the emcor experience
TRANSCRIPT
The EMCOR Experience Christopher Kehoe – UK Group Executive Director
13th September 2012
EMCOR
Fortune 500 company with c.$6.0 billion revenues (2012:est)
25,000 employees
World’s No. 1 Most Admired Company in the Engineering and
Construction Industry (Fortune Magazine – 2010,2011,2012)
UK – revenues c.$0.8 billion, 4000 employees
60/40 split hard/soft FM – self delivery model
Collaboration
• General: Cooperative arrangement in which two or more
parties (which may or may not have any previous
relationship) work jointly towards a common goal.
• Knowledge management : Effective method of
transferring 'know how' among individuals, therefore
critical to creating and sustaining a competitive
advantage. Collaboration is a key tenet of KM.
• Negotiations: Conflict resolution strategy that uses both
assertiveness and cooperation to seek solutions
advantageous to all parties. It succeeds usually where
the participants' goals are compatible, and the
interaction among them is important in attaining those
goals.
Collaboration Questions
• Is it a set of woolly words ?
• Will it save us money ?
• Will it help our business ?
• What is the real value ?
• How will it effect our culture ?
• Who do we collaborate with ?
• What happens when we want to stop?
Questions – part II
Why does it work here, ………. but not over here ………
What’s in it for me?
Client – “They just don’t get it”
Supplier – “He can’t tell me what it is”
What does it really mean? (££££………….)
“But I’ve been doing this for years!”
Does ‘FM’ need an inflexible framework?
BS 11000 Collaborative Working
Confrontational
Collaborative
Compliant
Co-operative
Value Creation
Mutual Trust
What does it mean for us
• We need a set of behaviours that engenders trust
• We need to have the customer at the heart of our
business
• We need to train our people in customer service
• We need to communicate our values to all our people
• We need to live our Brand
“Making our customers life's easier”
So how has EMCOR responded?
• Key Account Management - a clear process to know
your customer
• Understanding customers’ business drivers, operational
requirements and cost pressures.
• Encouraging a constant focus on “value”, not just “task”
Knowing:
– What their business is about
– What they need
– What they can afford
– What they can’t afford
• Adopting BS11000
EMCOR and BS11000
Founding members - Institute for Collaborative Working (ICW)
Working contributors for the PAS/BS 11000 standard
The only FM organisation to achieve certification (2009)
Unique – our customer focused approach
Builds upon EMCOR Key Account Management programme (Cranfield)
120 KAM ‘graduates’ since 2009
c. 200 ‘MA Sandhurst’ front line managers
2012: >700 through Customer Service Excellence
Heart of our apprentice and graduate programmes
….. and that looks like?
• No man for man marking
• No double reporting
• Flexible annual budget agreements
• Responsive to business change
• Fast dispute resolution
• Open book accounting
• Objective driven
• Taking shared risks
Driving efficiencies through
effective collaboration
Case Study I
• EMCOR/NATS Collaborative journey
• How does it work
• Real value of collaboration
Collaborative Journey
• Pre 2006 Mechanical & Electrical
• 2006 Building & Civils
• 2007 Cleaning & Logistics (Incl. NATS TUPE)
• 2008 Security / Reception
Collaboration
• 2010 Catering / Accommodation Services
• 2011 Corporate Security, Keynsham, Airports SDA
Business Requirements…
“what the relationship must deliver”
NATS
– RPI -2% cost model
– Flexibility on cost / income changes
– Safety Case Requirements
– Carbon Reductions
– Staff Satisfaction Levels
– Intelligent Partner
EMCOR
– Profit (£) / Margin (%)
– Contract Longevity
– Stable or Increased Turnover
– Market Presence
– Diversity of Scope
– Intelligent Partner
Joint Business Plan
RPI -2%….
Commoditisation v Innovation / Value
Race to the Bottom
Culture
200
5
1
OPS
Safety Energy
Awareness
SPM
over
88%
Customer
Satisfaction
One
Team /
Awards RPI -2%
White
Collar
Real Value of Collaboration
Case Study II
• EMCOR/Dept of Health Collaborative journey
• What have we done
• Benefits achieved
The DH Journey
• Hard services provider since 2001
• TFM competitive market exercise - 2010
• EMCOR selected from over 40 providers
• Go live December 2012 ~ 150 TUPE staff
Benefits of approach
• Cost savings in excess of target
• Allowed the DH team to restructure - more
strategic role, stakeholder management
• Accelerated the integration of ALBs
• Space management programme ~ significant
reduction in time to re-locate staff
• Reduction in energy usage
• Improved sustainability – central recycling
scheme
To Close
• Benefits seen by EMCOR
– 15% year on year organic growth
– ‘Key’ customer retention c. $ 1.2 bn
– Sustained improvements in profitability
– Better integration ~ internally, customers, supply chain
• Supported by key initiatives
– Key Account Management (KAM)
– BS11000
– Investment in people development
