Cost Centre to Profit Centrefmcc-workplace.com/httpdocs/Slides/20150402_IFMA-FMCC... · 2016-01-02 · Cost Centre to Profit Centre. Leadership & Business Management for Facility

Cost Centre to Profit CentreLeadership & Business Management for Facility Managers

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Today’s PresentationModerator: Mary Ressler, IFMA Components Manager

Presentation Title: Cost Centre to Profit CentreLeadership & Business Management for Facility Managers

Presenter(s):Geoff Williams, Nicole LobbCorporate Event Centre at CHSI

Presentation Logistics• Polls will be used throughout the webinar

• Q&A at the end of the presentation

• Quick survey at the conclusion of the Webinar

• PowerPoint & Recorded Webinar will be available online via FMCC’s Website (fmcc.ifma.org)

• Your Participation is Greatly Appreciated!

Presenter BioNicole Lobb is the Client Services & Facility Manager at Centre for Health & Safety Innovation. In her role, she is responsible for the operations and maintenance of CHSI, along with the fostering and development of tenant relationships.

As a member of IFMA Toronto’s executive committee, Nicole is aware of key industry trends and issues, and provides FMs with solutions that are informed, innovative and practical.

Presenter BioGeoff Williams is the General Manager at Centre for Health & Safety Innovation in Mississauga, Ontario, Canada, where he is responsible for day-to-day operations, business development and corporate strategy development.

Geoff is on the IFMA board of directors, is the past president and current secretary of the I.T. Council of IFMA, and the past president of the Toronto Chapter of IFMA.

Agenda/Outline• Review of common revenue opportunities for FM’s

• Integrating the Strategic Plan into FM

• Translating FM skills into those of a Small Business Manager

• Communicating with the Senior Executives

• Case Study: Centre for Health & Safety Innovation

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Präsentationsnotizen

Geoff

Bottom Line

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Geoff Purpose of this presentation is to assist FM’s in learning some of the tools to operate as a Small Business Manager. Then, CHSI will show how we did the same in a case study.

Revenue Opportunities for FM

Opportunities

• Leasing Roof Space (solar/cellular)• Parking• Retail Space• Food Service

“The Product”• Customer Service• Budgets• Marketing

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Geoff Drive-in Movie theatre story Spend less time on this slide

FM as a Profit Centre

How well do you understand your corporate strategic plan?

How does the FM strategy fit into the strategic plan?

Can you demonstrate FM successes against corporate goals?

What can the FM do for the bottom line?

Strategy

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Geoff

Becoming a Small Business Manager (SBM):How do our skills stack up?

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The set of skills about to be outlined allow the FM to build to a point where they may comfortably engage the C-Suite.

FM Skills: Product Understanding• What is your product/service?

• How does the product fit within the strategic plan?

• How does your product benefit others?

• What does success look like for your product?

• Has your product become a natural extension of your business?

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Geoff: FMs are weak in this department. We get distracted on the tasks and completing them, that we forget what the actions and the end result look to our customer. From the outside looking in, how do we look to the client? What is my product to someone else, not, what is my product to me? And then align it to the strategic plan. Product as a natural extension: CHSI’s difficulty in launching the Community Event Series. The event coordinator didn’t see the opportunity and correlation between Community Events, CHSI and CEC. This had a direct impact on how they performed the role.

FM Skills: Marketing• Marketing is a weak link for FM.

• How do you translate product understanding into marketing?

• Who is your target market?

• What will drive them towards your product?

• What strategies can you employ to improve your business?

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Geoff: From projections – see the busy/slow times. Build marketing campaigns around developing slow times of the year (if it makes sense) – Starbucks Treat receipt in the summer months

FM Skills: Customer Service• FM’s should already be focused on customer service.

We understand:• The business we support is our customer• Building occupants are our customers

• What are our limitations?

• What are the steps to becoming a SBM?• Understand the customer of your business

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Geoff:�The devil is in the details: An FM’s responsibility is to understand the level of care that the services provided support so that the impact and benefit is coordinated with the occupants, guests and business goals. Could be a gap in customer service if an FM doesn’t understand these elements. Full experience of the interaction between the people that visit the facility and those that occupy. Understanding the business of the organization we support directly impacts how we run the facility and the occupant experience as well. Law firm versus hospital - > O&M

FM Skills: Budgets• FMs are strong on managing expenses

• What are our limitations?

• What are the steps to becoming a SBM?• Learn how to budget for revenues

Vorführender


Geoff: Finance is one of the areas that FM’s test lowest in the CFM prep exams. Add projection chart for example (develop trends from those types of exercises). Slow versus busy times.

Revenue Projections

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Geoff

Engaging Senior Leadership• Be involved in strategic planning• Learn the players, their drivers and

how they prefer to communicate• What are their hot buttons?• Who are your allies?• Develop a strong relationship• Lobby before the “Big Presentation”• Present options grounded to the

business, not just the facility

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Fostering a long-term relationship Starting with the Strategic Plan – FM needs to communicate the following to senior leadership. Facility costs are 2nd to staffing, building is integral to operating the business and staff morale is linked to the building as well as people.

Skills Mastered: Enter Senior Leadership

The FM as a Small Business Manager (SBM) can:• Develop a strategy for operating and developing the business.• Effectively articulate the product to all stakeholders.• Develop an effective marketing plan.• Demonstrate how the customers’ needs are being met.• Support the corporate bottom line.

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Geoff:�One of the first things that need to happen is a business plan. Speak their language: get an understanding of how they see things (numbers, graphs, moral, emotion). If the case, demonstrate how the customer’s needs currently aren’t being met and how you would like to fix that. Support the corporation’s bottom line from a balanced score card approach – it shouldn’t all be about revenue.

Case Study:Corporate Event Centre at the

Centre for Health & Safety Innovation

Corporate Objective:“Create a unique meeting place that advances and promotes the Mission of CHSI and supports its partners & stakeholders.”

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Nicole: Facility centric business. Everything we do is tied back to our corporate objective built upon our mission statement.

Who is CHSI?

Acting as:1. Tenant2. Landlord & Property Manager3. Facility Manager4. Corporate Event Centre (CEC)5. Community Events

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Nicole: tenant: this is our offices 2 provincial H&S associations, a Tech Company, a Paramedical Clinic and a Fortune 500 company Some tenants are paying for a higher level of facility management than others 1/3 of our building is CEC, utilized by tenants and the public. This is a lot about how we tie back to the mission statement – inspire prevention in the community.

CHSI Management TeamDevelop a team that aligns to service levels and matches your business size:

General Manager: • Formally “Facilities Director”• Manages the business

Client Services & Facility Manager: • Formally “Facility Manager”• Manages the building• Maintains the relationship with the internal client (tenant)

Guest Services Manager:• Newly created role to match with the growth of Corporate Event Centre (CEC)• Focuses on marketing the business and staying competitive• Maintains the relationship with CEC clients

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Nicole: When operating a Small business you need to consider how to align your services to match your business size. Scalable – Cottage industry to mature business. The change in roles was a shift and focus from a non-customer related scenario to a all-inclusive business oriented customer service strategy. Restructured to have the above roles: GM = FD, CSFM = FM, GSM = new

CHSI Organization ChartBoard of Directors

Executive Operations Group General Manager

Finance & Audit

Health & Safety

Committee

Reservations Coordinator

Guest Services

Coordinator

Marketing Comm. Events

Guest Services Manager

Mail Room(Ricoh)

Food Service (Dana)

Janitorial (GDI)Incl. Day Porter

Client Services & Facility Manager

Accounting Human Resources

Information Technology

Maintenance Contracts

Tenant Liaison

Committee

CSR Team

Governance CommitteeGeneral Manager

Guest Services ManagerClient Services & Facility

Manager

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Nicole: As a result of changes that were made, the new org chart divides the responsibilities between clients and operations within management roles. White – Governance – Strategic oversight Green – FTE Blue – Contracted Staff (CHSI Employees) Orange - Business to Business contracts that include FTEs Purple - Service Level Agreements

Why does this work?Focus on Strategic Marketing for the business

Mission:“To be a unique meeting place for applied learning and innovation and to inspire prevention in the Community.”

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Nicole: Mission Statement: is the root of how we define our external facing products: CEC, Community Events Speak to Unique Meeting Place – CEC, Inspire Prevention… - Community Events Strategically market our business around these two elements.

CHSI’s Customer vs. CHSI’s ProductAligning the product to the customer

• Provide facility support to each different business (Paramedical Clinic vs. Health & Safety Associations)

Resident Clients(Landlord Role)

• Being flexible for multiple business types, but target corporate (plug & play corporate meeting environment)

Corporate Event Centre Clients

(CEC Role)

• Providing health, safety and wellness resources to the community

Community Event Clients(Community Role)

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Nicole Community Events is a new product that is small and still developing.

Aligning the productResident Clients

Understanding Unique Businesses Tenant Liaison Committee Health & Safety Committee

Customer Surveys Guest Services Relationships

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CHSI was purpose built for HSAs and some of CHSI’s operations have been aligned to their needs as a result.

Aligning the productCorporate Event Centre Clients

Competitive Pricing for Rooms Free Services Location, location, location

Plug & Play Not a ballroom! On site catering, no gratuities

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Free services = business centre (printing, work stations), wifi, parking

Aligning the productCommunity Event Clients

Understand Community Needs Satisfying Multiple Market Segments

Timing of Events Industry Partners

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Timing = time of the year, day of the week, time of the day

FinanceKey Initiatives

• Managing the expense• Typical facility management + being creativeResident Clients

• Invested in re-branding• Invested in targeted marketing and collateral• Re-evaluated pricing strategy

Corporate Event Centre Clients

• Focusing on building a brand• Defining market and developing collateral• Building value to drive sponsorship

Community Event Clients

• Invested in the ability to serve our customers in the cafeteria• Re-engaged the SLA to ensure it was ran as a business• Adjusted the profit sharing scenario

Food Services

Vorführender


Combined our past knowledge of revenue trends with the marketing plan and begin to project revenues. The ideal is project conservative revenues, as it is far easier to control expenses than it is to force revenue creation. Cafeteria: (signage, functionality.)

FinanceRevenue Results:

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CEC Revenue Generation Catering Revenue Combined our past knowledge of revenue trends with the marketing plan and begin to project revenues. The ideal is project conservative revenues, as it is far easier to control expenses than it is to force revenue creation.

Engaging Senior LeadershipCHSI as a SBM has:• Developed a strategy for operating

and growing our business• Effectively articulated our products to

our stakeholders• Developed a strategic marketing plan• Demonstrated value to our customers• Dramatically improved the corporate

bottom line

Q&ANicole [email protected] [email protected]

Don’t Forget to Register for the next webinars:

• Thursday, April 16th, 2015 @ 1:00-2:00 PM ESTCommon Live Webinar by IFMA FMCC & IFMA ITC:“The Future of FM Technology, From the U.S. to Europe”Register today @ https://www4.gotomeeting.com/register/520714287

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Joachim Hohmann, CFM, Ph.D., MSc, Managing Partner, Consultants Circle

https://www4.gotomeeting.com/register/520714287

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Documents

Cost Centre to Profit Centrefmcc-workplace.com/httpdocs/Slides/20150402_IFMA-FMCC... · 2016-01-02 · Cost Centre to Profit Centre. Leadership & Business Management for Facility