1. JLL FM Quarterly Outlook for the State of TN
October 2016
State of Tennessee Real Estate Asset Management

2. Agenda
Agenda, Outcomes, & Roles/ Protocol 1:00-1:10 June Meeting Parking Lot Items 1:10-1:20 FY 2016 Year-End Results 1:20-1:35 Performance to Requirements 1:35-1:50 Operational Review 1:50-2:15 Break 2:15-2:30 Facility Assessment Tool 2:30-3:00 Facility Management Marketplace Trends 3:00-3:45 Wrap-Up/Open Discussion 3:45-4:00
“The strength of the team is each individual member. The strength of each member is the team.”
--Phil Jackson

3. Expected Outcomes For a highly successful session we’ll need to be
Engaged
Focused
Setting the future direction

4. Facilitators Role Provides structure Keeps group focused
Controls process yet is flexible
Remains neutral
Helps group produce results

5. Meeting Protocols Conducive environment One conversation at a time
“Yes, and…” versus “yes, but…”
Stay strategic
Be present
Parking Lot
Have fun!
“Once we rid ourselves of traditional thinking we can get on with creating the future."
— James Bertrand

6. Parking Lot Items- June 2016 Meeting

7. Facility Assessment Tool
Parking Lot Items
Facility Assessment Tool
Assessments on FY18 Capital Requests Completed
Prioritization Filter Leveraged
Shift to utilizing ARCHIBUS assessment tool
Emergency Notification System Update

8. FY 2016 Year-End Results

9. FY 2016 KPI Scorecard Results
Objective
Key 
Performance   Indicator
Weight
Goal
Description
Calculation
Frequency
Scoring Criteria
Result
Rating
Weighted  Sco re
Financial %
Savings Creation Operational
30%
20% of baseline spend - Year 3 goal of 18%.
Ongoing savings realized by JLL
Baseline expenses - new costs
Monthly
5 points = 19.0%+ 4 points = 18.5%+ 3 points = 18.0%+ 2 points = 17.5%+ 1 point = 17.0%+
23.5% 5
1.5
Savings Creation Utilities
15%
15% of baseline spend adjusted for rate increases and approved adverse weather- Year 3 goal of 10% - Savings directly attributable to EMPOWER TN projects will NOT be included to meet the goal
Measure and report energy usage/savings over the portfolio and by building
Adjusted baseline of current usage and expenses - new usage and costs
5 points = 12.0%+ 4 points = 11.0%+ 3 points = 10.0%+ 2 points = 9.0%+ 1 point = 8%+
21%
0.75
Diversity Spend Goal 5%
25% of annual managed vendor spend
Percentage of managed vendor spend going to diversity vendors
Total Diverstiy Vendor Spend divided by Total Managed Vendor Spend YTD
5 points = 30%+ 4 points = 27.5%+ 3 points = 25%+ 2 points = 22.5%+ 1 point = 20%+
38.0%
0.25
Facility Management Efficiency/ Reliability %
Reactive Maintenance Completion
12.5%
89% completed on-time within SLA
Effectiveness of maintenance work being performed
Percentage of service requests completed on- time YTD
5 points = 95%+ 4 points = 92%+ 3 points = 89%+ 2 points = 86%+ 1 point = 83%+
97.2%
0.625
Preventative Maintenance Completion (Standard Equipment)
89% compliant based on monthly cycle
Effectiveness of preventative maintenance work being performed
Percentage of PM routines completed on-time YTD
99.6%

10. Equipment up time/down time for Critical Building Systems
FY 2016 KPI Scorecard
Objective
Key 
Performance   Indicator
Weight
Goal
Description
Calculation
Frequency
Scoring Criteria
Result
Rating
Weighted  Score
(Cont’d)
Facility Management Efficiency/ Reliability %
Equipment up time/down time for Critical Building Systems 5%
Unplanned downtime of systems in critical buildings
Incidents under JLL control which result in unplanned downtime at Capital Building, Legislative Plaza and Tennessee Tower
Length of time between equipment failing and operation being re-established
Monthly
3 points = 0 hours 2 points = < 5 hours 1 point = < 10 hrs
0 hours 3
0.15
Customer Satisfaction %
Tenant Satisfaction
10%
89% Satisfaction ("satisfied or highly satisfied")
Measure of overall tenant satisfaction reported over the entire portfolio and by building
Results from work order tenant satisfaction surveys
5 points = 95%+ 4 points = 92%+ 3 points = 89%+ 2 points = 86%+ 1 point = 83%+
97% 5
0.5
Client Satisfaction
DGS Client Survey
DGS Client Survey will be scored using the same metrics as the "Tenant" Survey
Annual
5 points = 95%+ 4 points = 92%+ 3 points = 89%+ 2 points = 86%+ 1 point = 83%+
87% 2
0.2
Target
3.0
Actual
4.6

11. FY 2016 Financial Results

12. Energy Consumption: FY 2016 vs Baseline
Final Utilities amount for FY16 = $14.2 million. This represents a savings of $3.8 million (21.3%) from the original baseline
Consumption information is not normalized for weather or other extraordinary items

13. FY 2016 Customer Satisfaction
KPI Requirement for Customer Satisfaction

14. 2016 PM On-Time Completion
KPI Requirement for On-Time Completion

15. 2016 Reactive On-Time Completion

16. Performance to Requirements FY2017

17. Work Order On-Time Completion %
56,642 Total Reactive WOs

18. Customer Satisfaction Results

19. Customer Satisfaction Owned vs. Leased
Industry Norm
FY16-17 Number of (Active) Leased Buildings
313
FY16-17 Number of (Active) Owned Buildings
132

20. Financial Performance – Total Savings

21. Financial Performance: Operating Expenses
(23.5%)
FY16 Actual

22. Operational Review

23. HR State of Affairs
Slight change to leadership structure with combination of Engineering and Energy Manager roles
Seamless transition with replacing FM in West Tennessee
JLL Alliance Director
Tom Foster
Finance Director
Heather Whigham
Sourcing Manager
Jason Miglin
Contracts Administrator
Ryan Brown
Regional Facilities Manager
Lance Moore
Operations Coordinator
Dana Byrd
Operations Manager
Neil Canady
Data Specialist
Kim Best
Herman Bulls
Paul Uber
Chuck Manula
JLL Governance Board
HR Business Partner
Amelia Arbuckle
Assistant Operations Manager
TBD
Stan Key
FM, West TN

24. Recycling Results

25. Recycling Baseline

26. Environmental Impact

27. TLETA New Target Range Before After
Issue: The gun range at TLETA was old, outdated and not functional. The Agency could purchase new targets with grant funds (available to be used by the end of June 2016), but had no resources to install them. With only 30 days notice, the State asked JLL to get involved and provide labor to install the targets before the funds expired.
Resolution: FM team was able to complete the project on time. The new range looks great and is a much needed improvement over the old system. The new targets are wirelessly controlled, can be programmed and are independent of each other.
Before
After

28. WRS TN Tower Flooring Project
Issue: Since installation, the terrazzo floors on the 2nd and 3rd floors have proven very difficult to maintain at an acceptable level.
Resolution: After much research the FM team identified a more appropriate finish for this type of facility that would achieve the results they desired. The team partnered with Corporate Care (a new vendor for the facility) to completely strip and refinish both floors. The results were impressive, with a jump on the gloss meter from 14 to 99!
Before
After

29. Key Performance Indicators - September
Category
KPI
Weighting
Goal
Result
Financial
50%
Savings Creation Operational
30%
Reduce operational costs ( and ) by $560k or 1.92%
29.2%
Savings Creation Utilities
15%
50 new energy conservation initiatives with estimated annual savings of at least $1,000 will be submitted
15 submitted for sign-off
Diversity Spend Goal 5%
25% of annual managed vendor spend
37%
Facility Management Efficiency/ Reliability
Reactive Maintenance Completion
12.5%
90% completed on-time within SLA
97%
Preventative Maintenance Completion
(Standard Equipment)
90% compliant based on monthly cycle
99%
Equipment up time/down time for
"Critical Building" systems
Unplanned downtime of systems in
"Critical Buildings"  0
Customer Satisfaction
20%
Tenant Satisfaction
10%
90% Satisfaction ("satisfied or highly satisfied")
98%
Client Satisfaction
(Annual)
89% Satisfaction ("satisfied or highly satisfied")
TBD 

30. FY 2017 YTD KPI Scorecard Objective Key Performance Indicator Weight
Goal
Description
Calculation
Frequency
Scoring Criteria
Result
Financial %
Savings Creation Operational
30%
Reduce operational costs ( and ) by $560k or 1.92% to $28,598,053
Ongoing savings realized by JLL
FY2016 costs ($29,158,053) minus FY2017 actuals
Monthly
5 points = $850k+ 4 points = $700k+ 3 points = $560k+ 2 points = $300k+ 1 point = $150k+
29.2%
Savings Creation Utilities
15%
Continue to bring savings initiatives and innovation to the State to assist in reaching the established savings targets
JLL will present conservation initiatives, products and services to State Energy Team for validation
50 new energy conservation initiatives with estimated annual savings of at least $1,000 will be submitted
5 points = 60
4 points = 55 3 points = 50 2 points = 45 1 point = 40
17 submitted YTD
Diversity Spend Goal 5%
25% of annual managed vendor spend
Percentage of managed vendor spend going to diversity vendors
Total Diverstiy Vendor Spend divided by Total Managed Vendor Spend YTD
5 points = 30% points = 27.5%+ 3 points = 25% points = 22.5%+ 1 point = 20%+
37.0%
Facility Management Efficiency/ Reliability %
Reactive Maintenance Completion
12.5%
90% completed on-time within SLA
Effectiveness of maintenance work being performed
Percentage of service requests completed on- time YTD
5 points = 95%+ 4 points = 92%+ 3 points = 90%+ 2 points = 88%+ 1 point = 85%+
97.0%
Preventative Maintenance Completion (Standard Equipment)
90% compliant based on monthly cycle
Effectiveness of preventative maintenance work being performed
Percentage of PM routines completed on-time YTD
99.0%

31. FY 2017 YTD KPI Scorecard Objective Key Performance Indicator Weight
Goal
Description
Calculation
Frequency
Scoring Criteria
Result
(Cont’d)
Facility Management Efficiency/
Reliability
30%
Equipment up time/down time for Critical Building Systems 5%
Unplanned downtime of systems in “critical buildings”
Incidents under JLL control which result in unplanned downtime at Capital Building, Legislative Plaza and Tennessee Tower
Length of time between equipment failing and operation being re-established
Monthly
3 points = 0 hours 2 points = < 5 hours 1 point = < 10 hrs
0 hours
Customer Satisfaction
20%
Tenant Satisfaction
10%
90% Satisfaction ("satisfied or highly satisfied")
Measure of overall tenant satisfaction reported over the entire portfolio and by building
Results from work order tenant satisfaction surveys
5 points = 95%+ 4 points = 92%+ 3 points = 90%+ 2 points = 88%+ 1 point = 85%+
98%
Client Satisfaction
89% Satisfaction ("satisfied or highly satisfied")
DGS Client Survey
DGS Client Survey will be scored using the same metrics as the "Tenant" Survey
Annual
5 points = 95%+ 4 points = 92%+ 3 points = 89%+ 2 points = 86%+ 1 point = 83%+
TBD

32. Break - Facility Assessment Tool

33. FM Marketplace Trends

34. Facilities Management in the new economy: changes and trends
Presented by:
Maureen Ehrenberg International Director
Global Facility Management JLL

35. JLL Smart Building Program
Trend #1
Smart Buildings / IoT
JLL Smart Building Program
The workplace of tomorrow, today

36. Trend #2
Employee Engagement

37. Smart Building Value Proposition = 3-30-300SM
Building Efficiency & Energy Management
$3.00/s.f.
Space Utilization & Workplace Strategy
$30.00/s.f.
Employee Productivity & Occupant Experience
$300.00/s.f.
Using smart building technology to improve your building’s energy efficiency by 10% would yield $.30 per square foot in cost savings.
Using smart sensors to gather occupancy data to increase space occupancy by 5% would yield cost savings of $1.50 per square foot.
Having the ability to customize and control the office environment from a mobile device –improving productivity by 2% – would yield cost savings of $6.00 per square foot!

38. Trend #3
Data, Analytics and BI

39. Automated processes / FM digital business
Trend #4
Automated processes / FM digital business

40. Risk management and Compliance
Trend #5
Risk management and Compliance

41. Trend #6
Standards

42. Trend #7
Benchmarking

43. Trend #8
Transparency

44. Trend #9
Energy and Sustainability

45. Trend #10
Operational Excellence

46. The Top10 IFM industry trends = Convergence continues!
Smart buildings / IoT
Employee engagement
Data, analytics and BI
Automated processes / FM digital business
Risk management and compliance
Standards
Benchmarking
Transparency
Energy and sustainability
Operational excellence
The Top10 IFM industry trends = Convergence continues!

47. Wrap-Up/Open Discussion

48. Thank you