Adopting FM in businessp gBruce Melizan, Executive Director at Interserve

Reduce costs

Improve i

Reduce i kBenefits of

Facilities Management

services risks

Enhance sustainability Drive quality

2

The FM Spectrum

Across the Estate By Asset

Planned Regime

Approach Planned Reactive

Critical 70% 30%

Run to FailNon-critical

AssetsCritical Assets

Good 55% 45%

Run to Fail 25% 75%

Logistics - Almost all of your equipment and spare parts are foreign

E i t H id lt i i t h tEnvironment – Humid, salty air is tough on assets

The Caribbean must adopt a more pplanned approach to maintenance

3

Total cost of asset ownership

Space Planning

P i

Utilization

Replacements

Design

ProgrammingSPACE

MANAGEMENTPROJECT DELIVERY

MANAGEMENT

Improvements

Retrofits/ Upgrades

Construction

CAPITAL ASSET MANAGEMENTRetrofits/ Upgrades

Repairs

Planned Maintenance

OperationsOPERATIONS

MANAGEMENT

User Requested Needs

Planned Maintenance

Must be part of your business wide p ystrategic plan

4

A tactical approach - pick and mix

M g d FM S i H d S iS it S iCl i S i

Reception & Customer Porterage, MovesPrint & Business CentresPest Control

Managed FM Services Hard ServicesSecurity ServicesCleaning Services

Catering Services Property Services

Central Support team

W t Di lC ki & T lG d M i t il S i

Hospitality Bus Services

pp

Waste DisposalCarparking & TravelGrounds Maintenance Mail Services

Transport Services Audio VisualArchiving First Aid & Ergonomics

5

A strategic approach – completely integrated

Client Management Team

Property and Facilities

Management

Strategic Asset Investment

and M t

Estate Strategy

Service Management

Direct Delivery

Estate Strategy

Programme Management

Project Procurement ManagementManagement Direct Delivery

Specialist Delivery

Project Procurement

Project Delivery

Project Cost Mngt Fee (%) Fixed Cost / Variable

CAPEX OPEX

6

Business outcomes

Tactical approach Strategic approach

• Tactical real estate decisions

• Reactive to business unit demands

R d di i di

• Strategic corporate real estate planning

• Proactive corporate real estate-led

i i i i • Reduce discretionary spending

• Focus on core businesses

• Improve capital and balance sheet

t

initiatives

• Leverage the best business-aligned

functions

S t b i di iti management • Support business dispositions

• Manage risk-adjusted capital in real estate

Manage to costs Increase efficiency and scalability to support growth

7

Reduce costs

Improve i

Reduce i kBenefits of

Facilities Management

services risks

Enhance sustainability Drive quality

8

Reduce costs

Defence Training Estate, supporting 1% of UK landmass

estate rationalisation yielded £16 7 million estate rationalisation yielded £16.7 million

HSBC, 1,600 retail stores and 120 offices nationwide

significant reduction in costs and improved service levels

Defra, £500 million 15-year sustainable workplace contract

£126 million of annual cost reductions and collective

ownership of Defra property strategy

PRUPIM convergence partnership across 11 shopping centres

£1.5 million of efficiency savings and improved sustainability £1.5 million of efficiency savings and improved sustainability

The Beach Palace estate comprising 56 buildings in Abu Dhabi

Asset data capture and condition survey to develop

maintenance strategy and trend analysis

9

• 51% subsidiary of Landmarc Support Services Services include bookings service, admin and IT support,

Defence Training Estate

51% subsidiary of Landmarc Support Services

• From 2003, 10+5 years

• £600 million

• 120 sites across 10 regions

infrastructure maintenance, rural estate maintenance,

training area management, range operation management,

environmental support, full catering services,

accommodation services, cleaning and laundry services,

tenant and estate management, worldwide targetry support. • 305,555 football pitches (1% of UK landmass)

Operate and maintain• 477 dry training areas

Achievements• 50% reduction in carbon emissions through

tenant and estate management, worldwide targetry support.

477 dry training areas

• 170 small arms ranges

• 124 field firing ranges

• 44 artillery / mortar impact areas

• 16 missile ground attack ranges

• 50% reduction in carbon emissions through

thermal modelling

• 33% reduction in the Accident Incident Rate

• Successful delivery of £2.5million

refurbishment projects• 16 missile ground attack ranges

• 19 simulators across 220,000 hectares

refurbishment projects

• Support 7.5 million man training days a year

Director General at Defence Estates “There is a real commitment by all involved, reflected in the significant enhancements to the services we have already seen As well as improving core services Landmarc has give us the already seen. As well as improving core services, Landmarc has give us the information management tools to manage the estate more efficiently and cost effectively.”

10

• From December 2009 3+2 years Services include: centralised service, helpdesk and From December 2009, 3+2 years

• £200 million

• 1,600 retail and 120 office sites across

• 720,000 square metres

performance centre, building services, fabric maintenance,

cleaning, catering and utilities management, mechanical and

electrical maintenance, front of house services, grounds

maintenance,

• UK, Channel Islands and the Isle of Man

National Service Centre

Achievements• Transferred 2,500 staff under TUPE regulations

• Manage ATM cash machines, retail branches,

• Manage 200,000 telephone calls for HSBC

• 300,000 emails a year for HSBC

• Provide operational flexibility and business continuity

commercial centres, offices, data centres, sports,

social facilities and training centres, along with

headquarters in Canary Wharf and Brickett Wood

training and accommodation centre

• Meet HSBC’s energy efficiency recycling levels

• Also supports FCO, Home Office, LB Ealing and Defra

• Meet HSBC s energy efficiency, recycling levels,

water usage, waste reduction and CO2 targets

HSBC’s global head of corporate real estate, Vivienne Grafton said “This relationship is critical to the smooth operation of our business and to delivery to our customer’s expectations. Interserve has the scale and experience needed to deliver the vast range of services we require and we look forward to working with them.”

11

Reduce risk

Commercial Environmental

Governance and reportingOperational reportingp

12

Drive quality

Technology Whole life managementService levels

Handhelds

CAFM

Reporting

Asset investment

Asset lifecycle

Business critical services

Suite of menus

Service de-scoping

13

Enhance sustainability

Supported reduction of Delivered 60% Supported reduction of

carbon emissions by

10% by 2010, equating

to circa 49,000 tonnes

and £5.4m in energy

Delivered 60%

reduction in carbon

emissions through

environmentally

friendly heating to and £5.4m in energy

costs. camp accommodation

block

Achieved highest

recycling level at 58%

in Manchester Arndale

and 100% of food

t b di ti

Consistently save 30%

- 45% through

sustainability

initiatives such as waste, by diverting

waste from landfill.aerated showers and

electric buggies

14

Improve services

Deliver a high level of Provide a single point of contact for facilities service to

customers

Provide a single point of contact for facilities

Allow customers to focus on their

work

Ensure services meet required service levels

L D li Leverage customer service

expertise

Deliver consistent

systems and processes

Maintain resilient

services for the customerthe customer

15

Service delivery options

Whether you….

In

OR

n-houseO

uutsource

You need to decide your mix of in-house vs outsource

16

Outsourcing can deliver savings

Up to 5 % Year on year savings

15 – 20% Outsourcing service delivery

17

If you do choose to outsourceDecide how much risk

you want to transfertransfer

Fixed vs variable and

the use of the

Keep the measures

i l

Develop an asset

i

LOLsimple

register

B i i t Size and form

Buying inputs or outputs

Short-term or

of the client team

Short term or long-term

18

In summary

Establish a clear understanding of its

assets and their conditioncondition

Understand the true and full cost of

Acknowledge the FM

profession, be full cost of the ‘run to

fail’ approach

pit in-house or

external

Informed debate Link this to your id b i about demand on

your assets and vice-versa

wider business strategy

19

THANK YOUTHANK YOU