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Top Trends in Facilities Management How Society, Demographics and Technology Are Changing the World of FM

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Top Trends in Facilities Management How Society, Demographics and Technology Are Changing the World of FM Top trends in facilities management How society, demographics and technology are changing the world of FM TOP TRENDS IN FACILITIES MANAGEMENT Contents Foreword: a world of opportunity 02 Top trends in FM: a summary 04 The changing face of outsourcing Outsourcing evolution 06 Integrated services 09 The new workplace The multi-generational workplace 10 Wellness 12 Collaboration 13 Digital disruption and the portfolio Managed workspace and co-working 14 Personalisation 16 Smart technology and artificial intelligence The smart workplace 18 Data-driven decision making 21 The rise of the robots 22 Conclusion 24 1 FOREWORD: A WORLD OF OPPORTUNITY Foreword: a world of opportunity Talking to clients I’m often struck by how fast the world of facilities management is changing. Global influences such as demographic and social changes are contributing to a shift in how the workplace is viewed and what people expect from it. Increasingly people want to choose Wellness in the workplace is one where and when they work and they look to response and is seen as a key way the workplace – wherever that may be – to of attracting and keeping key talent. deliver much more in the way of services and amenities. Every day it seems technology is In these days of disruption and pushing the boundaries of what real estate disintermediation there’s a constant can deliver for organisations. pressure on organisations to innovate and here too, the workplace has an All of which means that facilities important role to play, supporting management is transforming: from an asset, collaboration and boosting creativity. building and plant-centred activity to one which focuses on end-users and outcomes. CBRE’s clients often tell us that key data on the performance of their operations This report is intended to help FM is vital for their decision making. professionals get a clearer picture of the Accessing these insights is easier than latest developments. It examines ten key it ever was thanks to smart technology. trends transforming the world of work and With such a wealth of data available commercial real estate. the challenge for organisations is not how to get hold of information but to One such trend is the changing face be clear about exactly what it is they of outsourcing. This model of facilities want to measure and manage. management delivery has come a long way since it was first introduced and is These are just some of the issues now capable of providing value far explored, but what they point to is an beyond simple cost savings. exciting future for FM. They represent a huge opportunity for the profession A key role in to step into the light and demonstrate its strategic relevance to the C-Suite supporting performance as a driver of corporate performance. We also look at how forward-thinking organisations are using the workplace to I hope this report offers useful insights boost the performance of their people. and context. If you’d like to discuss any of the topics covered, please get As many choose to work for longer, in touch. the workplace increasingly has to accommodate three generations. So a big IAN ENTWISLE question for FM professionals is how best to CEO balance the needs of different age groups? Global Workplace Solutions, EMEA [email protected] 2 TOP TRENDS IN FACILITIES MANAGEMENT 3 TOP TRENDS IN FACILITIES MANAGEMENT: A SUMMARY Top trends in FM: a summary The new age of outsourcing 1. Outsourcing 2. Integrated evolution services By 2025 the global outsourced market in FM Progressive organisations are bringing advisory and transaction services will be worth $1 trillion. Outsourcing is services, facilities management and project services under one increasingly delivering more complex services. supplier and point of control. Impact Impact Benefits Greater opportunity for in-house teams to focus w Greater compliance, w An FM ‘partner’ who can on core activities and deliver strategic value. consistency and simplification of offer insights on how best processes and decision-making. to use CRE to support w Ever more sophisticated services are available. strategic goals. But this won’t be appropriate for all. It demands w A more transparent a level of maturity in the organisation and a view across the portfolio, w A potential boost in recognition that there’ll necessarily be more leading to more effective value to organisations supplier involvement in the business. risk management. of up to 45%. The new workplace 3. The multi-generational workplace By 2020, Gen Y will make up half of the Recommendations global workforce. People are also living and w Rather than focus on generational w Use leadership and change choosing to work for longer. Organisations preferences, organisations management to implement will have to balance the needs of different should consider ‘life-stage’ when new workplace strategies. generations of employees. developing workplace strategies. 4. 5. Wellness Collaboration 80% of employees say a company’s wellness Collaboration creates innovation. The number of occupiers who offering will be crucial in recruiting and retaining see better collaboration as a driver of workplace strategy has them within the next 10 years. increased by 30%. Impact Recommendation w Growing pressure on FM professionals to A variety of approaches is w innovative catering and provide wellness programmes that boost available and should be food services to promote productivity, attract talent and reduce sickness considered when developing employee interaction and absenteeism. workplace strategy including: w technology solutions that w Greater collaboration needed between FM and w building and workplace design support collaboration RE, HR and IT to deliver successful programmes. that support ‘collisions.’ across organisations. 4 TOP TRENDS IN FACILITIES MANAGEMENT Digital disruption and the portfolio 6. Managed 7. workspace and Personalisation co-working Technology is changing the way we shop and this will have Technology is fuelling the growth in interest in an impact on the retail portfolio. Online channels will play an managed workspace and co-working, 60% of increasingly dominant role in the customer journey. occupiers think serviced offices will play a role in meeting their accommodation needs over the next Impact and recommendations three years. w There will be a growing demand for warehouse logistics particularly larger, more complex environments. Recommendations w Property directors must look at their future portfolios w Use serviced workplaces for ‘swing space’ and consider how the balance will shift between physical and overflow whilst managing capital spend. and virtual space. w Foster innovation by placing people in w Different FM skill sets will be needed to support these co-working or incubator space. new environments. Smart technology and artificial intelligence 8. The smart workplace 25 billion connected things will be Impact on real estate and FM in use by 2020 up from 4.9 billion in w There is greater opportunity w Gain more insights to drive 2015. Smart buildings with lights, to enhance the end-user efficiency manage costs – visitor sensors, windows, HVAC units, doors experience with convenient, numbers, meeting room use etc. and CCTV integrated into a network tailored services. will be increasingly common. w Build smart buildings rather than trying to retro-fit. 9. Data driven 10. The rise of decision-making the robots By 2025 data analytics will be critical for addressing costs and performance. The market for robotics is small but growing. 75% of occupiers cite data as key to achieving strategic real estate goals. Sales of robots for professional cleaning units more than doubled in 2015. Benefits Benefits w Measure performance – property and people – and the links between them. w Manage labour costs on specific tasks and increase efficiency w Combine data and benchmarks to drive improvements for through automation. example in energy usage. w Perform jobs out-of-hours and w Gain a global picture of the portfolio and deliver real value. dangerous tasks like working at w Be selective in the data you to choose to use. height more safely. 5 THE NEW AGE OF OUTSOURCING The new age of outsourcing Outsourcing evolution Research and consulting organisation Frost & Sullivan predicts that by 2025 the global outsourced market in FM services will be worth $1 trillion, with bundled and integrated services accounting for 35 per cent of global revenues.1 While there’s nothing new about Control and efficiency There is much more that service providers outsourcing, it’s evolving. A few years can now support in the way of total ago cost management would have been For larger organisations with complex facilities management if clients are far- the main impetus behind outsourcing property portfolios, outsourcing sighted, argues Theresa Bell, Director, real estate services, these days it’s as can offer rigour and new ways to FM, CBRE, EMEA. much about being able to free up drive efficiency. “Some of our more in-house teams from the nuts and progressive clients are looking for us to Beyond the yellow line bolts of FM delivery, allowing them help them deliver an internal competitive to deliver strategic value. market place for their service offerings,” A good outsourced service provider explains Alex Bowen, CBRE, global will have the expertise to take on all “For many organisations it’s about project management office. “Their production maintenance within and making sure your business is lean internal real estate functions want a outside the yellow line. So for example, and not having too many ‘doers’ simple, easily centralised operation in a manufacturing context the outsourced in-house,” explains Mark Rudkins, that they can explain to their business. provider can not only look after the plant CBRE, FM Business Unit Director. In a But they also want the evidence of cost that generates compressed air – typically fluid environment, where businesses can competitiveness – for example consistent the responsibility of the service provider grow and shrink rapidly and often have standards when work is put out to – it can also take care of hose and a range of options when deciding where tender.
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