FM CHALLENGES; A Client Perspective FM CHALLENGES; A Client Perspective

Creating a Model for Cross-Boarder ScopeCreating a Model for Cross-Boarder Scope

Dubai – November 2007

Adil Abdalla, MBIFM, IFMA, PMI, ULI, APMGAdil Abdalla, MBIFM, IFMA, PMI, ULI, APMG

1

Business Framework

Managing Expectations

Lessons Learned

2

Dubai FM 2007

Inward InvestmentSkills Shortage

Massive Real Estate DevelopmentLegislation Support

Maturity of investment CycleAwareness of Corporate Liabilities

Sustainability of Service

Inward InvestmentSkills Shortage

Massive Real Estate DevelopmentLegislation Support

Maturity of investment CycleAwareness of Corporate Liabilities

Sustainability of Service

Annually new 50,000 Residential Units5 billions ft2 new spaces 2007/2009

Currently Customers seeking QualityCurrent demand Sq ft 600,000,000

Current main Player Sq ft 200,000,000Current minor Players Sq ft 10,000,000

Annually new 50,000 Residential Units5 billions ft2 new spaces 2007/2009

Currently Customers seeking QualityCurrent demand Sq ft 600,000,000

Current main Player Sq ft 200,000,000Current minor Players Sq ft 10,000,000

AED 2.5 billions FM Market 2005Currently; NO I-FM Service Providers

Global Average Rate ft2/AED 17

Rates for Residential AED/Sq ft 9-12Rates for Office AED/Sq ft 12-22Rates for Retail AED/Sq ft 22-35

AED 2.5 billions FM Market 2005Currently; NO I-FM Service Providers

Global Average Rate ft2/AED 17

Rates for Residential AED/Sq ft 9-12Rates for Office AED/Sq ft 12-22Rates for Retail AED/Sq ft 22-35

FM Expo is a MENA annual venueGrowing FMBG

Eight Main PlayersMany small playersGrowing Int’l Joint-Venturing

No I-FM /TFM till end of 2007

FM Expo is a MENA annual venueGrowing FMBG

Eight Main PlayersMany small playersGrowing Int’l Joint-Venturing

No I-FM /TFM till end of 2007

DerivativesDerivatives ValueValue

DemandDemand ProgressProgress3

I-FM Portfolio

Property ManagementProperty Management

Renter-Oriented

Renter-Oriented

Owner-Oriented

Owner-Oriented

Service forRental Market

Service forRental Market Taxes

Taxes

ProcurementCoordination

ProcurementCoordination Sales

Promotion

SalesPromotion

CustomerCare

CustomerCare Accounting

Accounting

SpacePlanning/Mgt

SpacePlanning/Mgt Legal

Service

LegalService

ProcessImprovement

ProcessImprovement Procurement

Procurement

InvoicingInvoicing

ContractManagement

ContractManagement Insurance

Insurance

Building Operations & MaintenanceBuilding Operations & Maintenance

UtilitiesUtilities Technical

Operations

TechnicalOperations

Oil/GasOil/Gas

HVACHVAC

PotableWater

PotableWater Automated

Service

AutomatedService

Drainage &Sewage

Drainage &Sewage Environmental

management

Environmentalmanagement

IrrigationWater

IrrigationWater Energy

Economization

EnergyEconomization

StormDrain

StormDrain Technical

Consultancy

TechnicalConsultancy

Compliance& Auditing

Compliance& Auditing

EnergyEnergy IT &

Telecom

IT &Telecom

MaintenanceMaintenance

PlannedMaintenance

PlannedMaintenance

RunningConstruction

RunningConstruction

FaçadeMaintenance

FaçadeMaintenance

CorrectiveActions

CorrectiveActions

ModernizationModernization

Ancillary &Support ServiceAncillary &Support Service

FacilitiesService

FacilitiesService Security

Security

Hospitality(F&B)

Hospitality(F&B) Access

Control

AccessControl

JanitorService

JanitorService Safety

Service

SafetyService

WasteHandling

WasteHandling Fire

Protection

FireProtection

Movers &Storage

Movers &Storage Parking

Operations

ParkingOperations

Gardner &Landscape

Gardner &Landscape Shredding

Management

ShreddingManagement

LaundryLaundry

IntelligenceIntelligence

CleaningCleaning Boundary

Protection

BoundaryProtection

CoreBusinessSupport

CoreBusinessSupport

Reception &Switchboard

Reception &Switchboard

OfficeSupplies

OfficeSupplies

Copy/PrintCopy/Print

SecretarySecretary

ArchiveAdmin

ArchiveAdmin

Call CenterCall Center

Mail DeliveryHandling

Mail DeliveryHandling

ReportingReporting Events

Management

EventsManagement Control

Management

ControlManagement Service Desk

Service Desk

4

RevenuesLandlord

Premises Leasing

EXECUTION

Contracts

Regulator

Handover

Design Package

Construction Package

OPERATIONS

CR Mgt

FM Packages

Regulator

Renovation

Contracts

Facilities Management Service

Project Management Service

FM Synergy

5

Business Platform

SoftService

TechnicalService

Safety& Security

Reception OpsCall centers MgtPest Control Ops

Housekeeping OpsLandscaping Ops

Alarm System MgtAccessibility Mgt

Health MgtSafety Ops

Security Ops

Space MgtPlant OpsBMS OpsICT Mgt

Refurbishment Mgt

Regular Planned Static

Spot Checking Corrections Mobility

Others

Events MgtHospitality Ops

Energy MgtEnvironmental Mgt

Standard

Quick Fix

CAX CAXCAXCAX

PAX PAXPAXPAX

6

Hot Spots

ServiceProvider

ServiceProvider

The Client

Expectations

Info Flow

Skepticism

Scope Management

Reporting System

Quality Management

Value for Money

7

Careful & Managed Information Flow

ActiveCustomer

Involvement

Work Closely with the Client’s Organization

Clarity of Scope

Statement

Reliability ofCommunication

System

Quickly Correcting Mistakes

Extremely Responsive to

Customer’s Concerns

HappyCustomer

UnhappyCustomer

Team Speaks One Voice

Speak Customer’s Language

Acquire Glimpses of Effort

Avoiding Surprises

Turn Expectations into Data

Client Satisfaction

8

FM Interfacing

ClientClient

FM ProviderFM Provider

LandlordLandlord

CR MgtCR Mgt

Call CenterCall Center

PlanningPlanning

OperationsOperations

OperationsOperations

SatisfactionSatisfaction

KPIKPI

CAXCAX

Quality ManualQuality Manual

9

IFMA Roadmap

Support Business Culture & BrandSupport Business Culture & BrandLinking FM to Business StrategyLinking FM to Business Strategy

Cost of SustainabilityCost of Sustainability

Broadening Diversity of HRBroadening Diversity of HR

Emergency PreparednessEmergency Preparedness

Role of Change ManagementRole of Change Management

Emerging TechnologyEmerging Technology

Globalization of Business Globalization of Business

Managing Aging BuildingsManaging Aging Buildings

Valued Risk Management ApplicationsValued Risk Management Applications

Understand & Support ClientUnderstand & Support Client

Advocate Vision and MissionAdvocate Vision and Mission

Keep Abreast of Changing TechnologyKeep Abreast of Changing Technology

Inevitable Cross-Boarders UtilizationInevitable Cross-Boarders Utilization

Development of Careers and PoolsDevelopment of Careers and Pools

Mature Investing ModelingMature Investing Modeling

10

BIFM Roadmap

Retention of People & SkillsRetention of People & Skills

Rethinking FMRethinking FM

ProfessionalismProfessionalism

Quality of ServiceQuality of Service

InnovationInnovation

Inevitable SustainabilityInevitable Sustainability

Du DiligenceDu Diligence

Cost ReductionCost Reduction

Building Design & Space ManagementBuilding Design & Space Management

Enhance Environment, Health & SafetyEnhance Environment, Health & Safety

Linkage with Corporate Real EstateLinkage with Corporate Real Estate

Compliance with RegulationsCompliance with Regulations

Longer & Flexible ContractsLonger & Flexible Contracts

Government Policies & InitiativesGovernment Policies & Initiatives

11

Rethinking FM

Competencies

Focus on Commercial Developments that require new standards of service to meet International Codes

Competencies

Focus on Commercial Developments that require new standards of service to meet International Codes

Method

Flexible Operations allow effective PAX and timely

CAX, built by 6σ models and developed by CRM

Method

Flexible Operations allow effective PAX and timely

CAX, built by 6σ models and developed by CRM

Analysis & Benchmarking

Establish service models that satisfy the changed culture

and business demands

Analysis & Benchmarking

Establish service models that satisfy the changed culture

and business demands

International Knowledge

Emphasis on scientific approaches, in parallel to best practices modeling

International Knowledge

Emphasis on scientific approaches, in parallel to best practices modeling

IntegratedFacilities

Management

IntegratedFacilities

Management

12

New Business Chain

Planning

Programming

Budgeting

Occupation

CAX

PAX

Evaluation

Disposal

Operations

MarketingSales

Lease Contracts

Invoicing

CRM

Projects

ProgramConcept

Design

Construction

Plan

Planning Contractual EngagementOperations &Maintenance Disposition

Opportunity

13

Developer

Facility Manager

Project Manager

Construction Team

Lease Operations

Tenancy Operations

Tenant/Client

Developer

Facility Manager

Project Manager

Construction Team

Lease Operations

Tenancy Operations

Tenant/Client

Developer

Facility Manager

Project Manager

Construction Team

Lease Operations

Tenancy Operations

Tenant/Client

20

00

19

90

New FM Role

14

Generic Chart

RegularInspections

RegularInspections

Preventive Actions

Preventive Actions

Baselines(Quality Manual)

Baselines(Quality Manual)

SpecificationsSpecifications

ConfigurationsConfigurations

LiabilitiesLiabilities

ApprovalApproval

Close-outClose-out

SLA SLA

Records &Planning

Records &Planning

Certify Conformity

Certify Conformity

BusinessOperations

BusinessOperations

ComplaintsComplaints

CorrectiveActions

CorrectiveActions

ApprovalApproval

Close-outClose-out

Records &Planning

Records &Planning

Certify Conformity

Certify Conformity

Call C

en

tre

Call C

en

tre

15

New Engagement

ClientClient

OperationsOperations

SatisfactionSatisfaction

CAXCAX

KPIKPI

Quality ManualQuality Manual

FM Provider

Landlord

Joint Ops TeamJoint Ops Team

OperationsOperations

PlanningPlanning

Call CenterCall Center

CR MgtCR Mgt

16

New Parameters

ScopeScope

CostCost

PerformancePerformance

TimeTime

Consolidate Business Plans & SLAs with Clarity and Constructability in lieu with Market Trends

Consolidate Business Plans & SLAs with Clarity and Constructability in lieu with Market Trends

Delivery Solutions that Enable Timely Implementations and Responses for both PAX & CAX

Delivery Solutions that Enable Timely Implementations and Responses for both PAX & CAX

Innovative Management of Expenditures and Changes in Corporate Environment, to advocate Value for Money

Innovative Management of Expenditures and Changes in Corporate Environment, to advocate Value for Money

Customer Driven Service based on Motivated and Satisfied Stakeholders

Customer Driven Service based on Motivated and Satisfied Stakeholders

Mature Quality Measures Synchronize Tasks & Processes, based on Statistical Approaches

Mature Quality Measures Synchronize Tasks & Processes, based on Statistical Approaches

Automated and Error-Free Information System supports Faster & Efficient Decision Making

Automated and Error-Free Information System supports Faster & Efficient Decision Making

17

Communications

Template

Parties Reference Auditability

Planning Performance Progress

Request Instruction Report

Acceptance

Change

Information

Actions

Change

Irregular

Weekly

Monthly

Correlation Compliance Completion

Authorization Monitoring Quality

The Design of the Templates should adequately meet the

Products of the pre-determined Technology for

both Processing & Monitoring

Purpose

Subject

Form

18

1:5:200

Construction Cost

Construction Cost

Operating Cost

Operating Cost

Building Life Cycle

Building Life Cycle

Rationale Quality Strategies

ROI &Business Modeling

Expectations &Customer Modeling

GovernanceUrban Maturity

19

New CSFs

Call CentreCall Centre IDLE !IDLE ! Quality Centre

Quality Centre

CAXCAX IDLE !IDLE ! Proactive Actions

Proactive Actions

AuditAudit IDLE !IDLE ! MeasurableQuality

MeasurableQuality

Company Level

Client Level

20

Thank You

21