CASE STUDY VINCI FACILITIES FMJ.CO.UK VINCI FACILITIES CASE STUDY

are not sustainable,” he says. “I can cite CUSTOMER CULTURE various instances where they have been Around 60 per cent of the VINCI client base significantly below us or the market. It’s very is in the public sector, the rest within the di icult to deliver a service when you are private sector. However, explains Raikes, 25 per cent cheaper than the marketplace – it’s the culture not the sector that defines particularly in FM, where the majority of the relationships. Within the public sector, cost is people.” VINCI has won a number of contracts Raikes knows all about tight margins as based on value and not price. This speaks he came into FM from the construction volumes for the depth of understanding side, where margins were “pretty low between the company and its clients, such consistently”. He had worked in the as the £7 million contract with The Royal construction sector in the UK, China and Parks, covering 11 parks across London, Africa, and on returning to the UK decided including Hyde Park, Kensington Gardens he wanted a change. He joined Taylor and Richmond Park. VINCI has also built Woodrow Facilities Management (which a positive relationship with the Welsh later became VINCI Facilities) in 2001 on the Government, reflected in the renewal and BT Cellnet contract. He steadily worked his expansion of its FM service contract. way up through the ranks, and with VINCI’s Says Raikes: “We also work with a number acquisition of TW FM, was appointed MD of of retailers, so it’s not a vertical market VINCI Facilities in 2009. thing; it’s all about customer culture and He explains: “VINCI’s culture is very the individuals within those cultures. For similar to Taylor Woodrow, which is about example, we have worked continuously understanding your customer, doing a with Dixons for 11 and a half years, and good job for them and taking the long- earlier this year commenced another term view. When we set up the business in three-year contract. As a sector, retailers are VALUABLE 2009 we took a bet there would be enough aggressive, have very short-term memories customers to appreciate what we do, and and are tricky to work with, which is why that those we want to would remain with us you can put retail in the category of client as long as possible.” base where it is very di icult to demonstrate value for money. “Yet [with Dixons] we’ve found a retailer who absolutely understands value for money, they’re aggressive in the fact that they’ll go out to market and keep testing, Tony Raikes, Managing Director of VINCI Facilities, is feeling positive about the FM sector – and the reason, he and are an intelligent client because they LESSON understand what value is.” tells Sara Bean, is because VINCI clients understand its value proposition Raikes believes that FM isn’t just about managing an o ice environment. With t’s been a di icult year for some of the big- According to Tony Raikes, MD of VINCI Facilities, In a sector where the o cited ‘race to the bottom’ VINCI’s portfolio of clients ranging from Iname support services and construction whether his business shrinks or grows is immaterial: to win contracts is said to stifle innovation and commercial o ices to managing more companies, with the likes of Mitie, Carillion “One of the fundamentals about me and my threaten to lead to the commoditisation of facilities unusual facilities, such as Canal and River and Interserve all posting profit warnings. business compared to my competitors is that management, this is a rather liberating position for Trust properties (featured in the May issue), By contrast, some support services suppliers I’m under no pressure to grow; my boss couldn’t a managing director. For Raikes it means that VINCI he disagrees with the suggestion made in have thrived. VINCI, the parent group of VINCI care less if I shrink 10 per cent or grow 10 per cent Facilities is in the enviable position of being able The Stoddart Review that perhaps facilities Facilities, reports that revenue was up 5.1 per because it’s all about the bottom line. I don’t have to compete for contracts based on the quality of managers could be rebranded as workplace cent to €18.5 billion for the first half of the year, to go chasing work or chasing clients as there service, rather than o ering the lowest price. managers. and it has forecasted higher revenue and earnings are enough clients out there who will treat the “Mitie, Carillion and Interserve have been “O ices, retail, schools and hospitals are in 2017. Within VINCI Facilities, margins have contractor fairly and who understand the value aggressive competitors over a number of years and all workplaces, but the majority of people increased year-on-year over the last four years. proposition.” we have always taken the view that their strategies are not workers. If one of the problems

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[for FM] is that we’ve struggled with the recognition of FM as an industry, it’s not helpful to rip it up and start again. Why rebrand and rebadge the industry? The o ice workplace is a very narrow segment from a whole range of sectors, so changing now would only go to dilute that message.” He argues that FM just needs to continue to do what it does well, and over time the sector will get more and more recognition. He also believes there’s an increasing number of clients that understand the value that FM can bring, and that in the longer term that value will only be enhanced because of a growing ability to help clients get more out of their facilities – whether it’s improved productivity in the workplace, better patient care in healthcare, or enhanced retail experience.

DIGITAL FUTURE Raikes agrees with the growing acceptance among those in the sector of the role of technology and the digital agenda, from boroughs. about this? Because not everyone who is the way FM interrogates data to how social Explains Raikes: “We created our business good at their job is white, middle-aged and media can help to measure performance. strategy seven years ago, which are all bald like me. If we are open for business for “How we collect data and how we combine aligned to a common purpose. Yes, we want every person from every walk of life, we’ll that from di erent sources will enable us to make some money and the way to do have the biggest, deepest talent pool to pick to make better decisions, or give better that is to deliver a great client service for from.” business cases to our clients to do things which we need great people. To have great He’s also passionate about addressing in a di erent way,” he says. “We are people we need to attract and retain great mental ill-health in the workplace, and custodians of a lot of built-in environment people, and so we have to do a number this year’s VINCI Facilities health and data, but if we become the custodians of of things. With a social project such safety week will concentrate on employee or user satisfaction data and start as the Peabody, we are not only the health aspects of the term. combining those two things, we’ll enhance helping people but creating “We want people to feel OK management information.” an environment where about discussing mental One of the innovations VINCI is working people are proud to “We are custodians of a lot health to help take the on is creating a platform called MYMI, work for us. These are stigma away. It really which draws information from a range not discrete activities of built-in environment data, but shouldn’t be a problem of systems to produce a platform for the – we try and create in an organisation for client who then has access to a complete an environment if we become the custodians of people to talk about picture of their entire portfolio. Raikes also where our teams employee or user satisfaction data mental health. One predicts that as social media becomes more carry out societal of our senior team prevalent, user groups will use their voices work in the areas or and start combining those two is going through a via social media to give FMs vital feedback, regions in which they gender transition, and which they can present back to a building are working.” things, we’ll enhance I hope their experience owner to say ‘if you apply this you will get management information.” will convince anyone better outcomes’. “All this means we’re in an within the business to be expanding role where customers are more DIVERSITY AGENDA themselves in whatever form understanding of the value of their asset Raikes also feels strongly that might be.” and how to sweat that asset,” he says. about increasing diversity within VINCI is also working hard to The societal impact of FM has grown in the business, and led VINCI Facilities’ ensure it is spending as much money importance over the past few years, and fairness, inclusion and respect agenda back on developing its people as on paying the RICS has reflected this in its latest set of in 2009 to pursue investing in diversity as an Apprenticeship Levy, with the consequences strategic FM case studies, which focus on accreditation. A couple of years ago it was being that “I’ll have better trained, better the many ways facilities management decided to move to the next level and take developed people in one, two or three years’ can contribute to communities. VINCI is a more consistent view across the whole time. Brilliant.” featured for its work with stakeholders to business. A er putting 70 senior VINCI He concludes: “Over the years VINCI has improve the learning and employment people through a course lasting about 15 got better and more robust, with a cadre of skills of young people in east London which months, the firm earned an accreditation for people who have been with us for a while. developed from ‘Reading from the start’ – a Leaders in Diversity (LiD). We’ve also brought people in at senior or joint programme with the Peabody Group Says Raikes: “Understanding diversity is middle management level who bring in to help tackle the issue of illiteracy and such an important issue, from a moral and expertise, which is all helping us build a poor educational support in three London business sense. Why am I so passionate strong team for the future.”

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