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CRE&FM at The Crossroads? The role of intelligence and cooperation in the future of CRE&FM [email protected] Global Head of Innovation, Zurich CRE&FM 00 44 7875 887 877

Zurich - FM at the crossroads

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Page 1: Zurich - FM at the crossroads

CRE&FM at The Crossroads?The role of intelligence and cooperation in the future of CRE&FM

John.H

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Five levers for innovating today’s CRE&FM model:

Consumer centric service conceptsIntegrated service models based on Tier One (or Tier Zero) partnerships A new role supporting organisational culture changeA systemic approach to the world of workEvidence-based service optimisation

Three questions:

How do we apply them to innovate CRE&FM?What do we need to stop doing, start doing differently?How do we do this as an industry?

John.H

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Page 3: Zurich - FM at the crossroads

John.H

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• Exactly what ‘Intelligence’ is required by the CRE&FM Client function now that outsourcing has become so sophisticated?

• Map the know-how and innovativeness of our service provider industry.

• Develop and test our own views• Plan our priorities and research

investments• Set a high innovation threshold for

renegotiating our service contracts• Show the service provider industry we

were a client truly-committed to innovation and innovativeness

3 crowdsourcing events. Why?

Page 4: Zurich - FM at the crossroads

How we used this

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• Identify the most advanced and innovative practices, thinking and thinkers in our service industry.

• Challenge this leading edge of the industry to respond to some innovative ideas (which helped test and stretch our thinking too).

• We published our analyses of the findings as our ”disruptive thinking” series, in part as a payback to everyone who joined in the crowdsourcing events, also to cement our position as a client who is “open for innovation”

• We then used this to set the threshold for innovation from our service providers during contract (re)negotiations:

= a structured programme of operational and strategic innovation, ongoing innovation debate

= an innovative re-procurement with the most forward thinking service providers in the industry

= a departure point for co-innovating tomorrow’s service model with these service providersStarted by horizon scanning (24 topics), focused

down to 1 deep discussion (Jan 2012 – Oct 2013)..

John.H

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CRE&FM still needs to re-centre on

supporting the effectiveness of people and the productivity of

business?

CRE&FM still waiting for its

advances in strategic capability,

also change management

capability?

CRE&FM still needs to truly integrate end services, not just systems and providers?

CRE&FM still needs crucial disruptive

innovations in procurement,

partnering and performance

management?

CRE&FM still needs its revolution in KM, R&D, and talent management?

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So what did we discover?

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Why? The legacy CRE&FM concept is broken

• New ways of working (IT, 3rd spaces, flexibility and the dispersed asynchronous organisations)

• New attitudes to what work is, and new models of competitiveness for 21st Century organisations– Communication, collaboration and connection are increasingly crucial to

business ‘edge’– More work (and more teams) have become asynchronous, disaggregated

and globalised– The corporate workplace is increasingly a mediator for more social,

interactive modes of work, but the corporate workplace is only one of many settings

– Speed and continuous innovation are becoming more important competitive differentiators for more businesses

– Individuals play a bigger part in the success of the information business, its people and their relationships who make the difference

– Workplaces, work and people behave as a complex co-adaptive system – level of control matters

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John.H

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WHY? A contracting mindset continues in an era of service

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• CRE&FM has only innovated tactically to sustain its existing model • A self-referential system that has pushed both client & provider into a

corner– Cost-based thinking endures in CRE&FM & business – victims of

management accounting?– Commoditisation-based offerings and adversarial contracting and

governance remit = vicious circle?– Chronic disconnect between management, infrastructure, culture and

productivity – Eroded domain specialisms, sparse R&D, poor talent management – Global/ local distinctions missed in global CRE&FM models?– An asymmetry of capabilities and an 85% industry, with innovation

happening outside of the contract?– And a “Big 6” model emerging – what impact will this have on diversity,

differentiation and innovation?

Page 8: Zurich - FM at the crossroads

Why? A need to think beyond buildings

• Workplace-centred CRE&FM models have replaced building-centred models• But what people and 21st Century businesses need are work-centred models• And people centred services that work on and off the corporate footprint• Because 21st Century work challenges legacy CRE&FM thinking:

– Holistic and synthetic thinking needs to replace linear and deterministic approach– Complexity between people, work, organisation and workplace still being ignored– Wrong-shaped portfolios of workplaces designed around utilisation efficiency– Legacy manufacturing era concepts instead of a networking model of work– Metrics that conflict with what drives and differentiates 21st century businesses

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Joh

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The concept of The Intelligent Client Role

• Holism (beyond zero-sum, beyond buildings, and beyond the corporate footprint)• Tolerance of failure and innovation• Comfortable with complexity (work + people + workplaces = complex adaptive system)• Coherent, principled and proportionate• Genuine leadership (in the face of business catching, and management accounting blockers)• Ability to evolve ourselves, and nurture co-innovation with service providers (2 way)• Cooperative, and an emphasis on achieving synergy

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Joh

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The concept of The Intelligent Cooperative

• Beyond zero sum, needs both client and provider(s) to partner around ideas such as:• Intermediation roles, an integrative perspective and attention to outcomes• An explicit focus on value, and comfort with proportionality and balancing priorities• Comfort with risk, experimentation and genuine innovation• Proactive, recognise and respect expertise • Trustworthiness and tolerant (this needs to operate at all levels in all teams)• Long view – this is not just a goal, or even a journey, but a new way of travelling • Willingness and ability to evolve on-the-wing

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Evidence-based service optimisation

Integrated service models based on Tier

1 partnerships

Consumer centric service concepts

A new role supporting organisational culture

change

A systemic approach to the world of work

Joh

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uk.z

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But where and how to start?

Page 12: Zurich - FM at the crossroads

Five levers for innovating today’s CRE&FM model:

Consumer centric service conceptsIntegrated service models based on Tier One (or Tier Zero) partnershipsA new role supporting organisational culture changeA systemic approach to the world of workEvidence-based service optimisation

Three questions:

How do we apply them to innovate CRE&FM?What do we need to stop doing, start doing differently?How do we do this as an industry?

Joh

n.H

inks@

uk.z

uri

ch

.co G

lob

al H

ead

of

Inn

ovati

on

, Z

uri

ch

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Page 13: Zurich - FM at the crossroads

This presentation has been prepared by the author and the opinions expressed therein are those of author at the date of writing and are subject to change without notice.

This publication has been produced solely for informational purposes. The analysis contained and opinions expressed herein are based on numerous assumptions. Different assumptions could result in materially different conclusions. All information contained in this publication have been compiled and obtained from sources believed to be reliable and credible but no representation or warranty, express or implied, is made by the author or by Zurich Insurance Group Ltd or any of its subsidiaries (the ‘Group’) as to their accuracy or completeness. This publication is not intended to be legal, underwriting, financial, investment or any other type of professional advice. Persons requiring advice should consult an independent adviser. The Group disclaims any and all liability whatsoever resulting from the use of or reliance upon this publication. Certain statements in this publication are forward-looking statements, including, but not limited to, statements that are predictions of or indicate future events, trends, plans, developments or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, developments and plans and objectives to differ materially from those expressed or implied in the forward-looking statements.

The subject matter of this publication is also not tied to any specific insurance product nor will it ensure coverage under any insurance policy.

This publication may not be reproduced either in whole, or in part, without prior written permission of Zurich Insurance Group Ltd, Mythenquai 2, 8002 Zurich, Switzerland. Zurich Insurance Group Ltd expressly prohibits the distribution of this publication to third parties for any reason. Neither Zurich Insurance Group Ltd nor any of its subsidiaries accept liability for any loss arising from the use or distribution of this presentation. This publication is for distribution only under such circumstances as may be permitted by applicable law and regulations. This publication does not constitute an offer or an invitation for the sale or purchase of securities in any jurisdiction.

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