Frutig Evolution Services Innovation Partner for Effective Business Support

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Frutig Evolution Services Innovation Partner
for Effective Business Support Infrastructure
SolutionsScope of Services and Value Proposition
Presentation Version 10.0
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My Business Mission

• Transform Business Support Services leading to
  operational effectiveness by providing
• Executive Management Services
• Strategic Management Services
• through value-led partnershipstriving to
  energize client resources

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Scope of Business Support Services
Enable the core business to make best use of
capabilities and achieving a great performance
Great Performance
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The Challenges
Cost effective and value creating Business
Support Services

• Major challenges
• Historically grown service delivery models
• Inefficient
• Workplace concepts
• Business support processes
• Technology supported services
• High fixed costs linked to outdated drivers
  for Space Technology - Services
• ? Creating focus for far reaching change

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Increase Operational Effectiveness
Change the way Business Support Services are
provided

• Drivers
• Extreme market conditions
• Operating margin shortfall
• Increase profits and drive more value
• Operational Effectiveness
• Do the right thing!
• Perform similar activities better than rivals
• Focus on efficiency
• Emphasize consistent improvement to achieve
  superior profitability
• Look beyond traditional approaches, seize
  opportunities and prioritize

Value Capture Requirements
Operating Margin Shortfall

• Key Initiatives
• Procurement
• Support Business Process Outsourcing

Cash flow impact1 billion
Today
Future
Impact on Objectives
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Scope of Services
Put the pieces together, mobilize people, improve
performance, create business value and benefit
the bottom line to achieve operational
effectiveness

• Executive Management Services
• Business Diagnosis / Expertise
• Interim- and Project- Management Services
• Transformation Management Services
• Strategic Management Services
• Board Services
• Executive Coaching

Focus on Execution
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My Proposal
Diagnosis on defined Scope of Business Support
Services ? Opportunities for enhanced
operational effectiveness

• Diagnostic steps
• Define Scope of Services
• Identify industry trends and value drivers that
  concerns core business
• Apply business diagnosis framework to assess
  business operations performance
• Determine Quick Wins and show how to increase
  performance near term
• Outline opportunities to improve operations
  performance, value creation and people enablement
• Pinpoint major areas that senior executives
  should focus on and create development plan

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Business Diagnosis Framework
Business diagnosis framework goes beyond
traditional analyses to uncover untapped
potential for value creation.
Shape usageand expectationson services
Customer Satisfaction
IncreaseSelfEmpowerment
Strategy
People
Simplify ServiceModels
Stretchsupply chainvalue
Set the bar onservice leveland costs
Operate againstbenchmarks(Metrics KPI)
Challengeworkplaceconcept
Define culturalchange and journey
Achieve scalableand flexiblecost structure
Processes
Technology
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Results of Business Diagnosis
Pinpoint current performance relative to
benchmarks, enlighten quick wins and show
opportunities leading to operational effectiveness
Cost impact
high

• Understand current performance and opportunities
• Foundation to take actions to achieve industry
  benchmarks and leading edge solutions
• Identified Quick Wins
• Pinpoint major areas that senior management
  should focus on
• Prioritizes actions to achieve near term
  objectives and future repositioning
• Explore opportunities with innovation partner who
  has distinctive experiences

• Quick Wins
• Manage againstbenchmarks
• Adjust SLA
• Stretch sourcing
• Adjust budget and investment plans

• Transformation
• Innovate New Workplace Solutions
• Shared Services
• Self-Empowerment
• Supply chain mgmt

• Enablers
• Scalable and flexiblecost structures
• Cultural change

• Short Term Measures
• Business diagnosis
• Define Benchmarks
• Provide cost metricsand transparency

low
Time
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Value Proposition
Significant change in cost structure and a level
of services which meets competitive market
conditions and client needs
Endeavor
Performance Ratio
Innovative/Stretched
Traditional
1 25
110
Service Ratio- Total services people / Served
people
1 40
lt 20m²/WPgt 60lt 20m²/Person
gt 30m²/WP40gt 30m²/Person
Space Ratio- Space / Workplace (m²/WP)- Space
Utilization- Space / Employee (person)
12m²/WPgt855m²/Person
8000/Personlt 2000 /WP
gt 20000 /Person6000 /WP
Cost Ratio- Infrastructure Services Costs /
Employee- Space Cost / Workplace
3500 /Personlt 1800 /WP
- New Workplace- Shared Services
- Cost Transparency- Long term concepts
Concepts
- Flexible Workplace- Self Enablement
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Journey to Operational Effectiveness
Dramatic transformation of business support
services to cope with market challenges

• Organization needs first to reach new baseline,
  then embark to new innovative solutions
• Continuous improvements are appropriate when time
  is not critical
• Strive to create business value leads to
  significant competitive advantages
• Savings up to 60 from traditional to innovative
  organizations are achievable

Costs
high
Wild Excess!
Extravagance
Expensive
OperationalEffectiveness
Expensive
Restructuring
Innovation
Idle
Value for Money
Ideal
low
low Operational Effectiveness high
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Who I am ..
International executive experienced in developing
and managing complex business operations,
infrastructures and services to perform at peak
level
Management ConsultingSulzer Infra Head Business
Unit 11 years
Management Operations AccentureAssociate
Partner 5 years
Management Operations Swisscom Real Estate Ltd
CEO 2.5 years

• Managing Corporate Real Estate Services
  at Swisscom (Revenue CHF 520m, 400 people)
• Property Facility Management for 2500
  buildings, 40 restaurants for 16000 customers
• Travel- and Mobility Management with 3500
  cars
• Turnaround, restructuring and implementation
  of new strategy.

• Global Director Services Technology. Developing
  and implementing standards, best practices and
  technology solutions covering all business
  support services (USD 200m 3400 people)
• Coordinator Facilities Services Europe, Middle
  East, Africa andLatin America covering
  30000customers (USD 210m 1600 people)
• Director Facilities Services for Austria,
  Switzerland and Germany (USD 35m 230 people)

• Head of business unit Facility Management
  Consultancy. Strategic planning and
  implementation of solutions for enhanced
  infrastructure and services organizations.
• Head Business Development
• Program and project management of building
  technology and construction initiatives

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Credentials Management Consultant
Company Services Result
Analysis of Processes CRE / FM IT Business Architecture / Requirement Concept for Reorganization CRE/FM Cost reduction 75 MDM/a IT Solution implemented
Pilot Service improvement program Concept for Reorganization CRE/FM Benchmarking Programme Cost reduction gt 50 MDM/a Reorganization
Corporate Real Estate Strategy Temporary Management Best practice Programs for CRE/FM Established organization Cost reduction gt 70 MCHF/a
IT Processes Model for FM Business Rental Concept Implemented Solutions
Corporate Real Estate Strategy Transformation Established Organization
Concept to transform internal Sulzer Service providers to an Infra FM Ldt Transformation Established Organization
Creation FM Service Unit (TZB) Cost reduction program for MP (Tenant) New space management concept Established Organization Cost reduction 60 MCHF/a
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Evolution Services .
to achieve operational effectiveness in
Business Support Services and infrastructure
solutions
Costs

• Operational Effectiveness
• Put the pieces together
• Mobilize people
• Improve performance
• Create business value
• Benefit the bottom line

Business Support Services
Business Support Services
Core Business
Core Business
Today
Future
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Attachment
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Service Offerings
Executive management services
Offerings Area BusinessDiagnosis Transformation Management Services Interim- and Project-Management Services
Size Opportunities Take a clear stand Assess Design Business Diagnosis Envision Architecture
Transformation Lead far reaching change Innovate Validate Business Case Strategy Lead Realize Exploit Transformation Create Value and Results
Programs Deploy deliverables Manage Deploy Program Deliverables Programs Manage Deploy Specific Deliverables Projects
Operations Sustain and manage Check Verify Audit Performance Manage Sustain Temporary Manage Service Operations Sounding Board Reinvent Improve Continuous Improvement
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Break down of Scope of Services
Key topics Infrastructure and business services

Workplace Innovative and flexible workplace solutions Safety, health, environmentRisk and security mgmt, insurance for people, assets and revenue streams Office operations hoteling, catering communication,, conferences, infrastructure, etc. Travel servicesAir- and ground, transportation, hotel car rentals, contracting and operations, etc. Supply chain Management Procedures, Policies etc. Self-enablement Applications, Portals, online tools etc.
Real estate and property mgmt requirements, acquisition, finance, program mgmt, portfolio etc. Business Support Secretarial and shared services, service center, creative services, etc. Facility Mgmt Operations, techn. facility mgmt. etc. Corporate housing services, apartment sourcing and operations Procurement strategic sourcing processes, supplier and contract mgmt, reporting, relationship mgmt. Support process and back office applications reservation systems, CIFM applications etc.
Migration and move mgmt, churn mgmt Archive and records mgmt, document mgmt., storage etc LogisticsMail, transportation, goods and services etc. Fleet Mgmt Corporate car programs Means of payment Corporate card, central billing etc. Infrastructure systemsoperations and maintenance
Support Processes Leadership and Management Service Mgmt efficient customer centric service delivery Human Resources recruit, develop and maintain best people Finance Controlling Communication and Marketing
WorkspaceServices
CorporateServices
OfficeServices
MobilityServices
Supply ChainServices
TechnologySupport
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Simplify Service Delivery Models
Adjust service delivery models to cope with the
needs Increase self-enablement and shared
services to achieve operational effectiveness
Costs
e-services
SharedServices
e-services
Teams
SharedServices
Individuals
Teams
Individuals
Today
Future
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Challenge Workplace Concepts
Workplace has a strong impact on performance of
business and people. It illustrates
organizational intent.
Effectiveness Variety of space

• Workplace concepts needs to fitto the business
  it supports
• Workplace concepts are a reflection of leadership
  and culture
• Innovative workplace concepts affects
  significantly the operational effectiveness
• Flexible workplace concepts are leading the way
  to new business models and communities

Flexible
Spacious
Workplace
Traditional
Restack
Efficiency Driving down occupancy costs
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Levers to Operational Effectives
Targets
Metrics

• Workplace (Space)
• Standardized Concepts Fix space costs/
  workplace lt 1800 / workplace
• Corporate Real Estate Strategy Sqf/HC lt 60 sqf/HC
• Cultural Journey Utilization gt 85
• . Sqf/Workplace lt 120 sqf/workplace

• Service Delivery (Service)
• Standardized service model Services HC / Served
  HC 125 .40
• Concept of shared Services Service Costs in
  NR 2.4
• Service Level Agreements Customer
  Satisfaction 9095 very good
• Service Management Variable costs / fix
  costs 6080

• Technology (Technology)
• Consistent Architecture and Infrastructure Consist
  ency gt 80
• High degree of self-enablement portals of
  transaction processes gt 50
• Standardized Applications Common architecture

• Supply Chain
• Comprehensive Procurement policy Savings in
  volume 1015
• Mobility services policy and procedures
  Compliance (suppliers) 8595
• Means of Payment invoices, suppliers
• Procurement Ordering System . Air Travel /
  mileage lt 0.5 /mileage

• Support Processes
• Management Responsibility Dedicated organization
• Workforce / HR Concept Effective cost allocation
• Comprehensive Controlling System Regular reports
• Communication Plan Transparency

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Achieve scalable, flexible Cost Structure
Infrastructure and Business Support Services need
to become more variable and virtual and need a
powerful vision
Fixed
Variable

• Transform service delivery from physical to
  virtual concepts by shared services (call
  centres)
• Balance space assets by more variable and
  flexible space
• Shift service delivery from human to
  technological services (self-enablement)

More Technology
TheTarget
Virtual
LessSpace
Flexible Service Delivery
Physical
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Achievement at Accenture

• Benefits
• Reduced overall business support services costs
  in of Net Revenue (-25)
• Effective space allocation- growth captured at
  level 1997- specifically reduced 120-70 sqf/HC-
  Increased space utilization (45? 85)
• Reduced Net Present Value (NPV)
• Effective Supply Chain- Increased savings in
  total spend- Increased compliance with
  preferred suppliers (35? 80)
• Supportive culture- Increased knowledge
  exchange- Retention of key people- new work
  stile and hierarchy perception
• Great Place to work- Flexible Work Stile
  Concepts
• Effective client centric services - Consistent
  service delivery everywhere and every time
• Operational Effectiveness- Baseline for internal
  benchmarking and search for excellence -
  Operational Discipline Consistency where
  required
• Value for Money

Operational Costs Reduced costs by
principles1.) Share Assets of the company2.)
Choose
Investments Reduced investments by -
Standardized design and fit out - Deployed buying
power
Cultural Change Achieved through- Leadership-
New Workplace (teamwork)
Service Quality Adapted quality by
standardized- Services Delivery Models -
Standardized Technology
Operational Effectiveness Significantly
increased by- Globalization ? Virtualization-
Flexibility on market situation
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My Expertise.
Achieve outstanding results through operational
effectiveness, mobilize and stretch best people
to perform at peak levels

• Lead senior level teams to achieve broad reaching
  organizational, technological and structural
  solutions to complex challenges.
• Building world class business operations,
  facilities, logistics, supply chain and services
  organizations.
• Implement innovative technology solutions,
  increase self enablement in service delivery
  leading to cost effective organizations.
• Manage complex projects including those related
  to properties, workplace, office services,
  travel, procurement, risk management, business
  and administration services.

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Industries Knowledge
Focus on achieving operational effectiveness
according respective industry standards

• Communication information technology
• Life science
• Financial services
• Hospitals
• Government
• Professional services
• Construction
• Consumer market