WORKPLACE
FUTURES
THE CRYSTAL
February 12th, 2012
Presentation of the awards
Don’t miss it : See who won : in 2 hours!
Tea Break
Leading FM: delivery in a
demanding relationship
Tuesday 12th February 2013
Chris Green, Arcus
Simon Wetherell, Sainsbury’s
Agenda
•The Mechanics
•What’s demanding...an Arcus view
•Why it’s good for Arcus
•The Sainsbury’s perspective;
• Joint Vision
• Commitment
• Benefits
3
The Mechanics
• Joint Venture Agreement
– Equal Board representation
• Services Contract
– All the usual contractual elements...
4
Services Arcus Provide
Managing Agent
• Helpdesk, Commercial, Contract Management, RFMs,
Technical Support, H&S, Management Information,
Refrigeration Bureau
Self Delivery
• M&E, Refrigeration, Building Fabric
Service Stream
• Supermarket and Convenience stores, Petrol Filling Stations,
Distribution Centres and Offices.
5
Scale of our Business and JV
Single channel
Multi channel
Managing
Agent
Managing
Agent
Self
Delivery
Managing
Agent
Self
Delivery
February 2009
223 Colleagues
Self
Delivery
February 2013
610 Colleagues
February 2009
800 stores
February 2013
1200 stores
6
Annual Budget Process
Sainsbury’s
Total FM Cost
Contract
PAYG/ETCW
Arcus
7
Cost Plus Contract
• SSL will cover costs up to budget.
• KPI’s are used to generate mark-up and profit.
– Re-negotiated each year to drive service
• All of the mark up is at risk every month
8
Key Performance Indicators
•
•
•
•
Asset Performance
Compliance
Productivity
Projects
– Continuous Improvement
• Customer Survey
• Financial
9
So what is demanding about this joint venture?
Our non-execs are also our customer.
Sainsbury’s know everything about us.
There is no where to go and no where to hide.
This drives incredibly high standards of governance and
culture.
Ultimate intelligent client model
10
So what is demanding about this joint venture?
Governance/Culture
Customer
Health and Safety
The most trusted retailer
People
Where colleagues love to
work
Service
Make customers lives
easier
Finance
Offer great quality
and service
11
What are the outcomes from this
demanding relationship:
Juggling risks, rewards and
opportunities
12
Risks
• We have to be good at running every aspects of our
business...
– our customer sits on the board
• Serious failure has punitive consequences.
• ALL profit is at risk EVERY month.
13
Rewards
• Long term contract.
• Stability to build our business and our team.
• A customer that pays on time.
• Formal performance sign off brings objective results
for KPIs.
14
Opportunities
• Ability to influence our customer in a way no other
relationship can.
• An holistic and shared long term view of how to
develop our FM Service.
• Access to more channels and more scope.
• Success maybe rewarded with growth opportunities.
15
Sainsbury’s Perspective
Simon Wetherell
Head of Facilities Management
Sainsbury’s Plc
16
Joint Vision and Goals
Our Vision for FM:
“Through Arcus, we will provide an industry leading
service that our colleagues trust and say they are
proud of”
Our Vision for Sainsbury’s:
“To be the most trusted retailer where people love to
work and shop.”
17
Learn the lessons of the past...
• You can’t abdicate responsibility for FM to the
supply chain.
• Hard wire our commitment into the contract eg.
Board Membership
• Be an intelligent client; ability to directly influence
shape our partner.
• See FM as a key enabler of the strategy and vision
18
Commitment is Everything
We put a huge amount of time and focus into Arcus.
For example;
• Board
• Management Committees
• Trusting Arcus
• Colleagues seconded between the companies
• Redesign internal FM roles and process
• Collaboration
19
Resolving difficult responsibilities
• Procurement (SSL) ‘v’ Contract Management (Arcus)
• Compliance of the estate
• Supplier payments: Arcus Commercial team ‘v’ SSL
Finance
20
Benefits of dual citizenship?
• Role as a Director
• New business opportunities for Arcus
• Never taking the easy option – be hardest on those
closest to you.
21
Put in the effort and get the reward
• FM Service transformed in the last 3 years.
• Customer survey of Store Managers – 83% positive (Dec 2012)
• 4 years ago it was the single biggest issue at CEO roadshows
• Long term approach – power of developing a vision and building
it over time.
• Compliance – best in class.
• Strategic flexibility
22
When does a JV work well;
when the status quo is not an option.
If...
•
•
•
•
FM can be competitive advantage to your business
FM spend matters
FM is a strategy
As the customer you are also willing to try something
new
23
Thank you
24
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Presentation Title - Workplace Futures Conference