business strategy for fm professionals_2

Business Strategy,Opportunity for Improvement & Risk Assessment for individuals.

Prepared & Presented By :

Mr. Deepak Sahoo

Part – 2 & 3

Prepared by :- Mr. Deepak Sahoo , Consultant

Area Covered

Top 10 trends and in the Middle East FM industry.

Business Strategy

FM Industry Global & Local Players.

FM Life cycle in Middle East

Strategy for O & M Segment

Strategy for Branding & E-marketing

Strategy for CRM

Potential and Risk Management

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Business Strategy

A business strategy typically is a document that clearly articulates the direction a business will pursue and the steps it will take to achieve its goals. In a standard business plan, the business strategy results from goals established to support the stated mission of the business.

A typical business strategy is developed in three steps: analysis, integration and implementation.

Analysis

Integration

Implementation

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Business Growth Strategy

If the company seeks rapid and sustained expansion, then the emphasis on crafting a business operations strategy might focus heavily on building capital capacity. That would be considered a business growth strategy.

- Vertical Alignment.

- Focus more on revenue generation and Market share.

- More CAPEX Budget required

- Minimum time frame 3 Year.

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1. Analysis

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Recent investment in FM industry in Qatar

New Doha Port, Cost $ 7.4 bn, 2016

Hamad international Airport, Cost $ 17.5 bn, 2015.

Lusail City, Cost $ 45 bn, 2020

Stadiums (9 Numbers), $ 4 bn, 2015 to 2019

IRDIS, $ 2.5 bn, 2018

Msheireb, $ 6.4 bn. 2016

Al-Waab City, $ 2 bn. 2015

Doha festival City, $ 1.6 bn. 2016

Integrated Rail Project, $ 36 bn., 2019

Apart from this near about $ 3 bn. will be spend by QP, Qatar Govt, 17 public sectors companies for their headquarters and other offices.

Source :- Gulf times; Dated 28th Feb 2013

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Top 10 trends and in the Mideast FM industry

1 • Energy Management Legislation

2 • Shift to Efficient Lighting

3 • Joint Property Ownership Law

4 • Health & Safety

5 • Talent Management

6 • Delayed Mobilization

7 • Breach of Payment Terms

8 • Regional Unrest

9 • Unethical Practice

10 • Pestilence

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1 • Energy Management Legislation

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Over the past 10 years, the Middle East has witnessed an

increasing number of developments and heightened

construction activity.

Due to the continuing dependence on oil as the primary source

of energy, the governments in the region are trying to find ways

to reduce demand and conserve energy.

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With most countries recognizing the need to conserve energy

and banning the sale of incandescent lamps, GCC governments

are following suit and introducing regulation to phase out

incandescent in favor of compact fluorescent lamps (CFLs) and

light-‐emitting diodes (LEDs).The latter can last up to 30times longer than the former, yet

consumes a tiny percentage of power. But the return on

investment formula has been challenged by subsidized local

electrical tariff rates combined with the higher prices of the

CFL and LED lamps. So the conversion rate is slow.

• Shift to Efficient Lighting

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With Dubai creating the Jointly-‐Owned Property legislation (Law No. 27 of2007), property developers and owners’ associations (OAs) were forced to

form OA Management (OAM) companies, which aspired to effectively

manage their properties and communities. Other Middle Eastern countries

also attempted to introduce similar regulations.

Generally, OAM representatives are not experts in FM and often cannot

understand asset management, life cycle management, defect liability

responsibility or planned preventative maintenance. Hence, the legislation

needs further improvement in order to clarify respective responsibilities and

prevent irreversible damage to building infrastructure since its apparent

failure to deliver properly-‐constituted OAs in good time has resulted in aninterim state of hiatus with lack of powers to appoint OAM companies and

funds to pay FM providers.

• Joint Property Ownership Law

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There is a move in some Middle Eastern countries to introduce

and enforce health and safety legislation related to facility

management. Though fire and life safety legislation is in place

across the region, it is open to abuse due to inconsistent

inspection standards and varying levels of enforcement.

Other areas of health and safety are now being considered

throughout the region and Abu Dhabi is taking the lead with its

EHSMS legislation. Again, many of the experienced facility

managers in the region are pushing to improve the general

standards of safety in their facilities.

• Health & Safety

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FM is a people business. It is becoming difficult to attract, train

and retain experienced people.

Industry players highlight the need for serious change in the

way people are sourced, hired, trained and retained by FM

companies.

• Talent Management

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Many countries in the region are actively promoting programs

to provide jobs for nationals. But in certain countries, this has

led to a protracted process wherein visas denoting nationality

are only issued after a contract is signed and registered with the

labor ministry. This results in poor performance from the

outset, extends the mobilization period and, ultimately, leads to

a breakdown in the relationship between the vendor and client.

Meanwhile, vendors must also be realistic when providing their

mobilization forecasts at the proposal stage. It is essential to

have a mutual understanding of the issue.

• Delayed Mobilization

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Cash flow is the biggest issue affecting FM companies in the

region. Breaches of payment terms are frequent and the

industry openly names defaulters.

Additionally, the deliberate non-‐payment of service charges bya large number of end-‐users and the inability of developers orOAMs to take timely legal action results in huge budget deficits

and negative cash flow.

This, in turn, leads to the suspension or downgrading of

services and non-‐payment of service providers.

• Breach of Payment Terms

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The unrest and uncertainty in certain countries across the

Middle East affects FM companies and doing business in such

countries is beset with a unique set of risks.

Employees from the countries impacted worry about the safety

of their families at home. While this could also be considered

an opportunity for the industry, many companies do not have

robust business continuity plans in place.

• Regional Unrest

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10 “We will give you this contract, if you give us…” is a commonly

used barter phrase. In some countries in the region, even after

agreeing on the price, the procurement department gets

involved and starts looking for a 20% reduction with no regard

for quality or scope.

Additionally, certain FM companies offer subsidized visa costs,

lower profit margin targets and exhibit poor commercial

practices. Once a client /owner/ landlord realizes that good FM

will save money in the long run by primarily maintaining the

resale value or extending the useful life of an asset, this practice

will die.

• Unethical Practice

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The Middle East is witnessing increasing signs of a bacterium

named Legionella, which spreads essentially through the air--

‐conditioning (HVAC) systems of large buildings.

The pest population is also expanding exponentially as each

country develops without the full infrastructure to cope with

such issues.

Municipalities need to do more to reduce the pest overload, the

spread of vermin and the associated health issues.

• Pestilence

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Global Players in FM Industry

ETA ASCON

ABM Industries Inc

Amey

Aramark

EMCOR Group Inc

Etisalat FM LLC

Europa

Faceo FM UK Ltd.

ISS

Johnson Controls Inc

Kier Facilities Services Limited

MITIE Group Plc

TFN Group

Turner FM Ltd.

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Local FM companies in Qatar

United Facilities Management Company (UFMCO) – UDC group

EFS Facilities Services

The Maintainers

GFM Qatar (Global Facilities management Qatar)

Al. Mukhtar Contracting & Trading co. WLL

Phoenix International WLL

SNC – Lavalin ProFac Gulf management LLC

Al - Asmakh Facilities Management

SAMA Group

COMO Facilities Management

Transfield Mannai Facilities Management Services WLL (TMFMS)

Conservo Facility Management Co. W.L.L.

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FM Life cycle in Middle East

UAE MarketSaudi MarketQatar Market

UAE is still 6 time bigger than Qatar FM Market. Saudi is 3.5% Higher than Qatar.In Qatar the growth cycle will continue till 2030, Where as Analysts expects after 2022 FIFA world Qatar FM market growth rate will be single digit.

Source :- Al Jazeera, Doing Business in middle east Review

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Strategy for O & M Segment

Operation and Maintenance (O & M) Segment is play a vital role in current business scenario.

Better the performance of O & M segment will enhance the revenue and customer satisfaction.

Companies will be more competitive and profitable if it focuses more on O & M Segment.

Companies can significantly reduce its OPEX budget by adopting better strategic tools for it’s O & M Segments.

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6 -Sigma

JITTPS OE

ME

Strategic tools for O & M Segment

TQMRCMTPM

Lean Manufacturing

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Abbreviations of O & M strategic Tools

TPM :- Total Productive Maintenance

RCM :- Reliability Centered Maintenance

OE :- Operational Excellence

WCM :- World Class Manufacturing

TQM :- Total Quality Management

6 – Sigma – 3.4 Defects per million

Lean Manufacturing, TPS and various CI tools.

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Strategy for Branding and E-marketing

What is Branding ?The process involved in creating a unique name and image for a productin the consumers' mind. Branding aims to establish a significant anddifferentiated presence in the market that attracts and retains loyalcustomers.

What is E-Marketing ?Marketing plays a vital role in a business, the success of the company canbe achieved through effective Marketing. E-Marketing (ElectronicMarketing) is a range of methodologies that are used to sell or attractcustomers for your services both on and off line. Also E-marketingdrastically reduce the marketing cost.

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Observer this slide carefully

What are the companies belongs to these logo ?

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Companies from FM Industries ?

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So Why We need Branding ?

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EMCO Brand Visibilities.

EMCO – Qatar (www.emcoqatar.net) Currently stands at 12,102,242 in global Alexa ranking where as

ABM :- 158, 820 (70 time lower than EMCO)

QF :- 149,050 (78 times lower than EMCO)

EMCO web penetration is 1.37 out of 1 million search in google regarding FM Key words. Data collected from google webmaster. Where as ABM has 7862. Etisalat FM has 986.

Still to workout for Google webmasters & Webmatrix rank not visible.

No sites are linked with emcoqatar.net till now

No Locational tracking and site visitors data available.

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Branding & e-marketing

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EMCO in Social network sites

Facebook :- www.facebook.com/emcoqatar.net

Twitter :- www.twitter.com/emcoqatar

Slideshare :- www.slideshare.net/emcoqatar

Youtube :- www.youtube.com/connectemco

Also we are working in the site such as Wikipedia, Linkedin, alexa, and other social media and B2B sites.

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http://www.facebook.com/emcoqatar.net

http://www.twitter.com/emcoqatar

http://www.slideshare.net/emcoqatar

http://www.youtube.com/connectemco


Ideas for EMCO for web presence

Create a better data centric and user-friendly website.

SEO Work for better web visibilities.

More focus on e-marketing rather offline.

Better web visibilities.

Display logo through various jobs portals

Displaying Animation video for EMCO service line.

Create and share Client review and client feedback videos

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Offline and on field

Arranging various seminar, Participating global seminars.

Showcase various service line of EMCO through outdoor advertise such as banners, hoarding etc.

Advertisement job vacancy in leading newsletter with big space map.

Arranging various social events and sponsoring

Better media presence

Write up white papers regularly submit to the Gulf times; and other newspapers (Arabic & English).

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What is CRM & It’s Goal ?

CRM Stands for Customer relationship management.

Goal

Increase customer retention.

Increase company profits.

Better serve the customer / increasing competitive advantage.

Build and maintain a relationship with your customers, so that you know their current and future needs and can incorporate trends into your strategy.

Manage leads through the sales pipeline by creating a relationship

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ROI of CRM

Studies consistently show that it costs 8 times more to cultivate a new customer than to keep an existing one.

A good CRM plan will create a ROI within 3 months of implementation.

Increased efficiency

More repeat business,

Increased referrals,

Faster invoicing.

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CRM for FM Industries ?

Managing your customer relationship is important for all businesses, but is critical for Service.

Apart from basic needs such as address account here some of the key points to be taken care for better customer satisfaction.

Track & Manage Current Service Requests. Record Service History. Equipment Records. Access records of inventory used & service preformed. Record all B/D and it’s root cause. Prepare FMEA for all critical equipment's and share with Clients. Digitalized the customer web portal where all data will be available

to customer.

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CRM : CR Index

Satisfaction : Do benefits outweigh the costs? (X)

Trust : Do customers have faith in an organization? (X)

Control Mutuality : Who has the power in a relationship? (2X)

Commitment : Is it worth it? (2X)

Attitude : How does the customer judge the relationship? (X)

Behavioral Intention - Word-of-mouth (X)

Engagement : How you engage your customer apart from paid services ? (2X)

Total points = 10 X = 100 Points

Global benchmark for Customer Relationship Index : 6.5 (65 Points)

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Kano model of customer satisfaction

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Game - 2

This Game will help you to know your Potential, Risk Taking, and your Performance when you are in Under pressure

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Part – 2 & 3 Completed.

AnyQuestions?

Connect With Me @Mobile :- +974 – 3370 8982Email (w) :- [email protected] (p) : [email protected] :- www.linkedin.com/in/dksahooSlideshare :- www.slideshare.net/dksahoo2Twitter :- www.twitter.com/DefyDeepak

END

business strategy for fm professionals_2

Data & Analytics

middle east fm industry

deepak sahoopart

business strategy results

business operations

typical business strategy

middle eaststrategy

standard business plan

efficient lighting07