(business) Management

Report
2013 Congress
Facilities Management Education
- Issues of Breadth and Depth
Danny Shiem-shin Then
Brief Profile
MSc in Construction Management ( Maintenance Management)
MSc in Facilities Management
Department of Building
1983-1996
MBA in Facilities Management
MSc in Facilities Management
School of Construction and Property
1996-2001
MSc/PgD in Facilities Management
Department of Building Services Engineering
2001-2013
Facilities Management is Complex
Scope –
Type of business –
assets/functions/services
public/private, local/international
Stakeholders –
client, service providers,
users, owners,
consultants, etc
Management –
strategic vs operations
Nature of portfolio –
FM
disperse/concentrated,
age/condition
Organisation responsibilities &
positioning
status – as a profession
& academic discipline
Summary from review of FM definitions:
 Many definitions of FM, they suffer from being too
general or too restrictive to be useful.
 In practice, FM covers an extremely wide range of
activities which need to be managed in such a way as
to positively assist an organisation in achieving its
strategic objectives.
 Given the potential scope of FM, each organisation has
to develop its own ‘working definition’ of FM that is
meaningful and relevant to the organisation’s context.
FM scope can evolve over time as the organisation
grows (+,- or =).
Facilities Management in Practice
What business expects from FM?
FM & Business
Support
•Understand the business you are
supporting – business dynamics
FM & Design
• Understand the product you are
managing – asset management
FM &
Procurement
• Understand the supply market –
sourcing options
FM &
Sustainability
• Greening the built environment corporate social responsibilities
FM & People
• Enabling the users – culture and
expectations (occupancy costs)
© Then(2010)
Educational Provision in FM
From certificate to PhD level.
Already in all continents, but patchy growth in
different countries.
“..At present, the agenda of facilities courses sometimes
appears as uncoordinated or illogically-formed lists, with no
one quite knowing what to put in or what to leave out and
with items sometimes included on the basis of staff
availability or enthusiasms rather than on a clear idea of
overall course structure…” (Leaman, 1992, p.20).
Consideration of breadth & depth
Issues of Breadth and Depth in FM
Breadth in FM
Functions & Services
Competences lists by
professional
institutions like
IFMA, BIFM, FMA –
getting the job done.
Depth in FM
Current practice within
an organisation
Relates to context,
culture and resources +
personal development &
knowledge acquisition +
current FM processes
Issues of Breadth in FM
Design of FM Course Content
Functions/services needed to support the business
operations – getting the job done
Decisions relating to FM actions often rely on
understanding and application of theories and
principles that underpin:
 Economics and finance
 Human relationships and people management
 Technology
 Physical asset management
Issues of Depth in FM
FM Practice & Business Relevance
Current practice within an organisation - relates
to context, culture and resources + how the FM
role is perceived at corporate management level
and actually reflected in organizational
positioning, in terms of level of resourcing and in
value adding potential to the core business
Personal career development & knowledge
acquisition rely on soft skills as much as technical
expertise.
Breadth and Depth in FM
They ought to be related but often not – with
consequences for RE/FM!
Separation of Strategic Management and
Operational Management
Misalignment between Business Needs
and RE/FM delivery
Underfunding in resources for RE/FM lack of professionalism, competences,
inappropriate service levels and poor
asset care
FM as an inclusive practice
Three key related areas in the management of
corporate facilities:
ASSETS
WORKSPACE
SUPPORT
SERVICES
The business of managing assets
The business of space
The business of managing services
All three areas are impacted by technological developments &
people (owners, users, service providers) are at the heart of
decision making.
FM as an inclusive practice
Shifts in management focus
Asset
Management
Maintenance
driven
Portfolio
life-cycle
management
Workplace
Management
Provision of
services
Enabling the
workforce
Service
Management
Managing
transactions
Managing
relationships
FM is about providing appropriate facilities solutions
to meet business challenges
Why FM is strategic? - Understanding Business Drivers
Responding
Corporate
Objectives
To ensure corporate
survival
MARKET
FACTORS
and
CORPORATE
CULTURE
To remain
competitive by
responding to
changes in
technology & new
management
thinking
To plan for
growth(+/-)
Key Management
Initiatives
Specific Measures in
Real Estate / Facilities
Management
• Pressures to reduce
costs
• Need to optimise all
business resources
• Need to adapt and
response to new
emerging
technologies
• Need to response to
new management
approaches
• Need to increase
capacity
 Consolidate real
estate portfolio
 Reduce
occupancy costs
 Review
procurement
strategy
 Re-engineer
current processes
incorporating
technological
development
Traditional Push
Emerging Response
Strategic vs Operational FM
Strategic (Business)
Management focus
 Strategic Business Planning
(corporate strategy)
 Strategic Direction
(implications on business
resources)
 Implications of business
plans on real estate portfolio:
 define demand shifts in
operational property profile,
e.g. location, technological
innovations
 define acceptable assets
attributes and services to
meet operational
requirements
Operational (Asset)
Management focus
 Minimise risks and deliver
acceptable performance
 Proactive management of real
estate portfolio over time
 Implications of aligning real estate
portfolio to new strategic
direction:
 define strategic options to adjust
operational real estate portfolio to
meet new requirements
 define affordable and acceptable
service levels to meet users
expectations
 plan for flexibility in supply
Separation of Strategic Management and Operational
Management – The need for dialogue
Strategic (business) Management:
 Market / Environment Factors
 Management of Change
 Management of Business Resources
Strategic Choice
• Corporate Strategy
• Core / Non-Core Division
Supporting strategies:
Strategic Facilities Planning
Operational (asset) Management:
 Real Estate Dimension
(operational portfolio)
 Operational Dimension
(facilities support services)
 appropriate operational
facilities
 flexibility in supply
Delivery of Facilities &
Support Services
within Business Entity
D
i
a
l
o
g
u
e
S. S. Then (1996)
Drivers for Change and Implications
Trends in Real Estate Management Impact on Facilities Provision
 Growing awareness of the need to manage
physical resource (mix and fit evaluation)
 Concerns with raising occupancy costs
 Long term asset ownership and liabilities
 Need to align real estate resource to
strategic direction
 Environmental concerns (location) and
employee productivity (internal layout)
 Real estate portfolio profile (balance
between ownership and liabilities)
 Optimising location advantages
(national and global)
 Space utilisation (matching supply to
demand)
 Layout configurations (workplace
innovations – tasks and processes)
Trends in Facilities Services
Procurement and Management
Impact on Facilities Services
Delivery and Management





Becoming generalist
In search of economy
Trend towards outsourcing
Partnering and Alliances
Service orientation
 Consider market options
 Flexibility in accommodating changes in
technology & work styles
 Integrated resources management
 Procurement strategies
 Service management
Leadership Issue
Workplace Law (2013)
‘FM’ has always been a catch-all term for
‘things that need to be done to run a building’.
Here are the most popular things that FM
covers from our respondents’ experiences.
Diversity Issue
Workplace Law (2013)
Current Focus on FM Issues
IFMA(2009)
Strategic Facility
Planning Whitepaper
RICS(2012)
Raising the Bar: Enhancing
the strategic role of FM
Raising the Bar: Enhancing the Strategic Role of FM
(RICS Report 2012)
Raising the Bar: Enhancing the Strategic Role of FM
1.
2.
3.
4.
5.
6.
Understanding the vision and strategy of the organisation
Understanding and translating the strategy of each SBU
Understanding and translating the CEO financial strategy for the organisation
Developing and implementing a workplace strategy, aligned with HR and IT
Bridging the relationship between workplace strategy and delivery of projects
Aligning the FM supply chain with FM strategy, and with the organisation as a whole.
(RICS Report 2012)
Raising the Bar
- Enhancing the Strategic Role of FM
Recommendations:
• Senior FM professionals need to be more strategic in their
thinking and actions if the sector is to be considered essential
to boosting company performance and creating high
performance organisations.
• Heads of FM need to demonstrate how FM can directly
impact activities, processes and people in an organisation to
create new strategic value for customers.
• FM needs to become an essential function which can boost
competitive advantage, attract and retain talent and enable
creativity and innovation.
Current Focus on RE/FM Issues
Corenet Global –
State of Industry
Reports
CRE & FM Futures
Forum Reports
(2012 & 2103)
CRE/FM Integrative Model
The Classic CRE/FM Team
The Modified Classic
with Strategy CRE/FM
Team
Source: “Trends in Corporate Real Estate –
The role of strategy.” The Leader.
September/October 2013. pp. 26-29.
Strategic CRE/FM Team
Current Focus on FM Issues - Summary
All the above findings point to a realization:
 of the increased awareness of the
potential value contribution of effective
FM – starting with strategy, rather than
playing catch-up!
of the need to align FM initiatives to
strategic business direction - operational
requirements is a given, understanding the
business is key.
Shift in FM Conceptualization
FM beyond
transactions
About people, investments, assets &
space
FM beyond
buildings
About effective deployment and
utilization of functional spaces within
buildings & enabling users
FM beyond costs
About alignment of supply and
demand, value contribution to core
business, affordability & appropriate
services, and whole-life asset
management
Theming of FM programs
Context of Facilities Management
BUSINESS MANAGEMENT
CORE PROCESSES
SUPPORT SERVICES
FACILITIES MANAGEMENT
BUSINESS RESOURCE BASE
TECHNOLOGY
REAL ESTATE
ASSET MANAGEMENT
PEOPLE
CULTURE
CONTINUOUS IMPROVEMENT & PROCESS RE-ENGINEERING
© Then, 2000
Moving beyond Managing Support Transactions
Scoping of Facility Management
Financial
Management
Space
Management
Operational
Management
Behavioural
Management
Investment
Space
Assets
People
Rental /
Return
Financial Asset
Management
Utilisation
Enhance/Maintain
Asset Value
Interior Design Fit-out &
&
Relocation
Configuration
Maintenance
Management
Users’
Perception
Asset Performance
Building
Enclosure
Structure
Building
Services
Building
Environment
Finishes
OH&S Electrical Plumbing HVAC
Painting
Communication
Transportation
IAQ
Users’
Participation
Building
Grounds
Out
Buildings
Cleaning Security
Users’
Satisfaction
Lease & Property
Management
Roads &
Car parks
Landscaping
Other
Amenities
Visual / Thermal / Acoustics
Fire
Protection
Waste
Disposal
Other
Services
Modified from Quah L K (1998)
FM beyond Buildings
Economics
Financial
Management
SPACE
Building
Asset
Management
PEOPLE
Management
PROCESS
Operational
Management
Technology
Interfaces within Facility Management
© Then, 2000
FM as vector of change within organisations
Adding
Value
Property
People
Meeting
Business
Requirements
Providing
Facilities
Solutions
Technology
FM as Enablers to Businesses
Facilities
Management
Processes
Optimising Costs
Choice
Flexibility
Then (Rev.2001)
FM Context and
Choice
FM
CONTEXT
Fit for Purpose
Source: Then, S.S. (1998)
FM Deliverables
Business Outputs & Market
Environment
FM’s Deliverables as
enablers of business
Appropriate competences
 Appropriate functional
space
 Appropriate services

Providing
facility-related
solutions to
business needs
Business
Context
FM
Roles
FM
FM
Processes
Structure
Competencies
© Then (2001)
What are the implications on FM
Education and Training?
Given the diverse scope of FM activities:
 Do we specialize or integrate?
 At what level?– vocational / tertiary;
sub-degree level /degree / postgraduate
 Who is best positioned to deliver the
education and training? – HEI / Industry
/ specialists
Rationalization as a Graduate Program
Integrated FM – key components
Strategic Components
- business focus
Operational Components
- customer focus
S. S. Then (Nov. 1997)
Strategic Shifts required
in STRUCTURE from
to
Distance from senior management
Low / non-influential
Functionally divide
Predominantly in-house service provision
in PROCESSES from
Reactive, supply-led process
Subservient role, transaction-led
Functionally split, property focus
Patchy knowledge of assets base
in COMPETENCES from
Technical skills
Solving problems
Task-based approach
Internally focus
Close to strategic business planning
Contribute to strategic options
Projects driven
Competitive procurement
to
Proactive, demand-led process
Supporting strategic intent, business process-led
Integrated resources management
Interactive knowledge of operational portfolio
to
Business skills
Providing strategic options
Process-based approach
External comparison (benchmarking)
S. S. Then (Nov. 1997)
Personal Reflections
 The management of physical asset and the
facilities and services within them, being one of
the most under-managed business resources,
offers ample opportunities to add value to
businesses by being more effectively aligned to
business needs.
 Agree with Wagenberg’s assertion:
“..development of FM theory has to take place in
the practical context of FM. … theory proofs itself
in the reality of management of facilities.”
Waganberg, 1997, p6.
37
The Business of Facilities
Management
2013
ASSETS
WORKSPACE
The business of managing assets
The business of space
1999
SUPPORT
SERVICES
The business of managing services
2014/15 ?
Thank you for your attention
Obrigado
FACILITIES
MANAGEMENT
AND THE
BUSINESS OF
MANAGING
SERVICES
©Then S.S. (2011)

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