Business strategy for fm profectionals 1

Leadership &Business StrategyFor FM Professionals.

Training Programon

Prepared & Presented By :

Mr. Deepak Sahoo

Prepared by :- Mr. Deepak Sahoo , Consultant

Day Plan @ 9th March 2013

Part - 2 Part - 3

Branding & CRM

Competitor Analysis

O & M Segment Strategy

ChangeLeadership

FM Industry

Business Strategy &

Opportunity for Improvement

Part - 1

Lunch Break(12.30 PM – 1.00 PM)

Strategic Gap(2.15 PM – 2.30 PM)

Kindly put your mobile in Silent or Vibrate Mode.

A1


Agenda

FM industries – Origin.

Key challenges for Facilities Manager

Market share and global Market

Middle East and Qatar FM Industry

Change & Leadership.

Business Strategy

Strategies for O&M Segments, Marketing, Branding

CRM, Data Security & Competitor Analysis.

Potential and Risk Management.

A2

AboutFM Industry& Future Growth.


Mr. Deepak Sahoo

Part – 1 - A


Define FM.

FM is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hospitals, hotels, office complexes, arenas, schools or exhibition centers.

However, there are differences in definition of FM depending on different regions around the world.

01


Building Services vs. FM

Building Services

Facility Management

or

Facilities Management

Facility Management' tends to mean the management of a 'facility', for example ahospital or office complex, whereas 'Facilities Management' refers to a broaderrange of activities. Facilities Management is generally interpreted as 'FM' in theUS, Australia, UK and across much of Europe. Where as in APAC & MENA regionmost of the peoples calls Building Services rather facilities management (FM).

But the trends are changing rapidly.

02


What is Facilities Management ?

According to the International Facility Management Association (IFMA), facility management is:

“A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people,

place, processes and technology.”

The European facility management association (EuroFM ) uses the EN15221 definition. Which was provided by the European Committee for Standardisation (CEN, French: Comité Européen de Normalisation).

"(the) integration of processes within an organization to maintain and develop the agreed services which support and

improve the effectiveness of its primary activities."

Source :- http://en.wikipedia.org/wiki/Facility_management

03


ISO Standards for Facilities Management.

Currently a project is underway to develop an ISO standard that defines FM on a global level which is being led by the British Standards Institute represented by Stan Mitchell, former chairman of BIFM and Global FM.

The ISO Standard for FM Industries expected to release before 2015.

Some of the Asset management company currently using PAS – 55. The standard was originally produced in 2004 by a number of organizations under the leadership of the Institute of Asset Management (IMA) and was released in Dec 2008 as PAS 55:2008

Source :- wikipedia

04


Transformation of offices

Offices in 1970’s Vs. Today offices

05


FM Origin - Details

In 1960 Herman Miller created the Herman Miller Research Corporation under direction of Robert Propst; the inventor of the Action Office that evolved into the cubicle office furniture system.

In 1978, Herman Miller Research Corp. hosted the conference “Facility Influence on Productivity". The Facility Management Institute (FMI) was formed.

In 1980, the National Facility Management Association (NFMA) was organized in the U.S., largely from the Herman Miller Action Office user group. FMI provided first NFMA staff.

In 1982, facility managers from Canada became members of NFMA and the name was changed to International Facility Management Association (IFMA).

07


FM Origin - Details

In 1986, IFMA Released First Official Statement on Facility Management and defines FM job responsibilities.

In 1986, the Association of Facilities Management (AFM), now the British Institute of Facility Management (BIFM), was founded in the United Kingdom.

In 1987, the Japan Facility Management Promotion Association (JFMA) was established in Japan.

In 1991, IFMA Defines Competencies.

Institute of Asset Management (IMA) had released PAS 55:2008 in in Dec 2008 which was originally produced in 2004.

In 2009, IFMA Redefines Competencies.

Currently a project is underway to develop an ISO standard that defines FM on a global level. This project is being led by the British Standards Institute represented by Stan Mitchell, former chairman of BIFM and Global FM which is expected to come before 2015.

08


Competency area defined by IFMA.

1. Communication : - Communication plan and processes for both internal and externalstakeholders.

2. Emergency Preparedness and Business Continuity :- Emergency and risk managementplans, procedures.

3. Environmental Stewardship and Sustainability:- Sustainable management of built andnatural environments.

4. Finance and Business :- Strategic plans, budgets, financial analyses, procurement

5. Human Factors:- Healthful and safe environment, security, FM employee development.

6. Leadership and Strategy:- Strategic planning; organize, staff and lead facility organization

7. Operations and Maintenance:- Building operations and maintenance, occupant services.

8. Project Management:- Oversight and management of all projects and related contracts

9. Quality:- Best practices, process improvements, audits and measurements

10. Real Estate and Property Management:- Real estate planning, acquisition, disposition.

11. Technology:- Facility management technology, workplace management systems.

09


Target Audience for FM Industry.

Retail & Shopping

mallsIT & BPO

Big Corporate

House

Banks & Financial

Companies

Convention center

Manufacturing Companies

Real Estate companies

SEZCollege

Universities

Large Hotels

Museum Ports & Airports

10


Fast Facts : FM

Global Construction 2020 report which was sponsored by PwC andcarried out by Global Construction Perspectives and Oxford Economicspredicts that global construction will grow by 67% from USD 7.2 trillionto USD 12 trillion annually by 2020

In Middle East and North Africa (MENA) region a total of USD 4.3trillion is forecast to be spent on construction in the region over the nextdecade, representing growth of 80% to 2020.

In the decade from 2010 to 2020 the average construction growth willbe 13 % on year to year basis in GCC region.

According to Global Industry Analysts research report the global marketfor FM outsourcing is projected to touch US$394.7 billion by 2017.

It has been estimated that the initial development cost of a facility isonly 20% of the total money spent across the lifetime of a building withFM and maintenance making up the remaining 80%.

11


Fast Facts : FM

In 2012; the outsourced FM sector in the GCC region reached avalue of USD10 billion, according to a study conducted by ArabBusiness Review.

Markets such as Qatar, Libya and Algeria will finance most oftheir own investment from oil and gas revenues and Qatar will bethe fastest growing market around the world.

Qatar will spend over 150 billion USD for developing rail, roads,water and other infrastructure in preparation for hosting the 2022FIFA World Cup.

The Outsourced FM industry will grow at 22% in Qatar where asin GCC 18%, globally 13% and less than 4.1% growth in maturemarkets such as Japan & North America.

12


Upcoming Infrastructure projects in Qatar

New Doha Port, Cost $ 7.4 bn, 2016

Hamad international Airport, Cost $ 17.5 bn, 2015.

Lusail City, Cost $ 45 bn, 2020

Stadiums (9 Numbers), $ 4 bn, 2015 to 2019

IRDIS, $ 2.5 bn, 2018

Msheireb, $ 6.4 bn. 2016

Al-Waab City, $ 2 bn. 2015

Doha festival City, $ 1.6 bn. 2016

Integrated Rail Project, $ 36 bn., 2019

Apart from this near about $ 3 bn. will be spend by QP, Qatar Govt, 17 public sectors companies for their headquarters and other offices.

Source :- Gulf times; Dated 28th Feb 2013

13


FM Industry : Organized Vs. Unorganized

14%

86%

Organise

Unorganised

Source :- AMA Research Study

14


Size of Companies in FM Industries.

81%

12%

4%

2%

1%

1 to 20 employees

20 to 50 Employees

50 to 200 Employees

200 to 500 Employees

500 + Employees

Source :- Annual Business Enquiry, 2011Note :- Numbers don’t sum due to rounding.

15


Various Segments in FM Industries.

Property services

Cleaning services

Security services

Catering services

Support services

FM Services

FM Industry Segment

16


Pest

Control

Sub Segments of Property Services

MEPBuilding

Maintenance (Civil)

IT

PROPERTY SERVICES

LandscapingDamage Control

17


FM Industry Segment

The FM industry is comprised of six main service types:

Property services include maintenance of buildings, climate systems, electrical and mechanical services, information technology and communication systems, landscaping, damage control and pest control.

Cleaning services include traditional cleaning of offices, factories, hospitals, transport hubs and specialized cleaning of windows.

Security services include manned guarding and installation and maintenance of electronic surveillance systems. The market for security services is considered fairly consolidated.

Catering services include the operation of canteens and concessions for customers. The market for catering services is considered fairly consolidated.

Support services include the operation of call centers, reception and mail room services within a client’s facilities, but exclude temporary staffing services where the provider does not manage the temporary staff.

FM (Consulting )services include such as on-site management of FM, change management, space management and consulting.

18


Market Share of each Segments in FM.

34%

23%

15%

15%

11%

2% Property services

cleaning services

security services

catering services

support services

FM services

Source :- Market Intelligence Report 2011

19


Types of Service Providers in FM.

Single service providers

Bundled service providers

Integrated FM (IFM) service providers.

Only provide one segment or Sub segment services.

Provide more than 2 segments services.

Provide all 6 segments services.

20


Evans ratio in FM industry

A Detailed study by School of Construction Management andEngineering, Observed "Evans ratio" in building Service segment waspractically impossible to reproduce the 1:5 ratio and being approximately1:0.4

1: 0.4"If the initial construction costs of a building is 1, then itsmaintenance and operating costs (salary of people included) overthe years is 0.2 to 0.4. where as from company to company it canvary another 10 to 30%.

Source :- wikipedia

21


FM :: Who is a facilities manager?The description of a FM manager varies depending on the region of theworld in which you work, given that there are various definitions. Thevarious areas facilities managers work in :-

People Management

Working with Suppliers and Specialists

Property Portfolio Management

Building Fabric Maintenance

Managing Building Services

Managing Support Services

Project Management

Customer Service

Environmental Issues

Space Management

Procurement

Risk Management

Financial Management

Quality Management

Information Management

22


Role of Facilities Manager Building automation systems

Business continuity planning

Cleaning

Control of Substances Hazardous to Health

Corrective maintenance/Reactive repairs

Daily inspection of escape routes and fire exits

Disabled Access , Disaster recovery

Display Screen Regulations

Dry risers

Electrical portable appliances and fixed wiring

Environmental Issues

Fire alarm systems, extinguishers Fire protection and safety, Smoke/heat detectors , Sprinkler systems

Grounds maintenance and horticulture

Heating, ventilating, air conditioning and refrigeration

Help desk, Reception

Industrial hygiene, including indoor air quality

Lease Negotiations

Lifting equipment

Lightning conductors

Mail Room

Man safe systems (window cleaning, roof access, etc)

Meeting room management

Office space planning, layout, and furniture placement

Pest control

Photocopying

Pressure systems

CMMS,CAFM,PM, CBM maintenance

Safety Rules for Contractors

Security, Car Parking, CCTV & Access Control

Specifying, tendering and contracts' negotiation

Vending

Waste management

Work equipment

23


Key Challenges and Developments in FM

A. Which one of these issues do you think should be at the top of every facility Managers Agenda ?

1. Achieving cost & energy efficiency throughout the operation and maintenance of an asset.

2. Improving Quality of service.

3. Improving safety at all areas.

4. Improving and maintaining customers satisfactions.

5. All the above.

24

77%

0% 20% 40% 60% 80% 100%

ALL THE ABOVE



B. Which one of these key Challenges you are facing in FM industry ?

1. Unavailability of Skilled Manpower.

2. Lack of quality conciseness.

3. Higher attrition rate.

4. More competitive environment

5. Lack of Standards and SOP.

6. All the above

25

38%

26%

0% 5% 10% 15% 20% 25% 30% 35% 40%

UNAVAILABILITY OF SKILLED MANPOWER.

ALL THE ABOVE



C. Is there any area where you or your team needs more training?

1. Operation & Maintenance

2. Soft skill & Communication

3. Contracting & Customer relationship

4. Business Strategy & Change Management

26

22%

54%

0% 10% 20% 30% 40% 50% 60%

OPERATION & MAINTENANCE

BUSINESS STRATEGY & CHANGE MANAGEMENT



D. Do you read any magazine related to FM industries ?1. YES

2. NO

27

59%

0% 10% 20% 30% 40% 50% 60% 70%

NO



E. Do you belong to any associations related to FM?1. IFMA – International Facility Management Association

2. APFM – Association of Property & Facility Managers

3. MEFMA – Middle East Facility Management Association

4. EuroFM - European Facility Management Association

5. Others

6. I don’t belong to any associations

28

17%

64%

0% 10% 20% 30% 40% 50% 60% 70%

IFMA

I DON’T BELONG TO ANY ASSOCIATIONS


Take your career to next level

Certified Facility Manager® (CFM)Eligibilities – Bachelor degree with 4 Years or Post-secondary Education with 8 years in FM industries.Cost - Approximately 2500 USD

Facility Management Professional (FMP)Eligibilities – Any Graduate Professionals involved in FM DomainCost - Approximately 1000 USD

Sustainability Facility Professional (SFP) Eligibilities – Any Graduate Professionals involved in FM DomainAt least 2 years.Cost - Approximately 2000 USD

29

Change&Leadership style


Mr. Deepak Sahoo

Part – 1 B


The Story of Eagle

The Story of Eagle…

30


The Story of Eagle continues…

The eagle has the longest life-span of its’ species

31



But to reach this age, the eagle must make a hard decision

It can live up to 70 years

32



Its’ long and flexible talons can no longer grab prey which serves as food.

In its’ 40’s

33



Its’ long and sharp beak becomes bent

34



Its’ old-aged and heavy wings, due to their thick feathers, become stuck to its’ chest and

make it difficult to fly.

35



Then, the eagle is left with only two options: die or go through a painful process of change

which lasts 150 days.

36



The process requires that the eagle fly to a mountain top and sit on its’ nest

37



There the eagle knocks its’ beak against a rock until it plucks it out

The eagle will wait for a new beak to grow back and then it’ll pluck out its’ talons

38



When its’ new talons grow back, the eagle starts plucking its’ old-aged feathers

39



30 more years

And after five months, the eagle takes its’

famous flight of rebirth and lives for ...

40


Why Change !

Many times, in order to survive; we have to start a change process.

Sometimes need to get rid of old memories, habits and other past traditions.

Organizational change is needed in order to align the company with changing business environment.

Due to External Factors

Market volumes, changing product

profile, competition on price and variety,

segment, product specifications, change

in business environment driven by

government Policies etc.

Skills of employees, present plant

technologies with respect to future

product specifications driven by

customers, level of productivity,

Quality, cost and

morale of employees.

Due to Internal Factors

41


Kaizen Thinking !

Leaders are most important for bringing

change in an organization.

Environment makes people !

If environment changes, people change.

42


The Change Process

The change process starts by

Demonstrated change in the management.

Setting up a new management system and process that reflects new approach and mind set.

Implementing, achieving and sustaining activities in line with new mindset

PLAN

Management creates policy and provides the

vision and mission.

SHARE

Share with employees

UNDERSTAND

Employees understand the vision of Management

Process of change

start

43


Change Factor and It’s Outcomes.

Skills ResourceAction

planRewards

Vision ResourceAction

planRewards

Vision SkillsAction

planRewards

Vision Skills Resource Rewards

Vision Skills ResourceAction

plan

Vision Skills ResourceAction

planRewards

Confusion

Anxiety

Frustration

No Start

Slow Change

Change

44


Team & Leadership.

A group of guysA collection of

Peoples

A Team Leader

and some peoples

A team is a collection of people related to one another

who share a common objectiveand work in a collaboration with

one anotherto achieve a common target.

45


Types of Leadership.

1. Autocratic Style.

2. Consultative Style.

3. Participative Style.

4. Laissez-Faire Style.

5. Bureaucratic Leader.

6. Neurocratic Leader.

7. Paternalistic Style.

8. Sociocratic Style.

9. Situational Style.

10. Transformational Style

46


Types of Leadership style in details..Type 1. Autocratic Style - Autocratic type of leader is called an Autocrat. He does not consult hissubordinates (followers). He takes all the decisions by himself. He also takes full responsibility for hisdecisions. The subordinates must obey him without asking any questions.

Type 2. Consultative Style :-Consultative type of leader has an open mind. He encourages his subordinates togive their suggestions and comments. If these suggestions and comments are good, then he will accept them.So this leader consults his subordinates before taking a decision. However, the final decision is taken by theleader. Therefore, he takes full responsibility for his decision.

Type 3. Participative Style :-Participative type of leader encourages his subordinates to take part in decisionmaking. The final decision is not taken by the leader himself. It is taken by the group (team), i.e. by the leaderand his subordinates. The leader gives his subordinates full scope for using their talents. He is loyal to them.Therefore, they are loyal to him. They obey his orders willingly. They have a genuine (real) respect for him.

Type 4. Laissez-Faire Style: -Laissez-Faire style of leader is passive. He only acts as a contact man. Heprovides information and resources to his subordinates. He believes that the subordinates will work best ifthey are left alone. Therefore, he gives them complete freedom to take their own decisions. He allows them toplan and organize their own work. He allows them to set their own goals and to solve problems on their own.

Type 5. Bureaucratic Leader :- Bureaucratic leader follows all the rules and formalities of the organization.He does not believe in new ideas. He wants his subordinates to follow all his orders. This leadership styleresult in red tapism and unwanted paper work.

47


Types of Leadership style in details..

Type 6. Neurocratic Leader :- Neurocratic leader is highly a task oriented one. He wants to get thework done at any cost. He gets very upset if there is any failure. He is very emotional, sensitive andeccentric. He does not consult his subordinates in decision making. He takes his own decisions.

Type 7. Paternalistic Style :- Paternalistic style of a leader creates a family atmosphere in theorganization. He acts just like a parent of his subordinates. He advises, guides and helps hissubordinates with their personal problems. This style of leadership will be successful in a smallorganization having a very few employees and only one leader.

Type 8. Sociocratic Style :- The sociocratic leader tries to run the organization just like a SocialClub. He gives less importance to production and more importance to friendship. That is, he tries tokeep his subordinates very happy. So, he creates a warm and good social environment.

Type 9. Situational Style :- Situational type of leader uses different styles in different situations.That is, he changes his style according to the situation. Sometimes he will be autocratic, orconsultative, or participative, etc. Now-a-days, most managers use this style of leadership.

Type 10. Transformational Style :-The transformational leadership style depends on high levels ofcommunication from management to meet goals. Leaders motivate employees and enhanceproductivity and efficiency through communication and high visibility. This style of leadershiprequires the involvement of management to meet goals. Leaders focus on the big picture within anorganization and delegate smaller tasks to the team to accomplish goals.

48


Team Leader is the Eyes & Ears of Team

Every team has a leader and members.

A team leader…… First remove his Hat outside.

Has need for improvement

Sets targets for the team

Good communicator

Good coordinator

Works as a member

Resource person for the members

Understands team’s strengths and weaknesses

Has counseling skills

49


Leadership Game – Basic Rules

• Finalize the team leader of each group & each group contain 5 or 7 persons.

• Create a process for giving and receiving the balls in your Group.

• You can’t pass the ball next to you.

• The ball must return to the person who started with it.

• The Ball Must travel through air.

• The ball can’t rolled across the surface; e.g. floors, walls table chairs etc.

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Leadership Game – Basic Rules (Part-2)

Creating a Product :-

You are now going to create a product

1 Product = 8 Rounds of passing the ball in correct sequence.

If you drop the ball you must start the round again.

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Watch the Video

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Part – 1 Completed.

AnyQuestions?

Connect With Me @Mobile :- +974 – 3370 8982Email (w) :- [email protected] (p) : [email protected] :- www.linkedin.com/in/dksahooSlideshare :- www.slideshare.net/dksahoo2Twitter :- www.twitter.com/DefyDeepak

END

Business strategy for fm profectionals 1

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