Zurich publishes conclusions CRE&FM Futures Forum
27 July 2012
In January 2012 Zurich Insurance Group invited many people across the global
Corporate Real Estate and Facilities Management (CRE&FM) industry to participate in a CRE&FM Futures Forum; a week-long online crowd-sourcing event.
The purpose was to try to rapidly advance every participant’s understanding around some of the industry’s key challenges – issues that had for the most part long been recognised and discussed and/or complained about, but had seen very little or no significant advance in practice.
over 450 people signed up from all around the world, and they contributed nearly 700 unique ideas, and many more comments as well.
Key conclusions from the Forum (which are the result of the synthesised views of the Futures Forum participants and do not necessarily reflect the opinions of Zurich Insurance Group Ltd) include:
- CRE&FM currently has no objective way of evidencing the value it brings to business, which naturally is a fundamental blocker to it being seen as an asset within the enterprise rather than as a cost.
- CRE&FM needs to develop a much better insight and understanding into work and team productivity.
- There needs to be a shift beyond a focus on building centric insights to embrace customer centric outcomes, a change that may require a redesign of the whole industry ecosystem.
- Advances in sustainability performance will be driven by a number of factors including improved supplier management and staff behaviour and attitudes.
- Current approaches to ‘integration’ in reality are a coordination ‘veneer’ that tends to support (and reinforce) the existing fragmentation of the industry.
- Globalisation similarly is simply the same fragmented services but on a much larger scale.
- The prevalent (and lengthy) supplier sourcing process leads to a vicious circle of commodity services, dissatisfied customers and low margins.
- A fundamental change in pricing models is needed, rewards being more closely aligned with realised business value.
- Effective knowledge management has the potential to be transformational, but not in those organisations where “knowledge is power”.
- Suppliers feel that they have a lot of market ready innovative value to bring to their customers, if only they were allowed to.
- Innovation, which until now has been throttled by prescriptive Requests For Proposals, introspective measures, constant cost pressures and a history of under-investment and very weak R&D, is nevertheless a fundamental imperative in the future to prevent the industry and its basic value proposition from flat-lining.
- The industry needs a rethink how it attracts talent. ‘Baby Boomer’ thinking to attract ‘Millennial’ talent is unlikely to be successful.
The full report can be downloaded below.
Source: www.realestateresonance.wordpress.com and Zurich Insurance Group