Day: July 29, 2018

Since assuming the role of PRSM CEO in September 2016, we’ve experienced two PRSM National Conferences (Dallas and Nashville), two Mid-Year Conferences (Schaumburg and Indianapolis), multiple R2R Best Practices Roundtables and countless other PRSM programs. I learned a lot during these first 18-plus months. And, by and large, PRSM is succeeding in a chaotic environment for brick-and-mortar retail facilities management.

Initially, as CEO, I focused on an Educate, Evaluate and Elevate agenda. My education will never cease, nor will my evaluation of PRSM and its programs. Organizations never stay the same. They improve or they decline. Post PRSM2018, it’s safe to say, PRSM is improving. PRSM2018 was a record-breaking event exceeding both financial and experiential goals.

So, for the time being, PRSM is elevating. But, the march never ends. And, in some ways, the challenging work is just beginning. The May-June issue of Harvard Business Review contains a fascinating article, which certainly applies to PRSM circa 2018: “How Successful CEOs Manage Their Middle Act.” PRSM Association is about to enter this phase under my tenure as CEO. The article outlined five strategies employed by CEOs who successfully navigated their middle act, which is the part of a CEOs tenure after an initial “get to know you phase.”

1. Raise PRSM’s Level of Ambition. Let’s build upon the success of PRSM2018. This will involve growing PRSM across its membership base of retailers and suppliers. The Board of Directors and PRSM HQ Team are making strategic moves to keep PRSM ahead of the changing retail environment. The most visible changes will be in the implementation of a new, five-year strategic plan.

2. Attack Silos and Broken Processes. While PRSM embarks on its new, five-year strategic journey, we will also continue to improve operational processes. PRSM adheres to a Policy Governance framework that aligns the board in a strategic stance and the PRSM staff in an operational mode. PRSM is now in the third year of this framework.

3. Rejuvenate Talent. The PRSM HQ Team is extremely talented and experienced. In 2018, you will see some fresh faces at manager and senior manager levels take on increased responsibilities and gain PRSM-wide visibility.

4. Create Mechanisms for Disruptive Ideas. Now that we have gotten to know each other, I will remain vigilant that member feedback reaches my office, and that I will explore innovative ideas to improve PRSM. The most direct way to communicate with me is through voice@prsm.com. Every email to this address is responded to and I review all issues identified.

5. Invest Political Capital in Long-Term Bets. Association change does not occur overnight. Our PRSM2023 Strategic Plan will take years to play out. However, the strong operational and financial condition of PRSM affords us the luxury of making decisions with a long-term perspective.

This issue. The five strategies above are a proactive way to manage the threat of complacency once the shine of a leadership transition wears off. Much the same can be said in the FM industry, whether it is a new client partnership or a relationship that spans years. Those companies who approach operations and relationships proactively succeed more than those who are reactive. Inside, you will see how being proactive can impact the FM industry.

There is no facility manager who prefers a chaotic approach to facility maintenance versus an organized one, but the reality is that FM staffs often find themselves scrambling to handle emergencies. The complexity of the FM role doesn’t always leave time for planning ahead. However, successful FM organizations have preventive maintenance programs in place to minimize air conditioning failures in the middle of the summer, or other similar emergencies, including well-designed reactive programs for unpredictable emergencies.

Tom Buiocchi, Executive Director and CEO of ServiceChannel, and Kevin Smith, Chief Operating Officer of Ferrandino & Son, were asked to describe some of the trends and best practices they’ve observed.

Q: How does a retail FM balance proactive and reactive plans?

Buiocchi: “Our customers run both proactive programs, such as planned, scheduled maintenance, as well as more reactive programs to handle emergency programs. Our more forward-thinking customers make sure to emphasize planned maintenance as much as possible across their locations.”

Smith: “The best programs offer an element of both. Proactive allows for day-to-day brand maintenance and reduces the out-of-pocket spend. Structured reactive maintenance with a thought toward long-term budgetary goals provides balance on cost while tackling the larger projects that simply don’t fit into a preventative program.”

Q: How has technology improved an FM’s ability to be proactive?

Buiocchi: “By analyzing data across stores, they often are able to identify trends and see where there’s a pattern of reactive work. For example, they can see if it’s a particular equipment model that’s failing. With that information, they can proactively service those models ahead of time or even replace them to eliminate continued failure elsewhere. The Internet of Things (IoT) is also impacting maintenance. With more equipment internet-enabled or integrated with connected devices, FMs can get automated warnings of sub-optimal operating conditions and take proactive action before facing expensive equipment downtime.”

Q: What are the most important programs You’ve seen in recent years?

Smith: “We have seen a trend in building landscaping budgets in three-year terms, and identifying traditional out-of-scope spend like high tree trimming, retention pond maintenance or capital improvements. A rolling three-year budget is developed with this information. Clients have captured a larger share of capital spend for their facilities through better planning, strategic pricing and better developed project plans for their properties.”

Q: What are the most important reactive FM programs?

Smith: “For our company, it has to be snow removal. While snow removal is always categorized as a facility program, it truly is disaster recovery where service failure prevents stores from opening and can risk the safety of employees and customers. Other service programs, like HVAC, could argue that if a store is 110 degrees, nobody will shop there — and that is probably true. However, no one will be injured in this situation and they could still stay open. So from a safety and store operations perspective, snow removal is the most critical.”

Q: How can a reluctant store manager be convinced to spend proactive money now to prevent larger reactive expenses later?

Buiocchi: “Our FM customers can show reports to store managers that compare planned maintenance vs. emergency repair. By analyzing those locations that spend proactive money, it’s often apparent that they’re reducing the likelihood of larger reactive expenses in the future.”

Smith: “If I knew the answer to that, our company would be three times larger than we are now! The best way to approach it is to simply lay out in detail the value proposition of both scenarios. However, the challenge is typically in companies where enterprise decisions involve 10 to 15 decision makers. We typically don’t have access to that group, so our ability to turn the ship is often limited to educating those on the front lines — our facility partners that we work with every day.”

Q: Is there a typical range of how much of a maintenance budget should be used for proactive maintenance? Is it based on store size, volume, other?

Buiocchi: “It really varies based upon customer and store type. Similar sized stores can have varying traffic and different equipment levels, which leads to vastly different maintenance obligations. Once retailers are able to analyze their spend appropriately, most move more toward proactive, because it becomes easier to justify such spend quantitatively against greater and inconsistent reactive spend.”

By: Sheryl S. Jackson

It takes a village to maximize store design

It’s no secret store design can make or break a retailer. Not only does a brilliant design have the power to entice shoppers to step inside, but a clever layout can also encourage shoppers to browse for longer periods of time and ultimately purchase armloads of products. However, effective store design is about much more than eye-catching displays, well-placed lighting and other aesthetics. It’s also about reinforcing the retailer’s brand image, creating a memorable customer experience and minimizing overall operating costs.

Of course, creating and implementing a winning store design is easier said than done. With so many moving parts, this formidable feat requires a team effort between facilities management, suppliers, store operations personnel and other vendors.

“When it comes to maximizing store design, I think communication is key,” emphasized Steven Spencer, Global Procurement for Forever 21. “It all starts with a good owner.”

Whether you’re undertaking a refresh or a full-blown remodel, here are some tips to optimize store design through careful collaboration.

Tip #1: Clearly Define the Scope of Work

Spencer says effective store design begins with identifying the scope of work, which means clearly defining the who, what, when, where and how.

“Properly identifying the ‘scope of work’ enables the identification of the activities and tasks involved in separate work packages and their relationships to one another and the end-product,” he explained.

Tip #2: Speak the Same Language

Optimizing store design involves an array of professionals, from FMs and architects to suppliers and store operations specialists. With so many different team members from a wide range of industries, messages often get lost in translation. This is why it’s critical for everyone to speak the same language.

“Store Design and Architecture need to consistently understand and communicate the Scope of Work using an industry standard, universally understood language: the Uniformat II and AIA Masterformat CSI WBS,” Spencer said. “The adoption of this ‘industry standards mutual language’ ensures everyone inside and outside the company is on the same page.”

Spencer says these tools are essential to succeeding in retail. “This communication system is the most powerful companywide management tool because it provides the basis for planning, leasing, scheduling, estimating costs, configuring, procuring, monitoring, reporting, directing and controlling projects,” he explained.

Tip #3: Rally the Team

Again, optimizing store design requires coordination between a variety of team members. To foster a collaborative environment, Spencer says it’s critical all team members to treat each other fairly and professionally. “Treat all vendors with respect while requiring the same treatment,” he said. “They are in reality an extension of your team.”

He also offers this invaluable advice: “Write clear contracts, using very specific language instead of generalizations. Also, demand prompt invoicing and pay all contractors promptly, per your contracts.”

He says a web-based retail designed maintenance system will also prove helpful for these types of projects. “This allows you to schedule reoccurring and preventative work, track maintenance requests, work status, closeout and payment,” he explained.

Last but not least, keep the lines of communication open with operations employees. “Make it easy for operations  staff to ask for help – they have a difficult job already,” he said.

Tip #4: Hold Frequent Team Meetings

When tackling a store design project, it’s essential all team members meet as frequently as possible. “Contractors and vendors should meet often with the owner’s entire team,” Spencer emphasized. “Invite each other to meet regularly to discuss the hot topics, new ideas and technology and trends that are happening in our industry.”

Last but not least, take time to form connections with other industry professionals – even when you’re not working on a major store design project. “Network, network, network,” Spencer advised. “Grow those personal relationships. The place to do that is PRSM!”

By: Amy Bell

Choosing the best cleaning tool for the job saves time and money

Did you know there are three kinds of dirt in your store? Bob Robinson Jr., VP of Sales for the Hamilton, Ohio-based cleaning equipment manufacturer Kaivac Cleaning Systems, knows a lot about each of them, which is why he said facilities managers should choose the right kind of cleaning tool for the task at hand.

Loose dirt is the stuff that accumulates from everyday things like dust, foot traffic, opening doors and handling boxes. Stuck dirt is just that – a mess such as spilled soda that sticks to the floor. Embedded soil is the gross stuff that accumulates over time due to inadequate cleaning practices and can lead to the extensive cleaning projects that drain FM budgets.

Robinson said a daily cleaning program is essential for retail stores, but using cleaning equipment such as a floor scrubber based on a set schedule and not on need can lead to unnecessary floor damage.

“The auto-scrubber really isn’t made to remove loose dirt, so it will streak it or move it around, and it grinds away and scratches the floor finish. Then, it requires we burnish the floor, and all we were trying to do in the beginning was remove loose dirt,” Robinson said. “By using the proper tool for the soil that we’re trying to remove, we save a lot of money by not having to recoat floors.”

Here are two more tips for keeping stores clean:

• Stop the mop. Robinson said Kaivac’s “Stop the Mop” marketing campaign aims to make FMs aware that mops were invented for two things – and cleaning your store isn’t one of them.

Mops originally were used to swab the decks of wooden ships and to spread tar on rooftops, Robinson said. By spreading saltwater across the deck, a ship’s crew could keep the wooden boards swollen and tightly pressed together instead of allowing gaps to form as wood dries out. That’s a really good idea when you’re trying to cross an ocean, but since your store hopefully isn’t taking on water, Robinson said you should relegate the mop to the ash heap of history – just don’t expect it to clean it up.

“Somehow, we decided that this great spreading tool was going to be a great soil-removal tool, and it’s not,” Robinson said. “Mops give germs a free ride around the building, they stay wet, they harbor bacteria, and they move soil around but don’t remove it. They don’t work, they’re gross, and no one likes to use them, so let’s stop it and use tools that focus on recovery and removal of soil.”

Robinson said spray-and-vacuum systems, which use a cleaning solution that briefly settles on the floor before being vacuumed up, are preferable because they actually collect the dirt.

• Equip your employees and spread the responsibility. Store employees typically know they should clean up a spill in a busy aisle, but too often, store managers leave the cleaning to vendors instead of being more proactive, Robinson said. By providing employees with the proper cleaning tools, FMs can keep their stores sparkling from open to close.

“We rely on our contract cleaners, but most of the time, they clean at night, when no customers are in the store,” he said. “But what about when customers are there? The best practice is to use your staff to do light-duty cleaning functions because that’s when it matters most – when the customers are in the store – so give them simple and effective tools that they can use.”

By: Nick Fortuna