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Cultural Transformation: Developing an FM industry in the Caribbean Bruce Melizan, Executive Director at Interserve
Cultural Transformation:Developing an FM industry in the Caribbeanp g y
Bruce Melizan, Executive Director at Interserve
Our business
Competencies across the asset lifecycleCompetencies across the asset lifecycle
• Integrator of servicesIntegrator of services
— Multiple services at one point in time
— Sequential services across the asset lifecycle
L t t• Long-term partner
• 50,000 employees worldwide
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Global support services and construction £1 9 billion turnover
Construction Services Support Services
£1.9 billion turnover
Construction Services Support Services
Design, construction
£740.0m Provision of outsourced
specialist and
£1,093.6m
and maintenance
specialist and support services
Specialist Equipment Developments
Design, hire £139.9m
Management of £4.2m
g ,and sale of
access equipment
gInterserve’s PFI and strategic
activities
3
Our historyStarted in 1818
apprehending pirates on the Thames, and by 1900
d d i th i were dredging the river and transporting cargo.
Our historyIn 1940 helped evacuation p
at Dunkirk, removed debris from air raids and
cleared retaken ports
Our presentOur presentBy 2000 focus was on support services and construction, large
expertise in PFI and the government sector.
Our expertiseBuild schools, hospitals, roads, manage prisons, offices, industrial sites and shopping centres.
International expansionMoved into Europe,
Australia, Middle East and America
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Growing Support Services global expertise
United Kingdom Europeg
Middle East
p
United Kingdom
• 5,100 client sites • 29,000 employees • 1.9 million helpdesk calls
Europe
• 14 countries• 14 diplomatic missions• 224,861m2 of property
Middle East
• 70 years experience• 25,000 employees across
the group• Deliver 19 million meals• Secure over 3,600 buildings
• 450 sites• 24,000 helpdesk calls
• Joint ventures in UAE, Oman and Qatar
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A history of outsourcing in the UK
1945-1970’s: I i In-sourcing
Late 1970’s – 1990’s: Late 1970 s 1990 s: Privatisation and in-house buyouts
Mid 1990’s – 2000: Private Finance Investment
2000 – 2010:Economic challenge, overseas growth and market consolidation
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UK market size and segmentation (by value)
118.0
105.5
110.6114.0
116.0
110
115
120
In-houseTFM
92.4
97.8
101.7
95
100
105
£bn
80
85
90
2002 2003 2004 2005 2006 2007 2008 2009
Contracted-out
Source: KPMG – Facilities Management –2010
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Outsourcing is nearly as big as finance
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Perspectives across the globe
Europe
CaribbeanMiddle East
p
India
Caribbean
• Little quantifiable evidence
• Smaller size estates
Europe
• 5th largest economy• €655 billion in 2008, 49%
of this was outsourcedC b d t i
Middle East
• US $10 billion by 2012 –outsourced FM (TFM US $575 m)S ki b ildi
India
• FM estimated at USD 4.1 bn in 2010 and growing
• Around 1,000 firms• Heavy tourism and
industrial usage
• Cross border outsourcing• South East and Eastern
Europe emerging market
• Seeking building economies and hassle free maintenance
• 15-17% of the current market is organised
• 60% of services in-house
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Why do people outsource?
Standardise
Save time
Standardise service delivery
Improve productivity
Consolidate suppliers Risk transfer Reduce costs
Property management
Improve sustainability
Business continuity LegislationTechnology
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A different solution for all our clients…
Central Government Defence Retail Industrial
Local Authorities
Commercial
Health
Make up of the facilities market
Total facilities
management
5%
Integrated facilities management services15%
Single sourced 80%
Single sourced facilities services
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Contract transformation
Operational TeamBid Team
Management Responsibility
TRANSITION START
Operational TeamBid Team
TRANSITION END
Proposal Development
NegotiationMobilisation Period
Live Service
Transformation Continuous Improvement
Pre-mobilisationTransition Input Live Servicemobilisation
OPERATIONS INPUT
Transition Input
Contract Award C t t G LiContract Award
Contract SignatureContract Go-Live
Proposal Submission
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Mobilising your contract…
Prior to Go Live – Issue Detailed Plan
Full Asset Survey & Issue of PPM Schedule
Demobilisation of current suppliers & setup of Interserve suppliers
Recruitment and redundancy activities
Setting up of the Quality, Health & Safety and Environmental system
Setting up of HR, Training and procedural documentation
Setup of IT systems including; CAFM, Audit and T&A + reporting tools
Development of communications and governance + Monthly Reports
Issue Performance Management System + KPIs
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Measuring your service delivery
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Exciting opportunity opportunity
In summary
Myriad of drivers for
change
Growing market
A range of delivery options
A large industry
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p
But ultimately it’s about transformation
Reducing Delivering the g
costs the strategy
Engaging expertise
Meeting objectives
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THANK YOUTHANK YOU
