savings initiatives in integrated facilities services...
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Savings Initiatives in Integrated Facilities
Services/Management Deals
Terry Mills,
GVP & Head of Corporate Clients EMEA Region
Areas to be covered
Typical Sourcing Drivers
Indirect Benefits
Direct Benefits & Savings Initiatives
Managing Quality
Summary
IFS increasingly demanded and important for customers
3
2006E 2009E 2012E 2015E
Global outsourced facility services market by contract type
Single services Multi services IFS
CAGR
’06E–09E
2%
3%
2%
7%
CAGR
’09E–15E
6%
7%
5%
10%
DKK Trillion
4.7
4.4
5.4
6.5
2015E 2012E 2009E 2006E
Simplicity and trust
“Quality is worse with third parties. They are either exploiting staff or the package becomes more expensive.” HR manager, Spain
“In our experience self-delivering IFS providers deliver the high quality we need.”
Facilities manager, UK
“Self-delivery get us better control, quality and responsiveness.”
IFS Customer, UK
“We want self-delivery because it leads to higher quality and better security for us.”
Operation manager, Finland
“Trust goes down and prices go up when third parties are involved.”
Administrative manager, India
“We plan to move towards IFS because its easier, faster and more convenient to have one contract and one invoice from the services.”
Facilities manager, Sweden
Source: Management estimates based on market studies
• Faster time to market (vs internal route)
• Catalyst for cultural change (acquisitions)
• Increased flexibility
• Improved operational quality / stability
• Focus on core business
• Transfer of Risk
“Out task” “Out Source”
•Direct cost reduction
•Procured against activity based
specifications
•Reduction in Total Cost of Occupancy
•Leverage Real Estate/Production
Single service GRE IFS
“Retain”
Typical Sourcing Drivers
Maintain acceptable service levels and perceptions
Provide acceptable transfer conditions for personnel in scope
Provide systems, tools and solutions not available in-house
Typical Strategic Savings
Optimise retained organisation
Move from managing delivery to results and contract
Shift focus to higher value activities
Fewer more strategic interfaces with Suppliers and Business
Transfer in-house delivery, reduced HR load and liability
Need right skills in right “places”
Need to allow for transition and initial transfomation
Rationalise supplier base
Finance Admin and Procurement
Agility
Large changes more predictable and manageable
Greater tolerance to smaller changes
Faster support to acquisition integration
Faster realisation of tactical benefits
Transparency
Risk Transfer
Warranties and insurance liabilities
Personnel
Assets and Technology
Continuous Improvement
Typical Tactical Savings Expectations
3
Years
ARD, Transition, CAFM Excluded
Ex
ce
lle
nc
e a
nd
be
st
pra
cti
ce
in
itia
tive
s
Business systems innovation
Our best practice and knowledge sharing Defining and documenting knowledge
Example of cleaning best practices
SimISS planning and calculation system
Methodologies and work processes documented
· Resource Mgt
· Training &
Development
· Motivation
· Absence Mgt
· Employee Relations
· Employee Retention
People
Management
· Financial
· Quality of Service,
Product & Process
· Satisfaction
· Improvement &
Innovation
Performance
Measurement
& Reporting
· Contract Operations
Manual
· Record
Management
Business
Documentation
· Employee Surveys
· Customer Surveys
· Feedback Analysis
Satisfaction
Assessment
· Selection
Management
· Performance
Management
Supplier
Management
· Strategic & Tactical
Planning
· Alignment to
Customer Changes
· Realising Contract
Potential
Contract
Planning
& Review
· Relationship Mgt
· Contract Awareness
· Communication
· Problem Solving,
Performance &
Innovation
Contract
Retention
· Business Continuity
Planning
· Disaster Recovery
· Action Planning &
Testing
Business
Continuity
Management
· Service Definitions
· Service Levels
· Performance
Indicators
· Expectation
Management
· Organising for SLM
Service Level
Management
Co
re D
eliv
ery
Pro
cess
esP
lan
nin
g P
roce
sses
Su
pp
ort
Pro
cess
es
Added Value
&
Customer
Satisfaction
· Self Assessment
· Management
Process Audit
· Service Audit
Process
Compliance
· Record Management
· Exit Planning
· Knowledge Transfer
· Decommission of
Contract
Exit
Management
· Responsibility
· Communication &
Training
· Risk Management
· Improvement &
Initiatives
· Reporting
Safety, Health &
Environmental
Management
· Document Changes
· Maintain Contract
Framework
Contract
Change
Management
Customer
Requirements
Continuous
Improvement Management
· Facility Management
· Cleaning Services
· Office Support
· Property Services
· Catering Services
· Security Services
Service Delivery· Resource Planning – People, Consumables, Equipment, Tools
· Work Plans and Schedules
· Management Integration
· Delivery Integration
· Initiation
· Planning & Design
· Execution
· Monitoring & Control
· Completion
Workforce
Management
Project
Management
Integration
Se
rvic
e D
es
k
Service Desk
· Incident Mgt
· Service Request Mgt
· Complaint Mgt
· Notification Mgt
· Escalation Mgt
Trolley and materials
7
Process innovation
Service innovation
Example, Business Focused Maintenance
Full visual and “supply chain” review of engineering assets
Plant assessment from a business outcome rather than an engineering
system's perspective
Assessment and rating of consequence of failure, likelihood and time to
failure.
concentrating on single points of failure and effects to prioritise resources
Continuous review to identify the likelihood of failure and highlight items
deteriorating faster than normal
Application of maintenance levels based on these risk and consequence
ratings
Frequencies and degree of CBM, IL&C and PPM adjusted accordingly
MTBF and MTTR feedback included in forward fine-tuning
Actual Example
0
1000
2000
3000
4000
5000
60005547
29982578
4296
1445
2133
Example: Engineering System PPM Pilot Scheme Erskine 2010
Maimtenance Hours Planned
Maimtenance Hours BFM
010002000300040005000600070008000 7088
5997
2578
5876
4677
2133
Example: Engineering System Reactive Pilot Scheme Erskine 2010
Maimtenance Hours Reactive
Maimtenance Hours BFM Reactive
Example, Service Integration
ISS Workflow Planning Tool
Multi skilling or Same skilling ?
Based on PPM principle with focus on tasks on same skill level
Applies sensitivity to when tasks can be done
Brewing industry – Case Study
Hard savings 11% over traditional model
Soft savings – more full time employment
Reduced staff turnover
Reduced recruitment and training costs
More engaged employees – higher productivity
Building Business
•IN
TE
GR
AT
ED
S
OL
UT
ION
S
•SPACE & CLIMATE •Enhancing the productivity of your workforce.
Maximise Performance the next generation
•ENERGY SERVICES & MANAGEMENT •Maximising the energy efficiency of your operations.
•NATURAL RESOURCES & CARBON •Minimising the environmental footprint of your business.
•INFRASTRUCTURE & ASSETS •Optimising the whole life cycle value of your assets.
•INFORMATION & COMMUNICATIONS •Creating an “anytime, anywhere, any place” culture.
•Contract
•Scope Definitions (List of Services)
•Key Performance Indicators
•Performance Values (and method of measurement)
•Processes & Procedures
•Specifications
•Tools, Technology, Equipment and Materials
Customer
ISS
Cost &
Liability
Service
Delivery
Balance
Point
Components of Service Level Agreement
Tracking to joint results
Service Desk/CMMS Statistics, Audit, User Polls, Response Times (contracted measurement)
GRE Client Assessment – monthly, (contracted/governance)
User Groups / BU Managers , Audit & Guidance - bi-annual (governance)
User Satisfaction (survey) – annual (contracted, governance)
Criticality
Frequency/Time
ISS Global Corporate Clients Governance Model
Purpose Frequency
GLOBAL
REGION
COUNTRY
SITE Facility Managers, site based
support staff Site based Customer reps
Programme Managers, Account
Managers/FM (Divisional
Managers, Branch managers)
Regional & Country Programme
Managers
Country HSE, Account
Managers, FM
Country Programme/Category
Managers
Contract Management
Delivery & Compliance
Audit, Reporting
Contract Management
Delivery & Compliance
HSE, Eng. Mgrs., Programme
Managers, Reporting &
Benchmarking Managers
Global Head Ops/Procurement
/(CEO, CFO etc)
Global Programme Directors/
(Head of Procurement, Head of
Ops)
Regional Directors/ (Head of
Procurement, Head of Ops)
Regional & Country Programme
Managers
Regional & Country Programme
Managers
Group CEO, Regional CEO,
Group CCO, Head of CC
Head of CC, Global KAD
Programme Director &
Programme Managers/(IFS
Directors/Divisional Directors)
Regional KAD (Regional
CEO/Country Managers/IFS
Directors)
ISS Customer
Relationship/Strategy
ISS' Customer Governance Model
Strategy/Steering/Escalation
Steering/Escalation
Contract Management & Delivery
Delivery, Development & Compliance
Audit, Reporting
1-2 times/year
4 times/year
Monthly
Monthly
Monthly
Monthly
Monthly
Daily/Weekly
ISS Value Proposition as an integrator
Geographic Footprint - Country-based structure and local delivery
- Regional/global BD, Transition & Account management (Corporate Clients)
- Global and local collaborators (IVA-MAAS, MCS, Diversey, etc.)
Processes & Systems - Business Process Framework
- CC Process Playbook
- ISS Facility Management System
- Route-based systems
References - Segment experience
- Local and regional experience
Degree of Self Delivery - Ability to integrate
- Low system margin (no management & margin-on- management & margin)
- Knowledge sharing
Competitive Price - Integration & Synergies
- Service Excellence
- Strategic sourcing
- Leverage of international infrastructure
Business Critical Services - Technical & hard FM capability
- Datacenters
- Clean room
- Etc.
“Support” Functions - Change Management and Transition
capabilities
- In-country & regional/global EH&S capabilities
- Project management
- Centers of Excellence
- HR (staff transfer)
Global
Cleaning
ExcellenceOffice Support
Excellence
Property Services
Excellence
Catering
Excellence
Security
Excellence
Eastern Europe
CleaningOffice Support Property Services Catering Security
Nordic Asia & PacificWestern Europe & Americas
Central Europe
Global OSKnowledge Forum
Service ExcellenceTeams
Global PSKnowledge Forum
Global CateringKnowledge Forum
Global SecurityKnowledge Forum
Global CEKnowledge Forum
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Regional
Country
Integrated Facility
Services Excellence
Global IFSKnowledge Forum
Integrated Facility Services
Centre of
Excellence
Global
Cleaning
ExcellenceOffice Support
Excellence
Property Services
Excellence
Catering
Excellence
Security
Excellence
Eastern Europe
CleaningOffice Support Property Services Catering Security
Nordic Asia & PacificWestern Europe & Americas
Central Europe
Global OSKnowledge Forum
Service ExcellenceTeams
Service ExcellenceTeams
Global PSKnowledge Forum
Global CateringKnowledge Forum
Global SecurityKnowledge Forum
Global CEKnowledge Forum
Global CEKnowledge Forum
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Service ExcellenceTeams
Regional
Country
Integrated Facility
Services Excellence
Global IFSKnowledge Forum
Integrated Facility Services
Centre of
Excellence
Initial
15%
1st time outsourcing
100
85
Client
With ISS on an IFS
contract solution
9%
2nd time outsourcing
76
Client
with FM
Initial
15%
1st time outsourcing
100
85
Client
With ISS on an IFS
contract solution
9%
2nd time outsourcing
76
Client
with FM
Risk Transfer - Outsource delivery risk (insurance, price,
some EH&S)
- Increase flexibility
- Speed to change
Thank You for Listening!
Any Questions?
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