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Danny Shiem-shin Then Facilities Management Education - Issues of Breadth and Depth 2013 Congress.

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Presentation on theme: "Danny Shiem-shin Then Facilities Management Education - Issues of Breadth and Depth 2013 Congress."— Presentation transcript:

1 Danny Shiem-shin Then Facilities Management Education - Issues of Breadth and Depth 2013 Congress

2 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

3 Facilities Management is Complex status – as a profession & academic discipline Organisation - responsibilities & positioning Stakeholders – client, service providers, users, owners, consultants, etc Management – strategic vs operations Scope – assets/functions/services Type of business – public/private, local/international Nature of portfolio – disperse/concentrated, age/condition

4  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 =). Summary from review of FM definitions:

5 Facilities Management in Practice Understand the business you are supporting – business dynamics FM & Business Support Understand the product you are managing – asset management FM & Design Understand the supply market – sourcing options FM & Procurement Greening the built environment - corporate social responsibilities FM & Sustainability Enabling the users – culture and expectations (occupancy costs) FM & People © Then(2010) What business expects from FM?

6 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

7 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

8 Issues of Breadth in FM 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 Design of FM Course Content

9 Issues of Depth in FM 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. FM Practice & Business Relevance

10 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

11 FM as an inclusive practice The business of managing assets ASSETS The business of space WORKSPACE The business of managing services SUPPORT SERVICES All three areas are impacted by technological developments & people (owners, users, service providers) are at the heart of decision making. Three key related areas in the management of corporate facilities:

12 FM as an inclusive practice FM is about providing appropriate facilities solutions to meet business challenges Asset Management Maintenance driven Portfolio life-cycle management Workplace Management Provision of services Enabling the workforce Service Management Managing transactions Managing relationships Shifts in management focus

13 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 To ensure corporate survival To remain competitive by responding to changes in technology & new management thinking To plan for growth(+/-) MARKET FACTORS and CORPORATE CULTURE Specific Measures in Real Estate / Facilities Management Key Management Initiatives Responding Corporate Objectives  Consolidate real estate portfolio  Reduce occupancy costs  Review procurement strategy  Re-engineer current processes incorporating technological development Emerging Response Traditional Push Why FM is strategic? - Understanding Business Drivers

14  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 Strategic (Business) Management focus Operational (Asset) 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 Strategic vs Operational FM

15 Separation of Strategic Management and Operational Management – The need for dialogue Strategic Choice Corporate Strategy Core / Non-Core Division Supporting strategies:  appropriate operational facilities  flexibility in supply Delivery of Facilities & Support Services within Business Entity Strategic Facilities Planning Strategic (business) Management:  Market / Environment Factors  Management of Change  Management of Business Resources Operational (asset) Management:  Real Estate Dimension (operational portfolio)  Operational Dimension (facilities support services) DialogueDialogue S. S. Then (1996)

16 Drivers for Change and Implications  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 Real Estate Management Impact on Facilities Provision 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

17 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.

18 Diversity Issue Workplace Law (2013)

19 Current Focus on FM Issues IFMA(2009) Strategic Facility Planning Whitepaper RICS(2012) Raising the Bar: Enhancing the strategic role of FM

20 Raising the Bar: Enhancing the Strategic Role of FM (RICS Report 2012)

21 Raising the Bar: Enhancing the Strategic Role of FM 1.Understanding the vision and strategy of the organisation 2.Understanding and translating the strategy of each SBU 3.Understanding and translating the CEO financial strategy for the organisation 4.Developing and implementing a workplace strategy, aligned with HR and IT 5.Bridging the relationship between workplace strategy and delivery of projects 6.Aligning the FM supply chain with FM strategy, and with the organisation as a whole. (RICS Report 2012)

22 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.

23 Current Focus on RE/FM Issues Corenet Global – State of Industry Reports CRE & FM Futures Forum Reports (2012 & 2103)

24 CRE/FM Integrative Model Strategic CRE/FM Team 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.

25 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.

26 Shift in FM Conceptualization About people, investments, assets & space FM beyond transactions About effective deployment and utilization of functional spaces within buildings & enabling users FM beyond buildings About alignment of supply and demand, value contribution to core business, affordability & appropriate services, and whole-life asset management FM beyond costs Theming of FM programs


28 Moving beyond Managing Support Transactions Financial Management Space Management Operational Management Behavioural Management Financial Asset Management Rental / Return Enhance/Maintain Asset Value Asset Performance Users’ Satisfaction Users’ Participation Maintenance Management Lease & Property Management Utilisation Interior Design & Configuration Fit-out & Relocation Building Enclosure Building Services Building Environment Building Grounds StructureFinishes Cleaning Security IAQ Visual / Thermal / Acoustics Out Buildings Roads & Car parks Landscaping Other Amenities OH&S Electrical Plumbing HVAC PaintingFire Protection Waste Disposal Other Services Investment Space Assets People Communication Transportation Modified from Quah L K (1998) Users’ Perception Scoping of Facility Management

29 SPACE PEOPLE FM beyond Buildings Economics Building Management Technology PROCESS Financial Management Asset Operational Management Management © Then, 2000 Interfaces within Facility Management

30 FM as vector of change within organisations Then (Rev.2001) Meeting Business Requirements Providing Facilities Solutions Property PeopleTechnology Facilities Management Processes Adding Value Optimising Costs Source: Then, S.S. (1998) FM Context and Choice Flexibility Fit for Purpose FM CONTEXT Choice FM as Enablers to Businesses

31 FM Deliverables Business Outputs & Market Environment Structure Business Context FM Roles FM Processes Competencies FM’s Deliverables as enablers of business  Appropriate competences  Appropriate functional space  Appropriate services Providing facility-related solutions to business needs © Then (2001) FM

32 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

33 Rationalization as a Graduate Program

34 Integrated FM – key components Strategic Components - business focus Operational Components - customer focus S. S. Then (Nov. 1997)

35 Strategic Shifts required Close to strategic business planning Contribute to strategic options Projects driven Competitive procurement Distance from senior management Low / non-influential Functionally divide Predominantly in-house service provision S. S. Then (Nov. 1997) in STRUCTURE from to in PROCESSES from to Proactive, demand-led process Supporting strategic intent, business process-led Integrated resources management Interactive knowledge of operational portfolio Reactive, supply-led process Subservient role, transaction-led Functionally split, property focus Patchy knowledge of assets base in COMPETENCES from to Business skills Providing strategic options Process-based approach External comparison (benchmarking) Technical skills Solving problems Task-based approach Internally focus

36 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 37 © Then S.S. (2011) 1999 2013 FACILITIES MANAGEMENT AND THE BUSINESS OF MANAGING SERVICES 2014/15 ? The business of managing assets ASSETS The business of space WORKSPACE The business of managing services SUPPORT SERVICES Thank you for your attention Obrigado

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