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Prof. Dr. John Hinks,
Global Head of Innovation john.hinks@uk.zurich.com
Peter Geu
Head of Corporate Real Estate
& Facility Management
Central Europe peter.geu@zurich.com
CRE&FM
Zurich Insurance plc
Disruptive thinking…
CoreNet Discovery Forum
4th June 2013, Zurich
CRE – A Future View
INTERNAL USE ONLY
The Futures Forum
2
1 week crowdsourcing and audio
debates in Jan 2012
450 experts from 30 countries across
the CRE and FM industry
“What did they think 2017 might look
like for CRE and FM?”
700 discrete ideas
Debate prompted by sixteen themes
INTERNAL USE ONLY
Business Relevance
3
• No objective way of
evidencing the value
that FM brings to
business.
• Should FM become
part of a reformed and
wider business
services function?
Views
What does the FM
industry need to do to
significantly improve
its relevance to the
enterprise it exists to
support?
Question
Business Relevance
“The core issue is no longer
about buildings or services but
about enabling productivity that
delivers competitive advantages
for your organisation”.
john.hinks@uk.zurich.com and peter.geu@zurich.com
INTERNAL USE ONLY
Customer Service
4
Customer Service
• FM has paid insufficient
attention to the evidence of how
customer value is created or
lost.
• Tomorrow’s differentiator for FM
will become the ability to
conceive of and deliver great
consumer and customer
experiences.
Views
What does the FM
industry need to do,
and how does it need
to change, to
consistently provide a
great experience for
all consumers?
Question
Business Relevance
“if we really want to re-centre CRE
around the quality of customer
experience, does it make sense to
retain the same delivery model?”
john.hinks@uk.zurich.com and peter.geu@zurich.com
INTERNAL USE ONLY
Service Quality
5
Service Quality
• If FM is going to advance
to the maturity level of
other established service
industries, then the quality
and attitude of the people
employed in the service
delivery will be a critical
issue
Views
What does the FM industry
need to change to enable it
to guarantee to its customers
that they are getting the
service quality that they are
paying for?
Question
Business Relevance
Customer Service
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The Intelligent Client
6
Intelligent Client
• Assemble and catalyse
multi-faceted and cross-
border/ cross-
organisational networks
• The key skill sets for
tomorrow’s intelligent client
will be strategic planning,
change management and
adaptability.
Views
What are the characteristics
of a modern FM
organisation that is
successful at aligning with
both the enterprise and
suppliers?
Question
Business Relevance
Customer Service
Service Quality
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Integrated Solutions
7
Integrated Solutions
• Business benefits
must drive the nature
of integration.
• True integration will
be based around
partnerships,
coordinated
processes and data
technology.
Views
How can the industry go
beyond its current
fragmented nature to
deliver truly-integrated
solutions with a value that
is more than the sum of
their parts?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
john.hinks@uk.zurich.com and peter.geu@zurich.com
INTERNAL USE ONLY
Partnerships
8
Partnerships • Ultimately,
partnerships stand or
fall on the approach of
the key people
involved, so a better
future hinges on a
smarter attitude.
Views
What are the
characteristics of the most
meaningful and creative
partnerships and context(s)
in which they will most
likely succeed?
Question
Business Relevance
Customer Service
Service Quality
Intelligent Client
Integrated Solutions
INTERNAL USE ONLY
Sourcing Process
9
Sourcing Process
• No objective way of
evidencing the value
that FM brings to
business.
• Should FM become
part of a reformed and
wider business
services function?
Views
Is the two-stage RFI/
RFP approach to
sourcing suppliers the
most effective way of
achieving today’s vital
relationships?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
INTERNAL USE ONLY
Market Differentiation
10
Market Differentiation
• Attaining market differentiation
and its benefits will require
new business models and new
methods of cooperation, and
that this can only happen if all
stakeholders commit to
investing in it both financially
and personally
Views
Why is there so little
differentiation between
suppliers in the FM
marketplace, also
between FM teams in
different organisations?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
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Knowledge Management
11
Knowledge Management
• Realising the potential
benefits of knowledge
management will
stand or fall on
achieving a
fundamental change
of mindset.
Views
The information that we
routinely capture and use to
manage performance and
inform decisions is often out-
of-date and incomplete. How
can we advance …?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
john.hinks@uk.zurich.com and peter.geu@zurich.com
Attracting Talent
Attracting Talent
• Tomorrow’s FM skills and
experience are selected
by those with yesterday’s
FM skills and experience.
• Success will start with a
rethink of how to make
the industry compelling
and attractive.
Views
How can the FM
industry attract far
more talent?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Knowledge Management
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Value-based Pricing
13
Value Based Pricing
• A fundamental change is
needed to the current
pricing models.
• To achieve value-based
pricing, FM will need to
develop new ways of
articulating intangible value
that cannot be easily
measured using
conventional thinking.
Views
What would a value-
based pricing model
for FM services look
like?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Knowledge Management
Attracting Talent
Globalisation
Globalisation
• One of the key drivers of change
in the FM industry over the last
two decades.
• No consensus that FM.
leadership collectively has the
cultural skillset and experience
necessary to achieve sustained
competitive differentiation
through globalisation…
Views
What value should FM
be generating from
globalisation?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Value Based Pricing
Knowledge Management
Attracting Talent
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The Nature of Work and The Workplace
15
Work & Workplace
• The workplace will continue a
transition to becoming a social
hub.
• Economy of flexibility will
succeed economy of scale.
• FM will need to better
understand what releases
productivity for different people
working on different tasks in
different contexts.
Views
What will ‘work’ be like
and what will the
(unconstrained) office
of the future look and
feel like by 2017?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Value Based Pricing
Knowledge Management
Attracting Talent
Globalisation
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Risk
16
Risk
• It is crucial for FM to fully
understand the business
appetite and capacity for
risk in order to be able to
design and manage the
service resilience
accordingly.
• If not, does FM become
another risk factor for the
business?
Views
What is the true and
full extent of the risks
that FM manages?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Value Based Pricing
Knowledge Management
Attracting Talent
Work & Workplace
Globalisation
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Sustainability
17
Sustainability
• Behaviour change.
• Standards.
• Building and environmental
performance management.
• Knowledge sharing.
• Supplier management.
• But these are all tactical…?!
Views
What should we be doing
together and individually
to meet our moral
obligation across all
sustainability issues?
Question
Business Relevance
Customer Service
Service Quality
Intelligent Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Value Based Pricing
Knowledge Management
Attracting Talent
Risk
Work & Workplace
Globalisation
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Innovation
18
Innovation
• Innovation has become a
fundamental imperative for FM…
• which requires a radical change of
mindset, a culture of openness,
reflection and questioning, and a
focus on how practically to catalyse
and encourage innovation.
Views
How can the FM industry
become more
innovative?
Question
Business Relevance
Customer Service
Service Quality Intelligent
Client
Integrated Solutions
Partnerships
Sourcing Process
Market Differentiation
Value Based Pricing
Knowledge Management
Attracting Talent
Risk
Work & Workplace
Globalisation
Sustainability
INTERNAL USE ONLY
Overall, what did the forum tell us?
19
FM needs to re-centre on
supporting the effectiveness
of people and the
productivity of business?
Advances are required in
strategic capability, also
change management
capability
Plus advances in
integrating services,
systems, and providers
We need disruptive
innovations in
procurement,
partnering and
performance
management
To underpin this we
need a revolution in
KM, R&D, and talent
management
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FM needs a portfolio approach to innovation
20
Problem-led
Solutions-driven
Opportunity-led
Idea-led
Strategic
Innovations
New
Paradigms
Continual
Improvement
Immediate, actualised,
operational
Developmental,
potential, theoretical
Smarter
Operational
Solutions
New
Combinations
INTERNAL USE ONLY
Foundations first
21
Problem-led
Solutions-driven
Opportunity-led
Idea-led
Strategic
Innovations
New
Paradigms
Smarter
Operational
Solutions
Continual
Improvement
Knowhow
Learning Organisations
Management Information
Systems
Service Focus
Innovation in Managing
Integrated Solutions
Rethinking the value and
impact of FM…
New
Combinations
Immediate, actualised,
operational Developmental,
potential, theoretical
INTERNAL USE ONLY
Plus some crucial sustaining innovations
22
Problem-led
Solutions-driven
Opportunity-led
Idea-led
Strategic
Innovations
New
Paradigms
Continual
Improvement
New
Combinations
Smarter
Operational
Solutions
Responding to clockspeed?
Responding to variability?
Developing truly global
service models?
Supporting dynamic
working?
Immediate, actualised,
operational Developmental,
potential, theoretical
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But disruptive innovations matter most…
23
Problem-led
Solutions-driven
Opportunity-led
Idea-led
New
Paradigms
Continual
Improvement
New
Combinations
Smarter
Operational
Solutions
Managing Uptime?
Managing Resilience?
Intelligent Cooperatives?
Managing the Impacts of
Climate Change?
Strategic
Innovations
Immediate, actualised,
operational
Developmental,
potential, theoretical
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FM needs a balance of innovations
24
Problem-led
Solutions-driven
Opportunity-led
Idea-led
Continual
Improvement
Sustain what we do?
Or change what we do?
Strategic
Innovations
New
Paradigms
Smarter
Operational
Solutions
New
Combinations
Immediate, actualised,
operational Developmental,
potential, theoretical
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So, the future of FM?
25
• FM has some opportunities to innovate what it provides by developing
new service dimensions.
• Our recent Intelligent Client and Future Workplace forums indicated
that:
• Designing the future of FM depends on the client and service providers
operating cooperatively – the future belongs to the Intelligent
Cooperative.
• As technological innovations have freed people from the workplace, so
the concept of work has changed. Work is now truly dynamic and
people-centred, it encompasses a broader blend of services within
concepts of wellbeing… so the old building-centric model that has
dominated FM is obsolete. New title needed?
• Furthermore, there are several candidates to lead an integrated new
service (including but not limited to IT and HR); so the existing FM
knowhow is no longer a barrier to entry.
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