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THE MAGAZINE FOR THE BRITISH INSTITUTE OF FACILITIES MANAGEMENT | 5 APRIL 2012

FMW www.fm-world.co.uk

ON THE FLY Cleaners at Terminal 5 have to land on their feet

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Schueco TF+ delivers free electricity and an extra income even when it’s overcast

What’s the simplest way to take advantage of free solar energy and receive regular, index-linked payments from the Feed-in Tariff? Answer: install a Schueco TF+ thin-film PV array on any convenient flat roof using Schueco’s unique East/West mounting system. Because the micromorphous silicon cells in Schueco TF+ react to an unusually wide spectrum of light, the modules work even when it’s overcast and the east/west alignment allows them to generate power throughout the day. Importantly, the lightweight low-ballast East/West system does not puncture the roof covering and allows 90% of the available roof-space to be utilised. It’s another example of Schueco’s Energy 3 concept in action. www.schueco.co.uk

Green Technology for the Blue Planet Clean Energy from Solar and Windows

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VOL 9 ISSUE 7 5 APRIL 2012

CONTENTS

7 | Ethical eating

16 | Terminal 5

24 | Flexible working

NEWS

OPINION

FEATURES

6 Public sector contracts brought back in house due to lack of value 7 Osborne’s 2012 Budget is FM-friendly, more or less 8 Project of the Fortnight: LSE’s new campus is hot on interactive learning 9 Think Tank: does the public sector use too many frameworks? 10 Business news: Graeme Davies analyses the Budget and the implications the sector 11 G4S reports a profit dip despite an increase in revenue 12 Business In Focus: Gordon Brockington discusses frameworks

14 Perspective of a facilities manager: Lionel Prodgers sees facilities, literally, from a bird’s-eye view 15 Five minutes with Sahar Hashemi, co-founder of Coffee Republic 42 No Two Days

MONITOR

26 | Procurement roundtable

16

Heathrow Terminal 5: Dave Arminas checks in with Amey, whose team works round-the-clock to service the airport building’s 35,000 daily visitors

22

Flexible working: Are certain types of people better suited to working from home? Kevin Stanley asks what explains reluctance in some quarters

26

Procurement roundtable: The second part of the FM World and Supply Management-hosted forum, which involved FM and procurement professionals

32 Legal: Sue Sharp on Legionella’s rise – and the legal ramifications

REGULARS 34 BIFM news 37 Diary of events 38 People & Jobs 40 Appointments

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Redactive Publishing Ltd 17 Britton Street, London EC1M 5TP 020 7880 6200 www.fm-world.co.uk EDITORIAL Tel: 020 7880 6229 email: editorial@fm-world.co.uk editor: Martin Read ⁄ news editor: David Arminas ⁄ sub editor: James Richards assistant editor: Natalie Li ⁄ editorial support: Kamalpreet Badasha ⁄ art director: Mark Parry ⁄ art editor: Daniel Swainsbury picture editor: Sam Kesteven

MARTIN READ EDITORCOMMENT

LEADER

ADVERTISING AND MARKETING email: sales@fm-world.co.uk senior display sales executive: Adam Potter (020 7880 8543/6230) ⁄ recruitment sales executive: Carly Gregory PRODUCTION production manager: Jane Easterman production executive: Aysha Miah PUBLISHING publishing director: Steve Bagshaw Forward features lists and media pack available at www.fm-world.co.uk/about-us SUBSCRIPTIONS BIFM members with FM World subscription or delivery queries should call the BIFM’s membership department on 0845 0581358 FM World is sent to all members of the British Institute of Facilities Management and is available on subscription to nonmembers. Annual subscription rates are UK £110, rest of world £130. To subscribe call 020 8950 9117 or email fm@alliance-media. co.uk – alternatively, you can subscribe online at www.fm-world.co.uk/about-us/ subscribe/ To order the BIFM good practice guides or the FM World Buyers’ Guide to FM Services call Natalie Li on 020 7880 6229. EDITORIAL ADVISORY BOARD Simon Ball, business development manager, Interserve ⁄Jason Choy, director, Persus⁄ Nick Cook, managing director, Haywards ⁄ Robert Greenfield, group SHEQ director, GSH ⁄ Liz Kentish, managing director, Liz Kentish Coaching ⁄ Anne Lennox Martin, FM consultant ⁄ Peter McLennan, joint course director, MSc Facility Environment and Management, University College London ⁄ Lionel Prodgers, principal, Agents4RM ⁄ Chris Stoddart, general manager, Heron Tower ⁄ Jeremy Waud, managing director, Incentive FM ⁄ Jane Wiggins, FM Tutor and author ⁄ Chris Wood, senior associate at Advanced Workplace Associates

Average net circulation 11,357 (Jul 10 – Jun 11) FM World magazine is produced using paper derived from sustainable sources; the ink used is vegetable based; 85 per cent of other solvents used in the production process are recycled © FM World is published on behalf of the British Institute of Facilities Management (BIFM) by Redactive Publishing Ltd (RPL), 17 Britton St, London EC1M 5TP. This magazine aims to include a broad range of opinion about FM business and professional issues and articles do not necessarily reflect the views of the BIFM nor should such opinions be relied upon as statements of fact. All rights reserved. This publication may not be reproduced, transmitted or stored in any print or electronic format, including but not limited to any online service, any database or any part of the internet, or in any other format in whole or in part in any media whatsoever, without the prior written permission of the publisher. While all due care is taken in writing and producing this magazine, neither BIFM nor RPL accept any liability for the accuracy of the contents or any opinions expressed herein. Printed by Pensord ISSN 1743 8845

BIFM ENQUIRIES

British Institute of Facilities Management Number One Building, The Causeway, Bishop’s Stortford, Hertfordshire CM23 2ER Tel: 0845 0581356 email: admin@bifm.org.uk web: www.bifm.org.uk

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nowledge workers, answer me this: what is the point of the office? Is it to play host to teams of people all pulling together towards the same goal? I ask because plenty of technological trends are working against the priceless social cohesion that the office has traditionally provided. In a previous job I had the misfortune of using instant messaging on a PC network. The company had two offices in two different cities, so the messaging system made internal communication a cinch. A pop-up screen appeared on the bottom right of the screen showing all available users. You could strike up a one-to-one or one-to-many conversation with colleagues from both locations and even with home-based teleworkers. Sounds good, right? It most certainly wasn’t. If anything, it exacerbated an already acute problem – the propensity of people, when given a choice, to send messages rather than physically interact with the environment around them. In this company the problem was significant. The reliance on email and instant messaging was coupled with a central edict not to interrupt the work of others unless it was important to your own. The result? Total silence in the office and a veritable cacophony on screen. There were times when I worried that my footsteps from the front door to the kitchen would be misconstrued as an attempt to kick start a riot, as my screen popped repeatedly with message after message like a particularly insistent rave video. Then there were the siloed conversations between people in the same office. You’d hear muted giggling from people on one particular desk as they silently deconstructed last night’s telly; the rest of us had to guess what was so funny. Hardly a day went by without someone feeling out of the loop at least once. Was this any way to generate corporate cohesion and a sense of common purpose? I had my doubts. The oddness of the situation reached its zenith one particularly silent Friday afternoon. We were all beavering away, concerned not to tap the keyboards too forcefully for fear of causing someone a seizure, when someone remarked (by message, of course) that this was possibly the quietest the office had ever been. Wasn’t it extraordinary? Cue muffled giggles as everyone got in on the conversation, while I felt like standing up and shouting (insert expletive here) at the top of my voice… I’ve blogged about this before, but it bears repeating: the office can be literally inspirational to those who work in it. Office politics – a term too frequently used in a pejorative sense – are a necessary part of the ebb and flow of both people and power that ultimately fuels a company’s sense of, well, company. So yes, instant messaging can bring together displaced groups of colleagues. But if you have an office, surely it should be celebrated as the place where people talk, yes, TALK to each other about the issues they face. Organisations should think really hard before committing to a future based on flexible working and a reduced amount of office space. The whole character of a business can be defined as much by the interplay of its employees within the office environment as its presentation of products and services to market.

K

“IF YOU HAVE AN OFFICE, SURELY IT SHOULD BE CELEBRATED AS THE PLACE WHERE PEOPLE TALK, YES, TALK TO EACH OTHER ABOUT THE ISSUES THEY FACE”

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PUBLIC SECTOR

Public contracts shift back in-house

PA/ISTOCK

MARINO DONATI newsdesk@fm-world.co.uk

More than a third of public sector contracts were brought back in-house last year because they failed to provide the required value, according to research. The study, carried out by Step Ahead for Totaljobs.com, surveyed key decision-makers from central government departments, local authorities, NHS trusts and police services. It said 62 per cent of those surveyed saw outsourcing as a route to cost savings, while only 26 per cent thought it delivered better quality services. A lack of skills was a key reason for 38 per cent of public sector contracts being cancelled, according to the study. Poor project management was blamed by 23 per cent of survey respondents for bringing outsourced services back in-house. More than half the respondents suggested that there would need to be improvements in project management, negotiation and procurement skills in public sector organisations. Mark Froud, chief executive of StepAhead research said: “The debate over public sector outsourcing is far from over. However, it is clear that public service reform will mean a change in the skills that are needed among people involved in commissioning and delivering services. “Good public services have always relied on having people with the right experience and attributes, but this needs to extend to the skills to manage contractors if we are to achieve the essential

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savings to the public purse.” According to the survey, of the services that respondents felt were not appropriate to outsource, finance was the most mentioned, closely followed by Human Resources and Payroll. ICT services, communications and PR, and property management were also mentioned. Bruce Nairne, co-author of the report, said: “One of the issues there has been is that some people have outsourced and forgotten about the service, a kind of ‘hire and forget’ mentality. But also,

sometimes a service will be brought back in-house because that particular public sector body has learned lessons from outsourcing and now feels they can bring it back. Nairne suggests that it’s not necessarily right anymore to talk about a distinction between outsourcing and insourcing. “It’s about sourcing appropriately,” he says. When asked about alternatives to outsourcing, the most popular solution considered was sharing services with other public sector organisations, as well as greater use of digital and online technology. Investment in skills to improve staff productivity and changes to staff conditions of employment were also mentioned. The study makes several

Shake it all about: outsourcing, insourcing, or ‘appropriate’ sourcing?

Budget: mostly business friendly for FMs DAVID ARMINAS newsdesk@fm-world.co.uk

Chancellor George Osborne’s budget put a few extra pounds in the pockets of UK plc at a time of continuing austerity, where the shadow of the coalition government’s Comprehensive Spending Review still looms large. A feel-good factor was established with the announcement that corporation tax rate is going down from 26p in the pound to 24p from April, with a further fall to 22p projected in the near future. Businesses including FM providers get to keep more of their hard-earned cash for, it is assumed, more investment in the business – an economic stimulus.

Budget: Osborne pleases FMs

The independent Office for Budget Responsibility also revised upwards the UK’s economic growth forecast for this year, from 0.7 per cent to 0.8 per cent, with 2 per cent next year. Small- and medium-size businesses

should get a break through what the government hopes will be a greater supply of credit with a £20 billion government-backed loan scheme. From this month, firms with a maximum turnover of £50 million can apply for the first £5 billion of the £20 billion of loans from banks including Royal Bank of Scotland, Barclays, Santander and Lloyds. Banks will reduce the interest rate by 1 per cent. However, Jeremy Waud, managing director of Incentive FM, told FM World, the move “totally misses the point”. The problem is not – and has never been – an interest rate issue for SMEs, he said. The problem is that “banks are paranoid about bad debt”, said Waud, who has managed

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x NEWS

BRIEFS recommendations including establishing a Rightsourcing Advisory Group, that can oversee a programme of work to improve the skills for delivering the Open Public Services. It also suggests creating a Public Service Learning Academy overseen by the Rightsourcing Advisory Group, where bodies including public sector organisations, large contractors, trade unions, voluntary bodies and small businesses can exchange best practice and develop skills. It also recommends the development of a self-assessment diagnostic toolkit and learning development programme, to enable public sector workers to make a smooth and effective transition to the private, voluntary and community sectors.

two acquisitions in the past year. Time and again agreements with banks fail to materialise because the SMEs can’t meet the security requirements of a proposed loan, he said. SMEs need substantial assets already, or lots of cash in the bank to satisfy loan guarantees. The £20 billion would be better spent guaranteeing loans rather than cutting the loan interest rate. The forward order book of some FM suppliers may look rosier if the budget’s enhanced capital allowances translated into more contracts or extended and expanded deals. However, the enhanced capital allowances scheme, whereby firms write off more investment against tax, are for five of the UK’s 21 Enterprise Zones, including the London’s Royal Docks. This should create local jobs and boost growth, as Gareth Tancred, newly appointed chief executive of the BIFM, wrote

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Norfolk Council to Tweet tenders Norfolk County Council is to use Twitter to issue contract tenders. In an attempt to cut red tape and help local business, the council said that, with immediate effect, all contract tenders would be tweeted. It is believed to be one of the first councils to tweet tender opportunities in this way. The council added that it is to

is already with smaller businesses and

speed up its procurement process by abolishing the need for pre-qualifications questionnaires to be completed for tenders for contracts under £100,000. The council said that some suppliers are put off tendering by the two-stage process, which requires the pre-questionnaire being completed. Derrick Murphy, Leader of Norfolk County Council, said: “About 40 per cent of the County Council’s expenditure

many of our large suppliers also make extensive use of smaller companies in their supply chains. “Anything that we can do to help local companies to be aware of and apply for our contracts can only help them in the current economic climate.” The @NCCContracts address will be promoted to any businesses that are currently among the council’s 5,500+ corporate Twitter account followers.

“Businesses including FM providers get to keep more of their hard-earned cash for, it is assumed, more investment” in his budget comment on the BIFM website. Meanwhile, the announced review of the controversial and “cumbersome” Carbon Reduction Commitment (CRC), “is a step in the right direction”, he said. This year’s CRC payments will still go ahead, he wrote: “But hinting that he may scrap it and introduce an alternative environment tax in the autumn creates uncertainty for business, and many will have hoped that the complex CRC would have been completely scrapped.” Businesses in Belfast, Brighton, Bristol, Cardiff, Edinburgh, Leeds, Manchester, Newcastle and Birmingham will benefit from

£150 million to support the roll-out of super-fast broadband. This could well attract firms to move to those cities as part of efforts to improve their employees’ work-life balance. Similarly, Osborne announced £130 million for Network Rail’s Northern Hub scheme that could, through better transport networks, make areas – particularly between Manchester and Sheffield – more attractive to businesses considering a move away from larger cities. The railway line between Manchester and Sheffield will be extended and the Manchester to Preston and Blackpool, and Manchester to Bradford lines will be improved.

Lift-off for Apollo merger Keepmoat and Apollo Group’s merger is now legally complete. The integration of the community regeneration company and the property support service group will create a £1 billion-turnover business, employing around 3,500 people across the UK. The merger of the two operations, both owned by Cavendish Square Partners, was given the green light by the Office of Fair Trading in January.

Energy staff get better deal Energy professionals are paid better than workers in other industries, according to a salary and benefits survey. The average UK salary in the sector is more than £41,000. This figure is much higher than the national average of just over £26,000, according to the study by Hays Energy and the Energy Institute. More than two thirds of energy professionals received a pay rise, and half got a bonus, in the previous twelve months. The figures are based on over 900 responses from energy professionals working across a range of disciplines.

Shepherd appointment Shepherd FM has appointed Michael Webb as business director. He will report directly to chief executive Noel Clancy. Webb moves from OCS Group UK, where he was director of technical solutions and also the board member for OCS’s two divisions of specialist services and security. Shepherd also appointed Caroline Scott as head of HR. She has worked in senior HR roles within logistics, support services, FM and retail.

Compass has strong start Compass Group has seen a strong first half of the year, despite difficult UK and European markets, which have slowed the pace of revenue growth. Total revenue is expected to grow by 8.5 per cent for the six months to the end of March. Organic growth is expected to rise by almost 5 per cent, driven by strong performances in North America and fast-growing and emerging markets. However, challenging economic conditions impacted performance in the UK and parts of Europe, the company said. FM WORLD |5 APRIL 2012 |07

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PROJECT OF THE

FORTNIGHT NEWS BULLETIN

HSE delays cost recovery plan

An artist’s impression of the interior of the LSE building at 32 Lincoln’s Inn Fields

Willmott Dixon wins £10.6 million LSE refurb Willmott Dixon has won a £10.6 million contract to fit-out a new eight-storey building for the London School of Economics (LSE). The 11,650 square metre (125,400 square foot) project follows LSE’s acquisition last year of 32 Lincoln’s Inn Fields to enlarge its campus. Willmott Dixon will carry out a full internal modernisation of the Grade-II listed building to integrate it with LSE’s existing campus. The building will be converted into student facilities on the lower three floors, while the upper five floors will be for academic offices and support facilities. A new single-storey glazed entrance pavilion of around 110 square metres (1,200 square feet) will be created between the western façade and the party wall to the adjacent Royal College of Surgeons. Substantial roof plant will be required to handle a complete reworking of the mechanical and electrical installations, including three new lifts and a new substation. New plant rooms are being incorporated in the basement, which will be dug down. Two Harvard-style lecture theatres are to be created in the central wing, requiring column removal and structural alterations. The theatres will be smaller than many standard lecture theatres and can have the low-level seating surrounding the speaker on three sides, allowing for a more interactive experience. Listed heritage features such as doors, panelling and cornices are being retained and refurbished. Existing terrazzo flooring is to be refurbished and new break and social areas will be created. A complete revamp and reworking of the landscaped area is also planned. Willmott Dixon starts on site this month, working with LSE’s project manager Davis Langdon. Also on the team are Jestico and Whiles, architect, Ellis & Moore, structural engineers and Hoare Lea for the M&E. Work is expected to be complete by November this year. 08| 5 APRIL 2012| FM WORLD

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The Health and Safety Executive (HSE) has put back the start date for its controversial cost recovery scheme. The scheme, Fee for Intervention (FFI), is now likely to start in October, according to a new HSE statement. The Fee for Intervention scheme would allow the HSE to recover its investigation costs from people and organisations that break health and safety laws. HSE’s programme director Gordon MacDonald said that the government intended to proceed with the scheme in the form as recommended to ministers by HSE’s board in December of last year which came in response to the formal consultation that took place last summer. MacDonald said the final technical details of the scheme are being finalised now and it “will not be introduced in April, but at the next available opportunity, which is likely to be October 2012”. There has been plenty of negative reaction to the scheme as currently proposed. Detailed guidance for employers and organisations is to be made available on the HSE’s website ahead of implementation. The Department for Work and Pensions’ 13-page announcement last March of the cost recovery plan can be found online at www.dwp.gov.uk/docs/good-health-and-safety.pdf

Leeds Met sets up sustainability centre Leeds Metropolitan University has set up a sustainability research centre focusing on reducing the environmental impact of the built environment. The Leeds Sustainability Institute will tackle the challenges of creating more sustainable places, communities and economies to enable society and its infrastructure to become sustainable, according to a university statement. The core themes of the Leeds Sustainability Institute include policy research and the management of spaces and places. It will look at the development of analytical tools to better understand new, existing and retrofit buildings. It will also look at understanding the physics and operation of buildings and their designs, testing construction models and evaluating their performance in real-world situations. Academics at Leeds Metropolitan are well-established as sustainability specialists, and their consultancy and business services are already making a significant contribution in social policy, low-carbon building materials, green computing, renewable energy and sustainable infrastructure, according to the university’s own statement.

Medium-sized firms resist insolvency As the longest period of economic uncertainty continues for an uncertain amount of time, there is evidence that medium-sized business are proving to be more resilient than their larger competitors. According to data from research and business information company Experian, firms with 51 to 100 employees saw a significant fall in insolvency rates year-on-year from 0.2 per cent in February 2011 to 0.12 per cent in February this year. These firms also saw the biggest year-on-year improvement in their financial strength. Overall, the rate of insolvencies rose slightly, year on year, with medium to large-sized firms (between 100 and 500 employees) seeing the biggest increase, from 0.12 per cent to 0.17 per cent year on year.

RICS launches paper on embodied carbon The Royal Institution of Chartered Surveyors (RICS) has launched an information paper for the measurement of embodied carbon. It details an approach to early stage carbon accounting, in response to the government’s Low Carbon Construction action plan. The note stresses the importance of developing a methodological plan to the measurement of carbon, and gives comparisons between the levels of embodied carbon in new-build and refurbishment. RICS will be collecting feedback in the coming months prior to publishing the final version in July. www.fm-world.co.uk

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FM NEWS SIGN UP FOR FM WORD DAILY AT FM-WORLD.CO.UK YES (69%)

THINK TANK

WE ASKED 100 FMS… Does the UK public sector use too many framework agreements? The question may be contentious, but most respondents came down in the “yes” camp. While often seen as a convenience for public sector organisations, their proliferation comes despite the fact that a one-size-fits-all approach is not always appropriate. Disadvantages of frameworks cited by our respondents include a lack of flexibility and their often generic nature. One respondent said: “Rather than produce a contract clearly determining the rules for a specific FM agreement, framework agreement documentation once approved is not changed. Therefore,

services have to be delivered against specifications, copied word-for-word from a generic framework agreement not written for the circumstances.” Frameworks risked making us view facilities services as a commodity, with the price being the only determining factor, another claimed. He added: “If, as a client, you have tendered for one or more services and have carefully selected a partner you are happy to work with for a number of years, why involve others and split your service?” One respondent simply used the logic that “if they [frameworks]

NO (31%)

were that good, the private sector would be converted to them, and I don’t see any evidence of that.” Of those who believed there were not too many frameworks, some felt that they enabled quicker, more cost-effective procurement on both sides, citing the time-consuming and costly nature of constant tendering. However, most acknowledged that they were not always the best solution. One respondent said:

“Frameworks can save on tendering time, but in order to ensure value is achieved, they have to be assessed as suitable for the individual’s specific needs, not just used because they are there. Mini-tenders using framework members are one way of achieving this.” Want your voice heard? Email newsdesk@fm-world.co.uk or find us in the ‘FM World Think Tank’ group on LinkedIn.

CITY OF GLASGOW

Glasgow College shortlists consortia Nominate a City of Glasgow College has shortlisted three consortia for a £200 million city centre campus revamp that will involve running the estate for 25 years. Consortia headed by BAM, Laing O’Rourke and Sir Robert McAlpine are vying for the contract to be let under the Scottish government’s non-profit distributing procurement (NPD) model, which FM World reported on in the 9 February 2012 edition. The project includes new buildings on college land at Cathedral Street and at Thistle Street on the banks of the River Clyde. The new campus will provide a learning environment for around 40,000 students and 1,200 members of staff. Construction is set to begin in summer 2013, with the first stages of the new campus opening in 2015 and the final phases in 2016. But the college said it will be “business as usual and that any disruption will be kept to a minimum for www.fm-world.co.uk

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Rising Star of FM

An artist’s impression of the new Glasgow campus

both staff and students”. Dialogue with bidders will continue during 2012 and culminate in the selection of a preferred bidder early in 2013. Originally, nine consortia made formal applications to qualify to tender in November. The project is financially and strategically supported by the Scottish Funding Council and The College Project Team is working closely with the Scottish Futures Trust to deliver the project

using the Scottish Government’s NPD (Non-Profit Distributing) procurement model. The college was formed in September 2010 with the merger of Central College Glasgow, Glasgow Metropolitan College and Glasgow College of Nautical Studies. The merger made the City of Glasgow College, with around 32,000 students, the largest in Scotland. 40 per cent of students are from Scotland’s most deprived areas, according to the college.

FM World is looking for the most dynamic facilities managers from across the country. The search will culminate in a major feature in the magazine along with an event at the Heron Tower in London. Readers are invited to email editorial@fm-world.co.uk with the name and details of the person they wish to put forward. Nominations are being accepted until the end of April, and can be made by colleagues, consultants or other people at the organisations for whom the individual has worked.

RSTISRSINOFGFM ON WITH IN ASSOCIATI

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ANALYSIS

Budget hints at third-party investment GRAEME DAVIES newsdesk@fm-world.co.uk

George Osborne’s most recent budget was yet another tight affair, with little scope for giveaways to either the public or private sector. Little surprise when the nation’s finances remain in the vice-like grip of austerity. For businesses, however, there was the bonus of an acceleration in the reduction in corporation tax and the promised cutting of further red tape, particularly in planning. But the budget was, perhaps unsurprisingly, devoid of the big set piece announcement that most

budgets hold, unless you count the unexpected introduction of a so-called ‘granny tax’, which attracted the most negative headlines. Perhaps the prime minister stole much of the chancellor’s thunder with his set piece speech on infrastructure the day before the Budget, but it was still surprising to see so little talk of big capital projects from Osborne. But does this mean that the big ‘National Infrastructure Project’, announced amid much fanfare last November, is running into trouble? True, there was talk in the Budget of taking

consideration of private sector ownership of the roads to the next level and of upgrading some creaking rail infrastructure serving the cities of the North. There was also further talk about plans to develop co-ordinated investing by pension funds and infrastructure funds to plug a few perceived gaps in the government’s spending powers. Thus far, third-party interest in the UK’s infrastructure appears to be somewhat lukewarm. Despite excitable talk about unleashing a £200 billion infrastructure splurge upon the launch of the plan last year, progress has been glacial – and indeed many commentators warned it would be at the time. The Pension Infrastructure Platform (PIP), which is being set up by UK pension funds for this sort of investment, is believed to have raised just £2 billion so far, which can be leveraged up to £4 billion. Changing the rules of engagement in infrastructure

Contract wins

NEW BUSINESS Serco Group has signed a deal with the UK Border Agency worth £175 million to deliver accommodation, associated services and transport for asylum seekers in two UK regions. The contract, covering the North West and Scotland & Ireland regions, will be fully operational by the end of the year.

of office space that were previously government offices.

Derwent London has appointed BAM Construct UK to upgrade offices at 1 Page Street in Westminster, central London. The £24 million deal will see extensive works carried out on 11,000 square metres (118,500 square feet)

Carillion has won a £50 million contract to provide FM services for energy specialist Centrica. The fiveyear deal will see the support services company provide a wide range of FM and energy efficiency services for 92

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Reliance Facilities Management is to merge with the FM business of Norland Managed Services. The merger takes effect from 1 April, creating a business that will have an annual turnover of more than £100 million.

Centrica properties, which have a total area of 800,000 square metres (8.6 million square feet). Carillion has been providing Centrica with FM services since 2005. ISS Facility Services Landscaping has won a two-year extension for grounds maintenance at the Permanent Joint Headquarters in Northwood, Middlesex – the UK’s principal military site. The contract was awarded by Carillion Facilities Management. Mitie has won a five-year contract to provide front-of-house services for the Royal Bank of Scotland (RBS). The deal comes after RBS decided to split its contract for frontof-house services and food services from a single supplier model, and re-tender as part of plans to continue reducing the cost of delivery. The tender process included supplier site visits to over 30 RBS locations in a week.

investment was never going to be easy. The government is trying to transition away from the Private Finance Initiative route of funding. This push to encourage cash-rich, long-term investors, however, to stump up for infrastructure at the earliest stages, is effectively another way of keeping such costs off the government’s balance sheet. The biggest obstacle might end up being the traditional risk aversion of such investors, hence the slow take-off for the PIP. Pension funds and sovereign wealth funds do like long term and stable returns, which infrastructure can offer, but are typically more comfortable picking up exposure once the higher-risk construction phase is over and the asset has settled down to a prolonged period of predictable returns. Taking on the extra risk of construction may add a few percentage points to the return, but in many cases it is not enough to persuade risk-averse investors to commit their funds. Indeed, the recent surge reported in interest infrastructure assets on the secondary market, where £300 million worth of fund stakes have changed hands in the past couple of months, indicates appetite remains for UK infrastructure and funds are available to be deployed for the right projects at the right stage in their development. Changing the method of funding such a huge amount of infrastructure to bring in a substantial, cash rich, but riskaverse constituency was always going to take a considerable amount of time and effort. But infrastructure investment is a long-term game, it was never going to be an overnight magic bullet for the economy. Graeme Davies writes for Investors Chronicle

www.fm-world.co.uk

29/3/12 13:13:22


G4S: Answering Olympic demand

G4S

G4S reports revenue up despite profit dip

BUSINESS BRIEFS

G4S has reported revenue up nearly 5 per cent to £7.52 billion for the year ended 31 December 2011. At the same time, pre-tax profits have slipped back 17 per cent to £279 million, partly because of the aborted bid to buy Danish facilities provider ISS late last year. The group’s operating margin remained stable, at 7.1 per cent, down slightly from 7.2 per cent in 2010. Group organic turnover growth – the figure which excludes mergers and acquisitions – was 5 per cent. However, growth was 9 per cent in developing markets against 3 per cent for Europe and 2 per cent for

North America. Developing markets revenue of £2.2 billion comprised 30 per cent of the group total, while G4S is working to a target of 50 per cent of revenue coming from developing markets by 2019. The company said that it expects to spend around £200 million on acquisitions in 2012 ,with a focus on the acquisition of businesses operating in developing markets. G4S also claims to be looking forward to mobilisation across a broad range of complex contracts, not least the security requirements of the London 2012 Olympic and Paralympic Games.

However, the mobilisation period may impact margins in the short term, although “we expect margins to recover for the full year,” the statement claimed. Earlier this month, G4S criticised the Public Accounts Committee (PAC) for misrepresenting the security group’s relationship with the London Organising Committee of the Olympic Games (LOCOG). The PAC questioned whether the security contract with G4S was value for money for the taxpayer; a G4S spokesperson claimed that the report was inaccurate. The £100 million deal with LOCOG was announced last March.

Revenues for Balfour Beatty rose 5 per cent for the year ending 31 December 2011, a figure the company claims signals a strong year for the global-construction-to-supportservices business. Group turnover reached £11 billion, up from nearly £10.5 billion for year-end 2010. Group operations in the UK brought in revenue of £5.7 billion, ahead of the US at £3.4 billion and £1.9 billion for the rest of Balfour’s global business. Global support services – although, in practice, mainly a UK-based operation – brought in £1.58 billion, a 10 per cent boost on £1.44 billion in 2010. Support services profit rose 8 per cent to £67 million, while www.fm-world.co.uk

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BALFOUR BEATTY

Balfour buoyed by support services

Balfour Beatty: rising profits

the order book rose 13 per cent to £5.1 billion This increase is partly due to the UK government’s Comprehensive Spending Review aimed at reducing public sector spending overall. Local

authorities are bringing more services into the marketplace, integrating contracts and lengthening contract terms. Balfour Beatty claims that the reduction in discretionary spending since the financial crisis of 2008 has made the outsourced FM market extremely competitive, particularly at the single service end. An ongoing group costefficiency programme saved £15 million in 2011 and Balfour believes another £50 million a year is possible over the next three years. The company is also looking to dispose of up to £40 million of public-private partnership equity this year, which it believes will help underpin 2012 performance.

Mears profts increase Mears group saw revenue rise last year to a record £589 million, up 12 per cent on 2010. The social housing and property maintenance group posted pre-tax profits up 9 per cent to £31.5 million, according to results for the year ended 31 December 2011. Social housing revenue rose by 9 per cent to £415 million (2010: £379.4m). Growth in core maintenance revenue within the division was up 21 per cent, including organic growth of 14 per cent.

United’s triple win Housing developer United House has secured six refurbishment contracts worth £11 million since January. The deals, with local authorities and housing providers, include three in the London Borough of Barking and Dagenham. The contracts are a £2 million kitchen and bathroom replacement scheme; a boroughwide external enveloping scheme; and the rewiring and central heating replacement of 250 homes.

Kier Harlow grows deal Construction group Kier and Harlow Council have extended their partnership with a revised contract worth £82.6 million. Under the deal, joint venture Kier Harlow will carry out repairs and maintenance for the Essex council’s 12,000 tenants and leaseholders until January 31 2017. Kier said the revised contract will save Harlow Council £4.41 million over the next five years – a 5.1% cut in the cost of the previous contract – via back office savings and restructuring. The Kier Harlow joint venture was set up in 2007 to carry out building repairs to social housing stock and open space maintenance. FM WORLD |5 APRIL 2012 |11

29/3/12 13:13:34


FM BUSINESS IN FOCUS

THE ISSUE The number of frameworks in the public sector

THE INTERVIEWEE Gordon Brockington, executive director, Morrison Facilities Services

Fitting the right framework Framework agreements in the public sector recently came in for some heavy criticism for being used too often and for inappropriate purchases. Has the British public sector gone ‘framework crazy’? Indeed, this was suggested by one professional procurement consultant during a debate at the recent Procurex National conference in Birmingham. He claimed that framework agreements are being used for almost everything, to the detriment of good old-fashioned procurement, which involves one supplier delivering the service to attain best value. A supplier in the audience said that her company had put a lot of time and resources into joining frameworks only to have the public sector client use them infrequently. But actually, frameworks aren’t that bad a way of procuring services, Gordon Brockington, executive director of Morrison Facilities Services, told FM World. The devil, however, is in the detail, said Brockington, who has 10 years’ experience in service provision as client and supplier, and has been with social housing services provider Morrison for two years. A framework is an umbrella contract under which several suppliers offer their services. The deal allows a drawdown – a client chooses a supplier for specified 12| 5 APRIL 2012| FM WORLD

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work of a specified value and time, where conditions and prices can be adjusted according to the volume of work. The main thrust of a framework is to reduce the time and cost of procuring services each time they are needed. Clients and suppliers go through the usual OJEU notification and process of choosing suppliers for a framework that has a designated value over several years. The client, if they have worked with several of the suppliers, has the luxury of choosing one with whom they work best – a very important point for good client-supplier relationships. This keeps everyone on their toes, said Brockington. It also means several suppliers will get a slice of the total work from which they might otherwise have been excluded. So far, so good, said Brockington. But what happens too often, in his view, is a ‘mini-competition’ where the client holds another bidding process for the work. This negates previous savings in bidding time and legal costs for both the client and suppliers. Brockington acknowledges the risk that a supplier might not get any of the work, even though they make it on to a framework. Also, the more suppliers on a framework, the more likely contracts will be smaller because the total work is spread around. Brockington has seen as few as

three suppliers and as many as 15 on a framework. For that reason, he said, a supplier should be careful when choosing to bid for a place on a framework. Brockington’s advice to suppliers considering frameworks is to seek some assurance from the client of a minimum amount of work. It’s good risk management for senior managers, who must justify their organisation’s time and expense on the bidding process. The core work for Morrison, which takes care of around 500,000 homes, is responsive repairs and maintenance – not an area where he has seen many frameworks. Clients tend to use frameworks for capital works projects such as upgrading housing stock to the government’s Decent Homes standard, or more specialist M&E requirements. But the Decent Homes programme is winding down as more homes are upgraded. There could still be a future for more frameworks if local authorities, housing associations and their arms-length organisations use them for responsive repairs and maintenance and void work. It’s been an area of more traditional procurement, Brockington said. There is nothing stopping several clients setting up joint frameworks. This could be extended to a regional framework or national deal. David Arminas is FM World’s news editor

CV Business development director MORRISON FACILITY SERVICES March 2010 – present Commercial director IRON MOUNTAIN August 2009 – February 2010

“THE CLIENT, IF THEY HAVE WORKED WITH SEVERAL OF THE SUPPLIERS, HAS THE LUXURY OF CHOOSING ONE WITH WHOM THEY WORK BEST” www.fm-world.co.uk

29/3/12 17:28:29


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FM OPINION THE DIARY COLUMNLIONEL PRODGERS

“HE CLIMBS WITH HIS BARE HANDS AND NO PROTECTION, KNOWING THAT IF HE SLIPS, THE FACILITIES MANAGER HAS TO CLEAR UP THE MESS”

Lionel Prodgers is director and senior consultant Agents4RM International

WHEN WAS THE L A ST T I M E YO U H UGGED YOU R FACI LI TY ?

o facilities managers know their buildings with the same intimate knowledge that ‘Urban Climber’ Alain Robert has of the skyscrapers he scales, wonders Lionel Prodgers

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I was privileged to sit next to Alain Robert, alias ‘spider-man’, at a dinner hosted by the directors of the Middle East Facility Management Association (MEFMA) in Dubai last month. Alain is a slight, unassuming Frenchman known all over the world as the Urban Climber having ascended over 70 skyscrapers without ropes – all over the world. In other words, he climbs with his bare hands and no protection, knowing that if he slips then the facilities manager has to clear up the mess – with up

to 100,000 spectators watching. Alain was a keynote speaker at the MEFMA annual conference and had the audience enraptured with his stories of incredible daring, supported by video footage of his more spectacular feats – and arrests. Over dinner we got talking about his preparation, which belies the sensational newsreel coverage of this small lonely figure scaling the Petronas Towers, Sears Tower, the Burj Khalifa and the like. It was quite clear that although

the arrests for trespass were spontaneous (where he has climbed without authorisation), his meticulous planning studying the construction details, stages, facia details and weather, is far from spur-of-the-moment. He was telling me that from the two attempts he made on the Petronas Towers – the first was the West Tower, built by a Japanese Consortium, and the second, the East Tower built by South Korean contractors – he could tell the difference in the quality of workmanship and slight differences in finishes to the cladding. It raised the question in my mind: how intimately do we know the facilities we manage? Stonemasons knowing the characteristic of the marble, carpenters the grain of the wood or musicians being completely at one with their instruments are

all examples of experts having a real sense of their craft, knowing every nuance and touch. How many of us, I wonder, can say the same for our specific role in managing facilities. To my mind, it is meticulous attention to detail that separates outstanding performance from mediocrity. Very few of us (apart from the Monsieur Roberts of this world) would put our lives on the line to prove our ability, but we could all do with taking time out to really understand the characteristics and behaviour of the physical as well as the human aspects of what makes up our complex task of managing facilities. When someone from the audience asked Alain what he feared most, he said “Speaking at conferences!” You can check out his website at: www.alainrobert.com. FM

BEST OF THE WEB Views and comments from across the web FM is evolving. In fact, FM is always evolving. It was certainly evolving back in the 1990s, as these Steelcase videos demonstrate: tinyurl.com/ steelcasejugglers LinkedIn group HP Business Answers Sam Wilson: Psychologists agree that working in a colourful office can enhance your 14| 5 APRIL 2012| FM WORLD

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mood. Some pick you up more than others. Others calm you. What are your tips for using colour effectively in the business environment? George Leney: A colourful office shows me that the business doesn’t take itself too seriously. If the company is in the creative industry, I’d expect it to have a colourful office. But if, say, a solicitors office broke with the

norm and had a bright business look it might make me intrigued by their outlook a lot more than normal. I read this on the HP blog (tinyurl.com/ HPcolour), which made me think about it too. Branding and colour is pretty fascinating. Always found it amazing that the colour of the logo makes such an impact. (Full thread: tinyurl.com/ officecolour)

FMA LinkedIn group: Which specialist service companies do you prefer to deal with, large or small? George Parker: As a generalisation, larger companies are primarily interested in their bottom line. Smaller firms depend on all their contracts to keep them going, so their customer service is, more often than not, better. Nick Parker: The trick is

to find companies that want to work with you, irrespective of size. I can think of many reasons why I’d want to buy from a large company as much as a small company. Melvin Matthew: bigger companies might not want to provide personalised, customised service, but they would try to improve efficiency to achieve internal cost savings. www.fm-world.co.uk

29/3/12 17:28:55


You can follow us at twitter.com/FM_World facebook.com/FMWorldMagazine

BEST OF THE

FMWORLD BLOGS Looking for the unexpected: Spotting the gorillas in your workplace Chris Payne is a business services professional “If you stay in this world, you will never learn another one” - W. Edwards Deming. There is a well-published psychology experiment by Simons & Chabris (1999) that shows a video clip of two teams playing basketball. The viewer of the video is asked to count the number of times the players in white pass the basketball to each other. All goes well and at the end, the viewer is asked if they noticed anything unusual about the clip. [You can view a copy of the experiment at tinyurl.com/beckman1 .] Most participants in the experiment don’t see the large black gorilla that strolls across the screen, waves to the camera and then strolls off again. In many cases, when the viewer watches the video again and they see the gorilla, they insist it is a different clip. This phenomenon is known as inattentional blindness and occurs when the mind is so pre-occupied by an activity or series of activities that it blanks out everything else it doesn’t recognise as relevant. Far from being a disadvantage though, inattentional blindness is a good mechanism for filtering out lots of noise and sensory material that can overwhelm and confuse our humble brains. The downside, of course, is that from time to time, we can be so focused on everyday activities, we ignore some important symptoms of things going wrong around us. Griffiths and Moore (2004) relate the concept of inattentional blindness to lifeguards failing to spot stationary bodies at the bottom of swimming pools. With so much of their attention focused on the subtle signs of swimmers on the surface getting into distress, many lifeguards fail to spot more serious situations of unconscious swimmers who have fallen below the surface. Other instances of this phenomenon include pilots landing their planes on top of other planes or drivers colliding with cyclists and motor cyclists. There are also accounts of Captain Cook’s landing in Australia in 1770, where it is recorded that native aborigines failed to comprehend the alien nature of such a large vessel as the sailing ship that Cook and his crew travelled in. It was only when the crew took to smaller boats to row ashore that they were acknowledged by the natives. In our everyday environments, we must be mindful of the concept of inattentional blindness. We can all be distracted by the everyday activities, measures and routines that occupy our attention that we don’t notice issues so alien to our comprehension occurring. From significant failures within critical environments to a mass staff exodus, to a considerable loss of business, we can be oblivious to many events until they are thrust into the centre of our attention. By then, it is usually too late. While there isn’t a magic cure for inattentional blindness, often being aware that it exists is enough to spot some early symptoms. Moving away from permanent entrenchment in policy, procedures, processes and routine can help make individuals more aware of the bigger picture as can workplace rotation. Also, by bringing in people from outside of your organisations and everyday routines, they are more likely to spot the gorillas in your own workplace.

More interesting blogs: Cathy Hayward on why those who rush to complain should also rush to praise: magentaassociates.co.uk/2012/02/we-apologise-for-this-delay/

www.fm-world.co.uk

14_15_Opinion.sr.indd 13

FIVE MINUTES WITH NAME: Sahar Hashemi JOB TITLE: Entrepreneur COMPANY: Various (co-founder, Coffee Republic)

Setting up Coffee Republic was great, but as we grew the business our increase in scale brought with it a certain slowness – a slowness that’s often the default speed for innovation at large companies. The bigger your business gets, the easier it is to lose the wonderful intuition that people naturally have. It’s such a pity to lose that as your business gets bigger – and in fact, in today’s business world, businesses can’t afford to lose that natural intuition any more. It’s all about individual behaviour. You’ve got to have leaders of business that allow this freedom. And that’s not easy. It’s a gargantuan task to change how large businesses operate. People at the top of the businesses need to accept that they can’t cling to their old ways of thinking. Change is happening too fast for that. I feel sorry for those business leaders who don’t understand this because you can be sure that the younger generation does. Technology has allowed work to seep into our lives outside of hours. There’s no getting away from that. But because work has now encroached so far into our lives, there has to be a quid pro quo – you have to be allowed much more freedom in the way that you want to work. Yet still I see companies whose employees continue to be expected to work in the same old ways. As your business gets bigger you tend to put in controls that stifle creativity. You end up creating silos because your growth has led to the need for a certain discipline in different departments. The trick is to establish a balance. Sahar Hashemi is the keynote speaker at this year’s ThinkFM, held in London on Monday June 18. To book, visit www.thinkfm.com FM WORLD |5 APRIL 2012 |15

29/3/12 17:29:08


FM CASE STUDY HEATHROW TERMINAL 5 DAVID ARMINAS

ALL IMAGES: BAA/T5

COST: £4.3 BILLION MAIN TERMINAL FOOTPRINT: SIZE OF 60 FOOTBALL PITCHES; 396 METRES (1,300 FEET) BY 176 METRES (578 FEET); SEVEN FLOORS – FOUR ABOVE GROUND, THREE BELOW TERMINAL 5 AND SATELLITE TERMINALS 5B AND 5C ARE LINKED BY AN AUTOMATED TRACK TRANSIT SYSTEM THAT GOES EVERY 1.5 MINUTES AND TAKES 45 SECONDS THE AREA OF T5’S THREE BUILDINGS IS MORE THAN THE TOTAL OF HEATHROW’S OTHER FOUR TERMINAL BUILDINGS SOURCE: MOTT MACDONALD, LEAD DESIGNER FOR T5

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29/3/12 12:20:07


HEATHROW TERMINAL 5

ON THE FLY

David Arminas checks in with cleaning contractor Amey, whose staff service Heathrow’s Terminal 5 building – host to 35,000 passengers every day

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FM CASE STUDY HEATHROW TERMINAL 5 DAVID ARMINAS

Specialist cleaners swarm over the terminal structure during the hours of darkness

lthough no flights arrive or depart from Heathrow airport from midnight to 5:30 am, Terminal 5 never sleeps. In fact, the doors to T5 are never locked and for Amey, the cleaning never stops. The 10-year contract at Europe’s largest free-standing structure is worth £10 million a year to Amey, which took on the contract in January 2010. Between 80 and 105 operatives work on a daytime cleaning shift at the flagship terminal, as well as its smaller satellite terminals 5b and 5c. The ceiling soars overhead and expansive concourses stretch into the distance. The feeling is one of brightness, thanks to the glass ‘walls’, which are part of the roof structure. In simpler terms, the floors of T5 sit underneath a huge canopy whose walls have no contact with the interior. Passengers have impressive views out to docked aircraft and

A

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taxiways. Natural light floods the interior and passengers are treated to vistas down the length of the interior. When the building is closed to passengers in the wee hours of the morning, Amey’s cleaning staff shift into top gear, literally. Specialist cleaners abseil from pillar to pillar, or hang suspended along long glass windows. That closed period is essential for bringing in the special teams, says Tristam Slater, Amey’s account manager for the T5 contract. If the doors were locked, he says, it would be a “logistical nightmare” to bring in cleaning vehicles and other equipment because security would have to be constantly alerted and documents checked. Amey brings in scissor and platform lifts for operatives to clean places that most people never see. The huge whitepainted steel structural girders that rise from the floor-plate www.fm-world.co.uk

29/3/12 12:20:38


HEATHROW TERMINAL 5

CONTRACT BREAKDOWN

FLIGHT DETAILS erminal 5 was completed in 2008, after which satellite terminals 5b and 5c were constructed to serve steadily increasing passenger numbers. Amey is delivering a 10-year total FM contract for airport operator BAA, valued at around £115 million. Amey has 439 staff – the majority being cleaners. In January 2010, Amey started delivery of hard and soft services, which includes: ● Cleaning for the terminal’s common areas ● Handling internal waste and recycling

must be dusted and washed, as must the acres of windows and internal glass encasing lifts, stairs and escalators. In the open-plan back-office, Amey staff sit alongside that of its main business partners – airports operator BAA, airline BA (sole airline at T5) fire and safety systems provider Honeywell and Kone, which maintains all lifts and escalators. To ensure the left hand knows what the right is doing, at 8:30am every morning there is a 15-minute stand-up meeting of people from all partners, explains Slater. Attendance ranges from 10 to 25 people and includes relevant duty managers, supervisors, operatives and senior managers. Topics discussed range from health and safety issues, performance targets, flight changes and passenger flows. Slater, a mechanical engineer by education, is passionate about lean manufacturing, a system

that Amey has adopted. The idea is to remove waste from the process of ‘making the product’. At T5, the product is “a great passenger experience”, says Slater. “You don’t add on features – waste – that don’t directly produce the product, in this case the great experience.” Slater, because of his engineering background, is eager to talk numbers. The key to lean manufacturing is data collection and its analysis. “Data is so very important. For example, when there are more passengers using the airport and when flights are cancelled, added or delayed,” he says. “There is an effect on passenger flow to lounge areas and retail spaces, as well as toilet usage and restaurant visits.” The issue for Amey is where and when does it focus its cleaning efforts to produce that great experience for passengers, which currently number around 26 million a year.

T

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Reactive and preventative maintenance ● Project management ● Mechanical and electrical services ● Minor project works ● Management of a number of specialist supplier partners ● Fabric maintenance. Amey manages the relationship between itself as the main FM supplier, BAA, and the other specialist subcontractors. The firm also has a separate contract for Terminal 4. The Civil Aviation Authority (CAA) monitors and regulates FM at airports.

Groups of assessors – similar to ‘mystery shoppers’ – visit the airport and speak to passengers to gauge their perceptions of cleanliness. FM providers are assessed in terms of the cleanliness of five core areas: ● Check-in areas ● Arrivals concourse ● Departure concourse ● Departure toilets ● Arrivals toilets Results are marked out of a maximum of five points and providers must achieve over 3.9 or face fines by the CAA. Amey achieved “a record 4.29” at the end of last year.

“Specialist cleaners abseil from pillar to pillar, or hang suspended along long glass windows”

FM WORLD |5 APRIL 2012 |19

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FM CASE STUDY HEATHROW TERMINAL 5 DAVID ARMINAS

PERSPECTIVES

BREAKING THE LANGUAGE BARRIER ajor international airports can be a confusion of tongues and where general confusion and stress are often close to the surface for many passengers. For this reason, Amey gives its staff communication training specific to an airport environment. English may not be an operative’s first language, says Caroline Barnes,

M

The average day sees just over 35,000 passengers, and a peak day last year saw 45,000. But with the Olympics, the peak is expected to be more than 50,000. Two things were needed to ensure lean manufacturing working, explains Slater. One was for all the business partners to share information and frequently communicate updates. This is where a good relationship with BA is essential to get data about flights, from which Amey can predict passenger movement around the terminal. The other essential thing was to get the Amey team up to lean manufacturing speed. A ‘Six Sigma’ (see box) consultant 20| 5 APRIL 2012| FM WORLD

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the cleaning training manager at Amey who is also a British Institute of Cleaning Science training assessor. “For a font-line operative, being from somewhere else other than the UK is a distinct advantage at T5,” she says. “Around 31 languages are spoken by the team. It’s common for cleaners to be called on their mobile to assist other terminal staff who

GLOSSARY

SIX SIGMA ix Sigma is a business management strategy developed by electronic giant Motorola in the US in 1986 and refined at General Electric in the US in 1995. The strategy is to improve the quality of outputs by identifying and removing the causes of defects and variable quality in the end product.

S

don’t speak a passenger’s language.” In the past 18 months, around 390 operative have been through the BICS Level One Certificates and 120 have been through NVQ courses. Amey also provides courses that look at typical questions likely to be asked by passengers, such as, “Where is the baggage collection?” and what the operative’s responses

can be. “Where is my flight leaving from?” and “Where is the departures lounge?” are usual questions. To help build a new operative’s confidence, they get three days off-site training before going on site. Even then, they are accompanied by a ‘buddy’ for three days, says Barnes, who has worked at T5 since it opened in 2008.

was brought in for a day to train senior managers and the philosophy was then rolled out to operatives. Amey receives flight information updates every 15 minutes from BA. This gives Amey advance warning about possible increases of passengers in ‘dwell areas’. If a manager knows that a flight is delayed, he will have an idea that more people will be waiting in a dwell area, such as a passenger lounge. All operatives carry a mobile phone-come-walkie-talkie so they are contactable – and to know what other operatives are doing and why. Operatives’ coffee breaks can be rearranged to accommodate passenger increases and decreases. However, moving around quickly in a building nearly 400 metres (1,300 feet) long takes time and can be dangerous. Health and safety concerns mean fluids spilt on the floor must be cleaned up within five minutes. But a cleaner pushing a trolley through crowds could miss the time target and in the process run his trolley into a passenger. Operatives use stop watches to time their efforts and to station extra trolleys inside back-office

areas. Using this method, an operative can get through the crowd on his or her own quickly and then pick up a trolley nearer the destination area. There is also a psychological element to cleaning, says Slater. If a seat in a waiting area is full of old newspapers, paper food trays or coffee cups, people tend to not sit either side of it. So three seats are out of commission if the waste is not cleared. “But if passengers see more staff cleaning around them, they are inclined to get up to put their waste in a cleaner’s trolley, so more time is saved,” says Slater. Working at T5, for no matter what company, is like being on a single team – and passengers see it that way, too, says Slater. To help ensure the ‘great passenger experience’, staff must be able to answer passenger questions when taken aside, as is likely to happen to anyone wearing a security tag out on a public concourse. Sure enough, and right on cue during the walk-around with FM World, several passengers approached Slater with questions. “Where is the baggage collection” and “where can I change my flight” – all in a day’s work. FM www.fm-world.co.uk

29/3/12 12:21:18


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FM FEATURE FLEXIBLE WORKING KEVIN STANLEY

FLEXIBLE MENTALITY

Flexible working has its supporters and detractors, yet it hasn’t taken off as some predicted. Why? Are insecure managers to blame, asks Kevin Stanley, or do some us actually quite like the office water-cooler?

Illustration: Edward Tuckwell

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he typical driver for organisations considering flexible working is cost, but there are many other factors, not least sustainability (in terms of reduced travel) and employees’ work/life balance. So, what’s holding them back? Could it be that organisations are failing to fully appreciate their employees’ own reservations? It’s important to ascertain whether employees will react positively or negatively to spending less time in an office environment and it’s equally important to ensure that workers are adequately balanced between the office and remote locations. “There are various stakeholders involved in the success of flexible working – employees, managers, HR, IT and senior management,” says Ken Raisbeck, vice president of Global Workplace Strategy,

T

Johnson Controls Global WorkPlace Solutions. “Whether companies identify work done from coffee shops or on trains, for example, as flexible working is debatable – but that is exactly what it is. There are times when people need to be physically together and there are times when people need to be alone to get something specific done without the interruptions of the office. It’s about understanding how people work, understanding their working practices and how they use technology to work in different spaces.” A 2011 report carried out by ZZA Responsive User Environments, entitled Why place still matters in the digital age, shows that people value the social dimensions of work and that they separately value the contrast that a workplace outside of the home offers. “Our research shows that

employees value the scope to work at home, when this makes sense for their activities, but that they predominantly choose to work in a collective workplace,” says Professor Ziona Strelitz, founder director of research and strategic consultancy, ZZA Responsive User Environments. “So, business should not conceive of flexible working as an all-or-nothing pathway.”

A matter of choice There is an argument that offices without people would lose a sense of corporate identity, and that offices should be a place where employees can meet, face to face. Yet employees should be given the choice and the autonomy to do their job in a way that suits them. “It’s got be about choice,” says Nigel Oseland, director of Workplace Unlimited. “There are certain times when people need to be in different spaces. “We need to understand which spaces best support an employees’ ability to do their job,” says Oseland. Working in an office environment will allow people to connect and to collaborate, reinforcing in a person’s mind a sense of corporate culture. “The office environment also allows people to act as mentors to less experienced employees, as well as to meet with peers and senior staff,” Oseland continues. “People are good at following their own needs,” agrees Strelitz. “If their objectives are defined in terms of performance requirements and they are meeting these requirements, then managers need not see their folk in the office to prove that they are working.” Strelitz believes that structured and scheduled time needs to be agreed for teams to meet as teams. Naturally, however there are potentially negative aspects of working from any space; open plan offices can be noisy and full www.fm-world.co.uk

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FLEXIBLE WORKING

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FM FEATURE FLEXIBLE WORKING KEVIN STANLEY

of distractions, homes are not always suitable and even cafés or libraries can be distracting places in which to work. There are advantages in allowing employees to work outside of the office environment to deliver processed output, but employees must be given that choice. “Flexible working can be advantageous, but if we were to force people to work outside of the office environment then we would possibly be setting ourselves up for a fall,” says Oseland. “It’s important to consider people’s individual personalities. Introverts might cope well with working at home, while extroverts are social creatures that often thrive in the office environment.” However, instead of corporations considering these psychological aspects of employees’ psyche, it is often corporate culture and job roles that dictate where and how people work.

A generation game Offices can be seen as social nodes – employees may require the social environment that the office provides in order to work well. Generational differences may play a part in whether someone is comfortable working from the office, the home, or the ‘third space’. Younger employees may enjoy the social interaction of office based working, while employees with children may welcome the opportunity to work from home. But how can organisations ensure that the people who work remotely are psychologically capable of doing so? “Some companies simply decide on flexible working as a diktat,” says Nick Dalton, director of Proteus Consulting. “They hope that employees can cope with the new way of working, even down to whether individuals have the 24| 5 APRIL 2012| FM WORLD

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actual space and means to work from home if they have children or pets. According to Raisbeck, “corporations should formalise a way of working and build a flexible programme that can be branded and given an identity that employees can relate to.” He suggests that difficulty often arises from embedding a new way of working, while ensuring that employees retain a connection with their organisation’s values and identity – without the notion of a set office, desk and chair. “Employees need to be empowered and able to manage their own work/home life balance in order for them to perform at their best,” says Raisbeck. The consensus is that flexible working is on the rise and that

engagement with employees and integration between IT and HR, in order to create a support infrastructure is vital to its success. “If technology doesn’t allow an employee to work from home, or from a ‘third space’, then we shouldn’t push it,” argues Raisbeck. “It’s about enabling, not creating barriers. Companies must engage in a dialogue with their employees to make it work. “Our research shows that in 2002 the primary place of work for 55 per cent of employees was the office.” His research suggests that by 2007, however, there had been a major shift, with only 18 per cent of employees considering the office to be their primary place of work. The current trend in 2011, however, has swung back to the office with 45 per cent of employees

considering it to be their main place of work.

Testing times Psychometric testing, to ascertain a candidates’ proclivity for working remotely and being managed increasingly by output, is one option for organisations to understand their employees and to help to prepare them for a flexible future. But is this a step too far? “Certain people may be able to work from home, or a third space, more easily than others. Some organisations are starting to look at psychometric testing to work this out, but it’s not mainstream,” says Oseland. “However, before we use psychological testing, we need to use common sense and understand the job role and use communication and engagement to see which people will be www.fm-world.co.uk

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FLEXIBLE WORKING

“Flexible working is happening, and employee engagement and integration between IT and HR, to create a support infrastructure, is vital to its success” happy or not working from certain spaces.” Oseland suggests that organisations should not force the issue, and give people options. “We should look at the nature of the job and the key work activities and build a space around this. This is the starting point, the personality and psychological aspects come later. It’s the space that drives the way people work.” He argues that if you give people the choice, the problems of suitability are removed.

Blackout blinds? Unfortunately ‘middlemanagement blackout’ is another frequently reported problem; workplace strategists often find that managers are incapable of dealing with the end of management by presenteeism. Organisational culture has a large part to play in this. Unfortunately, the truth is that many managers are uncomfortable with remote working. You end up with the bizarre situation where the message from executives is ‘work from home’, but managers only pay lip service to this and do not trust their staff to work remotely. “Staff receive a mixed message,” says Dalton. “The statement ‘I’m working from home today’ is still met with a wry, disbelieving smile. “This is all due to culture and change preparation. For example, managers with remote sales teams are confident managing by outputs and comfortable with staff being away from the office. Many other types of manager are not.” Insufficient training can be the cause of “middle-management blackout”, continues Dalton, “while a general feeling of insecurity among managers can also present a problem – they can feel they are losing an element of control over their employees”. Managers may simply not know how to deal with flexible working, www.fm-world.co.uk

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and if adequate training hasn’t been provided, then there is likely to be more resistance. Andrew Mawson, managing director of Advanced Workplace Associates, suggests that the ability to work remotely is often assumed, sometimes wrongly. “Any assessment is usually done in a haphazard sort of way by a manager who has probably never worked remotely for any length of time,” he says. “There can be a loss of trust and a sense of isolation unless the team and the leader learn some new techniques to work together.” Flexible working is a team, rather than an individual, pursuit, says Mawson “It’s the whole team that needs to enter into the new way of working, even if only a small number of the team are working remotely. There needs to be an agreed way of working and communicating and clear expectations. Suspicions about people’s work habits can rapidly unravel the trust between the manager and employee.”

Adjustment bureau Craig Knight, of Exeter University’s School of Psychology, says getting used to working from home will take time; the organisation will need to be aware of fluctuating patterns of performance. “There are benefits – the employee is in a space that they can control – but the drawback is clearly isolation. “Employees should be allowed to come into the office to spark off others and meet colleagues, then they have a space that they can tailor to their own needs and another in which they can converse with colleagues.” Although it is unlikely that ‘the office’ will cease to exist in the foreseeable future, the workplace is no longer about buildings – it’s about empowering employees and enabling them to maximise their potential in order for businesses to succeed. FM

PSYCHOMETRICS

TESTING TIMES? e conducted an internal study based on Myers-Briggs psychometric testing and aligned those personality types with people’s workspace preferences. Our study suggested that people with similar personality types tended to have similar preferences in terms of working environment. While this could suggest that extroverts would not flourish working flexibly or remotely, it’s not necessarily the case. The rise of collaborative technologies, such as instant messenger and Skype means that people can interact as part of a team from virtually anywhere. Most flexible and remote workers have a variety of work environments, but evidence suggests that faceto-face interaction is still very important. Any company looking to introduce remote working should try and provide flexible workers with ample opportunity for personal interaction.” “We are seeing a redefining of the world of work with far less emphasis on the physical environment and more on people and their preferences. HR departments regularly use psychometric testing, such as Myers-Briggs and Belbin, to analyse the make-up of teams, departments and even organisations. So there’s a huge opportunity for workplace professionals to use that profiling data to connect individuals with the workspaces that they will be most productive in. Increasingly, workplace professionals implement flexible working programmes with help from colleagues in HR, IT and real estate. In my experience, when all these stakeholders are involved the results are often far better and the change is permanent.” “There’s a huge amount of pressure on the middle band of management. They’re under pressure to implement flexible working programmes, but they’re also responsible for a team of individuals reporting to them who may react to change very differently. They can get squeezed, particularly if they don’t fully understand the reasons for introducing remote working. However, it’s absolutely essential to have this middle layer on board and fully supportive of change to make it work. When we look to introduce alternative working we target these managers. We provide them with a communications toolkit so that they can articulate the rationale with their teams. Some can be wary at the start, but it’s only when they understand the business reasons for change and their role in making the process a success that they can drive it through. Implementation of change is more successful when it’s driven from within the organisation.” Rob Wright is director, Workplace Strategy Americas, Johnson Controls Global WorkPlace Solutions.

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FM FEATURE ROUNDTABLE PROCUREMENT

In association with

ATTENDEES

John Bowen (Gulfhaven)

Andy Quinn (SCEE)

Andrew Turner (UK Power Networks) Jason Cousins (Olswang LLP)

Peter Titus (DCT Facilities Management)

Lucy Jeynes (Larch Consulting)

Mark Hurst (Office Depot)

Susan Scott-Parker (Employers’ Forum on Disability)

Les O’Gorman (UCB)

Emily Hill (Dixons Retail)

Jeremy Waud (Incentive FM)

Matthew Smith (Office Depot)

Steve Bagshaw (Supply Management and FM World)

A more mature evaluation of ‘cost’ Les O’Gorman: Most managing directors are focused primarily on cost. Procurement and FM directors have to get together and sing from the same hymn sheet. The procurement person is probably set a savings target for the year, while the FM will be given a target for customer satisfaction or a workplace, delivering to company values. The only way these two people can deliver both goals is to work seamlessly together, even if that means them going back to the managing director and saying: “We can’t have both.” Susan Scott-Parker: That is my point. If you save so many millions, but then spend another few million in tribunals because your people are so badly served that they’re accusing you of treating them unfairly, you won’t save money in the long run. LO’G: It’s not just black and white, there are shades of grey. Saving money doesn’t automatically mean a degradation in the working environment. SSP: I’m talking about the buyer. He may have saved money on the contract, but in terms of the overall business there are these hidden costs that may not be picked up in the usual price related data gathering.

PHOTOGRAPHY: SAM KESTEVEN

Martyn Sherrington (SGP Property and Facilities Management)

Mark Hurst: Presumably the managing director’s focus is going to be his people, because if isn’t he has a problem. It is about the FM and procurement directors demonstrating to him there is a return on his investment, in a language he understands and then creating the structure to go and deliver that. Martyn Sherrington: An FM director will think, “I have to look

COST CONTROL A more mature understanding of FM procurement costs, with an emphasis on the longer-term cost of short-term savings, characterised the latter half of our recent roundtable debate

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ROUNDTABLE

CONCLUDING POINTS Martyn Sherrington heads procurement for SGP. Concluding point: It’s been a good, open debate. Andrew Turner, buyer UK Power Networks. CP: planning is fundamental. Peter Titus, director, DCT Facilities Management. CP:Understand the culture of who you’re working with. Lucy Jeynes, Larch consultancy. CP: We need to be careful to ask the right questions. Mark Hurst, director, FM sales, Office Depot. CP: Clarity, communication, focus on people. If we can get all of those things right, you can’t go wrong. Susan Scott-Parker, Employers’ Forum on Disability. CP: How you track and log innovation is important. Les O’Gorman, head of facilities, UCB Celltech. CP: BS11000 will add an extra dimension to the FM / procurement relationship. John Bowen, commercial consultant, Gulfhaven. CP: Respect what both parties can bring.

after this building. I’m going to put my best man on it,” but a procurement director will think, “I have to buy all this IT, all this HR, all this marketing – and then I have to buy FM.” From a procurement point of view, IT, HR, marketing – all that stuff is sexy; FM is lower down the chain. So as you come into procurement you might cut your teeth on an FM contract and that’s where you pick up some bad habits from buyers who think they know best, but don’t. There’s got to be a balance between ‘this is what we need to deliver’ and ‘this is the optimal cost we are looking for’. Jeremy Waud: The MD’s driver should be shareholder value, and that manifests itself in all sorts of ways, not just the profit and loss. He should have a view of where he wants the business to go. www.fm-world.co.uk

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The models we should be going to the market with in the current environment should reflect creativity in the commercial model and that could come from the supply side or client side. Either way, the model needs to be creative. Incentivising is another key factor. Incentivising to perform, get it right first time, to get a low turnover of staff and high performance KPI stats to drive out cost – all the key points in the contract should be incentivised. Being able to be flexible links into the cost model to which all these intricate, complicated costs fit. People costs, anticipated costs, reactive costs, energy costs – all sorts of things you don’t yet know. But what you do know is that you spent £5 million last year and the MD wants you to turn that into £4 million. You also know that your standards are

Andy Quinn, director of purchasing and facilities, Sony Computer Entertainment Europe. CP: It’s important to understand your client culture and that of your supplier. Jason Cousins, facilities director, Olswang. CP: Contracts in the FM world are all over the place. Emily Hill, Dixons Retail CP: I’ll be finding out more about BS11000. Jeremy Waud, MD, Incentive FM. CP: Only thing we didn’t cover is the importance of getting the right number of FM contractors to bid. Matthew Smith, head of procurement for trade and nontrade at Office Depot. CP: It’s been a good open debate. (Note – in our last edition we inadvertently transposed some of Mark Hurst’s quotes with Matthew Smith’s. Apologies.) FM WORLD |5 APRIL 2012 |27

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FM FEATURE ROUNDTABLE PROCUREMENT

“YOU’RE THROUGH THE DATING STAGE TO THE MARRIAGE PHASE, SO YOU KNOW EACH OTHER WELL”

In association with

tender when something is going fine because the process obliges the company to go out to tender every three years, or whatever it might be. Andrew Turner: But you don’t want to keep extending a contract because it has worked fine. You need to consider how the market has changed or evolved in that time and that’s about having the time to look at all the options.

MARTYN SHERRINGTON

Making the most of existing relationships

JW: Sometimes you can be too efficient. Let’s say there’s a £1 million contract, a 10 per cent fee, and you have driven costs right the way down. You’ve driven those costs down from £1 million to £850,000, but you’re still charging £100,000 of fees. Suddenly your fee percentage has gone way up to nearly 12%. From a procurement point of view, that isn’t best value on the face of it, but it is only not ‘best value’ because you’ve been so effective between you and your service provider in driving down costs without affecting standards.

Lucy Jeynes: A lot of procurement people paint themselves into corners by requiring themselves to go out to

MS: Going back to the point you made earlier about engaging with a supplier. In a sense, it’s like dating; you have gone through

7/10 and you want them to be 9/10 and that you also want to improve employee performance. What worries me is when a buyer going out to tender says: “Right, where did that model come from? Let’s just dust down the one we used before.”

the dating to the marriage phase so now you know each other really well and what you are saying is: “We want to develop that relationship even further.” Sometimes it is painful, but sometimes you need to go through a divorce and learn the lesson a second time round. JW: The way you resolve that is to go back to the table and say: ”Can we extend this contract on this basis? For example, we’ll take on the reception team, but we’ll not charge you any fee, or we’ll invest in more technology.” That’s about putting something back to get the equilibrium right again. That’s a mature way of working. MS: Both parties can be very bad at record keeping. We can be bad at recording through the life of a contract what the cost was at the start, per square metre, and what it is now. So when the MD asks: “Are we getting good value?”, we can’t measure the work done in the past. All that good work is completely forgotten because we don’t record the data. SSP: A bit of data I keep coming back to is what you were saying

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about return on investment. It’s a different way of looking at this game – it gives you a different conversation.

The market for FM service providers LJ: One thing not well understood by some procurement people is that there are a lot of medium-sized, single, hard or soft service providers coming through that can give really good service and good value. But they are often extremely poor at tendering because these are the practical people who have just rolled their sleeves up and got on with it. AT: We recently held an e-auction and we had a lot of small suppliers. We made sure that we had training there for them: I was contactable all the time and we spoke to them a lot during the process and we made sure we were comfortable with the auction process. We obviously had the support of our e-procurement provider as well. It’s in our interest to get everyone to bid, because we want to get the best proposition. www.fm-world.co.uk

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ROUNDTABLE

some said: “We are going to do condition–based maintenance” while others said: “We are going to do proper SFG20 PPM.” We had to say to procurement: “Those are not the same things at all.” Yet the procurement people maintained they were. We had to fight the case to show that these were two very different models. JW: That goes back to strategy – what is the strategy for maintenance? What do we believe? Do we know? If we don’t, let’s go and get some advice so we can decide how we want to maintain the building.

The tender straitjacket Emily Hill: You need to list the assets, that’s the first thing in your tender document and you can then establish what SLAs you want, you can go for the gold/ silver/bronze type solution. In our stores we will have our top 100 gold/silver/bronze approach, but you have to start with the asset list. If you don’t have the asset list, where do you start? You don’t know what you want. Andy Quinn: Performance measurement specs are brilliant, but they are the most difficult to compare. The bottom line is that FM will be asking of a contractor: “What is the performance? What is this going to give me? Where is the innovation?” Meanwhile, procurement is asking: “How can I compare this bid that says they are going to do it this way, with this bid that says they are going to do it another way?” There is a fundamental difficulty. It’s nobody’s fault. It’s just a fact of life. LO’G In one of my previous companies there was a deliberate strategy of not going to TFM in one hit. We picked off services as they came up over a two year period. One particular example was the cleaning contract. The www.fm-world.co.uk

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best bid came from our incumbent supplier, who wasn’t a potential TFM provider. We had a massive battle with my boss and at chief executive level, regarding not going for this bundle because they had bought into this whole “If we bundle, we anticipate we can save £500,000 per year”. The good thing was that procurement and FM absolutely agreed that we had chosen the best bid and that we were unhappy with recommending TFM providers. That united front really delivered because we won the battle. I mentioned earlier on about involving the purchasing guys from day one, developing a spec with them, agreeing the contract model, agreeing how we would score so that the balanced score cards put together worked jointly – it wasn’t about adding the procurement bits to the FM bits and hoping they matched. LJ: That makes sure you’re really comparing apples with apples, doesn’t it? In a tender I was looking at recently, they issued a really good asset list and said: “One of the things we want is planned preventative maintenance (PPM) on this asset list.” When the bids came in,

MH: The percentage of weightings that I have seen recently on cost negates some of the softer touchy-feely elements. The innovation elements are scored so low that in reality it is about cost. It is the climate we are in. Those weightings need to reflect what the vision is: innovation, longevity service, value adds, etc. If 95 per cent of the scoring mechanism is related to cost alone, you have a problem. Jason Cousins: Cleaning is a good example. Someone comes in with a really low bid, but what they are actually saying is: “The money we are going to pay our staff is particularly low.” You know you are going to see a high turnover of staff and that the cleaning quality isn’t going to be very good. JW: The most important point in all of that is management and offsite supervision. That’s what will make the difference, nothing else. LJ: Yes, but it’s also about giving people the opportunity to say: “Why would you choose us as opposed to one of our competitors?” and asking the sort

of questions you don’t often see in cleaning tenders. Often those questions are “We want to clean to the BICSc standard; here is our TUPE data, how would you do it and how much would it be?” Everyone has pretty much the same answer to that question. But if you ask questions like: “Explain how you would do something different with the same team? Why are you different to other people? Can you give us an example of an organisation where you have had a difficulty in the relationship and you have worked together to resolve it?” – more interesting questions that will allow people to differentiate themselves. Often the way the questions are asked means that the answers are pretty much the same, because it is so obvious what the ‘correct’ answer would be that everyone just gives the ‘correct’ answer. John Bowen: We’re skirting round the issue of risk here. There’s risk to the business in terms of “can we afford to carry on spending this level of money?” and there’s risk to the business of using contractors who employ people who don’t have the right to work, haven’t been trained FM WORLD |5 APRIL 2012 |29

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27/3/12 09:56:05

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ROUNDTABLE

In association with

DEBATE DASHBOARD Most roundtable events produce strong material, which is why this particular one was split over two issues. However, we’re also aware that many readers will simply want an at-a-glance summary of the issues raised. So below, you’ll see that we’ve weighted those issues based on the amount of debate time they took up. The numbers and icons indicate how frequently each issue was discussed or its importance reinforced as the debate progressed.

properly, use the wrong materials, etc. These risk issues have to come into any purchasing conversation. I see that as a conversation that both sides should be having. Certainly buyers should be considering commercial risk. Surely as a buyer you want somebody who is going to be open and honest? If they’re going to pull the wool over your eyes you’ll soon find out and it will eventually lead to an exit of some form. That’s about doing due diligence at the start, ensuring you are making that right decision around your financial pressures, whatever they may be. JW: Yes, what are they really like to deal with? How often do you see the account director? Have you ever seen the MD? Do they really provide this data when they say they do, and what happens when it goes wrong?

RELATIONSHIPS WITH THE BOARD

1 1 2

Recognition of FM’s overall value to the organisation (what does ‘good’ look like?)

Issues of corporate risk and the management of expectations

1

1 3

1

Exploiting procurement’s more direct connection to senior management

Awareness of the impact of existing contract specs on expected standards

PROCUREMENT PROCESS

RELATIONSHIPS BETWEEN FM AND PROCUREMENT

Failure to look beyond initial contract cost 2

Poor procurement leading to adversarial relationship with FM contractor

Getting the right number of bidders on contracts 1 Bundle complexity 1

Poor perception of FM’s role by the procurement department Accepting that contractors need to make a profit 1 The importance of both parties having shared understanding of what FM does Appreciating changes to FM market during contract term 1 Trust and respect between both parties

MS: And how often do they need to get the contract out?

FM taking the lead in the relationship

THE POWER OF DATA

Procurement’s lack of interest in / dismissive nature towards FM

SB: Emily, you mentioned that data was your biggest problem.

Differing perceptions of value between the two departments

Adapting relationships with contractors based on performance success 1 Assessing the market for change 3

CONTRACT MANAGEMENT

EH: Four years ago we lacked consistent data, on FM particularly. If we asked for a particular set of data on two different days we got two different lots of data. The only way in which we can drive decisions is to understand what is driving the cost across the FM provision. It’s about using the data properly to understand where the problems are across the account. We are always keen to understand the root cause.

Procurement and FM not waiting until just before re-tendering to work together on the next FM deal

The fact that FM is not a commodity!

TENDERING

3 Proper management of continuous performance improvement

1 Inflexible tender process making it difficult for service providers to stand out

Limited ability for the incumbent FM supplier to demonstrate added value

2 Building some mid-term re-assessment / flexibility into contract design

Problems caused by data not being maintained or recorded

1 Problems caused by companies underpricing in order to win contracts The value of putting a reliable data capture regime together

SB: So, data removes doubt.

2

Issues with the initial structuring of the contract

EH: It gets rid of all the emotion, otherwise you go to meetings and it’s all “he said, she said” with no fact driven analysis. www.fm-world.co.uk

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Incumbent contractors engaging with buyers Procurement stepping back from the process once the deal’s been done

1

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FM MONITOR SUE SHARP

LEGAL UPDATE

Sue Sharp is is presidentelect of the Building & Engineering Services Association

L EG ION ELL A B EST P R ACT I CE UP DAT E

oor maintenance and complacency are P fuelling a rise in preventable outbreaks of Legionnaires’ disease and subsequent court cases, explains Sue Sharp The scandal over apparently faked test results for Legionnaires’ disease at a leisure centre in Northern Ireland earlier this year will be troubling for anyone involved in building maintenance and occupant safety. Indeed, deaths and serious illnesses resulting from Legionnaires’ disease remain an all-too regular occurrence and are usually the result of poor maintenance regimes. Confused diagnosis The condition is certainly better reported these days and diagnosis has improved. It is a form of pneumonia with symptoms such as fever, muscle aches and shortness of breath developing into vomiting and diarrhoea. In the past, understandably, it was often confused with flu. The bacteria that cause the disease – legionella pneumophila – occur naturally in water and earth, but will proliferate and spread in stagnant hot water systems if the conditions are right. Scientists are concerned that, in some instances, the bacteria could be mutating. Some types have been reported as more resistant to the high water temperatures that, in the past, used to kill the bacteria. In other cases, it is multiplying in ever-lower temperatures. Green around the gills? The growing emphasis on saving energy has led to more building operators switching off and/or 32| 5 APRIL 2012 | FM WORLD

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turning down hot-water systems overnight and at weekends to save money and cut carbon emissions. This can lower the temperature of the stored hot water into the ‘danger zone’ between 20°C and 50°C, which legionella bacteria enjoy. The optimum temperature for proliferation is around 37°C The increasing use of solar thermal heating systems can also, if the system is not properly controlled and maintained, result in more hot water being stored in just this temperature range. Safety concerns about hot water scalding have also led to an increase in blending valve installations, which can lower hot water temperatures into the legionella zone. Also, some strains of the bacteria are able to survive the low-level dosing of chlorine dioxide that is used as a cheaper alternative to more comprehensive maintenance regimes. However, the general threat is poor maintenance and monitoring. Budgetary pressures have forced many facilities managers and building operators to reduce the frequency and thoroughness of system checks. In many instances, even the vital initial risk assessment is not being carried out. A regular programme of inspection and maintenance of air conditioning, water holding and water supply systems carried out by competent people is essential to reduce health risks. Clusters of cases are often traced back to poorly maintained cooling tower

systems, air conditioning plant or hot and cold water systems. Risks can be dramatically reduced by setting up a programme of regular inspection and maintenance of susceptible plant and equipment including regular cleaning and disinfection. This does not need to be expensive – the major cost is in human time spent checking and remaining vigilant. Legal obligations for building owners and occupiers are set out in a single document, published by the Health and Safety Executive (HSE), called Legionnaires’ disease – the control of legionella bacteria in water systems. This is an HSE Approved Code of Practice (ACoP), commonly referred to as L8. It is the building owner’s responsibility to put a proper control strategy in place. This must include a system for managing the maintenance of water systems, regular monitoring, with the records kept for five years, and training for everyone in the management chain, with their skills updated periodically. Unwelcome guests Maintenance staff should regularly check the temperature at which water is being stored. Standard advice is to keep hot water above 60°C, but as the potential bacteria mutations show, it is important to remain vigilant. Stagnant water is where the bacteria grows most prolifically so those parts of hot and cold water systems that are only used intermittently should be regularly flushed and cleaned. The Health and Safety Executive (HSE) recommends that this is done weekly with shower heads and hoses cleaned quarterly. Taps and showers are the main route used by the bacteria to get into the air close to potential victims, in the

form of a breathable aerosol. The HSE also recommends that cold water storage tanks be cleaned periodically and the water drained from hot-water cylinders to check for debris or signs of corrosion. In the US, 120,000 people are thought to have died since the cause of the disease was established, following an outbreak during the meeting of the American Legion in Philadelphia in 1976. There was a 217 per cent increase in annually reported cases between 2000 and 2009. As a result, the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) has produced a ‘management standard’ to inform building owners about setting up the processes needed to minimise risks. It adopts non-prescriptive approach because the society has rightly identified that the key issue is how individual building managers address their own site-specific issues. There are many technical solutions available and the conditions for an outbreak are well known and recognised. However, without good management and a vigilant, motivated and well trained maintenance team, the threat will always be there. FM CONCLUSIONS 1. Building owners are legally obliged to implement a programme of regular inspection and maintenance of plant and equipment, carried out by trained staff 2. Inspection records must be kept for up to five years 3. Water temperature should remain above 60°C to discourage bacteria 4. Shower heads and hoses must be cleaned quarterly. Cold-water storage tanks must be cleaned periodically. www.fm-world.co.uk

29/3/12 16:18:44


15-17 May 2012, NEC Birmingham, UK - Visit us on stand P20

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Printer copier rental and managed print service packs

Call us today 0844 873 0421 or visit www.officedepot.co.uk email us enquiry@officedepot.com Office Depot UK Ltd, registered in England at 501 Beaumont Leys Lane, Leicester LE4 2BN with registration number 2654682

FMW.05.04.12.033.indd 1

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BIFM NEWS BIFM.ORG.UK

Guess where this year’s ThinkFM conference is taking place…

THINKFM

Book now for the conference taking place on 18 June at The Royal College of Physicians in London. As a BIFM member, you continue to make savings on the conference, benefiting from preferential BIFM rates. ThinkFM is a day of learning, debate, interaction and networking, and the event is open to all facilities management professionals. It is ideal for facilities, estates, property and support services managers and directors. You select your own agenda based on your needs and interests from the hubs, which run through the day. You will hear from industry leaders and thinkers and will take away ideas to drive your organisation forward. At ThinkFM you will discover working solutions from fellow FM professionals on topics as varied as sustainability, building information modelling (BIM), agile working, procurement and employment law. Can you afford not to ThinkFM? i BIFM members are offered the discounted rate of just £345+VAT. It includes an early evening drinks reception. Learn more at www.thinkfm.com

THINKFM

B&CE to sponsor ThinkFM The People’s Pension, from B&CE, is a hassle-free, flexible and portable workplace pension designed for people, not profit, and is suitable for any organisation, 34| 5 APRIL 2012| FM WORLD

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ALAMY

Attend ThinkFM

large or small, in any sector. For the past 30 years, B&CE has provided workplace pensions to employers with transient, lowto-moderate earning workforces. It has been operating a form of auto-enrolment for 10 years through its existing pension product, and today manages assets of over 1.8 billion, on behalf of over 6,000 employers.

June to which all qualification achievers will be invited to honestly debate: ● The pluses and minuses of undertaking a qualification ● The areas BIFM should consider improving ● New areas/products BIFM should consider developing. It will be conducted by an external research facilitator to allow learners to be completely open. Invitations will be sent out in May 2012. i To find out more, contact linda. hausmanis@bifm.org.uk.

i

Contact www.bandce.co.uk

QUALIFICATIONS

Learner feedback It is now over two years since the BIFM launched its qualifications and since then, we have had over 850 learners register and over 230 learners achieve a qualification. As part of BIFM’s programme of continual improvement to ensure its qualifications remain fit for purpose, BIFM issues learner feedback questionnaires periodically. However, sometimes a questionnaire doesn’t capture the essence of a learner’s actual experience. With this in mind, BIFM is holding a workshop in

BIFM AWARDS

Enter awards Entries for the BIFM Awards close on 27 April, so you have just a few more weeks to enter. We are seeking entries for: Consultant of the Year Excellence in a Major Project Impact on Organisation and Workplace ● In-House Client Team of the Year ● Innovation in Customer Service ● Innovation in Products ● Innovation in the Use of Technology and Systems ● Learning and Career Development (new for 2012) ● ● ●

Service Provider of the Year Sustainability and Environmental Impact ● Facilities Manager of the Year (closes 13 July) ● ●

Could the facilities management industry benefit from learning about your project? The search is now on for the leading FMs, teams and projects around the UK. By taking part in the BIFM Awards, you are highlighting not only excellence and expertise within your project, but also the key role that FM plays in the success of organisations. The BIFM Awards capture the imagination of everyone and will leave you and your team feeling inspired, educated and better connected. i The BIFM Awards is open to all FM professionals. For more information go to www.bifm.org.uk/ awards2012 or email awards@ bifm.org.uk

WORLD FM DAY

Worldwide FM events

The fourth annual World FM Day will take place on 28 June 2012 with the theme www.fm-world.co.uk

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Please send your news items to communications@bifm.org.uk or call 0845 058 1356

of “Celebrating success!”. World FM Day is an initiative by Global FM to celebrate the importance of the FM profession. It aims to promote facilities management’s ideals, not only within the profession and industry, but also among the governments and the general business community worldwide. Global FM invites everyone to share their latest achievements and successes as a FM professional, as a team, company or country in a fantastic celebration of all the successes achieved by the FM professionals and industry. FM associations will celebrate World FM Day by organising events such as luncheons, seminars and workshops, Twitter debates and other activities. You can also celebrate World FM Day within your company by organising a morning coffee, lunch, social event or simply raise the attention that it is World FM Day by using the World FM Day logo as your screensaver, or including the World FM Day banner in your email signature. As in previous years, you will be able to list your event in the World FM Day Google Map, so that everyone knows what you will be doing on Thursday 28 June. You can add your event via www.globalfm.org or by emailing worldfmday@globalfm.org. To make sure all events are aligned, Global FM has created a communications support package comprising of: 1. World FM Day logo 2. World FM Day e-mail signature 3. World FM Day banner 4. World FM Day PowerPoint presentation template 5. World FM Day personalised poster i For further details or to download materials go to www.globalfm.org. If you have any questions, email worldfmday@globalfm.org

www.fm-world.co.uk

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Gareth Tancred, chief executive of the BIFM

BIFM COMMENT A N E U T R A L BU D G E T

eorge Osborne’s third Budget presented few surprises – and not just because it had been so thoroughly leaked to the press. Osborne’s speech had something of the déjà vu about it, because it was essentially fiscally neutral – the Chancellor gave with one hand while taking away with the other. In the current economic climate, he has little room for manoeuvre and economic policy is still very much framed by the Comprehensive Spending Review’s spending cuts. Yet the Chancellor did manage to offer the facilities management sector some welcome crumbs of comfort. The 1 per cent off corporation tax this year to take it to 24 per cent (and 22 per cent by 2014/15) will boost the FM supply side. The rise in personal income tax allowance to within spitting distance of the £10,000 mark from April 2013 will make millions of lower-paid workers in the facilities sector, such as cleaners and security guards, £220 a year better off. And the extra £100 million to improve military accommodation will be a boost to FM service providers working with the MoD at a time when other areas of defence are facing cuts. Osborne’s additional £150 million to support the roll-out of super-fast broadband in Belfast, Brighton, Bristol, Cardiff, Edinburgh, Leeds, Manchester, Newcastle and Birmingham is excellent news and will help businesses to move away from major cities and set up in other areas, easing congestion, reducing commuting times and improving work-life balance. The review of the much-criticised Carbon Reduction Commitment, meanwhile, is a step in the right direction. Many will agree with Osborne’s description of it as “cumbersome, bureaucratic and imposing unnecessary cost on business”. But hinting that he may scrap it and introduce an alternative environment tax in the autumn creates uncertainty for business and many will have hoped that the complex CRC would have been completely scrapped at this Budget. Meanwhile, this year’s CRC payments will still go ahead. The addition of enhanced capital allowances – allowing firms to write off more investments against tax – in five of the UK’s 21 Enterprise Zones, including London’s Royal Docks, will create local jobs and boost growth. There was also welcome news for planning and infrastructure with government support for £150 million of tax increment financing to help councils promote development and £270 million for the Growing Places fund, which enables the development of local funds to address infrastructure constraints. However, many FM businesses will be disappointed that more was not done to cut red tape and to accelerate deregulation. The consultation on the introduction of a large annual charge on properties held by corporates may cause alarm bells. Overall, the economic picture looks more positive with the independent Office for Budget Responsibility revising up UK growth forecast for 2012, from 0.7 per cent to 0.8 per cent with 2 per cent next year. Slow progress perhaps, but progress nonetheless. Yet while the 2012 Budget offers some small areas of headway for FMs, it’s what happens when the growth forecast becomes growth fact that is more important.

G

“THE 1 PER CENT OFF CORPORATION TAX THIS YEAR TO TAKE IT TO 24 PER CENT (AND 22 PER CENT BY 2014/15) WILL BOOST THE FM SUPPLY SIDE”

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BIFM NEWS BIFM.ORG.UK

BIFM TRAINING

FACILITIES SHOW

CAREERS

Facilities show

Equal pay

GAIN INFLUENCE AT THE HIGHEST LEVEL

Gemma Ludgate, a consultant from professional development service C2 Careers, shares her thoughts on the progress of gender equality in the workplace through wage differences in celebration of International Women’s week: “The first article I came across was by Forbes entitled ‘The amazing failure of women’s career advice’. It negatively argues that American women are using career advancement strategies, such as mentoring, but are forfeiting work-life balance more than men, only to still not progress quickly or decrease pay differences. “On this side of the ‘pond’, the outlook is rosier with the Office for National Statistics saying that the ‘gender pay gap’, the difference between average salaries of men and women, has fallen to under 10 per cent for the first time ever. The most impressive fact is that UK women in full-time work are seeing their wages grow at more than twice the rate of men. If this continues, women are predicted to earn more than men in 2020: over 50 years ahead of some forecasts. “With such great news at home, do our American cousins have any relevant wisdom? Well Dr Duffy [executive director of the Center for Women’s Leadership at Babson College, US] says women should choose strategies in the context of their long-term vision. Know where you want to get to, in terms of role and company, so you can plan the actions you ought to take to get there. Unfortunately there are no universal strategies, but by helping you to reflect on your situation I believe careers advice is often very beneficial.”

he re-launched BIFM Executive Programme aimed at those working at or aspiring to senior FM positions is back with a collection of brand new and up-to-the-minute titles:

The UK’s largest facilities event takes place from 15-17 May at the Birmingham NEC. BIFM is hosting sessions over the three days in the Facilities Forum, the Sustainable FM Academy and the new BIFM CPD Theatre. The Facilities Forum sessions are: Tuesday 10.30-11.15* BIFM session: The bigger picture – FM and the corporate responsibility agenda This session will look at an FM’s role in CSR. Wednesday 13.00-13.45* BIFM session: Winning BIFM awards will elevate your profile – what it takes to deliver a winning submission This interactive session will be chaired by David Wright from Corporate Property Advisers accompanied by fellow judges. It will provide information on the attributes of a winning submission and the judging processes. Thursday, 12.30-13.15* BIFM session: Rising FMs Special Interest Group: the future of FM – exceptional service through behaviours, culture and people This interactive session will look at how interpersonal skills are just as important as technical skills within Facilities Management. It is designed to change the industry’s established thinking – and will require audience participation from the start! i *Times may be subject to change. You can register to attend Facilities Show for free at www.facilitiesshow.com. Please do come and meet the BIFM head office team on stand T1.

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i To find out more about the BIFM Careers Service contact Amanda. Email bifm@careers.lon.ac.uk or call 020 7863 6060

T

IOSH Safety for Senior Executives, 22 May 2012 Gain a nationally recognised IOSH ‘Safety for Senior Executives’ certificate upon successful completion of a 45 minute test at the end of the course. Exploring Innovation in FM, 22 June 2012 Learn how to develop improvements and present a business case and FM Innovation plan. Quality Management & Customer Service in FM, 12 September 2012 This course will help you to improve FM service and better manage your long term relationships Strategic Financial Management in FM, 1 November 2012 A more strategic take on finance will help you to be more effective in your relationships at board level. FM Governance & Risk, 14 December 2012 Effectively manage risk and enhance your company’s reputation with more a more robust approach to your organisation’s governance and risk management strategies. Introducing & Leading Change in FM, 6-7 March 2013 Organisational change traditionally impacts on FM strategy, but here is your chance to learn how you may contribute to decisions about change. Strategic Procurement in FM, 19-20 June 2013 Review your existing procurement strategy, develop strategies for delivery and implement changes for improved performance and measurable results. Property Management & Maintenance Strategy for FM, 24-25 September 2013 Develop and manage a strategy that will have a major influence on the effectiveness and profitability of your organisation. i One-day courses: £450+VAT BIFM members or £499+VAT non-members. Two-day courses: £700+VAT members or £835+VAT non-members. To learn more, call 020 7404 4440 or email info@bifm-training.co.uk

www.fm-world.co.uk

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§

FM DIARY NATIONAL BIFM EVENTS 18 June ThinkFM 2012 ThinkFM will be a day of learning, with site visits. Venue: Royal College of Physicians, London Contact: conference@thinkfm.com or call 08701 632 804 12 July 2012 BIFM Annual General Meeting (AGM) 2012 Further details at www.bifm.org.uk/ AGM2012 and the presentations will be available from 13 July. Venue: Redactive Publishing (publishers of FM World), 17 Britton Street, London, EC1M 5TP Contact: sharon.mcKenzie@bifm. org.uk or call 0845 058 1356. Visit www.surveymonkey.com/s/BIFM_ AGM12 to register SCOTTISH REGION 17 April Hot topic expert panel – HR issues Ask the panel questions on subjects including recruitment, TUPE, CVs and employing agency staff. Confirmed panel members for the expert panel include Alison French, director with Brightworks and Cedric Fyffe, regional business manager with Hays. Venue: City of Glasgow College, North Hanover Street, Glasgow Contact: mkenny@fesfm.co.uk or call 07920 136 784 8 May Breakfast meeting – Procurement in FM Venue: Hampden Park, Glasgow Contact: mkenny@fesfm.co.uk or call 07920 136 784

Send details of your event to editorial@fm-world.co.uk or call 020 7880 6229

12 June AGM and prestige building visit There will be a talk from a FM provider and/or client. Venue: TBA Contact: mkenny@fesfm.co.uk or call 07920 136 784 NORTH REGION 16 May North Region golf day Open to BIFM members, corporate members and guests. A maximum of 64 golfers will all start together at 1pm. Venue: The Oaks Golf Club, Aughton, York Contact: ian.burgin@ norlandmanagedservices.co.uk or call 07779 145 470 7June York River Social Tickets cost £30 (plus VAT), the price of which includes entry into the charity raffle for Macmillan Cancer Support. Also included in the event will be a barbequestyle buffet, live entertainment and a cash bar. Book your place early to avoid disappointment Venue: Boarding at Lendal Bridge, Museum Street, York Contact: north@bifm.org.uk or call 07872 829743 HOME COUNTIES REGION 26 April FM in FM – knowing the numbers Venue: Hilton Hotel, Newbury Contact: jane@fmtutor.co.uk or call 07799 033 341 21 June FM beyond our borders Venue: TBC Contact: jane@fmtutor.co.uk or call 07799 033 341

LONDON REGION 24 April BIFM training conference – building surveying and maintenance This is an opportunity for managers to ensure that they are up to date and to learn how to improve liaison with the key parties, including contractors. Venue: Central London Contact: Kay Bain at info@bifmtraining.co.uk or call 020 7404 4440

9-10 May Green Build Expo This event will be covering issues including renewable technologies. Venue: Manchester Central Convention Complex Contact: www.greenbuildexpo.co.uk 15-17 May Facilities Show Venue: NEC Birmingham Contact: Registration opens soon. Visit www.facilitiesshow.com 15-17 May Safety & Health Expo Venue: NEC Birmingham Contact: safety-health-expo.co.uk

SOUTH WEST REGION 11 May Breakfast seminar This seminar is being sponsored by Hydrop with a presentation on Legionellosis. There will also be presentations from local subject matter experts on Health & Safety and Environmental topics. Venue: Future Inns Plymouth 1 William Prance Road, PL6 5US Contact: davewalker438@gmail. com or call 447866030738 INDUSTRY EVENTS

22 May 2012 BIFM training conference – building surveying and maintenance Venue: Central London Contact: Kay Bain at info@bifmtraining.co.uk or call 020 7404 4440, www.bifm-training.com/ bifmConferenceFS.htm 23-25 May BCO conference Venue: Manchester Central, Petersfield, Manchester Contact: www.bco.org.uk

17–18 April FM and property The event explores how to be relevant in a world of change. Venue: The Celtic Manor Resort, Wales Contact: Leighhussain@ globalbusinessevents.co.uk or call 01633 225 040

25-26 June 31st Facilities management forum Venue: Heythrop Park, Oxfordshire Contact: Mick Bush at m.bush@forumevents.co.uk or call 01992 374100

25 April 2012 BIFM training conference: flexible working Venue: Central London Contact: Kay Bain at info@bifmtraining.co.uk or call 020 7404 4440, www.bifm-training.com/ bifmConferenceFS.htm

28 June World FM Day 2012 The annual event aims to raise the FM profession’s profile around the world. Venue: Worldwide Contact: Visit www.globalfm.org for more details.

DELIVERING: INTEGRATION & QUALITY In today’s complex construction industry, it is more important than ever that the building and engineering services elements of a project are undertaken by companies with the skills, the capability and the resources required to do a truly first-class job. As our new name highlights, members of the BUILDING & ENGINEERING SERVICES ASSOCIATION (B&ES – formerly the HVCA) are able to demonstrate the necessary competence and professionalism. Our members meet the exacting standards that are essential for the quality design, installation, integration and maintenance of building and engineering services and renewable technologies.

www.b-es.org

a new brand; a new HVCA www.fm-world.co.uk

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FM PEOPLE MOVERS & SHAKERS

BEHIND

THE JOB What attracted you to the job? My family has a background in facilities management and I knew how to buff a floor by the age of 10. With an early insight into the demands of the job, it seemed like the right route to try.

NAME: Mike Rowley JOB TITLE: Commercial manager ORGANISATION: Peartree Cleaning Services JOB DESCRIPTION: Responsible for the cleaning management of a wide range of commercial Blue Chip facilities.

How did you get into facilities management and what attracted you to the industry? I had a part-time cleaning job while at college and saw that there were opportunities for career progression without years of formal studying. I’ve trained ‘on-the-job’ as a cleaning operative, to British Institute of Cleaning Science standards. What’s been your career high-point to date? I started in this industry as a teenager and now have over 16 years’ experience in many aspects of cleaning and facilities management. I’m now commercial manager responsible for a wide range of commercial blue-chip cleaning contracts at a relatively young age. There are not many industries where you have the opportunity to prove yourself and progress quickly. What’s been your biggest career challenge to date? In a previous role, I was responsible for a UK-based client, which had its head office in Zurich. This brought lots of challenges in terms of cultural and linguistic variations. They also had different pay structures to the UK and other operational differences.

ON THE

MOVE Changing jobs? Tell us about your new role and responsibilities. Contact Natalie Li Natalie.Li.@fm-world.co.uk

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Independent caterer BaxterStorey has appointed Steve Topping (right) as the North of England business development director. Topping has over 20 years of experience in the catering trade having previously worked for Sodexo and Balfour Beatty. Noel Mahony, chief executive of BaxterStorey, commented: “Steve has already hit the ground running thanks to his unrivalled knowledge of the catering industry in the North of England, which will undoubtedly help him to support the growth of BaxterStorey.”

If you could change one thing about the industry what would it be? The cleaning industry is often dismissed as an unimportant aspect of facilities management, but in reality cleaning is essential to the reputation of a business and the wellbeing of employees and visitors to the building. Without correctly cleaned buildings, a number of health and safety issues can arise, including accidents from slips and trips, and outbreaks of infection. It’s a myth that it’s a job for people without prospects – there are opportunities for career progression. You should never be dismissive of a cleaning operative – they provide a vital role and might soon rise to the top. If I wasn’t in facilities management, I’d probably be… a vet. As a young child, that was the job I wanted. How do you think facilities management has changed in the past five years? Technology has enabled a structured approach to quality monitoring for facilities managers, against agreed service levels, encouraging a more efficient ‘paperless’ environment. Real-time audits, e-ordering of products, e-training and the flow of information are crucial to our business. We will soon became the first company in the UK to implement the CleanLink iPad application, which has been specially designed for contract cleaners, via the iPad 2 to easily manage facilities and monitor operational performance.

London caterer, Vacherin has appointed Keeley Haworth (right) to the newly created role of manager of business development & marketing. Hayworth previously worked at Kellogg’s in a sales and development role, and prior to that was at Fortnum & Mason. She will be supporting the commercial director, Phil Roker, with responsibility for internal and external communications, with a focus on food. Vacherin has also appointed Michael Paul (far right), as executive chef at Kleinwort Benson. Paul graduated from Westminster College and his first role

was with the RAC Club. Paul then went on to his first head-chef position at the Law Society and after this he became the head chef at London Zoo. Shepherd FM has appointed Michael Webb as business director, reporting directly to Noel Clancy, CEO. Webb worked most recently at OCS Group UK, where he was divisional director of technical solutions and board member of both the specialist services and security divisions. Of his appointment, Webb said: “I am delighted to be joining a technical business with an FM bias.”

www.fm-world.co.uk

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FM NEWS

Call Adam Potter on 020 7880 8543 or email adam.potter@fm-world.co.uk For full media information take a look at www.fm-world.co.uk/mediapack

FM innovations ▼ Simply food... simply Weatherite When Marks & Spencer decided to improve the environment for their Simply Food store in Derby, it turned to Weatherite Building Services (WBS) to install a new air conditioning system. WBS designed and installed the latest energyefficient heat pump ducted system to provide better air flow distribution around the cold aisle area and also modified the existing ductwork to provide better airflow distribution throughout the rest of the store. WBS specified Mitsubishi equipment, which delivered an improved environment for customers. WBS understands the importance of a planned and project-managed approach. T: 01922 741 641 E: mthomas@weatheritegroup.co.uk

▲ New diploma in fire doors

▲ Johnson Controls appoints Top

The new diploma in fire doors is an important step towards the launch of Europe’s first fire door inspection scheme, which is designed to transform people’s knowledge and understanding about the critical purpose and function of fire doors in buildings. It is a joint initiative developed by the BWFCertifire Fire Door and Doorset Scheme and the Guild of Architectural Ironmongers (GAI), the two industry bodies behind the creation of the UK Fire Door Inspection Scheme (FDIS). The FDIS online learning platform contains seven web-based education modules, which are designed to be studied at a candidate’s own pace and location. A final examination can be taken at a local test centre, and successful candidates will be awarded the Diploma in Fire Doors and be entitled to use the designation DipFD after their name. W: www.fdis.co.uk

Johnson Controls, a global leader in delivering solutions that increase energy efficiency in buildings, has signed agreements with top systems integrators in the UK providing access to its full range of products in integration, installation and turn-key projects in the marketplace, including the company’s award-winning Metasys Building Management System (BMS). Deployed in more than 100,000 buildings worldwide, Johnson Controls’ world-leading Metasys BMS is an IT-based open infrastructure that ensures all building systems – comfort controls, lighting, fire safety, security and equipment – operate together in harmony. For 20 years Metasys has proved that it can help real estate managers significantly reduce a site’s energy usage and operating costs. W: www.johnsoncontrols.com

▼ Glass Aftercare’s fire doors and screens Glass Aftercare offers fire doors and screens maintenance, and also a full fire-door and screen service that includes consultancy, design, refurbishment and supply and install packages. The company provides a full range of unique glass-related fire doors and screens, from integrity only to integrity and insulation options, all of which are all fully tested to BS 476 part 22. These range from robust door and screen systems to the worlds slimmest glass fire door, maintaining the aesthetically pleasing appearance that we are renowned for. All our systems can take the form of manual or automated doors with fixed glazed side screens and over panels. T: 0845 0745 736 W: www.glassaftercare.com

▲ Jangro’s Member links up for training

▲ Kone supplies lifts to iconic building

Jangro Member company Hygiene Cleaning Supplies (HCS) Morecambe recently linked up with Prochem to provide its third carpet and upholstery training day for 15 local carpet cleaners. Jangro supplier, Prochem Europe provided training on its cleaning products and machinery, but also gave sessions on application and cleaning techniques. Marcus Leeming of HCS said: “We organise our own training sessions with Jangro suppliers to add to the Jangro training programme and DVDs. This combination of knowledge and product understanding means all our clients are up to speed.” Issues such as personal safety and health, colour fastness, the ph rating of products and when best to hand or machine clean were all discussed in depth. T: 0845 458 5223 E: email enquiries@jangrohq.net W: www.jangro.net

Kone has won an order to supply 14 double-deck eco-friendly lifts and four escalators to 20 Fenchurch Street, the iconic skyscraper under development in the City of London. A further pair of lifts will take people to the top of the 37-storey, 160m (525ft) skyscraper at a speed of five metres per second, reaching the spectacular sky garden from ground level in 30 seconds non-stop. The contract includes the low and mediumrise lifts being fitted with Kone EcoDisc hoisting machines, which consume 50-70 per cent less energy than conventional elevator motors. The project aims for a BREEAM environmental rating excellent’, which will put it among the greenest office buildings in the City of London. T: 0121 363 0074 W: www.kone.co.uk

www.fm-world.co.uk

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Contact the sales team on 0207 324 2755 | www.fmworld.co.uk/jobs

40| 5 APRIL 2012| FM WORLD

FM New appoints 050412a.indd Sec1:44

jobs.fm-world.co.uk

29/3/12 17:16:58


Key Account Manager Dubai based commission GBP 48,000 p.a. (tax free) ROLE PURPOSE The Key Account Manager –(KAM) exercises complete responsibility for managing and enhancing business relaƟonship with a near USD 2.0 million dollar p.a. customer in the Middle East Region with key focus on Customer RelaƟonship, Service and Revenue growth.

MAIN DUTIES AND RESPONSIBILITIES The KAM is a key role within the company. Key Account Management •

Culligan is a customer-centric, sales and service business. It is therefore the principal responsibility of the KAM to lead complete Customer relaƟonship management of Alshaya account within the Food Service Division. Managing the customers’ expectaƟons, delivering agreed SLAs and KPIs and enhancing the relaƟonship and business volumes from the customer will be the prime role of this posiƟon. Alshaya has operaƟons in the region including the GCC, UK, Egypt, Russia and Poland. Currently Culligan is providing services to them in Įve of these countries. One of the focus area for growth will be geographical expansion as well as the range of products and services to Alshaya. A key requirement of the job will be to closely coordinate with many diīerent stakeholders within Alshaya which includes the Project Managers, FM managers, Quality Managers OperaƟons, Finance, etc. An ability to interface with these departments at various levels is key to our growing the account with Alshaya.

Develop and implement sales and proĮtability plans according to account management principles that ensure the development and maintenance of account plans. Achieve the sales revenue and proĮtability goals/objecƟves of the Account.

Inter-departmental Management •

Internally, the KAM will have to draw out resources from the Food Service - Service Department (FSSD) to deliver the services commiƩed and required to be delivered. This will call for close coordinaƟon with the FSSD to manage both scheduled and non-scheduled work. The posiƟon also needs to interact with other departments such as Purchase & LogisƟcs, Finance, Credit control etc., to ensure that any problems are handled in a pro-acƟve manner. Please send your resume’s to recruitment@culligan.ae. Interviews to be held on 19th and 20th April 2012 in Central London.

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London Borough of Richmond upon Thames

• • • •

News updated at least five times a day Archive of every FM World article since 2004 Job email alerts Career advice

Facilities Management Contract Manager £38,961 - £41,610 The London Borough of Richmond upon Thames is looking to recruit a Facilities Management Contract Manager to lead a new team in the day-to-day management of the Council’s FM contractor. Interested candidates should have a proven track record in contract management in a Building and M&E maintenance environment working with term services contracts, as well as the ability to lead a new team in a period of change, to deliver an effective and value for money Facilities Management service. Closing date: Friday 13th April 2012 at midday. Interviews will be held week commencing 23rd April 2012. To apply online please visit our website www.richmond.gov.uk/jobs

Coffee and CV

www.richmond.gov.uk/jobs

fm-world.co.uk/jobs

has over 100 job vacancies

jobs.fm-world.co.uk

FM New appoints 050412a.indd Sec1:45

An equal opportunities employer

FM WORLD |5 APRIL 2012 |41

29/3/12 17:17:08


FINAL WORD NOTES FROM AROUND THE WORLD OF FM

NO 2

DAYS

THE SAME A GREENER KIND OF HOTEL

THE PSYCHOMETRIC SYSTEM Earlier on in this issue, University of Exeter's Craig Knight had some interesting things to say about psychometric testing that didn't make the edit, so here they are: "In terms of remote working and space planning, psychometrics are a debatable tools for use, especially personality psychometrics. At best, they have a moderate validity score. Employers need to look at what sort of team-type people are. One of the UK's foremost interior designers is using Myers Briggs Type Indicator testing but this testing only accounts for 10 per cent of a person's personality. The problem with most personality testing, and the reason for average or mediocre scores is down to the fact that the person taking the test is answering questions about themselves. '360 degree' tests – an appraisal test that mostly applies to middle managers and above – is much better as it asks the opinions of the employee's superiors and subordinates, and in doing so provides a better, more rounded picture of a person, on the downside, it's a costly process."

“Because you might leave fingerprints” A police protection officer in Manchester gets an odd response to a question he put to a school class: "Why shouldn’t you touch the oven door or the kettle?"

Figures show that just 25 per cent of the total costs in the lifecycle of a hotel are for the concept, design and construction, compared with 75 per cent for its operation – a ratio which is becoming increasingly familiar to FMs. It’s not surprising that the sector is increasingly looking at ways to improve the efficiency of its properties. For a new build property, there is an even bigger opportunity to maximise these savings by ensuring that energy efficiency is a key part of the hotel’s concept. This has been the approach for the latest addition to the Grange Group’s portfolio – an independent chain of luxury hotels in London. The new-build Grange Tower Bridge Hotel Design by Buchanan Architects has ensured that sustainable practices and environmental features, which include renewable solar and photovoltaic panels, highperformance glazing and lowenergy lighting, are part of the DNA of this luxury hotel. Moni Dhanjal from The Grange Tower Bridge Hotel, explains: “This hotel is about redefining the luxury property market for central London. We want our business and leisure guests to enjoy the highest levels of comfort in both the bedrooms and public areas. With a new-build project, there was a real opportunity to think about how we could marry that with a strong commitment to

creating an energy-efficient space. Siemens Building Technologies division was responsible for scoping and providing electrical infrastructure for the hotel and key elements of the building management system. The team has worked closely with Grange and other partners involved in the construction of the property to deliver the most energy efficient and flexible solutions, without compromising on a high-quality and aesthetically pleasing finish.

Comfortable savings In terms of managing the hotel environment, Grange used a building automation system from Siemens called Desigo. This helps to make savings, while balancing levels of comfort for guests. Nigel Galling, UK national account manager Hotels for Siemens, explains: “The flexibility of the system means that it can be tailored to suit the requirements of the building. It can be adapted to change or enhance the functionality in the future. Within each hotel bedroom, the room controls are integrated into the Desigo RX room automation systemso that g energy isn’t

wasted in unoccupied rooms. The two penthouse suites, which boast outstanding views across the Thames, also use the Desigo system to control lighting in the room.” BAS Building Automation Solutions Ltd installed the Desigo BAS, which resides upon an ethernet network using BACnet/IP open protocol for communication. A key element of the project was to ensure heating and cooling demands are controlled to ensure energy efficiency, particularly where waste heat from the condensed water loop was concerned and also to co-ordinate the borehole cooling and DHW sequences. In addition, the public areas and the Health Club utilise the eu.bac-certified Desigo RX room automation system for energyefficient control of fan-coil units and variable air volume (VAV) boxes to deliver the required temperatures for the hotel guests. At full capacity, the hotel could house 2000 delegates across numerous meeting rooms on several levels, so it’s clear why an effective and efficient power supply is vital.

“The flexibility of this system means that it can be tailored to suit the requirements of the building"

IN THE NEXT ISSUE OUT 19 APRIL

CYCLING AND THE WORKPLACE – ARE ORGANISATIONS ADAPTING QUICKLY TO GROWING TREND? /// CASE STUDY – MINTEL /// SERVICE CHARGES – THE OVERLAP BETWEEN LANDLORD AND TENANT /// INNOVATIONS IN CATERING /// BS EN 15221 /// THE LATEST NEWS, ANALYSIS AND COMMENT

42| 5 APRIL 2012| FM WORLD

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www.fm-world.co.uk

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14/2/12 15:14:30 10:20:06 22/3/12


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Assurity was always our middle name, now it’s our first. Our new name is a logical progression and reflects the breadth of services we now offer across all areas of health, safety and environmental workplace compliance. Our guiding principles remain the same, providing our customers with the re-assurance they value most. Independent expert knowledge and practical advice that’s delivered directly by a team of qualified dedicated consultants. Assurity Consulting t 0844 800 7705 e info@assurityconsulting.co.uk w assurityconsulting.co.uk

INDEPENDENT TRUSTED ADVICE FMW.05.04.12.044.indd 1

22/3/12 15:13:39

2012-04-05 FMW  

2012-04-05 FMW

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