Raising the Profile of FM in the Charity Sector October 2010
Nothing Changes Much in FM Facilities Management is a busy job.
FM Constants Time pressure Cost Pressure Resource pressure Service expectations Affordability Negative image Changing Environment
FM PESTLE 2010 Public Sector The demise of PFI & BSF Coalition Government agenda Public sector spending cuts Some 1 st gen outsourcing Increased outsourcing of bigger bundles (2 nd gen) Collaborative procurement drive in TFM bundles Whole portfolio outsourcing including large and small sites B2G FM market size £38.3bn but outlook uncertain Private Sector Economic recovery under way Post recession issues and opportunities Cost and cash pressure on supply chain Increased energy and environmental regulation Risk and compliance concerns growing International FM trend small but growing Portfolio & service bundling for economies of scale National portfolio outsourcing including large and small sites B2B FM market size £48.7bn and growing
The Charity Sector (England and Wales) 167,000 UK charities – Income £51bn 60% small charities – Less than 1% of income 0.4% large charities – More than 50% of income Recession impact – 1.1% reduction in 2008/09 Coalition impact 20% VAT from 2011 IncomeCharities%Total £bn% £0 to 10,00073,08745.10.2470.5 £10,001 to £0.1m50,88131.41.7763.4 £100,001 to £0.516,67810.33.7847.2 £500,001 to £5m7,7414.811.59322.0 £5m plus1,7471.135.25166.9 Sub-Total150,13492.752.651100.0 Not known11,7827.30.0000.0 TOTAL161,916100.052.651100.0 TOTAL166,807100.051.166100.0
The Charity Sector (England and Wales) Benefits to society, public and individual quality of life Employment – 0.6m Employees – 0.9m Trustees – 14.4m Volunteers Recession increasing demand Coalition seeking support for public services
FM Industry Trends 2010 Self delivery model increasingly dominant Skill shortages at all levels Bigger players extending technical expertise and offerings More single service players offering FM Some FM operators at risk Continued market consolidation Diversification into Real Estate and niche services Property players repositioning towards FM FM players increasingly green
FM in the Charity Sector 2.4% of whole FM market = £2.16bn Wide ranging service requirement Outsourcing important Service delivery critical Need for innovation New OGC FM framework FM outsourcing relatively immature
NEWECONOMICS Pay for what you use Lower and predictable costs Shift from capex to opex Accelerate speed to value No patching or maintenance Faster deployment Robust multi- layered security Reliability and fault-tolerance Latest software for users Internet collaboration Anywhere access Instant self- provisioning
Preparation “If I had six hours to cut down a tree, I’d spend the first four sharpening the axe”. (Abraham Lincoln) – What are your relative rankings? – What’s the current relationship? – Do you need to maintain a relationship in the future? – Are you buying or selling? – Can you be a good negotiator without losing touch with your principles and values?
Alternatives If you don’t reach agreement, what are the alternatives? Are these good or bad? How much does it matter if you don’t agree? Does failure to reach agreement cut out future opportunities? What alternatives does the other party have?
Exploration Negotiation is a careful exploration of your position and the other person’s position The goal is finding a mutually acceptable compromise that gives you both as much of what you want as possible Ideally, the other person wants what you are prepared to trade, and you are prepared to give what the other person wants
Do your research The person with the most information usually does better You need to learn as much as possible about the other person’s situation, motivation, wants and needs If you are selling - know as much as possible about your competition and their offer too
Social enterprises are businesses set up to tackle a social or environmental need. Their social and/or environmental purpose is absolutely central to what they do - their profits are reinvested to sustain and further their mission for positive change. What are social enterprises?
“How Social Enterprises can help Charities” What are some examples of social enterprises? Eden Project The Big Issue Fifteen Jamie Oliver's restaurant Divine Chocolate, a fair trade chocolate company co-owned by the cocoa farmers cooperative Women like Us, which connects women with flexible employment.
“How Social Enterprises can help Charities” 1840s Rochdale, the first workers' co- operative was set up to provide high quality affordable food in response to exploitative factory owners. By the late 1990s a number of different traditions, including co-operatives, community enterprises and voluntary organisations were setting up social enterprises What is the history of social enterprise?
“How Social Enterprises can help Charities” In which sectors do social enterprises work? There are approx, 56,000 social enterprises across a wide range of areas: Health and social care services, education, environment and recycling, energy management, bicycle repairs, construction, drugs rehab, transport, IT, telephones, packaging, chocolate, coffee, organic food etc etc. DTI survey in 2005
“How Social Enterprises can help Charities” Mission and Service Social enterprises can deliver great services to charities across a wide range. Social Enterprises can also advance a charities mission.
“How Social Enterprises can help Charities” The Green-Works Mission 1.to encourage business to re-use or recycle all their redundant furniture 2. to protect the environment 3. to reduce the operating costs of the charitable sector by supplying quality office items at low cost 4. to create valuable employment and training opportunities
“How Social Enterprises can help Charities” How big is the challenge? 400,000 tonnes of office furniture is sent to landfill every year in UK – and predominantly from London There is a significant need in 3 rd sector for decent, affordable furniture There is a huge demand for jobs that develop basic and key skills
“How Social Enterprises can help Charities” Our social enterprise partners We are passionate about making a difference to local communities, particularly those in the most deprived parts of the UK. We partner with charities and social enterprises who are as committed as we are to protect the environment and to deliver real social benefits for their local communities.
“How Social Enterprises can help Charities” For us re-use acts as an “engine” that creates real jobs and vocational training such as: Materials handling Forklift Truck Driving Stock management PAT - Electrical testing Computers Customer Service Health & Safety … And much more
“How Social Enterprises can help Charities” Rebuilding and re-equipping schools
“How Social Enterprises can help Charities” “Now we have very good chairs which they can sit on and with the books they are able to learn to read better….the children do not get sore backs anymore and this means that they can concentrate better on the lessons”. Helping children learn
“How Social Enterprises can help Charities” We are a low cost resource for charities, schools, NGOs and hospitals in the UK, and across Africa.
“How Social Enterprises can help Charities” Supplying to the 3 rd sector; how can we help? Green-Works sources large volumes of good quality, built to last but redundant furniture Stock ranges from, desks, tables, storage, filing cabinets and chairs to carpet tiles, whiteboards, coat stands and stationery Cost effective solutions to new office set ups or refurbishments
“How Social Enterprises can help Charities” Re-manufacturing to your requirements. Green-Works can manufacture 100% reused content furniture – to your specification Innovation and design Range of standard products Produce items to client specification
“How Social Enterprises can help Charities” Bespoke solutions FAMILY MONEY “We are delighted with the results – the call centre office looks so impressive” THE BROMLEY TRUST “This storage has improved how we work. The Cube wall is sturdy, really attractive and helps us to manage and file all our materials so easily”
“How Social Enterprises can help Charities” Announcing: a new 20% discount rate for all FMCN members
“How Social Enterprises can help Charities” Conclusion Buy Social Enterprise and: 1.Help deliver your mission 2.Help other charities deliver their mission 3.Get great service and products
www.cy-associates.com Stationery/IT Consumables CY Associates clients Joint tender for the provision of stationery and IT consumables
www.cy-associates.com Why Tender? Current arrangements in place for several years Review of market practices Review of technologies Benchmark costs To appoint a proactive partner Management information
www.cy-associates.com Why Tender together? Similar requirements Shared knowledge and expertise Shared costs Stronger message to the marketplace More attractive business Lower and more attractive pricing structures Advantages for all clients – large and small
www.cy-associates.com Considerations Team Representatives from client group CY Associates Suppliers List Clients experience/knowledge CY market knowledge
www.cy-associates.com Process Timetable Drafting the Specification and Service Levels Tender Documentation Question & Answer sessions Tender Analysis and due diligence Presentations and supplier site visits Supplier Selection and scoring criteria Supplier Debrief sessions
www.cy-associates.com Outcome Up to 35% savings across the board Proactively Managed service Latest technologies Environmentally friendly
www.cy-associates.com CY – Who are we and how can we help?
www.cy-associates.com Overview CY Associates was formed in 1997 to offer businesses support in procurement and related services We work in partnership with our clients to help them achieve their objectives by understanding their business needs and developing services to meet those requirements
www.cy-associates.com Analysis of the current purchasing activities Reduce unnecessary overhead costs Benchmark costs Audit Managed Services Managed Purchasing Service providing advantageous umbrella agreements for goods & services
www.cy-associates.com Project Management Including management of pre-tender, tender, negotiation & implementation stages of the project Contract Management Training A customised training programme in three phases in order to achieve a return on investment and succeed in contract negotiation
www.cy-associates.com Summary We develop and deliver comprehensive and effective purchasing solutions for each individual client. Our proven methods help us to work with you to achieve your objectives.
Thank You Deborah Glen Monica Vaughan www.cy-associates.com