Collaboration in FM – Another view

David WrightDirector of Property, Facilities and ProcurementOctober 2015 London

Quick Introduction to David Wright

• Represented ‘The Occupier’ for over 30 years as ‘in house’ resource• UK Property Manager for Canada Life Insurance Company• UK & EMEA Facilities & Real Estate Director at EDS (now HP)• Corporate Real Estate Director EMEA for Dell Corporation• Consultant Director at Corporate Property Advisers (now EC Harris)

• O2• Amazon• Formula 1 industry• Rolls Royce• Interserve Business Services• Royal Sun Alliance• Omani RE investor in UK property• SIS and BBC to Salford• Shortlist Media & Crane Communications Inc• Thales Defence

• DX Network Services Limited (now DX Group PLC - since February ‘14) 2

Quick Introduction to DX

WHO ARE DX...

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One of the UK’s leading mail, parcels and logistics end to end network operators.

We specialise in the next day delivery of time sensitive, mission critical, high value and items requiring 2 man delivery for B2B and B2C Customers.

Deliver approximately 170 million items every year from mail to parcels and 2-Man deliveries.

Established in 1975, during the Post Office strikes!

Acquired Nightfreight 2012

VC funded since 2006

Floated on February 27, 2014 at £200M

OUR NETWORK

5,200 staff

Collection and Delivery fleet of over 2,500 vehicles, 350 nightly trunk routes

Distribution centres across the UK, operating from over 80 main locations

Distribution hubs in Northampton, Nuneaton, Warrington and Willenhall, plus other regional hubs.

4,000+ UK ‘high street’ Exchanges

UK & Ireland daily

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The Market and the DX Challenge

• 2014 = 18 billion items delivered in UK

• 2012 = £13 billion market value (= £0.70 per item!)

• Letters continue to decline by about 4% annually• DXE = 70% of our volume• Impact on our Exchange estate and service• Opportunities for our Exchange estate!

• Parcel volumes continue to grow (faster than letters decline!)• DX acquisition of Nightfreight Limited in 2012

• Key success factor for DX is network and site consolidation

• Key success factor for David Wright is network and site consolidation!6

Investing in New Capability and Infrastructure

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Investment in property including canopies & new sites

Investment in technology and efficiency……

Investment in carousel & cages …..

Investment in new trucks & trailers.

The Facilities Challenge

• Integration of two portfolios and two networks• 150 + Service Centres and Depots

• Creation of a joint property strategy• fewer and larger dots on the map (including new UK Hub)• new fleet and product handling• impact on flat floor strategy V demise of traditional cross dock

• Creation of a Legacy Estate• non operational financing• provisions and administration• disposal strategy• years of underinvestment in Nightfreight• decades of poor property decisions

• Clash of two cultures 8

Collaboration

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Emotional history of the FM Industry

1980’s - Invented itself

1990’s – Defined it and justify it, separate it;

2000’s – Defending it, protecting it

2010’s – Second generation of professional FMs coming through better education, chosen career paths, attracting others to it from other professions, greater recognition, contribution and value, higher salaries and corporate standing - up to a level

SAME OLD QUESTIONS IN FM IN 2015:

Does FM deserve to be higher up the value chain?

Can FM improve it’s internal credibility?

Can FM make it to the Board Room?

Can FM have greater influence at corporate level?

Can we use FM to drive corporate change?

Can we promote FM within your company?

Can we raise the profile of FM in an organisation?

Can FM functions influence capital projects?

Can FM teams add value to capital project design?

MY ANSWER

NO.

WE CAN’T

NOT ON OUR OWN.

So what do we need to do?

Do it differently, be different, act and talk differently and certainly, think differently

Have a corporate and holistic approach - to raise our game above wash rooms, facilities and services

Reinvent FM to facilitate Collaboration through workspace, facilities, amenities and infrastructure provision

Be collaborative in everything we do, don’t be combative and don’t be protective – give, don’t take.

Keeping Up With The Real FM Customer

What is important in addressing our key challenges?

• Understand them first (base line before change)

• Understand what the company does & what is important

• Understand what we (in FM) do and what is important for us

• Who are our key internal & external stakeholders?

• Reporting and auditing requirements

• Who pays our (your!) bills? How are we in FM funded? Do we sell our

services internally and are you part of that process?• Corporate Overhead level?

• Regionally or at local cost centre level (via internal cross charge)?

• Project by project (capex?)

• Other (direct to customer, via provision, M&A vehicle or fund etc)14

Keeping Up With Change

Key Challenges?

• IT Platform (and dependence on Technology)• IT governance is a key issue for corporates

• Procurement Policies• Just be aware of governance here and play the game

• Security & confidentiality issues (internal & external)• Be aware and conform

• Corporate Governance and Policies• Be aware that they exist and understand how to use them

• Understand the company’s view and management of ‘risk’

• The priorities are not always the priorities (important V urgent)• Focus on The Priorities and deliver them urgently

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Finally, for FM Service Providers …

• The F word. Try not to use it!

• Be Creative

• Find the important things that are difficult for us to do. And do them better and quicker than us

• Create a ‘route of least resistance’ in using you and your services for everything we do

• Take the long term view – on everything

• Make us look good. That’s not a joke

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My Best Tip To Finish

Don’t just be a Facilities Manager

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or you’ll only ever be, just a Facilities Manager

Thank You

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