CRE A Future View - CoreNet Global · 2 1 week crowdsourcing and audio debates in Jan 2012 ... • Assemble and catalyse multi-faceted and cross-border/ cross-organisational networks

Prof. Dr. John Hinks,

Global Head of Innovation [email protected]

Peter Geu

Head of Corporate Real Estate

& Facility Management

Central Europe [email protected]

CRE&FM

Zurich Insurance plc

Disruptive thinking…

CoreNet Discovery Forum

4th June 2013, Zurich

CRE – A Future View

mailto:[email protected]


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”.

[email protected] and [email protected]



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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?”




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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


• 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




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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


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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


Client


Partnerships

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Market Differentiation

10


• 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


Client


Partnerships

Sourcing Process

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Knowledge Management

11


• 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


Client


Partnerships

Sourcing Process





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


Client


Partnerships

Sourcing Process



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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


Client


Partnerships

Sourcing Process



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


Client


Partnerships

Sourcing Process


Value Based Pricing


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


Client


Partnerships

Sourcing Process


Value Based Pricing


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


Client


Partnerships

Sourcing Process


Value Based Pricing


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


Partnerships

Sourcing Process


Value Based Pricing


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


Client


Partnerships

Sourcing Process


Value Based Pricing


Attracting Talent

Risk

Work & Workplace

Globalisation

Sustainability

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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

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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


Rethinking the value and

impact of FM…

New

Combinations


operational Developmental,


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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?




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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


operational

Developmental,


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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




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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.

Documents

CRE A Future View - CoreNet Global · 2 1 week crowdsourcing and audio debates in Jan 2012 ... • Assemble and catalyse multi-faceted and cross-border/ cross-organisational networks