FM World 2012-03-22

THE MAGAZINE FOR THE BRITISH INSTITUTE OF FACILITIES MANAGEMENT | 22 MARCH 2012

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Defusing the FM sector’s coming demographic crisis

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VOL 9 ISSUE 6 22 MARCH 2012

CONTENTS

7 | Ethical eating

16 | Procurement roundtable

24 | The generation gap

NEWS

OPINION

FEATURES

6 G4S sanguine in response to Olympic security criticism 7 Students favour fair-trade meals, and are willing to pay a little more 8 Project of the Fortnight: a refurbishment gives a an old brewery new fizz 9 Think Tank: what do you think makes an FM “Rising Star”?

10 Business news: Graeme Davies explains impact of public sector outsourcing on FM 11 Overseas contracts boost Serco’s 2011 year-end profits 12 Business Profile: MD Peter Hawes explains the Norse business model

14 Perspective of a facilities manager: Finbarr Murray champions experience and professionalism 15 Five minutes with Anthony Mundy, facilities director, Ricoh Arena 46 No Two Days

MONITOR

28 | History of FM

16

Procurement roundtable: FM World and Supply Management host an open forum, bringing together FM and procurement professionals in one room

24

The generation gap: Recent research suggests that many experienced FMs will leave the profession within ten years, writes Nick Martindale

28

History of FM: In the latest in a series of exclusive interviews charting the development of the FM sector, Peter McLennan interviews Frank Duffy

32 Legal: Tony Thiaray stresses the importance of contractual clarity 33 Court report: Beverley Vara takes the legal view of interim rent 34 How To: John Dixon explains ethical, effective bird control 35 Standards: Stan Mitchell looks at the standards affecting FMs 36 Insight: Market intelligence

REGULARS 38 41 42 44

BIFM news Diary of events People & Jobs Appointments

COVER ILLUSTRATION: Natalie Wood

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Ideas for Change How great facilities management makes the difference 18 June 2012, The Royal College of Physicians, London ThinkFM is a day of learning, debate, interaction and networking.

Hubs include workplace, people, creating a competitive advantage in the current economic environment.

Focus on one hub or move across all three.

Book now and save at www.thinkfm.com The conference for facilities management professionals To sponsor ThinkFM contact neil.everitt@bifm.org.uk or call 0845 058 1356

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Redactive Publishing Ltd 17 Britton Street, London EC1M 5TP 020 7880 6200 www.fm-world.co.uk EDITORIAL Tel: 020 7880 6229 email: editorial@fm-world.co.uk editor: Martin Read ⁄ news editor: David Arminas ⁄ sub editor: James Richards assistant editor: Natalie Li ⁄ editorial support: Kamalpreet Badasha ⁄ art director: Mark Parry ⁄ art editor: Daniel Swainsbury picture editor: Sam Kesteven

MARTIN READ EDITOR COMMENT

LEADER

ADVERTISING AND MARKETING email: sales@fm-world.co.uk senior display sales executive: Adam Potter (020 7880 8543/6230) ⁄ recruitment sales executive: Carly Gregory PRODUCTION production manager: Jane Easterman production executive: Aysha Miah PUBLISHING publishing director: Steve Bagshaw Forward features lists and media pack available at www.fm-world.co.uk/about-us SUBSCRIPTIONS BIFM members with FM World subscription or delivery queries should call the BIFM’s membership department on 0845 0581358 FM World is sent to all members of the British Institute of Facilities Management and is available on subscription to nonmembers. Annual subscription rates are UK £110, rest of world £130. To subscribe call 020 8950 9117 or email fm@alliance-media. co.uk – alternatively, you can subscribe online at www.fm-world.co.uk/about-us/ subscribe/ To order the BIFM good practice guides or the FM World Buyers’ Guide to FM Services call Natalie Li on 020 7880 6229.

EDITORIAL ADVISORY BOARD Simon Ball, business development manager, Interserve ⁄Jason Choy, director, Persus⁄ Ismena Clout, energy consultant, powerPerfector ⁄ Nick Cook, managing director, Haywards ⁄ Robert Greenfield, group SHEQ director, GSH ⁄ Anne Lennox Martin, FM consultant ⁄ Peter McLennan, joint course director, MSc Facility Environment and Management, University College London ⁄ Lionel Prodgers, principal, Agents4RM ⁄ Chris Stoddart, general manager, Heron Tower ⁄ Jeremy Waud, managing director, Incentive FM ⁄ Jane Wiggins, FM Tutor and author ⁄ Chris Wood, senior associate at Advanced Workplace Associates

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by Redactive Publishing Ltd (RPL), 17 Britton St, London EC1M 5TP. This magazine aims to include a broad range of opinion about FM business and professional issues and articles do not necessarily reflect the views of the BIFM nor should such opinions be relied upon as statements of fact. All rights reserved. This publication may not be reproduced, transmitted or stored in any print or electronic format, including but not limited to any online service, any database or any part of the internet, or in any other format in whole or in part in any media whatsoever, without the prior written permission of the publisher. While all due care is taken in writing and producing this magazine, neither BIFM nor RPL accept any liability for the accuracy of the contents or any opinions expressed herein. Printed by Pensord ISSN 1743 8845

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ell, here’s a thing. It turns out that ‘children are the future’. I mean, what are we supposed to do? Younger versions of our current selves are simply going to rise up and take our place in the world. Isn’t someone going to do something about this?

As hackneyed phrases go, it’s an achingly obvious example that should be banned. The trouble is, ‘children are the future’ has an evil cousin – and it’s one of this sector’s very own stock phrases. Apparently, when it comes to FM, ‘it’s all about the people’.

Surely whatever ‘it’ is, it will pretty much always be about the people. FM teams, football teams, production lines, newsagents, nunneries, moon bases – when you’re seeking to establish how well any of these things are running, you will invariably end up realising that strategy, equipment, processes and systems are all secondary to the relationships and abilities of the people involved. In pretty much any sphere of human activity you can safely say that any determination of its success will be “all about the people”.

I mention this because our recent procurement roundtable saw plenty of people either skirting around or directly deploying the phrase. Understandably so, perhaps. While the process of determining and procuring the facilities management service can be hampered by the rigidity of the tendering process, true success in the delivery of such an all-encompassing and complex service requires an ability to be flexible, innovative and responsive. And that’s definitely ‘all about the people’: Firstly, in the relationships between the procurement team, facilities team, and in-house or outsourced facilities provider. Secondly in the relationships with those in finance, HR, IT and some annoying bloke called the ‘end-user’.

In theory, people who are truly flexible, innovative and responsive will work together to ensure that these relationships all work properly. Yet our round table provided further confirmation that this simply doesn’t happen often enough. Perhaps it’s because true flexibility from all the parties in such a complex service delivery requires a level of empathy for each other’s roles that goes far beyond most typical business relationships.

Can standards help? The BS11000 collaboration and BS8572 facilities service procurement standards were hardly the first thing on people’s minds at our event. In fact, there was some concern about the restrictive nature of working to such templates and the amount of admin they can impose. The case against posits that standards hem you in, strangling the very flexibility and responsiveness that successful FM delivery requires. Standards are designed to codify; to ensure that all bases are covered. By definition, a standard defines a standard approach. It could be argued that the more prescriptive a standard is, the less room is left for companies and individuals to differentiate themselves from one another.

Finding a way to be truly effective may simply mean the way we communicate within our organisations. So yes, great FM comes down to the people. And in truth I’m glad of that.

Because while ‘‘it’s all about the people” may be a horribly hackneyed phrase, it’s people that make facilities management such a fascinating profession. Long may that continue.

W

“TRUE FLEXIBILITY IN A COMPLEX SERVICE DELIVERY REQUIRES A LEVEL OF EMPATHY FOR EACH OTHER’S ROLES THAT GOES BEYOND MOST TYPICAL BUSINESS RELATIONSHIPS”

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OLYMPICS

DAVID ARMINAS newsdesk@fm-world.co.uk

G4S has gone on the offensive against what it has called a misrepresentation by the Public Accounts Committee (PAC) of its relationship with the London Organising Committee of the Olympic Games (LOCOG).

The PAC questioned whether the security contract with G4S was value for money for the taxpayer.

But a G4S spokesperson said the report was full of inaccurate assumptions.

“It is disappointing that the spirit of co-operation and openness demonstrated by LOCOG and G4S throughout the security workforce negotiations has been badly misrepresented by the PAC,” the spokesman said.

“We remain determined to help provide a safe and secure London 2012 Olympic and Paralympic Games.”

The £100 million deal, in which G4S was contracted to provide 10,000 security guards to patrol the inside the Olympics and Paralympics venues and in the Olympic Park, was announced with LOCOG in March last year.

The deal was finalised in December and in January G4S undertook what it called a major recruitment drive to hire the 10,000 security staff. The company set up a special recruitment centre in Newham, located close to the main Olympic Park.

The centre can process around 400 people a day and G4S said it had already received more than 20,000 applications.

But Margaret Hodge, chair of the PAC, said the committee was “particularly concerned” about 06 | 22 MARCH 2012 | FM WORLD

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the significant increases in the security bill.

“LOCOG now needs more than twice the number of security guards it originally estimated and the costs have roughly doubled.

It is staggering that the original estimates were so wrong.”

LOCOG’s original estimate for 10,000 security guards was a “finger-in-the-air estimate”, according to the PAC report.

Overall security costs from the Olympics budget have risen from £282 million to £553 million.

G4S was quick to reply, saying that the PAC report “has been prepared without consultation with G4S and sadly contains a number of inaccurate assumptions in relation to the costs and provision of the security workforce.”

G4S said that last August 2011, LOCOG “substantially increased its

LONDON 2012

G4S stands by Olympics security deal

LOCOG now needs twice the number of security guards estimated for Olympics

requirement, which resulted in a larger workforce being required”.

G4S submitted a revised proposal that was approved in December. “Our revised proposal has been subject to significant government scrutiny to ensure value for money,” said G4S. “We have been absolutely

transparent with LOCOG, the Home Office and all other stakeholders at all stages of the process for agreeing the increased security workforce requirements.”

The revised contract “offers significantly better terms to LOCOG and incentivises G4S to save money”.

ENERGY AND CLIMATE

Government consults on intensive energy use The government is calling on intensive energy users and trade bodies to help it target businesses likely to be affected by energy and climate-change policies.

Such policies may see average electricity prices paid by large, energy-intensive users surge to 28 per cent by 2020, according to a statement by the Department for Business, Innovation and Skills (Bis).

The government is asking companies and trade bodies to share information and data about their energy use. The information is being collected in support of

the Energy Intensive Industries (EII) Package.

The package aims to reduce the impact of energy and climate change policies on the cost of electricity for those energy intensive industries whose international competitiveness is most affected by them.

Once sufficient data is gathered, the government will formulate policy, consulting in September this year, for implementation in Spring 2013, subject to state aid rules.

“Businesses impacted by rising energy prices will have

the opportunity to provide information and data that will shape a £250 million government scheme aimed at alleviating their electricity bills,” according to the the Bis statement.

“The government is committed to ensuring that manufacturing is able to remain competitive during the shift to a low-carbon economy,” said Business Secretary Vince Cable.

Businesses that are interested in providing evidence are asked to visit the online resource: www. bis.gov.uk/carbon-price-floorcompensation. www.fm-world.co.uk

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Students favour fairtrade food

BRIEFS ThinkFM – Early-bird tickets ALAMY

Students may be price-conscious when buying food at university catering outlets, but they would consider paying a premium for fair-trade or free-range produce.

In the latest Sodexo University Lifestyle survey, just over 80 per cent of students said they try to eat healthily.

But more than 50 per cent have changed their eating habits because of financial pressures. Two-thirds of students admitted to eating less healthily.

The survey has been published every two years since 2004, in association with Times Higher Education magazine. It examines the student experience, from funding, to lifestyle and eating habits.

When buying food from a university catering outlet, price is the top consideration for 70 per cent of students. Of these students 94 per cent spend less than £5.

However, around half of the

NEWS

Moral meal: students will pay more for healthy and free-range foods

students said the origin or source of the food they are buying does influence what they buy. Nearly 60 per cent said they might or definitely would pay a premium price for goods that are fair trade or free-range.

Fifty-three per cent felt they might consider the higher price for locally sourced produce and 51 per cent for UK-sourced foods.

And 67 per cent of students cook their own dinner, with spaghetti Bolognese still the favourite dish.

WiFi access was viewed as essential by 77 per cent of students,

followed by 66 per cent stating a launderette and 65 per cent saying they wanted better shared social spaces.

However, other amenities were viewed as essential by just under half of the sample questioned, including en-suite bathrooms (45 per cent wanted them), cleaning services (which 39 per cent thought should be provided), and a gym (which a quarter of students required).

The 2012 survey is based on responses from 2,001 students from 139 universities.

PUBLIC SECTOR

The government has made good progress in reducing its office estate and saving money, but a slow market may hamper further savings this decade.

In its latest annual report on Whitehall’s office strategy, the National Audit Office praised the government’s results since 2004.

Whitehall has made around £100 million savings annually in running costs of the civil estate between 2004 and 2010, including offices, courts and laboratories, according to the NAO report, Improving the efficiency of Central Office Property.

The average amount of space per full-time employee has dropped from 17.1 square metres in 2004 to 13.2 square metres.

The target is eight square metres per employee up to 2020, this will www.fm-world.co.uk

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ISTOCK

Whitehall makes savings squeeze

Government slims its operation

mean reducing the size of the estate, a difficult task in a suppressed market, the NAO said.

If staff numbers fall as expected and space per person is reduced to 10 square metres, the government would release about two million square metres of office space.

“However, departments are finding it difficult to surrender

leasehold buildings before their leases expire, find private sector tenants to use their surplus space or dispose of freeholds,” according to the report.

This is because of the “weak commercial property market. As a result, the full potential £830 million savings are unlikely to be achieved before 2020.”

It is possible to exit surplus leasehold offices in advance of contracted dates and to sell or grant leases on freehold property.

“However, the market for office space is not currently strong and departments are finding it difficult to secure private buyers or tenants for their surplus space, especially outside London.”

As a result, departments often find it cheaper to leave such buildings empty.

This Friday 23 March is the deadline for ‘early bird’ discounts for this year’s ThinkFM conference, produced by the BIFM in association with Workplace Law. The event takes place on 18 June at The Royal College of Physicians, London. ThinkFM is a day of learning, debate, interaction and networking.

It’s open to all facilities management professionals. There are more than 30 sessions running in three hubs.

Speakers include Ruby McGregorSmith CBE from Mitie; Mark Bew MBE from the Government’s Industry BIM Working Group; Oliver Jones from Chayora; David Sharp from Workplace Law, and many more. Book now at www.thinkfm.com/booknow.

Change at the top for B&CE Brian Griffiths, chief executive of workplace pensions and benefits provider B&CE, will retire at the end of September. His replacement is Patrick Heath-Lay, B&CE’s director of finance and strategic delivery. Griffiths joined the company in 1985 and has recently overseen the launch of B&CE’s solution to automatic enrolment, the People’s Pension. The board said it undertook a thorough process of evaluating candidates to find a suitable successor.

VPS and SitexOrbis merger The Competition Commission (CC) is to investigate the acquisition by VPS Holdings of SitexOrbis Holdings, announced last September. The Office of Fair Trading (OFT) has referred the deal to the CC after an investigation concluded that the merger gave rise to competition concerns in supplying vacant property security services. The services involve securing vacant social housing and commercial properties with steel screens, doors and alarms.

Carillion FM head moves Commercial property and services adviser CBRE has appointed Peter Jones as head of the company’s facilities management division in Europe, Middle East and Africa (EMEA).

He held several senior roles at Carillon, including managing director for property services business and head of facilities services within the utilities, media and telecoms sectors.

In his earlier career, Peter worked for Barclays on FM strategy and at Johnson Controls where he delivered FM across EMEA. FM WORLD | 22 MARCH 2012 | 07

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PROJECT OF THE

FORTNIGHT NEWS BULLETIN

Institutes launches business ethics charter mark The building formerly known as Ashby House, before (left) and after the planned renovation (below)

The Institute of Business Ethics (IBE) and the Chartered Institute for Securities and Investment (CISI) are inviting organisations to join their new ethical business accreditation scheme.

The two non-profit bodies have set up the ‘Investing in Integrity’ process charter mark, whereby a company carries out a comprehensive on-line self- assessment of their ethical policies, procedures and practices.

An independent assessment will then be carried out by the GoodCorporation, a global auditor of corporate responsibility and business ethics. This involves site visits, staff interviews, an employee survey and reviews of documentation.

The mark is awarded for an initial five years. It can be openly displayed, subject to annual self-certification that there has been no material change in the subscriber’s ethical policies, procedures and practices.

Balfour Beatty and IMI Group are the first to submit to the process.

Firms wishing to join should contact Andrew Hall, CISI, at andrew.hall@ cisi.org or visit investinginintegrity.org.uk.

Asset Skills gets £1m for Green Deal training

ESA takes courage from a 1980s’ design Standard low-level office buildings can be well adapted to provide modern workplaces if a solid structural base is present, as one of the latest projects from architect and design consultancy ESA shows.

ESA has unveiled plans for the redevelopment of the former Courage Brewery headquarters on the River Thames in Staines, Middlesex.

The original building was built in 1989 and was known as Ashby House, after Thomas Ashby, a local brewer. It has a distinctive although dated three-storey pitched roofed and banded brick cladding.

But the building will be reconfigured to gain 1,860 square metres (20,000 square feet) of floor space, according to plans by ESA, which also designed the new offices of medical equipment supplier Stryker in Newbury, Berkshire (see feature in FM World, 8 March, 2012).

Refurbishment of the 5,575 square metre (60,000 square foot) former brewery and underground car park will mean stripping the entire building back to its concrete frame and waffle slabs.

Nic Sampson, design director at ESA, said the result “is effectively a newbuild, providing Grade-A office space in the heart of the town”.

Although a 1980s’ structure, the horizontal configuration of the building allows for an inspired modern design that eschews the popular ‘glass box’ approach to commercial office design.

The goal was to change the dated character of the building by removing the pitched roofs and the heavy brickwork. But the underlying structure, plinth and general massing allows for a good base to build upon.

The long, horizontal look of the refurbished building will fit in well with the riverside setting and also reduce the height of the building, which sits in a conservation area.

A tender for contractors will go out in the summer, with work expected to start on site in the autumn.

ESA, which was acquired by Capita Symonds last October, has offices in London, Hull and Poland.

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Asset Skills is to get £1 million of the £3.5 million that the government has earmarked for training Green Deal advisors.

Earlier this year, the government pledged the £3.5 million to the Green Deal Skills Alliance – made up of Asset Skills, SummitSkills and ConstructionSkills – to ensure a qualified advisor and insulation installer workforce is in place The Green Deal is the government’s flagship energy efficiency scheme aimed at renovating millions of draughty, energy-inefficient homes and office buildings across the UK. The scheme will begin later this year and will support an estimated 65,000 jobs by 2015.

Last March, the coalition government announced its intention to fund up 1,000 Green Deal installer apprenticeships, depending on demand.

For information, go to greendeal@assetskills.org or call 0845 678 2888.

The ‘Filling Station’ tweet has ’em rolling BBC staff in London are being entertained by a mystery Twitter account called The Killing Station, which parodies the broadcaster’s main cafeteria, called The Filling Station. The author is posing as the cafeteria manager and ridicules BBC staff for everything from their behaviour and eating habits to their dress, according to a report by the Daily Telegraph. Among those criticised are economics editor Stephanie Flanders, who has been accused of being a kleptomaniac, and veteran world affairs editor John Simpson, referred to as a drunken bore. One tweet said, “Just seen Huw Edwards getting curry and rice from @KillingStation – don’t be surprised if he doesn’t manage to present News at Ten.” The BBC has not attempted to track down the author who is believed to be a journalist, the Telegraph report said.

Integral takes on contracts from troubled Colston Integral has snapped up the South-Western and Eastern prime defence contracts from MJN Colston’s administrators.

The deal will save nearly 50 jobs in Bury St Edmunds and Bristol – home of Integral – following the collapse of MJN Colston.

Integral managing director Bryan Glastonbury, who had previously been an employee at mechanical and electrical contractor Colston, said he had been “extremely saddened to hear of MJN Colston going into administration, having been the MD of the business in the 80s and 90s, when it was extremely profitable”.

Privately-owned national property maintenance and building services business Integral has an annual turnover of £200 million and has more than 2,800 staff. www.fm-world.co.uk

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FM NEWS SIGN UP FOR FM WORLD DAILY AT FM-WORLD.CO.UK Formulate and introduce working models: 53%

THINK TANK

WE ASKED 100 FMS… What is the top characteristic of a ‘rising star’ in facilities management?

It appears to be horses-forcourses, in terms of your opinions on what constitutes a ‘rising star’ in facilities management, according to FM World’s Think Tank poll.

Much has to do with being the right person in the right job at the right time.

The organisation must be open to change and not fear it, while the FM must also be open to change and not fear it. But additionally, he or she must have the drive to move change forward – innovate, in other words.

More than half the respondents in the poll cited

the “ability to formulate and introduce innovative working models” as the key attribute that defines a rising star. The ability to innovate is, as one respondent said: “What makes rising stars stand out from us mere mortals.”

Nearly a quarter of respondents cited the ability to form a close working relationship as the number one attribute.

This ability, coupled with the ability to innovate, means the person can communicate their innovative ideas to others.

But apparently, the ability to manage budgets isn’t seen as being a particular requirement,

Ability to report upwards: 8% Ability to form close relationships: 22%

Ability to multi-task: 17% Ability to manage the budget: 0%

if you are on the way up.

However, several respondents made the point that each of the five characteristics are essential to some degree, or should be, for all FMs. “But rising stars should stand out from the rest of us and innovation, as well as progressive, challenging thinking, are excellent ways of identifying our industry’s

star thinkers and performers,” said a respondent said.

Age shouldn’t be a defining characteristic, said another respondent – whose age they did not reveal: “Many people join our profession later in their working lives and have a very good, successful second career.

There’s a lot of very good rising stars over the age of 40.”

JAMES WINSPEAR

Shine the spotlight on an FM ‘Rising Star’ Managers, front-line staff, academics and consultants are among the nominees received so far for FM World’s ‘Rising Stars’ – our search for the most dynamic new facilities managers in the country.

There may be no formal definition of ‘facilities management’, but there is no doubt about the attraction of the role to many enthusiastic, energetic and inquisitive people.

FM World believes these highly talented people should be recognised for their often unsung contribution to their organisation Nominations are being accepted until the end of April to find and bring into the spotlight these many talented managers who are making their mark.

Importantly, FM World’s Rising Stars search is not about a league table of who is the best of the best. Rather, all the rising stars will have been – and are – very successful in the tasks and roles www.fm-world.co.uk

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The class of 2006 (above) – six years ago, FM World’s ‘35 under 35’ competition was the first such event aimed at identifying the industry’s emerging talent

they have taken on, often at their own initiative.

The search – which will culminate in a major feature in FM World and an event at the Heron Tower in London – will focus on practising facilities managers, whether they are in-house or employed through an outsourced service provider.

There is no age limit on those that can be nominated and those

recognised will have shown the most innovation and initiative in the supply of facilities services.

Nominees will be judged by a panel comprising of the reigning BIFM facilities manager of the year Chris Stoddart, the editor of FM World Martin Read and members of the BIFM’s Rising FMs Sig. The remaining judges will be announced later this month.

The search is being sponsored

by Office Depot, a leading supplier of office products and solutions to the facilities sector.

To nominate an individual for Rising Star status, readers are invited to email editorial@ fm-world.co.uk with the name and details of the person they wish to put forward.

Nominations can come from colleagues, consultants or other people at the organisations for whom the individual has worked.

Those nominating will then be contacted to find out more about the candidate, including why they are so deserving of recognition, what kind of work they’ve done and any other projects in which they are or have been involved in.

So, look around you at the people you work with and in your wider network. Take note of the movers and shakers wherever they may be, and put them forward to be one of FM World’s Rising Stars.

FM WORLD | 22 MARCH 2012 | 09

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ANALYSIS

Police contracts to offer FM opportunities GRAEME DAVIES newsdesk@fm-world.co.uk

Barely a week goes by without another controversy blowing up around the creeping private sector involvement in public service provision. And with the squeeze on public sector budgets tightening further this year, it’s a topic that is unlikely to go away, as illustrated by the recent furore over private sector scope creep in policing.

True, the private sector has been active in providing ancillary services to the police for many years. The recent, highly publicised contract announced

by Lincolnshire Police with G4S, will see the security firm taking on extended back office duties and also building and running a new police station. So too, the tender released by the West Midlands and Surrey Police for a huge £1.5 billion contract to deliver services, which could include criminal investigations, street patrols and detaining of suspects, suggests far deeper and more public-facing involvement.

The surprising fact about the government’s austerity measures is that very few of the genuine budget cuts have

actually been enacted as yet and many will only work their way through the system in the coming months. And, for FM operators, this suggests new business prospects are likely to be positive in the coming months. Indeed, the recent financial results from the sector suggest the majority of players are sitting on impressive order books for the forthcoming 12 months.

In the case of the police, the government has slashed central funding by 20 per cent and as this works its way through the system, further and deeper outsourcing is expected. The private sector has long provided services to policing, but mainly in the back office where companies such as IBM and Cap Gemini are core contractors.

But the G4S deal with Lincolnshire broke this mould in that private sector staff will, in some cases, become the public interface for the police.

Contract wins

NEW BUSINESS H&J Martin Facilities Management has won a five-year contract with the Northern Ireland government agency Health & Social Care, Business Services Organisation, covering five sites around Belfast.

Cardiff Community Housing Association (CCHA) has appointed Lovell to provide reactive building repairs and electrical maintenance in a contract worth £5 million. The four-year deal for a 24-hour service covers 2,650 homes.

It also includes building fabric maintenance and drainage and electrical installations for occupied and void homes.

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BT has selected Mitie for a three-year contract to provide proactive mobile patrol services to 700 buildings in its UK property portfolio. Mitie will supply out-of-hours protection for the locations and the assets within them.

The contract, which was awarded following a competitive tender process, will also see Mitie providing a flexible service for site health-checks and key holding for BT’s estate.

GKN Aerospace has awarded OCS a facilities services contract worth more than £5 million. Under the five-year deal, OCS will provide cleaning services for office and industrial areas, reception

and vending services, along with logistics, loading and waste operations at GKN’s Filton and Western Approach sites in Bristol.

Anglo American, the diamonds-toiron-ore mining conglomerate, has awarded Anabas a three-year contract for FM services at its corporate head office in London. The contract went live in March 2012 and includes catering, cleaning, management of two corporate flats in Knightsbridge, security and planned and reactive maintenance.

Sodexo has signed a five-year, European facilities management contract with consumer goods giant Unilever. Under the £75-million-a-year contract, Sodexo will provide hard and soft FM services at 70 sites in 15 countries – Austria, Belgium, Denmark, Finland, France, Germany, the Netherlands, Italy, Ireland, Poland, Portugal, Spain, Sweden, Switzerland and the UK.

The proposed West Midlands and Surrey deal pushes the private sector even deeper into the police service, suggesting that private sector bidders can tender for all police services “that can legally be delegated” to the private sector. And the success, or failure, of this hefty contract could lead to a wave of further work from other police forces.

Opposing force Many senior police, including former Metropolitan Commissioner Sir Ian Blair, have hailed the outsourcing of more police duties as key to the police working more effectively within tighter budgetary confines. But the rank and file, represented by the Police Federation, have railed against the plans, as has the Labour opposition. Supporters point to outsourcing as being key to maintaining the frontline presence of the police and creating more efficient support by removing some of the mundane tasks that often fall to officers.

For FM operators, this represents yet another opportunity to establish a presence in a key public sector at a time when more outsourced work is coming down the line and the bidding for the West Midlands and Surrey contract is likely to be very keen indeed.

The arguments in favour of further outsourcing look solid enough, but, like the NHS before it, the subject of policing is an emotive one and the voices opposed to such moves are likely to remain loud.

Nonetheless, the reality of 20 per cent budget cuts is becoming ever more pressing, and once the floodgates have opened in terms of outsourced contracts, it is going to be very difficult to stem the flow.

Graeme Davies writes for Investors Chronicle

www.fm-world.co.uk

15/3/12 12:41:04

Serco has seen group revenue rise by 7.4 per cent to nearly £4.65 billion, for year-end December 31, 2011.

And pre-tax profits were £238.3 million, a rise of 11.4 per cent, according to its statement.

The results have been sustained by strong contract wins internationally as well as a move into the business processing outsourcing market, resulting in an order book of nearly £18 billion at December 31 2011.

Notable rebids, extensions and new contract awards included prisoner escort and custody services for London and the east

Rolled out: Serco will expand cycle hire scheme

ISTOCK

Overseas contracts boost Serco 2011 profits

BUSINESS BRIEFS of England – worth potentially £420 million over 10 years – and with HM Prison and Young Offenders Institution Doncaster, valued at around £250 million over 15 years.

Serco also estimates that London’s Barclays Cycle Hire scheme expansion will bring in around £50 million over four years.

Contracts with the US Air Force Space Command amounted to around $115 million and the US Army another $169 million.

Serco also has 92 per cent revenue visibility for 2012, 80 per cent for 2013 and 70 per cent for 2014.

And this month, the Ministry of Defence (MoD) chose Serco to run Defence Business Services (DBS), which provides security vetting, finance and more.

The four-year, £36 million contract – with a one-year extension option – is expected to be signed this month.

According to a statement, Serco’s leadership team will work with DBS staff “to transform the organisation into a lean and effective shared services centre, building on private sector best practice”.

DBS will remain part of the MoD with staff still employed by it under the same terms and conditions.

Interserve reports buoyant trading Interserve has reported a 4.7 per cent rise in profit before tax – although gross revenue remained almost level for yearend December 31 2011.

Profit before tax was reported as £67.1 million (2010: £64.1 million) on revenues up only 0.2 per cent to £2.32 billion (2010: £2.32 billion).

The support services division reported UK revenue of £1 billion, down 1.7 per cent on last year’s nearly £1.03 billion.

But revenue from international support services rose 9.3 per cent to nearly £26 million (2010: £23.7 million).

UK support services contributed £36.4 million (2010: £25.1 million) to total operating www.fm-world.co.uk

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Interserve CEO Adrian Ringrose

profit, up 45 per cent from last year. International support services contributed £3.6 million (2010: £3.4 million) to total operating profit, a rise of nearly 6 per cent.

According to Interserve’s

statement, “Operational efficiencies in support services delivered a further significant improvement in contribution to total operating profit, despite flat revenue.”

UK operating margins were up 1.2 per cent, thanks to the integration of the group’s security operation into its commercial business, a move that saved costs.

“We have continued to make significant improvements to procurement,” said the report.

Chief executive Adrian Ringrose said Interserve has made significant improvements to procurement and further developed systems and procedures to increase productivity across major contracts.

G4S acquires Chubb G4S Secure Solutions UK has bought Chubb Emergency Response, a provider of holding and mobile response services, from UTC Fire & Security for £17 million.

Dutch and Arcadis go up Net revenue for Dutch international environmental and building services consultancy Arcadis rose 5 per cent for yearend 31 December 2011. Revenue was £1.22 billion, up from nearly £1.16 billion for year-end 2010, according to a company statement. Earnings before the deduction of interest, tax and amortisation costs (EBITA) were up 6 per cent to nearly £120 million (2010: £115 million).

RFM acquires Greenwood RFM Group has acquired Yorkshire-based Greenwood Estates and Property Maintenance. Greenwoods, with a turnover of £500,000, provides services to the Yorkshire commercial property sector.

RFM’s client base will now include property agents such as Dacres Commercial, Savills and CBRE. Greenwoods will retain its name.

OCS buys Don Thaker OCS Group has bought Singaporebased cleaning business Don Thaker Group (DTG) as part of a major £40 million expansion plan. DTG, founded in 1992, specialises in aircraft cabin cleaning and related services. Major clients include airport services management companies. Singapore Airport Terminal Services and Asia-Pacific Star. OCS will build on DTG’s portfolio at Changi Airport, developing this as its new regional hub for aviation-related support and maintenance service.

FM WORLD | 22 MARCH 2012 | 11

15/3/12 12:41:18

FM BUSINESS IN FOCUS

THE ISSUE Emerging models in public sector outsourcing

THE INTERVIEWEE Peter Hawes, managing director, Norse

When public goes private Local authorities are under pressure to save around 26 per cent of their budgets over the next three years, thanks to Whitehall’s Comprehensive Spending Review.

How to do it is a pressing issue.

Many councillors are considering outsourcing on a scale never imagined, including shared services where councils group together to outsource common support services.

Competition among suppliers is intensifying for all types of contracts, from single and bundled deals to more complex total FM. But amid the increasing scramble, there remains a big political concern for local authorities. What will happen to the public sector ethos of commitment to serving the community? Will the supplier understand it, let alone commit to it?

Peter Hawes, managing director of Norse Commercial Services is confident that the Norse model of outsourced provider understands it.

And has done so for 24 years.

Clients include the NHS, MoD, the emergency services (firerescue-police), local authorities and private sector organisations “The public sector has not been good at empowering employees to make decisions,” he says. “It also cannot invest as heavily as the private sector in IT and other systems. This inhibits the creativity of employees.”

The Norse model frees up that public sector talent in a commercial environment that remains, by virtue of Norfolk County Council (NCC) being the owner, tempered 12 | 22 MARCH 2012 | FM WORLD

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by a public sector ethos, he says.

The business, created as wholly owned private FM company by NCC in 1988, had revenue in 2010/11 of around £200 million.

Profit was £5.5 million.

Despite a tough market, Norse remains “cash-positive” – it has no debt – and is “a business that’s in the right place at the right time. It’s been a hugely successful year for us.”

Other local authorities have created standalone companies, but many are for their own services.

Norse, he says, has a long, external trading history that allows it to qualify for tender lists.

Hawes, 61, studied engineering at his local Norwich technical college and then worked for private businesses. In the late 1980s, he joined NCC to work on production engineering management during a time when councils were having to outsource under the Conservative’s controversial compulsive competitive tendering procurement model.

Hawes jumped at the chance to move to Norse when NCC created the company. The Norse model “marries public sector ethos with private sector commercial acumen”, he said.

When Norse Group wins a contract, it forms a partnership company with the local authority.

Council employees are moved over under TUPE and profits are shared with the council.

Norse itself is such an animal.

With a £100,000 investment from NCC – paid back within the first three years – NCC created

the standalone Norfolk County Services, which rebranded in 2009 as Norse Group.

It employs around 10,000 people within three main divisions – FM provider Norse Commercial Services, NPS Property Consultants and care provider NorseCare.

As part of the Land Group consortium, Norse provides FM for several new and refurbished Suffolk fire and rescue stations under a private finance initiative (PFI) deal.

Within the old Building Schools for the Future programme, Norse is part of the May Gurney consortium that won a North Lincolnshire Council contract for new and refurbished schools.

Norse Group is on schedule to meet its revenue target for the first year of a five-year plan to boost sales to £300 million.

Figures for the immediate past year, 2011/12, are due in June.

However, estimated revenue for the full-year 1 February 2011 to 31 January 2012 will be £220 million.

The 10 per cent annual increase is, says Hawes, “quite modest”.

David Arminas is FM World’s news editor

THE MODEL LOCAL AUTHORITY PARTNERSHIPS Jointly owned public-private operating subsidiary replaces traditional client-contractor relationships BUILDING SCHOOLS FOR THE FUTURE/PFI Norse piggybacks into major contracts by working with or joining consortia bidding for long-term projects HEALTHCARE FM Norse works with primary care trusts and the NHS delivering services to health centres and more complex sites, including clinics, community hospitals, labs and academies

“WHEN NORSE GROUP WINS A CONTRACT, IT FORMS A PARTNERSHIP” www.fm-world.co.uk

15/3/12 14:46:07

Citrus and dill cured sea trout with crispy scallop, orange and fennel

BECAUSE THE WHOLE EXPERIENCE MATTERS At Elior, our chefs have a real passion for creating delicious food. We also make sure it is served by people who genuinely care about great customer satisfaction.

Launceston lamb three ways with “cabbage and bacon” and thyme baked beets

That is why we are delighted to be recognised for our exceptional food, winning gold and overall best team in this year’s La Parade des Chefs at the world renowned Hotelympia culinary competition.

In Elior our clients find a partner they can trust to take care of the people who matter most to them.

To find out more visit www.elior.co.uk or email @elior.com carl.morris@elior.com

Warm sticky date pudding and salted peanut ice cream

Groves, Hayden , e gs, w ro ark C drew Big lior - M an Hodges, An E m a e T Ry oyner, Malins Peter J field, & Jack s n Ben Ma

FMW.22.03.12.013.indd 1

14/3/12 16:14:49

FM OPINION THE DIARY COLUMN FINBARR MURRAY

“THAT COURSE COULD GIVE YOU A BETTER SALARY, THE NEXT PROMOTION OR A BETTER SENSE OF YOUR OWN KNOWLEDGE”

Finbarr Murray is head of FM at Croydon Council

DO QUALIF ICAT I O N S M A K E A DI FFER EN CE?

xperience and professionalism take precedence over formal credentials in being a successful facilities manager, says Finbarr Murray

E

I’ve been advertising some FM vacancies recently and found myself pausing at the question, “essential qualifications needed to do the job”. I paused because, realistically, I couldn’t remember the last time I was called upon to use a qualification that I had obtained.

This made me wonder whether, in asking for a particular qualification, I was going through the motions of asking or really using the person’s ability to obtain the qualification as a judge of their ability to do the job.

Many of us have ended up doing the FM role, especially those of us who started doing FM before it was even called facilities

management, through fairly well trodden routes, coming from the practical side in the armed forces, or project management in construction. It’s usually one route or the other (seldom a mix of both). Some of us have come from roles more focused on people and customers such as office management, the hotel industry or retail, and quite a few of us as a result end up doing the job without having an initial FM qualification.

Now, I know that many roles within the sector do require more formal qualifications. No one is going to hire an M&E engineer without ticking the box with an essential qualification in

engineering, but for the general facilities manager is it really adding value, is it really being called upon on a daily basis, is it really important to be able to call upon a certificate, degree or post graduate qualification in FM? Maybe it’s about looking at this in a different way, perhaps even, dare I say, ‘keeping up with the Joneses’ – the Joneses in our case being those professions that appear to need their qualifications on a daily basis: the architects, surveyors, accountants and engineers, all for whom “essential qualifications needed to do the job” is a given.

For me it’s not about keeping up with these professions at all. We are, after all, none of these things. However, we do, in reality, need to have a bit of all of them. For me, it’s all about professionalism and being able to demonstrate that, in obtaining formal qualifications in facilities, you’re not just

storing up useful knowledge to be called upon in the future, but more importantly, you’re clearly demonstrating discipline, motivation, a desire to learn and continue to learn, build and foster relationships and most important of all, a commitment to your profession and the professionalism of it.

So if you’re thinking about joining that course, I’d say go for it. Yes, it may not be necessary on a day-to-day basis. Yes, for employers it’s probably not essential, if you can demonstrate the hands on experience. But as evidence suggests, it could get you a better salary, the next promotion, or a better sense of your own knowledge.

Or maybe, as in my own case, it will allow you to say, not only have I the experience of working in FM for all these years, but I’ve also taken the time to obtain a qualification to back it up. FM

BEST OF THE WEB Views and comments from across the web ThinkFMbyBIFM: At #ThinkFM you create your agenda from four hubs. 30 sessions from a great line up of expert speakers t.co/5L3qIi18 Martin Pickard, managing director FM Guru: Cleaning should rank among the highest of priorities for every facility manager.

14 | 22 MARCH 2012 | FM WORLD

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“Every building of any kind, in any sector needs to be properly cleaned for hygiene and safety reasons and to preserve asset value but, often of more importance, for the message that it sends.” tinyurl.com/FMW2203-1 BIFM Linkedin group: What do you do in EXACTLY seven words?

R. Daniel Davies – “Take

the mystery out of managing water.”

Engin Tasdelen – “Manage infrastructure, enabling better core business delivery.”

Oliver Canty – “Help reduce absenteeism through providing great solutions.”

Simon Macfarlane – “Inspire workplaces through the magic of food.”

Chad Coombes – “Drawings and surveys to help save money.”

Richard Swire – “I perform miracles for clients every day.”

Dave Wilson – “We help make organisations more productive.”

Robert Ratcliffe – “Deliver FM support services to support academic excellence.”

Alberto Vailati – “I help

my colleagues to work better!”

Dave Thomas – “Helping you do what you do best.”

Jason Gurd – “Provide the venue for our company mission.”

Ian Moore – “Inspire leadership for others to work efficiently.”

John Stephens – “Exceed my company’s and customers expectations daily.” www.fm-world.co.uk

15/3/12 18:26:33

You can follow us at twitter.com/FM_World facebook.com/FMWorldMagazine

BEST OF THE

FMWORLD BLOGS The times they are a changin’ John Bowen, chair of the BIFM’s procurement Sig Change is with us all of the time. Before I finish the first draft of these words the sun will have almost set on Wiltshire as another day spins to a close. The world has moved on and tomorrow will bring another day.

We don’t all take kindly to change though, for it brings new things and takes away those that we are familiar and comfortable with. That new day tomorrow could bring all sorts of things; some will excite and delight us, some will challenge or scare us and we never quite know what is around that next corner.

It’s easy to see why we often have a natural resistance to change because most of us like the familiar and comfortable and it is only when we get bored with that that we want to change. Then we get the buzz of something exciting as we plan redecorating the room, moving house, buying a car or whatever. These are changes that we enjoy.

Other change is less welcome, especially that which is forced upon us, but change will happen whether we like it or not and so we have to learn to deal with it. Life isn’t fair and never will be, no matter how much we try to make it so because we know from the world around us that it is those that can adapt best to change that survive and thrive; anyone seen a Pterodactyl around lately, or maybe a Dodo?

As the big 60 looms for me, there are times when I feel I would be happier back in the 1960s. But why? When I really think about it, what was so attractive about that decade that took me from 8 to 17? It isn’t so much the comforts of not having responsibilities and carefree youth; no, it’s about how exiting those times were for someone of my age and the reason for all that excitement was that there was so much changing all around me and within me. My fondness for those times comes from memories of all of that excitement and change.

Maybe that is why I became such an enthusiast for change, although I was in my forties before I realised that I was an incurable change junkie. But it was that I had become able to make change happen that cemented the package for gradually I had got into positions at work where I could do things and that was due to people working on me and putting their faith in me.

One of the standard things that we do when developing people is to take them out of their comfort zone. Done well, that can be a powerful tool to help bring on the next generation of leaders and we need to have people who can embrace and thrive on change if we are to take business and society forward. I was lucky to find myself with people who helped me, saw that there was some spark, provided the fuel and fanned until the flame burst into life.

One of my projects is a procurement transformation where I am working in a team that includes people the same age of one of my grandchildren. It is a fantastic stimulus to be able to bounce ideas around and spark off each other because, even at my age, there is still so much to learn and do. The baton is passing on to new generations, but that is how it has to be.

To quote a line from my own youth, “the times, they are a changin’.” They always will.

More blog pages: David Burrows on the role food has to play in performance at work foodservicefootprint.com/news/latest/what-food-are-we-in-the-mood-for

www.fm-world.co.uk

14_15_Opinion.sr.indd 13

FIVE MINUTES WITH NAME: Anthony Mundy JOB TITLE: Facilities director COMPANY: Ricoh Arena

We’re hosting 12 Olympic football tournament games on eight days in the summer. The most difficult thing is de-branding. During the games the Ricoh Arena will be known as the City of Coventry Stadium. Across the whole stadium, a huge number of tenants and sponsors have had to agree to their branding being covered for duration of the games.

And it’s not as straightforward as simply covering up the signs. We’re having to cover the sign on the stadium roof.

The security overlay is very different. We normally steward from a crowd safety perspective, but for the Olympic football tournament the security element is different because it’s more terrorism focused. Everyone coming will get a full security pat-down. That’s usually profile-based.

We’re not used to having the world’s media.

There’ll be 500 for each match and that requires a huge amount of technical overlay, which is being installed as we speak. We’re putting a lot of temporary cables into the stadium, and where we can we’ll leave those in.

We’ve undertaken two cap-ex projects, one for our existing footbridge and another for a new staircase from the main exit to the underpass. Both funded by the Olympic Delivery authority.

In terms of planning, it’s not just about the stadium. Warwick University is hosting a training ground and local hotels have been procured for teams and officials. We report into the project team at Coventry City Council: trains, taxis, residents, bus drivers, all have to be informed. We sit on the project board meeting on monthly basis.

I went on an observer programme to New Zealand for the Rugby World Cup where I saw nine stadiums. They required something very similar to the Olympics.

FM WORLD | 22 MARCH 2012 | 15

15/3/12 18:27:21

FM FEATURE ROUNDTABLE PROCUREMENT

In association with

ATTENDEES

Martyn Sherrington (SGP Property and Facilities Management)

John Bowen (Gulfhaven)

Andy Quinn (SCEE)

Andrew Turner (UK Power Networks) Jason Cousins (Olswang LLP)

Peter Titus (DCT Facilities Management)

Lucy Jeynes (Larch Consulting)

Emily Hill (Dixons Retail)

Jeremy Waud (Incentive FM)

Mark Hurst (Office Depot)

Matthew Smith (Office Depot)

Susan Scott-Parker (Employers’ Forum on Disability)

Steve Bagshaw (Supply Management and FM World)

Les O’Gorman (UCB)

16 | 22 MARCH 2012 | FM WORLD

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BUYERS? BEWARE FM has not always seen eye-to-eye with procurement.

A recent roundtable sought to establish how the two departments could work together more effectively Involving procurement during the FM contract lifecycle Les O’Gorman: The key is to involve procurement early on as a business partner. In one of my previous organisations, we involved procurement in our routine service partner meetings.

They would come along, hear how the contracts were performing and talk about scope variation issues and KPI challenges, etc.. Involving them in that process is critical,

because when you come to write your specification and scope you have a procurement person who is warmed up, who knows what you are trying to deliver and understands where the current contract perhaps doesn’t work well or could work better. Don’t involve them just at contract renewal or re-tender – involve them all of the time.

Emily Hill: We also used to just bring procurement in at bid stage, but having looked at FM over the www.fm-world.co.uk

15/3/12 18:44:11

ROUNDTABLE

STARTING POINTS Martyn Sherrington heads procurement for SGP. Starting point: Both sides need to talk more.

John Bowen, commercial consultant, Gulfhaven.

SP: Respect what both parties can bring.

Andrew Turner, buyer UK Power Networks. SP: planning is fundamental.

Andy Quinn, director of purchasing and facilities, Sony Computer Entertainment Europe.

SP:: We need more of a combined structure.

Peter Titus, director, DCT Facilities Management.

SP: Listen more and get the specification clearer.

Lucy Jeynes, Larch consultancy. SP: Buyers must appreciate that FM is not a commodity.

Mark Hurst, director, FM sales, Office Depot.

SP: understand full spec needs from the onset.

Susan Scott-Parker, Employers’ Forum on Disability. SP: Understand the human better.

Les O’Gorman, head of facilities, UCB Celltech.

SP: Involve procurement colleagues more routinely.

PHOTOGRAPHY: SAM KESTEVEN

past few years, we’ve built in continuous improvement through periodic workshops where we look at the data to see whether we have the balance right. Unless you understand the root cause of why something is happening, you won’t get to an improvement stage.

Lucy Jeynes: We’ve seen situations where procurement is involved at the start, but then contact and management of the contract is then split out with procurement only becoming involved again when there is a contractual problem. Procurement becomes divorced from the dayto-day operation of the contract, so that next time it’s up for tender www.fm-world.co.uk

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they don’t really know how it went this time around. Often an organisation that isn’t happy with how the service has turned out goes back to tender with pretty much the same sort of document set and process it had last time.

The way tender documents are constructed can constrain service providers. The purpose of the process is to enable the market to demonstrate its best offer, but sometimes that can get lost. It is difficult for the selling side of the table to put its best business case across when it can only answer the questions in the tender document. It doesn’t have an opening to say: “This is why you should choose us. This is why we are different”.

Andy Quinn: But the nature of procurement is changing. We’re seeing a more strategic theme with category management dedicated to property and facilities, having regular meetings, planning ahead and being involved in meetings. This helps to keep track of any issues with the specification and how to you get continuous improvement and value from the suppliers.

Hopefully procurement has gone into that change quite a lot over the past few years, and should now be starting to deliver.

Jeremy Waud: Some procurement professionals can be extremely good at buying the wrong thing. Take an organisation

Jason Cousins, facilities director, Olswang.

SP: More trusting relationship required.

Emily Hill, Dixons Retail, SP: We need more data driven analysis.

Jeremy Waud, MD, Incentive FM Group.

SP: Often procurement does not have the experience to buy FM. Matthew Smith, head of procurement for trade and non-trade at Office Depot.. SP: Shared understanding and goal alignment.

that’s buying cleaning, catering, security and M&E. Procurement typically gets involved when these contracts come up for their three-year term. They’ll automatically start looking for a better deal rather than saying, “Wwhat is our strategy? Is this the right way of procuring these services?”

The strategy should be: “Which things do we want to do in-house? Which do we want to outsource? Of the things we want to outsource, what’s the best way of bundling them, if at all, to get best value?”

There isn’t a right or a wrong answer to that; it’s a cultural, strategic discussion. Once you’ve done that you say, ‘what are our FM WORLD | 22 MARCH 2012 | 17

15/3/12 18:45:34

FM FEATURE ROUNDTABLE PROCUREMENT

corporate objectives, and does this achieve them?’ There’s an awful lot of work to be done there. Once you have all that straight, you can then say: “We know what we want; how are we going to get it?”

The relationship with the procurement department LO’G: Because procurement is often part of the finance division it often has a global reach that facilities doesn’t. So you can end up with a global procurement deal landing on your desk as a client FM in the UK that you have had no input into at all. A lesson we’ve learnt from our procurement colleagues is an awareness of that global, national or regional picture.

A skip-hire firm that gives you a good deal in London may be the wrong company to provide the same in Scotland. Sometimes, procurement don’t see that. We have to do better in FM at getting that message across.

Martyn Sherrington: Doesn’t that go back to procurement’s remit? If you have an organisation with one buyer, that one buyer is not going to be expert in everything.

JW: There’s no reason why an internal procurement team can’t 18 | 22 MARCH 2012 | FM WORLD

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In association with

work with the internal property and facilities team, and bring some external expertise and skill to the table.

Jason Cousins: We have cross-functional teams that take regular meetings with property and facilities. But it’s not just about that, it’s also about having finance and HR involved, having that strategy in place. Property and FM has the relative luxury of quite long-term contracts because we are tied to long-term leases for buildings. It’s just being able to have time to test assumptions. Is it better to renegotiate the contract, or are there better offerings in the market? If you have that built in advance, it addresses a lot of the issues.

LJ: One of the issues is that a lot of FM service bundles are quite complex. They involve lots of things that are quite complicated to understand if you don’t routinely buy these services, such as the way prices are constructed. There may be a number in the bottom right-hand corner, but there might be call-outs, parts, spares, a mark-up on projects, the cost of a specialist sub-contractor.

Sometimes the amount you end up paying is far removed from the amount in the contract bid.

From an FM and procurement perspective, it’s important to

“I DON’T GET WHY THINGS AREN’T GREAT, BECAUSE WE ALL SEEM VERY ALIGNED” MARTYN SHERRINGTON

develop an understanding of what it is really going to cost to have that service. Also really important is what constitutes a realistic market price for that service. If people are coming in at below market rate, either they are going to struggle to deliver on the contract or they are going to be looking to make up on the extras.

John Bowen: A buyer may not be an expert in everything being bought, but they are an expert in buying. That’s one of the things they can bring to the table on this.

A lot of what is being discussed is

about price at the point of placing the contract, not about the whole life of the contract, which is the key thing.

The other issue is the way the world will have changed in the three years of the contract. If you are going out to contract now you are going to be looking at things historically – what you’ve done, how things have performed, what the KPIs have been; everything you are looking at is behind you.

But where are you going? How much of that do you really know?

A lot of what we are trying to do is to bring in flexibility around www.fm-world.co.uk

15/3/12 18:45:51

ROUNDTABLE

Get the spec right, then you know what you are doing and hopefully a lot of these issues won’t come up. If you build the right team, you won’t be arguing about who owns this because it should be one team, one vision – the head of FM and their supply chain, be it in-house or outsourced, self-delivered – they have to deal with that problem.

AT: There’s also the competency of the selected contractor to consider. Where both the FM and procurement communities can really help each other is in using their extensive networks – benchmarking clubs, BIFM forums, LinkedIn, whatever it might be. You have to ask your network: “Does this product work?” You’ll very quickly get good feedback to say: “It will work, but make sure you address such and such issue.” We have to use our business networks more effectively to make sensible choices. contracts so that you can change things. The point about suppliers and prices is vital; you need your suppliers to be profitable. What are you going to do if they fail?

Steve Bagshaw: Andy, you are director of purchasing and facilities, so you wear both hats.

What’s your view?

AQ: I agree that you want to be aware of where your business is going and what your priorities are. It depends on the structure of your business. It is going to be different for everyone, but provided you can be professional, versatile, flexible – all those attributes that make you a valued partner, whoever you are talking to in the business – it will be good.

In FM, there’s a huge amount of visibility of service. Value is really important. People have spoken about advice, service, quality, but it has to be value driven, and that www.fm-world.co.uk

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value is all about your people. Do you have the right people in the right place to deliver your business objectives? Do you have the right processes in place for those people to deliver value?

Susan Scott-Parker: If an aim is to enhance productivity for employees, then a service provider may need to adapt the workspace for a person, the client may need to shift the IT and yet another company may be contracted to do the shifting. They can struggle to get a speedy and efficient response through that chain. How do you fix that?

L’OG: It comes back to communication and planning; communicating and regular meetings are really important.

SSP: It may not be clear who is responsible for delivery of that change quickly.

LO’G: The client has to own that issue. Service providers are going to be between a rock and a hard place, either going out on a limb and spending a lot of money modifying a workstation or whatever and risking the client not refunding that money.

That’s effectively a workplace change or a small project or minor works. The specification should be flexible to allow for additional works outside of the specification that can be treated as a separate project, discrete from the service.

The facilities department’s role in determining FM value PT: The FM should take the lead in all these things, engaging with every stakeholder be it HR, IT, the managing partner, whoever, to get that specification right. What is it we’re procuring? How long is it going to last? What is your input?

Martyn Sherrington: It goes back to the relationship you have with your supplier. If you have an adversarial relationship because the buyer has beaten them down on price in the first place, the supplier is going to be looking for ways of making their margins up.

If you set it up so that they can make money, they’ll be there for the long term and more receptive to talking to you and coming up with ideas that can help both parties.

JC: We’re hearing the words process, cost and price an awful lot. What I’m not hearing is ‘value, customer, flexibility, evolution’ – which brings us back to understanding the structure. I’m keen to understand things from a layman’s perspective – is our core focus always meant to be on process, cost and price, or should it be on those other things?

FM WORLD | 22 MARCH 2012 | 19

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FMW.22.03.12.020.indd 1

8/3/12 16:01:53

ROUNDTABLE

In association with

“SOME PROCUREMENT PROFESSIONALS CAN BE EXTREMELY GOOD AT BUYING THE WRONG THING” JEREMY WAUD

EH: Definitely value. The FM supplier has to demonstrate where it is providing value. A key area for us is cleaning, because we have a lot of stores. We found that our FM provider wasn’t driving value on that, so we removed that service and went direct with a cleaning company so that we could control it.

it is you are trying to achieve through the process, setting and managing expectations throughout the process and checking them to make sure you are on the right track because during the process they may have all changed. What is good right now may not be necessarily good in the future.

MS: Then how do you establish what value is from the onset? How do you picture what value means to the customer? How do we get to that point?

EH: Value to us is making sure that our store is cleaned to the specification we have given and making sure that relevant audit checking is carried out. If the FM provider is literally sitting there taking on a few million pounds, extra revenue, as such with some profits in there, but are not doing anything else other than that, then that is not value to us.

MS: Do you talk to your retail customers?

EH: Yes, we carry out surveys.

That data is key because otherwise you get emotional. What you end up with is the “he said/she said” situation: it gets emotional if there’s no data there.

JB: Value comes from delivering what the organisation wants and that varies from organisation to organisation. In a lot of cases, the organisation isn’t communicating that to its end-users or customers, so you find yourself as a service provider trying to deliver something people don’t want, so the client hates you.

Where I have had the influence in big companies, I try to close that loop, to make sure that people do understand. Everybody in the organisation should know where it is going and why it all works that way and why it is that yes, www.fm-world.co.uk

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you get that pen. That is the pen that you get; you don’t get other ones. Those sorts of issues. It is the silly things. I liken it to having a handful of sand in the gearbox; one grain won’t ruin your gearbox, but a handful will over time. It’s those minor irritants.

LO’G: To me, ‘value’ is doing what is expected and doing it well; ‘added-value’ is the differential between a good service partner and one you don’t get on with, and that comes through innovation. That’s where regular dialogue through the life of the contract allows you opportunities to say: “This spec is wrong. We’re hitting our KPIs, but customer satisfaction levels are low. We should review this.”

The other thing we haven’t mentioned yet is partnering.

BS11000 is a mechanism for managing a relationship and a contract relationship from beginning to end; from starting work together right through to changes in the contract, to the exit phase. It lays down the simple things you should be doing: regular reviews and the sharing of data and information. Most British standards are not rocket science and this is the same, but it is a very good document. The thing that’s impressed me most about

BS11000 is the very adult bit, the ‘exit phase’, which says: “Our relationship at some point will end, so let’s plan for it now and make sure we agree up front what that will look like.”

Involving procurement in the day-to-day management of FM contracts JW: Buying service-related activities is completely different to physical objects. Most buyers could buy pens competently. Give the same buyers the task of buying a cleaning and catering contract, and chances are they wouldn’t know where to start because the complexities are massive.

MS: Identifying the specs up front, understanding who your stakeholders are, marketresearching suppliers, creating a balanced scorecard to assure some objective assessment – these are all things that apply whether it’s services or a commodity. The processes and mind-set should be the same.

MS: If you know what you want, it is relatively easy to wrap a process around it, whether it’s a pen, a cleaning contract or a new car. It’s about understanding what

EH: Performance measures are key. We have two key measures so that we can say: “This is what good looks like” from the outset. We had our own performance metric called ‘right first time’. And when we looked at it, no-one was using this particular measurement.

‘Right first time’ meant arriving within the SLA, fixing the job within 24 hours, and then there being no repeat failure within three months.

The second performance measure is on our reactive budget.

We have a target that is clear.

It’s an understanding between the organisations of what ‘good’ looks like, and possibly that’s been missing from some conversations.

Andrew Turner: The key is to have technical involvement in developing the specification from property and facilities, but also there’s the nature of procurement, ensuring that it takes the view from the whole organisation. It’s a sharing of best practice, so that you deliver what the requirement is, but are also not afraid to challenge the market.

We’ve talked a lot about values, but for a lot of businesses the key emphasis is cost and that’s often coming from the CEOs. While they like value and want that, that’s not going to get them a profit. Satisfying the day-to-day needs of your internal customers, as well as the board – that’s the hard bit.

LJ: There is an issue about how we start off in these contracts; there’s this great optimism and a FM WORLD | 22 MARCH 2012 | 21

15/3/12 18:46:48

FM FEATURE ROUNDTABLE PROCUREMENT

In association with

engagement. How many of you look for that kind of value data?

EH: You have to understand the root cause first.

SSP: If this is what they are saying is the value of an improved supply chain operation, that is how they are defining it. They have cut the cost of their chairs from £900 to £400, but they’re not interested in the cost. The reason they have those chairs is to enhance productivity. It is the end-user being the human beings in these buildings and collecting that kind of data we think is quite exciting and helpful. Do you [Emily Hill] collect that kind of data? honeymoon period in which it is all lovely, but we reckon that about 85 per cent of contracts aren’t renewed a second time with the same provider so there is a high level of dissatisfaction.

What you tend to find is you don’t get epic contractual failures.

When there’s some massive incident, that’s when everyone works really well together; it brings out the best in everybody.

But an FM contract is a bit like a marriage – it’s the equivalent of leaving the tube off the toothpaste and the toilet seat up, a series of small under-performances, over and over again, that undermine the relationship.

These issues don’t necessarily bust any of the SLAs, but they annoy you over an extended period. Very often that isn’t dealt with contractually, because it’s never a single incident that would merit a termination of the contract.

Peter Titus: How much of that is due to the FM being weak and waiting for things to end before saying: “I’ve had enough, here is a break clause, I’ll go and buy from someone else”?

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quite trivial, otherwise they’d have terminated the contract for performance.

LJ: Few FM contracts are terminated for poor performance; people tend to struggle on until the end.

AQ: It’s down to developing a relationship of trust and then being able to make sure that you are meeting these people regularly so they know what they are supposed to be delivering, because it is very difficult to get a complete specification.

There are different ways of doing that. The technical specifications, where you have absolutely everything you wanted there and then the buyer saying: “You didn’t include that, so I’m going to charge extra”, or a performance specification that says: “In this specification we are going to say we are going to work together and be flexible, create value, deliver what we are trying to do, keeping our clients and customers happy.”

But that takes time to develop.

The other way of solving a performance issue is to write into every contract that it is only ever three months old,

so that you continue to deliver and so you know that at any time, for any reason, it is only three months.

SSP: I am interested in this word ‘value’ that keeps popping up.

I’ve been watching one major banking company as it’s re-engineered its in-house supply chain, making adjustments for its employees. But of course they are using a lot of external suppliers in the process. The value that they are documenting, I wonder if it wouldn’t be helpful to collect it more routinely?

They’re seeing a 10 per cent improvement in productivity, sickness levels dropping, a 50 per cent cut in employees taking them to tribunal and a general sense of improvement of employee

EH: Yes, we are doing something on absence at the moment.

Productivity and time and motion studies. It’s the only way to do it.

Otherwise, you are going to make that change without knowing what the problem is to start with.

SSP: I don’t think many companies do collect that kind of data.

AQ: I agree. It’s about the softer, ‘touchy-feely’ elements of the contract, such as employee productivity and reduced absenteeism. It all comes back to what the objective of this piece of work is that we are going to go and do? What does ‘good’ look like from the client side and from the user side?

PART TWO, IN OUR NEXT ISSUE ● The benefits of face-to-face communication between FM and procurement ● Dealing with conflicting notions of ‘performance measurement’ ● Making the procurement of FM ‘sexy’ ● Incentivising contractors

● The value of record keeping ● Dealing with the obligation to re-tender ● Asking the right questions of prospective FM service suppliers ● Transparency in the FM procurement process ● Getting the MD’s attention via the procurement connection www.fm-world.co.uk

15/3/12 18:47:20

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FM WORLD | 22 MARCH 2012 | 23

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FM FEATURE DEMOGRAPHICS NICK MARTINDALE

THE TICKING

BOMB Recent research points to a worrying conclusion: within 10 years the profession will lose most of its oldest – and wisest – facilities managers Illustration: Natalie Wood

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survey into the state of the facilities sector, conducted by the BIFM’s international special interests group with Gensler, provided an invaluable snapshot of the industry as it stands today. Perhaps the most significant finding, though, made for uncomfortable reading.

Over half (56 per cent) of respondents fell into the ‘baby boomer’ category – the post-war generation born between 1946 and 1964 (indicating that they are currently between the ages of 48-66). Also, 52 per cent of respondents said they aimed to retire between the ages of 55 and 65. Couple that with further research conducted by Asset Skills, which found that 48 per cent of those people currently practising are aged over 45, and

A

the message is clear: the industry is sitting on something of a demographic timebomb and runs a serious risk of losing valuable experience over the next decade, without necessarily bringing in the young talent to replace it.

“This is the most important subject facing the industry in the short and medium term,” says Samantha Bowman, chair of the BIFM’s Rising FM group and a facilities consultant with GVA Actuity. “We increasingly need the knowledge inside the industry, but we haven’t got the new people coming through and our older members will be dropping off the scale.”

Much of the issue with attracting new talent lies in the way in which the industry is portrayed, says Andrew Mawson, managing director of Advanced

Workplace Associates. “Managing the workplace is a really exciting job,” he says. “But it’s not presented that way by the industry. The emphasis is much more at the operational level. We need to present this role of managing and transitioning the workplace in a much more exciting way, rather than it being associated with being a caretaker.”

Alison Watson is founding director at school careers support service Class of Your Own, and lays the blame firmly at the feet of schools and traditional careers services for failing to promote the industry to people at a young age, or even to understand it.

“Teachers themselves struggle with any profession in the built environment industries,” she says. “The result is clear; careers are not identified early in young people’s lives, nor are the routes to achievement and so there is yet again a skills gap.”

It’s a similar story even at universities, says Karen Waterlow, business services sector manager at Asset Skills.

“There’s still not particularly an awareness of what a good career FM offers,” she says. “We’ve heard employers say that a graduate is selecting them as a good employer and didn’t realise www.fm-world.co.uk

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www.fm-world.co.uk

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FM WORLD | 22 MARCH 2012 | 25

15/3/12 14:47:10

FM FEATURE DEMOGRAPHICS NICK MARTINDALE

PROFILE

ROLL WITH IT wenty-five-year-old Andrew Hulbert first found out what FM was when he landed a placement with Rollright Facilities during his summer holiday at the end of his second year at university.

Like many students, his initial impression was not favourable. “I remember looking at the website and thinking they were just a cleaning and security company,” he recalls.

The placement, though, convinced him that this was an industry in which he could progress quickly.

“I could tell there weren’t an awful lot of young, bright, intelligent, enthusiastic graduates coming in and I could see there would be opportunities,” he says. He stayed in touch with the organisation during his final year and joined on a full-time basis in August 2008.

Hulbert is now actively involved with both Rising FMs and Asset Skills in promoting FM as a career to schoolchildren and university students. “We need to come up with a new approach in terms of how we tell people about the industry,” he says. “It starts at the careers advisory level – some of them have never heard of it.”

Almost four years down the line, Hulbert now manages a portfolio of accounts worth around £5 million and manages around 100 staff within that.

Later this year, he will complete his level seven MSc in facilities and environmental management and already has designs on moving further up the company and taking a more strategic position.

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they’d gone into FM, as opposed to something like engineering or construction. They just wanted to work for the company. We want to change that.”

FM has been reticent in courting students, says Liz Kentish, managing director of Liz Kentish Coaching, partly because it has traditionally relied on more experienced staff ‘falling into the industry’. “We need it to be seen as a career,” she says.

“There are building surveying students who have a half-term module on FM. They get really excited about it, but because we don’t engage with them very much, we are missing a trick in terms of encouraging them into the industry.” The result is that they end up choosing more established professions such as surveying, she says.

Michael Hewlett is operations director at FM recruitment firm Maxwell Stephens. He believes the industry suffers in comparison with ‘sexier’ professions such as consultancy, but also says companies themselves need to do more to woo talented graduates. “In most companies the construction division is a lot more proactive about bringing in graduates than their facilities division is,” he claims. But companies need to see a commercial imperative to invest in these types of initiatives,” he adds.

There are signs that the industry is beginning to wake up to the problem, however, particularly with the launch of more formal BIFM qualifications – and an apprenticeship in FM – over the past few years.

“I’m meeting employers now who are very consciously trying to address the issue,” says Waterlow. “Initially, it was the service providers who were first to look at apprenticeship schemes and to start building a pipeline of people coming through, but www.fm-world.co.uk

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DEMOGRAPHICS

“Those of us working in FM need to be talking about what we actually do, the impact we make on organisations and what a great area it is to work in”

a year down the line we’re now seeing significant client employers also looking to address the picture as well.”

The apprenticeship itself is a level three qualification developed by Asset Skills, which is mainly targeted at 16-19-yearolds, but there are also level two qualifications in construction and the built environment; and property, caretaking and facilities services. The BIFM, meanwhile, provides qualifications at levels four, five and six, while a number of universities and colleges also offer a level seven MSc or postgraduate diploma in FM. “There are now hundreds of people going through the qualifications and the big service providers are training 20 or 30 people at a time, going through at level four and even five,” says Bowman. “Every year that passes there’ll be more trained individuals out there and they will be able to encourage other people to start training as well.

People are aware of the gap www.fm-world.co.uk

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and are trying to work towards closing it.”

Nick Shaw is director of Vision 4, and former divisional director at VINCI, where he says there was a big focus on developing training programmes around the BIFM qualifications. “We would really demonstrate to individuals that there was a career path and that the industry is one of the largest in the country and I would think one of the more stable ones,” he says. “The skills that are being promoted are there to support what is needed.”

He admits, though, that the industry does not have such an established legacy around professional development as some of the other associated ones, and that this will take time to establish.

Initiatives such as Inspiring Futures – a not-for-profit organisation that aims to facilitate industry professionals going into schools to talk about specific careers – and BIFM’s Rising FMs, which last year held its first-ever careers day for the industry, are also gradually helping to raise awareness.

“Those of us working in FM need to be talking about what we actually do, the impact we make on organisations and what a great area it is to work in,” says Kentish. The Olympics will also raise the profile of the industry, she adds, prompting people to think about the logistics of running such events.

The skills required by FM practitioners in 2022 are likely to evolve over the next decade too. Mawson suggests there will be a move towards being more “workplace managers”, requiring a far greater emphasis on softer skills than may have been the case up to now. “It requires a lot of engagement and communication and people will have to take something of a risk in exposing themselves to the

leadership of the business,” he says.

Technology will inevitably play a far greater role, too. Bowman points to building information modelling – where 3D offices are catalogued on computers – as something new entrants will have to get to grips with, as well as the possibility of running operations such as helpdesks from a number of remote locations. “We might not need these physical places for people in 10 years’ time, but what else might the facilities manager have to do to look after those people and the technology that they’re working with?” she says.

The economic and legislative requirements for greater sustainability and energy efficiency will also drive further changes to the role of the facilities manager, says Shaw, and with it the skills required. “The FM will need to support a wider sustainable energy policy around things like heating and ventilation, lighting and temperature control,” he suggests. “The next one after that would be water, where government legislation will drive changes. It will require a change in emphasis, away from very simple planned maintenance to make sure things work effectively to energy-driven strategies to make sure they work efficiently.”

While these areas may attract a new generation into the industry, there’s also a risk they could simply exacerbate the skills gap by driving up the requirement for skills practitioners.

“Sometimes the profile that these projects get can take people away from the pure FM environment,” warns Bowman.

“Even big projects like Crossrail will draw on thousands of people in and around London in the next five to 10 years. We are definitely sitting on a bit of a time bomb.” FM FM WORLD | 22 MARCH 2012 | 27

15/3/12 14:47:36

FM WORLD INTERVIEW FRANK DUFFY

PAUL MCLENNAN

FRANK EXCHANGE Photography: Sam Kesteven

THEHISTORYOF

FM

rank Duffy started down the path to his status as an FM World ‘pioneer of FM’ back in the 1960s when he first questioned the long-held belief that a building, once designed, had to stay true to its original architect’s purpose.

The co-founder of office design consultancy DEGW, Duffy has worked with some of the world’s biggest organisations, helping define the facilities sector along the way.

We invited Peter McLennan, senior lecturer in facilities management for the Bartlett School of Graduate Studies at UCL, to interview Frank.

In our sixth interview with the people who helped shape FM, lecturer Peter McLennan talks to Frank Duffy CBE (right) about his part in the development of FM in the UK

F

Peter McLennan: Could you go through your career and explain how it has intersected with facilities?

Frank Duffy: I first became interested in the office as a building type when I was a student at the Architectural Association (AA) in the fourth year, and we were asked to design a building of 13,935 square metres (150,000 square feet) in central London.

I’d never been in an office.

I didn’t know where to start.

But as I sat at my drawing board, thinking about what to do with this interesting challenge, a copy of the Architectural Review came my way. In the news was a piece by architectural historian Reyner Banham, accompanied by a tiny diagram. This was at the stage when people were starting to talk about cybernetics and communications, and there was a general widening out of 28 | 22 MARCH 2012 | FM WORLD

History of FM.sr.indd 28

the architectural discourse. The diagram expressed it beautifully; here was an arrangement of desks in an informal manner, which obviously related to some study of communications.

The notion was that architecture followed the patterns of human communication and that was the rationale for the shape and layout of the building.

That was a moment of revelation for me. The following summer I went on a study tour to several of these office buildings in Germany and met the team that had invented the concept.

This stimulated my imagination and I went to the US as a student three years later. After a wonderful year, I went to

Princeton to do a PhD and it dawned on me that there was something wrong with the office landscaping proposition. If it was based on patterns of human communication, why were all the buildings the same?

Why was the layout always the same? There must surely be some structure or logic depending upon how intense the communications were, and the hierarchical structures that were in the office, that would lead to a wider understanding of which layout was appropriate in which situation? That’s what I looked at in my dissertation.

Just after I arrived in Princeton I got a call from Pete Beverage, from a space planning

firm in New York called JFN Associates. He’d heard me talk at a conference and wondered if I would come and give a similar talk. Well, I went to mock – and stayed to pray! I was surprised at how sophisticated they were. Their design levels were high, they were very good programmers and brief writers and they understood the corporate world.

Then I realised there was something fundamentally important about the design process. The Americans had decided early on that you could divide design responsibility in the office building by the longevity of the thing designed. The space planners were responsible for the www.fm-world.co.uk

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“THE ARCHITECT-DEVELOPER AXIS IS STILL, TO THIS DAY, STERILE AND DEVOID OF FEEDBACK” five-year timescale of a corporate lease and the architects were responsible for the 40-50 year shell. And somewhere in between were the engineers, structure, electrical services, and so on.

PM: In the US, you had the office administrator, which was a clearly defined role, within the American structure…

FD: Yes, which didn’t exist at all in the UK apart from at ICI and maybe BP. They were around, but they were much weaker.

They had a much less clear idea of what their role was and much weaker methodology.

That was the beginning. I hadn’t heard the word facilities management by that time, but the idea was there. When I got back to the UK sometime in 1970, JFN said to me: “We have this client in Europe called IBM, with offices in Amsterdam, Finland and Milan. You could help us with this.”

In IBM, they had this enormous client and were responsible for brief writing and programming for these very large buildings, with these quite important architects designing them. I don’t think they quite knew what they knew what they were up to.

I didn’t want to live in Brussels so I set up an office in London as a subset of JFN. And then there was this fascinating moment in the development of the office with the realisation that the whole idea of a homogenous solution rolled out for Europe was impractical and even dangerous for IBM. My analysis of the situation was that they were forcing on their employees an alien office culture on several different cultures, therefore demanding the loyalty of the workforce to choose between the office culture and the national culture. www.fm-world.co.uk

History of FM.sr.indd 29

After about three years came the oil crisis and JFN retreated to the states and we were on our own. That’s when our independent practice DEGW —me, Peter Eley, Luigi Giffone and John Worthington came together.

I was already doing a series on office planning for the Architect’s Journal. The basis of planning office space at that time was fundamental; that the several time horizons of design had to be disentangled and separated from one another if office buildings could be designed that would last for more than five years.

PM: You seem to have been the first to recognise the administrative and management side around that.

FD: That realisation developed a little later, but one thing that was clear was that if you calculated the cost of the scenery and the 50-year life span of a building, the architecture was a subset

“I’d never been in an office.

I didn’t know where to start”

CAREER FILE

A design for life NAME: Francis Cuthbert ‘Frank’ Duffy CBE EDUCATION: Princeton University; University of California, Berkeley; Architectural Assoc. School QUALIFICATIONS: MA, PhD Architecture, M Arch, Architecture, AA Diploma (Hons) AWARDS: 1997 awarded Commander of the Order of the British Empire (CBE) 2004 received the British Council for Offices (BCO) President’s Award for Lifetime Achievement WIKIPEDIA.ORG/wiki/Frank_Duffy_(architect) CAREER: 2012 – present: Independent Consultant 1993 – 1995: President of the Royal Institute of British Architects 1980s: Initiated the ORBIT (office research: buildings and IT) into the impact on office design of IT. 1973: Left JFN to form DEGW in partnership with Peter Eley, Luigi Giffone, and John Worthington. DEGW was established as an independent firm focusing on the planning and design of workplace environments.

1971: Joined the London office of JFN Associates, a firm of space planners with headquarters in New York and a European subsidiary in Brussels.

1968-1971: Duffy’s PhD analysed the relationship between organisational structure and office layouts.

1965 – 1967: Editor, AA Journal 1964 – 1967: Architectural Assistant, National Building Society

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FM WORLD INTERVIEW FRANK DUFFY

PAUL MCLENNAN

Duffy: “In terms of financing office buildings, there is a terrible supplyside weakness”

of space planning and interior design in financial terms. The architect-developer axis is still, to this day, sterile and devoid of feedback. It’s the curse of architecture, moving from one project on to another and being able to avoid, especially in the corporate world, contact with the end users.

PM: You helped to articulate the fact that you had to understand the user and how space got developed and re-planned.

FD: In the early 70s, we were working in Europe a lot, getting this sense of different cultures and abilities. It dawned on me that there was a missing piece of software in this process. Who was making the decisions? Who was organising the user feedback in relation to corporate bills? And how could that be fed back into the space planning system in a more considered way, and in turn how that could be fed backwards into architecture and eventually into design.

Through to the end of the 70s, there was a very strong tradition in the architectural press of providing technical information for architects. So the idea I sold was that there was a professionalisation process beginning for facilities managers, who also needed technical information at a higher level. Wouldn’t it be a good idea for them to experiment with publications rich in technical information related to their jobs?

That was an important element in the professionalisation of FM. PM: Well, essentially you were helping to define that knowledge base.

FD: Then something else really important happened – the computer escaped from the computer room and got into 30 | 22 MARCH 2012 | FM WORLD

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the office. A technological phenomenon started that was changing every aspect of the office, from office culture to the fabric of office buildings.

PM: The very nature of work…

FD: In the early 80s we managed to persuade a number of people, including a government department to invest in a multi-client study [ORBIT – Office Research: Buildings and Information Technology], an exploration of the impact of IT on organisational structures and therefore interior design and upon the delivery system – the money, the financiers the developers and letting agents.

By the mid 1980s, it had become clear that London was struggling to keep up with the financial services industry.

People had realised that there was going to be a battle for this position of the leading financial services centre in Europe, between Frankfurt and Paris and London.

A different class of office building capable of accepting technology had to be invented, hence Broadgate and Canary Wharf a little later. These were projects influenced by that study, and of course they couldn’t have

been done without the facilities management profession.

PM: My understanding of the ORBIT study is that it was the first time the silo groups within organisations were actually brought together to talk to one another. So you had all the key stakeholders together for the first time. What that document tried to portray was that without doing that you did not have an effective organisation.

FD: Yes, and it was downright dangerous not do it. It’s very interesting to look at the timeline and the growth of FM as a profession. I should think the curve of growth and the acceptance of the idea must have been very rapid in the mid 80s because of this huge change.

And there were lots of ideas coming from North America.

It’s quite fascinating, the need for universal solutions formulae – which is very attractive, of course, to both providers and consumer side – has a very dangerous, degenerative weakness: if a formula gets accepted it becomes the law.

I am still extremely sceptical about universal solutions for the interior. I think there are lots of different organisational cultures

that demand different kinds of design and managerial sponsors.

In terms of the financing of office buildings, I think there is a terrible supply-side weakness which starts with the money; it’s the property owners who get onto the developers and they talk to the town planners and they talk to the architects who eventually join up with the corporate clients. It’s still a oneway system. The money talks.

The idea that there isn’t a permanent solution and you have to keep on thinking about what a city is, and what the nature of a city is, is incredibly important.

Because we’re not all going to go to work at 9am, pack our bag and get on the train at 5pm. Which means the office has escaped from the office building. It is actually an urban issue at a very different scale.

PM: It comes back to your themes of time, space and organisational change. What underpins most of my understanding of your work is that you are always picking up on this from the evidence of dealing with the users, that there is this shifting ground that you have to respond to.

FD: There is also an ever irreversible logic in things that www.fm-world.co.uk

15/3/12 18:28:48

“FM IS IN A WONDERFUL POSITION TO ARTICULATE THE DEMAND SIDE, SPEAKING ABOUT THE LONG-TERM CONSEQUENCES OF DESIGN DECISIONS” the sustainable agenda, which touches on a lot of things you are speaking to – social issues, the community issues, energy?

seems to be unfolding, which, funnily enough is being resisted by the supply side.

I think there is a sharp division between those who like delivering what they are delivering and what society actually needs – not just office organisations, but people who now have choices about their way of life and where they work, how they work, whether they commute or not and how much time they spend at home.

We have amazing opportunities to design different lifestyles and to invent a better sort of city, which are, to pick up one of the latest themes, based upon an understanding of the probability of where economically beneficial encounters are likely to take place. It might just as well be a Starbucks.

PM: Starbucks will be very happy with you for saying that!

FD: Starbucks, I think, represents a particular moment of the office escaping from within the office building.

PM: So now we’re talking about the mid 1990s and the challenge for a lot of organisations was the rise of the internet. www.fm-world.co.uk

History of FM.sr.indd 31

FD: There’s that whole discussion, that fundamental intellectual moral question of how to justify place in an increasingly virtual world. If you had to explain to a creature from outer space what place was about, what arguments would you assemble in order to justify it?

PM: So, in the 1990s, the issue of utilisation of space became important as it became increasingly expensive. People were challenging what went on in that space, how you used and organised it. So again we get back to how you deal with the users in the relationship to the corporate situation in terms of the time and space resource.

FD: Yes, and what categories you use to deal with these emerging issues. That’s the danger of using old buildings of a certain sort, which are connected to a delivery system. People like delivering what they like delivering in this situation. Which is a step change in culture and technology that will lead us, in the course of the next decade or so, into very different forms of socialisation, physicality and urbanism.

PM: Do you see a possibility for FM here, certainly with

FD: Yes all these things are right up there. I think these are moral as well as technological issues, and there’s obviously the social dimension as well.

I think facilities should be more ambitious in its programme rather than being a faithful servant to the corporate leaders we’ve seen. I think this actually puts facilities in a much more important strategic position inside organisations. But to realise its importance depends on taking the high ground in corporate arguments.

PM: And how do you see that playing out?

FD: It’s not just about saving money and being lauded for that, but actually thinking about what ought to be done in order to make organisations work globally using a mixture of physical and non-physical resources in order to achieve the best possible resolution. It’s not just for the organisation itself, but for the city and for the planet.

PM: So, who do you see picking up on these types of things?

FD: That’s a very interesting question, but what is a profession for? I think professions, architecture perhaps particularly, has got stuck in a certain notion of itself. FM may be in the same position, but I can’t speak for that, I’m an architect of course.

We have a group that has been going since the end of my time at the RIBA called ‘The Edge’.

It’s an informal group of people from various professions who meet monthly and we discuss the role of the professions, where these issues are being discussed

from a global perspective in order to take up positions in relation to government policy on urban design and urban planning and the nature of the physical form.

These relate to the structures for the kind of economy we need as we go through the 21st century.

It can’t be done by any one profession and if we stay within our boundaries, those early 19th century institutions – in the case of engineering and architecture – then we are doomed because we will never get out of our box.

It’s funny, I often think about this. When you are beginning a project there are a wonderful few weeks where no one is charge, where the discussion about what form the building should have, the chairmanship of the meeting goes around the table effectively as a different issue comes to the top, so of course it has to be done that way. And it hasn’t dawned on us that actually, there is a meta-level of this kind of discourse, which needs to exist beyond professional boundaries bringing all sorts of ideas together in order to address these extreme issues about what kind of life should be on this planet.

PM: Again, the FM brings the demand side view to the table, something you have spent a career trying to articulate.

FD: I think FM is in a wonderful position to articulate the demand side in this discussion and it must be there at the table, speaking not just for the ease of the delivery system but also about the longterm consequences of the design decisions that are being made, bringing important ideas of patterns of use and user expectations into the discussion. FM A longer version of this article is available online at www.fm-world. co.uk/features/interviews/historyof-fm-interview-series/

FM WORLD | 22 MARCH 2012 | 31

15/3/12 18:29:11

FM MONITOR TONY THIARAY

LEGAL UPDATE

Tony Thiaray is commercial lawyer at Cushman & Wakefield Facilities management

T HE R ISK M ANAGEM EN T O F CO N T R ACT S

acilities managers must ensure that F contract terms and clauses are clear from the beginning to reduce and prevent problems from arising during the agreement “We don’t need to agree the specifics of the contract right now... we can sort that out later.”

More often than not when “later” happens the relationship has gone sour and the parties cannot agree upon anything.

Not having a signed contract in place is a common mistake. Often parties enter into a commercial arrangement without having agreed definitive and binding terms. It’s crucial that you protect yourself by putting the terms of your agreement in writing, clearly stating exactly what you intend to do and how.

While the word ‘contract’ incites apprehension, in lieu of anticipated incomprehensible (legal) terms and expensive (legal) fees, not having a signed written contract in place can leave you open to disaster. Here’s an overview of what you should look for in a legal contract: ● Names of parties: the contract

will commence by naming the parties and, where the parties are limited companies, it is important to use correct legal names and company numbers; ● Date: make sure the actual start date (or “effective date”) and termination dates are clear; ● Recitals: these can sometimes be useful to set out the circumstances in which a contract is entered into because in case of dispute about the correct interpretation of the contract, the stated commercial context can prevent ambiguity; ● Definitions: sets out definitions 32 | 22 MARCH 2012 | FM WORLD

32_Legal.sr.indd 28

of key terms. For example, ‘services’ might be defined as being any services carried out by the contractor including its subcontractors – make sure the specific meaning is clear; ● Key commercial obligations: in the interests of clarity, it is usual to set out the main commercial obligations, namely, what one party will do and what the other will pay before stating the detailed clauses dealing with the ‘nitty gritty’; ● Fees/payment: ensure the payment provision clauses are clear and that any rights to ‘set off’ are excluded; ● Services/KPIs: Make sure you can provide what you’ve agreed, on time in scope and in budget; the KPIs should be measured fairly; ensure if any ‘service credits’ are applied for failure to meet KPIs that these are reasonable and opportunities are afforded to rectify ‘reasonable’ service failure; ● Inability to meet key obligations: ensure that the inability to provide services because of circumstances beyond the control of either party (‘force majeure’) is not a breach of contract; ● Limiting liability: look to limit or exclude liability to each other (except in respect of personal injury or death) – this can be a powerful shield to a claim, particularly if the cap is an all-embracing “aggregate” cap on liability; ● Insurances: the key point to note is that an obligation to

maintain insurance is not the same as a clause limiting a party’s liability under, or in connection, with a contract. Make sure your insurances are reflective of the type of service provided/risk and fees; ● TUPE: is the position clear as to what happens at the outset, during and at termination of the contract, with regards to the specific group of people performing/providing the services? Check whether you’ve agreed upon suitable indemnities; ● Termination: in practice, when such clauses are invoked, the parties’ relationship is seldom at its best. It’s therefore essential that such clauses are clear and that the grounds for termination are unambiguous; ● Change control: ensure that any amendments to the services and/or the contract are agreed in a form of document that is approved and signed by the parties; ● Dispute resolution: these clauses can have profound implications for how any dispute is resolved and the contractual rights and obligations enforced, make sure the procedure is clear and that each party pays for its own costs; ● Law and jurisdiction: if the contracting parties are both English companies, the work is to be carried out in England and there is no connection with anywhere other than England, the contract will undoubtedly be interpreted in accordance with English law and any dispute subject to the jurisdiction of the courts of England and Wales. However, for the avoidance of any possible doubt, it is usual to have a clause expressly saying this; ● IP/DATA and confidentiality: know what IP and data is confidential, relevant, or could be at risk and protect these via indemnities.

The ‘end game’ Following on from the above, the case of AstraZeneca UK Limited v International Business Machines Corporation [2011] EWHC 306 (TCC), highlights the importance of ensuring that exit management provisions are clear. This case demonstrates that the courts will look at the purpose of the deal and consider the documents in the round when construing clauses or terms that are the subject of argument.

Key point: Failing to plan for termination can lead to considerable uncertainty and increased costs. Focus on how you want your contractual relationship to end. Agree the termination clauses together with an exit management plan, build in any demobilisation costs; do this at the outset and update the exit management plan via annual reviews. Such reviews should also be used as an opportunity to review your existing agreement and address any unforeseen issues.

Never attempt to negotiate exit processes at point of termination; they are unlikely to result in a favourable outcome for either party. FM CONCLUSIONS 1. Signing a contract between the parties is an important means of securing the legal position of the agreement 2. It is essential to carefully examine the terms of agreement in any new contract drawn up between parties.

3. Take legal advice to ensure that you have a full understanding of your responsibilities in the contract 4. Discuss the manner of exit from the agreement as far as possible in advance of the point of termination. www.fm-world.co.uk

15/3/12 16:01:55

Court Report NEALE VS WITNEY ELECTRICAL THEATRE [2011] EWCA CIV 1032

Interim Rent THE ISSUE

When a protected business tenancy is being renewed (or terminated) under the Landlord and Tenant Act 1954 (the act), both the landlord and the tenant can apply for interim rent. Once determined, this is payable from the earliest date that the relevant renewal (or termination) notice could have specified as the lease termination date, until the date that the new tenancy commences (or until the old lease expires).

Interim rent can be determined in two ways. The first applies where the tenant renews a lease of the whole of the premises. Broadly speaking, the interim rent will be the same as the new rent.

The second method (applicable, for example, where the lease application is opposed) requires the court to decide what is ‘reasonable’, having regard both to the old rent and the market rent assessed on a year-to-year basis. The case of Neale vs Witney Electrical Theatre confirmed that, when determining interim rent in this way, the court has a broad discretion.

BACKGROUND

Neale (the tenant) had a lease of a nightclub from the Witney Electrical Theatre (the landlord) under which the passing rent had been £43,000 since 1992.

www.fm-world.co.uk

33_Court Report.sr.indd 33

The landlord served notice to determine the tenancy on 25 June 2007. The tenant issued a court application for a new tenancy and proposed an annual rent of £28,000. The landlord countered with a proposed rent of £65,000.

On 13 December 2007, the landlord applied to the court for the determination of interim rent.

In 2009, the court ordered that a new tenancy be granted subject to various conditions. The tenant breached one of these conditions and in 2010 the court dismissed the application for a new tenancy.

The interim rent application remained outstanding.

At first instance, the judge said that the year-to-year market rent would be around 25 per cent lower, but fixed the interim rent at £43,000 (the passing rent).

The tenant appealed against the decision.

ARGUMENT

The tenant argued that the interim rent awarded was too high. In this case, because the tenant’s application for a new tenancy had been dismissed, the court was obliged to determine the interim rent under the second method of interim rent assessment.

The tenant contested that the trial judge had not applied the principles applicable to this method correctly.

First, the judge had failed to properly assess what level of market rent would be payable on a hypothetical year-to-year tenancy of the premises. Second, the judge

had placed too much importance on the old rent in comparison to the market rent: the landlord was not asserting that the interim rent be higher than the passing rent and therefore the tenant did not need protecting by virtue of greater emphasis on the passing rent. Third, the tenant asserted that the judge’s conclusion was unreasonable, particularly in light of the premises’ condition and restricted trading hours resulting from a planning agreement.

DEFENCE

The landlord argued that the trial judge’s decision had not been made in error. The judge was entitled to exercise a broad discretion when considering what interim rent it was reasonable for the tenant to pay.

The landlord also tried to introduce new evidence regarding a re-letting of the premises to support what should be a ‘reasonable’ interim rent for the tenant to pay. The court disallowed this evidence for various reasons.

With regards to the state of the premises, the landlord noted that a second case regarding the disrepair was ongoing and that the tenant might be in a position to receive double recovery if this were taken into account on the interim rent hearing.

DECISION

The court found that the judge had in fact considered the market interim rent and that although he had adopted a “truncated”

approach to the assessment by reaching a figure of 25 per cent less than the passing rent, this did not justify allowing the tenant’s appeal.

With regards to the tenant’s second ground of appeal, the overriding principle guiding a court in its assessment of interim rent should be “reasonableness”. The court accepted that the judge was exercising a broad discretion in this regard and within this was entitled to find that the tenant should continue to pay the passing rent.

To consider that awarding the tenant a 25 per cent discount to the passing rent against the background of static rents for the premises and rising rents elsewhere amounted to a windfall was a view that the judge was fully entitled to hold.

IMPACT ● It was previously only the

landlord who could apply for interim rent; the tenant can now also start the process ● Interim rent applications must be made no later than six months after the termination date specified in either the landlord’s section 25 notice or the tenant’s section 26 application (subject to extensions) ● The court has a broad discretion when it comes to determining the interim rent.

Beverley Vara is a partner and head of real estate litigation at solicitors Allen & Overy LLP

FM WORLD | 22 MARCH 2012 | 33

15/3/12 15:39:43

FM MONITOR JOHN DICKSON

HOW TO…

John Dickson is managing director of NBC Bird & Pest Solutions

EF F ECTIVE B IRD CO N T RO L

irds enhance the world we live in, but can cause damage to property.

John Dickson suggests six tips to control birds effectively and ethically

B

Human beings come into contact with birds almost every day.

Normally, these interactions are benign, even pleasant affairs.

However, there are some circumstances where conflicts do occur. Birds can cause expensive damage to property and even attack people when nesting.

Also, bird mess is not only unsightly, but is known to carry diseases, creating serious health and safety hazards.

However, many clients and contractors are unaware of how they can deal with these problems ethically and legally.

1⁄

Match the type of bird and reason for control All birds are protected by law, and it is an offence, with certain exceptions, to intentionally kill, injure or take any wild bird, or damage the nest. Even for pest species, lethal control should always be a last resort. To ensure the law is adhered to, it is essential that the species is correctly identified, documented and a clear reason established as to why control is required.

There are many ‘pest control’ companies, but few with knowledge and experience of the complexities of bird control or bird legislation.

Picking the wrong contractor can, at best, result in poor value for money or, at worst, litigation.

34 | 22 MARCH 2012 | FM WORLD

34_HowTo.sr.indd 34

Contractors should be BPCA (British Pest Control Association) members and the technicians should be BASIS-PROMPT registered (Professional Register of Managers and Pest Technicians).

If using birds of prey, handlers should be Lantra certified – the UK’s Sector Skills Council for land-based and environmental industries. Pest companies should be able to demonstrate experience and offer many solutions so that you receive a control method that is right for you.

Bird proofing to prevent the birds from entering or landing at a location is one solution, and there are many options. These range from netting, spiking or an electrical deterrent with a small and harmless charge. There is even a gel that gives off an ultra-violet flame, only seen by the birds.

2⁄

Falconry

Sometimes bird proofing isn’t viable, for example the building size may make proofing impractical, it may be listed or you don’t want to spoil the appearance of the building. This is where falconry response can be

an extremely effective method of control. The presence of a trained hawk or falcon encourages birds to establish a new pattern of behaviour without harming any of the nuisance bird population.

Birds of prey need to be used in a sustained programme long enough to change the pest species habits.

When choosing falconry as an option, many people have the misconception that they just need someone with a bird of prey, but you wouldn’t use any dog for sniffing out explosives. Just like the dogs, working birds need to be specifically trained for the job, as do the handlers.

3⁄

Bird distress calls

Broadcasting audio recordings of the species’ own distress call warns birds such as gulls, starlings, rooks and crows that the area is not safe, causing them to disperse.

After installation, these systems require minimal maintenance and management, providing a cost effective solution. Some birds, such as pigeons, don’t have distress calls, so another option would have to be considered.

4⁄

Understand the timeframe

The timescale for any method to be effective depends upon the scale of the problem, the type of damage, environmental factors and attractions that may draw birds to

“A single gull’s nest can cause severe flood damage to several floors of a building by simply blocking the guttering and drainage”

the area. That’s why it’s important to use experienced professionals who can monitor and evaluate the effectiveness of the bird-control programme and make changes if required.

5⁄

Evaluate the results

Controlling nuisance birds saves the cost of damage to buildings. Pigeons, gulls, starlings and other birds can cause extensive damage to facilities.

This includes debris from nesting material and bird fouling, which can turn buildings into eyesores, as well as putting the foundations at risk from the acid in the droppings corroding bricks and paintwork.

A single gull’s nest can cause severe flood damage to several floors of a building by simply blocking the guttering and drainage, while aggressive noisy or noisy behaviour can affect business and productivity.

It is essential that the process is documented and evaluated right from the very start. You should be able to demonstrate that you have considered the situation carefully to protect yourself and demonstrate due diligence. The operations should be evaluated with bird counts before, during and after works to help in assessing the value of the procedure.

6⁄

Report the benefits

By properly considering non-lethal bird control methods, companies are demonstrating that they are ethical, moral and law-abiding. As well as meeting health and safety and bird protection legislation, projects can be incorporated into CSR reports and company PR. FM www.fm-world.co.uk

15/3/12 14:48:05

FM MONITOR STAN MITCHELL

STANDARDS

Stan Mitchell is chair of the BSI’s Facilities Management Committee

THE D EVELOPM EN T O F STA N DA R DS I N FM

he BS EN 15221-2 standard has been developed to help ensure consistent and effective facilities management agreements, explains Stan Mitchell

T

Continuing our discussion of existing facilities management standards, we will focus on the second standard created by the CEN TC 348 (European Committee for Standardization Technical Council) in 2006, which was BS EN 15221-2 ‘Guidance on how to prepare Facility Management Agreements’.

ISTOCK

CEN committee Before discussing the standard, it is useful to outline the representatives who are responsible for its creation.

The CEN TC 348 committee was formed in 2003 to establish a common understanding of FM and what it meant. At this time, there was considerable debate within the UK and Europe regarding the legitimacy of FM as a professional discipline and its place within the context of the built environment sector.

The British Institute of Facilities Management (BIFM) was instrumental in the forming of the Facilities Management Committee within BSI, allowing formal participation with the CEM framework.

Currently chaired by Remko Oosterwijk from the Netherlands, the CEN TC 348 committee has always had a firmly European flavour. Originally, it was well supported with participants from the professional associations, educational bodies in the sector and, of course, the National Standards Bodies from the www.fm-world.co.uk

35_Standards.sr.indd 35

applicable in all cases to an in-house FM organisation.

It was decided that it would be fruitless to create a ‘descriptive’ contract-type document, due to the diverse circumstances an agreement might be required to accommodate. The committee created a ‘guidance’ standard that would prompt which criteria should be considered when establishing a successful agreement.

The content respective countries. Most EU countries participated, although the countries were involved in producing the standards.

BS EN 15221-2 The BS EN 15221-2 guidance on how to prepare Facility Management Agreements was the second standard that was developed by CEN TC 348. The aim was to raise the awareness of both parties associated with any agreement to ensure a successful relationship.

Initially, it was thought that there may be different documents for the private and public sectors. However, this was not necessary.

It was also recognised that while the driver for this standard started out in relation to the two distinct parties, it was almost

The process of creating a successful agreement starts with a clear understanding of the client organisation’s primary activities. Without this knowledge, it is unlikely that the FM team will fully match the required support services regime. All too often, we see tender documents emerging from procurement departments that give little or no information in this regard. Then, over time, those same departments wonder why the anticipated success does not materialise!

The standard goes on to define the different types of agreement that might be applicable from a strategic, tactical or operational level. Organisations need all three if they are to realise the real benefits of true facilities management.

It also highlights the need to consider aspects such as

asset ownership, pricing mechanisms and performancebased payments.

Preparation, mutuality, setting strategic objectives, clear terms of agreement and management of client procured services are all factors that determine the success – or failure – of a facilities management agreement.

Issues such as subcontracting, management responsibilities, regulations, the client’s standards, and the process for the ending of the agreement, also play an important role.

It moves on to set out guidelines on the preparation and implementation of an agreement. It provides a staged process to be considered in the procurement process, mobilisation, validation and operational phases.

It goes on to provide a clear structure to any agreement document with example clauses that could be used to create Service Level Agreements (SLAs). These are indicative and to be used as a guide to establish SLAs that are applicable. FM Stan Mitchell is chief executive of Key Facilities Management International, chairman of the BSI Facilities Management Committee, past chair of BIFM and founding chair of Global FM

“BS EN 15221-2 Facility Management Agreements was the second standard developed by CEN TC 348. The aim was to raise the awareness of both parties associated with any agreement to ensure a successful relationship” FM WORLD | 22 MARCH 2012 | 35

15/3/12 16:02:15

FM FMMONITOR SUPPLEMENT MARKET CATERING INTELLIGENCE

BY NAME IN HERE

INSIGHT

The figures on this page have been compiled from several sources and are intended as a guide to trends. FM World declines any responsibility for the use of this information.

GROUND SOURCE HEAT PUMP MARKET

VAT rates: Standard rate – 20% (from 4 January 2011) Reduced rate – 5% Zero rate – this is not the same as exempt or outside the scope of VAT Source: HM Treasury (hmrc.gov.uk)

Bank of England base rate: 0.5% as of 7 September 2011.

The previous change in bank rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009.

GREENHOUSE GAS EMISSIONS 2012

40,000 Annual sales of GSHPs and ASHPs

ECONOMY

CATERING

35,000

Total Greenhouse Gas Emissions (MtCO2e)

33%

2012

16%

30,000 25,000

2%

3% 9%

20,000

21%

15,000

2%

14%

10,000 5,000

2022

o

18%

2007 2008 2009 2010 2011 2012 2013 All heat pumps

26%

3%

Source: Bank of England (bankofengland.co.uk)

3%

Consumer Price Index Annual inflation fell to 3.6% in February, from 4.2% in December.

Annual inflation has now fallen by 1.2 percentage points since November 2011. The only time there has been a larger fall over a period of two consecutive months was between October and December 2008.

Source: ONS (www.ons.gov.uk)

EMPLOYMENT

National Minimum Wage The following rates came into effect on 1 October 2011: Category of worker

Hourly rate from 1 Oct 2011

Aged 21 and above

£6.08

Aged 18 to 20 inclusive

£4.98

Aged under 18 (but above compulsory school age)

£3.68

Apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

£2.60

Business 16%

18%

Industrial processes 2% 3% Transport 21%

24%

Residential 14%

15%

Public 2%

2%

Agriculture 9%

10%

The government has ambitious short-term targets for ground and air source heat pumps (GSHP and ASHPs), which are a mature technology in many countries, except in the UK. In Norway and Sweden, for example, the number of heat pumps per 10,000 households is around 300-350 – some 50 times the UK penetration level.

There are few official statistics for the UK market.

However, sources indicate that in 2010, the annual sales were around 14,500 GSHPs and ASHPs for residential, commercial and industrial applications.

It is estimated the market is worth around £120m and in 2011, the market grew to around 19-20,000 units.

Going forward, the sector will be heavily influenced by subsidy levels and the possibility of tariff cuts.

Forecasting growth rates is difficult given the impact of the relative costs/efficiencies against fuels and other factors.

Overall upfront costs in terms of product and installation and a relatively long payback period are proving barriers to the growth of heat pumps in the UK, especially in the residential sector.

Research released by the Department of Energy and Climate Change (DECC), Updated Energy & Emissions Projections – October 2011, compared annual total greenhouse gas emissions across all sectors in metric tonne (ton) carbon dioxide equivalent. It suggests that emissions will fall from all sources between 2012 and 2022, except for industrial processes, which remain the same.

Emissions from the energy supply will remain the highest of all sectors, despite a drop of 67MtCO2e between the years 2012 (where it makes up 36% of the total emissions) and 2022 (26% of total).

Both the business and residential sectors are projected to fall by 9MtCO2e over the 10 years, which is the second biggest overall decrease.

The public sector also produces the least amount of emissions out of all the sectors over the period, making up 2% of the totals for both years.

Source: www.amaresearch.co.uk

Source: www.decc.gov.uk

15%

Waste management 3% 3%

UK CONSTRUCTION INDUSTRY KPIS

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36_Insight.sr.indd 52

10%

24%

2022

Energy supply 33% 26%

According to figures collated by the construction industry’s Respect for People KPIs campaign, staff turnover in the sector jumped to 3.3% in 2011 after two straight years of improvement. Large projects had the highest median turnover rate, 5.1%.

Annual absence from sickness had held steady at 1.7 days (average per person) for the previous four

years, but this declined to a median of just one day lost per year in 2011, the lowest on record.

Conversely, median training days worsened to an all-time low of 0.6 days per year, half of the previous year. However, the amount of employees qualified with a NVQ Level 2 improved to 31%.

Source: www..constructingexcellence.org.uk

www.fm-world.co.uk

15/3/12 17:57:04

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T: 0845 058 1358 E: membership@bifm.org.uk www.bifm.org.uk 2/8/10 12:13:00 FM WORLD | 22 MARCH 2012 | 37

12/3/12 11:12:38

BIFM NEWS BIFM.ORG.UK

ALAMY

The Royal College of Physicians in London, host venue for ThinkFM in 2012

THINKFM

Why attend ThinkFM? At ThinkFM, you will hear from industry leaders and thinkers, on topics relevant to you, take away practical ideas to implement and new ideas to help you drive your organisation forward and discover working solutions from fellow FM professionals.

Choosing from 30 sessions in four hubs, you are encouraged to set your own agenda to help you get the most out of the day: ● Workplace: making spaces work Sessions in this hub will give you an insight into the challenges of managing facilities in three very different sectors and bring you right up to date with thinking on how to optimise workplaces ● People: inspiring the team FM is a people business and whether you are managing a team, managing customer expectations or just trying to manage your career, this hub will give you insight and inspiration and help you review your training options, and learn social media secrets ● Competitive advantage: driving performance and value Gain some insight into the future of the sector and the opportunities for you or your business by joining these sessions ● ThinkFM Lab This is the place to exchange ideas and experiment. Topics include workplace and environment issues that may 38 | 22 MARCH 2012 | FM WORLD

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be facing us in the future, and benchmarking your facilities’ costs and performance, ending with an international focus. i ThinkFM is a day of learning, debate and networking, taking place on 18 June at The Royal College of Physicians, London. Find out more at www.thinkfm.com.

THINKFM

B&ES to sponsor ThinkFM B&ES, the Building & Engineering Services Association (formerly HVCA) represents the interests of companies engaged in a

wide range of disciplines.

B&ES helps members build successful businesses by being the leading trade association for integrated building and engineering services and renewable technologies.

It promotes and monitors excellence; provides quality advice, guidance, training and support; generates marketleading thinking; and shapes the commercial environment through active representation. i

Learn more at www.b-es.org

ONLINE INFORMATION

Member benefit – Barbour EFM BIFM and Barbour EHS have partnered to provide online information and resources, creating Barbour Estates and Facilities Management: the Official BIFM Information Service Partner.

This partnership will provide BIFM members with a quarterly update of resources and tools to assist them in their roles,

Barbour’s Mike Ridgway and Heather Beach with Gareth Tancred, BIFM CEO (L-R)

including technical guidance, factsheets, presentations and CPD webinars – written and peer-reviewed by industry experts and produced with the aim of supporting the ever expanding needs of those working in FM. Through the agreement BIFM and Barbour will be producing content together allowing for a larger selection of expertise over a wide variety of topics and issues.

The agreement will also see a comprehensive database of health, safety, environment and facilities management information available for the FM professional.

The service will be available at a discounted annual subscription rate for BIFM members.

Gareth Tancred, CEO at BIFM, said of the partnership “I am very excited to see Barbour EHS and BIFM working together to produce high quality information for Estates and Facilities Management professionals and the businesses they serve.

This forms another part of our commitment to providing the very best resources to our members to ensure they can access the information they need to deliver excellent FM. Eighty-three per cent of respondents to our 2011 membership survey expressed an interest in such a service and we are pleased to now be launching this new member benefit. The agreement allows us to bring together a wealth of knowledge and information which I feel can only be of significant benefit to our over 12,000 strong membership and to the sector”.

Heather Beach, Director of Barbour EHS said “This agreement with BIFM signifies the growth of this information in the FM arena, and we look forward to supporting the BIFM members in carrying out their roles safely and effectively.” i Learn more at www.bifm.org.uk/ barbour

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Please send your news items to communications@bifm.org.uk or call 0845 058 1356

MEMBER SEARCH

Retail SIG The retail SIG is currently looking for committee members. The aim of the SIG is to ensure FMs in the retail industry receive information tailored to their needs and to provide a voice for these FMs in the strategic development of the BIFM. The SIG currently has 2,809 members, and there are a number of opportunities available on the committee. Any members who have current or previous experience within the retail sector are encouraged to apply, as are any members with an interest in the retail side of FM. i For further details email membership@bifm.org.uk. To learn more about all BIFM SIGs and regions go to www.bifm.org.uk/ groups

SOCIALS

North River cruises BIFM North Region, supported

by Norland Managed Services, is to hold two social events this summer – the York and Chester river cruises.

Tickets cost £30+VAT per person and include entry to the Macmillan Cancer Support charity raffle.

Mark Muncaster, business unit leader north from Norland Managed Services, said: “Norland Managed Services offers a unique, integrated approach in total facilities management. This is centred on our performance-based partnering, which provides collaborative working, transparency and ‘best in class’ with our clients and service partners. We believe performance-based partnering is the key to success; working with our clients and partners to build on mutual goals providing www.fm-world.co.uk

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Oliver Jones is chief executive of Chayora and chairman of the judges for the BIFM Awards

GUEST COMMENT T H E 2012 B I F M AWA R D S

he New Year and the early signs of spring are good triggers for us all to set new targets and start new chapters in our business and personal lives.

In today’s challenging economic times, setting ambitious new goals is an essential part of successful leadership: the traditional measures of headline turnover growth, profit improvement and cash collection need to be matched these days by the need to maintain high-performing teams and retain long-term customers through exceptional service.

In recent years, the BIFM Awards have grown in stature and today represent the crucible of constructive competition in FM in the UK, illustrating and showcasing the wide-ranging professional skills being deployed across our industry.

Targeting success as a finalist or a category winner in the BIFM Awards is therefore a superb way of creating focus, achieving team engagement and benchmarking.

The experience of recent winners underlines the sense of achievement that can be secured which range from enhanced brand profile and industry standing, to strengthened client relationships, tighter team working and improved margins.

As an example, when I was chairman and an investor in NB Entrust a few years ago, we set a series of measures of progress with our management team upon embarking on a major restructuring programme. The objective was to create a sector-leading FM business and achieve external recognition through a top industry award for excellence within three years. We were delighted when we achieved the BIFM Award for Excellence for Property Investors FM. It was a positive outcome – all the team had been core contributors.

Success in recognised awards programmes really delivers benefits! Only the best will make it, so deciding to enter requires a bold leader who puts their faith in their team.

So, perhaps you could be such a leader?

You don’t have to be the chief executive or managing director, although their buy-in is important, but you must be a leader who can inspire others.

Get your team together and stimulate discussion to identify which category to enter and the areas where you need to do more to be an industry leader. Making positive change with a clear target for the BIFM Awards next year could be an important goal.

The competition will be tough, but the judges are first-class industry professionals. We had nearly 100 entries across 11 categories last year from the largest FM companies through to many of our excellent smaller businesses and partnerships.

The winners fought hard and represented the best of breed in each case.

Entries close on 27 April, so are you a leader and will this be your year?

Good luck to all who step up to the mark in 2012.

T

“SUCCESS AS A FINALIST OR A CATEGORY WINNER IN THE BIFM AWARDS IS A SUPERB WAY OF CREATING FOCUS, ACHIEVING TEAM ENGAGEMENT AND BENCHMARKING”

i You can learn more and enter at www.bifm. org.uk/awards

FM WORLD | 22 MARCH 2012 | 39

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BIFM NEWS BIFM.ORG.UK

performance guarantees.

“Norland Managed Services is proud to be the headline sponsor for the North Region BIFM events, for the second year running. We have a long history with BIFM and will continue with our support in the future, as it is a leading influence within the facilities management industry.”

The York event will be held on Thursday 7 June and the boat will leave from Lendal Bridge, York (YO1 7DP).

The evening in Chester will take place on Thursday 6 September, with the boat leaving from The Boating Station, Souters Lane, The Groves, Chester (CH1 1SD).

Tickets are already on sale now and we are expecting the events to be over-subscribed, so in order to avoid disapppointment, book early. i Please complete the booking form available from www.bifm.org.uk/ northcruise, and return to north@ bifm.org.uk to confirm attendance

MEMBERS

New members The following organisations joined BIFM as corporate members: FM suppliers: Andrew Porter BAM FM C&M Waste Management Care Facility Management Mitie Business Services UK SPP Pumps VFA Product suppliers: Crtical Power Supplies In-house FM team: Lancaster University The following joined the institute as group members during February: John Lewis Partnership Monteray Ltd www.bifm.org.uk/groupmembership

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BIFM EXECUTIVE

BIFM Head Office news The BIFM Board has decided to make structural changes in efforts to streamline the business. This involves removing the position of Director of Professional Standards & Education and Director of Corporate & Public Affairs. To read more about the announcement regarding Valerie Everitt, Director of Professional Standards & Education, visit www.bifm.org.uk/ psenews and for Richard Byatt, Director of Corporate & Public Affairs, visit www.bifm.org.uk/ cpanews For more info visit www.bifm.org.uk

BIFM TRAINING STRONG STAFF IN A FRAGILE ECONOMY

espite tightened budgets and a trend towards downsizing, organisations are increasingly relying on their existing staff. Business growth will be hard won in this fragile economy, so what can you do to keep ahead of your competitors?

Remember these budget cuts are universal, so your client’s allocation will be affected as well. The customer will therefore be expecting a ‘more-for-less’ service and there’s a danger they will seek better value elsewhere if they cannot get it from you.

This makes maintained or even increased investment into training and development of individuals and teams in your organisation a crucial exercise. Organisations must avoid the typical knee-jerk reaction of slashed training budgets if they are to avoid falling behind their competitors. This year, the BIFM Awards has a new category for learning and development, to recognise organisations showing a sustained commitment to learning and development despite the economic conditions.

D

SKILLZONE

BIFM SkillZone discount Did you know that BIFM members are entitled to a 32 per cent saving on all BIFM SkillZone courses?

This means that each course costs just £65+VAT. These courses bring learning opportunities to your fingertips, so you can fit learning into your busy day. The courses cover key business skills that FMs have to employ: 1. Thinking strategically* 2. KPIs* 3. Making budgeting work in the real world* 4. Managing professionals for results* 5. Conversation with customers 6. Innovation 7. Advanced negotiation 8. Negotiation skills: the principles SkillZone is the BIFM’s interactive online learning portal, learn more at www.bifm.org.uk/skillzone (*Most requested courses) i

BIFM Training’s Learning & Development Services Improving your team’s performance may be more than a question of developing new skills and knowledge, however. We’ve worked closely with hundreds of organisations in both the public and private sectors, in the UK and overseas, to support change programmes and address wider HR issues, such as talent management, succession planning, and L&D planning; we’re highly experienced at introducing professional FM competencies and can work with your key stakeholders to embed industry best practice in your HR processes and procedures. Our customised in-house solutions can include blended learning, coaching and mentoring in addition to carefully targeted training delivery – all designed to harness the best of BIFM Training’s expertise alongside your own internal learning programmes.

ILM Level 2 Award in Team Leading This nationally recognised qualification will help you get the most out of your FM team. It is designed to give aspiring and practising team leaders a solid foundation in their development. The programme provides a range of tools and insights in order to self-manage while successfully leading others. After BIFM Training’s threeday Team Leading course, delegates are awarded the ILM Level 2 in Team Leading, following successful completion of segment reviews and work-based assignments. i The next Team Leading course takes place on 31 May in central London. For further information on any of our courses and services, please contact BIFM Training on 020 7404 4440, email info@bifm-training.co.uk or visit www.bifm-training.com

www.fm-world.co.uk

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§

FM DIARY NATIONAL BIFM EVENTS 18 June ThinkFM 2012 ThinkFM will be a day of learning, debate and networking, with new features, such as site visits.

Venue: Royal College of Physicians, London Contact: conference@thinkfm.com or call 08701 632 804 12 July 2012 BIFM Annual General Meeting (AGM) 2012 Details will be posted at www.bifm. org.uk/AGM2012 and the AGM presentations will be available from 13 July.

Venue: Redactive Publishing (publishers of FM World), 17 Britton Street, London Contact: sharon.mcKenzie@bifm. org.uk or call 0845 058 1356. Visit www.surveymonkey.com/s/BIFM_ AGM12 to register 8 October BIFM Awards 2012 The BIFM Awards are designed to celebrate the increasingly strategic profile of FM by highlighting its role in the success of public and private sector organisations.

Venue: Grosvenor House Hotel, London Contact: communications@bifm. org.uk or call 0845 058 1356 SCOTTISH REGION 17 April Hot topic expert panel – HR issues Question our panel on subjects including: recruitment, TUPE, CV’s, performance management and agency staff. Confirmed panel members include: Alison French, Director with Brightworks; Cedric Fyffe, Regional Business manager with Hays, Lynn Ferguson, HR Consultant.

Venue: City of Glasgow College, North Hanover Street, Glasgow Contact: mkenny@fesfm.co.uk or call 07920 136 784 8 May Breakfast meeting – Procurement in FM Venue: Hampden Park, Glasgow Contact: mkenny@fesfm.co.uk or call 07920 136 784 12 June AGM and prestige building visit The event will include a talk from a FM provider and/or client.

Venue: TBA Contact: mkenny@fesfm.co.uk or call 07920 136 784 www.fm-world.co.uk

41_Diary.sr.indd 37

Send details of your event to editorial@fm-world.co.uk or call 020 7880 6229

12 September National Golf Finals social event A tour of some of Edinburgh’s finest hosteleries in conjunction with the BIFM national golf finals the following day at Dalmahoy Golf and Country Club. We would be delighted if members would join us in showing our fine scottish hospitality to the participating teams from throughout the UK. Venue: Mariott Dalmahoy Golf Course, Edinburgh Contact: mkenny@fesfm.co.uk or call 07920 136 784 28 September Annual conference and exhibition Following on from the success of the 2011 conference, a request is being made for submissions regarding headline sponsorship, topic presenters and exhibitors for the event. The theme has still to be agreed, so at this time any topic will suffice.

Venue: Our Dynamic Earth, Edinburgh Contact: mkenny@fesfm.co.uk or call 07920 136 784 29 September Scotland Region social evening General knowledge, music and FM quiz.

Venue: TBA Contact: mkenny@fesfm.co.uk or call 07920 136 784 13 November Building visit and presentation The topic is Venue: Morris & Spottiswood HQ and RBS HQ Gogerburn, Edinburgh Contact: mkenny@fesfm.co.uk or call 07920 136 784 NORTH REGION 16 May North Region golf day We invite you to join us for our North Region golf day. We encourage BIFM members, corporate members and their guests to take part in this enjoyable day at the Oaks Golf Club. The event is open to a maximum of 64 golfers who will all start together at 1pm.

You can enter as an individual and we will group you, or you can enter as a team of four.

Venue: The Oaks Golf Club, Aughton, York Contact: ian.burgin@ norlandmanagedservices.co.uk or call 07779 145 470

HOME COUNTIES REGION 26 April FM in FM – knowing the numbers Venue: Hilton Hotel, Newbury Contact: jane@fmtutor.co.uk or call 07799 033 341 21 June FM beyond our borders Venue: TBC Contact: jane@fmtutor.co.uk or call 07799 033 341.

LONDON REGION 24 April BIFM training conference – building surveying and maintenance This is an opportunity for managers to ensure that they are up to date and to learn how to improve liaison with the key parties, including contractors.

Venue: Central London Contact: Kay Bain at info@bifmtraining.co.uk or call 020 7404 4440 INDUSTRY EVENTS 17–18 April FM and property event.

The event explores the challenge of remaining relevant against the changes brought about by things such as technological advances.

Venue: The Celtic Manor Resort, Wales Contact: Leighhussain@ globalbusinessevents.co.uk or call 01633 225 040 25 April 2012 BIFM training conference: flexible working Venue: Central London Contact: Kay Bain at info@bifmtraining.co.uk or call 020 7404 4440, www.bifm-training.com/ bifmConferenceFS.htm 9-10 May Green Build Expo This event will be covering everything from training opportunities to renewable technologies.

Venue: Manchester Central Convention Complex Contact: www.greenbuildexpo. co.uk 15-17 May Facilities Show Visit the Facilities Show to celebrate the industry, benefit from free education and CPD content, and meet with over 250 exhibitors and over 850 suppliers.

Venue: NEC Birmingham Contact: Registration opens soon.

Visit www.facilitiesshow.com

15-17 May Safety & Health Expo The event will be packed full of the industry’s leading manufacturers, distributors and suppliers showcasing their latest innovations.

Venue: NEC Birmingham Contact: safety-health-expo.co.uk 22 May 2012 BIFM training conference – building surveying and maintenance Venue: Central London Contact: Kay Bain at info@bifmtraining.co.uk or call 020 7404 4440, www.bifm-training.com/ bifmConferenceFS.htm 23-25 May BCO conference Venue: Manchester Central, Petersfield, Manchester Contact: www.bco.org.uk 25-26 June 31st Facilities management forum Venue: Heythrop Park, Oxfordshire Contact: Mick Bush at m.bush@ forumevents.co.uk or call 01992 374100 28 June World FM Day 2012 The annual event aims to raise the FM profession’s profile around the world.

Venue: Worldwide Contact: Visit www.globalfm.org for more details 12-13 September Office Interiors A new trade exhibition for the UK’s office interiors industry.

Venue: Olympia Exhibition Centre Contact: For information and to enquire about exhibiting, please contact Ali Mead at amead@ divcom.co.uk.

9-10 October Total Workplace Management Total Workplace Management is the ideal place to meet face to face with leading professionals from across the industry.

Venue: London Olympia Contact: Visit www.twmexpo.com for details 31 October – 2 November IFMA’s World Workplace World Workplace is hosted by the International Facility Management Association, the organisation that has supported, represented and defined facility management for the past three decades.

Venue: San Antonio. Texas, US Contact: www.worldworkplace. org/2012 FMFM WORLD | 23 FEBRUARY 2012 | 37 WORLD | 22 MARCH 2012 | 41

15/3/12 16:02:37

FM PEOPLE MOVERS & SHAKERS

BEHIND

THE JOB How did you get into facilities management and what attracted you to the industry?

I used to be a military wife and through this I gained an understanding of how properties are managed, such as being escorted around the building on inspections.

I learned more about it and eventually got a job managing the company houses of a global oil company based in the East of England. I enjoyed being able to work in a diverse range of services

NAME: Ann-Marie Mitchell JOB TITLE: Principal operations manager ORGANISATION: Amey JOB DESCRIPTION: Managing business support functions across 30 approved premises.

This includes soft services, continuous improvement and delivering Purposeful Activity programmes for people on licence from prison. Activities involve a range of life skills programmes, from cooking and cleaning to operating gardening projects.

What attracted you to the job?

I have worked in FM for 20 years, working in public and private sector organisations. I used to manage services to 30 approved premises and I enjoyed the challenge of working in this environment. This understanding helps me plan ways in which to help rehabilitate offenders and help them integrate back into society, either through employment or simply independent living.

What has been your biggest career challenge to date?

I previously worked as client services manager of approved premises. My team and I had to manage unpredictable and unexpected issues at any time because the facilities are operational 24-hours-a-day and 365 days a year. What is normally a basic job, such as changing a light bulb, becomes more complicated when it’s needed in a resident’s room.

Every job has to be planned carefully to maximise security and personal safety.

If I wasn’t in facilities management‌ I’d Probably be in interior design, learning more about horticulture.

If you could give away one of your responsibilities to an unsuspecting colleague, what would it be?

I don’t think I would give away any, as we all try and work as a team and when the chips are down we help each other whenever possible.

Which single piece of advice would you give to a young facilities manager starting out?

I would advise them to network across all areas of the business, essentially, both up and down the line and, if time allows, a day shadowing your teams to see what challenges they are facing.

If you could change one thing about the industry, what would it be?

Get rid of anyone that says: “We’ve always done it that way.� We all know clients want to save money, and as experts in our field we should achieve this through continually introducing new ways of thinking and innovations.

Which FM myth would you put an end to?

The perception that FM companies don’t understand the business operations of other organisations. There is a wealth of expertise and diversity across all areas within the FM business.

Help us shape the next 125 years.

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Johnson Controls Global WorkPlace Solutions is a leading provider of facilities and commercial real estate management for many of the world’s largest companies. Our employees across the world have delivered more than $3 billion in savings for our customers over the last 10 years.

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We have opportunities in South Africa for facilities management and workplace professionals looking to develop their careers. If you would like to help us deliver innovative solutions and high-value support to our global clients please visit our website www.johnsoncontrols.com/careers to view current opportunities and register for future alerts.

Our Level 3 Value-Adding Supplier BBBEE status demonstrates our commitment to the socio-economic transformation of South Africa.

www.fm-world.co.uk

15/3/12 13:49:42

FM NEWS

Call Adam Potter on 020 7880 8543 or email adam.potter@fm-world.co.uk For full media information take a look at www.fm-world.co.uk/mediapack

FM innovations ▼ Net2 Anywhere opens doors remotely

▲ CCM scores at Fulham

Access control company Paxton has released Net2 Anywhere, which allows remote site monitoring via the Net2 Anywhere iPhone app or the Net2 Anywhere.com site.

Net2 Anywhere.com allows customers to view events, reports and users. Through it, staff and visitor movements can be seen, as well as who clocked in.

Also, new users can be added remotely.

Net2 Anywhere iPhone apps are £2.99 each and include open doors and roll call functions.

Polhill Garden Centre in Sevenoaks uses both Net2 Anywhere and the iPhone apps to manage the site, which employs 200 staff.

Polhill Garden Centre director Mark says: “It’s now integral to the smooth day-to-day running of Polhill.

Net2 Anywhere has certainly made our lives easier.”

For more information, visit: W: www.paxton.co.uk

▲ Your security is our business

Contract Cleaning and Maintenance Ltd (CCM) is top of the cleaning league as it scores a contract for Fulham Broadway retail centre.

Centre manager Gary Blackledge said: “CCM was successful with its re-tender as it offered proven value, is proactive, and delivered by a down-to-earth mid-sized contractor.”

CCM has maintained the 18,581 square metre (200,000 square feet) site for its 12 million visitors since 2008. Work takes place 24/7, with washrooms being serviced every 15 minutes. Its activities also include floor cleaning and waste management.

The centre incorporates a tube station’s exit and on match days, there is increased pedestrian traffic.

For further information contact David Holman, development director. T:07917 456401 E: dholman@ ccml.biz W: www. ccml.biz

Lapa Security is a high quality, man-guarding company. It provides professional security personnel and consultancy to static fixed sites or high-end retail to events or functions. Lapa security also provides full management back up and understands the need to be cost effective without compromising standards.

Services include: front of house reception security, concierge and porters; static security for building sites; vacant property house sitters; distribution and waste management site security; corporate guarding; high-end retail security; event and function security, close protection and qualified security dog and handlers.

For specific requests and quotes contact: T: 01322 615271 F: 01322 615954

▼ Ecophan’s sound absorbing ceilings Philips and Ecophon, a leader in sound-absorbing ceilings, have collaborated to create Soundlight Comfort, an innovative acoustic ceiling panel integrated with LED lighting from Philips.

Studies show that in good acoustic environments people work more efficiently.

The free-hanging ceiling panels with energyefficient lighting absorb sound in offices. The panels are office compliant and reduce ceiling clutter with a minimalist look.

The solution is particularly designed for buildings with Thermally Activated Building Systems (TABS), which retain heat and can cool the building and are greener. It requires exposed ceiling structures so Soundlight Comfort is the perfect solution.

W: www.philips.com W: www.ecophon.com

▲ John O’Conner rangers granted powers

▲ Wilson Vale celebrates a decade

National grounds maintenance company John O’Conner will make the St Albans parks even safer, thanks to powers given to its park rangers in tackling anti-social behaviour and underage drinking.

In May 2010, Hertfordshire Constabulary accredited four park rangers enabling them to request the name and address of those involved in anti-social behaviour.

The powers have been extended to enable six rangers to confiscate alcohol from suspected underage drinkers.

All rangers now have radio links to the police throughout park opening hours.

Matt O’Conner, managing director said: “Our teams spend their days making the parks pleasant places and these new powers help them with this.”

Contact T: 01438 717175 W: www.johnoconner.co.uk

Independent caterer Wilson Vale celebrates its tenth anniversary with three new contracts wins.

Wilson Vale won a five-year contract worth over £1 million in collective turnover with the Beacon School in Buckinghamshire.

Since January, it has been catering for the school’s 469 boys and 91 staff.

Its portfolio of independent schools includes the Priory School in Birmingham, The Mount School in York and Hipperholme in Halifax.

Last year, Wilson Vale opened over £1.5 million worth of new business within the pharmaceutical sector alone.

Wlson Vale employs 550 people across 70 catering operation, with an annual turnover of £15 million

www.fm-world.co.uk

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Appointments

Call Carly Gregory on 020 7324 2755 or email jobs@fm-world.co.uk For full media information take a look at www.fm-world.co.uk/mediapack

A rare opportunity to join an award winning team!

FM Sales Professionals - London Cofely, a GDF SUEZ company is a leading provider of facilities, technical and energy services across Europe. As part of our continued plans for growth, Cofely are seeking to expand the London sales team to develop the key strategic London market.

The ideal candidate will have a:

+ighly motivated amEitious approach Successful, proven track record of sales performance +igh level of time management skills First rate market knowledge of the F0 and Energy Services industry AEility to develop and maintain key Eusiness development relationships

,n exchange, Cofely offer a dynamic working environment, an excellent re numeration package and genuine career development opportunities for the successful candidates. If you think that you have the focus, drive, commitment and energy to help us achieve our aims, please forward your C9 to enTuiries#cofely gdfsue].com Cofely welcomes applications from all Eackgrounds and sections of the community. :e offer eTuality of opportunity and follow practices which are free from unfair and unlawful discrimination.

www.cofely.co.uk

Recently qualified in Building Services, Engineering or allied discipline?

Want some real responsibility?

Post Graduate Business Development Opportunities London & Amsterdam • Attractive salary plus benefits and bonus GSH founded in 1885; is a leading provider of technology-driven energy and facilities management solutions for major blue-chip clientele across the UK, mainland Europe, Ireland, USA and India. We are expanding rapidly in the provision of contract energy management and carbon reduction services, providing clients with risk transfer and guaranteed exposure.

Our clients’ buildings are modelled to assist choices of renewable energy applications. Ecological footprints are computed to assist best environmental practice, staff recruitment, motivation and retention.

We are now seeking to employ ambitious London and Amsterdam based 'professional - post graduates' who wish to take on real responsibility. You will have already proven yourself and gained a good grounding in your first role and will now be looking at this opportunity as your next career move.

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FM New appoints 220312a.indd Sec1:44

Business development experience is required and it must be at the core of your beliefs. A willingness to travel internationally is desirable.

We have a policy to promote from within and you will be seeking to attain a Board position and become established within the industry as a “high flyer”.

You will be qualified to degree level in Building Services or allied discipline.

You will have obtained or be working towards corporate membership of CIBSE, RICS or an applicable professional qualification.

In the first instance please send a CV and a one page covering letter explaining how you meet our requirements in absolute confidence to: Joe Sidley, Recruitment Manager, GSH Group, GSH House, Forge Lane, Stoke-on-Trent ST1 5PZ. Or Email joe.sidley@gshgroup.com with the heading of ‘Graduate Opportunity’. If you would like to informally discuss any of these roles please contact Joe Sidley on +44 (0) 1782 200 400.

jobs.fm-world.co.uk

15/3/12 16:42:36

For an informal chat about this exceptional opportunity in a fantastic part of the South West, please call Louise Turner on 01752 388376 or visit the website at: http://www.plymouthcommunity homes.co.uk/working-for-us for more information about the role and to download an application pack or to complete an application form online.

Is juggling one of your strengths?

If so, then read on because this job could be exactly what you are looking for...

(Facilities Manager £36,082 per annum) Ref: PCH/2012/36 Plymouth Community Homes, the largest housing association in Plymouth, is looking for a Facilities Manager to join our existing property team. This is a fantastic time to join the organisation and this role offers the opportunity to become part of a special company which has an exciting future ahead.

As the FM, you will be managing the refurbishment of and relocation to our recently purchased new headquarters - 80,000 sq ft of office space and over four acres of grounds. As part of this property transformation programme, we’ll be consolidating our office premises and you’ll be negotiating the exit strategies from many of our current leased offices.

You’ll You’ need to be a true people person as you’ll be meeting the needs of colleagues c from a wide range of disciplines across the entire organisation.

With the help of the Head of Property & Safety, you’ll also be overseeing ‘hard’ and ‘soft’ FM services which involves a mix of both in-house and outsourced o teams.

As you’ve probably guessed, there will be no standing still in this job and your hands-on role will involve juggling many tasks and priorities on a daily basis. This role offers enormous scope for development and we want to talk to candidates who have the skills, enthusiasm, and sense of humour to succeed in this challenging role and are prepared to invest 110% in helping to shape our future.

Offices in: Abu Dhabi, Auckland, Berlin, Düsseldorf, Frankfurt, London, Manchester, Melbourne, Singapore.

www.cobaltrecruitment.com

FM Opportunities Regional Manager | North & South £45,000 - £55,000

Health & Safety Officer | West London Up to £32,000

We have various new positions UK wide for TFM Regional Managers to work in the commercial sector of an FM Service Provider. You will have overall operational delivery of hard and soft services within a specific geographical region, in order to lead regional contract performance and the operations team and respond to issues raised by the client and senior management team. You will have full P&L responsibility.

Ref: 1044800

This role will support the Property/Estate Management teams in all matters relating to health and safety across a commercial estate in West London. This position requires NEBOSH Certification and extensive knowledge of H&S legislation related to commercial property including fire safety, occupational health and CDM regulations. Experience working alongside within property/ building management teams is essential.

Ref: 1043800

National Director of FM | London circa £80,000

Operations Manager | North & South £40,000 - £50,000 We are looking for excellent Operations Managers UK wide to join a high profile contract within a service provider and take responsibility to ensure KPIs are being met. This will involve regular monitoring and auditing ensuring H&S compliance, hard and soft service delivery and helpdesk response time is all running smoothly. You must be pro-active and able to make quick decisions.

Ref: 1044900

London office

jobs.fm-world.co.uk

FM New appoints 220312a.indd Sec1:45

Our client, a leading managing agent, currently seeks to employ a proven and experienced National Director of Facilities Management. Operating at Senior Director level you will be responsible for running the FM team on a National basis and setting the strategy for FM delivery within their Property Management function. You will take on national responsibility for FM procurement, H&S and ongoing assessment of FM delivery to ensure the organisation retains a market leading approach.

Ref: RC/25115

To apply for any of these roles please email your CV in confidence to info@cobaltrecruitment.com or call +44 (0)207 478 2500 to speak with Claudio Rojas or Ryan Coombs.

FM WORLD | 22 MARCH 2012 | 45

15/3/12 16:37:23

FINAL WORD NOTES FROM AROUND THE WORLD OF FM

NO 2

DAYS

THE SAME GIVEN THE BIRD

BEES, PIGEONS, FIRE ALARMS… Here's another selection of tweets from FM coach Liz Kentish ,who asked her followers: what’s the strangest request you’ve ever had as an FM? Here are some of the best responses. (Tweet @FMCoach with yours and we'll run the best here.) ● "Can you please send an engineer

(who incidentally may have to travel up to four hours) to catch the bee buzzing around my office?" ● "Can you free the trapped pigeon in

the empty building next door?" ● "Sir, your plant rooms are vibrating

– have a nice day", from a US-based helpdesk at 2.30am. ● A call out from site: "The alarm

isn’t sounding at building X – can you please check?" The building had been demolished the previous month. ● "Instead of leaving pancakes for

all staff in the canteen, which means some might miss out, can you take them round to each of our 350 staff?" ● "Please install six fire throwers

in reception." ● "Can you remove a lecturer and

student from the creek?" ● During a genuine fire alarm: "Can

we stay in for another 30 minutes so the students can finish their exam?" ● “I'm working night shift. Please stop

'your' (baby) seagull from screeching.”

It’s the kind of thing that gives procurement a bad name – or at least, that’s how it looks on the surface.

Last week the Metro newspaper reported on how the uninhabited Scottish island of Handa had been given a £50,000 toilet. And not just any toilet, a ‘state of the art’ toilet, no less. The paper pointed out that no one has lived on the island for more than 150 years. What it didn’t choose to major on was the actual requirement: it turns out that there's a regular

audience of 6,000 bird watchers who flock (sorry) to Handa each year to watch the island’s resident puffins, great skua and guillemots.

"It was a challenging project,” said architect David Somerville. “The winds are so strong on Handa that the building needed to be made with steel to hold it down."

So what starts out as a comical misuse of public money turns out to be a heartwarming story of sensible facility procurement, after all.

SOUND PRINCIPLES According to Michelle Rodwell of Ambius, our emotional equilibrium is rattled when we hear heavy foot traffic sounds, outside street noises, or loud talking, whether we are in a restaurant, hospital waiting area or any commercial building where people congregate en masse.

Rodwell references a study by the American Society of Interior Designers, which suggests that as many as 70 per cent of workers believe that they could work more efficiently if their workspace were quieter.

Kankakee, Illinois-based Riverside Medical Center wanted its patients, staff and visitors to have a calm oasis in its lobby, which features a refreshment station

and waiting area. To soften the auditory impact of foot traffic and the adjacent busy escalators, Riverside installed acoustic art (pictured) with the image changed to reflect each season.

Acoustic art features images that are printed on a special material that can absorb as much as 95 per cent of the sound hitting it compared with about 3-5 per cent that is typical of a bare wall.

The material used for an acoustic collection is lightweight, recyclable and fire-resistant. "The acoustic art in our hospital not only looks beautiful, but it has reduced noise by 10 decibels, which makes for a more tranquil and healing environment,” said Phillip M. Kambic, president and CEO of Riverside Medical Center.

CHECKING IN So this is what happens when office relocations go wrong: an employee of Rhode Island capital recently discovered 186 un-deposited cheques valued at a total of $334,000 (£211,045) in a box at the city's Department of Inspection and Standards.

The cheques were meant for deposit in the city coffers to pay for fire department inspections and

permit fees and the box may have been misplaced as a result of understaffing (the headcount of Rhode Island's public sector has been cut by 15 per cent in the past year.) Those cheques still valid will now be deposited, but others may have to be reissued having been signed more than a year ago. You have to wonder why no one had noticed until now.

IN THE NEXT ISSUE OUT 5 APRIL

THE PSYCHOLOGY OF FLEXIBLE WORKING – CAN COMPANIES EXPECT STAFF ACCEPTANCE? /// CASE STUDY – HEATHROW TERMINAL 5 /// PROCUREMENT ROUND TABLE PART TWO /// PROVIDING THE 'THIRD SPACE' /// FM WORLD SALARY SURVEY /// INNOVATIVE WASTE MANAGEMENT AT UCL /// THE LATEST NEWS, ANALYSIS AND COMMENT

46 | 22 MARCH 2012 | FM WORLD

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www.fm-world.co.uk

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