High level Summit on Real Estate and Facility Management: January 22, Mumbai

“Enterprise alignment with Building services”

IFM summit held on January 22, at The Leela in Mumbai during the Clean India Technology Week 2016 has received wide acclaim both for its content and the high level of discussions which covered many vital issues.   “ This has been one of the most professionally designed and conduscted Summit on IFM in India”, commented the delegates and the speakers. The Summit had right mix of speakers from the industry, raised relevant issues of the FM sector and deliberated on business and technical solutions that had not been dealt with in depth before. Being addressed perhaps for the first time has been the increasing relevance of infrastructure to the core business of an organisation.

The presentations by eminent speaker’s like Markus Asch from Alfred Karcher, GmbH & Co. KG and Sreedhar Saraswathi from Archibus emphasized the impact of technology on FM. Likewise, Shail Gala, of DTZ elaborated on the strategies for change management that should be adopted for smooth transition in an organization.

While, much appreciated was Jairam Panch from Turner Project management India Pvt. Ltd presentation highlighting the relevance of both infrastructure and FM to the core business. Mili Majumdar from TERI addressing the audience drew their attention to the benchmarking strategies for building performance especially the green rated buildings.

The invigorating panel discussions among industry experts on subject’s like changing face of real estate management, Supply Chain Management as a catalyst in FM outsourcing and the need for regulating FM saw enthusiastic participation and interaction from the audience. Not surprisingly, the Summit is already making waves asan apt platform to network with key facility management professionals, corporate heads, developers and building consultants community, etc.

Property represents a substantial investment for many organizations and its management should be central to any business’s strategy. Deliberating on the role and importance of real estate and facilities management, top developers, corporate real estate management heads, facility management leaders and service providers got together on a single platform. Addressing the audience on the relevance of both infrastructure and FM to the core business was the first Master speaker of the day Jairam Panch, Managing Director, Turner Project management India Pvt. Ltd an Indian arm of Turner International, USA, a global Project Management company.

According to him innovation in construction and new concepts of BIM, Lean and 3D printing are becoming critical to new age building design and maintenance. He said, “The problems faced in facility management originated during construction & design phase of the buildings. Therefore, the focus should be on how to make maintenance less repetitive and technically more sophisticated. Housekeeping cleanliness, technically trained staff are the challenge the industry faces worldwide. Another critical aspect of the modern buildings is safety and security, given the rising heights of the buildings and the limitation of fire extinguishing snorkels to reach such heights. Thus, the fire safety will have to be inbuilt in the building through choice of materials and design. While, sustainability calls for optimization and resource efficiency, keeping the lifecycle cost minimum is also important.”

“Involving FM in the earlier stages of design and execution helps the project managers understand the design better and testing & commissioning at the end of the project should always be done with FM participation. Handing over or Close out is an important stage in project management wherein, coordination with BIM is helpful in capturing information and handing over the documents in 3D to the owner for future reference. It involves, handing over the OEM manuals, as built drawings, warranties, certificates from vendors, suppliers, approval, fire safety NOC, Occupational certificate etc. to the FM for maintenance aspects,” he said. In the end, Jairam suggested backward integration where FM companies inform designers and consultants of the essential points as the design & construction managers may not be aware of all the aspects.

Impact of Technology

The second Master speaker of the day Markus Aschis the Deputy Chief Executive Officer& Vice Chairman of the Management Board at Alfred Karcher, GmbH & Co. KG. The company based in Germany is one of the world’s largest manufacturer of cleaning equipment. Markus presentation focused on the technology and its impact on FM companies. He rued the fact that as cleaning solution provider, they enter a project, when everything is already constructed and sometimes it becomes difficult to maintain. According to him, cleaning is not about a cleaning product or equipment but, it is an entire process that varies for a hotel, industrial facility, mining operations, so on and so forth. He said, “The seven trends in marketplace today include technology, urbanization, globalization, healthcare, sustainability, individualism and demographic development. In the increasingly connected world, the resources are availed from all over the globe and access to technology is getting easier. This means that going forward, just providing technology would not be enough for customer retention, it would need solution and service competence. Maturity of demographic population means that instead of technologies developing in western world and then getting adopted elsewhere, the innovations will happen more in emerging markets and then embraced in western countries. The ageing population in Japan, Europe and America demands more automation & ergonomics to keep people healthy and in workforce. This also means more emphasis on IAQ in the office spaces as maximum time people spend is in their offices.” Markus emphasized that the increasing urbanization has led to congested urban environments and combining of functions within buildings leading to more complex FM operations. “The future trends comprise, focus on maximum customer interface, personalization of products and services and consumers becoming producers namely P
rosumers,” he said.

Talking about impact of technology on cleaning, he stated that communication between building, machine and user is the future. “Combining the building knowledge with cleaning knowledge will give efficiency. Driving the change will be cleaning on demand, low frequency & high frequency areas cleaning, robotics for cleaning simpler areas along with advanced communication process and efficiency of processes. Awareness of cleaning is still low in FM as it is not a visible product but let’s not forget that it can drive customer satisfaction,” he added.

Real estate & Supply chain management

The panel discussion following the presentations was on the topic of changing face of real estate management and how it leverages technology. The discussion revolved around changing landscape of real estate and the way of working inside those buildings. Sajit Sankar Managing Director, Integrated Facilities Management & Asset Services, India, Cushman & Wakefieldmoderating the discussion raised the questions of labour intensive Indian firms being really ready to go beyond CAFM & CMMS and adopt IWMS – Integrated workplace management system. Shamsher Sindhu, Head – Infrastructure and Projects, Kotak Mahindra Bank was of the view that stricter labour laws on anvil will drive IWMS implementation but what is needed is the availability of cost effective, home grown products as well as example of such a system already implemented somewhere for the company leadership to experience. Shirish Tare, Director, Urban Infrastructure Venture Capital Ltd. felt that while parts of IWMS are being implemented in isolation, to implement it in entirety, the firms will have to involve the end users. Sreedhar Saraswathi, Business Head – South Asia; ARCHIBUSagreed that with raising real estate cost, FM has become a core business enabler than cost center. “Change of mindset or cultural change is needed for technology to become a driving force,” he said. Padmanabhan Kannan, Head – Corporate Real Estate & Workplace, Mindtreestated that FM deals with people, processes, vendors and various systems and IWMS integrates all these systems in a single framework for better performance. “To achieve correct application and use of the technology, vision of the FM head becomes critical,” he emphasized.

Taking forward an important aspect of the real estate management, which is the Supply Chain Management, the next discussion focused on it, as a catalyst in FM outsourcing. Moderating the discussion S. Narayan, Founder & President, Integronstarted with stating that today FM companies are expected to not only maintain property but entire townships, municipal services and property management property, going beyond single building across locations. This has made the job of procuring & planning for services across multiple functions & places a complex issue. Vikas Rawat, Vice President – Operations, Nirlon Ltdpointed out that while at project stage, right material and right cost are key to procurement, at the maintenance stage, the assurance of supply and guarantee of price with minimum cost escalation over time becomes essential. Aval Sethi, Head – Supply Chain Management & Procurement, Asia, Integrated Facility Management, Jones Lang LaSalle Property Consultantsmentioned the challenge of sourcing materials from vendors across spectrum of services and satisfying clients at the same time. According to him, IT led supply chain, emphasis on sustainability & compliances, risk management with in supply chain and technology driven delivery modules are some of the latest developments. Navin Upadhyay, National Manager – Procurement & Capacity Management, Kotak Mahindra Bank Ltd.added that FM has now become a specialized segment and some of the important considerations while outsourcing FM include, value for money, efficiency & optimization in manpower and materials and streamlining of facility management. The biggest challenge in FM industry remains the quality of manpower. To address the issue of skilled workers in FM, Ruediger Schroeder, Managing Director, Karcher Cleaning Systems Private Limited informed about the three-year vocational training for cleaning professionals in countries like Germany and Switzerland. If the same practices are followed in India, he feels it will bring government recognized skill sets into the industry and recognition of cleaning industry by the society at large. Comparing the international FM industry with Indian industry, he pointed out the lack of understanding of logistics and delivery process in supply chain and not giving due importance to after sales service by counterparts in India.

Need for regulating FM

A very critical subject for the realty and facility management industry is the need for an FM industry regulator. The last discussion of the day revolved around the pros and cons of having such a regulatory body. Sasidhar Chidanamarri, Associate Director, Energy & Environment Practice, Frost & Sullivanmoderating the discussion questioned, that given the 24% growth rate of the FM industry and presence of more than 300 players both organized and unorganized does the industry need a regulatory body or rating system of FM companies as followed in China, S. Korea and Japan or UAE system where Middle East FM association has partnered with Dubai real estate regulatory body to develop codes and standards. Shamsher Sindhu, Head – Infrastructure and Projects, Kotak Mahindra Bankexpressed that companies are already following voluntary regulations guidelines of organizations like BIFMA and IFMA, even client SLAs are a set of parameters so, some standard regulations may make a difference but instead of an external body, industry professional own body can collaborate with government agencies in terms of planning and development of buildings, towns and cities. Nakul Subramanyam, Executive Director, Morgan Stanley Advantage Services Pvt Ltd pointed out that FM is a B2B industry and defining what to regulate and how to regulate is a challenge. Some areas of facility management need regulating and classification of FM companies’ can give a formal structure to the industry. Adding to Nakul statement, Rohit Dalal, Head – Logistics, Housing & Real Estate, Atos (India) said that there is an ambiguity in defining what needs regulating – the individual, activity, output or impact of the industry
. Instead, addressing the shortage of skilled work force in the industry is more important. “In FM, rather than academic qualification, skillset of an individual is more critical which should be recognized and validated as a first step toward creating certification programs for FM industry professionals” he expressed. Rajesh Pandit, Managing Director, Global Workplace Solutions, CB Richard Ellis – Asset Services – Indiafelt that the building industry from planning to managing stage had enough regulations already. Simultaneously, on operations side, quality control and ISO offer regulations. He felt that instead of creating another regulatory mechanism, the users and service providers could come together to support institutes offering certification programs for FM professionals to create skilled workforce which in itself will take care of quality services.

Improving Building Performance

After the highly engaging and interactive discussions, an interesting presentation by Mili Majumdar, Senior Director, Sustainable Habitat Division, TERIdrew the attention of the delegates towards benchmarking strategies to improve building performance. She briefed, “Globally, buildings have a large resource footprint in terms of energy, water and pollution and FM can positively influence resource guzzlers sectors like offices, commercial, retail and hospitality. GRIHA, the benchmarking and performance rating system rates the building only when it performs and this where the facility management role becomes crucial. Building performance is linked with resource saving without compromising on comfort. Such as setting set-points in HVAC to acclimatize the temperature as per the requirement, occupancy or other benchmarks. Interestingly, a rated building with all the compliances may not perform well because of the faulty operations & maintenance. The FM managers in many cases do not have drawings and other documents to know the design considerations of the equipment and thus may be running them at incorrect operating levels leading to poor performance of the building. For instance, sometimes VRV system is bypassed by the operator defeating the whole purpose of implementing energy efficient HVAC system.” Her inquiry from the FM industry representatives if they gave concession to energy efficient buildings or charged more to maintain these buildings featuring advanced building systems, led to an animated debate among the delegates.

Workplace Strategies to enhance productivity

The workplace strategy has assumed a new meaning and importance in modern workspace. Highlighting the same, Shail Gala, Associate Director, Project Management, DTZelaborated on the strategies for change management that should be adopted for smooth transition in an organization. According to Shail, Hot desking, agile working, activity based working, telecommuting are the new words of workplace strategy as real estate has become the top most cost factor for many companies. “In most offices, the space requirement is based on either headcount, corporate standards, space efficiency, budget or organizational flexibility. In any office, there is at least 12% vacancy at any given time. The same can be reduced by accommodating more persons, making staff more productive through comfort & collaboration and by providing organizational agility i.e. working from anywhere. But, this requires training people and offering them choices. For instance, offices can be designed with home zones or fixed spaces for certain departments, shared spaces for collaborative work, seats in the coffee shop for relaxed working and some private areas so employees can choose the place to occupy depending on the work they are doing,” he said.

Explaining the FM role in change management, he stated “To adapt the staff to new regimen, change management has to be implemented at many levels which includes, leadership approval, workshops and discussions with employees at all hierarchy, enabling staff acceptance and empowering operational teams. FM changes too, as it now has to provide hotel like service where the person coming after should get clean desk with no signs of earlier user, round the clock cleaning, stocked pantry etc. Strict policy enforcement for all and security of employee possessions, become critical factors too in shared spaces. Thus, change has to be well supported by FM to succeed.”

 

Technology enabled workplaces

Talking about the impact of technology in workplace, Sreedhar Saraswathi, Business Head – South Asia, ARCHIBUSspoke about the new systems and innovations that were driving FM globally and in India. He explained the concepts of CAFM and BIM used as foundation for FM systems, now known as TIFM- Total infrastructure & facility management and IWMS – Integrated workplace management system. “These help allocate, enable, optimize and preserve the resources. In fact, during building lifecycle of 30 years, FM contributes up to 34% of operational saving. Additionally, GIS, cloud computing, mobile apps, social media and virtual reality & augmented reality have become great tools for FM,” he added.

Mind games for the audience

The summit ended with an exciting session by motivational speaker Pradip Amladi of Mynd Storm. The highpoint of his session was the magic tricks that conveyed the personality development messages in a lift hearted manner. His thought provoking games not only energized the delegates after the long day of deliberations, but also left everyone with some inspirational concepts that could be followed in personal and professional lives for more fruitful outcome.

In all, the delegates found the sessions beneficial and the topics relevant. For some, the summit provided the opportunity to network with FM professionals and industry experts, for others, the discussions and presentations offered insight in the key areas of facility management. As one of the delegates from Germany put it, “The IFM Summit was a valuable opportunity to meet the relevant stakeholders in the FM industry. It was good to learn about the business side of our industry as well as the technical challenges.”

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