Achieving our strategic priorities

Achievement of our strategic priorities is dependent upon our company culture of consistent operational success which allows us to attract, develop, motivate and retain talented employees. So what is our culture? Entrepreneurial, pragmatic, with a high level of involvement from senior and executive management and an emphasis on cross discipline teamwork.

How do we maintain our positive culture?

• Through a flat management structure;
• regular and effective communication with an ‘open door’ policy in addition to regular meetings held weekly, monthly and quarterly across the various teams on different aspects of the business;
• by encouraging our people to be innovative, to think outside the box and have a “can do” attitude;
• a disciplined approach – providing clear policies and procedures and instilling a strong sense of responsibility for active risk management;
• a collegiate style, with recognition of a project’s success being based upon the contribution and smooth interaction of every member of the team;
• recruiting high quality individuals with a constructive mindset and valuable experience;
• matching the right people to the right roles and taking action where there are gaps;
• providing well constructed and fair reward systems designed to incentivise superior performance and align employees’ and shareholders interests;
• ensuring continual improvement of the skills and competency of our employees at all levels and across all disciplines through appropriate training and development courses; and
• fostering a friendly environment engendering a strong camaraderie.

Our team

Our team brings together specialist skills used to manage our portfolio on a building by building basis to ensure the achievement of our strategic priorities across the life cycle of our buildings.

Investment management

Our Investment management specialists are responsible for:

• sourcing new assets, sometimes through joint ventures;
• recycling assets out of the portfolio where business plans are complete and further growth is limited; and
• working closely with the Asset Managers and Development Managers in respect of the individual asset business plans.

During the year, we recruited an additional Investment Manager to support our Head of Investment Management in executing our business plans.

Asset management

Our Asset Managers and Head of Leasing are responsible for the net income return of our assets and the efficient day-to-day operations of our buildings. Actively engaging with tenants in respect of their changing needs, they ensure timely discussions in respect of new lettings, renewals and rent reviews. In conjunction with the Development team they help to ensure that vacant possession can be achieved for the proposed timing of our developments, wherever possible relocating tenants to other buildings within our portfolio. Our Asset Managers also involve our Head of Financial Reporting and Analysis, to review the strength of prospective tenants’ covenants. With a growing number of assets under management and a 2.2 million sq ft development pipeline, an additional Asset Manager and Leasing Manager were recruited in the second half of the year.

Part of the way we consider that we are best able to serve our tenants is through our in-house building management team with regular inspections of our buildings to ensure consistently high service levels and, with a dedicated help desk, enable emergency and minor repairs to be undertaken on a timely basis. The Building Managers also liaise closely with both our Health & Safety and Environmental Manager and Facilities Manager who undertake site visits with the Building Managers on a rolling basis. During 2011, an Assistant Facilities Manager was employed to help maintain cleaning and security standards and health and safety performance.

Development

Refreshing the fabric of our portfolio is an essential part of the life cycle of our assets, and our Development team manage this process from small scale refurbishments to large scale redevelopments.

Our Health & Safety and Environmental Manager and Head of Leasing are involved early in the development process to ensure health and safety issues are managed effectively and that tenant requirements are appropriately incorporated into the design of our developments and letting campaigns are timed to ensure maximum impact.

Our Development Managers’ primary responsibility is for the delivery of development projects in accordance with an asset’s business plan which includes managing the design, assessing the viability of the schemes, timely negotiations with the relevant planning authorities and liaising with the Project Managers on the procurement process.

The Group’s Project Managers and Building Surveyors working on both new builds and the Group’s rolling refurbishment programmes are responsible for the procurement process, budgetary and documentary control compliance with all relevant legislation. To help us execute our development programme, two Development Managers and one Project Manager were recruited during the year.

To increase the efficiency of our buildings, the Project Managers and Building Surveyors work closely with the Asset Managers, the Energy Manager and Health & Safety and Environmental Manager to identify where improvements can be incorporated in current works or planned into future works. Each development is also reviewed throughout the project to identify ways to maximise efficiency and promote sustainable resource use. Our Development Accountant works closely with the Development and Project Managers in the monitoring of costs and reporting on the financial performance of Group’s development and major refurbishment projects.

Finance and administration

The Finance team incorporates a variety of roles from pure accounting to the provision of insurance for our tenants and it supports all aspects of the wider business. Our Head of Financial Reporting and Analysis, Group Financial Controller and Joint Venture Accountant ensure timely reporting of the Group’s activities, both internally and externally. Our Head of Tax and Treasury is responsible for the Group’s funding and hedging arrangements. As part of our in-house property management service, our Service Charge Accountant generates the annual service charge budget and reconciliations with input from the Asset Managers, Building Surveyors and the Health & Safety and Environmental Manager.

Our Insurance Manager ensures that our tenants benefit from the economies of scale achieved from our insurance policy buying power communicating with the Asset Managers and the Development Managers as appropriate.

Our Accounts Payable team ensure that our suppliers are paid in accordance with the terms and conditions agreed between the Company and the supplier.

Our Credit Controller carefully monitors the Group’s cash collection and liaises with the Asset Managers where appropriate in respect of individual tenants. With an increasing number of tenants and the intention of bringing the management of the GSP in-house during the course of 2011, we have recruited a Sales Ledger Clerk to help support our Credit Controller. The Tax team is responsible for the Group’s tax compliance and reporting requirements and play a key role in the acquisition and disposal of properties with the Investment Management team.

Our IT team provide support across the Group and are responsible for regularly reviewing the Group’s business continuity plan. Our Company Secretarial team has responsibility for ensuring that proper corporate governance processes are in place for the Group and its joint ventures together with the co-ordination of the Group’s corporate social responsibility activities. The team also has responsibility for all of the human resources related functions of the Group working to ensure that the Group’s policies and procedures and appraisal process are effective.

Retention, remuneration and training

A significant proportion of remuneration for all employees is performance related, based on a combination of a corporate target of the Group’s Total Property Return outperformance against the relevant IPD central London index, and personal objectives, with the intention of aligning the interests of our people with those of the Company and its shareholders. In 2010, following approval by shareholders at the Annual General Meeting, 77% of our employees joined our ‘two for one’ Share Incentive Plan open to all staff. We are pleased that our overall retention rate remains high at 94% per annum, for the year ended 31 March 2011. with 16% of employees enjoying some form of flexible working practices including reduced and variable hours.

Great Portland Estates’ culture is grounded in mutual respect and non-discrimination irrespective of age, disability, gender, race, religion, sexual orientation or educational background. Performance reviews are undertaken every six months. The Company encourages career development through the provision of relevant training with funding and study leave to support professional development, including formal training for professional qualifications, external degrees and vocational skills. During the year to 31 March 2011, £28,264 was invested in formal staff training providing 1,288 hours of training. Training programmes provided during the year included business related topics, sustainability actions, the Bribery Act, key risk areas and personal skills development.

New employees are provided with a structured bespoke introduction to the Group through formal meetings with relevant employees across the teams together with property tours and training in ‘the GPE way’ to help people understand our culture from the very start, which has been well received by those employees joining during the year.

Training statistics

Average number of days training per employee

Year ended 31 March 2011: 2.4

Year ended 31 March 2010: 2.7

Year ended 31 March 2009: 2.4

Average spent on training per employee

Year ended 31 March 2011: £367

Year ended 31 March 2010: £318

Year ended 31 March 2009: £628

Year ended 31 March 2008: £611

Employee engagement and communication

Meetings involving all employees are held on a quarterly basis to keep everyone up to date and involved in the Company’s plans and activities and act as a forum for the Executive Directors to answer questions. Weekly meetings are held both across and within departments to ensure good communication throughout the Group. Meetings with non-office based personnel are also held weekly to ensure their involvement and to encourage the sharing of best practice. Key personnel from the Finance, Asset Management and Development teams are invited to provide their views to the Executive Committee at its weekly meeting on areas such as credit control, marketing to tenants, investment transactions and opportunities and development appraisals and to report on how the relevant risks are being managed. From time to time, Senior Managers are also asked to present to the Board and Audit Committee on a variety of topics. Employees are involved at all levels in the development of the Company’s operating policies.

Download our 2011/12 people sustainability objectives and targets

Download our 2011/12 people CR objectives and targets

Download our progress against our 2010/11 people CR objectives and targets

Download our progress against our 2010/11 people Sustainability objectives and targets

Download our 2010/11 people objectives and targets

Download our progress against our 2009/10 people objective and target