Wax on Wax Off: Balancing Innovation and Operations in the United Arab Emirates FM Market
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Wax on Wax Off:Balancing Innovation and Operations in
the United Arab Emirates FM Market
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Today’s PresentationModerator: Joshua Amos, IFMA Components Liaison
Presentation Title: Wax on Wax Off:
Balancing Innovation and Operations in the United Arab Emirates FM Market
Presenter(s): Ryan Darnell
Executive Director – Facilities ManagementKhidmah LLC
Presentation Logistics• Polls will be used throughout the webinar
• Q&A at the end of the presentation
• Quick survey at the conclusion of the Webinar
• PowerPoint & Recorded Webinar will be available online via FMCC’s Website (fmcc.ifma.org)
• Your Participation is Greatly Appreciated!
Learning Objectives1. Identifying the market conditions in which you are
operating FM Services 2. Analysing where differentiation's can be achieved
from your competition (internal and external) 3. Setting strategies that optimise innovation while
ensuring stability of operations in a developing market
4. Implementing a tailored strategic plan that matches the market and is easily communicated
Presenter BioRyan Darnell: Executive Director – Facilities Management
Ryan has more than 12 years of experience in the Facilities Management Industry starting in hands on roles that have developed across the commercial, residential, retail, IT and government sectors. As Executive Director of Facilities Management for Khidmah, Ryan is responsible for all operations, Health & Safety, Procurement, Sustainability and Project Management across the portfolio. His clients include Musanada, Aldar, Abu Dhabi Judiciary Department, Mubadala, Etihad, Environmental Agency Abu Dhabi, First Gulf Bank along with private residences and offices of members of the ruling family.Previously Ryan worked for Seba in Abu Dhabi and Jones Lang LaSalle in Australia where his clients included IAG, Allianz, Morgan Stanley, EDS, Deutsche Bank, EMC, Coca Cola, Australian Customs, MLC and Sun Microsystems. He won several awards at IAG and also won the Young Facilities Manager Middle East Award in 2009. Ryan is an accredited member of the Australian Institute of Company Directors, IFMA, FMA Australia & Middle East Facility Management Association. Khidmah LLC is an award winning fully Integrated Property Service Solutions Provider, delivering comprehensive Services under a single point of contact to the finest properties and most prestigious clients not only in the Middle East, but throughout the world.
The United Arab Emirates:Brief Introduction & PEST Analysis
The United Arab EmiratesMany people believe this is the United Arab Emirates
The United Arab EmiratesThe Reality of the United Arab Emirates
The United Arab Emirates
The FM Market Conditions of the UAE
FM Market Conditions
• Total spend on FM in the GCC in 2012 is estimated at $21.8bn, the majority of which was in Saudi Arabia, the UAE and Qatar
• Market is taking steps between contracting & 1st Generation outsourcing• Key Driver is Price with margin pressure occurring as more competition
occurs• Low overall spend on FM compared to more mature markets• Limited understanding of what FM or an FM company is• Limited Government controls seen as low barriers to entry however
barriers are higher due to investment required in developing market
GCC FM Briefing 2013: Credo report for MEFMA
•
• Over 250 registered ‘FM’ companies in Dubai alone• FM Companies range from consultant or professional FM delivery
through to fully integrated service offerings to single source suppliers• Subcontractor and technician market not mature• Multiple international providers entering market• Many developers, contractors and other companies seeing FM as a
natural progression• ‘Copy/Paste’ mentality to FM solutions• Many companies utilising organisational relationships to secure work• Rigid and sometimes slow processes when completing business
transactions• Government entities such as Musanada & Wasl driving more mature
procurement strategies across government entities
FM Market Conditions
Localised FM Conditions
• Technical labor comes from India, Pakistan, Philippines, Nepal, Sri Lanka and African nations
• No apprenticeship or local qualifications for MEP technicians• If employing your own technicians then you must provide labor,
transport, food/food allowance and a number of governmental requirements
• Local working requirements by law during Ramadan, Summer and other holidays
• Education of customer base not only on FM but also other requirements such as insurance
• Poor product quality and delivery of assets from Project Management to Facilities Management
• Health and Safety challenges
Localised FM Conditions: HSE
Localised FM Conditions: HSE
Changing Dynamic of FM Market
• New laws and standards occurring every month both locally and federally
• Middle East Facilities Management Association established in 2009• Increases in Energy & Water costs in Dubai ensuring more focus on
Sustainability• Mandatory adoption of Pearl Rating scheme by UPC in Abu Dhabi• International Building Code requirements on new developments in
Abu Dhabi• Ministry of Labor setting new requirements on management of labor• Competition increasing for global labor with markets such as Saudi
Arabia and Qatar.• Push from stakeholders to develop the biggest and best developments
of the world• Owners Association Law/Strata now implemented in Dubai• New Health & Safety regulations such as ADEHSMS
FM Service Delivery
Developing Clients
beyond 1st Gen Sourcing
Quality of Product
Changing Regulatory Landscape
Developing Labor
Workforce
Increased Competition
Operations & Logistics
Technological Advancement
s
Environmental Challenges
With all these challenges on service delivery let alone innovation, how can you deliver Innovation & Stable Operations in the UAE?
Optimising innovation while ensuring stability of operations
Targeting the Market
Based on your strategic plan where should you target & what should you decide?
• What is your Core FM Service? Does it meet a local demand or are you introducing an alien product or service?
• How can you tailor your service delivery to localise the offering?• What customer demographics offer you the most sustainable
business?• Do you have the right human capital to deliver to your chosen
target market?• Have you got the founding customer base to allow you enough
time to implement your plan?• Where can you offer the best differentiation to the client base so
that you don’t just compete on price?• Who are your best customers both reputationaly and
commercially?
• Contract Development that suits the market and differentiates • Be involved in assisting clients with their RFP• The development of TFM Contracts• Long term/Risk and Reward Contracts• From input to output based metrics in your KPI’s and SLA’s• A contract that allows the freedom to innovate and deliver above and
beyond• New Products & Services that demonstrate results to clients• Mitigation Actions that overcome the challenges faced in the local
market• An approach that ensures agility in the delivery of your innovation
What are some key differentiators you can develop in this market?
How did this approach work for us?
• Khidmah has grown from a staff of 195 to over 2,500 within 5 years• The business was started with 99% of the services delivered to the
parent entities. Today the parent entities account for less than 20% of the business
• By focusing on operational growth as well as innovation we were able to not only secure new contracts but also witnessed high levels of organic growth
• By working with our clients on output based performance contracts we were able to utilise existing business to test new services
• The approach ensured that Khidmah was always setting new benchmarks and the region and continues to win awards today
Final Advice
• Communicate, Communicate & then Communicate more• Build a team culture that is not afraid to highlight a concern
and bring a solution to the table• Empower your organisational leaders not only in tactical
objectives but also in delivering innovation and strategic objectives
• Clearly delegate responsibility for separate teams to operate on wax on & wax off elements separately.
• Live and breathe your strategic plan not only via regular meetings but also when you hit milestones
• Celebrate Success with those involved in the journey• Automate as much as possible to allow you to continue to be
agile, Try to automate your wax on!• Always look at ways to do things smarter. From reviewing
delegations of authority to changing procedures.
Q&A
Ryan Darnell, Executive Director - Facilities ManagementKhidmah LLC, Dubai, UAEwww.khidmah.com
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05.03.2015Teena Shouse, CFM, IFMA Fellow, Vice PresidentFacility Engineering Associates
Quality:Benchmarking: It's Much More Than Just a Bunch of Numbers!
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Project Management:The Coveted Operations & Project Manager Positions: You Got There; How Do You Measure Success & Advance Your Career?
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