FM CHALLENGES; A Client Perspective Creating a Model for Cross-Boarder Scope Dubai – November 2007 Adil Abdalla, MBIFM, IFMA, PMI, ULI, APMG 1

Business Framework Managing Expectations Lessons Learned 2

Dubai FM 2007 Inward Investment Skills Shortage Massive Real Estate Development Legislation Support Maturity of investment Cycle Awareness of Corporate Liabilities Sustainability of Service Inward Investment Skills Shortage Massive Real Estate Development Legislation Support Maturity of investment Cycle Awareness of Corporate Liabilities Sustainability of Service Annually new 50,000 Residential Units 5 billions ft2 new spaces 2007/2009 Currently Customers seeking Quality Current demand Sq ft 600,000,000 Current main Player Sq ft 200,000,000 Current minor Players Sq ft 10,000,000 Annually new 50,000 Residential Units 5 billions ft2 new spaces 2007/2009 Currently Customers seeking Quality Current demand Sq ft 600,000,000 Current main Player Sq ft 200,000,000 Current minor Players Sq ft 10,000,000 AED 2.5 billions FM Market 2005 Currently; NO I-FM Service Providers Global Average Rate ft2/AED 17 Rates for Residential AED/Sq ft 9-12 Rates for Office AED/Sq ft Rates for Retail AED/Sq ft AED 2.5 billions FM Market 2005 Currently; NO I-FM Service Providers Global Average Rate ft2/AED 17 Rates for Residential AED/Sq ft 9-12 Rates for Office AED/Sq ft Rates for Retail AED/Sq ft FM Expo is a MENA annual venue Growing FMBG Eight Main Players Many small players Growing Int’l Joint-Venturing No I-FM /TFM till end of 2007 FM Expo is a MENA annual venue Growing FMBG Eight Main Players Many small players Growing Int’l Joint-Venturing No I-FM /TFM till end of 2007 Derivatives Value Demand Progress 3

I-FM Portfolio Property Management Renter- Oriented Renter- Oriented Owner- Oriented Owner- Oriented Service for Rental Market Service for Rental Market Taxes Procurement Coordination Procurement Coordination Sales Promotion Sales Promotion Customer Care Customer Care Accounting Space Planning/Mgt Space Planning/Mgt Legal Service Legal Service Process Improvement Process Improvement Procurement Invoicing Contract Management Contract Management Insurance Building Operations & Maintenance Utilities Technical Operations Technical Operations Oil/Gas HVAC Potable Water Potable Water Automated Service Automated Service Drainage & Sewage Drainage & Sewage Environmental management Environmental management Irrigation Water Irrigation Water Energy Economization Energy Economization Storm Drain Storm Drain Technical Consultancy Technical Consultancy Compliance & Auditing Compliance & Auditing Energy IT & Telecom IT & Telecom Maintenance Planned Maintenance Planned Maintenance Running Construction Running Construction Façade Maintenance Façade Maintenance Corrective Actions Corrective Actions Modernization Ancillary &Support Service Facilities Service Facilities ServiceSecurity Hospitality (F&B) Hospitality (F&B) Access Control Access Control Janitor Service Janitor Service Safety Service Safety Service Waste Handling Waste Handling Fire Protection Fire Protection Movers & Storage Movers & Storage Parking Operations Parking Operations Gardner & Landscape Gardner & Landscape Shredding Management Shredding Management Laundry Intelligence Cleaning Boundary Protection Boundary Protection Core Business Support Core Business Support Reception & Switchboard Reception & Switchboard Office Supplies Office Supplies Copy/Print Secretary Archive Admin Archive Admin Call Center Mail Delivery Handling Mail Delivery Handling Reporting Events Management Events Management Control Management Control Management Service Desk 4

RevenuesRevenuesLandlordLandlord PremisesPremisesLeasingLeasing EXECUTIONEXECUTION Contracts Regulator Handover Design Package Construction Package OPERATIONSOPERATIONS CR Mgt FM Packages Regulator Renovation Contracts Facilities Management Service Project Management Service FM Synergy 5

Business Platform Soft Service Soft Service Technical Service Technical Service Safety & Security Safety & Security Reception Ops Call centers Mgt Pest Control Ops Housekeeping Ops Landscaping Ops Reception Ops Call centers Mgt Pest Control Ops Housekeeping Ops Landscaping Ops Alarm System Mgt Accessibility Mgt Health Mgt Safety Ops Security Ops Alarm System Mgt Accessibility Mgt Health Mgt Safety Ops Security Ops Space Mgt Plant Ops BMS Ops ICT Mgt Refurbishment Mgt Space Mgt Plant Ops BMS Ops ICT Mgt Refurbishment Mgt Regular Planned Static Spot Checking Corrections Mobility Others Events Mgt Hospitality Ops Energy Mgt Environmental Mgt Events Mgt Hospitality Ops Energy Mgt Environmental Mgt Standard Quick Fix CAX PAX 6

Hot Spots Service Provider Service Provider The Client The Client Expectations Info Flow Skepticism Scope Management Reporting System Quality Management Value for Money 7

Careful & Managed Information Flow Active Customer Involvement Active Work Closely with the Client’s Organization Clarity of ScopeStatement ScopeStatement Reliability of CommunicationSystem CommunicationSystem Quickly Correcting Mistakes Quickly Correcting Mistakes Extremely Responsive to Customer’s Concerns HappyCustomerHappyCustomer UnhappyCustomerUnhappyCustomer Team Speaks One Voice Speak Customer’s Language Acquire Glimpses of Effort Avoiding Surprises Turn Expectations into Data Client Satisfaction 8

FM Interfacing Client FM Provider Landlord CR Mgt Call Center Planning Operations Satisfaction KPI CAX Quality Manual 9

IFMA Roadmap Support Business Culture & Brand Linking FM to Business Strategy Cost of Sustainability Broadening Diversity of HR Emergency Preparedness Role of Change Management Emerging Technology Globalization of Business Managing Aging Buildings Valued Risk Management Applications Understand & Support Client Advocate Vision and Mission Keep Abreast of Changing Technology Inevitable Cross-Boarders Utilization Development of Careers and Pools Mature Investing Modeling 10

BIFM Roadmap Retention of People & Skills Rethinking FM Professionalism Quality of Service Innovation Inevitable Sustainability Du Diligence Cost Reduction Building Design & Space Management Enhance Environment, Health & Safety Linkage with Corporate Real Estate Compliance with Regulations Longer & Flexible Contracts Government Policies & Initiatives 11

Rethinking FM Competencies Focus on Commercial Developments that require new standards of service to meet International Codes Competencies Focus on Commercial Developments that require new standards of service to meet International Codes Method Flexible Operations allow effective PAX and timely CAX, built by 6σ models and developed by CRM Method Flexible Operations allow effective PAX and timely CAX, built by 6σ models and developed by CRM Analysis & Benchmarking Establish service models that satisfy the changed culture and business demands Analysis & Benchmarking Establish service models that satisfy the changed culture and business demands International Knowledge Emphasis on scientific approaches, in parallel to best practices modeling International Knowledge Emphasis on scientific approaches, in parallel to best practices modeling Integrated Facilities Management Integrated Facilities Management 12

New Business Chain Planning Programming Budgeting Occupation CAX PAX Evaluation Disposal Operations MarketingSales Lease Contracts Invoicing CRM Projects ProgramConcept Design Construction Plan PlanningContractual Engagement Operations & MaintenanceDisposition Opportunity 13

DeveloperDeveloper Facility Manager Project Manager Construction Team Lease Operations Tenancy Operations Tenant/Client DeveloperDeveloper Facility Manager Project Manager Construction Team Lease Operations Tenancy Operations Tenant/Client DeveloperDeveloper Facility Manager Project Manager Construction Team Lease Operations Tenancy Operations Tenant/Client New FM Role 14

Generic Chart Regular Inspections Regular Inspections Preventive Actions Preventive Actions Baselines (Quality Manual) Baselines (Quality Manual) Specifications Configurations Liabilities ApprovalApproval Close-out SLA Records & Planning Records & Planning Certify Conformity Certify Conformity Business Operations Business Operations Complaints Corrective Actions Corrective Actions ApprovalApproval Close-out Records & Planning Records & Planning Certify Conformity Certify Conformity Call Centre 15

New Engagement Client Operations Satisfaction CAX KPI Quality Manual FM Provider Landlord Joint Ops Team Operations Planning Call Center CR Mgt 16

New Parameters Scope Cost Performance Time Consolidate Business Plans & SLAs with Clarity and Constructability in lieu with Market Trends Delivery Solutions that Enable Timely Implementations and Responses for both PAX & CAX Innovative Management of Expenditures and Changes in Corporate Environment, to advocate Value for Money Innovative Management of Expenditures and Changes in Corporate Environment, to advocate Value for Money Customer Driven Service based on Motivated and Satisfied Stakeholders Customer Driven Service based on Motivated and Satisfied Stakeholders Mature Quality Measures Synchronize Tasks & Processes, based on Statistical Approaches Mature Quality Measures Synchronize Tasks & Processes, based on Statistical Approaches Automated and Error-Free Information System supports Faster & Efficient Decision Making 17

Communications Template PartiesReferenceAuditability PlanningPerformanceProgress RequestInstructionReport Acceptance Change Information Actions Change Irregular Weekly Monthly CorrelationComplianceCompletion AuthorizationMonitoringQuality The Design of the Templates should adequately meet the Products of the pre- determined Technology for both Processing & Monitoring Purpose Subject Form 18

1:5:200 Construction Cost Construction Cost Operating Cost Operating Cost Building Life Cycle Building Life Cycle Rationale Quality Strategies ROI & Business Modeling ROI & Business Modeling Expectations & Customer Modeling Expectations & Customer Modeling Governance Urban Maturity Governance Urban Maturity 19

New CSFs Call Centre IDLE ! Quality Centre Quality Centre CAX IDLE ! Proactive Actions Proactive Actions Audit IDLE ! Measurable Quality Measurable Quality Company Level Client Level 20

Thank You 21