers. These open-top containers have the added drawback of preventing water that’s being used to fight any fi res from cascading to lower portions of the warehouse.

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123RF’s Igor Zakharevich ©123RF.com

As ever, warehouse managers are faced with a need to balance their obligation to profitability and risk management in a reasonable way. As ever, warehouse managers are faced with a need to balance their obligation to profitability and risk management in a reasonable way. While acting responsibly to address the fi re risks that automated warehouse environments bring with them, they don’t want to limit their facility’s storage potential or increase costs with inappropriate fire-reduction strategies.

RETHINKING FIRE PROTECTION The suitability of current protection strategies, including traditional ceiling-mounted sprinkler systems, must be revisited in today’s automated warehouse environment. FM Global data shows it’s clearly worth the time and effort. The difference between an adequate sprinkler system and an inadequate one – either non-existent or with insufficient sprinkler coverage – is massive. We found over a 10-year period the cost difference is as much as fivefold, with average losses rising to US$4.56 million. FM Global has developed robotic warehouse fire protection guidelines. Based on five years of research and a multimillion-

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dollar investment, these guidelines are intended to help risk managers and warehouse managers minimise the fire risk associated with automatic storage and retrieval systems (ASRS). In designing the ‘Protection for Automatic Storage and Retrieval Systems (ASRS)’ data sheet, we’ve discovered that it’s possible to: ● optimise fi re protection through careful storage design choices ● reduce the cost of fi re protection systems including piping, pumps and water tanks ● support sustainability through the use of less water, and ● perhaps most importantly of all, base your fi re protection strategies in evidence, not guesswork. The guidelines cover provisions for sprinkler arrangement, independence of in-rack and ceiling sprinkler systems, container design and racking structure. They replace a 2007 version, which included stipulations that were starting to clash with modern storage trends. Not all of the suggestions are complex. Simple steps such as having reasonable gaps between boxes can make it much easier and less costly to protect a facility from massive fi re damage by reducing the ability for a fi re to spread horizontally. FM Global has invested heavily in the development of these guidelines because it’s the sort of issue where our clients expect us to take a leadership position. We’re committed to helping them protect their businesses as the industry continues to strive for greater efficiency. ● Lyndon Broad is country manager, FM Global Australia.

JUNE | JULY 2018 FM

28/05/18 11:44 AM

34 | MAINTENANCE

Time to come clean Your cleaning team is the frontline for keeping your facility functioning at its best, says ARIAN BAHRAMSARI.

he story goes, that President John F Kennedy had a conversation with a cleaner when he visited NASA at the height of the Apollo 11 campaign, asking exactly what he was doing. The cleaner’s answer was swift and succinct: “I’m helping put a man on the moon.” Every organisation needs to safeguard its employees and its reputation by having a clean and well-maintained facility. The cleaner at NASA knew his role and, chances are, things may not have gone as successfully had he not played his part. Cleaning practices in facility management are not just the sum of performing a few simple tasks, but a comprehensive approach that can have a direct impact on the performance of people using those facilities. So, how can facility managers be on top of cleaning and hygiene requirements? Cleaning in facility management is a wideranging area. It can be as straightforward as carpet and glass cleaning and waste disposal, through to potentially complex

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areas such as water and drain hygiene and asbestos abatement. Apart from making their daily check on cleaning practices in their building or venue, there are some essential points that should be taken into account by facility managers.

BASIC KNOWLEDGE OF VARIOUS CLEANING METHODS AND EQUIPMENT It may seem obvious, but there are still many facility managers who are not aware of the differences between burnishing, buffing and scrubbing methods in cleaning. Being knowledgeable about cleaning products, chemicals and machines can increase your efficiency.

PLAN FOR DIFFERENT CLEANING SCENARIOS Not all cleaning-related problems in your facility can be resolved using the same cleaning team. Let’s take mould issues as an example – you need to use a mould specialist. Sending your

regular cleaner to remove mould in an affected area could put their health at risk. All facility managers should have a range of contacts to call upon to rectify specific issues, whether for an emergency call-out or not, such as cleaning for sewage overflows or dealing with asbestos.

PROMOTE PUBLIC HYGIENE – PROVIDE CLEANING PRODUCTS IN COMMON AREAS Facility managers can do their part to bolster levels of public hygiene in their building via some basic practices. Some of these include ensuring tissues are available, offering hand sanitisers at concierge desks, or placing antibacterial wipes and mouthwash machines in common areas such as a building’s gym or end-of-trip facilities. These can all help prevent the spread of bacteria and viruses.

IMPROVE INDOOR AIR QUALITY Clean and fresh air has a vital role to play in everyone’s health. Facility managers can

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123RF’s Andriy Popov ©123RF.com

Many facility managers are not aware of different cleaning methods... being knowledgeable about cleaning products, chemicals and machines can increase your efficiency.

equip their HVAC/air handler systems with UV lights to eliminate disease transmission and sterilise the air.

electrical/communication cabinets, fire exit stairwells and restroom ceiling air vents are some instances of these areas.

IMPLEMENT COLOUR CODING ON CLEANING TOOLS

TRAIN CLEANING STAFF ADEQUATELY FOR BETTER SAFETY AND EFFICIENCY

Essentially, colour coding mops, cloths, buckets and any cleaning tool will reduce the risks of spreading diseases and germs. Here are some general principles: ● red – washroom and toilets ● blue – general use for offices, stairs and lobbies ● green – kitchen and food services, and ● yellow – clinical (infectious areas and contaminated fluids).

FORGOTTEN ANYTHING? Diligent facility managers will look for hidden or overlooked parts of the building. There’s a good chance such areas will be filthy. Any building has areas that have been overlooked or fallen off the cleaning schedule for some reason. Fire hose reel cupboards,

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Facility managers are required to make sure that cleaners know about their building specifications, bin area facilities and procedures for cleaning issues such as unblocking chutes. Cleaners need to be notified about electrical protocols – some office power plugs are designed for computer connection only and your cleaners should be briefed. You should also ensure that during any wet work, your cleaners place caution/wet signs at the entrance and exit of affected areas.

EDUCATE TENANTS/RESIDENTS IN MANAGING THEIR WASTE What goes in which bin? Facility managers have a major role to play in educating

occupants regarding what waste goes to yellow, blue, green or red bins. One of the common problems I often see is a lack of occupant awareness about which is the right bin for polystyrenes. HINT: it’s not the same bin as cardboard. Allocating a specific area for hard rubbish and e-waste is also a critical task.

BE PREPARED It’s important to leave basic cleaning equipment accessible for any emergencies such as a spill in a lift or flooding caused by a blocked drain – particularly during periods where facility managers are not on-site. In healthcare facilities, there is a compulsory requirement that the effectiveness of cleaning is measured. An audit process is a valuable tool for any building; facility managers should look to engage auditors to gauge their cleaning quality and controls. ● > Arian Bahramsari is a Melbourne-based facility manager.

JUNE | JULY 2018 FM

28/05/18 10:51 AM

36 | TECHNOLOGY

Connectivity – can your venue take the strain? The world’s first 5G network has launched, so what are the implications for Wi-Fi in large venues? MARK VERBLOOT reports.

systems and visitors. So why does the recent Winter Olympics give us reason to review these deployments? For most, a journey towards 5G starts with the convergence of Long-Term Evolution (LTE) over the licensed and unlicensed spectrum. The way this LTE-U technology takes control of a channel is controversial, however, and may degrade the performance of Wi-Fi equipment using the same channel. The two are not working smoothly together, leaving venue operators with a headache that could extend long into the future. Here are five essential technical considerations to help stadium and venue operators make an informed decision about whether to consider unlicensed spectrum technologies alongside Wi-Fi.

ARE YOUR ANTENNA SYSTEMS COMPATIBLE? Most stadiums and arenas have either separate antenna systems for each major mobile operator or a converged neutral-host distributed antenna system (DAS). Large venue operators interested in unlicensed spectrum technology should first check their venues’ compatibility with their existing DASs. To be compatible, a DAS must support an expansive LTE-U/LAA (licensed-assisted

IT’S ALL ABOUT THE SPECTRUM

he use of the world’s first 5G network at the 2018 Winter Olympics in South Korea generated excitement among those in the industry – and it’s easy to see why. As users, our expectations for instant, seamless connectivity on every device have never been higher. We want to Snapchat performers, post selfies at concerts, check in at football games and communicate with people in the outside world. For stadiums and other public venues, the opportunity to keep visitors engaged, offering instant replays, time and location-specific offers and always-on connectivity, has not gone unnoticed. Following the Olympics, venue operators must now consider their own need to keep up with connectivity demands. The development of VR, 4K video and the growth of IoT (Internet of Things) means an explosion in user numbers and data traffic. The lure of expanding network capacity and coverage is incredibly appealing, not only to mobile providers, but to any business owner wanting to keep on top of these growing technological demands. Many major venues around Australia already run public Wi-Fi to connect technology

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Most large venue Wi-Fi networks are already spectrum-constrained, meaning they are only just managing to carry their existing load. Large, crowded venues like stadiums and arenas, need 20 to 24 full-time-equivalent channels to make a 5 GHz system work (regardless of the type of technology). These Wi-Fi networks are carefully optimised to eliminate all unnecessary transmissions. Adding more unlicensed systems will reduce available capacity for Wi-Fi operations in this scenario. At present, there are no public technical measurements of deployed systems – so the actual impact is unknown. If four separate unlicensed networks are deployed, the negative impact on Wi-Fi connectivity will be even greater.

HOW MANY NETWORKS ARE REQUIRED? Visitors to a stadium each carry devices run by different operators. To offer gigabit cellular connectivity, and a consistent experience to all, you’ll need to permit all four to deploy an unlicensed network. As this technology is so new, it lacks a ‘neutral host’ methodology, so each operator will require its own separate physical network and spectrum. Without huge outlay, this can damage the customer experience.

123RF's Burmakin Andrey © 123RF.com

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access) small cell deployment where the primary cell (pCell) is the DAS and each pCell has dozens of secondary cells providing 5 GHz service.

COST, COST, COST The amount of equipment and the cost of a hybrid Wi-Fi/cellular situation are significant. For example, a 60,000-seat stadium, at typical under-seat densities, would require about 850 Wi-Fi access points. Stadium operators adopting

unlicensed LTE technology would need over 3000 additional small cells – each requiring sturdy waterproof housing, a 30-watt Power over Ethernet (PoE) connection, Category 6 cabling and conduit. These small cell deployments would make the same physical footprint as Wi-Fi, which is likely to already be installed. All of this needs to be considered, and we’re not even mentioning the fact that many of today’s devices have Wi-Fi-only connectivity, with billions more set to follow in the future.

As a robust, stable and mature technology, Wi-Fi’s strength and ability to handle exceptional data traffic loads at large venues is well-established. Yet, as research suggests mobile data traffic will grow by 47 percent annually through 2021, it’s no surprise that new solutions are cropping up. EVALUATE RISK It’s critical to consider the risk of adding multiple unlicensed mobile networks to your Wi-Fi environment. It took about seven years and three full generations of radio designs for Wi-Fi vendors to perfect high-capacity stadium systems, yet the providers of LTE-U/ LAA are only just getting started, let alone those working on 5G. As a robust, stable and mature technology, Wi-Fi’s strength and ability to handle exceptional data traffic loads at large venues is well-established. Yet as research suggests mobile data traffic will grow by 47 percent annually through 2021, it’s no surprise that new solutions – ultimately leading us to 5G – are cropping up. But the key takeaway is to think about both the pros and the cons of combining these two technologies before taking any action. Delaying combining Wi-Fi and unlicensed LTE networks, until the equipment can prove itself reliable outside of the Olympic bubble, is well worth considering. ● > Mark Verbloot is systems engineering director, Asia Pacific Japan for Aruba, a Hewlett Packard Enterprise company.

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JUNE | JULY 2018 FM

28/05/18 10:55 AM

38 | WORKPLACE CULTURE

More than the numbers Facilities managers need to change how they define and measure success to focus on outcomes. MARIE-CLAIRE ROSS explains.

or many years, leaders have bought into the false belief that business is all about numbers. Organisations and leaders spend a lot of time setting up systems to measure external outputs. They determine how the organisation is performing by measuring sales, return on investment (ROI), cash flow, share price and so on. While this data is important, it comprises by-products of past performance (or lag indicators) that have limited impact on future performance. Focusing on these details alone is a bit like a bikini. It hides what is most revealing about the organisation – what activities the people in the business are undertaking to support future growth. Numbers don’t run a business – people do. Numbers can’t make decisions and products or execute a vision. Numbers tell you what, but people tell you why. Measuring external outputs is very different to measuring internal productivity.

FACILITIES MANAGEMENT AND DATA The increasing prevalence of big data and the Internet of Things (IoT) is producing staggering amounts of facilities management information. While data scientists are often required to interpret the data, the real value is in how well organisations can translate those insights into tangible benefits. This is a wonderful opportunity for facilities managers to transition from being merely perceived as a support function to a value-added partner. But it requires a mindset shift from providing operational help to actually advising department leaders on how to create the right work environment

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to get jobs done more efficiently through improving interactions. It’s really about matching hard data to the softer and behavioural side of business.

FROM OUTPUTS TO OUTCOMES Facilities management is at the forefront of workplace change. Over the last 10 years, how people work has changed more rapidly than ever before. Collaborative work technology, the rise of hot desks and the shift away from paper have all changed how work gets done. Such changes have demanded shifts in how people interact and work together. Unfortunately, our everyday work behaviours haven’t necessarily caught up. Blame it on the Industrial Age. Back then, when you had a factory outputs were important to drive efficiencies. Monolithic teams toiled in a hierarchical structure that was heavily process driven and predictable. Decision-making was centralised and employees were poorly educated and not expected to think for themselves. But times have changed. Today, the world of work involves highly educated employees working in nimble teams to solve complex problems and make decisions. Results take longer to achieve. They require leaders who can trust employees to do the work based more on achieving outcomes than clocking in and out at a certain time each day. Of course, the main issue is that measuring external outputs is easy (and addictive). It’s about how many widgets produced. Every day, the team checks off their task list. Produce 150 widgets. Check. Ship 150 widgets. Check. Get a feel good rush. Check. Yet, the outcomes that the team is trying to achieve are harder, often frustrating and require more time. It’s not about how many widgets produced, but how well the team made them together. Examples of outcomes include improving customer usability or increasing collaboration between sales and manufacturing. Outcomes or inputs are lead indicators that highlight future performance. They take time to solve and rely on two types of trust

123RF’s Ed Sweetman © 123RF.com

– faith that the strategy will work (or can be successfully modified) or trust that the team is doing the work to get there in the end. Organisations that want to alter how people behave internally must turn their attention to outcomes. To truly predict how the organisation will perform in the future requires lead indicators that are just as vital as any hard numbers. Unfortunately, it’s not that easy because it requires a change in focus on what success looks like to drive the behavioural shift. This is where facilities management needs to step up. The future of facilities management is heading towards how to advise the C-suite on how to efficiently use space to create a better working experience that energises employees. As a facilities leader, you need to truly understand specific department needs and what work needs to get done and why. Your real value is to understand all the data that

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“The future of work requires trusting employees to do work whether they are based remotely or in the office.”

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is being collated to advise on how to best integrate a physical space to get jobs done more efficiently. It also means staying away from only focusing on outputs (such as costs saved per square metre) to also including outcomes (such as 12 percent increase in employee engagement) that leaders want to achieve and the best ways to measure them. This is difficult, but not insurmountable. There are companies making great strides in measuring these important outcomes. WeWork, a global network of workspaces, is constantly capturing data and evaluating member feedback to drive not only improvements to its physical product, but its client experience. One of its key measurements is looking at how collaboration is helping its clients undertake work more efficiently.

are employed to do. Share risk in a team, so that it’s not just your neck on the block. ● Being flexible in achieving goals. Goal attainment is no longer a linear process of getting from A to B with small iterations along the way. It’s realising that, to get to B, you may need to go down C, understand it’s a dead-end and make a pivot down both D and E to get the desired result. This is messy and sometimes frustrating. It requires acknowledging that, no matter how many unexpected obstacles get thrown, it’s time to pivot and create a new way of measuring progress. We can’t change our circumstances, but we can change how we think and respond to them.

MOVING AWAY FROM A BOTTOM LINE MENTALITY

In a low-trust environment, it’s a challenge for organisations to rely on daily exchanges with customers, consumers, investors and other stakeholders. But organisational growth demands that how people interact internally changes and grows. The right answer is the ideal balance of both leading and lagging indicators that provide information on how the business has performed in the past together with how it will perform in the future – aligned with growth plans to ensure the organisation is on track to keep reinventing, in order to delight the customer. It requires facilities leaders who understand the big picture and who can be the trusted adviser to department leaders to help them design and maintain the right collaborative environment for innovation to thrive. ●

A study by Zenger Folkman researched 400,000 360-degree surveys. They found that the most successful leaders possessed a powerful combination of competencies. Sixty-six percent of leaders in the top quartile possessed both a focus on results and interpersonal skills. Meanwhile, only 13 percent of leaders who focused on results alone and only nine percent who focused on interpersonal skills alone reached the 90 percent percentile. In other words, being focused on results and interpersonal competencies equalled top leadership performance. Leaders who can focus both on results and interpersonal skills need to not only be in the right work environment to allow these behaviours to flourish, but they also have to understand that it’s no longer enough to deliver results. The future of work requires trusting employees to do work whether they are based remotely or in the office. As a facilities leader, you have to walk the talk to show other departments how to improve their behaviours, by getting the best out of your own teams. This means: ● Avoiding micromanaging and controlling the situation. Be responsible and accountable for delivering, but also let go and allow the team to do the work they

MOVING TO LEADING INDICATORS

> Marie-Claire Ross is the chief corporate catalyst at Trustologie. She is a workplace sociologist, author and consultant focused on helping leaders put the right processes in place to empower employees to speak up about issues, challenge each other and share information. If you want to find out more about building trust, download the free insights paper ‘Building Trust – How High-Trust Companies Deliver Faster Results, Increase Profitability and Loyalty’ at http://bit.ly/buildingtrust2016.

JUNE | JULY 2018 FM

28/05/18 11:03 AM

40 | CONNECTIONS

Necessity, scarcity and purpose

Graham Constable.

Necessity is the mother of invention, but Marcus examines whether technology itself is creating necessities. GRAHAM CONSTABLE continues his thoughtprovoking series.

aoul listened to Marcus describing his examination of drivers of future progress in his industry. “You know Raoul, I’ve been thinking about templosion. How the so-called exponential nature of change continues to impact our world while everything – cost, time, effort – gets smaller.” Marcus heard Raoul chuckle on the other end of the phone. “What’s so funny?” “It’s a cool description, don’t you think? Our conversation clearly made an impact on you!” “It did and I’m wondering if, and how, necessity, even scarcity, may be driving it.” Raoul was quick to respond. “My friend, the adage of necessity being the mother of invention. Well, even this is becoming unfashionable these days.” “You think?” “I do. In the home, for example, we’ve seen technology, over time, make our lives easier with food blenders, dish washers etc. My grandparents were none the wiser – they didn’t have any of that stuff, save for a mechanical whisk!” “Necessity still drove that innovation.” “Did it? Think about it. Behaviours used to drive need and subsequent invention and development of new technologies, but nowadays technology is itself creating necessities and changing society. These things have been creating desires and wishes, then and now. Take music for example. The idea that music and information at large could be easily transported or transferred has

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enabled micro-systems – the iPod. People thought the Walkman was the bee’s knees and then along came digitisation of music and the iPod.” Marcus disagreed. “I guess, but your business is filling a need – in an extraordinary way.” “Sure, and it is also creating everincreasing expectations.” Raoul gave Marcus time to ponder before continuing. “It’s this factor that is really driving progress not the need itself. I’m pretty sure about this.” “What motivated you to start then?” “To turn the wheelchair on its head. As the idea and the technology grew so did people’s expectations. This is the reason we are focusing more on developing the capability for someone to digitally translate their thoughts into movement or speech.” Raoul returned Marcus to the point of the call. “Anyway, you were telling me about your research.” “Before I do, care to comment about scarcity as a driver?” “OK, but first how do you view scarcity, Marcus?” “Well, if you look at what your company is developing, surely there’s a scarcity in function and capability in those people needing your technology.” “I guess so. But I’m not into this for economic gain. That’s not the driver. I started out trying to address a complex problem. Expectations have become all-embracing. But I’m not really focusing on the economic gain.”

“You’ve lost me, sorry.” “Take the Aston Martin. What prevents you from buying one?” Marcus laughs. “My wife and bank balance for starters.” “Your wife doesn’t like Astons?” “Loves them, but she’s the operations manager in our household. If I spent all our money on such a thing, if I could, she’d divorce me!” “You are right, of course.” “About divorcing me?” “No, the reason such an item costs so much is because of scarcity.” Raoul paused. “People everywhere continually run into scarcity because we all have unbounded desires while resources are limited. We are all forced to compromise. Economists study the phenomenon.” “I hadn’t heard scarcity described like that. So, scarcity of your amazing products is a factor?” “It isn’t a prime driver in our case.” “Really?” “Really. Maybe scarcity from a denied access perspective…” Marcus interrupted. “I get it. Denied access causes tension around denied contribution to society. Your customers can at last get a real taste of contribution.” “You got it.” Raoul chuckled again. “You’re an economist at heart, Marcus.” “I see a lot of crossover with my industry, in certain areas anyway.” “Yours is a unique industry, Marcus. One of

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“People everywhere continually run into scarcity because we all have unbounded desires while resources are limited.”

the few that operates within and for a broad spectrum of business life.” “Can you tell that to the people at the top?!” “Nope, that is your job!” “It’s revealing,” Marcus mused, aware he was going further from the topic. “I was at a conference the other week and a number of the discussions covered challenges we were resolving years ago.” “Why are you surprised?” “I’m not really, but I was hoping the industry had moved on. FM is desperate to be acknowledged at board level and yet it seems like Groundhog Day with the same issues and challenges and debates.” Marcus sighed. “At the conference in a debate about the future of the workplace, someone suggested that people who work in the hospitality industry would make good facility managers. Good idea, and many in the audience nodded their heads sagely. My digital twin just sat, impassively.” “OK, OK touché!” “Back in the 90s we were hiring hotel managers for one client, a top three global financial consultancy firm, which had a focus on financial rigour and people churn. Hotel managers had ideal skills for understanding this culture. For another client, a leading global software company, we hired a business psychologist to run the account. She was great, she understood what made the client tick, culturally and operationally, and led the FM team accordingly. The client loved her.

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The point being we hired people with skill sets to match the client’s business and culture. We had very few traditional facility managers running our accounts. But everyone we employed all saw their roles through an FM lens. They were there to facilitate and improve business endeavour.” Raoul didn’t argue. “Interesting. Your approach certainly reinforces my belief your profession is at the heart of a lot of things in business.” “It is. Unfortunately, a lot of entrepreneurially minded people outside or on the periphery have seen the opportunities and have made them their own. Architects are a classic example. They, arguably, lead the focus on workplace design. The FM profession is only now feasting at the table. The financial sector is driving the charge in blockchain technology. Why hasn’t someone in FM taken hold of this idea? It’s about data after all and we’re now supposed to be data-smithers!” “Why didn’t you?” “If the company that had bought us out had lived up to its promise to invest, then I’m sure one of our team would have been at the forefront of a lot of technological innovation. We were, after all, digitising our clients’ space 30 years ago to explore what is now called agile workspaces. “Architects were not in that space then,” Marcus paused. “I’m back on a soapbox, aren’t I? Ho hum!” “So where does this lead you in your research on necessity and the like as a driver for progress in your industry?” “To answer that I’ll draw on your earlier comment on how exponential technology is itself driving expectations rather than necessity, particularly within the workplace I just gave rant on.” They both laughed. “Go on.” “It is a given these days that traditional business models are being disrupted. We used to say that change is the one constant. Most savvy companies realise they need to recruit and maintain the best innovators, collaborators and critical thinkers. The telecoms industry is a prime example. This

recognition has, I believe, gone beyond realising that the office space needs to attract and retain. The early drive for more innovative and effective workplaces – whether co-working, incubators or agile spaces – has, as you say, created expectations in the employee, well most anyway. The FM profession should be addressing what makes for collaboration, innovation and disruption… templosion and should be influencing design. Not just in the workplace, but in the business model. That’s board level material!” “Looks like you have a lot of work ahead still?” “I guess so. It all has ties with my project – my ‘final frontier’ stuff.” “Tell me. In your work with NASA, what drives the existence of the Space Station? If you knock out exploration and all those other noble causes and goals, what is behind the reason it was built and is now maintained?” “I think we would develop a similar list of answers. There’s a multinational dimension to it, which complicates the answer.” “Understood, but let’s talk final frontier and purpose. Did you know that for NASA and the International Space Station (ISS), its cash flow is the research carried out on the vehicle? Arguably, a lot of it has no immediate commercial benefit, but the continual innovation in the experimentation is driving expectations and sophistication back here on Earth.” Marcus nodded in agreement and quickly added, “And its continued operational integrity and maintenance are key factors in the longevity and scale of the cash flow.” “Yep.” Raoul paused momentarily. “We’ve come full circle since we last met. How is your project going and what have you found out? Last time we spoke you were visiting Houston.” “All planned. I’m looking at how the ISS manages to continue beyond initial life projections, from an operational and a structural perspective. There’s real relevance for my profession – the epitome of collaboration, innovation and purpose in my view. “Be keen to hear from you Marcus.” ●

JUNE | JULY 2018 FM

1/06/18 10:23 AM

42 | CASE STUDY

Things are looking up The latest technologies utilised in lift repair and operation are absolutely cutting edge, writes Schindler’s PETER DARLEY.

ow’s your day going so far? Would you fancy another three hours to give you more time to get through all the myriad things you need to do today? Ha! Wouldn’t we all? If you’ve ever spent untold hours (and counting) hanging about for a service operator to come and fix your washing machine/phone line/photocopier/you name it, you’ll certainly appreciate any new technology that can shave three hours off that waiting time.

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But that’s just what’s possible with the Ahead technology developed by Schindler. A recent Italian study showed that in a large facility housing a significant bank of lifts, there is an average of three hours before anyone notices when one of them is out of action. People are just waiting for the first one that comes. The idea that the one next to it isn’t coming any time soon doesn’t necessarily occur to them. When it finally does become clear that the lift is no longer working, the repair process kicks into gear, with a call to the service

Peter Darley

centre from the building’s facilities manager, which then dispatches a service technician to diagnose the problem and, hopefully, fix it. It’s reactive, it’s slow and it’s vague. With Ahead there is a continuous monitoring process in place that means lifts across the globe are being compared and analysed for all facets of their operational information – giving a huge set of data of average operating statistics. If just one of those lifts shows an anomaly in its readings, compared to what is statistically considered

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If ever a spot had a captive audience, it’s in front of a bank of lifts with people waiting idly for one to arrive. ‘normal’ – say the temperature is running hot, or the car is travelling too fast or a door misaligned – an alert is automatically raised and sent to Schindler’s 24/7 call centre, which can organise a service technician accordingly. This process does not occur in an ad hoc fashion – instead of the technician wasting time fault finding and then hoping they have the right tools to fix the problem, they have already been provided with all the information about the issue they need to address before they even set off for the job. But that’s just the start of the cutting edge technology Schindler has developed. Utilising the same technology that Schindler has employed to overcome the NBN lift emergency phone issue, is a product called ActionBoard, which is an interface that can be accessed by the customer and gives transparency to the entire portfolio. Any notifications for a particular unit can be posted to it, the contract details and the past history are readily available, as is a maintenance schedule and all of this information can be accessed and updated in real time.

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Strata or property managers can inform tenants of developing situations and events such as scheduled or emergency repairs. The system can even perform health checks on the equipment and send out data to the relevant stakeholders. This all utilises a cloud-based analytical hub developed by GE called Predix, which boasts state-of-the-art capability in this predictive repair space.

BLACKBOARD Added to this is a further development of the technology known as BlackBoard, which is a touch screen that can be placed outside the lift doors, or any other communal area, to display any necessary information. A facilities manager may like to upload a maintenance schedule or renovation information for the building or advertise vacancies in the space. The technology could also be utilised by tenants, who can advise of any products they’re looking to sell or even if they’re having a party and would like to invite the rest of the building! The applications are endless.

DOORSHOW Even more innovative is an extension of the technology suitable for larger sites that has already seen enthusiastic take-up in Europe. The technology is called Doorshow and it allows the projection of moving images onto the exterior of the lift door. If ever a spot had a captive audience, it’s in

front of a bank of lifts with people waiting idly for one to arrive. Doorshow means the whole lift door becomes a screen suitable for displaying short video clips or advertising. Messaging can be easily uploaded, altered and scheduled online or via a mobile app.

LIFE SAVING One particularly brilliant application for this is in emergency situations. For anyone who’s ever taken on fire warden duties and been faced with uncooperative tenants who baulk at leaving by the emergency stairs in a drill or a genuine emergency situation, a projection proclaiming ‘do not enter the lift; exit the building via the emergency stairs’ emblazoned across all lift doors would certainly make their job a great deal easier. Or the application could simply provide a place for notices about food court offers, sales promotions or other relevant building information. Again, the potential applications are endless. Lifts that can self detect any operating issues, save an average of three hours in repair and outage times, while also spreading the word about kitchenette cleaning rosters in the facility and preventing mavericks from ignoring safety advice in emergencies? What will they think of next? ● > Peter Darley is the national sales manager – Service and Repair at Schindler Lifts Australia Pty Ltd.

JUNE | JULY 2018 FM

5/06/18 4:58 PM

44 | CLEANING

SCRUBBING UP NICELY FM chats to a range of leaders in their respective cleaning and maintenance fields.

KAMBERRA INDIGENOUS CLEANING – SIMON ROLFE In what sector of industry do you operate? Commercial cleaning.

How long have you been established? Kamberra Indigenous Cleaning turned 12 months old in April 2018.

Where are you located and where do you provide your services? Kamberra Indigenous Cleaning is solely located in the Australian Capital Territory (ACT) and provides services to a range of clientele including government, private enterprise and other Indigenous businesses in the ACT.

What’s your overriding motto when it comes to cleanliness and hygiene? “We provide cleaning solutions and achieve quality results by working closely with our clients’ cleaning requirements.”

What makes your company stand out from the pack? Our company is operated by our Indigenous general manager, Tyrell Gooley, with a strong focus on making Kamberra Indigenous Cleaning a true leader in providing opportunities and pathways to all Indigenous people seeking employment. The company continues to explore and source other Indigenous businesses to exchange goods and services, as well as participate with local Indigenous communities and groups to promote Indigenous businesses in the ACT.

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When it comes to dirt and mess, what’s the excuse you hear most often? Normally when we come across a site as described in the question it is a result of cleaners not having the necessary tools or education on how to clean. Other contributing factors include the lack of monitoring from senior management that are usually based in another state. Kamberra prides itself with its extensive level of senior management, which constantly monitors sites to ensure standards are of the highest quality consistently throughout the contract term and there is constant communication with the client.

Do you have a standout memorable experience of your time in the cleaning industry? Kamberra was successful in winning a large government department contract in mid-2017 and was set a challenge by transitioning into the site with a more limited time frame than normal. Our management team worked closely with the clients, listened to what their requirements were and implemented plans and strategies in order to meet the required deadline and to have a smooth transition into the site. The company achieved this with extremely positive feedback from the client and senior government officials and has continued to demonstrate that it is determined to succeed and provide the highest quality and customer service it can.

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7/06/18 4:01 PM

POLISHOE – DANIEL YESS In what sector of industry do you operate? Polishoe is a new-to-market automated shoeshine kiosk with a digital screen display for information and advertising ideal for buildings, venues and conference centres etc, making it the perfect value-add for facility and body corporate managers, hotels/hospitality and countless other sites and venues with high foot traffic.

How long have you been established? Our business was established in Melbourne six years ago, yet Polishoe is our latest introduction to the market. After the new on-the-go shoe polish concept proved very successful in Europe, Asia and the UAE, we have launched the new-to-market product here in Australia.

Where are you located and where do you provide your services? We are a Melbourne-based company, yet we provide the automated shoe polish and digital media kiosk ‘Polishoe’ nationally.

What’s your overriding motto when it comes to cleanliness and hygiene? In our busy lives we are often too busy to take care of the little but all-important things, especially when it comes to first impressions. So, we put on our make-up in the car, straighten our ties in the lift before the meeting and all too often overlook our shoes. Polishoe is the on-the-go convenience for office buildings, public areas, courts, airports, train stations, hotels, meeting and conference

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centres etc, that offers the perfect shoe shine – done quickly and easily in under two minutes.

What makes your company stand out from the pack? Polishoe is the only fully automated shoeshine kiosk concept that delivers bespoke high-definition digital messaging while providing an affordable and convenient service – here in Australia. It is the ideal messaging and customer service value-add for large buildings, venues, institutions and events.

When it comes to dirt and mess, what’s the excuse you hear most often? Time. Who has time these days? And, as we rush through the day, one of our most individual of accessories (and from which people form their first impressions of us) are our shoes. Polishoe is the easy and quick solution to put that sparkling shine on your shoes before you step into that all-important meeting.

Do you have a standout memorable experience of your time in the cleaning industry? The feedback we have been receiving from venues, building managers and customers alike has been very positive. And interest in the messaging capabilities has been overwhelming, whether to deliver in-house and on-site messaging or external advertising content, to promote charitable causes or even for back-of-house use to ensure staff appearance is spotless. The scope and applications are obviously endless, with Polishoe receiving strong interest right from the start – and growing...

JUNE | JULY 2018 FM

7/06/18 3:59 PM

46 | CLEANING

KÄRCHER

Every day, Kärcher works towards making a difference. Whether a simple driveway or Mount Rushmore – outstanding cleaning performance matters to the company, down to the last centimetre. Founder Alfred Kärcher was an innovative inventor, never satisfied with the first available solution. Whether it was de-icing aircraft wings or cleaning large surfaces efficiently and thoroughly, he was always inventive and committed to providing outstanding products for his customers. Like so many, Alfred Kärcher did not live to see the global success of his innovation, but today his children Johannes Kärcher and Susanne Zimmermann von Siefart are in charge of the family-owned company in its second generation. Kärcher turned its attention to high-pressure cleaning in 1974 and in 1980 the company expanded its product range to cover basic cleaning requirements, initially in the areas of transport and buildings. Step by step, the range was expanded with the addition of wet and dry vacuum cleaners,

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sweeper vacuums and scrubber driers, vehicle washing bays, steam cleaners, cleaning agents and drinking water and wastewater treatment systems. Among the milestones in Kärcher’s history was the introduction in 1984 of the HD 555 Profi, the first portable high-pressure cleaner, and the subsequent expansion into the consumer market. Kärcher has been growing rapidly in Australia, now with a national presence of 10 Kärcher centres, six of which are dealer owned and operated. Further, there are two dedicated Kärcher stores and a vast national service network throughout the country. It is also the preferred supplier to Australia’s largest cleaning contractors and leading industry brands. The mission is to make the world a better and cleaner place, a little better every day. www.karcher.com.au

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7/06/18 3:52 PM

SOLARIS PAPER

Solaris Paper Pty Ltd, an Australian operated and managed company, supplies a range of quality tissue and hygiene products throughout the Australasia region to both the away from home and retail markets. Our range is synonymous with affordable quality and our products can be found across the world in a wide range of commercial locations, including building facilities, hotels, offices and public washroom locations. Within the growing away from home market, Solaris Paperâ&#x20AC;&#x2122;s primary Livi brand offers an extensive range of hygiene solutions, including a complete range of toilet tissue, facial tissue, paper towel, napkin, wipes, soap, sanitiser and air freshener, as well as reliable dispensing systems to complement the range. Liviâ&#x20AC;&#x2122;s quality and scope of products has made it an ideal choice for our customers, who value flexibility and cost-effectiveness without compromising on quality and hygiene.

Commitment to sustainability

illegal fibre entering the supply chain and implements comprehensive, independently audited systems to ensure that the raw materials it purchases are from legal and responsibly managed forests. We adhere to strict, independently audited, Legal Origin Verification and Chain-of-Custody protocols to ensure complete transparency on the origin of our raw materials. Our suppliers operate pursuant to national and international regulations and in many cases exceed regulatory requirements by undertaking a range of voluntary measures to promote sustainability. Visit www.asiapulppaper.com to find out more about how Solaris Paper and its preferred supplier APP are working to promote sustainability. 8 Basalt Road, Pemulwuy, NSW 2145 1300 832 883 solarispaper.com.au

Solaris Paper maintains a strict, zero-tolerance policy for

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JUNE | JULY 2018 FM

7/06/18 3:52 PM

48 | ENERGY WATCH

Getting the genie back in the bottle Tired of the blame game on rising tariffs? There is a way of taking back ‘the power’, as DAVID CARDOZO reports.

For many businesses, in this sun-drenched continent, solar energy is the solution. Here’s an easy-to-read discussion of the business and technical considerations. The technical stuff – written for you, not for engineers – is good to understand because all too often it’s used as a smoke screen to preserve the status quo.

THE POLES AND WIRE PEOPLE

hen it comes to electricity, there was a time when the genie was safely enclosed in the bottle. Graduating electrical engineers melded into State Electricity Commissions, electricity infrastructure was basically a boring subject and, by many accounts, overpopulated with chief, deputy and middle management ‘cardigans’, all of whom had engineering backgrounds. Privatisation took care of that. While state budgets were restored through electricity asset sales, budgets of citizens and, more lately, of businesses, began to be impacted by way of steadily increasing tariffs. Any notional taxation decrease through privatisation was being met by users paying more and more for electrical energy. As always, one individual’s profit is another’s expense. Taking note of what the state and federal governments are promising, jawboning electricity companies, arguing among each other about renewables versus coal is fine – if you have the spare time. If you want to really lower your electrical energy cost, however, inform yourself about the actions you can take. You can safely ignore politically-inspired blue sky projections, and those who argue that dark days are ahead. Generating a substantial amount of your own electrical energy is the solution. And contrary to what you may have heard, it is likely to be an economical solution, with realistic payback times on your investment.

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The truth is that they really are not too fond of you doing your own thing, and a set of rules called grid codes block the path. Note: we’re not talking here about energy retailers, as they have no say at all in the grid codes, and the codes vary between poles and wire companies. There is, however, a universal problem being cited here, namely that too much energy is being pumped back into their grids. If you use 100 kilowatts (kW) of power, and generate 80 kW say, from your solar panels, you’ll still need 20 kW to be delivered to you as input. So what’s the problem? If the numbers are the other way around, you’ll pump 20 kW into the grid. Imagine we were talking about water – then it’s obvious: water pressure drops the further down the pipe you go. Pumping water back into the pipe raises water pressure for the other consumers connected to the pipe system. For water pressure read, voltage. The grid folk have their own way of controlling electrical pressure (voltage), and really don’t want you upsetting their systems, so they put some fairly onerous restrictions on what can and can’t be connected. What we’re talking about here is basically the quality of electrical supply of which voltage is a critical parameter. The one that has been very much in the news is feed-in; i.e. the power in kilowatts that solar systems push back into the grid and for which, at one stage, domestic consumers with rooftop solar were handsomely rewarded.

POWER ON YOUR ROOF Think of energy consumption in terms of kilowatt-hours (kW-hr) per square metre. A supermarket may have an annual consumption of 500 kW-hr per square metre and have a

floor (and roof) area of 500 square metres. Every two square metres of solar panels can generate 0.3 kilowatts, and the roof can therefore potentially harvest 75 kilowatts. On the basis of three hours’ effective production per day (i.e. with the sun at its zenith), about 160 kW-hr per square metre could be generated annually. The calculation is by way of an illustrative example, to focus attention. In practice it may be possible to cover half the roof with solar panels.

THE ECONOMICS The 75-kilowatt system would typically have an installed price tag of $80,000. Assuming a very competitive total tariff of say, 25 cents per kW-hr, a saving based on 50 percent roof coverage would yield an annual saving of $10,000, or a return of about 12 percent. Note that if you are contemplating putting in your own system, you’d be wise to consult specialist finance companies, some of whom talk returns of 30 percent depending on the price of energy certificates (STCs – smallscale technology certificates), which are netted out of the hardware cost. The aim here is to get you thinking about the scoping of the energy solutions available – and we have some way to go as a nation. As of December 2017 there was a combined solar output of seven gigawatts (million kilowatts) for 1.7 million installations; i.e. an average of four kilowatts per installation (many domestic installations are much smaller at typically 1.5 kW).

THE ROADBLOCKS The larger a commercial solar system is being planned, the more homework is required. We’ve mentioned this already in terms of the effect on voltage and generally on power quality. These concerns provided a cap on how large a system can be installed according to most grid codes. The excess power that can be produced depending on sunshine intensity has to go somewhere. It could be a battery bank, but as things stand, commercial returns on battery storage are not necessarily brilliant. An alternative is load following whereby the solar

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Power factor = 0.80

100% solar power Reduction in output of inverter to meet power factor requirements

system adjusts its power to not exceed that required within the electrical installation; i.e. no feed-in to the grid. Another roadblock is that of power factor. In short, power factor is the ratio of minimum electrical current needed to power your motors, air-conditioners, lighting, etc to that actually supplied. An installation with a power factor of 0.8 requires 25 percent more current than strictly needed. Power factor has become a sufficiently large problem that many grid companies require solar systems to provide that extra current rather than having to supply it from the grid where it chews up more energy losses for the electricity distributor. This limits the energy available to the consumer’s

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electrical load, as some of that is now needed for ‘reactive current’ (the technical term used by electrical engineers) production.

POWER FACTOR ECONOMICS The circle diagram indicates the diminution of available power from the solar system when it is required to provide the additional current (reactive current). For installations without their own source of power, many tariffs have a so-called kVA (kilovolt-amp) additional monthly charge, punishing users with power factors less than 1.0. There are not many with that rather ideal figure, the normal range being between 0.7 and 0.9. Rather than letting the solar system do the hard work, a power factor correction

device can eliminate the need for the reactive current generation by the solar system, thus letting it do what it does best – cranking out maximum energy. Power factor correction costs, but for a 75-kilowatt solar system the additional costs would be in the order of 10 percent, thus providing significant saving on demand-based tariffs – and these are on the increase for lower and lower levels of annual energy consumption. It is best to assume that the days of cheap electricity are gone forever. Federal, state and territory governments are largely powerless to influence the market unless they are willing to ‘socialise’ electricity on the basis of it being essential infrastructure. However, neither they, nor the markets, would tolerate such upheaval. It is easily grasped when electricity is 20 percent or more of manufacturing costs, that it is critical input, but that’s too dramatic an example. Not everyone is smelting aluminium. But take a modest IGA supermarket as an example. Chances are that electricity cost, as a fraction of its profit before interest and tax, is 20 to 30 percent. With that example in mind, it seems sensible to make a long-term investment in solar plant so that a stable, economical cost base for your business is established. ● > David Cardozo is a Melbourne-based energy writer.

JUNE | JULY 2018 FM

28/05/18 11:13 AM

50 | HARD FM

Prevention is better than cure Water quality management plans are essential for cooling towers, along with effective regular monitoring of hot water systems to avoid a legionella outbreak, as PAUL ANGUS reports.

Paul Angus.

ccording to Health Department data, in May 2017, 47 cases of Legionnaires’ disease were reported across Australia, which is a significant increase on the 28 cases reported for the same period a year earlier. There are countless research papers, experts available, design standards around the world and equipment on the market to minimise and prevent Legionnaires’. The question therefore must be asked – why does it keep happening and how can we ensure another fatality can be prevented? Do we need an improvement in legislation and Australian Standards to incorporate additional design, operation and maintenance techniques? You may have missed the amendment to the Public Health Regulation 2012, which was published on 1 December last year, with the new requirements that came into effect on 1 January this year. The main update involves the occupier of premises that contain a water-cooling system. The occupier must ensure that: ● all water-cooling systems undergo monthly testing for legionella count and heterotrophic colony count, and ● reportable test results of legionella count >1000 cfu/mL (colony-forming unit per millilitre) and heterotrophic colony count >5,000,000 cfu/mL are notified to the local government authority for that area.

DUTY OF CARE – YES, THAT MEANS YOU Regular maintenance and testing of plumbing and mechanical plant within your facility plays an important part to prevent fatalities.

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But who is accountable when an outbreak occurs? Is it the facilities maintenance staff, the client, the main contractor? Or does the blame trickle down to the hydraulic contractor or the hydraulic consultant? One thing’s for sure, we all have a duty of care and should ensure no stone is left unturned, and quite rightly so, especially as prevention is better than cure. As the facility manager, you are responsible to provide a duty of care, as defined in the Public Health Act 2010 – being a responsible person who may reasonably be expected to be competent to install, operate or maintain a water-cooling system. Relying on external companies to take this risk from you simply won’t cut it. Monthly testing of water-cooling systems for legionella and total bacteria is an important way to prevent outbreaks of Legionnaires’ disease. The Australian Standard 3666 ‘Air-handling and water systems of buildings – microbial control’ describes good practice in the management of water cooling systems, including monthly testing and reporting.

RECIPE FOR DISASTER Legionella is most commonly found in water services pipework, evaporative condensers, cooling towers and water fountains. As soon as these systems fail to be correctly maintained, the bacteria can grow to significant proportions. It’s really quite a simple recipe that can occur in any facility, by becoming lax on risk assessment measures: ● add a sprinkle of slack water treatment in for good measure, don’t forget the stagnant water! ● place the hot water system somewhere warm and temperate – just wait a short while to see the fantastic results that have allowed the legionella bacteria to ‘prove’ ● use the water in an aerosol (shower) or for misting purpose (cooling tower), then ● add people to your facility. Et voilà! Legionnaires’ biofilms will grow and multiply in force in a blink of the eye. Legionella is not a fussy tenant. It doesn’t care what size the building is or how many people are there. It’s just waiting for these correct conditions to occur and to become

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28/05/18 12:31 PM

airborne. Just follow the recipe above and you will eventually have a ‘deadly’ success. Preventing legionella should focus on engineering solutions such as design and installation, plus the selection, location and maintenance regime of plumbing and mechanical plant. And, as with any great engineering design, how a system is operated and maintained is paramount to its ongoing success. Whatever the approach, it must be integrated with modern technology, such as being connected to a building management system (BMS) to provide real-time monitoring and avoid human error. The time of year is also critical; for example, in the peak summer months when air-conditioning is in use, the cooling towers can be subjected to heat from the sun and temperatures can easily rise to the required temperatures for legionella to form. Similarly, facilities that have been inactive during holiday periods or levels of buildings used infrequently will contain stagnant water and require a water management plan to flush or pasteurise the system.

HITTING THE HOT SPOT! Consideration at the design stage on a hot water circuit may often be disregarded by a hydraulic contractor to save time or money. It is therefore imperative that the consultant overseeing the installation ensures the installation is correct. The design, including the pipework route and diameter of the hot water distribution system, is particularly important for the hot water return circuit, ensuring the hot water system is working to its full capability. A full appraisal should be undertaken to consider the usage of supplementary treatments, although these can come at a cost. Do the contractor, hydraulic engineer and building services consultant fully understand that a simple cost saving in the short-term could ultimately be costing another person’s life in the long-term? The hot water plant also requires careful selection and location, taking into account peak periods and frequency of use. These heaters should be capable of ensuring

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“Monthly testing of water-cooling systems for legionella and total bacteria is an important way to prevent outbreaks of Legionnaires’ disease.”

All you need is a few susceptible people to be exposed to the contaminated aerosols and you have an outbreak on your hands. Temperature is important, particularly in business today with such a high focus on energy efficiency and escalating energy costs. Good practice in the energy world is to reduce temperatures to save energy and money; however, making an unguided decision to reduce the hot water temperature from 60 to 50 degrees Celsius dramatically increases the risk of legionella throughout the hot water system.

RISK MANAGEMENT PLAN a temperature rise that can provide a pasteurisation cycle to disinfect the system and eliminate biofilm forming and building up within the internal surfaces of pipework. Similarly, how much thought goes into locating and installing thermostatic mixing valves (TMVs)? These mixed hot water temperature ‘dead legs’ can be overlooked at either design or installation stage and unintentionally become a breeding ground. Introduce a shower outlet, which is used intermittently, and the water becomes stagnant, and it will impact the mixed hot water temperature to become a breeding ground for Legionnaires’ biofilm.

STAGNANT WATER Flushing and treating the pipework at installation stage helps to prevent legionella from forming; however, it doesn’t stop there. As buildings are refurbished, capped pipework should be taken back to the final branch to avoid stagnant pockets of water occurring and becoming a further breeding ground for biofilm. A risk assessment and identification process should be carried out on the water services system. This will help to spotlight any conditions that could encourage bacteria to multiply. For example, if the water temperature happens to be between 20 and 45 degrees Celsius, there is a means of creating and disseminating breathable droplets (e.g. the aerosol created by a shower or cooling tower).

Managing the risk is of vital importance. A risk management plan or water quality management plan must be prepared for preventing or controlling the risk. In order for control measures and guidelines to remain effective, regular monitoring of the systems and the control measures is essential. Monitoring of general bacterial numbers can indicate whether microbiological control is being achieved. Sampling for legionella is another means of checking that a system is under control. The plan is a living document that should be reviewed and updated regularly. This is the only way to ensure the tenants’ safety within the facility you operate. By achieving the right engineering design elements, operating and maintaining systems correctly, keeping records of the steps and precautions in place and, importantly, appointing a person to be managerially responsible, these precautions can prevent a deadly outbreak. ● > Paul Angus is an associate director – Hydraulic Services at AECOM, based in Sydney. Paul has strong commercial and technical capability in developing and delivering hydraulic design strategies and solutions. He specialises in providing a sustainable approach to system design, including water conservation, recycling and generating innovative engineering solutions. He has extensive experience in the hydraulic design, pre-acquisition and condition surveys, including all forms of specialist client advisory work.

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28/05/18 12:31 PM

52 | CHANGE MANAGEMENT

A BUSINESS WITHOUT BOSSES? Several leading companies are changing the game to drive true agility in organisational design, as MICHAEL McQUEEN reports.

arge and mature organisations tend to be inertial at their core. In nature as it is in business, size is almost always inversely related to agility. While talk of decentralised business structures is far from new, most leaders and large organisations cling to 19th century management models. Although a rigid bureaucratic approach may promote consistency and predictability, these beneﬁts all come at the cost of the very agility and responsiveness required to win in the 21st century. So is it possible for large businesses and mature organisations to mimic the agility and responsiveness of a nimble start-up? Is a truly decentralised and network-based business model practical and possible? In short, the answer is a resounding ‘yes’.

ANZ TAKES A BLOWTORCH TO BUREAUCRACY Despite being one of Australia’s oldest banks, ANZ is doing a mighty job of transitioning away from the hierarchical model of old and becoming ruthlessly action- and outcomes-oriented. According to ANZ chief executive Shayne Elliott, the goal is to “take an axe to the bank’s hierarchies and bureaucracy”. Elliott’s goal is to “shift the workforce into agile teams, mimicking the way businesses such as Google, Facebook and Spotify operate” in order to act on opportunities and launch new products faster. In the new structure, the bank will be reorganised into teams of 10-person ‘squads’ that will group together into ‘tribes’. Beyond the limiting of a team’s size and the adoption of new language, ANZ will also overhaul the company’s approach to leadership and authority. Squad and tribe leaders will be appointed based on their adaptability and capacity to work across multiple teams rather than their tenure or career experience. Day-to-day activities will change too. Team members will be asked to view project delivery timelines as six-week sprints, while their accountability for activity and progress will be gauged in daily stand-up meetings. Naturally, this shift will have a signiﬁcant impact on facilities management, resource allocation and technology

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Are culture, systems and power structures all fit for the future? For facilities managers, these questions are equally important. After all, if the desire for control, predictability and order comes at the cost of agility and responsiveness, this may be too high a price to pay in an age of disruption.

integration. Far from bravely blazing a new trail, however, ANZ has taken a leaf out of the book of overseas corporate giants such as Haier and W.L. Gore.

HIGHER-ORDER THINKING AT HAIER In the case of Chinese electrical appliance manufacturer Haier, the company’s chairman Zhang Ruimin invokes no less than philosopher Immanuel Kant when describing his ethos for authority: “We encourage employees to become entrepreneurs because people are not a means to an end, but an end in themselves. Our goal is to let everyone become their own CEO – to help everyone fully realise their potential.” This is more than mere rhetoric. Ruimin has been steadily transforming Haier’s culture into one of genuine empowerment and self-direction over recent years. Today, Haier’s 40,000 staﬀ are broken up into 2500 microbusinesses or microenterprises consisting of no more than 15 people. Each microenterprise has its own P&L and is accountable to achieve certain success metrics.

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Then there’s the shining example of decentralisation oﬀered by W.L. Gore. By any metric, W.L. Gore is an impressive business. Since the company’s inception in 1958, it has never once made a loss. It is consistently ranked as one of the ‘best places to work’ and is an innovation powerhouse boasting over 7500 registered patents to date. And yet, despite all these conventional measures of success, it is W.L. Gore’s unconventional strategy for achieving them that is most extraordinary. Unlike every one of its competitors, no employee at W.L. Gore has a title. There are no bosses and no formal hierarchy. Employees review each other’s performance and promotion is by peer-recommendation and endorsement rather than seniority or tenure. While it’s tempting to dismiss this model of shifting authority from central bureaucracies to networks of start-up-esque business units as something that ‘would never work in our business’, I’d challenge this assumption. If a big bank, a Chinese

multinational and an industrial manufacturer can adopt this agile model, I’d argue the biggest barriers to embracing it are not pragmatic, but rather the paradigm-bound and power-driven. Regardless of whether an organisation adopts a wholesale model of decentralisation, what’s clear is that every business and leader must examine whether their culture, systems and power structures are ﬁt for the future. For facilities managers, these questions are equally important. After all, if the desire for control, predictability and order comes at the cost of agility and responsiveness, this may be too high a price to pay in an age of disruption. ● > Michael McQueen’s latest book How to Prepare Now for What’s Next (published by Wiley) examines the key disruptions that will shape the coming decade and outlines a game plan for staying one step ahead of change. For more information, visit www.michaelmcqueen.net.

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JUNE | JULY 2018 FM

1/06/18 10:45 AM

54 | CHANGE MANAGEMENT

Why you need a portfolio change manager Can every project be considered a change project? KAREN SKILLINGS says when it comes to a technology project the answer is yes.

Who

How

ependent on the type of project, the team assigned could have different work streams and call upon various subject matter experts (SMEs). But it’s important to get the right team together. In workplace change projects, you may find the team consists of the following: Project Control Group (PCG), project director and work streams for change, fitout, IT, operations and facilities. In technology change projects you may find the project team consists of some of the same executive leaders in roles, such as PCG and project director, but it may now include stakeholders from business and governance, business analysis, project management, IT security and risk, IT strategy and Infrastructure, IT service delivery and IT operations – to name a few. While the team make-up is ultimately dependent on the structure of the business in which you are working, this example identifies that technology projects in particular can have highly technical people working together, that don’t always know how to make connections to the stakeholders. Indeed, stakeholder engagement may not be their strong suit. This is where they need a portfolio change manager. This is the person who will involve, consult, collaborate, empower and inform the business. In the beginning of the project (Phase 1 – Assessment and Concept), the portfolio change manager will work through engagement options and key objectives, diving deeply into:

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Other Considerations

Karen Skillings.

Stakeholders

Who are the stakeholders?

Level of engagement

What level of engagement is required? (e.g. consult, collaborate etc)

Proposed method of engagement

What method of engagement will you use? (e.g. face to face, workshops, forums etc)

Timing

What are the timing issues/requirements?

Resources

What resources will you need to conduct the engagement process?

Responsibility

Who is responsible for engagement?

Key messages to communicate

What are the key messages?

Managing risk

What are the risks associated with the engagement?

From this diagnostic work, the portfolio change manager will develop a communications and engagement plan to ensure the right information gets to the right people at the right time. Once this plan is signed off by the leadership team, there is documentation as to the approach of how steps will be undertaken and future state activities. If the executive team, project sponsor or project team have concerns about anything in the plan or the approach suggested, this is the time to question it – and fix it. From there the portfolio change manager can get to work on understanding any complexities of the project. Then they will start on their change and communications plan.

PROJECT PHASES AND CRITICAL JUNCTURES FOR SUCCESS Phase 1: Assessment/Concept The portfolio change manager doesn’t have a role in assessment, but they do in concept. Assessment is completed by the delivery work streams responsible for business and governance, project management and, perhaps, IT strategy and architecture. These stakeholders are working on idea, project profile and concept summary. Rather, the portfolio change manager comes in for the concept, starting the

business change impact assessment and work with the project manager on stakeholder analysis. The business change impact assessment is a tool that determines how wide the ‘ripple effect’ of the project will be. These ripples are typically operational, technical, financial and people.

Phase 2 – Planning AKA Initiate Regardless of what type of project a change manager may be working on, their mandate is to enable greater collaboration between people, demonstrate and simplify any new process or culture and cast a watchful eye over the connections of the project team itself with the internal stakeholders and outside business community. In Phase 2, they will develop the organisational change approach and plan, and business readiness assessment in conjunction with the project manager. They’ll work closely with this person and report to them frequently on: ● employee engagement and monitoring of project inbox ● team engagement ● risk in schedule stability ● senior leader engagement ● change freeze ● managing change to scope, and ● change management communications.

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Some of the activities undertaken here may include: user acceptance testing, translation of the business requirements into a communications plan, training strategy and training plan, review of existing processes and definition of the business, functional, nonfunctional and data requirements. Here, the portfolio change manager is managing connections and how things converge. They are seeking out contingencies across all platforms and explaining how the change works in the environment.

Phase 3 – Executing the change plan AKA deliver and deploy The work completed in Phase 2 is now executed. This may include: ● applying the appropriate training strategies for the education of stakeholders, both technical and non-technical personnel ● implementation of the new solutions, and ● harnessing vendor relationships.

Phase 4 – Finalise AKA operate The portfolio change manager has completed the stakeholder engagement, ensured connections have been made across the business, ensured contingencies across platforms and environments were developed and upheld, and carefully controlled engagement to ensure

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expectations were appropriately managed and that consultation was genuine.

AT THE END OF THE PROJECT Lessons learned In conjunction with the program manager, the portfolio change manager may facilitate an end-of-project lessons learned session to link the project plan and charter with the project deliverables. This is an opportunity to measure the achievement, promote knowledge management for future ventures, and report to the PCG that specific project outcomes have been accomplished.

A role in taking the technology process change and normalising it. In Phase 3 or even Phase 4 (usually, Phase 4!) the business analyst is preparing the documentation set required to pass the new technical environment/facilities delivered under the project to business-as-usual operations. Dependent on the scale of project, availability of willing help and time, it can be the portfolio change manager’s role to work with the business analyst to include building a plan around how to meet those criteria. The business analyst output at this stage may be the completion of any operation manuals. Operational processes need to be defined and put in place so that all stakeholders

and vendors understand the access process, and workflow of access authorisation. It can be the portfolio change manager’s role to make sure these operational processes and the operational handover of the facilities are understood, documented and agreed across relevant business units. They may also be involved in managing the induction processes for stakeholders, vendors and third parties, and translating in plain language any changes in knowledge, skills and environment. If you are interested in what else is going on in this project (the project will remain anonymous, but it is real!), check out the Change Roadmap, which is another of my free journals available for you and your project team on my website. You will also hear about some of the challenges that change managers face in workplace, technology and change release programs every day. I look forward to next time taking you through Phase 4 in the Accommodation Life cycle ‘the design phase’. ● > Karen Skillings is the principal of Skillings Education and an expert in information management, change management and relocations. An accomplished author, she has several publications to her name and has developed nationally-recognised training programs.

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28/05/18 11:24 AM

56 | CHANGE MANAGEMENT – PROPERTY WATCH

What moves you? Moving from old premises to the new should be a linear progression, but it’s easy to underestimate deadlines. It could impact your ability to negotiate the best deal, as RODNEY TIMM reports.

he hard decisions have been made. Accommodation needs have been analysed, the market has been tested, alternative premises have been viewed, shortlisted and the best option has been decided on. The net present value and revenue impacted financial model are done, the business case and board paper approved, and finally the heads of agreement signed. Time to relax? Not a chance – the hard work is only just starting. Relocation challenges are linked to many variables, including accommodation size, number of the employees relocating, whether moving to existing or new fitout, the time period available and many other imponderables. Once you’ve signed for the new space, the ‘drop-dead’ date is now unchangeable, unlike many other corporate projects. Detailed planning to ensure that nothing goes amiss is essential. And, as always seems to be the case, the time period for moving out of the existing premises and into the new, is less than the tasks required to be done.

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FINALISE NEW LEASE Despite having a signed heads of agreement – usually non-binding – and paying the lease deposit, there are still major negotiations required to finalise the lease agreement. Receiving the landlord’s draft lease agreement can be a humbling experience. There will often be unexpected landlord try-ons, some ‘nice-to-haves’ and items that contradict the essence of the agreed commercial terms. After marking up the unacceptable terms in the lease, and sending it back to the landlord, a period of tense negotiations will ensue, usually with the landlord aware that the shorter the period left for the move, the more malleable your negotiating team will become. But with experienced negotiating skills on your side, and hopefully a plan B carefully tucked away, progress will be made. There will, however, probably be the need for some diligent management of the solicitor teams to ensure they stay focused on practical legal and risk outcomes, without trying to reformulate the commercial terms. Eventually when the final agreed lease agreement arrives for execution, you need to make sure the required bank guarantees are provided and the appropriate delegations of authority protocols are observed, during the signing process. Once the landlord has signed, at last, you have a legally binding commitment by both parties.

Rodney Timm.

workplace culture and layout is to be adopted. For example, it may be that office entitlement may disappear and assigned work points may no longer exist – all likely to be major concerns for the change sceptics. But an office relocation decision is the ideal change enabler, and usually only presented by lease events, so it should be grasped whenever possible. Having said that, it needs to be planned meticulously, particularly if management includes other corporate changes to coincide with the move.

PAIN POINTS FOR YOUR PEOPLE In the interim, change management planning for the relocation needs to occur. This is essential to ensure that the relocation does not degenerate into a bad experience for all. For most employees, after the move, many things are likely to be different. Getting to the office will change, new places to eat and coffee bolt-holes will need to be discovered, while the new retail amenity, local gyms and similar comforts all alter. The change challenges for employees will be further exacerbated if a radically different

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FITTING OUT THE PREMISES

Despite having a signed heads of agreement – usually non-binding – and paying the lease deposit, there are still major negotiations required to finalise the lease agreement.

Determining and planning a new workplace design and operating philosophy is a big topic in itself. Planning the office layout and implementation are similarly best addressed in a separate discussion, particularly for large new corporate and office environments. A word of caution – don’t underestimate the challenges and the time required for these processes. The planning period, including budgetary and other approval processes, may need to be years rather than weeks or months – depending on the size

of the accommodation footprint, extent of the adopted workplace culture changes, and whether the fitout is new or a refurbishment. Even for relatively small premises that already have an existing fitout that is to be adapted, the devil is in the detail. Changes that appear to be relatively minor can be caught up in bureaucratic decisionmaking with outcomes being frustrated by intransigent landlords, rigid code compliance or even contracting bungles. A key component in all workplaces is the information technology infrastructure. From the very beginning of the process, ensure that IT has been engaged, understand what is planned and is able to deliver all technical and specialist support needed.

DON’T MOVE YOUR CLUTTER Even assuming that all the new workplace fitout changes are diligently being managed and meet the delivery program dates, there are many other components to the actual move. At an early stage it is prudent to clearly determine what components of the existing office infrastructure will be moved to the new premises, what needs to be purchased and what will be disposed of. This is the opportunity to declutter by archiving or destroying dated and unnecessary files, documents and business collateral. Without clear directions, it is likely that some unnecessary clutter will be moved to the new premises. Being ruthless by having minimal allocations per employee tends to focus the minds of all. In most cases, the help of a professional removal service is essential. But once these services are procured, ensure that the removalists are fully informed in a walk-through so that specific items such as printers and copiers, and items needing to be dismantled, are agreed. Creating a floor plan of the new premises will serve as the primary guide for liaison during the move. It is important to cover off on the smaller details as well, such as informing utilities and service providers about the move, making a reservation for the elevator in the new premises, and hiring a pre-occupation professional cleaning service.

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JUNE | JULY 2018 FM

5/06/18 5:03 PM

58 | CHANGE MANAGEMENT – PROPERTY WATCH

SETTING UP Many components to setting up the new office are required, so that the relocation occurs seamlessly. Generally, the lead frustration in relocations is if the IT functions (especially internet) in the new office do not work. It is essential to engage early and repeatedly with the IT department and consultants. If a new workplace philosophy is adopted, with no assigned workplaces, the working protocols need to be handled sensitively, but unambiguously within the change management plan. Even planning the new security protocols, providing access cards and alerting all employees to these changes, are critical elements that are sometimes forgotten.

EXITING THE EXISTING LEASED PREMISES This is an added challenge that needs to be managed carefully. Your existing landlord may feel rejected by your decision to relocate, and this can result in some testy negotiations. It is wise to review the existing lease agreement make-good and decoration

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Determining and planning a new workplace design and operating philosophy is a big topic in itself. obligations early in the relocation process, and you need to plan enough time to undertake the make-good before the end of the existing lease term. Hopefully, you will have retained evidence of the condition of the premises as at the original lease commencement date, as this will be to your advantage in negotiating the makegood obligations. Sense may prevail and a reasonable outcome achieved, either in the form of a cash settlement or undertaking some relatively minor works. Often these makegood negotiations end up being contentious, however, with the landlord’s agent using many devices, particularly delaying tactics, to achieve an inflated cash settlement amount.

Commence these negotiations as early as possible, allowing for overlap in the old and new lease terms and always having a plan B. This may be the preparedness and lease period left to actually undertake the works, if the landlord is being greedy and intransigent. It is advisable to have professional assistance in undertaking the make-good. Once this is all done, don’t forget to apply for your bank guarantee to be released and the lease deposit, if relevant, to be refunded.

MOVING DAY At last, the big day arrives and the relocation plan is put into action. It is usually best that this occurs over a weekend, with the removalist fully briefed and minimal office personnel present other than the moving committee, at their delegated locations in the old and new premises. And, with all the great planning and change management initiatives implemented, the relocation is complete, ready to deliver the ‘wow’ factor to the employees come Monday morning. ● > Rodney Timm is director of Property Beyond Pty Ltd.

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FM INNOVATION AWARDS | 59

FM INNOVATION AWARDS 2018 By TIFFANY PACZEK

THE AWARDS The FM Innovation Awards is a brand new initiative from FM Media – FM magazine, in partnership with Total Facilities, which recognises and celebrates the most groundbreaking and innovative facility management ventures in the industry across Australia throughout the preceding year. Judged by a panel of industry experts, the awards are designed to highlight the best and most innovative applications of management systems, technology and/or processes in a range of FM sectors – education, healthcare, workspace, multi residential and hospitality, as well as awarding an overall winner. The scope of each award is wide and can relate to service delivery, allocation and use of space, management of resources or any other area where FM has improved performance.

THE PARTY The sun dips below the Melbourne skyline, winking between the skyscrapers and high-rises as dusk settles over the city. The golden glow reflects off the quietly rippling water as the shadows lengthen and creep along Southbank’s riverside boulevard. The wharf hums with life – commuters making their way home after a long day at work and excited diners wandering alongside the

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FAIRY LIGHTS TWINKLE, CHAMPAGNE BUBBLES AND GLASSES CLINK; AS MORE GUESTS ARRIVE THE THRUM OF CONVERSATION INTENSIFIES AND TRICKLES OF LAUGHTER PUNCTUATE THE AIR. water, perusing the restaurants and their menus. And amid the twinkling lights and ringing laughter, something special is about to take place at Bohemian Wine Bar and Restaurant. The first day of Total Facilities 2018 has finished, adjourned until the following morning, and the city swells with an influx of facility managers, building service providers and workplace innovators. Many of them make their way along South Wharf Boulevard to Bohemian Bar, the chosen host for the inaugural FM Innovation Awards presentation and party. Fairy lights twinkle, champagne bubbles and glasses clink; as more guests arrive the thrum of conversation intensifies and trickles of laughter punctuate the air. Inside the venue, it’s a relaxed, easy-going vibe. Guests mill around the bar

and terrace, chatting, networking and enjoying the food and drinks. And, after the guestlist has been checked off, food has filled bellies and wine has reddened a few cheeks, the presentation kicks off. Martin Leitch, FM professional and valued supporter and advocate of the awards, is the emcee for the night, and he introduces this first-ever event. The awards serve to, as Leitch puts it, “challenge the industry to embrace new ideas, new technologies and products, and to create new ways of applying them”. With the crowd’s excitement rising, Leitch introduces the judging panel, and then the big moment – or rather, the six big moments – are revealed. (Turn the page to find out the winners!) FM magazine would like to congratulate each and every award-winner and shortlisted project, and to applaud the high level of entrants. We’d also like to thank everyone who came along to the awards presentation – it was a great night! FM would also like to encourage FMs, suppliers and facilities to consider their current and upcoming projects for the 2019 awards, which will be launched in July and where we look forward to celebrating the exciting innovations within the industry that the current year brings.

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60 | FM INNOVATION AWARDS

SPONSORS The FM Innovation Awards would not have been possible without the support of its valued sponsors, Humanscale and ASSA ABLOY. HUMANSCALE Humanscale is the premier designer and manufacturer of ergonomic products for the workplace, seeking to improve comfort, health and well-being at work. Its award-winning office solutions include self-adjusting seating, sit/stand desks, monitor arms and task lighting – products that inspire movement and support the user in their posture. As the pioneer and leader of office ergonomics, Humanscale’s products allow workstations to adapt to the user – not the other way around. It focuses on high performance tools that support a healthy, more active way of working, an initiative that has seen the company grow into the global leader in ergonomics with a commendable reputation for designing intuitive products that improve the comfort and health of office workers. Pete Stacey, Humanscale’s country manager for Australia and New Zealand, presented the award for the Workspace category. He says of the FM Innovation Awards, “It’s great to bring people together as a community and celebrate people’s achievements at work, and watching them fill with pride when they win the award.”

Pete Stacey, country manager for Australia and New Zealand Humanscale, presents the award for Workspace.

ASSA ABLOY ASSA ABLOY is the international leader in door-opening solutions and the largest global supplier of intelligent locks and security solutions. Its vision is to be the most innovative supplier of total door-opening options, in order to deliver safe and convenient security solutions while providing real added value to customers. ASSA ABLOY’s products account for more than one in 10 of all lock and security installations worldwide, and it offers a variety of traditional and new products that can be combined to create a large number of different door environments. ASSA ABLOY’s products cater for different climates, different types of buildings and differing security and safety requirements, and by combining hundreds of thousands of components it is able to meet needs of consumers, architects and installers with products of the right quality, design and price, which are ideal for both new buildings and renovations. Jefferson Diniz, marketing design engineer at ASSA ABLOY, who presented the FM Innovation Award for Healthcare says, “I’m very pleased to be part of the awards and recognise those involved in the industry that grows so much in Australia.”

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Jefferson Diniz, marketing design manager ASSA ABLOY, speaks at the FM Innovation Awards.

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FM INNOVATION AWARDS — WINNERS OVERALL AND HOSPITALITY WINNER

SOUTH MELBOURNE MARKET Project: Innovation for Sustainability Delivered by: SUMS Group The grand prize of the night, the overall winner of the awards, was awarded to the Hospitality winner South Melbourne Market for its Innovation for Sustainability project, delivered by SUMS Group. South Melbourne Market’s vision was to create a unique ‘village market’ combining sustainability, community and efficiency in operation. The market’s facilities management team, led by Adam Mehegan, has shown extraordinary commitment to environmental and economic sustainability throughout the year, and were deservedly nominated by SUMS. South Melbourne Market (SMM) is one of Port Phillip’s major community meeting spaces and attracts five million visitors annually. It has been in the same location since 1867, and part of its challenge was to adapt to its changing commercial requirements while retaining the old-world charm of the facility. As such a prominent and visible part of the community, it is important for SMM to demonstrate sustainable leadership – which is from where it’s (now award-winning!) project stemmed. The FM team successfully introduced sustainable practices including recycling, food rescue, waste management and water monitoring, which have had and will have far-reaching economic, social and environmental impacts. They worked towards a model of community-led sustainability, inspiring and challenging suppliers, store holders, staff and customers. The FM team, with Mehegan at the helm, achieved the following outcomes as part of the Innovation for Sustainability project: ■ 400 cubic metres of green waste taken to work farms, reducing green waste by 98 percent ■ Gaia recycling units reduced organic, non-green waste by 75 percent, thereby diverting 430 tonnes of waste from landfill ■ 100 percent of SMM’s glass (15,000 kilograms) was crushed onsite for recycling, delivering a reduction in carbon emissions equivalent to driving 31,000 kilometres ■ 10,800 litres of oil was collected for conversion into bio-diesel ■ Polystyrene compacted on-site, reducing the volume by 98 percent and reducing the frequency of collection from three times per fortnight to once a month ■ 1000 kilograms of oyster shells collected every week and returned to the ocean to help rebuild reefs

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■ florists connected to rainwater so watering occurs without the use of potable water ■ donations of 23,979 kilograms of fresh food to SecondBite, providing 50,000 meals for those in need, and ■ three new water stations ere introduced, where water is monitored and usage calculated. By investing in these sustainability initiatives, SMM has been able to create long-term sustainability plans, build environmental awareness in the community, drive demand for resource savings and increase efficiencies in market operations with economic and environmental improvements. A spokesperson for SUMS Group says, “The team has shown an extraordinary commitment to sustainability, weaving sustainable practices into daily life at SMM. We congratulate them on their environmental leadership, innovation and achievements through 2016-17.” This remarkable innovation at SMM saw it take home the FM Innovation Awards for both Hospitality and Overall Winner. Operations coordinator Mehegan says, “I’m actually chuffed just being nominated, everything else is a bonus. To win the Hospitality Award was fantastic. I was completely unaware that there was actually an Overall Award, and to win that was a massive bonus. And it’s a credit to working with and collaborating with people like SUMS and our other waste companies, but also to having that really good team that gets on board and shares ideas and helps implement the ideas. “We’ve been doing some really good things at South Melbourne Market, we’re leading by example and that’s something we can [all] aspire to and something we’re doing well.”

JUNE | JULY 2018 FM

6/06/18 11:56 AM

62 | FM INNOVATION AWARDS

EDUCATION

QUEENSLAND DEPARTMENT OF EDUCATION Project: Asset Life Cycle Assessments Delivered by: Macutex The Queensland Department of Education and Training (DET) introduced changes to how infrastructure investment decisions are made, particularly in relation to public facilities, in a bid to move away from the traditional approach of identifying reactive maintenance issues to a more thorough facilities Asset Life Cycle Assessment (ACLA). Macutex was engaged to assist in the development of innovative data capture solutions and interactive dashboard reporting solutions, to facilitate improved longterm strategic planning and budget allocation strategies at an individual school, regional and department level. Key outcomes included: ■ the development of four-year and 12-year costed life cycle renewal program information as the basis for future planning and development ■ effective communication to schools regarding the change from defect inspections to the new ACLA program ■ interactive, visual dashboards allowing interrogation of data and key summaries ■ preparation of building plans provided by the DET with an opportunity for improvement in ongoing FM practices, and ■ a comprehensive, complete and accurate sef of facilities asset data for strategic planning and operational decision-making, across a school’s entire portfolio.

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WORKSPACE

MELBOURNE MARKET AUTHORITY Project: LED Lighting Upgrade Delivered by: Beon Energy Solutions and Next Generation Electrical To reduce its environmental footprint and offset electricity price increases, the Melbourne Market Authority (MMA) converted all market lighting to high-efficiency LED globes. The solution included: ■ replacing 8250 lights with LED globes, ensuring the new lights match or exceed the existing lux levels ■ adjusting lux levels and colour renders with new technology for optimum appearance ■ implementing a control system review to resolve existing errors, create control strategies to reduce run time, extend globe life and report on usage and emissions, and ■ bringing in a seven-year product and workmanship warranty to increase efficiency and reduce maintenance costs. With an average reduction of 42 percent energy consumption, the project has saved over 850 tonnes of greenhouse gases in three months. In addition to the environmental benefits, the investment has a saving in electricity of approximately $650,000 per annum, ultimately reducing the MMA’s operating costs. It also has a seven-year maintenance-free period, saving $120,000 per annum or $840,000 across seven years.

www.fmmagazine.com.au

5/06/18 5:06 PM

HEALTHCARE

NORTHERN HEALTH Project: Patient Feedback Tablet Delivered by: ISS Facility Services Northern Health had a keen desire to improve its results in the Victorian Health Experience Survey (VHES) and lift its patients’ perception of the hospital’s efficiency and cleanliness. Together with ISS Facility Services, Northern Health introduced a real-time patient feedback tablet, which has provided insights into patients’ experiences of the hospital and has helped to continually improve service, improving response times and positively interacting with patients. The tablet survey is brought to the patient’s bedside to gauge their immediate impression of the services, including cleaning and catering. It’s easy to use, with patients selecting from appropriate smiling or frowning faces to indicate their level of satisfaction, and also allows them to write comments. The results of this innovation have improved ward cleanliness and patient food quality across Northern Food sites in Victoria, and overall the tablet survey had led to improved VHES results and a better patient experience at Northern Health.

www.fmmagazine.com.au

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MULTI RESIDENTIAL

HOUSING AUTHORITY OF WESTERN AUSTRALIA Project: Water Conservation Initiative Delivered by: Spotless The Housing Authority (THA) of Western Australia identified that many of its properties in the north and south-east metro regions consumed high levels of water, which, given the low-income tenants, resulted in water debts. It was a key challenge facing THA in providing affordable housing to its residents. Facility manager Spotless implemented an innovative IoT (Internet of Things) solution to this problem in the form of small, mobile sensors that capture consumption data remotely to monitor water usage in real time. It provides reports to its client outlining households that are likely to have unreported leaks and/or faults or to be over-consuming water. Spotless’ goal is to leverage its IoT sensor solution to provide comprehensive data on water usage that THA could act on, ultimately achieving long-term environmental and financial benefits, and improving resident satisfaction.

JUNE | JULY 2018 FM

5/06/18 5:06 PM

64 | TECHNOLOGY

Death of the spreadsheet Is facilities management software the key to opening property communications? RICHARD EXLEY reports.

or organisations with ever-expanding, multibillion-dollar property portfolios, satisfying and retaining occupants is top priority. To ensure retention rates are maximised, communication of important information between facilities teams, occupants, contractors and finance departments is crucial. Not only does a consistent flow of data between stakeholders ensure working relationships are simplified, it also allows facilities managers to focus on completing tasks that keep spaces functioning to the highest standard. Advancements in facilities management technology have improved organisational communication and can help businesses reduce maintenance costs, while improving occupant satisfaction, building efficiency and productivity. In years gone by, a paper-based system may have been considered a valid facilities management tool, although it would lack the level of traceability required to maintain a complete audit trail. Within the FM sector, supervisors would have scribbled job details into a work order book or on a whiteboard, allocated it to a member of their team and passed it on to the assigned technician. This method works to an extent, but scraps of paper can easily be misplaced. When companies have multiple facilities to maintain, crucial tasks can be missed, potentially leading to accidents or costly breakdowns. Technology means we are heading towards an age where paper is becoming redundant.

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Spreadsheet tracking for facilities maintenance is a step improved over paper notes, but these are prone to errors, lack traceability and are not scalable. As portfolios grow, itâ&#x20AC;&#x2122;s crucial to have a software solution that can grow with the business, and to work smarter. Through the right solution, users can receive and update work orders through mobile apps, text or email, providing a full audit trail of tasks that have been set and completed. When issues arise with an occupant, it should be easy to get in touch with somebody that can resolve the problem. Gone are the address books and lists of contacts; FM systems can now automatically route requests to the right people. This is a big step in improving reliability, as it means problems can be addressed quickly. Technicians can attach notes and documents to work orders using their smart devices, meaning management can receive updates immediately and take action if required. This ensures responses are timely and efficient, reducing the risk of inconveniencing occupants.

REDUCING PROPERTY MANAGEMENT COSTS If facilities teams are able to keep their property management costs low, they will be able to offer attractive rates to their occupants and establish a competitive advantage over opposing service providers. One of the key ways FM software can reduce costs is by enabling organisations to make better-informed decisions; i.e. should equipment be repaired or replaced? When users log into their system, they can be presented with a dashboard of Key Performance Indicators (KPIs), providing live feedback on areas of the business proving most expensive to maintain. Many of these KPIs will be selectable, enabling users to expand into more in-depth data. This allows organisations to perform analyses on all areas of the maintenance they perform, and decide when it may be best to dispose of existing assets and replace them with newer models. Facilities teams are able to identify trends, where assets are at risk of failure and reduce

equipment downtime, which often leads to reduced space and asset utilisation. Facilities managers and their teams have to be able to focus on relevant tasks. If important jobs are not completed following a miscommunication, expensive breakdowns are likely. Occupants, contractors and other employees should be able to log in to an online portal and submit work requests or report faults. The ability to state the priority of jobs means that if a high-priority fault occurs, the wheels can immediately be set in motion towards resolving the situation. Quickly addressing these types of issues enhances occupant satisfaction, reducing the risk of them looking to move on.

IMPROVING BUILDING EFFICIENCY Facilities teams need to be able to easily manage internal and external resources. A system should act as a hub for facilities managers to receive work requests, allocate work orders and track work that has been completed by employees or by contractors. Important information such as tasks, contractor names and contact numbers, dates, costs, certification and asset details can be recorded and held in a central repository. Having a central location to store all important information is paramount to facilities teams running efficiently. It means contact details are always readily accessible for the organisationâ&#x20AC;&#x2122;s employees, preferred contractors and occupants. If an issue is reported, administrators can easily find the best-qualified employee/contractor to perform repairs. Being able to store documents such as certificates allows facilities managers to ensure whoever is assigned a task is adequately qualified. Storing and managing all resources, documentation and contact details in one location offers organisations a lot of benefits. It ensures facilities managers can receive, allocate and sign off work orders quickly, while also enabling them to check whether tasks are assigned to employees or contractors with the appropriate qualifications.

www.fmmagazine.com.au

28/05/18 11:30 AM

FM:Interact Software

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Advanced Spatial technologies FM:Interact is an Integrated Workplace Management System (IWMS) suite of computer software tools for facilities and real estate professionals. These easy to use, user-friendly tools can help you save time, increase productivity, reduce occupancy costs and increase employee satisfaction all from a desktop or mobile device.

If maintenance is performed to a high standard and issues are addressed quickly, buildings will run more efficiently with a greatly reduced risk of equipment breakdown. Space Management

CLOSING THE COMMUNICATIONS LOOP Facilities teams need to quickly and effectively communicate with occupants, contractors and internal/external accounts teams. Online portals are a great option as they allow people to sign in and record faults or log work requests. This saves on administration time and ensures occupants feel their needs will be addressed promptly and efficiently. Work request portals are typically connected to specific properties. Occupants can log issues related to their building, which will be linked to a work order with budgets and cost centres assigned to them. This simplified method of logging and managing property maintenance means spend can be monitored and reported on against allocated budgets and profit centres, which in turn simplifies budgeting. Effective FM processes close the communication loop within organisations. If information is requested about maintenance related to a specific building or tenancy, the facilities manager can quickly produce reports with relevant data. This improves communication between the facilities team and accounts payable, in particular. Once work has been marked as completed, accounts can receive an automatic alert and are able to raise invoices or purchase orders quickly and efficiently. Instant notifications ensure accounts departments do not have to wait for a paper trail of completed work in order to action payments. Many organisations have large portfolios, leading to a huge demand on facilities management teams to function at the highest level. FM software has caught up with the demand for accountability, traceability and instant communication channels. The days of assuming spreadsheets and paperbased systems are efficient and scalable are over. â&#x2014;? > Richard Exley is commercial manager at Real Asset Management.

Asset Management

Move Maintenance Management Management

Space Management

Strategic Planning

Real Estate Management

Project Management

Sustainability Management

FM:Mobile

AutoCAD & Revit Integration

Workplace Survey

Industries Corporate Healthcare Education

Government Technology Energy

Call for a Demo today Ph: +61 8 9367 2888 Email: don@advancedspatial.com.au Website: www.fmsystem.com.au

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9/03/17 5/06/18 4:17 3:47 PM

66 | EVENTS

CEMAT AUSTRALIA WHERE: Melbourne Convention and

Exhibition Centre WHEN: 24-26 July cemat.com.au

ISSA CLEANING AND HYGIENE EXPO WHERE: ICC Sydney, Darling Harbour WHEN: 29-30 August

___

More information: issacleaninghygieneexpo.com

ASIAL SECURITY EXHIBITION AND CONFERENCE

TERTIARY EDUCATION MANAGEMENT CONFERENCE

WHERE: Melbourne Convention and

WHERE: Crown Conference Centre, Perth WHEN: 9-13 September

Exhibition Centre WHEN: 25-27 July securityexpo.com.au

FACILITY EXECUTIVE LIVE! WHERE: University of Pennsylvania, Philadelphia, US WHEN: 20 September facilityexecutive.com/live ___

IFMAâ&#x20AC;&#x2122;S WORLD WORKPLACE

temc.org.au

WHERE: Charlotte Convention Centre, North Carolina, US WHEN: 3-5 October worldworkplace.ifma.org

___

BMAM EXPO ASIA

IHEA 2018

WHERE: Impact Exhibition Centre,

WHERE: Brisbane Convention and Exhibition Centre WHEN: 6-11 October event.icebergevents.com.au/ifhe-2018

___

AUSTRALASIAN WASTE AND RECYCLING EXPO Where: ICC Sydney, Darling Harbour When: 29-30 August awre.com.au

Bangkok, Thailand WHEN: 12-14 September bmamexpoasia.com ___

CORRECTIONAL SERVICES HEALTHCARE SUMMIT WHERE: Rendezvous Hotel, Melbourne WHEN: 13-14 September

informa.com.au/event/correctionalservices-healthcare-summit

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www.fmmagazine.com.au

28/05/18 11:25 AM

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1/06/18 12:30 PM

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