Tribute to World FM Day 2013

1. TRIBUTE TO WORLD FM DAY Promoting Facility Management Ideals Worldwide June 28th, 2013 “We dedicate this Tribute to Facilities Professionals Worldwide. You truly make every day a better day!”

2. Foreword Kevin Rettle FMP, Director of FM/CRE Market Research & Insights, Sodexo Corporate Real Estate (CRE) executives and Facilities managers have increasingly complex roles in today’s rapidly changing business environment. They are becoming an important part of the strategic planning process for not only the performance of business, but also the performance of people. In addition to managing complex real estate portfolios and enabling technical delivery in the most efficient way, CRE’s and facility managers must also understand how the built environment affects end users. Flexibility is key. Diverse populations and work styles demand a 360 degree approach to workplace management. This 360 degree approach is about bringing individual experiences to life, on-site and off, and delivering performance to the organization and individuals through every transaction. The future of CRE and facility leadership will become one of such experience management, whereby employees are offered an à la carte workplace experience with a menu of services, locations and support. You may see this already in your knowledge workers. They typically come in for a day, three hours, or three days, and may require technology for meetings, need a place to unwind and refresh their creativity, or seek a private space for calls. Today’s facility managers are positioned to ensure the effective delivery of each of these services for an optimal work experience. Tracking, technology, and the integration of key statistics and metrics is also important. As is the ability to interface all functional teams that are involved with the core business and people services. The future is today for the next generation of facility manager. Sodexo, the International Facilities Management Association (IFMA), Global FM, and member organizations across six continents take pause each year in the last week of June to celebrate the facility management profession the world over. This year’s event takes place today, June 28, 2013, and is marked by luncheons, seminars, workshops, and a Tweetup aimed to promote the facility management profession, but best of all it’s a way to celebrate the contributions of our facility managers and tip our hat to this budding profession. I would like to extend a special mention of thanks to each of our contributors to this tribute: Ryan Bellinghausen, BS, Associate Editor of the FMJ, Social Media Coordinator for IFMA; Jay Brand, PhD, MA, BA, Senior Cognitive/ Organizational Psychologist at Haworth, Inc.; Graham Jervis, PhD, Director & Management Consultant at Advanced Workplace Associates; Robert Ratcliffe, Deputy Director, Facilities Management, Aberystwyth University; Michel Theriault, FMP, RPA, LEED AP, Principal, Strategic Advisor in Facility Management Consulting. Without your commitment and dedication to the Corporate Real Estate and Facilities Management profession this body of work would not be possible. Through such collaboration, we are able to advance our industry. Sodexo Facilities Management Solutions and IFMA are proud to play key roles in the future vision of corporate real estate and facilities management through the development of our people, skills, and partnerships. Today, we join the IFMA for World FM Day, a virtual event on Twitter. For a longer discussion, check out the LinkedIn Workplace Experience group to engage in some thought provoking discussions with industry leaders.

3. Your Success is Our Success! We Write with Gratitude for the Role of the Facilities Managers Everywhere World FM Day Overview What is World FM Day? World FM Day is a Global FM initiative to celebrate the importance of the FM profession. It aims to raise the FM profession profile around the globe, promoting facilities management’s ideals, not only within the profession and industry, but also among governments and the general business community. What are its Objectives? 1. To draw attention to the aims, objectives and progress of the facilities management profession around the globe; 2. To highlight the valuable contributions sound facilities management has made and is making to sustainable global communities; productive, safe, healthy and secure work environments; and local and global economies; 3. To give worldwide coverage to the ideals of facilities management, not only within the profession and industry, but also to governments and among the public.

4. Spotlight on Sodexo’s Facility Management Darrel Foster General Manager/Engineering I, Corporate Services, Building Facilities Manager For over twenty-five years Darrel Foster has been a General Manager in Facility Management with Sodexo. With a BS in Political Science and Biology from Xavier University, he started out as a GM in the janitorial and food service industries, and quickly acquired several multi-units. Through the years, he developed into a “go-to” person for the training of new GMs in Facilities Management, and currently he oversees four facility units in Houston, Texas and the surrounding area. Ongoing training through Sodexo University keeps Darrel current with industry trends. At his main location in Houston, Foster created significant savings by reducing wattage in overhead lighting throughout the two-story, 93,000 square foot building. In 2010, along with his colleagues, Foster won Sodexo’s Spirit of Progress Award. Foster predicts that FM will soon be the number one job in the country, since more and more companies are outsourcing managers to come in and run their businesses. This trend will require tomorrow’s Facility Manager to be a well-rounded individual who takes ownership of a broader scope of responsibilities, including janitorial and housekeeping services, maintenance, HVAC, nurturing vendors, building renovations and more. Danielle Jones HQ2 General Manager and Client Liaison at the IMF Danielle is a LEED Accredited Professional, with a Master of Environmental Studies. Her studies include environmental effectiveness and energy efficient implementation with a specific focus on fiscal payback period and marketplace advantages. Prior to coming to the IMF, Danielle served as a Commercial Property Manager for Akridge Real Estate Services where she oversaw implementation of LEED policies. She served as Project Manager at a LEED EB:OM Gold facility and two trophy-class commercial properties. As the General Manager for the IMF, Danielle liaisons with the IMF Facility Management team, and she is responsible for the overall operations of a Class A, 1M S.F. office building located two short blocks from the White House. These operations include hard services, appearance care/janitorial and tenant services with a strong emphasis on sustainability and energy management. Danielle is afforded the unique opportunity to enhance the IMF’s sustainable practices and to integrate these practices across the broad scope of services. These efforts and opportunities led to a 6.5% energy reduction in her building since September 2012 and the completion of LEED EB:OM Platinum for HQ2 in April 2013. She believes that sustainable practices inherently increase efficiencies, decrease waste, reduce energy outputs and enhance the overall experience for the Client. Danielle believes that the future of facility management will include an integrated, sustainable approach that will ultimately enhance the work place experience for our Clients.

5. SHIFTING FROM MAINTENANCE TO MANAGEMENT IN FACILITIES MANAGEMENT – BUSINESS SKILLS VS. TECHNICAL Michel Theriault FMP, RPA, LEED AP, Principal, Strategic Advisor in Facility Management Consulting The modern Facility Manager needs a slightly different mix of skills to navigate not just within the profession, but within their own organizations to be successful, especially if they want to become the Head of FM, whether for a small organization or a multi- national corporation. The FM Knowledge Grid illustration (see a larger one further below) shows the necessary progression of skills, shifting the focus from technical to business skills (including leadership, strategy and management) As my FM Pie illustrates (visit my website for your copy of the FM Pie), there is a broad range of functions and scope in the Facilities and Property Management industry and not everyone will or even wants to take on the more all-encompassing role of Head of FM, but even so, everyone can benefit from more of the business skills to leverage what they already know and improve results and enhance the profession. When I say Head of FM, I’m talking generically, since the actual titles can range widely from job titles without Facilities even in the title to Facility Manager, Director, Vice President, etc. The title is less important – it’s the overall role and scope that the Head of FM refers to. As a profession, we are still working on this issue, with spotty success at specific organizations and with specific Facility Managers. We haven’t really arrived as a well recognized profession yet in the corporate world. Unfortunately, the message in the Juggler Videos produced by Hayworth in the early 90’s is still valid. You can benefit from this shift in the profession and advance your career by developing your business skills, either through training provided by your organization, or on your own. Your colleagues in your organization (in HR, Finance, Marketing, Production, Sales, Research, etc.) probably are a step or two ahead of you. To compete for scarce resources within your organization and be an advocate for your team and your profession, you need to be at the same or higher level of business skills that they do.

6. The shift is happening naturally, but it could use a little more of a push and our profession needs to develop. Associations and their related designations, Universities and their Facility Management programs and a concerted effort by the leaders in our own industry will help, but ultimately, those working in the Facilities industry, whether they have the FM title or not, are one of the most important part of the development of our profession – by demonstrating our strategic value to our organizations. The profession is a complex one these days, requiring us to be the jack of all trades, yet seldom a master of them. That’s not a problem as long as we have the experts to draw upon. Take a look at my FM Pie to get the full range of skills, expertise and competencies needed in the Facilities Management profession. The shift we need is a shift from a maintenance approach to a business approach, not just in how we manage, but in how we are perceived. This diagram illustrates the transition needed to business skills as you advance in your career. Most FM’s who have reached the ‘Head of FM’ position, regardless of title, have a broader range of these business skills. If you want to get there, or simply improve results related to your own role, you should also make the shift. The FM Knowledge Grid From Technical to Business As you gain increasing scope and responsibility, your business skills become much more important for achieving results and advancing your career than your technical skills.

7. Facilities Management: A Strategy, not a Tactic James Ware, Ph.D. Founder and Executive Director of The Future of Work… Unlimited, Global Research Director for Occupiers’ Journal Limited, & a Partner with TheFutureWork Forum Paul Carder Co-founder, Managing Director, & ‘Chief Networking Officer’ for Occupiers’ Journal Limited, Founder/Publisher & Editor, “Work & Place, ” a publication of Occupiers’ Journal There have been many assertions, over many years, that Facilities Management (FM) should be more strategic. Recent research provides evidence that FM can have a strategic impact, and should play a strategic role in the enterprise, but whether it will achieve that level of influence in any particular organization depends entirely on the actions taken by senior FM executives. To be effective, FM leaders must change their behaviors, and indeed their very identity. FM is no longer just about managing facilities per se; rather, it is about enabling the workforce to be productive and engaged, and to produce value for the organization. In our view, and in the view of leading FM executives, today’s workplace is nothing less than a tool for supporting work, for shaping the experiences of the workforce, and for producing competitive advantage. It is clear to us that to be effective and to serve an organization’s real estate and business needs, FM leaders must work on a number of multi-disciplinary relationships within their organization. They must focus on gaining the buy in needed to provide coordinated workforce support from all the infrastructure functions. The overarching goal must be to achieve a deep common understanding of the strategic imperatives of the organization as a whole. Some FM leaders may “Raise the Bar” by managing multiple infrastructure functions in shared enterprise support teams (or similar). In doing so, their role becomes more strategic and their career paths will see new doors opening if they can more clearly articulate and communicate this broadened scope across their organization.

8. What stands in the way of “Raising The Bar?” In our experience, the “Head of FM” – a generic title for the senior functional executives who are ultimately responsible for facilities, corporate real estate and workplace in their organizations – is often poorly led from above. Not nearly enough thought goes into considering an organization’s business strategy and how to translate it into tangible targets and actions for facilities operations. We rarely ever see organizations map out a cause-and-effect chain to guide FM strategy, which is why heads of FM are so often told to cut (or freeze) their budgets without reference to the causal chain of consequences to the workforce, to work processes and productivity and to the bottom line. Without understanding the consequences of these budget cuts, FM has all too often become a commodity rather than a professional skill in many organizations, to be maintained at lowest cost. Worse still, the FM industry does not yet have the sophistication to be able to analyze and report on the consequences of lowered standards and reduced (or lower-cost) resources. It could be said that the FM industry knows the cost of everything, but the business value of little. This is a recipe for continuously lowering the bar rather than raising it. What has brought about this unfortunate reality? We believe that senior business executives and Heads of FM should be asking the question of; How can we help the organization succeed at the highest levels, meaning how they can assist with attraction and retention of employees, and how they can enhance the image value of the business as a whole. Being, or becoming, strategic Does it make sense to think of FM as a strategic resource? Is “operational strategy” an oxymoron? To have a strategic impact, an activity or capability must differentiate the business from its competitors. It is worth noting that in some industries (retailing comes immediately to mind) the facilities are absolutely central to brand strategy and to generating business revenue. Operations, including facilities, can clearly help an organization be competitive in the marketplace. But the key idea is differentiation. It is not enough just to have lower-cost facilities than your competition. The questions that must be asked relate to how well your facilities/workplace strategy contributes to your business strategy. Is facilities management aligned with the requirements of your business units, in the locations where you need to be? Do your facilities support your talent recruiting and management strategies? Are the workplace designs consistent with the business technology needs and strategy? Does the facilities cost structure support the company’s financial strategy and cash flow requirements?

9. Perhaps even more importantly, facilities managers have to ask themselves this very basic question: What is the facilities function doing to strengthen the company’s strategic positioning with customers, with employees (and prospective employees), and with the communities where we are located or want to do business? Summary of Findings Our recently completed survey received responses from almost 400 FM professionals in over 40 different countries. The survey revealed that: 1. Facilities are increasingly being recognized as a strategic resource; 2. However, FM has had mixed success achieving strategic alignment with other elements of the business; 3. Large, global organizations face dramatically different challenges than smaller, more local businesses—and they manage their facilities very differently; 4. Financial metrics and cost control continue to dominate FM; 5. Heads of facilities are still buried in day-to-day operational concerns; and 6. FM career paths are undergoing significant change, and the FM profession faces a potentially serious future talent shortage. The global survey has provided us with unprecedented insight into the current views of FM professionals and where the gaps are to move the profession ahead in the future. FM’s future is one that will play a more strategic role in business decisions and business outcomes than ever before. It is time for a broader opportunity for our discipline to educate, inform and advise the future direction of the workplace and the workforce. © Copyright 2012 by Occupiers Journal Limited. All rights reserved. For a full discussion of the survey and its findings, the article in its entirety can be found in Sodexo’s Workplace Trends 2013 Report. 2 0 1 3 WORKPLACE T R E N D S WORKPLACE T R E N D S WORKPLACE T R E N D S INNOVATIONS 2 SOLUTIONS

10. The Evolving Role of the Workplace Professional in Employee Well-Being & Organizational Success Originally published in “Work & Place,” a publication of Occupiers’ Journal Debra Dailey Vice President of Human Capital Solutions and Outcomes, Sodexo Rebecca Scott Research Fellow & Communications Specialist, Sodexo Today’s business environment is rapidly becoming more global, information-based, and technologically- advanced in support of the emerging knowledge economy, and companies must also evolve if they are to keep up with these trends. With “business as usual” a thing of the past, employers are beginning to understand that one of the key components for maintaining their competitive advantage is the acquisition and retention of a healthy, productive, and highly-engaged workforce. The shifting dynamics of the workplace and workforce are motivating employers to seek out new ways to maximize their employees’ health and productivity, and many have identified the current work environment as being inhibitive of the realization of these goals. As a result, a new type of work environment is increasingly being demanded – one that effectively supports the convergence of employees’ workstyle and lifestyle needs in order to promote better well-being, improved job performance, greater pride in the company, and ultimately organizational success. The role of the workplace professional is being elevated to a new level of importance In response to changing organizational needs and employee demands, the role of the workplace professional – including the Corporate Real Estate (CRE) Executive, the Facility Manager, and the entire industry focused on delivering value to corporations through the strategic management of corporate real estate and workplace resources – has expanded to include a much broader scope of responsibilities and an entirely new set of priorities.

11. A 2012 poll of nearly 200 corporate real estate and workplace executives revealed that the most urgent issue facing their industry is the “quality of working environments and work experiences, ” closely followed by “energy conservation and alternative industries.” Likewise, a study conducted by Today’s Facility Manager confirmed the widening role of the facility manager, and found that many FMs indicated “a strong shift towards more flexible office design, the shrinking footprint of the traditional workstation, and more space being allocated to teaming and common areas that support open communication and collaboration as well as learning spaces.” No longer restricted to the typical domain of their occupations, both the Corporate Real Estate Executive and the Facility Manager increasingly find themselves called upon to help pave the way in the conceptualization and creation of this new type of work environment. These professionals have not merely been assigned a new set of responsibilities, however – they have also been given the task and opportunity to contribute to an organization’s strategic operations, business success, and competitive advantage. Furthermore, CRE executives and FMs increasingly play a vital role in bringing together key cross-disciplinary resources and teams from across the organization to address the requirements of the new work environment. The built environment directly affects employee engagement and productivity Research conducted in office buildings provides compelling evidence on productivity gains (or losses) of up to 15% due to indoor environmental conditions. To a large degree, facility managers control many aspects of the work environment, and therefore can significantly influence employee engagement and ultimately company success. Tim Parker, MSBA, emphasizes that “employees bring to the workplace an individually developed and unwritten set of expectations, setting a benchmark of how they want to be treated and cared for by the company.” One of the basic job duties of the facility manager is to oversee daily operations, and the FM should be mindful of the fact that when buildings appear run-down or outdated, employees may form a negative attitude towards the company. This problem is often further exacerbated by excessive workplace distractions, poor service from support staff, or a lack of basic amenities like onsite cafeteria options. “Employees perceive the lack of attention in these areas as a direct reflection on senior leadership, ” Tim notes, “and their engagement and performance suffer as a result.” Employee health and well-being can be enhanced (or harmed) by the work environment According to the American Institute of Stress, U.S. industries lose nearly $300 billion a year – or $7,500 per worker – in employee absenteeism, diminished productivity, employee turnover, and direct medical, legal, and insurance fees related to workplace stress. Facility managers can directly improve the physical well-being of employees by changing aspects of the ambient environment, specifically air quality, ventilation, thermal comfort, lighting, and acoustics. Psychological well-being is also affected by these modifications, and can be further enhanced by better quality of artificial and natural light, the provision of views of the outdoors, proper use of color and furnishings, adequate workspace, and ergonomic work stations.

12. The built environment should support the lifestyle needs of today’s workforce The needs of today’s workforce encompass more than just a desire for a health-promoting environment, however – employees are increasingly seeking more substantive solutions and services to address lifestyle improvement and behavior change. Both the Corporate Real Estate Executive and the Facility Manager clearly play an integral role in the design, construction, and management of amenities like onsite fitness centers and clinics. However, these professionals can also contribute to the promotion of a healthier workforce by creating opportunities and spaces that foster better employee well-being and create a more exemplary workplace experience. For instance, together the CRE and FM can advocate for and design vitality, relaxation, and innovation zones for employees, and work towards the provision of healthier dining and vending options. Employees have different workstyles that need to be accommodated – FM & CRE can help Employees in today’s knowledge economy are also progressively demanding that organizations support an entirely new workstyle – one that fosters innovation, learning, and creativity, and requires flexibility, multiple places to work, and the ability to connect and socialize with peers. The Corporate Real Estate Executive and the Facility Manager play a pivotal role in adapting a company’s physical workplace to the changing workstyle needs of its employees. The FM can directly affect employee focus by reducing distractions and interruptions in the work environment, while the CRE executive is often charged with finding creative solutions for building design and usage so that more space can be allocated to teaming and common areas that support open communication and collaboration, as well as learning spaces. Creating the optimal work environment requires the integration of workplace solutions and the unification of cross-disciplinary teams When workplace solutions form an integrated system – and especially when they are delivered and managed by a single source – the optimal synergistic impact can be achieved. While the Corporate Real Estate Executive and the Facility Manager are often entrusted with many responsibilities pertaining to workplace improvements, these professionals cannot fully address the built environment without the support and resources of other cross- disciplinary teams within the organization. In bringing these teams and resources together – and oftentimes leading the movement for workplace improvement – today’s workplace professionals can truly influence the well- being of employees and the success of the organization in a very significant way.

13. Knowledge is Power Successful executives make informed decisions requiring data and insight at their fingertips. The Innovation & Insights mobile app by Sodexo, is the single source of emerging thought leadership for Corporate Real Estate, Facility Management, Human Resources, and Supply Management professionals. Search Sodexo Workplace (http://bit.ly/Sodexoinsight) This free download is the first of its kind, with content focusing on the future of work, including drivers of the human-centric aspects of facilities management. www.sodexoUSA.com http://bit.ly/sodexosolutions | solutions@sodexo.com | 888 SODEXO7 © Sodexo

14. 888 SODEXO7 www.sodexoUSA.com solutions@sodexo.com