'Most of the innovation in our business is coming from the supplier side and people who want to get involved in leading-edge FM are working for service providers,' argues Martin Pickard, managing director of Citex Property and Facilities.
Pickard has recently made the jump himself. Until six months ago he headed up property and business services for Cellnet. 'I'm getting CVs from people who feel restricted working for an organisation. They want to be doing more interesting things,' he insists.
This isn't the only advantage of working for a supplier, Pickard says. Almost as important for him has been the realisation that what he does – facilities management – is now the core business. He has colleagues in a way he never had them before, people who really understand what he's talking about. 'We're bouncing ideas around and sharing experiences all the time,' he says.
In-house facilities managers have a great deal to offer a supplier too, notably their understanding of how clients think. CoFlex has recruited managers from several big corporates including IBM and BP. Managing director Seamus Grealish says: 'It can be a real benefit getting people from the client side. They have experience of what clients want and that's the strength of a good manager.'
Their general understanding of how businesses work is also a bonus. 'They can look at facilities strategically and work out what will enable their client to become more strategic in his organisation and bid for more responsibility.'
However, in return you must be willing to get your hands dirty, Grealish says. You could find yourself talking to your client's managing director one day and the cleaner the next. 'The problem is that many in-house managers have been used to being of a certain rank within their organisations and can only talk upwards,' he says.
But while this is fine for senior managers such as Martin Pickard, John De Lucy and Mike Harrington [see boxes], it's going to be a long time before more junior managers jump ship for a supplier.
Recruitment consultants specialising in the industry insist it is extraordinarily hard to persuade in-house managers to move to a supplier. 'It depends on the reputation of the service provider, but a lot more want to go the other way round,' says Nikki Millensted a senior consultant with the Synergy Group. 'Those who have worked in the private sector are particularly fussy. They have had good training, competitive salaries and been treated well.'
This is a problem for most suppliers looking to attract in-house talent – once you move away from senior management jobs, pay and conditions simply aren't as good as in-house. For starters site-based supplier facilities professionals can expect to earn up to 20 per cent less than their in-house counterparts.
Add to this the change in status. When you move out of house you cease to be a friendly insider with whom everyone gossips and you become the unwelcome intruder.
Then there is the issue of job security. Although some suppliers are looking to tie clients in for longer service deals, most contracts still only last for only a couple of years – with no guarantee that it will be renewed. So if you work for a supplier you must be prepared to go where the work is.
It's not surprising therefore that Millensted advises clients to check the reputation of a provider and ascertain what work they have on the books before taking the plunge. This means ensuring they aren't over-stretched as well as checking they have enough work to be viable.
Of course skill shortages are forcing most facilities management employers to rethink their reward strategies and many suppliers do not accept this gloomy view of their business. 'We are becoming more professional in our approach,' says Grealish. CoFlex, for example, has achieved the government's training standard Investors in People, which means that everyone has a training plan and everyone is encouraged to pursue further education and training.
Pickard too is working hard to make sure that client-based staff get to talk to each other and share their ideas. 'We've set up evening training sessions and we are heavily into technology such as email and video conferencing,' he says.
Now that it is clear that many facilities jobs will remain in house there is not quite the distrust there once was between in-house facilities managers and their suppliers. But there will never be a true understanding of what each does without more mixing and matching.
Martin Pickard is a case in point. One of the things he has particularly enjoyed about moving to a supplier has been learning how a bid is put together. And it has opened his eyes. 'I never realised how much work went into it – all those times when I thought I'd get another couple of people to give me a price, just in case. If I ever go back to working in house, I'll never do that to anyone again,' he says.
Mike Harrington
Mike Harrington has recently moved to Johnson Controls where he works as UK and Ireland FM operations manager for the IBM contract. He was previously working for Broadgate Estates looking after properties in London. ‘Joining Johnson Controls was a career move. There weren’t many opportunities at Broadgate and I’d reached a plateau. But I wouldn’t have left my job there for many service providers. It had to be one of the big players.’Having been London-based at Broadgate, Harrington was looking to take on something with a UK remit. This is one ambition he has reaIised: at Broadgate he managed seven or eight buildings and about £7 million of service charge, at IBM he has 68 properties in his charge, although admittedly not under his direct control. Harrington accepts that moving to a supplier has involved a massive culture change for him. ‘In my last job I could say: “We will do this and this is how we will do it.” Now I have to stop and listen to the people at IBM. We make our suggestions but they call the shots,’ says Harrington.
Martin Pickard
Martin Pickard, managing director of Citex Property and Facilities has no intention of moving back in house. ‘I’m having far too much fun.’ But then as MD he does run the business and he has only been doing the job for six months. Pickard began his facilities career with the Post Office and has spent the best part of the past 12 years with BT Cellnet before taking the leap to a service provider. ‘The basics of the job aren’t that different from working in-house for a large organisation. You have difficult customers and challenging targets that have to be met, wherever you are,’ he says. The biggest shock to his system was losing all the back up and support that a big corporate offers. Cellnet alone employed 10,000 people while Citex sports a head count of only 1,000. ‘You don’t get the big support mechanisms in a smaller company,’ Pickard says. But at least his colleagues understand him now. ‘Even in a big organisation like BT with lots of other facilities managers you’re still fairly isolated. But everyone at Citex understands what I’m talking about and that creates a really good environment,’ says Pickard.John De Lucy
John De Lucy has tried both sides of the industry, but has decided to return to a client role. He now holds the position of in-house facilities chief with the media group, Pearsons. De Lucy returned to a client role after two years as facilities director with CB Hillier Parker. ‘Having experienced them both I prefer the in-house role,’ he says. De Lucy moved to a service provider when he was made redundant by PPP, where he had spent six years as head of property. CB Hillier Parker offered to fulfil one of his ambitions by giving him European responsibilities. ‘After two years with a supplier, I found I enjoyed being in control of the corporate culture and processes,’ says De Lucy, although he was not so keen on being at the beck and call of clients. ‘I wasn’t convinced they necessarily knew what they wanted or could give a reasonable brief,’ he says. Nonetheless the experience has been invaluable. ‘It has given me a clearer understanding of, and helped me appreciate, suppliers so that I can work better with them,’ he says.Source
The Facilities Business
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