Principal Finance Group FM Update and Latest Trends Ireland House 150 New Bond Street London W1S 2TU Tel: Fax: web: Presented By: Phillip Russell, Managing Director, Servus
Principal Finance Group Servus The Story So Far The Gift of Recession The Outsourcing Fuel From Boiler Room to Board Room So “How was it for you?”
Principal Finance Group Servus The Reality Check Victims of Our Own Hype Creating Professional Infrastructure Pride in Delivering Service Private Finance Initiative (PFI)
Principal Finance Group Servus Adding Value in Recession + 25% in Group Income (1) 26.1% - 25% in Reduced Costs (2) 29.1% Combine Both (1) and (2) Above 34.7% Equivalent to + 76% in Group Income 34.7% ABB Ltd Example of Increased Value through Reducing Costs 21.8% Actual Group Return On Capital 21.8%
Principal Finance Group Servus Outsourcing “You Ain’t Seen Nothing Yet” DIRECTLY EMPLOYED STAFF OLD COMPANIES SUPPLIERS Value Adding (10%) SUPPLIERS NEW COMPANIES DIRECTLY EMPLOYED STAFF Companies continue to outsource non value adding functions (90%?) Progressive Outsourcing Previous Core Processes HR / IT / Finance Maintenance / Cleaning / Security Stationery / Office Equipment
Principal Finance Group Servus Growth of Technology Utilisation The Intelligent Help Desk Condition Based Maintenance Integrated IT through XML Beware of the “Doris” Factor
Principal Finance Group Servus The E-Commerce Lingo FM = MRO Vertical & Horizontal Markets = Core & Non Core Business Disintermediation = Total FM Aggregation = Economies of Scale
Principal Finance Group Servus E-Commerce Threat Or Opportunity It is still “When” not “If” Add Value or be Disintermediated Marketplace Aggregation is a Fallacy Savings through “Good Specification” and “Process” Installation Driven by the Facilities Manager
Principal Finance Group Servus The Future is Bright the Future is FM Embrace Don’t Resist Technology E-Commerce Route to the Boardroom Service not Assets is the Future Only Limitation is Your Ability
Principal Finance Group Servus “ARE YOU UP TO IT?”