Jones Lang Lasalle Sept 2012 - BDC Magazine

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BUILDING DESIGN &

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PROPERTY MANAGEMENT: JONES LANG LASALLE

REAL VALUE IN A CHANGING WORLD Jones Lang LaSalle is a financial and professional services firm specialising in real estate services and investment management

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PROPERTY MANAGEMENT: JONES LANG LASALLE

he period after a merger can be difficult with the need to bring each company’s procedures into line. So when Jones Lang LaSalle merged with King Sturge in 2011 to create the biggest property agent in the UK, Ceri-ann Reading had her work cut out. She’s Safety Operations Manager for the Property and Assets division and so has to ensure the right level of safety across the properties. Jones Lang LaSalle is an industry specialist for property investors, adding value to clients’ assets, reducing operational risks, maximising value for money and making sure it delivers high quality landlord services. The merger doubled the number of sites it manages to around 1,700 and they’re all for investing owners, with owner-occupied properties handled by a different part of the business. And as Ceri-ann points out, the nature of the properties has altered: “We used to have four categories of properties and now we’re changing that to fifteen. We have a few flagship trophy buildings, large shopping centres, multi-occupied offices, retail parks and industrial parks.

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“In some cases, there’s very little internal common parts we have to do, it’s mainly external, which is quite a challenge when you consider how many people can be passing over your property and you’re expected to manage them. We’re also starting to get a more diverse range within that, such as a lot more research parks with technical laboratory facilities in there. More of a specialist facilities management service is needed and more of a diverse investment there with some of the clients, so that’s quite exciting.” Ceri-ann has a team of regional safety advisers to cover the sites. She says: “We advise on the facilities management operational side of the business so it’s the sites we fully manage where we deliver the tenant facing services and ensure the landlords’ assets are being protected. We have set procedures and we audit most of the sites once a year. We make sure the Jones Lang LaSalle procedures are being followed and check for any competency issues in regards to the contractors we use. Any risk that needs to be escalated back to the client is done through the directors.”

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PROPERTY MANAGEMENT: JONES LANG LASALLE

The audit covers health and safety matters and environmental issues, with training also provided to new starters and all facilities managers required to undergo an annual refresh to ensure they’re kept up-to-date. And training is mandatory for everyone, no matter what qualifications they have, because the aim is to keep well above the legal minimum, ensure specific issues are addressed and instil the Jones Lang LaSalle culture. CLOSE LIAISON Safety is integrated with everything so there’s close liaison between the team and property and asset management staff. “We report to directors and the surveyors exactly what risk they are holding,” recounts Ceri-ann. “We use various risk management platforms to track in real-time inspections and missed actions across all the portfolio and use that information to report high level details to the portfolio client directors. As we filter down, each regional safety advisor liaises with their regional facilities

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PROPERTY MANAGEMENT: JONES LANG LASALLE

managers on the trends and the operational problems they’re finding along with high level information on a particular client. “Once a month, we have a safety compliance group with a nominated executive director discussing significant events and KPIs. We also have a league table of the directors that are holding the most risk outstanding and they call to account the surveyors or the client directors to drive the risk element down. It’s a high level thing but it’s also right down to the detail of going out to site, talking to the facilities managers and liaising with the safety managers of contractors so we all work together.” Facilities managers are there to ensure tenants’ services are correct, with preferred contractors delivering the services. The management of those contractors, however, involved a different approach by Jones Lang LaSalle and King Sturge. Jones Lang LaSalle has always tended to appoint preferred contractors on a regional basis so that one contractor will provide the same service to every site within a region. King Sturge, however, has taken a site-bysite approach, so any qualified contractor within a CONTINUED ON PAGE 824

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PROPERTY MANAGEMENT: JONES LANG LASALLE

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PROPERTY MANAGEMENT: JONES LANG LASALLE

region can be appointed to any site, leading to many different contractors across a region. NATIONAL AND REGIONAL CONTROL Either way, contractors are controlled at different levels. Ceri-ann says: “There will be a national level agreement for the procurement managers and operations managers. Then there are regional meetings with the contractor. There will be input from my team on the trends we’re finding because the majority of what we’re auditing relates to the contractors. So we will feed back on a general level to them but also any specifics that we’ve found in regards to competencies of the operatives we’ve seen on site. “We often do turn up and see some practices we’re not happy with, in which case we’ll stop the

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work and may even say we don’t want them back on site. A good thing about having a regional agreement is the risk of them losing all the properties is great so they will work with us as partners to try and improve safety throughout. Each facilities manager also produces KPIs on specific buildings, which gets fed back.” The merger of the two companies has had to progress without any reduction in service to clients and tenants across the whole portfolio. It’s quite a challenge given its size and the millions of people who pass through the properties every year and have to be kept safe. Nevertheless, it is proceeding well although the integration process has revealed differences in the way the safety cultures worked. “King Sturge relied heavily on consultants in the past to provide them with their competency advice

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whereas, at Jones Lang LaSalle, my team provides that advice,” comments Ceri-ann. “The way they managed compliance is quite different so we’re working through the best and most efficient way to keep that level of excellence for health, safety and environment management. We also need to make sure people don’t feel they’ve been given extra work to do or are being sold short with the data platform that they’ll end up with, so it’s quite a fine balance really.” CLIENTS’ NEEDS It has meant developing an integration training programme and bringing into line established management systems while ensuring they still conform to ISO 14001 and 18001 accreditation. Any changes have also had to respect clients’ needs, which are

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altering anyway as increased transparency and realtime reporting are required. Clients now request information about risk and environment matters, both for individual properties and across their whole portfolio, so they can be sure their buildings are being managed effectively. Individual requirements vary, with some clients happy to have reports run on their behalf while others want direct access to the system. The overall aim is to keep everybody safe and consequently a good procedure introduced at one site may be applied to others if it can be. However, that’s not always possible due to the varying requirements of fire officers, environmental health officers and the clients themselves. As a result, accreditations and safety awards tend to be on a property basis rather than for a particular division or across the whole company. The Festival Place shopping centre

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PROPERTY MANAGEMENT: JONES LANG LASALLE in Basingstoke, for example, has just won its seventh consecutive RoSPA gold award and certain properties have ISO 14001 and 18001 accreditation. Ceri-ann says: “Our management systems are written for 14001 and 18001 but then clients may decide they want a particular site to go for accreditation or for an external award such as RoSPA. So we work with them to adapt as necessary and make the application. But when you think about the stakeholders getting involved, it’s not just the people that walk through the doors that are affected by any change in policy. We obviously have our clients’ needs, their insurers, environmental health officers and various external agencies. The accreditation bodies themselves have got their needs as well as the occupiers, so there’ll be different organisations pulling in different directions.” CONFLICTING INTERESTS The result of this is that any procedural changes can’t simply be rolled out across all the 1,700 properties because they might conflict with the requirements of numerous interested parties including the clients. That also potentially applies to environmental matters because Ceri-ann’s team audits the sustainability deliverables that are an integral part of good estate management practice. One outcome, as she points out, is to try to improve the environmental performance of a building: “If there’s a certain size or consumption level for the building, we will require an audit to be done of its efficiency. The recommendation from

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that can either be that low cost or no cost improvements can be made, which the site managers should just be able go ahead and do themselves. “Because we’ve been doing the environmental part for a good six-seven years now, most of the site managers just do everything they can with regards to low cost and no cost improvements. For anything above that, we have to start to look at planning

has advanced significantly towards the finishing line: “I think we are now classed as one company and the different businesses are starting not to be mentioned as much. I think there’ll be operational challenges still and there’s a restructuring going on but I think we’re definitely on the way. “It’s been exciting and challenging but the client will always just see Jones Lang LaSalle now and they

AS A TEAM, WE’RE EXTREMELY EXPERIENCED AND WE HAVE THE OPPORTUNITY TO MOULD FACILITIES MANAGERS INTO GROUP ESTATE MANAGEMENT AND SAFETY PRACTICES AND ENVIRONMENTAL SUSTAINABILITY. IT’S A HARD ROAD BUT WE’LL GET THERE.” CERI-ANN READING SAFETY OPERATIONS MANAGER

changes and the issue there is to engage with the client to make sure they are on board with the fact the initial outlay may be more substantial. However, the price of utilities is only going to go up and so it’s in their interest to reduce consumption and ensure their asset is as efficient as possible. Because of that, more tenants and clients have requested help and information on sustainability.” Although Ceri-ann admits the integration of the two businesses has been challenging, she believes it

don’t expect any differences in the services they’ve been provided with before. I’ve just got so much opportunity now. As a team, we’re extremely experienced and we have the opportunity to mould facilities managers into group estate management and safety practices and environmental sustainability. It’s a hard road but we’ll get there.” www.joneslanglasalle.co.uk Tel: 020 74936040

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