FM in Turbulent Times Prof.dr. Jan Chr. van Dalen

What is FM Classic view: FM is focussed on real estate (buildings + environment) and related issues (e.g. cleaning, catering); Resource view: FM is focussed on resource processes (e.g. human resources, material resources, customer resources, financial resources); FM dealing with resource markets; Integrative view: FM is the multidiscipline based on the integration of 3 disciplinairy management fields: Resource Management, Service Management, Hospitality Management.

FM resources Human resources Material resources Information resources Financial resources Market resources Production & Logistics resources Development resources (Innovation)

FM andHospitality Management The art of welcoming The conditioning of behaviour The conditioning of navigation

3 Strategic FM Challenges What is the dominant orientation of your organization: enabling or making (facilitating or producing)? Did your FM make the step from supporting to enabling (from reactive to pro-active)? Did you make the next step in positioning FM: from facility management to enabling leadership (from marching along the choosen road to marking the shining path)

The strategic choices Facility or make Example Health care Take hospitals: – Healing patients – Or – Enabling medical professionals to execute medical interventions

Context: what is the world around FM Social Economic: a New Economy Geo-Political: The world is not enough Geo-Political: shifting power positions Political-Administrative: relationship business vs. state Turbulence by crisis Changing Governance systems Limited tenability of current models

New Economy changing economic landscape networks/chains ICT demand driven knowledge economy servicedominance virtualisation globalisation innovation directness convergence multiformity prosumption disintermediated experience economy nation state vs. business state

FM catching the eye Innovative Enabling Solutions Keys to Sustainability Thought leadership in strategy and change Competition on resources and dynamic capabilities Mastering the chain Contracting and trust Safety and security

The strategy machine of FM Design of effective Facilities policies Execution of Facilities policies: – Design of facilities and the organization of facilities – Managerial control of facilities (The signposts) – Maintenance of facilities Evaluation of policies performance vs. effectiveness Learning to improve Saving Organizations by Countervailing Power

The proof of the pudding of FM Contributing to: Competitive position Enabling stability Enabling dynamics Wise Leadership

FM Visions/Leadership From supporting to enabling Transformation agent Distributed / deconcentrated Complexity management Leadership conditioning production

Enable value adding production Contributing to value adding itself Wisdom to exert countervailing power: - Safeguarding efficiency in resource utilization (waste minimization); - Safeguarding responsible management - Continuity by sustainable operations - Developing craftmanship in creating effective management of work constellations What can we expect from FM Leadership

FM in a wide wide world FM adding value in private companies, FM of part of Government/Governance roles, FM as a cross-function in cooperation networks (supply chains) FM at levels (FM as supplier): Strategic, Managerial, Staff carrying out FM disciplines (logistics, purchasing, information management, personnel, etc.) FM as an international discipline FM integrated. But which disciplines together?

Varieties of FM Independent company Which resource components included What philosophy Outsourcing vs. insourcing Integrating resources (cross operationaL)

Changing Stages The New Economy vs. the Old Economy: No supply dominance: demand driven No individual firm performance: cooperation in organizational networks (chains!!) No stereotypes: you can cooperate with your competitor, and you can compete with your alliance No stereotypes: differentiation is the message

Whats changing From national to international to global. And back? From face2face to screen2screen From objective evaluation to experiences From mastering technology to mastering management From one size fits all to customization and differentiation From making things to serving customers And much more

The newness that diversifies Variety is the message: Sometimes supply driven is better than demand driven Sometimes government is not protecting nor supporting you (as business or citizen) Sometimes your business is politically governing and your government is business-like managing (NPA)

The beginning of change Strategic decision making is surprising Sudden crises (BPs oil leaking catastrophe) Recognition of a risk profile in the organization New political/governmental developments/policies Perceptions that are not valid anymore (Business) models that are outdated

Triggers for transformations Leadership decisions Strategic principles (e.g. do only things you are good at) Government choices (like splitting up energy corporations) Competition and internationalisation (transform or perish) Changing markets Changing technologies The chain environment of organizations Perceived threats for safety and security

Strategic transformation and competition Competition is in the eye of the customer Competition has two faces: supply side and demand side More and more it is recognized that (firm) competition starts at the resource (supply) side More and more it is recognized that capabilities to exploit resources better than others is a second necessary condition for succesful competition Thats why it is said that competition is in business models

Changes in strategic FM approaches What is strategic choices for FM? The main characteristic of an organization: FM or PM (production management) Which resource processes in FM, which not (political choice?) Setting the stage for new work environments (flexibility) And: transformations consequenses

What perspectives for FM? Setting the agenda for organizing work Setting steps in making networks/ chains work better Turning the key for sustainability Understanding and overcoming differences in cultures By: enabling and conditioning organizational behavior

What is on the road map of FM? Strong, wise, enabling leadership Innovation of resource processes Innovation of Markets Recognizing that without ENABLING, there is no value to be added

Back to Turbulence Restoring control for the benefit of more realistic production Discovering a new balance between hierarchy and network control New types of Leaders and Leadership behavior

The make up of the wise leader© Leadership resources Leadership dynamic capabilities Relational Intelligence Enabling Leadership in FM highly determines the risk profile of organizations Enabling Leadership in FM is good for growth and for retrenchment in business and government