bruursema, astrid (2016) defining the fm market, advisory report

21st March, 2016

Defining the FM market in New Zealand Advisory Report

Astrid Bruursema

What is the best way for FMANZ to expand

the FM segments and the number of

members in New Zealand?

Hanze University of Applied Sciences Groningen,

The Netherlands

1 Astrid Bruursema March 2016

Defining the FM market in New Zealand

Advisory Report

What is the best way for FMANZ to expand the FM segments and the number

of members in New Zealand?

Facilities Management Association of New Zealand

Author Astrid Bruursema Student number 304061 Study programme Facility Management University Hanze University of Applied Sciences Groningen The Netherlands School School of Facility Management (SIFM) Date 21st March 2016

First Assessor Mr. Ab Reitsma

Senior Lecturer Leadership & Human Resource Management at Hanze University of Applied Sciences Groningen, The Netherlands

Second Assessor Mrs. Trude Roelofsen Lecturer School of Facilities Management at Hanze University of Applied Sciences Groningen, The Netherlands

First professional mentor Mr. Des Brennan Chief Executive Officer of the Facilities Management Association of New Zealand, New Zealand

Second professional mentor Mr. Jack Crutzen

Vice Chair Board of the Facilities Management Association of New Zealand, New Zealand Director PRISMA Facilities Management, New Zealand

First academic support Mr. Erwin Losekoot

Academic Head Hospitality & Tourism Management Programmes at Auckland Institute of Studies, New Zealand

Second Academic support Mr. Anne Staal Researcher and Lecturer at Auckland University of Technology, New Zealand and Hanze University of Applied Sciences Groningen, The Netherlands


Executive Summary The Facilities Management Association of New Zealand (FMANZ) recognized the gap in knowledge between the scale and structure of the FM industry and the needs of FM professionals in New Zealand. FMANZ wants to serve its current and potential membership base better. Once FMANZ knows how to meet member and potential member needs more fully, it will be easier to provide for these and to advocate for the FM profession in New Zealand. The project goal is to better understand the FM-related needs in connected industries in New Zealand and overseas markets and recommend a number of services that FMANZ can selectively provide. Surveys and interviews with several key players in the FM industry in New Zealand were carried out in

order to answer to the research question: “What is the best way for FMANZ to expand the FM segments and the number of members in New Zealand?” After answering this research question, it will be possible for FMANZ to consider how to best meet the developmental needs of these sectors and organisations. The research question will be answered in this Advisory Report. To identify the needs of the FM market in New Zealand, both literature and empirical data have been collected. The literature research consists of previous research related to the development of the FM industry, publications in several journals and business models. The empirical research consists of a survey and interviews. Both literature and empirical data has been collected to identify the needs of the FM market. The sub question: “What are the tactical and strategic consequences for the FMANZ organisation?” will be answered in this Advisory Report by providing recommendations for FMANZ. These recommendations are based on five strategic pillars, formulated in the Strategic Plan (FMANZ, 2015, p. 3). FMANZ wants to ensure it is the recognised industry voice and go-to FM organisation by raising the FM profile amongst government, key stakeholders and international companies. For FMANZ it is necessary to provide a range of educational pathways that recognise the diversity of facility management professionals (FMP) and offer an equal opportunity for them to progress. Educational pathways with formal levels contribute to increased recognition of FM as a legitimate profession. The Research Report (Bruursema, 2016, p. 49) shows that communication with members and connecting people is seen as important factors, a potentially local forum for knowledge sharing across the industry is a must-have. Advertising the FM profession is the major aspect for FMANZ to be seen as an widely recognised association. Promoting the FM industry and its profession will change the way FM is viewed by the rest of the industry. The market segmentation model for the FM industry, proposed in the Research Report (Bruursema, 2016), is a basis for a common FM framework. The FMANZ Board can use this segmentation to create new market strategies. The best way for FMANZ to expand the FM segments and the number of members in New Zealand is to focus on new segments and to maximise the value of segments that are currently served. Several segments proposed in the FM segmentation model are currently not being served by FMANZ; Public services, ICT services and Procurement. However FMP indicates strong need for more collaboration with these segments. Also the focus on soft services needs to be underlined, based on overseas trends and developments. Also Mechanical and Electrical and Environmental are segments where a strong growth is expected because of the implementation of more technology. Furthermore Health and Safety and Compliance are hot topics at the moment. Resources, best practices and educational sessions provided by FMANZ could help FMP to do their job in the most efficient way. The Research Report and the Advisory Report will visualize the Defining of the FM Market in NZ.

This report can be used for future research, to keep track on market growth and guarantee continuous improvement of the FM market in NZ.


Preface

This report presents the result of an international graduation placement in New Zealand. This report primarily focusses on the growth and development of the FM industry. As an international Facilities Management student of the Hanze University of Applied Sciences Groningen, I was invited to carry out a research project for the Facilities Management Association of New Zealand (FMANZ). This was a wonderful opportunity to experience this beautiful country and the hospitable Kiwi-way of life. There are some people I would like to thank. First of all I would like to thank my family and closest friends for their continued support and commitment. Grateful acknowledgement is made here to those who helped me to gather data for this paper. This would not have reached its present form without their invaluable help. A big thanks to Ab Reitsma for supporting this placement from the other side of the world. A special thanks to those who made my stay in New Zealand possible - the project team: Des Brennan, Jack Crutzen, Erwin Losekoot and Anne Staal. I also want to thank David Curry and the Auckland University of Technology (AUT) Estates team for creating an enjoyable and stimulating but also supportive working environment. Last but not least I want to thank Professor John Tookey at AUT for providing my accommodation during my stay in Auckland. Astrid Bruursema

21st March 2016, Auckland


Table of Contents

1. Introduction ......................................................................................................................................... 6

2. Comparison with overseas markets .................................................................................................... 8

2.1 What can NZ learn from overseas markets? ................................................................................. 8

2.2 Service quality gaps ....................................................................................................................... 9

3. Recommendations ............................................................................................................................. 12

3.1 Recommendations....................................................................................................................... 12

3.1.1 Leadership ............................................................................................................................ 12

3.1.2 Education .............................................................................................................................. 12

3.1.3 Knowledge ............................................................................................................................ 13

3.1.4 Recognition ........................................................................................................................... 13

3.1.5 Sustainability ........................................................................................................................ 13

3.2 Recommended services ............................................................................................................... 14

3.3 Recommended partnerships ....................................................................................................... 14

3.4 Implementation ........................................................................................................................... 15

3.5 8-Step Process ............................................................................................................................. 16

3.6 Financial consequences ............................................................................................................... 17

3.7 Future research ........................................................................................................................... 18

4. Conclusion ......................................................................................................................................... 19

Bibliography ........................................................................................................................................... 20


Abbreviations

List of Figures Figure 2.1 – Model of service quality gaps (Parasuraman et al., 1985; Curry, 1999, Luk and Layton, 2002) 10 Figure 3.1 – Ansoff Strategies (Verhage, 2010, p.75) 16 Figure 3.2 – Implementation phase 17 Figure 3.3 – Leading Change (Kotter, 2015) 17

List of tables Table 3.1 – Entry level training courses 14 Table 3.2 – Recommended Partnerships 15 Table 1.3 – Expenditure of Implementations 19 Table 3.4 – Key Market Indicators 19

Abbreviations

AUT Auckland University of Technology, New Zealand

ACC Accident Compensation Corporation

BIFM British Institute of Facility Management

BIM Building Information Modelling

BMS Building Management Software

BSc Bachelor of Science

CEO Chief Executive Officer

CSR Corporate Social Responsibility

EuroFM European Facility Management Network

FM Facilities Management

FMA Facilities Management Association of Australia

FMANZ Facilities Management Association of New Zealand

FMN Facilities Management Nederland

FMP Facilities Management Professional

FTE Full Time Equivalent

GDP Gross Domestic Product

Hanze UAS Hanze University of Applied Sciences Groningen, The Netherlands

H&S Health & Safety

IFM Integrated Facilities Management (see also TFM)

IFMA International Facilities Management Association

LOOFD Landelijk Overleg Opleidingen Facilitaire Dienstverlening

NL The Netherlands

NZ New Zealand

NZD New Zealand Dollars

NZQA New Zealand Qualifications Authority

TFM Total Facilities Management (see also IFM)

UK United Kingdom


Introduction

The advisory report informs the reader about developments in the Facilities Management (FM) industry in New Zealand. This plan is intended for the Facilities Management Associations of New Zealand (FMANZ). This non confidential report is also beneficial for Facilities Management Professionals (FMP) and FM suppliers. First of all a small summary of the Research Report is given. The graduating student, Astrid Bruursema, was assigned to execute this project during the period of August 2015 till January 2016. The Facilities Management Association of New Zealand (FMANZ) provided the student with an assignment. FMANZ wishes to serve its current and potential member base better. Therefore, the student is expected to provide recommendations on how FMANZ can best do this. In order to reach this goal, the surveys and interviews with several key players in the FM industry gave an answer to the research question: “What is the best way for FMANZ to expand the FM segments and the number of members in New Zealand?”. After answering this research question, it will be possible for FMANZ to consider how to best meet the developmental needs of these sectors and organisations. The first sub-questions: “What FM segments are currently being served by FMANZ?” is answered by providing a segmentation model for the FM industry in NZ first. Second the FMANZ membership base is compared with the segmentation model, the served segments by FMANZ became revealed. Also the questions: “What FM segments are not being served by FMANZ?” is answered. These outcomes showed that the FM industry in New Zealand is more focussed on hard services rather than soft services. Also the FMANZ members are overrepresented in these hard services. “What services are provided by FMANZ within these segments and how do members value these provided services?” is answered using the FM industry survey. Also the potential service offering is answered: “Which segments have potential to be offered by FMANZ and what services can be offered to the members in these segments?” using trends and developments from overseas markets. Research shows that the FM industry in New Zealand currently represents mostly FMP in the hard FM side, this means that there is a strong focus on the aspect place in contrast to people. The New Zealand FM market has really been a Facilities Maintenance industry over the past decade and not a Facilities Management industry. Some of the primary drivers behind this past maintenance trend include, immediate cost pressures on clients and not having the financial means to take a longer term view, available skill-sets within the industry and the reduced critical mass available in parts of the market. The soft services side of FM could play a bigger role in the FM industry in NZ. The services in NZ are now seen as a low value service, but there is growing awareness regarding the added value of FM within businesses. In general FMP are looking for specific education and training. Also the FM recognition on a strategic level is indispensable. The Advisory Report is the second document that has been generated for this research. The outcomes of the Research Report are being used as input to generate advice for FMANZ. The goal is to guarantee continuous development of the FM industry in New Zealand. The research backgrounds can be found in the Research Report (Bruursema, 2016). The intention of this graduation project is to give an answer to the research question: “What is the best way for FMANZ to expand the FM segments and the number of members in New Zealand?”. In this advisory report the sub research questions (presented in section 2.3 in the Research Report) will contribute to a better understanding of the FM-related needs in New Zealand and recommend a number of services that FMANZ can provide. The sub research question that will be answered in this report is: “What are the tactical and strategic consequences for the FMANZ organisation?”. A number

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of services and recommendations are given to FMANZ to expand the number of members in New Zealand. First of all the similarities and differences in overseas FM markets are described in Chapter 2. The trends and challenges for the NZ market will be discussed. This comparison shows what the NZ market can learn from overseas markets. Also the SERVQUAL model is used to identify gaps in the service delivery of FMANZ. Recommendations are given to increase the service quality gap in Chapter 3. The recommendations are based on the strategic pillars, formulated in the Strategic Plan (FMANZ, 2015). There are possibilities to adapt more to the modern technology and meet the needs of members. Also a few partnerships are recommended to support the professional- and educational development of the FM profession in New Zealand. The implementation phase will cover the short-, mid- and long term planning, also the financial aspects will be covered. This research allows the demand for future research as well. Chapter 4 will answer the research questions in the conclusion.


Comparison with overseas markets This chapter will describe the similarities and differences in overseas FM markets. First of all the trends and challenges will be discussed. The FMANZ organisation is analysed with the use of the SERVQUAL model to make an attitude measure and this model will show possible gaps in service quality of FMANZ.

2.1 What can NZ learn from overseas markets? The Research Report (Bruursema, 2016) showed several similarities and differences in the overseas FM markets. First of all technology and data is both visible in the Netherlands (NL) (Twynsta and Gudde, 2014), the United States of America (USA) (IFMA, 2011) and Australia (FMA 2014). The cooperation in the FM chain is seen as a trend in both NL and in Europe in general. Sustainability and CSR are both seen in NL and USA. The focus on costs management is recognized at a lower level in NL and UK, but is a strong focus in Australia. Based on these outcomes, the Dutch and the American trends are most similar to each other. Outsourcing is a trend in the UK (BIFM, 2015) and Europe (ISS, 2014) in general, outsourcing becomes more appealing to FMP. The FM industry in Europe, especially the British market, is also dealing with more international players. The Australian FM outcomes also show the challenge in attracting and retaining appropriately skilled staff. Remarkable is that Australia is the only country that mentions this trend. Obviously, everything depends on the way in which the research was resolved, but it is clear that the results are all the same in one way. First of all different FM segmentation models were used to indicate the market. The European model is more focussed on soft services and is more focussed on people rather than place. The Australian and American segmentation model are more focussed on hard services and are more focussed on the place aspect. These models and trends vary and depend on each country, economy and maturity of the market. The role of NZ will be discussed in the next chapter. The relevance of the international trends is to indicate whether the New Zealand market is mature or immature. Compared with the trends in the New Zealand market, also discussed in the Research Report, is the NZ market comparable with the Australian market. Please note that every country and market are different. Think about population, country size, scale of the economic market and the maturity of the market. The Australian market is like the New Zealand market focussed on reducing FM costs, FM adoption to technology and attracting and retaining appropriately skilled staff. The fact that New Zealand is focussed on retaining appropriately skilled staff underlines the lack of recognition for this industry. Reducing costs is also an aspect that is seen in NL and the UK years before. The fact NZ is dealing with this now, underlines the immature stage of this FM industry. In Europe the market is not focussed on retaining suitable staff or reducing costs anymore, but is focussed on increasing the added value of FM. The goal for the FM industry in NZ is to become as mature as the European FM market. NZ can learn from other countries, the aforementioned differences shows that the European FM market is focussing on the value add. NZ needs to focus on this aspect as well in the next couple of years. This can be achieved by focussing on the most important factor in a business; people.

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2.2 Service quality gaps An important starting point of the SERVQUAL model is the definition of satisfaction. Satisfaction is defined as, the difference between what the customer expects and what the customer experiences. It is about what the customers think on the basis of their experience with the product or service of the enterprise (Parasuraman, Zeithaml, & Berry, 1985). The SERVQUAL model originally consist of five gaps, nevertheless there is an option to extend this model to close other major gaps (Shahin, 2006). The FMANZ organisation is analysed with the use of the service quality gap model, also known as the 7 Gap model, shown in figure 2.1 – Service quality gaps. The information about this association is gathered by internal business visits and chats with the FMANZ Team.

FIGURE 2.1 – MODEL OF SERVICE QUALITY GAPS (PARASURAMAN ET AL., 1985; CURRY, 1999, LUK AND

LAYTON, 2002)

The management perception gap, identifies customers’ expectations versus the management perceptions. The current marketing research of FMANZ can be described as supportive. This organisation needs to balance investment with need and resources. There are opportunities to expand the marketing research orientation with the use of a library of research.


The current marketing research of FMANZ is not showing the value its existence to the FM environment to its maximum. There are opportunities for promoting and increasing the market understanding of what is FM. At the moment FMANZ is working selectively to increase awareness of FM applying resources to best advantage. For example FMANZ is collaborating closely with the Energy Efficiency and Conservation Authority (EECA) and AUT. In fact FMANZ has not focused on attracting new members and has concentrated on building its value proposition and understanding the details of the market prior to going for membership growth. The value that remote members may extract is planned to increase significantly with the imminent introduction of video streaming. Value from membership also needs to be set in the context of the cost of membership. Most of FMANZ’s members are not remote. Remote does mean reside in or near Auckland, Hamilton, Wellington or Christchurch. Therefore remote members do also expect value for money, knowledge sharing and networking. The proposed segmentation model (Research Report, p. 25) can be used as framework for the FM industry. This model will also help to build long term relationships with members and sponsors. There is only a little difference between management perceptions of what members expect and the specifications that the FMANZ- Team and Board draws up, called the quality specification gap. Members located in remote areas have a specific demand for more knowledge sharing. FMANZ should consider several options to meet those needs such as video streaming. Since the launch of the FMANZ Strategic Plan a formal process of setting services quality goals is proposed. This will also help to create member-driven service standards. The FMANZ Board need to make sure the associations keeps defining the level of service they believe is needed. There is no service delivery gap in the FMANZ organisation, because there is a match between the service delivery specifications and the delivered service. Members are satisfied about the delivered services and state that FMANZ is cost effective with an excellent mix of supply and demand participants. This association also covers a diverse range of areas that incorporate other and less recognized FM subjects as well. Constantly auditing the member experience makes it possible to guarantee the expected level. At this point FMANZ uses a few communication media, the FMANZ E-Mag is the strongest medium. Facebook and LinkedIn are being used in a smaller form. That means there is a little market communication gap. The FMANZ Team now contacts members by e-mail, LinkedIn, Facebook and the E-Mag. The E-Mag is a great success as an internal communication medium. For this moment the use of the E-Mag is more important than the various social media channels. For the future FMANZ can promote the social media channels as the can be used to their optimum extent. By using social media channels more often in an effective way the customer expectations can be realised. A good and effective use of communication will lead to the perfect service delivery. The perceived service quality gap identifies the difference between the expected service and the perceived service experienced. Most of the FMANZ members are a member because they want to create awareness for the FM profession. FMANZ is involved in the sector and is looking to improve each sector from delivery and supply working effectively on improved solutions using knowledge, skills and experience to grow the value reputation of FM, which is currently undervalued. All the gaps described in this section need to make sure the service delivered meets the expectations of the members. There is a slight gap in the employee and management perceptions of customer expectations. The FMANZ team is doing good work. Members rate the After 5 Events, Breakfast sessions, FMANZ E-Mag and the annual Summit positively. FMANZ is seen as an association with a good value for money. This association is designed to support the FM industry and the Board should ensure this goal. The Board needs to ensure to keep pushing to raise the FM profession. FM remains technically centric but let’s


put the M back into FM. Review of the events and development opportunities provided by FMANZ will show a balance of technical and management material. Also the FM summit programme alone speaks to this. Master Classes are arguably fifty fifty. The mission for FMANZ is to be the hub for networking and professional development and the industry voice for the FM community and the built environment.


Recommendations This chapter will describe the recommendations for FMANZ to develop the FM industry in New Zealand. The recommendations are based on the Strategic pillars, formulated in the FMANZ Strategic Plan (2015). This chapter will answer the fifth sub research question: “What are the tactical and strategic consequences for FMANZ?”.

3.1 Recommendations The recommendations for FMANZ are focussed on FMANZ’ Strategic Plan (2015). This section provides

an answer to the fifth sub research question: “What are the tactical and strategic consequences for FMANZ?". The five strategic outcomes from 2015 to 2018 are based on:

1. Leadership – FMANZ is the recognised industry voice and go-to FM organisation.

2. Education – FMANZ offers accessible and valued professional development.

3. Knowledge – FMANZ is the hub for FM knowledge sharing.

4. Recognition – FM is widely recognised as an essential requirement to business success.

5. Sustainability – FMANZ is a financially stable and prudently managed organisation The tactical consequences are focused on the FMANZ team (Sasha Brook, Sara Carbery and Marjolein de Graaf) in a short term. The strategic consequences are focussed on a Board/CEO level for a long term. The short term stands for now to the next year. The long term stands for one to the next three years.

3.1.1 Leadership The first aspect of the Strategic Plan is Leadership. Raising the profile of FM amongst key stakeholders and allied industries is high on the agenda. An increase in the membership data base could help to be more representative across government and companies. The low value services such as security, cleaning, catering etc. need to be recognized and valued in this industry. Following IFMA or BIFM could help to create educational pathways and recognition of skills and experience. FMANZ needs to keep events going which allows members to socially build their industry network. There is also a need for more visibility of how to become a committee or board member. Improving marketing tools by website, social media and e-mail will help to form FMANZ to the recognized industry voice and go-to FM organisation.

3.1.2 Education For FMANZ it is necessary to provide a range of educational pathways that recognise the diversity of members and offer an equal opportunity for them to progress. Educational pathways with formal levels contribute to push FM to recognition as a legitimate profession. It is important for members to keep up the training and ideally move towards more formal qualifications recognised by all of industry. FM has a long way to go to get the recognition it deserves. FM is still not seen in the strategic level of organisations. A framework for training and levels of achievement contribute to offer accessible and valued professional development. There is also a demand for masterclasses in other centres rather than Auckland. FMANZ should take in consideration the difference in experienced FMP, low level masterclasses are needed for new industry entrants, but there classes are lacking for more experienced industry practioners. E-Learning can also be used to gain knowledge and participate in Masterclasses. Continuing professional development is required to add value to the professional development of members.

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On the basis of the conducted surveys and interviews a few educational focus points became visible. The entry level training courses should cover at least the following interest fields. Table 3.1 shows the entry level of the suggested training courses. TABLE 3.1– ENTRY LEVEL TRAINING COURSES

Entry level training courses

Basis budgeting

Technical service and operation

Health and Safety (H&S) training

Building Compliance training

Basis property law

Procurement and contracting

3.1.3 Knowledge To support FMANZ to be the hub for FM knowledge sharing, several recommendations are given. First of all this association should focus on the end user more, and their ability to network and share experiences. be about the end user, and their ability to network and share experiences. End users are interested in what innovation contractors can provide. However the end users get fed up with an overload and continuous sell. A greater variety of presentations across the whole sector is asked. Involving the training institutions as how to best encourage people into the FM industry. More online resources like templates would be beneficial, so members do not have to reinvent the wheel. As communication with members and connecting people together is seen as important factors, a potentially local forum for knowledge sharing across the industry is a must-have. Emerging trends can be discussed and there is room to work collaboratively together. FMANZ does need to help its members to grow and learn, so the members can do their job in the most efficient way. Sharing issues in a small audience are options to share a problem and ask other professional about their opinion and solutions. Technology can easily be used for information sharing, the FMANZ website can be upgraded to a knowledge base.

3.1.4 Recognition To make sure FM is widely recognised as an essential requirement to business success, a few recommendations will be made. Advertising is the first aspect that is important for this association, still FMP are not familiar with this association and do not know the existence. Promoting the FM industry and its profession will change the way FM is viewed by the rest of the industry. Regional meetings are also needed to take FM to the smaller regions. The framework for the FM industry is a basis for a market segmentation. The FMANZ Team can use this segmentation to create new market strategies. Improving the understanding of the role of the FMP and their contribution to business productivity will lead to advertise the worth to the FM environment.

3.1.5 Sustainability There needs to be a strive for excellence in governance practise to ensure FMANZ as a financially stable and prudently management organisation. The most important point is to allow FMANZ to socially build an industry network that creates a voice and presence for FM in New Zealand. All factors mentioned above contribute to this strategic pillar. Without a clear market segmentation the marketing and communications will not perform optimally. By building long-term relationships with members the member loyalty will be maximised.


3.2 Recommended services The recommendations in section 3.1 are based on FMANZ’ strategic pillars. More recommendations and optional new services for FMANZ are given now. There is a specific need for more specialized staff in New Zealand. This industry has a demand for people who are able to get the job done really fast, even in specialized jobs. Also a variety in subjects and levels in training and education is asked for the development of the market. There is a demand for more global knowledge sharing, educational sessions with international speakers would be a great opportunity. New Zealand could learn from these more mature markets and the task for FMANZ is to provide these opportunities. A knowledge base concept for FMANZ should consist of resources, best practises, presentations, webinars, contact details and an agenda. Once FMANZ is able to build an educational network like this, also people from isolated regions are able to gain knowledge. The FM profession is completely spread out over the country and online access to knowledge makes it also worth for people in secluded regions to become a member. In 2017 de Bachelor’s Degree of FM will be introduced at the AUT. The growth of the educational supply of FM in New Zealand will stimulate the market and help this country to increase the maturity of the FM industry. The unique selling point for both FMANZ and AUT at the moment is the Bachelor’s Degree because AUT will be the first in providing this degree in New Zealand. A partnership between other educational institutions and FMANZ will lead to more recognition for this profession. On the other hand using marketing tools from AUT and FMANZ are needed to inform prospective students for this degree. There is a little knowledge about the FM profession and prospective students will not choose a studies if there is not enough information about. Providing informational sessions and presentations in secondary school is necessary. Other marketing tools need to be researched and is outside the scope of this research. The Strategic Plan is a tool to keep track on continuous development. A clear succession plan on ‘Where to go from here?’ is needed for FMANZ.

3.3 Recommended partnerships Partnerships can support professional- and educational development of the FM profession in New Zealand. Partnerships need to be established in both New Zealand an overseas countries. The benefits of each partnership are formulated in table 3.1. TABLE 3.2 – RECOMMENDED PARTNERSHIPS

Partnership Benefits

FMANZ – Government New Zealand (PMCoE)

A close partnership with the government can help to get more recognition for this profession. Benefits of introducing a legit definition of the FM profession.

FMANZ – CoreNet An aligned partnership with CoreNet will advance the practice of corporate real estate through professional development opportunities, knowledge sharing and networking groups.

FMANZ – AUT FMANZ needs to push the FM profession by guarantee the educational supply in NZ. FMANZ members can play in role in guest lecturers and providing internships. FM students conduct academic research for the FM profession.


AUT – Hanze AUS Knowledge sharing is being optimised with connections in Europe. There is a need for an infrastructure that allows exchange of international students

FMANZ – FMA Facilities Management Associations New Zealand (FMA) could help to share knowledge related to best practises and resources.

FMANZ – IFMA Partnerships with IFMA will gain international recognition and a stronger profile for this profession.

FMANZ – specific FM industry related associations

Connections with for example New Zealand Security Association (NZSA), Hospitality New Zealand, KNX Technology Association or the Property Institute is required for more alignment of FM on strategic levels.

3.4 Implementation The recommendations for FMANZ do need an action plan which visualizes the implementation. An previous advice given to FMANZ (Schutte, 2014) shows the growth strategy of the FM market in NZ. “The market is in its early stage of maturity and need to focus on the expansion of the current profession. Therefore adopting a development strategy is the most suitable for the FM market.” (Schutte, 2014, p. 19). This also applies to the recent situation of the FM market in NZ. According to the Ansoff model: “By improving the product quality or launching a new model, we may reach groups of buyers in the market who previously showed no interest.” (Verhage, 2010. p. 77) This is the goal for FMANZ nowadays as well. FMANZ needs to focus on new market segments to expand its existent member base.

FIGURE 3.1 - ANSOFF STRATEGIES (VERHAGE, 2010, P.75)

The recommendations given in section 3.1 to 3.3 are shown in the implementation phase, figure 3.4. Both the tactical and strategic directions for the development of the FM profession are illustrated. These directions are directly related to the recommendations. The planning consists of three terms. The tactical consequences are based on the short and medium term planning. The strategic consequences are based on the medium and the long term planning. Short term planning: < 1 year Medium term planning: 1 to 3 years Long term planning: > 3 years


Short term planning

•Establish partnership FMANZ – AUT

•Establish partnership FMANZ – Hanze UAS

•Establish partnership FMANZ – IFMA

•Create partnerships FMANZ – industry specific related assocations

•Market the FM profession in NZ.

Medium term planning

•Creating a research network in collaboration with universities.

•Creating a research network for global knowledge sharing

•Implementing specific training courses

•Introducing a Bachelor’s Degree programme specialised in FM.

Long term planning

•Government support for FM education

•Government support for introducing a legit definition of the FM profession

FIGURE 3.2 - IMPLEMENTATION PHASE

3.5 8-Step Process The 8-Step Process for Leading Change is used to implement the recommendations for FMANZ (Kotter, 2015). It is important to take a consistent, holistic approach to change the organization. Step 1. Create a Sense of Urgency Before changing an approach or changing the company, a sense of urgency needs to be created. FMANZ needs to point out the need for change. Also this research project can be seen as evidence to show the urgency for change. 2. Build Guiding Coalition The guiding coalition at this moment is the FMANZ Board and the Committee. To raise the FM profession to a higher standard in NZ all FMP are assigned to contribute to this process. However a leader with enough power to lead the change effort is needed.

FIGURE 2.3 – 8-STEP PROCESS (KOTTER, 2015)


3. Form Strategic Vision & Initiatives To raise the FM profession it is important to create a clear vision. This will help determining the strategic directions formulated by the FMANZ Board. The current market understanding is de baseline of future developments of the FM profession in NZ. 4. Enlist Volunteer Army A very significant number of FMP amass under a common opportunity and drive the same direction to occur a large-scale change. With a high number of actively engaged members, higher earnings are possible. FMANZ does have a several highly engaged members who do contribute to the FM profession. Is there anything that is stopping them to step forward and act? The change can be communicated by FMANZ with the use of the existing communication resources, like the FMANZ E-Mag, the website and LinkedIn. Also possibilities at the FMANZ Summit are given. Several seminars will create awareness of change possibilities and opportunities for FMP. 5. Enable Action by Removing Barriers The formulated barriers at the previous step needs to be removed. Brainstorming and thinking out of the box can help to remove barriers very easily. Partnerships can also help to break down any barriers in the implementation phase. 6. Generate Short Term Wins Short term wins are needed to keep the tea motivated and the stakeholders interested. By showing the improvements there is a change to gain more recognition. People need rewards for their effort, communication progress will motivate people. The first step in generating short term wins will be the establishment of partnerships. Communicating in the FMANZ E-Mag will make members aware this short term wins. 7. Sustain Acceleration Adapting quickly in order to maintain the speed of changes is needed. Several social media channels can be used to show the progress in change in establishing partnerships for example. 8. Institute Change The last step the importance of anchoring the change into the FMANZ culture. To ensure new behaviours are repeated over the long-term, it is important to define and communicate between these behaviours and the FMANZ’ success. This is an ongoing process and the next step again is to attract more people to the FM market. Growth and continuous development of the FM market will be encountered.

3.6 Financial consequences The previous mentioned implementations will have financial consequences. It is hard to predict the exact financial impact that the recommendations will have on the market, a description of the financial consequences is provided now. The main earnings of FMANZ are retrieved by sponsorships and membership fees. It is necessary to shows the current- and potential sponsors the added value of the FM profession to guarantee financial support. Also the economic value of the FM profession can be underlined for future development of the FM profession. Previous research shows the current market size of the FM market is 4% of the GDP (Bruursema, 2016). The expenditure of raising the FM profession can be divided in several aspects. Figure 3.4 shows the several expenditures of the implementations.


TABLE 2.3 – EXPENDITURE OF IMPLEMENTATIONS

Expenditure of implementations

Research and development costs for additional research

Travel costs for international partnerships

Marketing costs to increase the recognition of the FM profession

Costs for realising an online knowledge portal

Costs for carry out a benchmark

3.7 Future research The size of the FM industry has been assessed in the Research Report (Bruursema, 2016). Two methods are used to estimate the value of FM. First of all a determination of the total asset value in New Zealand is given. On the other hand the New Zealand market has been compared with an European data report, based on GDP (EuroFM, 2012). Both methods give a rough indication of the FM value. These are the first steps in defining the market value of FM and this is focussed on existing market data and available reports. The second step in developing the FM market in New Zealand is creating a common framework for collecting market data. For now, each country uses different definitions and meanings. A common framework is needed to compare data between different countries. The advice is to set up a Benchmark to indicate the market value looking at key market indicators, described in table 3.2. The market indicators are based on the several FM segments in the Segmentation Model as proposed in the Research Report (Bruursema, 2016). TABLE 3.4 – KEY MARKET INDICATORS

Market indicators per segment

- Amount of companies per segment

- Breakdown per company

- Gross floor area

- Number of employees

- Turnover

- Potential growth

Additional indicators: - Critical topics and future trends - Major players in the Market - Dominant developments in the market

There are also opportunities for FMANZ to collaborate with FMA for benchmarking the FM market.


Conclusion The last chapter provides an answer to the main research questions and the fourth sub question for FMANZ based on the analysis in this Advisory Report. The fourth sub question: “What are the tactical and strategic consequences for FMANZ?" will help to provide an answer to the main research question of this project: “What is the best way for FMANZ to expand the FM segments and the number of members in New Zealand?”. The consequences for the FMANZ organisation are described in section 2.2 and 3.1 to 3.4 of the Advisory Report. FMANZ should focus on marketing research positioning to advertise the value of its existence to the FM environment to its maximum. FMANZ’ strategy needs to focus on promoting and increasing the market understanding to expand the number of members. Since the launch of the FMANZ Strategic Plan a formal process of setting services quality goals is proposed. This will also help to create member-driven service standards. The FMANZ Board need to make sure the associations keeps defining the level of service they believe is needed. The best way for FMANZ to expand the FM segments and the number of members in New Zealand is explained now. Several segments, proposed in the FM segmentation model, are not being served by FMANZ. Based on trends and developments and interviews with FMP several conclusions in the FM market can be made. FMANZ should focus more on these segments: Public services, ICT services, Procurement to expand its members. These segments are not being served at this stage by FMANZ, however FMP indicate a strong need for more collaboration with these segments. The number of members could be expanded by services segments above, but also a focus on soft services is more important. The overseas trends and developments show the strong focus on people. If New Zealand wants to move forward without reinventing the wheel focussing on people seems a must. Soft services and Hospitality will be the segments with the biggest growth for the next years. Also Mechanical and Electrical and Environmental are segments where a strong growth is expected because of the implementation of more technology. Furthermore Health and Safety and Compliance are hot topics at this moment, resources, best practices and educational sessions provided by FMANZ could help FMP to do their job in the most efficient way. This report can be used for future research, to keep track on market growth and guarantee continuous improvement of the FM market in NZ. People are the key to the success of FMANZ’ growth strategy!

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