March 2019 / FacilitateMagazine.com
APPRENTICESHIP LEVY | SOCIAL VALUE AND FACILITIES MANAGEMENT | INTERNAL COMMUNICATIONS | INTERSERVE
Guy Battle on the measurement methodology helping put social value top of the agenda
LOCAL DIMENSION What’s driving the social value agenda – and what could it mean for FM?
FacilitateMagazine.com | March 2019
CHANGING CHANNELS Adopting frontline communication tools to boost performance TAKING A TOLL The life-stage setbacks aﬀecting mental and physical health
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FAC I LITATE MARCH 2019
A NA LYS I S
6 WO R K PL ACE WE L L-BE IN G Inadequate workplaces and practices can take a mental, emotional and physical toll 8 M AKIN G THE LE V Y WORK Firms can get their money back if they invest it in apprenticeship programmes 9 WAIT TIL L AFTE R BRE XIT The food industry has urged Michael Gove to discuss new policies post-Brexit 10 VAL UE -ADDE D WORKS Workplace Futures Conference discussed the role of social value in outsourcing 15 THE S OCIAL CON TR AC T How IWFM is supporting the government’s social value framework
COM M UNI TY
KNOW LE DG E
3 2 PE R SPE C TIV E S The four most interesting and insightful opinions on FM this month
45 PULL UP A CHAIR Swiss start-up Noonee introduces the Chairless Chair, a seat anywhere
3 5 A BIT A BOU T YOU Sinead Beglane, a workplace manager at ITV, discusses life behind the screen
46 FOSTER THE EXCEPTIONAL The role of a leader is to create conditions for employees to thrive
3 6 THINK TA NK Our takeaways on topics and trends that could aﬀect your business decisions
47 STOP T H E B U L LY Stamp out workplace bullying with the right set of personal skills
3 8 M A RC H @ IWF M The people and projects currently informing IWFM activity
52 ON T HE G R I D Demand-Side Response may seem complicated, but AI makes it simple
3 9 C A LL S TO AC T ION The events, surveys and discussions that deserve your attention
54 GOING U P… A good maintenance agreement is essential for a lift’s longevity
SOCIAL CLIMBER Consultant Guy Battle’s methodology has promoted the social component of sustainability on most public and private organisations’ agendas.
SOCIAL ACCEPTANCE Why, seven years after the Public Services (Social Value) Act 2012 was passed, is the topic now so indispensable to industry discourse?
A LARGER MEASURE How do FM providers expect the growing importance of social value measurement to aﬀect the market?
– your magazine WHAT WE DO Facilitate is the magazine of the Institute of Workplace and Facilities Management (IWFM). For fourteen years we were known as FM World, changing our name in this January to reflect the British Institute of Facilities Management (BIFM) relaunching as the IWFM in November of 2018.
Facilitate keeps IWFM members and others up-to-date on all workplace and facilities management issues, ensuring you are informed of the very latest developments and thinking. Within the magazine, as well as online, we also provide readers with a forum for topical debate. Our monthly print edition, as well as the daily newsletters we
publish on every work day, make Facilitate your first port of call for the latest in workplace and facilities management. You’ll find analysis of research and legislation, insight from critical opinion-formers, service sector business news, case studies, best practice. event reports and much more. Got a story for us? Get in touch via email@example.com
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LE A D E R COMMENTS
MA RTI N R E A D
FROM THE EDITOR LINDA HAUSMANIS
Sustainability of purpose I’ve heard sustainability explained as ‘the process of maintaining change in a balanced environment’, which pretty much sums up the day job of running a professional body. Harmonising and optimising potentially competing elements, check; enhancing current and future potential, check; meet human (read professionals’) needs and aspirations, check. When we announced our intention to rebrand as IWFM, we believed in taking a vital step to reposition our profession to realise its untapped potential. We thought about our primary purpose and we honed our mission: to help the profession thrive and grow through leading-edge thinking, sharing best practice and upskilling our people What about the industry? We do see a distinction between it (the business of FM) and the profession (the practice of FM). Of course, what is good for one is good for the other, and we work closely with the industry. Our corporate members play a huge part in our community, bringing innovation and fresh perspectives. Our thought leadership benefits from partnerships with industry players and we’re working side by side on matters ranging from social value in procurement to fire safety in buildings. We’re pleased to offer the profession’s point of view. An industry thrives because of a growing pool of competent professionals – already thousands have been guided through the IWFM career pathway. Our work lies in representing, advancing and growing the workplace and facilities management profession. It deserves better recognition and we are laser-focused to make that happen.
LINDA HAUSMANIS is CEO of IWFM
t is remarkable how quickly social value, and the role that facilities management has to play in its delivery, has risen up the agenda to dominate discussion over the past six or so months. Perhaps even more remarkable, when you look into it, is the opportunity it would appear to offer for bringing facilities management into the public consciousness. There’s nothing new about FM’s facilitating role when it comes to local employment and training. The profession has always offered a good route into regular work for people who might otherwise struggle to find it. But having facilities management associated with important outcomes such as cutting crime or reducing homelessness offers valuable fresh perspective to those looking at the service from the outside. Being able to follow the thread from a desired social outcome out to the measures that determine it is potentially empowering for the sector as a whole – and it’s increasingly in demand from socially aware clients. What’s just as exciting is that while there’s been a legislative impetus behind public sector interest, there’s now a wider corporate ‘trust’ dynamic causing private sector firms to evaluate their own social value footprint. A critical mass is building behind this broader well-being agenda, and it’s a case that’s both fashionable and unarguable at the same time. It goes beyond defining well-being measures as they affect purely competitive advantage, instead looking at how an organisation blends in and benefits its surroundings in the most effective ways. Awareness of an organisation’s use of locally sourced labour, for example, might just become as important, if not more so, than awareness of its energy use figures. The one is certainly not more valuable than the other, but as the consultant Guy Battle says in our feature this month, the local labour impact is far easier to identify and appreciate by both business and the general public. This idea of an organisation sustaining its level of ‘trust’ within the community in which it operates might just nudge the wider world into an awareness of what can be truly achieved when a well organised, well structured and well-funded facilities management proposition is in place.
“A CRITICAL MASS IS BUILDING BEHIND THIS BROADER WELL-BEING AGENDA”
MARTIN READ is the editor of Facilitate magazine
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INSIDE 08 08 10 13 15
Big firms set to lose out as levy deadline looms Industry urges Gove to table food policy changes post-Brexit ‘Social value should be primary consideration in contracts’ Newsmakers: Top stories from Facilitate online last month IWFM Policy: Placing a premium on positive change
number of studies this month addressed how an inadequate workplace and work practices can take a heavy mental, emotional and physical toll on employees. Research by the Centre for Health Service Studies at the School of Social Policy, Sociology and Social Research at Kent found that an early redundancy makes your health poorer. Its study set out to establish what the long-term implications of enforced unemployment are on people over the course of their life, particularly in later life. Researchers discovered that those who had lost a job early in their careers were 5-6 per cent more likely to rate their health as fair or poor, compared with those who had not. Compared with the effect of other determinants of health in the analysis, this had an impact on health in later life similar to having five fewer years of education. Researchers used data from the third wave (2008/09) of the Survey of Health, Ageing and Retirement in Europe to understand how being made redundant within the first 10 years of entering the labour market can have negative effects on health over 30 years later. In total, they examined the data on 946 people who suffered involuntary job losses, with 657 down to lay-offs and 289 because of plant closures. The median age of those surveyed who lost their job was 22 and they were interviewed an average of 39 years later. Dr Olena Nizalova, one of the authors, said: “It is well-known that losing your job can have major short-term health implications, but our research demonstrates that the impact can last far longer and lead to life-long negative health impacts. This is a notable finding and it demonstrates that more work needs to be done to understand the full implications of
job losses on long-term health and how it can be managed.” The findings, if replicated in future studies, could help the government to better understand the implication of unemployment in later life in terms of health effects and create policies that take this into account for workers affected, particularly during periods of high unemployment. The study noted that when younger workers laid off during the Great Recession stemming from the financial crisis of 2007/2008 reach the same age as those surveyed in this sample there would be further opportunities to study the long-term effects of early career job loss. The paper, The Effect of An Early-Career Involuntary Job Loss on Later Life Health in Europe, was published in the journal Advances in Life Course Research. The authors were Dr Nizalova, University of Kent, Jonas Voßemer and Professor Michael Gebel from the University of Bamberg, and Olga Nikolaieva from the Kyiv School of Economics.
WOR KPLACE W E LL- BE I N G
WORKPLACE SETBACKS TAKE LONGTERM TOLLS ON HEALTH WO R D S : H ER P R EE T K AU R G R E WA L
Working mothers ‘most stressed’ by work Another study for the British Sociological Association found that biomarkers for chronic stress are 40 per cent higher in women bringing up two children while working full-time. Working from home and flexitime have no effect on their level of chronic stress; only putting in fewer hours at work helps, says the article documenting the research in the association journal Sociology.
RESEARCHERS DISCOVERED THAT THOSE WHO HAD LOST A JOB EARLY IN THEIR CAREERS WERE 5-6 PER CENT MORE LIKELY TO RATE THEIR HEALTH AS FAIR OR POOR
Professor Tarani Chandola of the University of Manchester, and Dr Cara Booker, Professor Meena Kumari and Professor Michaela Benzeval of the Institute for Social and Economic Research at the University of Essex analysed data on 6,025 participants in Understanding Society’s UK Household Longitudinal Survey, which collects data on working life and readings of measures of stress response, including hormones levels and blood pressure. They found that the overall level of 11 biomarkers related to chronic stress, including stress-related hormones and blood pressure, was 40 per cent higher if women were working full-time while bringing up two children than it was among childless women working full-time.
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FRONT DESK THE MO N TH’ S MOST I MP O RTA N T F M STO R I E S
and work stressors – but there was little evidence that flexplace or flexitime working arrangements were associated with lower chronic stress responses.”
Office design & mental health
Women working full-time and bringing up one child had an 18 per cent higher stress level. Women with two children who worked reduced hours through part-time work, job share and termtime flexible working arrangements had chronic stress levels 37 per cent lower than those working in jobs where flexitime was not available. Those on flexitime or working from home, with no overall reduction in working hours, had no reduction in chronic stress. Men’s chronic stress markers were also lower if they worked reduced hours, and the effect was about the same as for women. The academics adjusted the raw data to rule out other factors, such as the women’s ages, ethnicity, education, occupation and income,
so that the effects of work hours on family could be studied in isolation. “Work-family conflict is associated with increased psychological strain, with higher levels of stress and lower levels of well-being,” say the researchers. “Parents of young children are at particular risk of work-family conflict. Working conditions that are not flexible to these family demands, such as long working hours, could impact on a person’s stress reactions. “Repeated stressful events arising from combinations of social and environmental stressors and major traumatic life events result in chronic stress, which in turn affects health.” Chandola said: “The use of reduced hours and flexible work arrangements appeared to moderate some of the association of family
Parents of young children are at particular risk of work-family conflict
A poll of 1,000 UK office workers by fit-out firm Saracen suggested that 76 per cent of workers found their dated or uninspiring office harmful to their productivity. Thirty per cent cite the impact as high or significant, with only 12 per cent saying their dated office has little to zero impact on their work. This issue is a hot topic at the water-cooler – at least half of the respondents claim co-workers have confided in them regarding the negative impact that their dated office is having on their productivity. Beyond productivity, the study looks at how dated offices affect workers’ mental well-being. Fiftyone per cent cite their uninspiring office as having a negative impact. Twenty per cent cite a high to significant impact, 24 per cent a medium impact, and a further 25 per cent say their dated office has some effect on their mental well-being. As with productivity, the study suggests that the effect of a dated office on employee mental wellbeing is being discussed between co-workers; 35 per cent say a colleague has confided in them about their office’s negative impact on mental well-being. Researchers reveal that the “most alarming area of the study was focused on the impact of a dated or uninspiring office on mental health, surprisingly with 37 per cent saying their dated office had contributed to actual mental health issues”.
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F RO NT D E S K A N A LY S I S
AP P RE NT IC E SHIPS
BIG FIRMS SET TO LOSE OUT AS LEVY DEADLINE LOOMS WO R D S : H ER P R EE T K AU R G R E WA L
when they were paid in. For example, the levy payments that companies made in September 2017 will no longer be available to invest in apprenticeship programmes from September 2019. The levy was supposed to encourage firms to invest in apprenticeships, but confusion and concerns about costs meant the scheme initially had the opposite effect. DTL hosted an Industry Skills Forum in late 2017 for figures in HR in
Companies with payrolls above ÂŁ3 million have been paying into the scheme since its launch in April 2017 and continue to do so monthly. They can get the money back if they invest it in apprenticeship programmes with approved providers, but there is a two-year deadline. That means in April this year levy payments dating back to the start of the scheme will go to the Treasury, and funds will continue to be funnelled away each month on the second anniversary of
construction and the utilities that highlighted wildly varying views on the levy, from companies that were embracing it to train new and existing employees, to those who saw it as a tax. Since then, the government has tweaked the scheme significantly, reducing the amount of levy payments and allowing smaller companies to use levy money to help other organisations to finance their own apprenticeship training, typically those in the big companiesâ€™ supply chains.
ig firms will feel the pain of the Apprenticeship Levy this spring when the first wave of levy payments will be wiped from their accounts unless they have invested them in training apprentices. Apprenticeship provider Develop Training Limited (DTL), whose customers include household names in construction and the utilities, says the deadline should focus attention on making the controversial initiative work.
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F RO NT D E S K A N A LY S I S
R E S OURCES & WA ST E ST R AT E GY
Extra time As Facilitate went to press, Defra issued a statement saying the government “remains committed to supporting our food and drink industry to help prepare for all scenarios and are grateful for industry’s ongoing engagement and support”. The government says it has taken steps “to allow businesses to focus on preparations for EU exit” and ensured “our consultations related to the Resources and Waste Strategy end in May rather than April – giving businesses longer to respond – and we are committed to a more flexible consultation process where stakeholders can give their views verbally”. It also said: “We will continue to review ongoing consultations, including those where deadlines can be extended, in light of developments as the UK leaves the EU.”
ore than 30 UK food industry bodies have written to environment secretary Michael Gove imploring him to delay a range of government policy consultations until the terms of Brexit have been resolved, according to several news reports. Representatives of 32 industry bodies including the UK Hospitality and Food and Drink Federation, stated: “At this moment of potential crisis in our industry, it cannot be ‘business as usual’ within government.” Some of the trade bodies said they might not participate in future policy consultations if the government ignores their concerns. The letter to Gove said: “Businesses throughout the UK food chain… are now totally focused on working
to mitigate the catastrophic impact of a no-deal Brexit... Large amounts of time, money, people and effort are being diverted to that end.” The representatives said this work was so overwhelming that the businesses and trade bodies in the sector have not had time to focus on non-Brexit policies that Whitehall is considering. The letter cites policy initiatives on which the government is soliciting industry feedback that could have a significant impact on the food industry including a plan, announced by chancellor Philip Hammond in last year’s Budget, to introduce a new tax on packaging that doesn’t include at least 30 per cent recycled content. Another plan concerns potential restrictions on the advertising of fatty and sugary foods.
BR E XI T
INDUSTRY URGES GOVE TO TABLE FOOD POLICY CHANGES POST-BREXIT WO R D S : H ER P R EE T K AU R G R E WA L
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F RO NT D E S K A N A LY S I S
ocial value should be the first consideration of those awarding contracts rather than pricing, Baroness Ruby McGregor-Smith CBE told delegates at the Workplace Futures Conference in London. McGregor-Smith, a former CEO of the Mitie Group, was giving an overview of future trends in the sector in her presentation and said the consideration of social goals was only going to rise. “In the UK there are interesting things happening,” said McGregorSmith, who declared herself “a real fan” of the Public Services (Social Value) Act 2012. (See features, commencing p.16.) “It is about the economic, social and financial well-being of an area before you even think of doing anything else there. Can you imagine what it would be like? If you were sat in a tender process and you were asked about that before you were asked about price; that would be really quite exciting. “There is an ability in the supply chain to really support those ambitions of any client and if we could use things like the Social Value Act it can move us away from ‘the race to the bottom’ pricing… Suppose you pre-qualify on a policy basis rather than pricing?” McGregor-Smith added that this approach would tackle other sector problems as well. “There needs to be a much more balanced way of awarding contracts than public and private sector,” she said. “I think the industry should be honest about this ‘race to the bottom’ pricing and say, ‘this is not the right way to run contracts‘.” The future, she continued, would bring “a huge move more towards explicit corporate social responsibility (CSR) programmes”. “Being a responsible business has been around a long time; actually responsibility ethics has to be high up on the agenda too.” FM, she added, would always by its very nature be fragmented – but was
SOCIAL VA LUE
‘SOCIAL VALUE SHOULD BE PRIMARY CONSIDERATION IN CONTRACTS’ WO R D S : H ER P R EE T K AU R G R E WA L
Traditional outsourcing contracts are on the wane as local authorities bring services in-house
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F RO NT D E S K A N A LY S I S
growing positively globally with a growing focus on wellness issues. As the role of the FM changes, she said, training would need to be developed because providers will need to have more support, “especially when managing large workforces, wherever they may be”. She also called for the positive work of the sector to be talked about more – rather than recent “spectacular failures”. Speaking in the following session, Coleen Andrews, director of markets & suppliers at the Cabinet Office, told attendees that “historically, the Social Value Act has been used widely in the public sector but not so much in central government. But now we’re changing that and saying that central government departments will have to take the Social Value Act into account as well”.
Decline of traditional contracts The matter of how social value is measured is becoming more important as the demand for its evaluation across government is enshrined in law. Graham Box, managing director Scotland, Sodexo UK & Ireland, told delegates his company is doing more in this area. “In 2019 we’ll be looking at introducing tools to measure and extract social value and community benefits. Ideally, we want to do that with client specific organisation so we can look at the value we’re giving that client through [things such as] apprenticeships, working with local suppliers etc. “Social value benefits are huge, extensive and mainly unquantifiable in many cases [so] it’s difficult to say what the value is, but we know it’s the right thing to do and we carry on doing it.” Geoff Tucker, sales and marketing director at Norse Commercial Services, talked about the changing nature of outsourcing following Carillion’s failure last year. “When Carillion collapsed there was this outpouring of criticism
“IN THE LAST YEAR THERE'S BEEN A HUGE DECLINE IN THE NUMBER OF CONTRACTS AWARDED TO OUTSOURCING COMPANIES – SOMEWHERE AROUND 30 PER CENT” of outsourcing in general,” he said, “ but particularly the large companies. I think it goes well beyond just FM contractors and there is a feeling out there that big business is bad. I’m talking about the effect of the banks and of big companies failing to pay their taxes [and] overpaying executives. There have been lots of scandals around big businesses and that has fed through to the voters putting pressure on politicians, local and national, to reduce the dependence on outsourcing to help this. “We’re seeing this right at the front line. In the last year there’s been a huge decline in the number of contracts awarded to outsourcing companies – somewhere around 30 per cent – this is a significant trend. What we’re seeing is local authorities particularly bringing services back in-house and we’re seeing this with household waste collection in quite a big way. But all sorts of services are being brought back in-house and local authorities are setting up direct delivery models and trading companies and they believe they will be able to commercialise and start trading.... We’re seeing the decline of the traditional contract and we think that’s a trend that’s going to continue.” But Tucker thinks the nature of outsourcing could change in a positive way. “There is appetite for partnership, we see partnership replacing the old confrontational contractor-type relationship.” Ian Marson, transaction advisory director at EY, talked about market trends. He said: “The sector is very fragmented: many different services, building maintenance to catering,
to cleaning, to grounds – all these services are out there and they’re all dependent on human beings. The only way to improve productivity is not by squeezing wages further – that baseline has been drawn, the living wage takes that away.” James Bradley, director of Churchill Services Group, talked about the view from the mid-market. He said: “When you sit in midmarket you can have very different customer requirements whether that’s jobs they actually want, all the way through to how they want to transact with you and work with you and what information they might want and the relationship they might want. We see that as a key success in the mid-market; getting that right and being an easy organisation to do business with – that’s something we are focusing on. “A key challenge in the midsector is continuing to maintain that specialism. We want to maintain and strive to be the bestin-class providers in the services we provide.” Victoria Hughes, head of sustainability for Vinci Facilities, spoke of putting sustainability at the heart of business. She said: “There needs to be transparency; we need to look at the good and the bad. What do we actually say about our businesses as an industry? We undersell ourselves as a business, and this is [a view] supported recently by the sustainable FM index; the companies that have performed best in that index are [those that] undertook the gap analysis as to what companies are actually saying about themselves in the public domain. We’re massively underselling what we were doing.” She added: “We need to be brave, I think, and hold our customers and supply chains to account – to really look at those values and ethics; to manage with integrity, value, and innovation; to continually improve; and to realise the power of this trust with your employees who are best placed to sell the message.”
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Ten of the top stories from Facilitate online last month
F RO NT D E S K TOP STORIES
NEWSMAKERS S TUC calls for ‘domesday book’
Will tells bosses to prioritise workers’ mental health
Public service outsourcing should be made much more accessible and transparent, says the Trades Union Congress. Its report calls for the creation of an independent body to maintain a ‘Domesday Book’ of all deals to counter the “stunning lack of accountability and transparency for public services delivered through private contractors”. tinyurl.com/FacMag0319-TUC
25/01 Microsoft: School-leavers are not ready for workplace
The utilities sector faces “rapid and fundamental change”, according to skills provider Develop Training. It reports that “regulatory and technological developments will present businesses with many challenges – improving efficiency, reducing costs, increasing resilience and meeting customers’ changing expectations”. tinyurl.com/FacMag0319-Utilities
Workers want workplace tech like their own
ISS slams union’s claims of ‘Victorian conditions’ ISS decries the GMB union’s claim that work conditions at a London hospital where the firm supplies services belong “to the Victorian era” as “complete nonsense”. The GMB says ISS continues “to refuse to offer a full sick pay scheme to GMB members”. tinyurl.com/FacMag0319-ISS
Over half (52%) of UK employees believe that their personal technology feels more modern and is more user-friendly than their workplace technology. Research found that 40% believe that their job is made harder because their employer relies on outdated processes. [See Think Tank on pages 36/37 for more].
Employees’ ‘financial wellbeing’ seen as bosses’ role
8 ways to strengthen global FM market The FM profession’s demands are becoming more focused on specialised services, shows the Global Facilities Management Market Report. Europe is becoming a more attractive option for workplaces and FM providers with “value-added and innovative solutions in areas such as workplace management, sustainability… and energy management”. tinyurl.com/FacMag0319-FM
Nottingham Trent University (NTU) has launched its ‘Green Rewards’ engagement programme to encourage staff to boost sustainable behaviours. The programme is an online platform to track employees’ positive actions on six key themes. It is a part of NTU’s efforts to reduce its environmental impact. tinyurl.com/FacMag0319-NTU
UK students face leaving school without future transferable skills, says Microsoft UK. Its survey finds that classrooms are not fit for purpose – and only 42% of teachers felt that schools were preparing their students with the skills employers would desire. tinyurl.com/FacMag0319-Microsoft
Utilities must adapt to ‘rapid change’
Uni debuts ‘green’ behaviour change programme
Prince William, Duke of Cambridge, has reiterated how employers need to put a greater focus on the mental health of their workers. Speaking at the World Economic Forum in Davos, Switzerland, he said: “From our Heads Together research that we did, only 2 per cent of people felt confident to talk to their HR department.” tinyurl.com/FacMag0319-Mental-Health
Access to financial education is one benefit being increasingly demanded of employers, shows a survey by global professional services firm Aon. Its Benefits and Trends Survey 2019 also reveals that 76% of bosses agree that employers should influence worker health. tinyurl.com/FacMag0319-Wellbeing
l @Facilitate_Mag f FacilitateMagazine
UKGBC consults on net zerocarbon buildings definition The UK Green Building Council (UKGBC) has published a consultation paper inviting feedback on a proposed definition for net zero-carbon buildings. It sets out the proposals from the Net Zero Carbon Buildings Task Group, which is developing a definition in line with the aims of the Paris climate agreement. tinyurl.com/FacMag0319-UKGBC
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F RO NT D E S K POLICY PIPELINE
I W F M .O RG .U K / P O L I C Y
PLACING A PREMIUM ON POSITIVE CHANGE IWFM is supporting the government to introduce a social value framework, embracing this potentially transformational way of proving the wider impact that workplace and facilities management can have on people and place
ncreasingly, today’s business leaders look beyond an organisation’s financial bottom line, demanding greater scrutiny and transparency of its wider impact. FM providers are frequently being asked by clients, in both public and private sectors, to demonstrate social value as part of their contractual performance. Equally, they have their own genuine desire to operate as modern, socially responsible businesses. These trends are backed by our annual sustainability surveys, which show a broadening of the sustainability agenda beyond environmental concerns to include more economic and social measures such as pay, diversity, modern slavery and well-being. There is a growing call within the workplace and facilities management profession for a commonly agreed industry definition of social value and a standardised framework of financial and nonfinancial metrics. This would help the profession to drive and measure its broader impact in terms of employment opportunities, environmental benefits and technological solutions it can support.
Taking the initiative IWFM is driving momentum in this debate. Supported by our Sustainability SIG and a Leaders Forum discussion paper on Social Value in FM (see link in panel), we are working with partners to create social value metrics that can demonstrate this additionality using minimum reporting standards.
With the Social Value Portal (see feature, page 16), the approach is to customise the national social value framework for our profession. FM stakeholders from both public and private sectors are lending their expertise to this work. A consultation workshop in early May will be the first opportunity to share progress with a wider workplace and facilities management audience. This project matters for two reasons. Firstly, a tangible, measurable approach to social value helps to re-focus the FM narrative away from cost towards value. Secondly, it accords with a move by government to implement a social value framework, as set out in a Civil Society Strategy published by the Department for Digital, Culture, Media and Sport last summer, Building a Future that Works for Everyone, which provides a “comprehensive vision” for how government will work with businesses and communities to create a fairer and stronger society. IWFM welcomes many of the initiatives outlined in the strategy, particularly the aim of making greater use of social value in the government’s own supply chain and designing a framework for better measurement. The Cabinet Office confirmed this recently, committing to use the framework already used by local government, which is based on the social value framework. If you have any questions or suggestions about IWFM’s approach to social value, please email us at firstname.lastname@example.org, putting ‘Social Value’ in the subject heading.
KE Y CO N TAC T S
SOFIE HOOPER senior policy adviser email@example.com PHIL JENKINS policy executive firstname.lastname@example.org IWFM DOCUMENTS
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Developed with input from the Local Government Association, which represents the local authorities now obliged to address the social value element of their service procurement, the methodology has been downloaded more than 2,000 times by local authorities and other organisations keen to add measurable substance to their sustainability considerations. The SVP is clearly offering the right tool at the right time. Battle cannot fully explain why it is specifically now, six years after it first entered law, that the legislation’s intent has taken such a firm hold in both public and corporate consciousness. But the collapse of service providers, a general mistrust of big business, a widening public interest in organisations ‘giving back’ and a younger generation wanting to be involved in meaningful work seem to be the elements coalescing into one overarching direction of travel. We are likely to see more rewiring of facilities management service conversations as public, private and third sector organisations rush to embrace the potentially game-changing nature of social value. “Whereas environmental sustainability took 10 years to be embedded properly in decision-making,” says
uy Battle is likely to look back on 2019 as a particularly busy year. The chief executive of the Social Value Portal (SVP), a private consultancy and social enterprise, has led the development of a methodology for organisations “to measure and manage the contribution that their organisation and supply chain makes to society, according to the principles laid out within the Public Services (Social Value) Act 2012.” It’s described as the TOMS (Themes, Outcomes, Measures) framework, and here in early 2019 the audience for this methodology is growing exponentially, with Battle currently involved on several fronts to expand its reach and acceptance. Battle and his colleagues spent 18 months developing the methodology before making it available in late 2017. It’s essentially a tool that allows organisations to consider all aspects of their activity – environmental, economic and social – to identify the ‘social value’ derived from it.
The social component of sustainability - its management and measurement - has become a key discussion topic for organisations of all types. Martin Read talks to consultant Guy Battle about his ﬁrm’s widely-adopted measurement methodology – and how FM could beneﬁt from social value’s high proﬁle P H OTO G R A P H Y: PAU L S T UA RT
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Battle, “I’ll say that – as a good guess – social value will take just two. The key reason being that it’s both easier to understand and it makes much more immediate sense to people. They can see the results of it being delivered.” Environmental sustainability’s problem, Battle, explains, is that protecting the climate for generations to come is a difficult thing for people to envisage. Whereas “a service contract which involves giving a job to someone who is long-term unemployed, or embraces volunteering in the community, or involves a litter-pick in the local area – these are things people can see actually making a difference.” What’s more, the nature of facilities management service means that it is perfectly placed to enable much of this social value activity. Battle told an IWFM audience last November that “FM is likely to find itself undergoing a quiet revolution. Your sector is about to be turned on its head, and organisations that don’t grasp this will get left behind,” That’s quite a warning, but it comes from someone whose background means he understands the potential for FM in all of this. Originally trained as an engineer, Battle has amassed plenty of experience on a variety of corporate real estate projects, challking up more than 30 years as a consultant. He’s also been lead partner for sustainability at Deloitte LLP. The Social Value Portal is a relatively recent addition to Battle’s CV, going live only two years ago. Prior to SVP, he set up The Sustainable Business Partnership, a sustainability-focused consultancy back in 2013. Battle has also worked with several FTSE 100 organisations developing sustainable strategies and social impact analysis (SROI) for major corporations. He was also involved in advising the Cabinet Office during the Public Services (Social Value) Act’s initial development. “I’ve known FM for a long time,” says Battle, “and what excites me is that there’s an opportunity at this very moment to redefine the role of the property / facilities manager.”
is by working closely with their occupier or end-user client to deliver on social value commitments. “That’s kind of a new role for the facilities manager,” concedes battle, who is convinced that FM conversations are likely to evolve from the resolution of traditional maintenance and physical environment concerns to become more about how FM can help its parent organisation, occupier or end-user client engage with their communities. FMs’ role in developing well-being through the traditional standard comfort perspective – maintaining boilers, ensuring users’ comfort, conducting repairs, and similar
Battle believes there are two ways in which facilities managers will increasingly engage in delivering social value. The first is through organising service provision through local labour and supply chains; the second
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‘hygiene’ issues – will remain; but successful FM will increasingly be assessed from a cultural outreach perspective as well - something that FM is already adept at. Witness, for example, the IWFM Awards success stories that talk of how local or economically disadvantaged people have been employed to great effect. “The thing about your sector, and why it is so important to local authorities – and I should say that local authorities have been the key drivers of this – is that FM provides those really important entry-level jobs,” says Battle. “You can take on a long-term unemployed individual who can then move up to management or jump from industry to industry if they do well”, says Battle, outlining one particular desired ‘outcome’ that’s taken on real importance for local authorities. “There are those who can get opportunities within FM that they can’t get elsewhere. That’s why I think FM has such an important role to play in working with local authorities.”
“You’re given a licence to operate by society when they trust you,” explains Battle of an organisation’s relationship with the public. It’s about establishing a level of trust that arguably has been removed from some large providers by the public and others in recent years. Battle talks of some firms’ reputation being tainted “because people no longer trust them or what they say; and other big organisations have become terrified about getting into the same position.” In the private sector, firms like Legal & General are investing in social value reporting because they want to build trust in their own ‘communities’. “It’s the community that buys their pensions and other products. It’s all a virtual circle.”
“Every measure has a unit, and each unit a value,” explains Battle, “so when you want to sum the total social value, you look at everything you’re doing across this framework and just sum up the information. It’s as simple as that. (Many of the unit values assigned to measures come from UK government data.) “What’s important is that people shouldn’t compete on how to measure, but on how well they’re doing,” he goes on. “From an environmentasl perspective let’s not argue about whether a tonne of C02 saved is costed at £15 a tonne, or £20 or £54. Let’s instead compete on how many tonnes of C02 you can save through energyefficiency measures. Or from a social perspective, how many opportunities can we give young offenders? Let’s compete on how many volunteering hours we can put into our community, not [someone else’s perception of] the value of that.” Competition derives from the total units of each measure delivered. So should one measure be the employment of people from a given local area, for example, 50 such people will be a better figure than 40, notwithstanding any variation between organisations of the financial value attributable to each individual in that number.
Talk of outcomes is key to the structure of the TOMS framework, which at its core comprises a short list of five themes to which desired outcomes are appended. Specific measures are then aligned with each outcome and the idea is that these measures, once aligned to their outcome, are accepted by all as the means to demonstrate achievement of that outcome. Each measure can be assigned a financial unit value where the agreed value of, for example, employing a former young offender is taken from the government’s own determination of what that should be. So in this example the theme would be ‘Jobs’, and among associated desired outcomes would be ‘More opportunities for disadvantaged people’. The number of former young offenders employed would be the measure linked to this outcome, its associated financial value being the number of former young offenders times the value attributed to a former young offender. This would determine progress towards and achievment of the outcome that more opportunities for disadvantaged people are indeed being created.
A workgroup of key stakeholders has been set up in recent months to develop a specific TOMS ‘plug-in’ for facilities management. The group, which includes the IWFM, has the aim of developing a series of measures to provide an FM-specific industry baseline. (See more about measurement on p.26.) “We need to agree a common minimum and get everyone delivering to that, because then we can compare performance. They [authorities, service
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providers] can all get better once we have a common measurement framework in place.” The impetus has certainly come from local authorities whose duty it is to maximise the value of every pound they spend for the community. Battle reckons a 20-30 per cent boost in additional social benefits can be obtained for every pound spent, at no additional cost to the authority. Interest in the methodology is booming. Says Battle: “Since the beginning of the year we’ve seen a massive ramp up of local authorities adopting TOMS. We’ve so many incoming enquiries from local authorities wanting to sign up we can barely keep up with the pace.” What’s more, the weighting that local authorities allocate to social value in the contracts they’re bringing to market has also been growing. “Organisations that want to work with some local authorities are seeing weighting within the tender process of at least 10 per cent and in some cases 20 or 30 per cent around social value,” says Battle. So basically, if a firm is not considering social value in its offer it will not win that job, no matter the overall cost. “Businesses working for the public sector are, as a competitive necessity, having to get on to this bandwagon and deliver.” While local authorities may have been responding to a legislative stimulus, the private and third sectors are now latching on to social value’s potential. Battle cites financial firms Aberdeen Standard and Legal & General have adopted TOMS, while CRE firms including Land Securities and Argent are also working with it. Investors in these firms are driving the change, says Battle, because they are seeking a return on their investment that goes above and beyond the financial. The pension fund managers investing in firms such as Legal & General, for example, are increasingly concerned to be seen reporting their activities having an impact that goes beyond a commercial one. This, says Battle, is where talk turns to the widening issue of trust in business, or an organisation’s ‘licence to operate’ (see box). Increasingly, businesses see a need to do more than just pay their taxes in order to earn the trust of the constituency for which they provide or within which they operate.
“People shouldn’t compete on how to measure, but on how well they’re doing” Battle. “But it did define social value as comprising environmental, economic and social well-being. It outlined that triple bottom line, and a framework within which environmental sustainability could fit – which is as a subset of social value.” As central government joins local government in forcing social value into procurement decisions, there’s a sense that the greater visibility of social value can do more to make FM’s overall value visible. But is there sufficient procurement expertise to make it happen? “Within local government the answer is that they’re learning,” says Battle. “But then local government is a million miles ahead of private sector procurement. I think the public sector has something very important to teach the private sector.” Interestingly, the Chartered Institute of Purchasing & Supply has just joined the Social Value Task Force, the open network of organisations comprising local authorities, the Crown Commercial Service and others to promote the social value service agenda. The involvement of CIPS adds to the sense that the procurement landscape, both public and private, is shifting to accommodate social value metrics. At time of going to press, Guy Battle was meeting with the FM plug-in development group. If all goes well another such meeting will happen this month before the nascent plug-in is put to the test with stakeholders. If all goes well – and there is much to flesh out - the plan is for the TOMS framework’s FM plug-in to become freely available this summer. Clearly, for Guy Battle there is no let-up in the ongoing social value revolution.
So, what’s next for the SVP and TOMs? “The original Social Value Act was very broad,” says
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SOCIAL ACCEPTANCE The concept of social value is topping corporate agendas as organisations see both legal and commercial reasons to assert their roles as enablers of communities as much as earners of proďŹ t. But why, seven years after the enactment of the Public Services (Social Value) Act 2012, has the topic become indispensable to industry discourse just now? Bradford Keen reports
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ive years ago, talk surrounding sustainability was of carbon emissions and energy-efficiency. These days, sustainability’s focus is increasingly social. Indeed, the facilities management sector’s newly introduced ISO standards talk of sustainability’s ‘triple bottom line’ with its environmental, economic and, yes, social components. “Social value is the people lens of sustainability,” argues Munish Datta, consultant at UK Green Buildings Council (UKGBC). Datta points to social value’s three components, as set out in the Public Services (Social Value) Act 2012: economic, environmental - and social. The first is about providing decent jobs for local people – including hard-to-reach and socially excluded groups – to help them build skills for long-term employment. The second addresses issues of accessibility: sustainable transportation, resilient and adaptable buildings, good-quality public and green spaces, and spaces that promote better health through improved air quality. The third refers to local ownership of businesses with reliable social networks using buildings that cater to diverse uses and contribute to a community’s distinctive character. Charlotte Österman, social sustainability manager at Vinci Facilities, also focuses on these three principal pillars. Österman believes that social value can be embedded through its connection to an organisation’s employees who can provide additional value to traditionally CSR-related activities such as fundraising and volunteering – “those extra things on top of what you do as a business”, and inherent to an organisation’s business operations, such as maintaining schools or hospitals.
Rise in prominence With definitions and categorisations out the way, let’s address why so many in the sector are discussing social value. After all, the Public Services (Social Value) Act was written into law in March 2012 and went live in January 2013. Since then, as Heather Carey, deputy director at the Work Foundation, notes: “We’ve seen a really light-touch approach to implementing social values in contracts.” In a statement last month, Minister for the
“WHAT’S THE COST IN TERMS OF PRODUCTIVITY OF NOT HAVING AN ENGAGED WORKFORCE?” IWFM CONFERENCE THEME: UK Industry Perspective SPEAKER: Heather Carey, deputy director of the Work Foundation LOCATION: Premium Suite, Etc Venues, St Paul’s London TIME: 09.45-10.30 TICKETS: iwfm. conference.org TOPIC: UK industry is changing, which means the skills we need and the way we work are changing too. Carey will refer to her research centred on improving UK productivity and management practices, developing diverse and highly skilled talent pipelines, exploring the consequences of technological innovation and the future of work, promoting responsible business and inclusive growth, and supporting good working practices that ensure a healthy and productive workforce.
Cabinet Office David Lidington reiterated the government’s plan to extend the requirements of the act. Currently, government departments are to “consider” social value when commissioning services but in the future they need to “evaluate” social value. A subtle but significant shift adding a greater burden of proof to show that social value has been given sufficient attention in the contracting process. Regardless of this shift, Carey says the act’s original purpose is to elevate the social value narrative from individual actions, such as providing a certain quota of apprenticeships or painting community centres, to determining how procurement decisions can support better work opportunities and conditions and positively affect wider communities. “We are seeing a shift in the way that businesses are viewed,” Carey says. “That’s partly to do with the journey we’ve been on through the financial crisis and the defaulting of major contractors. We’re starting to see a much greater discussion about the absolute imperative of responsible business and responsible leadership.” The upshot is that there is more pressure on businesses to act ethically. Failure to do so could result in lost customers, shareholders and suppliers. Emma Scott, representation manager at the Chartered Institute of Purchasing and Supply (CIPS)
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says that “the line between making money and doing the right or responsible thing has become very blurred. News travels fast and bad news travels at lightning speed – so this makes responsible business too difficult to ignore”.
The FM sector’s role The scale of the FM sector empowers it with potential to deliver significant social value. Most readers will be familiar with the statistics about FM sector comprising a sizeable element of the 8 per cent of UK GDP attributed to outsourced services as a whole, and providing for 10 per cent of the British workforce. “We’ve got a huge economic impact that we can steer into local procurement and how we pay people,” says Österman. “We’ve got a huge influence on how people are being employed and what value their employment brings to them.” Datta is also optimistic about facilities management’s role. He thinks the sector can unlock up to 60 per cent of the total social value that can be created by the built environment, especially through the provision of local employment and skills development during the lifetime of a building. The FM sector’s services portfolio, io, from catering to cleaning as well as hard services, makes its social ‘footprint’ disproportionately wide, for example, through employment of people from disadvantaged parts of local communities who might otherwise struggle to find work. Associated examples of standard FM activity that can be attributed social value status in this is regard are obvious, such as the provision ovision of apprenticeships, training and local employment. Whether you are an FM service provider or any other type of organisation, social value can be achieved by making the right procurement decisions. “Are you buying up and down your supply chain from ethical businesses, social enterprises, local pools of suppliers that are giving local people jobs?” asks Sarah Fraser, head of the Willmott Dixon Foundation. “We can all think and challenge ourselves no matter our business or who we are individually.” b Other areas in which to provide social value include: improving employee engagement and satisfaction scores; ensuring employee health and well-being; and committing both to fair pay and labour a conditions for staff as well as prompt and co fair payment back along the supply chain. It includes volunteering, fundraising, charitable also inc giving and charitable partnerships.
Taking a holistic approach The point of social value is that it should be part of a business’s wider responsible and ethical business strategy. How an organisation starts down this road is key; decisions that affect social value then follow as a matter of course. “It’s very difficult to unknit all of these issues,” says Scott. “For instance, supplier diversity and social value go hand in hand.” Contracting with SMEs, start-ups, social enterprises, and women or minority-owned organisations helps tick the supplier diversity box but also adds social value. Carey shares this sentiment. “It’s imperative that social value is not seen as a totally separate entity. It needs to be seen as bigger discussion around how we run businesses and what good corporate governance looks like.” But there are also “massive business values” to be unlocked from implementing social value, says Scott – and this can still happen when the business imperative of cutting costs, boosting profits or gaining a competitive advantage are at play. “No one is asking organisations ons to be philanthropic,” says Scott. “We’re ’re asking them to make small adjustments about how they could give something back and have a win. That is the key for procurement to sell to the business, particularly for private organisations.”
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Scott gives the example of a telecoms company operating in Turkey that united its social value and business outcomes by having its suppliers recruit from the pool of 3.5 million Syrian refugees living in the country to work at its call centres. Syrian workers now account for 10 per cent of the company’s ny’s Istanbul workforce. Not only did the company employ people in need of work, it made sure it had the staff to deal with a booming new Syrian customer base. Another example of social value and business outcomes working in harmony comes from international property and infrastructure group Lendlease, which has created a ‘Loneliness Lab’ in partnership with the charity, Collectively. The two organisations, s, says Munish Datta, are aiming to “reimagine ne places and spaces and cities with loneliness and d isolation in mind. They see a business opportunity to respond to the social issue that exists in many cities… and become the provider of spaces that enable people to be more inclusive and reduce isolation.”
A BUSINESS CASE FOR LOW-EARNER FRINGE BENEFITS Heather Carey co-authored a report for the Joseph Rowntree Foundat Foundation titled Improving Fringe B Benefit Schemes for Low E Earners in which she set out the seven steps fo building a business for c case to support their iimplementation. Benefits for low e earners, when properly d developed and d delivered, could provide a useful means of ad adding social value to an orga organisation’s employees, while a also helping businesses attract a and retain staff. The se seven steps encourage those in charge of delivering benefits to understand the needs and preferences of the workforce and develop a business case to support investment in benefits and secure board-level support.
A willingness to pay? The ‘seven steps’ include: Strategic prioritisation; Developing the business case; Understanding employee needs and preferences; Deciding which benefits to offer; Finding/commissioning suppliers; Design, implementation and promotion; and Measuring value and impact.
Much of social value’s prominence can be ascribed to the Carillion collapse last year and a greater spotlight placed on government procurement of services. Nevertheless, to think that private sector clients would not be as interested in social value as their public sector counterparts “would be terribly naive”, believes Fraser. Why? As much as anything else, because social value is important to clients’ employees. “There are many studies about the choices millennials and beyond make about who they work for and will continue to work for,” adds Fraser. “To have a purpose beyond the profit is really important for people regardless of whether they work in the private or public sector.” Österman acknowledges that there may well be private sector clients unwilling to pay for the elevated contract costs required to deliver social value, but she says this is a short-sighted way of thinking about it. “What’s the cost in terms of productivity of not having an engaged workforce?” she asks. “This is not only about adding on those extra social value projects with additional social value. This is about being a responsible business and how you think about the benefits that you created for your stakeholders as part of how you’re doing business. So that should ultimately make you more sustainable and successful.” Buzz terms tend to buzz for good reason, although some are more deserving of the buzz than others. In an age in which the general public is demanding businesses be more ethical and responsible, working more for the greater communal good, social value looks set to dominate the discourse for a long time yet.
“Ultimately, not all benefits are equal through the eyes of low earners,” Carey explains. “Some offer greater value than others, particularly those which mitigate the high costs of living, such as food, travel, housing, childcare or utility bills. For employers, the challenge is thinking about people; who are the people that make up your workforce?” Low earners are not homogenous and could include second earners with an overall high household income or lone earners in a singleparent household working a few hours a week.
It’s better for employers to develop a portfolio of benefits that meets a diverse range of needs and provides support, says Carey. “The vital thing is being really clear on how investing in benefits for low earners supports wider goals, objectives and values of the business,” she says. Highlight how benefits can support talent acquisition and retention; how it can improve the quality of products and customer service; how it can support innovation. Show evidence of how a high-performing workforce comes from providing good pay and benefits, and, in turn, how satisfied workers, through greater productivity, can lead to businesses’ increased profitability. “A lot of the cases we came across highlighted how investment in benefits is often actually a consequence of wider shifts in the market,” Carey explains, listing competitive pressures or a tight labour market as examples. A business case depends on showing how the proposed benefits would link with the external pressures and organisational priorities. “Then you’ve got the additional challenge of demonstrating tangible and intangible benefits,” Carey says, which concerns quantitative and qualitative measures. It’s a challenge to quantify how benefits could improve wellbeing, for example, but easier to quantify reduced absences. It’s necessary to provide a combination of tangibles and intangibles from evidence such as staff surveys, management information and impact-forvalue calculations. Workplace and facilities management professionals need to balance cost and value, says Carey, which requires pragmatism – particularly in sectors such as care and retail, which often have tight budgets.
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he Public Services (Social Value) Act 2012 certainly set the cat among the procurement pigeons when it was first introduced. In 2013 this magazine reported various service providers as excited about the new frontiers it could help define for the sector –but an acceptable way of measuring the value of work in this field was soon identified as a sticking point. In the six years since, talk of the act’s potential has grown despite ways of measuring social value outcomes remaining elusive. Now, in light of events including 2018’s Carillion collapse, and in response to an emerging change in public attitudes, that the act – with its positioning of social value as the broader, overarching definition of sustainability – has moved into the spotlight. Most agree that, as the Social Value Portal puts it, “the very strength of the Act in its lack of specificity has also been its greatest weakness”. But with local authorities increasingly conscious of fulfilling their new obligations, the clamour for an acceptable measurement structure has grown. The prize here is a significant one. Sofie Hooper, the IWFM’s senior policy adviser, sees social value as driving FM procurement conversations away from price towards the contribution that a
business, or a business in partnership with its service providers, can make. “It helps challenge the stereotype that businesses are only out there to serve themselves and enables businesses to make a better connection with the public,” says Hooper. The national Social Value Measurement TOMS (Thmes, Outcomes, Measures) framework is a methodology gaining plenty of traction just now. Developed by the Social Value Portal with input from the Local Government Association, it has been designed “to help councils measure the value they are achieving through implementing the Social Value Act,”and is beng adopted by public and private sector alike. Last month, a working party comprising various FM industry stakeholders, among them several FM service providers, convened for the first time to begin work on an FM-specific ‘plug-in’ for this methodology. The national TOMS framework out of which the FMspecific version will be honed comprises five key themes: jobs, growth, social, environment and innovation. Desired outcomes can be appended to each of these themes, and to those outcomes can be appended a series
Agreeing the way in which organisations and service providers quantify the impact of their social value activities looks set to be one of the deﬁning issues for FM in 2019. Martin Read asks FM providers how they expect the growing importance of social value measurement to aﬀect the market
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of quantifiable measures. It is in this detail that work to customise the framework for FM is being centred. Mike Worrall, head of work winning for Bouygues Energies & Services FM UK, explains: “All the themes from the National TOMS Framework are fundamental in delivering good FM services. However, by providing improved measurement and a greater focus on social value, we can ensure this best practice is consistent across the industry and help maintain these standards.”
The background Consistency in measurement will aid consistency in service procurement. Sodexo is among the service providers supporting the development of social value within contracts and taking part in the TOMs discussions. Deborah Rowland, the firm’s director of public sector affairs, has experience on both sides of the public sector fence, having also served as head of FM for the Government Property Unit. “Local government has a much better understanding than central government,” says Rowland. “There is a lack of understanding on how to measure social value and the weighting of importance within procurement.” Sodexo, says Rowland, has been “pushing for social value to be an intrinsic part of evaluation for quite some time. And it’s certainly
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helped that (minister for the Cabinet Office) David Lidington has picked this up in many of his speeches”. Indeed, in the days prior to our going to press, Lidington used a written ministerial statement to reinforce the future role of social value in central government procurement. He said the government would be “extending the requirements of the Social Value Act in central government so that all major procurements will explicitly evaluate social value, where appropriate, rather than just consider it.” ‘Evaluate’ rather than ‘consider’ – a critical distinction that will change how commissioners and providers assess the social value component in service contracts.
Calculating: the route forward So what should measurement of social value in service contracts look like? Simplicity, it seems, is key. “The main thing is that measurement is kept as simple as possible,” says David Carr, CEO of Bouygues Energies & Services UK.
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“If the information you have to put into the platform is difficult to compile that may detract from its Sodexo was among the first value. But fundamentally, if you get service providers the measurement right it will move to recognise the potential value of behaviours in the right direction social value to FM and create an environment for continuous improvement.” Carr’s colleague Worrall, agrees. “A simple way of measuring and a common approach are crucial for ensuring this regime is successful across the industry. If it isn’t simple it will cost too much to implement and maintain, lose momentum and ultimately fade away. If there is no commonality of approach the measurements will lose their overall value and become a thing to mistrust rather than believe in. “The hallmark of success will come from an agreed benchmark for expected social value delivered through our operations – a target of 20p in social value for every £1 of contract value may be the place to start – and it becoming a ‘business as usual’ topic in monthly meetings and performance reports. Service providers have had various attempts in the past to develop measures. Charlotte Österman, social sustainability manager at Vinci Facilities, recalls what happened when Vinci tested different measurement models for its highly successful ‘Reading from the start’ literacy programme (see picture). One model generated “a gazillion’s-worth of social value” because the inputs – handing out free books to young children – were weighted so heavily. But, says Österman, “It just didn’t sit right with us.” The company then partnered with Social Value UK to measure and define its social value. A key issue, says Österman, is to look at “the value that people place on the changes they’re experiencing”. Reporting on social value should be a transparent process with a heavy focus on engagement with stakeholders. “Look at where you have your impact,” says Österman, “then frame financial proxies and relate them to a metric based on research. If you don’t go through stakeholder consultation you’re just putting numbers on a piece of paper and you can’t really use people’s feedback to improve how you’re doing as a business.” The Social Value Portal’s Guy Battle recognises the subtle distinction between a desired outcome and a lasting impact. He sees the latter as something that will inevitably take a lot longer to become clear.
Vinci Facilities’ ‘Reading from the Start’ campaign tackled illiteracy in partnership with its client Peabody housing association. The project won an IWFM Award
Nevertheless, in his view clarity of reporting on quantifiable measures, correctly aligned to desired outcomes, is the best way to guarantee those impacts in due course. Certainly measures such as the number of employees hired through a local economic regeneration TOMS scheme will be fairly easy to quantify. But TIMELINE what about these indirect measurements? The boosted confidence of people who’ve been FEBRUARY Initial FM Subthrough work programmes? The improved group meeting mental well-being of those using a community garden? Who should decide what these indirect MARCH FM sub-group measurements should be? meeting to “This requires feedback from beneficiaries continue mapping and is harder to measure practically,” says out FM TOMs and Jamie Quinn, corporate responsibility and receive feedback on online exercise environment director at Engie. “But there are methods. Engie has developed a model MAY using the TOMs framework alongside HACT’s Workshop to summarise work (Housing Associations’ Charitable Trust) Social and present draft Value Bank, which measures improvements to FM-specific TOMs individual well-being.” JULY For Quinn, “delivering social value means Soft launch responding to needs, and needs of course differ in different places and for different clients so SEPTEMBER official launch should be led by research and engagement. The most consistent metrics across regions measure outputs generally relating to employment and employment support (jobs themselves, apprenticeships, work experience); but focusing on these could miss more efficient, lower-cost or more innovative ways of delivering value and in relation to other areas like health, well-being, supporting business growth and environment”. Nevertheless, to evaluate different providers a consistent methodology for measuring outputs that also identifies financial proxies is key. But Quinn says clients should consider procuring for outcomes. “This means asking service providers to identify how they will address an outcome – for example, low employment rates – rather than to deliver a number of outputs [for example, number of jobs – the kind of measure associated to a TOMs framework outcome].”
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LO N G FO R M S O C I A L VA L U E — M E A S U R E M E N T
Quinn suggests that clients should focus their questioning on these desired outcomes to get a sense of a prospective provider’s broader vision. Acceptsing that that the idea is “bold”, he nevertheless says “it should give more flexibility, encouraging innovation and partnerships. And importantly, it enables us as a provider to look at root causes. This may require more training on the client side to assess tender responses, but it also encourages more of a partnership approach to social value.”
impact of our operations and the importance of innovation.” What social value measurement does is bring these themes together in one place – “and crucially puts a pound note value against the outcomes”, he adds. So measuring social value in a structured way will be essential. But for David Carr, the IWFM’s reigning Leader of the Year, the job is also to promote existing good social value practice in FM. “If you’re delivering good FM service, you’re generally delivering high levels of social value already,” he explains. “A lot of what social value seeks to prescribe is fundamentally what the FM industry has been doing for years,” says Carr, citing outreach to those on the margins of employment, or the offering of work to former offenders or members of the armed forces. “Also, look at the commitment from the industry to apprentices and training, for example. These things are fundamental – and they’re already there.” Instinctively, says Carr, the right quality and diversity of people comes together if an FM team is to become successful. Likewise, a sustainable supply chain will often necessitate the use of smaller local firms, often nurtured and developed by the lead partner in a service contract. Ultimately, says Deborah Rowland, social value has “huge potential” to “really articulate the added value that FM can bring to communities as a whole, particularly within public sector services.” Interesting times lie ahead.
The challenges ahead Reaching an industry consensus on measurement criteria will be a tough nut to crack, believes Mike Worrall. “Saying it and achieving it are entirely different things. The industry needs to come together to reach an agreement on its understanding of social value and how to measure it. Nevertheless, continues Worrall, “adoption of a single framework covering both of these will be vital; it will avoid confusion and deliver the ability to measure apples and apples, stimulating competition.” Aa much as there is a need for measurement metrics, there is also a need to tell the good news stories about the social value already being delivered by FM. “The FM industry understands the benefits of local employment,” says Worrall. “It understands supporting SMEs, benefiting the communities we work in, the environmental
THE TOMS METHODOLOGY THEME
Growth and jobs
More local people in local work
Number of young offenders employed
Number of people
Number of hours volunteered
Number of hours
Spend in local supply chain
More opportunities for local SMEs and VCEs Promote local business
A more resilient third sector Vulnerable people better supported Crime is reduced
Greener and cleaner
Reduce carbon emissions
Values are sourced from UK Govt. data base of unit benefits and official statistics, and calculated following the Green Book guidance
The above illustration demonstrates the Themes, Outcomes and Measures (TOMs) methodology with example measures. The number of measures per outcome can be considerable, and over the coming months the facilities management stakeholder working group will be engaged in determining the outcomes and measures specific to the sector that will result later this year in the launch of an FM-specific ‘plug-in’ to the main TOMs framework.
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30 FacilitateMagazine.com / March 2019
INSIDE 32 34 35 36 39
Perspectives – four original opinion pieces FM @ Large – seen and heard this month Behind the Job – Sinead Beglane Think Tank – How good is your internal comms system? Calls to action – events worthy of your attention
t’s the purpose of this page to interrogate the terms we hear popping up on conference circuits or read in social media posts. The ones that make you think: “This sounds compelling or catchy, but what exactly does it mean?”
Risk-aware versus risk-averse A recent encounter for us at Facilitate concerns the terms ‘risk-aware’ contrasted with ‘risk-averse’. Risk, of course, is an omnipresent concern and inevitable reality for
Each month we explain the background to phrases you may be hearing, or the key issues currently making waves
every business so any new way of talking about it is worthy of investigation. “Risk is uncertainty in achieving objectives whatever they are,” says Dave Cooke, chair of the IWFM Risk and Business Continuity Management SIG. “While the focus is almost always on the negative, risk can also have a positive outcome.” So you can’t escape it and without hedging your bets and acting, you won’t grow your organisation. But there are better or worse ways of managing it. Cooke says among risk management professionals, the terms ‘risk-aware’ and ‘risk-averse’ are neither standard terminology nor widely used. They do, however, provide insight into how some people and
THE BE ST O F THE S E C TO R ’ S DI S C U S S I O N A N D DE B AT E
organisations outside of the risk management discipline regard risk. “Both could be seen to be a statement about ‘risk appetite’,” Cooke explains.
What is risk appetite? Simply put, it is measuring the “amount and type of risk an organisation is willing to take to achieve its objectives”, Cooke says. In other words, how much risk can you stomach without regretting the moment you chomped into it? Within this broader definition or understanding of risk, the term risk-averse might tend to indicate a lower appetite towards risk, while being risk-aware could refer to taking a more informed stance on risk – and its potential positive outcomes – particularly in situations where higher but more calculated risks are taken. “This appetite should be clearly defined and measurable for different types of risk,”
Cooke says. “One wouldn’t expect a financial investment company and a nuclear generation facility to have the same risk appetite – many of the risks and potential outcomes are very different.” And even in cases in which organisations are more comparable, there will be some that have a higher risk appetite and could be said to be more “risk-hungry” than others, says Cooke, adding that ‘risk-hungry’ is also not a mainstream term.
Moving past terminology The words we use are important, of course, but more so is “having an effective risk management system that is appropriate for the size and activities of the organisation”, says Cooke. And many organisations do not have this in place. Cooke points readers to the SIG’s recently published GPG on risk management, which provides a practical guide for workplace and facilities management professionals to manage risk.
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V I E W P O I NT PERSPECTIVES
Have your say Visit fm-world.co.uk for longer versions of these comment columns Get in touch by email – email@example.com Topical, inspirational, angry or amusing – we consider all relevant comment
Widening gender pay gap
Live your life unlabelled
CLARE PARKINSON is pay and reward manager at Croner
SIMI GANDHI-WHITAKER is work winning director at EMCOR UK
SBC was revealed to be the UK’s most unequal bank as figures showed its gender pay gap had grown to 61 per cent. On average, women take home 18 per cent less than male colleagues, according to findings in 2018 and so what happens if other businesses’ gender pay gap increases or they fail to meet their targets at closing the gap? Publicly announcing an increase may affect female workers in the company, causing them to wonder why their employer has not only failed to improve the situation but has also allowed it to deteriorate. A potential method is increasing pay transparency to outline how all male and female employees are being paid within the organisation and the reasoning for this. Data collected could include salaries at recruitment, rates of promotion, and the proportion of mothers returning to a company after they have given birth. The company could also consider introducing more family-friendly options to enable mothers to come back to work flexibly, encourage the take-up of shared parental leave or
reaking the glass ceiling is more difficult for minority women because we sit at the “intersection of two historically marginalisbed groups”, says Wikipedia. So I was worried that the added nine months of maternity leave could really put a break on my career development. Nevertheless, since the birth of my first child I have become even more determined to live unlabelled. Juggling mum and work life with more sleepless nights, I am impatient to get on, pursuing a successful career, supporting others in my position, and being a positive role model to my little girl and the women who come after me.
arrangements for discounted rates at local nurseries to assist with child care. Some sectors may struggle to attract a female workforce because of stereotypes about it maintaining a ‘lad culture’.
“ON AVERAGE, WOMEN TAKE HOME 18% LESS THAN MALE COLLEAGUES” Employers can aim to counteract this by liaising with local schools or colleges to implement targeted campaigns aimed at young women. If they do currently employ female workers, they could provide further support or guidance to progress, which could be through mentorship schemes or performance self-assessments to stop them underestimating their potential. Employers are not legally obliged to have reduced the gap by April, but displaying a public rise in the difference in earnings between men and women could have a negative effect on the overall reputation of the company.
“WOULDN’T ANY FORWARD-THINKING BUSINESS WANT TO ATTRACT THE BEST TALENT?” When I returned to EMCOR UK after maternity leave I asked for a flexible contract with compressed hours, which the company happily granted. But I’ve met many
wonderful career mums who were surprised – a shocking eye-opener that my set-up isn’t the norm. Many working mothers I’ve spoken to end up employed on reduced-hours contracts, with commensurably less pay, but end up working full-time to achieve career demands. Juggling career and family life can be problematic, resulting in feeling guilty about not spending enough quality time with children. No wonder many women burn out and choose to be full-time parents instead. While I’m grateful to work for a company that takes family-friendly benefits seriously, I refuse to feel lucky – surely this is my right? Wouldn’t any forwardthinking business want to attract the best talent and do the best for their staff? Employers need to allow us all to work effectively and efficiently without compromising the worklife balance. My daughter’s birth has made this longrunning debate feel ‘real’ to me. More must be done if our children’s generation is to escape being defined as a label and the discouraging expectations that can still restrict their mothers’ career opportunities.
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V I E W P O I NT PERSPECTIVES
FM and social responsibility
JACKIE FUREY is director of Where Workplace Works and chair of IWFM’s WIFM group
JULIE KORTENS is managing director of Konnected People and former chair of IWFM
t seems that every week headlines reveal that a rising number of workers are struggling to cope while their personal lives, health and well-being suffer. Despite the research that tells us we are less productive when overworked, we still seem unable to change. Why? Well, simply changing our working habits is easier said than done. To make a real change, employers must tackle this as a cultural issue. They must strive to understand and communicate the negativity associated with overworking and do their best to prevent it becoming the norm. I recently read about a large Japanese advertising firm being fined for violating labour laws. This is the same firm from which an employee committed suicide in 2015 to escape overworking. These deaths have become such an issue in Japan that there’s a word for it – ‘Karoshi’. To prevent overworking becoming the norm, the importance of employee well-being must continue to rise in all organisations and the old-fashioned perception of ‘those who work longest, work hardest’ must be abolished. If
anything, working long days should be frowned upon and recognised as poor practice from the top down. Employers must have a stronger presence in defining working parameters and conveying to staff that there must be an agreed time when work stops. This may require harsh action such as banning work emails to enforce an ending to a working day.
ocial mobility is something that sets our industry apart and makes it special. There’s a place for everyone, regardless of their background or level of education. Our front-of-house and security teams and our cleaners are the public face of our organisations, providing opportunities for, and interaction with, local people. Some of the most successful projects our FM teams have been involved with have included apprenticeship programmes and local recruitment drives.
“THE IMPORTANCE OF EMPLOYEE WELL-BEING MUST CONTINUE TO RISE IN ALL ORGANISATIONS”
“IN RECENT YEARS, PRESSURE HAS COME FROM GOVERNMENT, OUR BOARDS AND THE MEDIA TO DO MORE”
We must also become better at identifying the signs of overworking before they become an issue while managers learn how best to support staff and colleagues to manage their time and reach their targets within the hours of their working day. We need to be clear; overworking will not improve productivity and businesses must be brave enough to make leaps in changing working behaviour. They can do this by investing in their employees’ lives.
As the public face of our organisations, workplace and facilities management are in great positions to forge a link with our communities by hiring local people. But in recent years, pressure has come from government, our boards and
the media to do more, or at least to measure and report on what we have done. Once we’ve decided that we want to add value, we need to look at everything we do and ask how it benefits the local area and people and how sustainable those benefits are. Being socially responsible means looking at our plans and actions and asking whose lives are going to change as a result of what we do. How are we going to measure the impact and how long are we going to measure for? Do we need to consult people living nearby before we act? How are we going to deal with unintended consequences? There are other questions too – most significantly, how do benefits compare with the costs? This is especially true for companies who engage with those who, for one reason or another, might be struggling to find a career. A great example is the Abilities in Facilities initiative, a partnership between Sewell FM and Mencap, which won our 2018 Impact on Society award. Abilities in Facilities looks to help people with autism to find jobs in our industry and there is no doubt that giving people a chance really does add value.
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V I E W P O I NT SEEN AND HEARD
Ideas and comments made at Workplace Futures 2019
“I HAVE SAID IT BEFORE WHEN ATTENDING #FACILITIESMANAGEMENT CONFERENCES THAT I WOULD LOVE FOR FRONTLINE STAFF TO ALSO BE ON THE PODIUM TALKING ABOUT COMPANY VALUES, ETHOS & MAKING A DIFFERENCE. IT WOULD HAVE SO MUCH MORE CREDIBILITY.”
“Partnership is going to replace the traditional outsourcing model to a large extent. All of this is going to require long-term thinking on the part of contractors and that is very difficult for PLCs to achieve because they’re under constant share sh price pressure for short-t short-term returns.”
MARK WHITTAKER, FM CONSULTANT SULTANT ION CHAIR, AND IWFM NORTHERN REGION WITH A VALID SUGGESTION TO DEEPEN ECTOR UNDERSTANDING OF THE SECTOR
GEOFF TUCKER, TUC SALES & MARKETING DIRECTOR AT NORSE NORS COMMERCIAL SERVICES, OFFERS A PREDIC PREDICTION FOR THE SECTOR
“Welcome to the employee experience of the VUCA world, where the contextt in which we operate is volatile, e, uncertain, complex ex and ambiguous”
“A SAFFRON, VANILLA “AFTER LA IS THE SECOND MOST EXPENSIVE SPICE IN THEE WORLD. UNEXPECTED EX LEARNING IN THE AFTERNOON LE NOON AREA HERE AT #WPFUT19 FROM @ANABASFM_MD.” #W ASFM_MD.” FACILITATE’S EDITOR MARTIN READ TWEETS FACILITAT TS AMID CR AS ALISTAIR CRAIG’S PRESENTATION, WHICH WAS ABOU UT SPICES NOT JUST ABOUT
ADELAIDE FORBES, HR O DIRECTOR AT MACE MACRO
“FUNDAMENTALLY, DAMENTTALLY TALLY, NG DELEVERAGING SHOULD BE THE WATCHWORDD FOR THE SECTOR””
NOTED"ED “THE INDUSTRY SHOULD BE H HONEST ABOUT ITS RACE RACE-TO-THE-BOTTOM PRICING AND SAY: ‘LOOK, PRIC THIS IISN’T THE WAY TO RUN CONTRA CONTRACTS. IT’S NOT FAIR ON WHAT WE’R WE’RE TRYING TO DELIVER.’”
IAN MARSON, TRANSACTION TRANSA ACTION ADVISORY DIRECTOR AT A EY, PROVIDES CLEAR ADVICE ADVIC CE TO AVOID THE CALAMITIES S OF CARILLION AND OTHERS OTHER RS IN THE CONSTRUCTION INDUS STRY INDUSTRY
RUBY MCGREGOR-SMITH MCGREGOR-SM CBE ADDS HER VOICE TO THE FAMILIAR REFRAIN TO SHIFT FOCUS FO ON LOWEST COST FOR SERVICES
“The kind d of peoplee that go to buy b vanilla vanilla pods [instead [insttead of vanilla essence], e Paul P Hollywo ood aside,, are Hollywood the sortt of peoplee that are very y clear on n what they are arre buying” ”
“My notes read ‘@LarchLucy: We talked about social value, transparency, race to the transpare vanilla, sex in the bottom, va elephants’ ” office, elep
ANABAS MD ALISTAIR CRAIG G GETS METAPHORICA ET AL ABOUT BUSINESS BUSINESS METAPHORICAL ATE D SERVICE PROVISION PROV VISION STRATEGY AND
SIMON IATROU OF MAGENTA MAG SUMMARISES THE SUMMARY OF THE CONFERENCE FROM LUCY LU JEYNES, LARCH CONSULTING
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V I E W P O I NT A B IT AB O UT YO U SINEAD BEGLANE is a workplace manager at ITV’s Waterhouse Square office
What do you do? I look after the cleaning and catering contracts including hospitality. I also manage the logistics/goods control and front-of-house teams plus the services they provide.
What attracted you to FM, and how did you get into the industry? After university, I bounced around different temp jobs and an internship but ended up at ITV after a four-month FM placement at a brewery. I was initially hired for a three-week stint as a FM helpdesk operator and enjoyed it so much that I am still here almost eight years later!
How long have you been in your current role? I have been the workplace manager of our new HQ for a year. Prior to that I was predominantly working on our relocation project but the two roles overlapped for much of last year.
Do you see yourself predominantly as a task or a people manager? A people
PHOTOGRAPHY: SHUTTERSTOCK /GETTY/ISTOCK
manager – getting all the tasks required for the workplace to run smoothly requires the cooperation and focus of my teams. My role involves providing a lot of support and advice to my teams by acting as a sounding board for their queries.
Would you describe your role as predominantly operational or strategic? Over the past year I’ve had to focus on the operational requirements of the business
BEHIND TH E JOB
SINEAD BEGLANE while we moved everyone into the new London offices and set up all our services. The relocation was driven by the ITV strategy. The FM team took this as an opportunity to review our operational approach, experiment with different ways of providing services and to implement change at the same time.
“I WAS ABLE TO BRING MY MUM, AN AVID CORONATION STREET FAN, TO SEE THE SET” posed my biggest challenge so far, particularly my involvement in our relocation. At the same time, I became a line manager for the first time, managing two new teams of nine people in total. Managing people is an entirely new experience for me.
How many people are there in your FM team, and who does the FM team ultimately report to? I have nine direct reports but the ITV FM team has 56 people… 31 looking after our London hub sites and regional buildings in the South with the remainder looking after our Northern hubs, studios and regional buildings. We report to Ian Jones, director of workplace services and estates.
If you could change one thing about the industry, what would it be? It can be relentless. As someone who naturally likes to focus on a particular task and complete it, I can struggle with the constantly changing demands that you often can’t predict are coming your way.
My top perk at work is… The
If I wasn’t in facilities management, I’d probably be… Who knows? I was
company I work for is instantly recognisable to most people. My family has watched ITV since I was a child, so to be part of it is great. I was able to bring my mum, an avid Coronation Street fan, to see the set as part of a family day.
struggling to find my career path when I started temping here after completing a history degree, travelling for six months and then trying out various industries but never feeling quite right about them.
Which “FM myth” would you most like to put an end to? I get the impression
What has been your biggest career challenge to date? 2018
that when I tell people outside of the FM industry what I do, they assume that it’s just
maintenance, cleaning or catering, but it’s so much more.
What single piece of advice would you give to a young facilities manager starting out? Get involved in different aspects of FM, rather than strictly M&E or soft services. When I moved on from being a helpdesk operator I worked alongside our procurement team, which taught me a lot about managing contracts.
What was the weirdest day you’ve had in the office? It was the weekend before we rolled out ITV’s new brand a few years ago. Everything on screen was changing on the Monday so everything in our buildings had to be ready. From access control passes to pens to mugs to the flags flying on our building along the South Bank.
What FM job in the world would you love more than anything? I shadowed a guest relations manager at one of the big hotels in Waterloo a couple of years ago and was amazed by the level of detail required. They recognised the impact of social media and the power of a personalised service, which can leave a lasting impression on visitors.
Your life outside FM mostly involves… Spending time with family and travelling whenever I can.
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V I E W P O I NT T H I N K TA N K
T HINK TANK
esearch suggests that frontline ‘desk-less’ workers in retail, hospitality and entertainment industries are turning to unapproved messaging apps such as Facebook Messenger and WhatsApp for work-related communications – often without the HR department’s knowledge. A study by private entrepreneur social network Speakap stated that half of global frontline workers admit using messaging
apps up to six times daily for work reasons. Sixty-eight per cent of respondents said they would stop using social media sites if their firms provided an internal communications platform to keep them up to date on company/product information and learnings with colleagues, teams, office staff and management. They also regarded document management/access and clearly communicated timelines for their work more important than AI, video
or voice recognition technology. Letting workers continue to use popular apps could also compromise a firm’s data security, undermine employee well-being because of the 24/7 nature of such apps and cause a company to fail an audit even if a data breach does not happen especially in senstive, highly regulated industries. So this month we asked, is your communications system good enough or do workers rely too much on messaging apps?
As a contract caterer that operates in London, we’ve historically relied on a weekly email newsletter to our frontline teams’ personal emails, complemented by daily onsite meetings where company news could be disseminated. We all operate in London, so we’re lucky enough to see teams on a weekly basis and not only be at the end of a phone, but the end of a short walk too. The open rate of our newsletters was fairly low, at about 60 per cent; the feedback we had from our team was that they wanted more. We recently launched our bespoke dashboard and centralised comms app ‘VachChat’ to streamline our internal communication as the result of listening to what it was that would help our teams do their jobs better and feel a more inclusive part of the business. Seventy per cent of our staff don’t have a business-specific email address, but as long as they can have access to the internet and/or a smartphone, they can hear and see what’s going on. Before we launched the app, we were confident that the comms we were sending out via the weekly newsletter were read, but just not as much as they should’ve been. VachChat allows us to reach our staff in a way that’s convenient for them and allows us to share news in realtime… everyone in our business can now post on the timeline.
The key for us is to treat our 25,000 colleagues in the UK as consumers. People won’t necessarily read something just because they receive it. We focus so much on what we want to say that we forget to consider what we want the person at the other end to think, feel or do as a result. I think businesses should communicate in as many different ways as possible. This is particularly important for companies like ours that have a diverse workforce made up of people of different ages, backgrounds, beliefs and customs, which is indicative to FM. We use lots of different mediums, so we have the best chance of reaching our frontline teams in a way which suits them. This includes messages on email payslips, posters which are available for managers to distribute to client sites, ‘Atalian World’ – our learning platform which all colleagues can access, social media including Twitter, YouTube, WhatsApp and LinkedIn, and sometimes old-fashioned paper letters. But there are downsides to every method… Posters can end up never making it to site. People move to a new house and can forget to let us know their new address, so letters fail to reach them, and many people aren’t on social media.
ZOE WATTS , commercial director at Vacherin
KELLY HOWELL , HR director at Atalian Servest
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V I E W P O I NT T H I N K TA N K
Join the Think Tank to have your opinion reflected here — editorial@ facilitatemagazine.com
PATRICK VAN DER MIJL
DATA BREACH RISKS We know from our research that 53 per cent of frontline workers use consumer messaging apps, such as WhatsApp, up to six times a day for workplace communication, with 16 per cent saying their HR departments are unaware of such use. Those numbers should be an alarm signal for businesses. But a key reason this is happening is that workers simply don’t understand the types of problems and risks they’re exposing their employers to. And using these apps as internal communications tools simply because they’re popular or have wide reach just aren’t good enough reasons. Data from our study shows that the 24/7 nature of messaging apps like WhatsApp can make it difficult to maintain a work-life balance. Plus, there are the data security challenges that arise,
especially when you consider the sheer number of data breaches and violations Facebook and WhatsApp have faced over the last several years. And using messaging apps like WhatsApp creates a mass spamming style of communications. Messages that firms deliver to their non-desk workforce can’t be spammy, irrelevant or insensitive to employees’ needs, as it won’t just turn them off – it’ll make them less efficient and less connected to their employer’s purpose and vision. Employees are crying out for more personalised, relevant and intuitive communications methods. When we asked ‘if your company provided an internal communications platform/ app, would you stop using apps and social media sites to communicate with fellow colleagues?’ 68 per cent of the respondents in our study said ‘yes’.
WHAT’S UP? I’VE REBELLED! The challenge with all of these communication methods is just that, there are so many communication methods now in an average office that people are struggling to keep up with all of the messages. There are at least eight different electronic methods of communication available in our company, from basic email and texts to Twitter, WhatApp and now Slack. I have rebelled – you can only get hold of me now on email or you can ring me and actually talk to me (but I’ve turned voicemail off too!) But at least I feel I’m back in control!
PATRICK VAN DER MIJL ,
co-founder of Speakap
CONTRIBUTING IDEAS The true measurement of whether internal comms is effective is dependent on what the ultimate objective is. Are you communicating with mass internal audiences to facilitate engagement? Is it to drive operational excellence? Is it to maintain contact with a disparate workforce? Is it all of the above? Progressive business will have developed internal comms mechanisms that are safe, accessible and inspiring. We employ more than 900 people in different locations around the country, and we understand the need to communicate appropriately with a diverse workforce. That’s why we launched our #bmfamily app last year. Our new mobile communication and messaging app has transformed our communications.
In the five months since it was introduced the on-the-go messaging app has already become a crucial element of our employee engagement. It provides a secure online platform to share information through an Instagramstyle news feed as well as GDPRcompliant one-to-one and group chats. It enables access to a mobile team directory, video and photo sharing, flash polling and a mute function that allows staff to snooze notifications until their next shift. Not only has the app become a way to support training and development by sharing best practice, every team member is able to have direct communication with the company founders as well as other colleagues and senior management, enabling them to contribute their ideas.
SURVEY RESULTS Is your internal communications system failing your employees?
22.22% Yes, it is good enough
44.44 % No, it is not
LIN DICKENS , marketing director,
It is getting there
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V I E W P O I NT
INTERVIEWS AND FEEDBACK
… is VINCI Facilities account director for the London Stadium
Vinci Facilities was the winner of the Highly Commended Award for Team of the Year at the BIFM Awards 2018 (now the IWFM Awards) for successfully running a contract at a fully active sports and events arena.
MY ROLE I was responsible for the delivery of the FM services – M&E, cleaning, waste, helpdesk, reception, small projects – at the London Stadium, including providing support for all events (football, rugby, concerts and athletics).
e are an efficient and happy team, resulting in customers having a memorable experience while at the same time ensuring value for money for services provided. Winning the award has been great. The team has been recognised for their excellent work at the country’s busiest multi-use stadium. It has also been a morale booster and incentivised us to always strive for improvement and excellence, which results in better customer service. The award has also provided a formal, external, professional and objective recognition from our peers, recognising our commitment to customer service, quality service and our commitment to a great employee experience to ensure it is the place of choice to work. But our customers ultimately remain the true judges of the quality service we provide and this is confirmed in the letters of appreciation that we receive and the awards won by the stadium.
S OCI A L VA L UE
WHAT’S THE MOST IMPORTANT SOCIAL VALUE METRIC? MICK ANDERSON deputy chair of IWFM North East region Social value can mean different things to different people but it’s important to choose a few key areas to focus on. An obvious starting point is with local employment and training schemes such as apprenticeships and getting people such as ex-Forces into work. They’re easy to measure and straightforward to implement. You can count how many people have gone through an apprenticeship scheme over a certain period of time, annually or after five years, for example, as well as work out the percentage of staff that are employed within a 2 or 3 or 5-mile radius. The broader social benefits of boosted local economy may be harder to link to the actions of individual companies or projects, but it will all help to add social value.
IAN FIELDER chair of IWFM South Region The single most important metric to efficiently measure social value is to consider the impact and difference an organisation makes (or plans to) to people, society, economy and the environment. This is done most effectively through feedback to help evaluate and measure everything that helps us to know better the impact an organisation is having. Measuring through feedback drives the effectiveness, efficiency, quality, value and results in getting support for more funds, volunteers and recognition. However, whatever metrics are used, the key to measuring social value is to effectively communicate the purpose and actual impact to those receiving the service.
PAULINE SIMPKINS chair of IWFM South West Region
THE IMPACT This stadium won the Live Music Business Awards Best Venue Teamwork in 2018 and we receive consistently high scores in mystery shopper audits by third parties. But we are always striving for improvements, acknowledging feedback and looking at leaner ways of delivering the services.
firstname.lastname@example.org or reach us @Facilitate_Mag
Each month we feature thoughts from, or debates involving IWFM members. Whether you’re responding to hot topics or explaining your volunteering activity, your views can appear here.
T E AM O F T HE YEA R
Have your say
The simple answer to this is there isn’t one single most important metric. As varied as social values are, metrics are too, so it depends on the type of social value that one aspires to deliver. Some sectors measure social return on investment where long-term savings, usually to the public purse, are mitigated by more immediate investment, perhaps as a preventative measure. But is it better to profoundly improve the life of one person or to marginally improve the lives of 10 people? It all comes back to clearly defining what the true value to society is in the first place.
WHAT’S NEXT? We are preparing for concerts and Major League Baseball (MLB) coming to the stadium in June. It’s the first time that MLB will be played in Europe, so it is a massive privilege to be part of such a historic, high-profile event. And, of course, winning the Team of the Year Award at the IWFM Awards in October this year.
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V I E W P O I NT EVENTS
CALLS TO ACTION Events, activities and publications worthy of your attention
INDUSTRY WIDE Workplace Trends Research Spring Summit 21 March – British Library, London Conference comprising research and case studies chosen for their usefulness and topicality. workplacetrends.co/ research-spring-summit
Managing Mental Health in the Workplace 26 March – London Focus on how good employee mental health can affect organisational success and sustainability. Strategies to help employees to achieve mental well-being will be explored. tinyurl.com/FACMAN0203
Future of Workplace Live 4 April – London Future of Work Live connects industry experts with business leaders to debate the future of the workplace. tinyurl.com/FACMAG0201
The Facilities Event 9-11 April – NEC, Birmingham Exhibition and conference for facilities managers. facilitiesevents.com/fm-home
The Design & Management of Learning Environments 16 May 2019 – London Conference covering best practice for education environments. email@example.com
IWFM REGIONS LONDON IWFM London Region Conference 14 March – Art Deco Freemasons Hall Event with the theme ‘FM as a Disruptor’. tinyurl.com/FacMagLRC
Managing Security and Protecting Your Assets 22-23 May – London
DATE FOR YOUR DIARY IWFM CONFERENCE 2019 24 APRIL — London, St.Paul’s April will see the first IWFM National Conference take place in London. This new national summit for the profession replaces ThinkFM and is aimed at workplace and facilities practitioners at any stage of their career journey. IWFM’s flagship conference will provide industry members with insight, inspiration and skills needed to succeed, and help to confirm the workplace and facilities management function as core to the business operation. Read our feature section (p17-30) to explore some of the conference themes. iwfm.org.uk/Events/IWFM-Conference
IWFM ACADEMY CLASSES
North Region Charity Ball 2019 4 July – Hilton Hotel, Manchester
Explains how security is breached and ways you can mitigate that risk. tinyurl.com/y784ol6l
IOSH Working Safely 11 June – London A full understanding of your personal health and safety responsibilities in the workplace. tinyurl.com/y98ty5rc
Maximising Value from your FM Data to Encourage Lean Principles 24-25 June – London Turn data into insight and use quality/lean management to create more value from less. tinyurl.com/yanophss
Operational Space Planning 13-14 March – London
Black-tie social event attended by 400 workplace and facilities management professionals. Tickets include a three-course meal, live music, entertainment, charity raffle and a DJ. firstname.lastname@example.org email@example.com tinyurl.com/FacMagNRCB
Optimising space to save money, improve customer experience and increase efficiency. tinyurl.com/yclfbanv
Improving the Customer Experience 19 March – London Improving your customer’s experience and creating an advocate out of every customer. tinyurl.com/y7v6jf67
SOUTH WEST FM and Social Value 20 March – University of the West of England
Managing Building Services 25-26 March – London Reducing risk and improving the management of building services. tinyurl.com/y9nnndlb
Event focuses on the relationship between facilities management and social value, which is defined to encompass people, sustainability, community and charity, diversity and well-being. tinyurl.com/FacMag03Social-Value
IOSH Managing Safely 1-3 April – London Practical actions you can take to handle health and safety within your team. tinyurl.com/y8ka8olw
FM and Social Value 26 June – University of the West of England
Facilities Management Strategy 25-26 April – London
Focus on cleaning and security, managing people and catering in different types of contracts, as well as best practice for contract management and procurement. tinyurl.com/FacMag03-Soft-FM
Strengthen your strategic skills and give your business a competitive advantage. tinyurl.com/ybj9rw3m
IWFM ACADEMY ONLINE Innovation CPD Hours: 4 How to generate innovative ideas, select them and manage risk when applying them. tinyurl.com/y929rjj6
Presentation Skills CPD Hours: 4 How to manage your nerves and hold a room with an informative presentation. tinyurl.com/yc7jab3t
Introduction to Facilities Management CPD Hours: 6 Gain a basic understanding of the profession to see whether you want to proceed further. tinyurl.com/y7aqowwo
Managing Workload CPD Hours: 6 How to manage your workload effectively. tinyurl.com/yatgz43b
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V I E W P O I NT IWFM NEWS
IWFM JO B
IWFM Non-Executive Director position – could it be you?
ominations for the IWFM Board this year will open at the end of March; have you got what it takes? This is an excellent opportunity for qualified members to join the Board and exhibit their strategic and leadership skills, and to play a key role in shaping the Institute’s future. To be eligible to stand for a non-executive position you need to be of IWFM Member grade or above. Corporate members or group member main contacts or nominees (unless they hold their own professional membership of MIWFM grade or above) are not eligible to stand. This year there is one non-executive position available. Nominations will be open for one month for any eligible member to put themselves forward and the Board will be looking for specific skills to complement those it possesses already. A non-executive company director’s role is unremunerated, and there are statutory duties that you must be able to fulfil. Eligible members will receive an email from our independent scrutineers, UK Engage, explaining how to self-nominate at the end of March. Once elected, the new non-executive director will take their role on the Board from the close of the AGM 2019.
IWFM CHAT On the subject of having the right skills for the job, we found a recent discussion on LinkedIn, started by Nick Fox, about the demand for soft skills an interesting topic. Here’s what followed.
“If ever there was a time to brush up on your soft skills it’s now. The more people I talk too, across public and private FM, especially in local government, there is a noticeable shift to recruit based on someone’s personal attributes and soft skills rather than their technical skills. The sign of things to come?” NICK FOX, SENIOR FM PROFESSION (HARD FM)
“Soft skills and their significance should never be understated. Technical skills can be taught, but a natural ability to communicate, an affinity for excellent customer service, negotiation and leadership skills are much more difficult to train. Naturally, if this ‘soft skills’ bias is taken, then this needs to be supported by a learning and development programme to ensure those technical skills also become embedded. That way, an optimal ‘skills, performance and behaviour’ approach can be to the benefit of the individual, our customers and the organisation as a whole.” LISA HOFEN, HEAD OF STRATEGIC FACILITIES MANAGEMENT AT UNIVERSITY OF OXFORD
“I’d like to think it has been that way for a while. I firmly believe people buy people… [and] to a degree, technical skills can be learned.” LEE PENYCATE, CONSULTANT AND FINANCIAL ANALYST
Discover more on the IWFM website www.iwfm.org. uk/about/governance/volunteer or send questions to firstname.lastname@example.org “From my own perspective of working in the Library and Information Services (LIS) sector for many years, the emphasis is gradually changing from recruiting for people with theoretical knowledge to people who display the right attributes, as theory can be learned on the job. Librarianship has become much more front-facing as we seek to become advocates and facilitators of information and knowledge, e.g. teaching information skills, persuading high-level stakeholders re budgets, etc. Previously, we were the gatekeepers and power holders which allowed for, I believe, no impetus to develop the softer skills which make an individual/organisation achieve their objectives.” CHARLOTTE HEPPELL, HEAD OF LIBRARY SERVICES AT JOINT SERVICES COMMAND STAFF COLLEGE
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DON’T MISS THE UK’S LARGEST TRADE EVENT FOR CLEANING & HYGIENE
Register now to attend the free Estate and Facilities Management session at the Cleaning Show 2019 With more content than ever before at the Cleaning Show 2019, we’re pleased to announce details of the three day conference programme which will take place on the show floor. With one day dedicated to Estate and Facilities Management, you’ll be able to learn about managing waste in hospitals, the impact of hand drying options in the healthcare environment and listen to views from the Green Cleaning Guru. There will also be two panel debates discussing how recycling in the cleaning sector can aid the circular economy and also understanding the bigger picture of cleaning and waste management. Visit the website for the full conference programme and register for your free pass now.
LIMITED STANDS REMAINING CONTACT US TO FIND OUT MORE Vanessa Van Santen-Smith Sales Director T: +44 (0)1737 855 041 E: email@example.com Michelle Andrews Business Development Manager T: +44 (0)1737 855 086 E: firstname.lastname@example.org
REGISTER NOW for your free pass to attend the Cleaning Show 2019 at ExCeL London
WWW.CLEANINGSHOW.CO.UK p41.FMW.Mar19.indd 2
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A DV E RTI S E M E NT F E ATU R E MCFT
MEASURING VALUES Brand values
GEORGE ROBERTS-SMITH — Regional Director MCFT Middle East
LEE WILLIAMS — Operations Director
business typically starts in one place and with one specialist. An expert baker, perhaps, or a skilled designer, maybe a car mechanic. And if it’s successful, one day that business realises that it now comprises many facets, and that its ongoing success will be a matter of mastering all of them. Cripes! So then, as a matter of course, you’re obliged to follow best practice in all that you do. But where do you find out
he phrase ‘brand values’ is much-used, but what does it mean? Put simply, it’s the beliefs and behaviours that inform decisions and direction; behaviours so real that they’re not only lived, but scaleable and transferable. So when we set up MCFT in the Gulf a few years ago, “the way we do things in the UK” became “the way we do things in the Gulf”. Without mission statements on the walls because it’s all about how we behave. For us it’s all about transparency: open communication; ownership and accountability; internal meetings in which the whole team gets the opportunity to input into our vision, direction and standards. It’s also about being market-aware and customerobsessive. How can you hope to align your offer and apply those brand values if you’ve not strategically reviewed the opportunity, the requirement and the competition? Of
course, commercial value is defined by the customer – although sometimes, they may need help in understanding a niche provision.
“AESTHETICS AND COMMUNICATION EVOLVE – BUT CORE BELIEFS AND VALUES REMAIN CONSTANT” Incidentally – and, we think, interestingly – actual branding evolves over time. McFarlane Telfer became too cumbersome and difficult to pronounce in, say, Arabic or Dutch – so we have progressed it to an abbreviation: MCFT. Graphics also develop over time and need to be evaluated in a global context. It’s a constant case of review and adjust. Aesthetics and communication evolve, but our core beliefs and values remain constant.
“ACCREDITATIONS… DEFINITELY SEND MESSAGES ABOUT THE STANDARDS YOU ASPIRE TO” about quality management? Environmental policy? Health & safety? Fleet management? You soon realise you have a choice: view the pursuit of best
practice as simply a series of box-ticking exercises (quality management is notoriously prone to them) or see it for the rigorous yet beneficial ongoing exercise in professional development needed to sustain your commercial advantage. Then suddenly you’re undergoing an external ISO audit, having become one of the first organisations to achieve ISO45001 Health & Safety Management. But still you’re wondering how you measure up against others. Not necessarily firms in your own sector, but instead the established role models for customer service or tech development. Where do you sit in relation to those? So you put yourself forward for Chamber of Commerce, International Export and other awards. Might this portfolio of accreditations bring customers? Perhaps. But it definitely sends messages about the standards you aspire to – thus helping you recruit the right, continuously developing teammates.
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A DV E RTI S E M E NT F E ATU R E MCFT
How to build, sustain and take forward your competitive advantage – and resist the siren voices of the race to the bottom. WWW.MCFT.COM INFO@MCFT.COM 01628 822 598
Eyes on the future
KAREN MCDONAGH — Development Director
TERENCE HORSMAN — Business Improvement Manager
K, so you’re really happy with your current set-up, and all the pieces of the jigsaw are in place. So is it time to relax? Sorry, the world is simply moving too fast. And while the key to quality is your people, the key to enabling and facilitating their performance is your IT – connected IT, linking your systems to both your customer and supply chain.
ustaining the delivery of services to industry standards is dependent on an organisation’s embedded values and best practice being lived and delivered by its people. It’s as simple as that. But given that it’s your people delivering the service, what do you need to do to make sure that such a high level of service delivery is sustainable in the long term? In short, you need to attract, develop and engage the best people. Doing so in practice may not be so easy – and we agree, it isn’t. In our case we operate in a field with no recognised training programmes or qualifications. Nevertheless, ensuring that your focus is kept on your people really is simple. You just have to work at it. Relentlessly. We at MCFT have found that, with effort, it is in fact eminently doable: from the City-&-Guilds-approved technician programmes
through to our ILM-approved, junior-leadership programme (for higher grade apprentices, interns and grads), to the widest possible range of CPD for seniors – we provide a solid career progression path.
“ENSURING YOUR FOCUS IN ON YOUR PEOPLE IS SIMPLE – YOU JUST HAVE TO WORK AT IT. RELENTLESSLY.”
“IN THIS EVER MORE DIGITALLY ENABLED AGE, HOW DO WE GIVE CUSTOMERS SUFFICIENT VISIBILITY? ”
When you have case studies of smiling faces mixed with a social conscience (sports, social and community activities) – and the genuine challenge and opportunity of a growing business in the UK and abroad, you have an attractive message for potential recruits to complement your recruitment team’s efforts with local schools, colleges – and even foreign universities.
Whether these are linked bought-ledger systems, compliance portals, web
shops or online tenders, the future is digital and datarich. Access to it is instant, and at the click of a button. When MCFT started, it was because we couldn’t find the right enterprise resourcing (ERP) solution for our niche industry. Today, solutions allow instant updating of planned maintenance tasks so field teams can know what needs checking when on site. As we look to an ever more digitally enabled age, how do we give customers (and our manufacturer partners) sufficient visibility of incident trends and asset-life predictions? Can we use artificial intelligence (AI) to harvest customer interactions but also facilitate our technicians’ diagnostics and field resolution? Could artificial reality make remedial work safer and more efficient? The only way to find out is for us to invest, continuously strive for excellence via great, engaged people – and keep our eyes on the horizon.
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Is 2019 9 your year? Entries are now open for the IWFM Awards 2019 Start your application and showcase how you, your team or your organisation is driving innovation and delivering exceptional results in workplace and facilities management Entries close on 29 April To enter or view the list of categories and how the application process works, visit www.iwfmawards.org IWFM Awards 14 October 2019 Grosvenor House Hotel, London
IMPACT - INNOVATION - PEOPLE
Study online anywhere anytime
Keen to improve your credentials but ﬁnding it hard to commit to face-to-face courses? IWFM Direct is a ﬂexible route to an internationally recognised qualiﬁcation.
Study online E qualiﬁcations@iwfm.org.uk T +44 (0) 1279 712 651 iwfmdirect.org.uk
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INSIDE 46 47 48 52 56
Claire Curran: Foster the exceptional Fergus Roseburgh: Stop the bully May Laghzaoui: Energy tax breaks Mark Buttery: Division of assets Ben Gillam: Two office ‘Cats’ to consider
P O RTA BLE CHAIRS
THE L ATE ST L E A RN I N G A N D BE ST P RAC TI C E
BRING A SEAT
tanding in queues, BENEFITS watching your child’s OF THE football match, no seat CHAIRLESS at the pub? These are CHAIR all situations in which Employees can work in you might reasonably want a comfortable position to have a portable chair Decreases stress on strapped to your back. legs and back For factory workers who Reduces sick days have to stand for a significant Improves posture portion of their working day Ensures jobs even the idea of a portable chair with progressed age that could offer them an Less than a minute impromptu seat when moving to put the device on along the production line must Removes clutter be even more appealing. of chairs and Enter Swiss start-up Noonee auxiliary seats – creator of the Chairless Chair. The exoskeleton, which straps to the lower body, offers workers a seat and also supports them when bending, crouching and squatting. c The device frame, which weighs 3.5kg, 3.5k can be adjusted to an individual user’s height and in girth. It straps around the hips g and runs along the backside of the legs, fitting into various brands of work-safe footwear to hold it in place. It is made predominantly of lightweight and durable polyamide. Noonee describes the product as a wearable ergonomic p mechatronic device that me allows allow wearers to move around u unencumbered and relieves some of the muscular tension associated with standing for long periods. The company adds that the Chairless Chair is useful given the realities of an ageing workforce. Older employees are at greater risk of developing back pain. It cites statistics that show problems with muscle tissue and the skeleton are responsible for a quarter of all sick days, with older workers more likely to take sick days than their younger colleagues.
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K N OW H OW C AREER DE VELOPMENT CLAIRE CURRAN is managing director at Linaker
ecoming an exceptional employee is not a solo task – exceptional teams are created through trust and hard work. By believing in a common goal, we all ‘row in the same direction’ and support one another, recognising when someone has the ability to succeed and the passion not to give up. Creating this environment for employees to become exceptional is undeniably linked to culture, which, of course, is defined by a company’s leadership but to really take hold, it requires buy-in from everyone. That means ensuring that everyone in the business has a voice, and those voices, while united, are also diverse. At Linaker, for example, we have so much diversity in experience, qualifications, skill sets, ages, gender and culture that every opinion and perspective helps to shape solutions. Chairman Bill Harrison laid down solid foundations over 25 years ago that very much reflect our culture. We’re a family business and we act like one; we debate, adjust, test theories openly and trust each other to face challenges as a collective. Our culture is probably one of the reasons why we survived the economic downturn in 2009/2010. My leadership style is quite different – but complementary – and it has added a new, exciting dynamic to how we
do things. Bill is methodical and wise, whereas I quickly seize opportunities and love to celebrate successes daily. As a leadership team, we enjoy the diversity of our relationship. I welcome his calm, considered and experienced stance on all things and I know he would comment on my tenacity, passion, energy and resilience; we both share the commitment to succeed.
Excellent teams are about excellent people inspiring each other to move towards a common goal and leadership that keeps them on track. It leads to companies that are dynamic, exciting and effective and for us it is proving to be successful. Remember, being exceptional is not a destination; it’s a journey – probably without an end. Keep learning and absolutely enjoy the ride.
Pockets of excellence vs pockets of challenge
A ‘how to’ on being exceptional
When you find people who strive to be exceptional, you have to listen and adapt, let them use their own expertise to evolve and develop personally and professionally. As every part of the business overlaps into the next, this evolution has to stretch the width and breadth of the company. Otherwise you end up with pockets of excellence and pockets of challenge.
Here are my tips for those wanting to excel and achieve more. It’s up to both leaders and their teams to co-create workplaces and organisational cultures that help people thrive.
Don’t wait for someone to say you’re exceptional, be exceptional. Be honest with yourself about your weaknesses and work on improving them. If you’re sure
LE A DE R S H I P
FOSTER THE EXCEPTIONAL The role of a leader is to create conditions for employees to thrive, says Claire Curran
about your strategy or have a great idea, shout about it.
Be resilient. No one can stop you from being who you want to be, except you. You cannot beat someone who just keeps on getting up and trying again.
Be original. Don’t be defined by someone else’s ideal. Be Northern, be funny, be passionate, be enthusiastic; people buy into people. Being authentic is incredibly important.
Listen and be humble. Embrace change, innovation and a difference of opinion. Know when to say “I got it wrong” and understand that not everyone is like you. Learn how to be prescriptive in your communication and the motivation of others.
Strive for balance. I’m still learning how to juggle several life goals harmoniously. Remember why you’re striving for career goals in the first place and celebrate them. Don’t let your work encroach on sleep or well-being.
Always have integrity. Make the hard choices for the right reasons. It’s always better to do the wrong thing for the right reason than the right thing for the wrong reason. Live and breathe your own ideals and beliefs.
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K N OW H OW C AREER DE VELOPMENT FERGUS ROSEBURGH is owner of UK Workplace Bullying
ullying’ is a subjective and pejorative term. There are many definitions and, while they tend to adopt common themes, there is no consensus on one single definition. A widely accepted definition comes from the Advisory, Conciliation and Arbitration Service (ACAS). Bullying is “offensive, intimidating, malicious or insulting behaviour, an abuse or misuse of power through means that undermine, humiliate, denigrate or injure the recipient”.
WOR KPLACE R E LATI ON S
STOP THE BULLY Stamping out workplace bullying is a challenging task and requires the right set of personal skills, says Fergus Roseburgh
feel that you are too close to a dispute, then it may be unwise to become involved as those affected may perceive you as being biased.
Be reasonable Rather than focusing on whether the behaviour meets some narrow definition of bullying, it is easier to determine whether the behaviour is acceptable or unacceptable by any reasonable standard. Although severe incidents occur, bullying tends to be quite subtle and, when viewed in isolation, can even seem trivial. It is the pattern and regularity of incidents that generally act as main indicators. My interest in understanding workplace bullying stemmed from advising an employee who felt bullied. A prolonged debate ensued between management, HR and the trade union as to whether the incidents reported were simply firm management or constituted a narrow definition of bullying. This caused an unnecessary and costly diversion to the real question at hand: Was the behaviour acceptable or unacceptable within the workplace? As leaders, do not become confused or distracted by these types of debates. I have never come across management theory or leadership style that suggests that any workplace message or instruction needs to be delivered in a threatening or undignified manner. As an employer, manager or leader, you have a legal duty
of care towards employees and therefore a responsibility to resolve any complaints that arise – as well as a moral duty.
Ignoring conflict between employees will often make things worse. On an informal level, it may be possible to resolve a complaint through one-toone sessions with employees, listening carefully to the issues and assisting with suggestions for resolving the situation.
Cultivate a mindset for resolution If you are a leader or manager having to deal with a complaint of potential workplace bullying, do your research. You must act: objectively independently impartially confidentially. These are some core considerations when dealing with workplace bullying:
Ask for help If you don’t feel you have the skills to deal with the situation delegate to someone who has.
Don’t get too involved Mediation may be an alternative and should only be undertaken if you are suitably qualified. If you
Confronting conflict Develop the confidence to handle conflict situations.
Follow policy and procedure When dealing with a formal complaint, it is vital that company policies and procedures are followed and roles and responsibilities are clearly assigned. It is always advisable to make sure that an investigation is as independent as possible and undertaken by someone suitably qualified. If you are responsible for deciding, what, if any, disciplinary penalty needs to be imposed, you must be separate from the investigatory process. The aftermath of complaints and investigations can have a negative impact on a team’s morale and performance so, as a leader, it’s important that you develop your skills to identify what team-building initiatives need to be employed.
Lead by example Dealing appropriately with complaints of workplace bullying can result in a positive resolution for all those involved. To minimise such incidents occurring, lead by example. Be fair with everyone and set the standards for them to follow. Create a positive code of conduct in conjunction with staff, as this will help to provide a reference point by which to judge behaviour and promote a culture of dignity within the workplace.
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K N OW H OW EXPL AINER MAY LAGHZAOUI is ETL project coordinator at The Carbon Trust
nhanced Capital Allowance (ECA) tax relief can be secured by purchasing energyefficient equipment listed on the UK government’s Energy Technology List (ETL). The ETL currently lists about 15,000 of the most energyefficient products across 57 technology categories. The ETL is composed of two separate sub-lists: the Energy Technology Product List (ETPL), which names qualified energy-saving products, and the Energy Technology Criteria List (ETCL), which specifies the energy-saving performance requirements that products must meet or exceed to be supported by the ECA scheme. Most purchasing businesses will only have to concern themselves with the ETPL. Technologies supported by the ECA scheme are: Air-to-air energy recovery; Automatic Monitoring; and Targeting (AMT); Boilers equipment; Combined heat and power (CHP); Compact heat exchangers; Compressed air equipment; Heat pumps for space heating; Heating, ventilation and airconditioning zone controls; Lighting; Motors and drives;
by the ETL team across the relevant technology categories, providing a benchmark for what represents top performance. Businesses can claim 100 per cent accelerated tax relief on these products until April 2020. But while the clock is ticking on the availability of ECA tax relief, the government has no plans to stop supporting the ETL in April 2020. Based on rigorous energyefficiency standards and testing processes, the ETL allows manufacturers to claim that their products demonstrate top quartile energy-saving performance, and offer customers operational savings when compared with less efficient alternatives. When it comes to buying new equipment, FMs are looking beyond upfront capital costs to consider total cost of ownership. This is why the ETL has become an integral part of the procurement processes for many large businesses and public sector organisations. This brings several benefits. When designing energyefficient features for new or existing buildings, selecting equipment from the ETL can contribute to achieving SKA rating or BREEAM assessment. Both schemes include
ENERGY EFFICI E N CY
ENERGY TAX BREAKS Facilities managers can earn a tax break on their next capital energy-efficient equipment purchase, says May Laghzaoui Pipe work insulation; Radiant and warm air heater; Refrigeration equipment; Solar thermal systems; and Uninterruptible power supplies. The ETL is a free-to-use list that provides businesses with confidence that they are buying plant and machinery with a high standard of energy efficiency – typically the top 25 per cent of products in the market. This is backed by regular independent evaluations of the market
ETL-listed energy-efficient equipment in their criteria. The types of savings that can be achieved through buying products on the ETL are shown in the following example of a refrigeration system controls upgrade. The annual savings achieved at a commercial site running eight evaporators and one cold room are calculated as: £2,900; 26,200 kilowatt hours; and 9.2 tonnes CO2. With a typical additional capital cost of £3,600 and additional lifetime energy and ECA benefits of around £31,000 at today’s prices, the financial benefit of choosing an ETL listed product is over eight times the additional cost. And with a potential ECA of about £6,400 in year one, plus additional energy savings, the extra capital cost is recovered within a year of purchase. This is based on the assumption that refrigeration system controls lead to 10 per cent energy saving for a system using 262MWh/year. Improving levels of energy efficiency helps organisations reduce operating costs and energy bills, resulting in a shortened payback period for new equipment and strengthening the business case for action. Another benefit of using higher energy-efficiency equipment is lower CO2 emissions, helping companies meet required internal or external sustainability targets. FMs should make the most of this time-limited window and benefit by upgrading to high-performing energyefficient equipment.
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Advancedâ€™s legend legendary quality and performance standards are demonstrated by the many landmark and local approvals we hold around the globe.
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K N OW H OW EXPL AINER MARK BUTTERY is a solicitor in the family law team at Ansons
he beginning of a new year is a busy time for divorce lawyers in the UK, with inquiries rising threefold once the endof-year holidays finish. While divorce is a highly emotional matter, experienced family lawyers work hard to understand their client’s perspective, advise them quickly and cost-effectively, helping them to avoid ending their marriage in court.
Take a team approach While many consider a strong marriage to be based on good teamwork, a good divorce will also rely on the efforts of many lawyers and other professionals, collaborating closely to deliver the desired outcome for their client. Children in the relationship can undoubtedly increase the problems during a divorce, but matters can be seriously tricky when one or both of the divorcing couple owns or manages a business. Research shows around 1.4 million UK companies are run by couples, and that number is rising.
Divorce can be bad for business
Alternatively, one of the divorcing couple may have to buy out the other if they have a share in the firm, or liquidate assets to achieve the same outcome. All of which can be messy and time-consuming, often negatively affecting company performance. It is not uncommon for newly divorced partners to have to work together until the business can be sold, which brings a whole new series of challenges. To achieve the maximum sale price, the pair will need to work successfully
Dealing with a family business during the divorce process often raises complex issues, starting with its valuation, inheritance wishes, financial contributions, dividend payments and the shares or interests of other relatives. The family court would hope to protect a family business from becoming too involved in a divorce, to avoid the business having to be broken up or sold off to realise enough to pay the court-determined settlement.
FA MI LY BUS I N E S S E S
DIVISION OF ASSETS Soaring divorce rates create uncertainty for family-run companies but there are ways to guarantee business as usual, says Mark Buttery
Two’s company Many business owners remain unaware that their partner may be entitled to some share in their company, even if the partner has never been involved in the day-to-day activities of the company. The likelihood of this situation grows with the length of marriage or inequality in financial resources. In the UK, for the court to consider a ‘fair’ division of all your assets, everything will be taken together in one lump, with little distinction made between assets, unless you have legal documentation that proves a different position.
together and make jointly beneficial decisions.
Protect your business The first step to protecting a business is not romantic and requires foresight at the outset to draft appropriate documentation. Pre-nuptial agreements are a tricky topic for many couples, although seen as overly pessimistic, they are essential for any business. The agreement is not just about the relationship between the owners, but the future of the business, its reputation, the lives of its employees, any investors, its clients and even its customers. A founder’s agreement is a good place to start. The agreement sets out formally how the founders of a business are going to operate it, to avoid any disputes or misunderstandings that could threaten the business in the future. In the UK, this document will typically be a shareholders’ agreement.
Leave emotion at the door Not having your business set up with the correct agreements can cause additional stress. If divorce lawyers are looking to get a business valued in preparation for a sale, having agreements in place will ensure a more amicable divorce. Whether your relationship is strong and long or it is becoming tense, now might be a good time to have a chat with a lawyer who can leave emotion aside and discuss your options. You might own all, part or none of a family business, but knowing which direction your next step should take you in the future requires first knowing where you are now.
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K N OW H OW EXPL AINER RICHARD RYAN is commercial director at gridIMP
SR, at its root, is not so complex. The grid pays energy users to reduce consumption during peak demand times, which enables the grid to manage low-carbon but more intermittent power sources such as wind and solar. For businesses, including those with mission-critical operations, DSR does not require participants to use less energy – just to shift a portion of their demand to another time during the same day. In the early days of DSR, businesses looking to monetise some of their capacity by load shifting found it required a trained individual in a bespoke control room responding to signals from the National Grid. Also, back then, only power responses in excess of 1MW could be considered under DSR rules.
information to shift energy consumption without having an impact on the functioning of the overall system – and then uses this energy for DSR income.
By taking account of existing behavioural data, the system can prevent impact on building users. And, rather than relying on unsupervised algorithms, AI management systems can ring-fence what is business-critical and never interfere with core infrastructure, such as servers, computers or cooling systems.
New opportunities Load that can be shifted is everywhere, but often hard to spot and use effectively. Heating, for example, may be turned down using digital feedback by monitoring controller settings, thermostat values and ascertaining the acceptable level at which users manually set wallmounted thermostats. Another method is to take advantage of existing buffering systems, such as heating and cooling tanks, which can store energy and be used to maintain temperatures while the iDSR system temporarily responds to grid demand.
Integrating with the BMS Integration with existing building management systems (BMS) can immediately identify areas for improvement. For example, upon installing our iDSR system at the Somerset Energy Innovation Centre (SEIC), we discovered the existing BMS was not fully connected to existing sub-metering. The SEIC is a modern
building with 20kW solar panels and a Trend BMS. However, the annual energy spend comes to £33,000 – roughly £10 per square metre of facility. By accessing more than 2,000 monitoring and control points, from lighting to heating, we estimate that autonomous controls will reduce this cost by over 5 per cent and introduce a new DSR income stream. Additionally, the more data an AI-based system gathers, the more effective the hub will become, moving from simpler targets, such as external lighting, to patterns of behaviour related to heating and appliance use. At the SEIC, initial market estimates suggest that 20-50 per cent of overall load could be made available to generate new revenue, without affecting critical assets and individual users.
DE MA N D S I DE R E S P ON S E
Technological developments However, with AI, digitisation and machine learning, autonomous systems monitoring and streamlining energy have delivered greater potential. Coupled with the advent of energy aggregation, where smaller DSR responses may be collated to provide 1MW in response, these two elements have provided new flexibility to the DSR market. For FMs, being able to implement an AI-driven ‘iDSR’ system, capturing and distributing smaller amounts of power, enables the generation of a new revenue stream without devoting extra time and personnel to it. In practice, this involves a system that gathers data about how and when devices are used then ‘learns’ from this
The market opportunity
ON THE GRID Demand-Side Response (DSR) may seem complicated but AI can make it simple for FMs, says Richard Ryan
In effect, AI has the potential to help FMs in the same way as manual intervention might be expected to, by performing energy management savings first, followed by load shifting to reduce cost and, finally, load shifting for DSR income. The crucial difference is AI can continually and affordably access small returns that add up to big gains for the consumer. While the SEIC project is still in the early phases, the immediate results we have seen point towards payback for such an installation in under six months and, with the way AI systems learn, this will only grow more effective as the system refines the power that it uses for DSR. Not only is it a green, efficient system, it is costeffective too.
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K N OW H OW EXPL AINER WILL RICHARDSON is founder of environmental management consultancy Green Element
back a renewable electricity contract. So having a 100 per cent REGO-backed electricity supply guarantees that your power is backed by renewable generation, and can be reported as zero carbon. Scope 2 reports metric tonnes of carbon dioxide equivalent emissions (CO2e). This is calculated as the megawatt hours of electricity that your business has consumed, multiplied by the reported carbon emissions of the electricity that it has received.
SUSTAIN A BILITY
ECO-FRIENDLY CONTRACTS REGO-backed 100 per cent renewable electricity contracts can save the planet and your costs, says Will Richardson
enewable Energy Guarantees of Origin (REGO) certificates guarantee that when a consumer buys a 100 per cent renewable electricity contract, there will be no double counting of the renewable energy. The REGO scheme provides transparency to consumers about the proportion of electricity that suppliers source from renewable generation. All EU member states are required to have such a scheme. Ofgem administers the scheme for generation in Great Britain on behalf of the Department for Business, Energy & Industrial Strategy, and in Northern Ireland on behalf of the Northern Ireland Authority for Utility Regulation. Ofgem issues one REGO certificate per megawatt hour (MWh) of eligible renewable output to generators of renewable electricity. As such, the primary use of REGOs is for fuel mix disclosure, which requires licensed electricity suppliers to disclose to customers the mix of fuels (coal, gas, nuclear, renewable and other) used to generate the electricity supplied. The REGO itself is a
unique code that details which renewable generator produced the power. By choosing a REGO-backed supply for your business, your electricity supplier must match your estimated usage with 100 per cent renewable electricity.
Securing a REGO-backed contract The ‘big six’ energy suppliers offer genuine REGO-backed contracts at little or no extra cost compared with the ‘brown’ or residual fuel mix contracts. There are also 100 per cent renewable energy companies such as Ecotricity and Good Energy that only produce renewable electricity and are also sourcing increasing proportions of gas from renewable sources.
Carbon reporting Emissions from electricity are reported under the GHG protocol’s Scope 2 category. Before 2014, Scope 2 emissions were reported using a ‘locationbased’ method that meant the average fuel mix of the consumer’s grid was used as the emissions factor. Now there is a recommendation from the WRI, which is responsible for the GHG Protocol, to report ‘market-based’ Scope 2 emissions – emissions are calculated using the fuel mix of the electricity provider. Your electricity supplier must provide you with the fuel mix you are using, which will dictate the carbon emissions you report. So if you have bought a 100 per cent renewable contract, under the market-based method of Scope 2 reporting, you can report zero greenhouse gas emissions. Scope 2 Guidance explains that ‘market instruments’ must
UK FUEL MIX PERCENTAGES Grid electricity is made from a range of fuels and methods. The UK fuel mix published by government comprises:
7.64 NATURAL GAS
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K N OW H OW SIX POINT PLAN NICK MELLOR is managing director of the Lift & Escalator Industry Association (LEIA) and LIFTEX 2019
come from legislation, such as: Providing safe access and documentation; and Restricting the use of lift landing door unlocking keys to trained and authorised people.
LIFT MA INTENANCE
A good agreement should reflect the needs of the FM, the building, and the type and use of the lifts. It should have flexibility in the type of maintenance required and the periodicity. A good maintenance programme will protect the value of the lift assets and maximise their lifespan. In the LEIA code of practice, we set out three generic types of maintenance. a) Basic b) Comprehensive c) Premium These work alongside other elements, which need to be included as part of the overall agreement, including the number of maintenance visits, the response of the maintenance provider to call-outs and breakdowns, alarm calls and undertaking the release of trapped passengers.
A good maintenance agreement is essential for the longevity of your building’s lifts and should be negotiated effectively at the outset, says Nick Mellor
Guidance on maintenance agreements
Building managers responsible for lifts face challenges when trying to understand their duties with various regulations and few impartial sources of guidance. Two useful sources are LEIA’s Lift Owner News items and LEIA’s code of practice for maintenance. We created the latter so it could be adopted by mutual
agreement between clients such as FMs and maintenance providers, with the aim of forming a valuable basis for the overall maintenance agreement. It sets out separate requirements for the maintenance contractor and the client. Requirements for the maintenance provider include: Making a first inspection; Carrying out the agreed maintenance visits; and Reporting to the client. Requirements for the client
What it should cover
A good agreement should align the interests of both the FM and the maintenance provider. A comprehensive maintenance agreement should be long enough to allow the contractor and FM to benefit from early work to improve the reliability of the lift. Typically this should be at least three to five years. Conversely, short agreement periods can result in reactive maintenance – not ideal for the lift’s longevity.
Planned maintenance visits; Attendance at call-outs and breakdowns; Parts included and any exclusions; and Handling of alarm calls. These should be agreed with the maintenance provider along with any other requirements.
Release of trapped passengers: who is responsible?
Remote monitoring, IoT and AI
This should only be undertaken by trained and competent people, and arrangements should be made in the contract for the provider to release trapped passengers. In some circumstances, such as in gearless lifts and machine room-less installations, for example, we strongly recommended that only a lift engineer should undertake this activity.
Remote monitoring has been used for many years – where there are benefits from monitoring lifts – to provide information to the client and maintenance provider such as monitoring availability and use, and making simple checks to highlight reliability issues. Looking to the future, AI, coupled with sensor technology on lifts, looks set to provide better self-monitoring of the condition of a lift, which will require maintenance contracts to evolve to accommodate these shifts. This might include moving from a fixed number of maintenance visits to conditionbased maintenance. 1 tinyurl.com/FacMag0319-leianews
The essential elements of a traditional maintenance agreement are:
2 tinyurl.com/FacMag0319-leiacode LIFTEX 2019 is on 15-16 May at London’s ExCeL tinyurl.com/FacMag0319-liftex
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K N OW H OW EXPL AINER BEN GILLAM is the founder of commercial property specialists The ThirdWay Group
ncertainty has brought a shift in the way companies approach their real estate, with a demand for greater flexibility and enhanced customer service. This has led to the rapid growth of the serviced office model as well as the evolution of the way traditional workspace is leased and managed. Landlords need new ways to market their properties and one method is Cat A+, a new idea that creates a middle ground between Cat A and Cat B.
What’s a Cat A fit-out? A Cat A fit-out is typically implemented for a landlord who wishes to market a blank canvas space to a broad range of prospective clients. Essentially, it is an empty space finished to an industrial standard, which is then usually transformed by an interior designer appointed by the tenant after the lease has been signed. A Cat B fit-out is a full refurbishment of an existing workplace, creating an environment that is ready for immediate occupation.
And Cat A+?
projects in London to appeal to tenants who want the flexibility of a co-working office, but within their own private space. Fund manager Columbia Threadneedle Investments, one of our clients, has applied the Cat A+ concept across its portfolio, following a successful leasing of its Copthall Avenue property. The main benefits they’ve seen from the fit-out have been attracting tenants that are: Seeking greater independence; Looking to develop their identity as their businesses mature; and Wanting to transition from co-working and traditional
possible for small businesses and start-ups that might have struggled to fund their own refurbishment and whose other option would have been to share space in a co-working environment to move into their own fully finished and functioning space without the cost of a Cat B fit-out. This is especially popular in London’s market, where rents continue to rise and the overheads of occupying premises are significant.
Flexible Cat A+ Since its conception, the Cat A+ model has been implemented on several
SERVICED OFF I CE S
TWO OFFICE ‘CATS’ TO CONSIDER
serviced offices into their own space. This is what a Cat A+ turnkey solution provides.
Investment up front Although Cat A+ requires more upfront investment from the investor, developer or landlord, this model eliminates the need for rent-free periods because the space is ready to go from day one. Another benefit of this approach for both parties is that, at the end of the tenancy, dilapidations becomes easier, cheaper and far less contentious. It is also less wasteful as there isn't a need to remove everything and return the space to a blank canvas. Following the speed of growth of co-working, traditional landlords are looking for new ways to market their properties, challenge the co-working phenomenon and meet tenants needs. Cat A + is a solution that meets these demands.
Cat A + is growing in popularity as the traditional office is evolving in response to occupier demand, says Ben Gillam
Cat A+, on the other hand, is the most comprehensive fit-out a landlord can provide. It creates a ‘plug-and-play’ space with full functionality, including data, fibre and cabling, and all that tenants need to do is add their brand stamp. These spaces can be designed to appeal to tenants large and small, corporate and creative. It is worth noting that most businesses in the UK are SMEs, and typically looking for around 10,000 square feet of space. This model makes it
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58 FacilitateMagazine.com / March 2019
INSIDE 60 61 62 63 63
AEG Facilities and SMG announce merger CMA orders Rentokil to sell contracts Caterer Compass enjoys taste of success in 2018 Comment: Interserve rescue pains investors Weeks to view: A month of fresh hopes
O UT SOURCING NEWS
O U TS O U RC E D S E RV I C E MA RK E T N E WS
INTERSERVE THRASHES OUT RESCUE DEAL
nterserve has reached a rescue deal with its creditors to prevent its collapse, according to a statement issued by the group. Following its 21 December 2018 announcement, the board has provided further details on its deleveraging plan. The key commercial terms of the deleveraging plan have been agreed in principle with all of Interserve’s
lenders, bonding providers and the Pension Trustee. The board believes the deleveraging plan will provide Interserve with “a strong balance sheet and the platform to deliver on its strategy”. Debbie White, CEO of Interserve, said: “Agreeing the key commercial terms of the deleveraging plan with our lenders, bonding providers and Pension Trustee is a significant step forward in our plans to strengthen the balance sheet. The board believes that this agreement will secure a strong future for Interserve. “This proposal has been achieved following a long period of intensive negotiation and has the support
of our financial stakeholders and the government. Its successful implementation is critical to the Interserve Group’s future and all of its stakeholders. The deleveraging plan will, alongside our ‘Fit for Growth’ transformation programme, place us in a strong position to deliver our strategy, be competitive in the marketplace and provide a secure future for the Interserve Group’s employees, customers and suppliers.” The deleveraging plan is expected to result in Interserve Group’s “pro forma net debt reducing to circa £275 million achieved through issuing about £480 million of new Interserve equity”.
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S U P P LY S I D E BUSINESS NEWS
Interserve expects to launch the finalised deleveraging plan in the next few weeks. The deleveraging plan will be “subject to approval by Interserve’s shareholders”. The company’s statement added: “Whilst Interserve’s objective remains to implement a fully consensual transaction, Interserve is also actively preparing alternative plans to ensure the proposed transaction can be implemented in the event that shareholder approval is not forthcoming.” Health and care property company Prime has completed a deal to purchase full shares in joint venture company Interserve Prime, according to a statement on its website. The company will be known as Prime Partnering Solutions Ltd as it “continues to fulfil its role in providing outstanding services to its existing strategic estates partners”. The acquisition will have “no impact on ongoing projects other than to offer increased efficiency and the convenience of a single point of contact to clients and suppliers”. Interserve remains, “a key supply chain partner to Prime and the two companies continue to enjoy a good working relationship”. Prime works across the health and care system and has recently become a leading partner for the acute sector, having delivered projects through Strategic Estates Partnerships (SEPs) for four years. SEPs are 50-50 joint venture companies operated between the public and private sector. They offer huge flexibility and reduced risk to both partners, enabling better outcomes in the delivery of services when the public sector partner needs them, without the obligation to use them. SEPs can
deliver a broad range of projects and services to public sector clients, from developing new clinical and commercial real estate through to FM and consultancy services. SEPs are quick and cost-effective to procure and allow for a range of commercial contract structures, either investing public or private capital solely, or blending both to create the best financial fit for the client. As Prime moves forward with its wholly owned strategic estates partner vehicle, CEO Leighton Chumbley said: “We believe there is further opportunity to enrich the health community and revolutionise how estates transformation is achieved at a local level. By using SEPs to support Sustainability and Transformation Plans (STP) trusts and their health partners could access capacity and capability to integrate health delivery and realise their clinical aspirations.”
ME RG E R
AEG FACILITIES AND SMG ANNOUNCE MERGER WO R D S : H ER P R EE T K AU R G R E WA L
“THE DELEVERAGING PLAN WILL… PLACE US IN A STRONG POSITION TO DELIVER OUR STRATEGY”
Interserve also announced that Dougie Sutherland left the group’s executive team last month. Sutherland joined the board of directors in January 2011 and worked for Interserve for 12 years. Debbie White highlighted “his support during the last 18 months, during which time he has led a range of initiatives and changes which will contribute to our future success”. Glyn Barker, chairman of Interserve plc, also praised Sutherland’s contribution to the company’s business transformation programme ‘Fit for Growth’, by integrating the developments business into support services, the integration of the UK and international construction businesses, and the sale of a number of investments and businesses.
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S U P P LY S I D E BUSINESS NEWS
EG Facilities, the venue management subsidiary of AEG, and SMG, a stadium and sports arena management company, have signed a definitive agreement to merge. This combination will create a new, standalone global facility management and venue services company that will operate as ASM Global (ASM). Private equity investor Onex and AEG’s subsidiary will each own 50 per cent of the company following the completion of the transaction. The terms of the transaction have not been disclosed. ASM will be headquartered in Los Angeles in the US, with key operations based in West Conshohocken, PA, a suburb of Philadelphia. The company will operate “a diversified portfolio of arenas, stadiums, convention centres and performing arts centres, with more than 310 venues across five continents”. Wes Westley, chief executive officer and president of SMG, said: “This merger is a major step for our industry… We plan to accelerate innovation by combining our expertise to deliver increased
value and offer enhanced capabilities to municipalities and venue owners worldwide. At the same time, we expect that this transaction will offer employees at both our corporate headquarters and field operations tremendous new opportunities.” Bob Newman, current president of AEG Facilities and formerly a regional vice-president at SMG, said: “This transaction draws upon the depth of our combined talent and resources to create an organisation that will deliver value and long-term success, as well as innovative services to our clients around the world.” Following the completion of the transaction, Newman was due to be named president and CEO of ASM. Westley joins ASM’s board of directors, where he will support the merger integration. AEG will retain ownership of its real estate holdings outside of this venture, including its entertainment districts and owned venues in Los Angeles, London, Hamburg and Berlin, as well as its extensive development, sports, music and sponsorship divisions. Onex is contributing its entire equity investment in SMG into the merger. The transaction is set to be completed later this year subject to customary closing conditions and regulatory approvals.
In brief CMA ORDERS RENTOKIL TO SELL CONTRACTS Rentokil Initial must sell several large supply contracts to satisfy Competition and Markets Authority’s (CMA) concerns about its merger with Cannon Hygiene. The decision by the CMA comes after an in-depth phase 2 investigation into the completed merger between two of the UK’s largest suppliers of washroom services. The firms supply commercial, industrial and public buildings with items and services such as soap dispensers, air sanitisers and sanitary waste disposal. The CMA’s group of independent panel members probing the merger published its final decision in February. It found that the deal is likely to result in higher prices or a worse service for customers seeking a single supplier of waste disposal services at multiple locations across the whole or a large part of the UK. The findings show that the merger of Rentokil and Cannon, two of the three major suppliers of washroom waste disposal, would reduce the choice of suppliers available to these customers.
GVA COMPLETES ACQUISITION OF AVISON YOUNG
Avison Young’s acquisition of UK-based real estate advisory business GVA – announced last November – has been completed. The process has resulted in the combined business expanding to comprise 5,000 professionals working in 120 offices across 20 countries. With immediate effect, the combined business is to be known solely as Avison Young. In a statement, the company contended that it is now “the only privately held, principal-led, global, full-service commercial real estate services firm”. It further claimed to now rank among the top five commercial real estate advisory businesses in the UK. At the same time as announcing the completion of the GVA acquisition process, the company made public a number of appointments.
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S U P P LY S I D E BUSINESS NEWS
In brief WESTGROVE LAUNCHES CLEANING DIVISION Warrington-based facilities management company The Westgrove Group has launched a new cleaning division following growth in its soft services. The firm reported that it has grown by 21 per cent over the past two years and has said that its sales target over the next five years is £40m. The firm will begin self-delivering cleaning services following the launch of its cleaning division. It will be headed by Daina Parker, who joins from High Access Maintenance Ltd. Claire McKinley Smith, managing director of The Westgrove Group, said: “The launch of this new division… demonstrates our continued growth and supports our plans for the future. “With years of experience and knowledge in the industry, we are delighted to be able to offer an even wider range of cleaning methods suited to our customers’ needs.”
NORSE RESULTS Norse Group saw more than £16m growth in new business for the nine months ending 31st December. Catering, cleaning and trade waste management services have all seen particularly strong new business wins – the company recently took a £3m cleaning contract with Barnet London Borough Council. Geoff Tucker, group sales director, said: “Norse has always been very conscious of the need to ensure any new business makes sound commercial sense... The importance of this approach has been particularly highlighted by the recent spate of problems amongst the major private sector outsourcing companies.” Tucker said Norse’s public sector ethos “also takes added social value, environmental considerations, and best practice into account alongside commercial sustainability”. The group’s forward order book is now over £2.5bn, he added.
F I N A N CI A L R E S ULTS
CATERER COMPASS ENJOYS TASTE OF SUCCESS IN 2018 WO R D S : H ER P R EE T K AU R G R E WA L
ompass Group has issued a trading update showing that its organic revenue for the three months to 31 December 2018 grew by 6.9 per cent. This growth was driven by “strong levels of new business wins, continued good retention rates and bolstered by the impact of the new UK defence contracts and a positive sporting events calendar”. Compass stated that it continues to “generate efficiencies through our management and performance (MAP) programme to offset inflationary headwinds”. Organic revenue in North America increased by 8 per cent. Growth was “very good across all sectors particularly in business and industry and sports and leisure, the latter of which benefited from the timing of certain events”. In Europe, organic revenue grew by 6.4 per cent, reflecting continued momentum from new business wins, notably the significant impact of defence contracts in the UK mobilised in the second half
of 2018, a beneficial sports and leisure calendar and continuing good growth in continental Europe. Its Rest of the World organic revenue increased by 2.8 per cent, with continuing good performance in developing markets partially offset by the run-off of the last offshore construction project in Australia. Currency movements, compared with the same quarter last year, had a positive translation impact on revenues and profit in the quarter of £107 million and £10 million respectively. If current spot rates were to continue for the remainder of the year, foreign exchange translation would positively impact 2018 revenue by £508 million and operating profit by £43 million. In the first quarter, the group spent £197 million on acquisitions in North America. Targeted and disciplined bolt-on acquisitions, focused on its core food offering, strengthen its capabilities and there is a good pipeline of opportunities across the group, the statement said. Compass is set to continue to make progress on its disposal programme.
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S U P P LY S I D E BUSINESS NEWS GRAEME DAVIES writes for Investors Chronicle
Weeks to view
CO M MENTARY
INTERSERVE RESCUE PAINS INVESTORS
t may have been seemingly inevitable for months, but when the news finally broke of Interserve’s debt-for-equity rescue plan it was still a pretty brutal denouement for shareholders who had held on during last year’s travails or bought into the company in the hope of a turnaround plan being put into play. Indeed, such was the severity of the solution to Interserve’s woes – an issuance to lenders worth £480 million to slash the debt pile the company was in danger of suffocating under – that existing shareholders will be diluted so heavily they will end up owning just 2.5 per cent of the company. Is this a price worth paying? One shareholder, US-based hedge fund Coltrane Asset Management, is clearly not willing to go down without a fight given that it has appealed for a shareholder vote to remove the entire board apart from CEO Debbie White. It argues that Interserve is not at threat of collapse so there is no need for such a punishing rescue deal. Presumably those at Coltrane have forgotten the fate of Carillion. As for private investors – and there are unlikely to be many who have held on during Interserve’s withering decline over the past year – they must absorb the blow and hope that the refinancing deal is enough to see Interserve live to fight another day. But what of the deal itself? The £480 million will go some way to easing the pressure of debts that had crept up to £600 million and were too big to service for a company that recorded operating profits of just £75 million in 2017 and a pre-tax loss of £6 million in the first half of 2018. There has been chatter that the government’s intervention helped to form the final shape of the refinancing. Some lenders wanted to carve out the most successful division, RMD Kwikform, a high-margin specialist construction business, but others, including government sources, evidently felt the rest of the business was so weak it would not be able to credibly bid for public sector contracts as a standalone business. Thus RMD Kwikform remains within the fold and will now carry £350 million of debt on its balance sheet while the rest of the business has a relatively clean cash position. So Interserve lives on, although it will be a long haul before it regains the confidence of the wider investment community. The government will be breathing a sigh of relief that another Carillion-style meltdown has been averted, but whether this rescue has left Interserve in the best shape possible for recovery or simply delayed problems, only time will tell.
“THE GOVERNMENT WILL BE BREATHING A SIGH OF RELIEF THAT ANOTHER CARILLIONSTYLE MELTDOWN HAS BEEN AVERTED”
GRAEME DAVIES firstname.lastname@example.org
A month of fresh hopes Week commencing 31 Dec A concentration on consistency of service appears to be paying off for textile and linen rental, cleaning and care specialist Johnson Service Group. Its trading update confirmed that figures for the year are expected to be in line with expectations. Meanwhile, investment in the business continues apace with a £3.3m investment in the Stalbridge Linen business now complete alongside the acquisition of Southwest Laundry in August, which has been integrated into Stalbridge. And management has signed on the dotted line for the building and lease of a laundry facility in the North to come on line in 2020.
Week commencing 7 Jan Serco announced that it had won a £1.9 bn, 10-year deal with the UK Home Office’s Visas and Immigration Department to provide services to asylum seekers in two regions, the North West and Midlands/East of England. The Asylum Accommodation and Support Contracts replace the existing arrangements under which Serco supplies similar services in the North West and Scotland and Northern Ireland. Serco will be responsible for accommodation, transport and other welfare services.
Week commencing 14 Jan Social housing, services and care specialist Mears said it is poised to report results in line with expectations despite the competitive environments in both its core markets. Two key recent events will influence fortunes in the coming year with Mears bolstering its offering through the acquisition of Mitie’s Property Services business in November and then, in January, winning a £1bn deal to provide housing, transport and welfare services to asylum seekers over 10 years. The order book at the year-end stood at £3.2bn with £1bn of this likely to flow through as revenues this year.
Week commencing 21 Jan G4S has settled in a class action lawsuit brought against the company in the US. The claim, the latest of a number of similar actions, was brought on behalf of 13,500 employees relating to meal and rest breaks under Californian law and covered the period from 2001 to 2010. The payment to settle the claim will be between $100m and $130m. G4S previously settled similar cases in California in 2015 and 2017, although for an aggregate $7.6m.
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S U P P LY S I D E BUSINESS NEWS
CONTRACTS DEALS G4S catches cricketing deal G4S Risk Consulting has secured a threeyear agreement with cricket’s global governing body, the International Cricket Council (ICC). G4S will offer security advice on matters of operational and strategic value to the ICC. G4S Risk Consulting’s Intelligence and Advisory Services (IAS) team will provide the ICC with bespoke security risk assessments and produce daily monitoring reports.
Stagecoach rehires Cordant Cordant Cleaning, part of Cordant Group, has secured a contract renewal with bus operator Stagecoach to provide cleaning, shunting and fuelling services at 10 London depots. The deal will also cover an 11th depot in Guildford, Surrey, which means that Cordant will branch out of London into a new regional operating firm called Stagecoach South.
Skanska expands its London FM portfolio Skanska’s FM team has won a three-year deal in London worth £1.7 million with the Financial Times. The team will deliver hard FM services at Bracken House at 10 Cannon Street in the City of London. This contract was secured following work carried out by the mechanical and electrical team, which included the replacement of interior services.
BNP Paribas engages Principle Principle Cleaning Services, the Londonbased cleaning specialist, has been awarded a three-year contract with BNP Paribas Real Estate. Principle will provide cleaning, window cleaning, pest control, waste management and washroom services to The Crown Estate St James’s Portfolio, which comprises 34 buildings of office, retail and restaurant space.
Nottingham Building Society banks on Incentive Nottingham Building Society (NBS) has renewed its contract with Incentive FM for another three years. The deal, worth over £4 million, builds on a 16-year partnership. Incentive will handle FM at all NBS locations, and support all health and safety, fire safety, and water safety requirements.
Imtech Inviron keeps parliamentary estate deal Imtech Inviron has retained and extended its technical facilities maintenance contract at the Houses of Parliament for eight more years. The firm will provide planned preventative maintenance and other projects across the parliamentary estate of 16 buildings including the House of Lords and House of Commons.
KeyPlus secures £1m deal with Lancashire Burnley-based KeyPlus has been awarded a contract to provide security services to Lancashire County Council. The four-year deal will see the company working at several hundred sites owned or managed by the council, including schools, academies and other council buildings.
Barnsley Norse takes social housing deal Barnsley Norse has been awarded the cleaning contract for eight of Wakefield and District Housing’s (WDH) corporate buildings. The three-year deal is worth at least £120,000 a year. The contract for all sites covers cleaning about 8,800 square metres of offices, reception areas and meeting rooms in publicfacing sites.
DE A L OF TH E MON TH
CBRE appointed by John Lewis CBRE Global Workplace Solutions has been appointed to a fiveyear TFM deal for the John Lewis Partnership, providing M&E support, cleaning, refrigeration and grounds services across John Lewis & Partners and Waitrose & Partners shops, depots and HQ.
MITIE LINKS WITH CONNECT GROUP TO WIN £7.5M DEAL Mitie has won a five-year integrated FM contract with specialist distribution and logistics company Connect Group. Mitie will manage services across 78 distribution centres and deploy new technology as part of the contract including its Direct Audits system that will aim to “enhance the delivery of engineering service”. The new relationship will bring all Connect Group’s FM services together.
GMS Security Services is ‘talent-spotted’ for CEMEX contracts • Jaguar in hard services deal with multi-use London
building • Incentive Lynx is awarded three-year deal at The Cube • StadiumFM on board with Merseyrail to support network upgrade • Wilson James mobilises on expanded INEOS deal in Scotland • Churchill Group extends contract with Caldicot School • Spectrum wins cleaning deal at Pyramids Business Park • Artic links with Komfort at Park Academy • Mitie wins 5-year deal with Yorkshire Building Society
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The facts, figures and projections worth being aware of
For more FM business news, analysis and contract wins, sign up for the FM World daily newsletter at www.facilitatemagazine.com/news/e-zine
A recent study by the University of Warwick’s Centre for Competitive Advantage found that happy staff increased their productivity by as much as 20 per cent. [Liberty Games]
A third of UK office workers say that the availability of healthy snacks and drinks would increase their happiness in the workplace – and would also boost productivity. [Liberty Games]
U S EF U L S TAT I S T I C S
Rates Economy VAT rates: Standard rate — 20 per cent Reduced rate — 5 per cent Source: GOV.UK
Bank of England base rate: 0.75 per cent as of 16 November 2018 Source: Bank of England (bankofengland.co.uk)
The average employee will spend over 92,000 hours at work during their lifetime, so having a great working environment is important. [Liberty Games]
TOP 3 A perfect climate (30 per cent) and cleanliness (26 per cent) were also in the top three most highly valued factors by UK office workers in increasing happiness at work [Liberty Games]
Prime rents increased in the City of London by £1.00 per square foot (psf) to £69.50 psf and in the Docklands by £0.50 psf to £48.50 psf. Prime rents remained unchanged in all other central London markets. [CBRE]
Last year ended with 3.3 million square feet of central London office space under offer, the highest year-end total in nearly two decades (since 1999), according to global real estate adviser CBRE. [CBRE]
26 DEALS A total of 26 deals to flexible office operators totalling 755,900 sq ft helped to boost business services take-up to 31 per cent of the central London total. The creative industries sector also represented a notable proportion of take-up at 15 per cent. [CBRE]
Consumer Price Index (CPI): This was 2.2 per cent in October 2018, down from 2.7 per cent in January. Contributions to the change in the 12-month rate came from food and nonalcoholic beverages, clothing and footwear. Some transport elements were offset by upward contributions from rising petrol, diesel and gas prices. Other upward contributions came from miscellaneous goods and services, recreation and culture, and communication. Source: www.ons.gov.uk
A recent survey by the Society for Human Resource Management, which represents 300,000 HR professionals in more than 165 countries, found that 57 per cent of its members offer flexible working hours. [Liberty Games]
68 per cent of respondents to a survey said they would stop using messaging apps and social media sites if their companies provided an internal communications platform. [See more in our Think Tank, pages 36-37] [Kronos]
Employment National Minimum Living Wage Category of Current Hourly worker hourly rate from rate April 2019 25 and over £7.83
(under 19 or aged 19 or over and in the first year of their apprenticeship
Real UK Living Wage Location of worker
Hourly rate from April 2016
UK Living Wage
London Living £10.55 Wage
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BAC K PAG E
Facilitate, incorporating FM World, is the publication of IWFM, the professional body for workplace and facilities management. For information on membership, qualifications and training contact us:
The stories that just don’t fit anywhere else (Email us: email@example.com)
Institute of Workplace and Facilities Management Charringtons House, 1st Floor South, The Causeway, Bishop’s Stortford, Hertfordshire CM23 2ER, UK Tel: +44 (0)1279 712 620 Email: firstname.lastname@example.org Web: www.iwfm.org.uk
L’environnement bâti nécessite un jeu sans frontières
Redactive Publishing Ltd 78 Chamber Street London E1 8BL www.facilitatemagazine.com EDITOR Martin Read 020 7880 7664 email@example.com
s professions battle it out to attract the next generation of workers, the way they portray themselves to students takes on ever greater importance. So we were intrigued to hear that Sue Hayhow, senior lecturer in property, construction & quantity surveying at Birmingham City University, has devised a board game to teach students the life cycle of property. ‘Construct-it’ brings together professional disciplines “to simulate a reallife, collaborative project and tackle some of the challenges which may be faced”. They’ve even conducted some research to prove that the game is “a fun, engaging and challenging way to educate students”. Aspiring professionals for whom the game has been designed include architectural technicians, building surveyors, construction managers, quantity surveyors and, well, guess the obvious omission. Surely we need a game for all aspects of the built environment, including those who operate the finished buildings? A built environment game without frontiers, please. So the mission to design a board game for workplace and facilities managers begins right here. We’ll take all reasonable suggestions. ‘Productopoly’? ‘Risk’? (Damn – that’s taken.) ‘The Polar Opposite of a Trivial Pursuit’? Perhaps ‘Facgammon’? You could use ‘Monopoly’ as the inspiration, with the twist that instead
DEPUTY EDITOR Bradford Keen 020 7880 7615 firstname.lastname@example.org NEWS EDITOR Herpreet Grewal 020 7880 8544 email@example.com SUB-EDITOR Deborah Shrewsbury 020 7880 6223 firstname.lastname@example.org SENIOR DESIGNER David Twardawa 020 7324 2704 email@example.com PICTURE EDITOR Claire Echavarry 020 7324 2701 firstname.lastname@example.org CONTENT ASSISTANT Prithvi Pandya 020 7880 6229 email@example.com SALES MANAGER Daniel Goodwin 020 7880 6206 firstname.lastname@example.org ADVERTISING ACCOUNT MANAGER Josh Hannagan 020 7880 6220 email@example.com SENIOR SALES EXECUTIVE (RECRUITMENT) Paul Wade 020 7880 6212 firstname.lastname@example.org PRODUCTION MANAGER Aysha Miah-Edwards 020 7880 6241 email@example.com PUBLISHING DIRECTOR Joanna Marsh 020 7880 8542 firstname.lastname@example.org Subscriptions IWFM members with Facilitate subscription or delivery queries should call the IWFM’s membership department on +44 (0)1279 712650. Facilitate is sent to all members of the Institute of Workplace and Facilities Management and is available on subscription to non-members. Annual subscription rates are UK £110, Europe £120 and rest of world £130.
of property acquisition it would focus on building up workplace performance credits. Players would land on squares such as ‘Retro-Fit CHP boiler’, ‘Boost nutrition through new catering offer’, ‘Create agile environment’, etc. The challenge would be in determining the value of each credit. And of course there’s no reason not to include an element of interaction across other disciplines. Well, it’s either this or yet more screens. Perhaps our appeal to those much-coveted under-18s lies in an asyet unwritten level of ‘Fortnite’?
To subscribe call 020 8950 9117 or email email@example.com – alternatively, you can subscribe online at www.facilitatemagazine.com/about-us/subscribe/ Editorial Advisory Board Simon Ball, market director, Engie UK & Ireland Peter Brogan, research & information manager, IWFM Rob Greenfield, director, Assured Safety & Risk Management Ian Jones, director of facilities, ITV Liz Kentish, managing director, Kentish and Co. Pleun van Deurssen, EMEA regional facilities manager, JLL Anne Lennox Martin, FM consultant Jeremy Waud, chairman, Incentive FM group Jane Wiggins, FM tutor and author Printed by Warners
Average net circulation 14,996 (July 2017 to June 2018)
Recycle your magazine’s plastic wrap – check your local LDPE facilities to find out how.
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