Danny Shiem-shin Then

Facilities Management Education- Issues of Breadth and Depth

2013 Congress

Brief ProfileMSc in Construction Management ( Maintenance Management)MSc in Facilities Management

Department of Building

1983-1996

MBA in Facilities ManagementMSc 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

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

FM

Type of business – public/private, local/international

Nature of portfolio – disperse/concentrated, age/condition

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:

Facilities Management in Practice

• Understand the business you are supporting – business dynamics

FM & Business Support

• Understand the product you are managing – asset managementFM & 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?

Educational Provision in FMFrom 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 FMFunctions & ServicesCompetences lists by professional institutions like IFMA, BIFM, FMA – getting the job done.

Depth in FMCurrent practice within an organisationRelates to context, culture and resources + personal development & knowledge acquisition + current FM processes

Issues of Breadth in FM

Functions/services needed to support the business operations – getting the job doneDecisions relating to FM actions often rely on understanding and application of theories and principles that underpin:Economics and finance Human relationships and people managementTechnologyPhysical asset management

Design of FM Course Content

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 businessPersonal career development & knowledge acquisition rely on soft skills as much as technical expertise.

FM Practice & Business Relevance

Breadth and Depth in FMThey 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

The business of managing assetsASSETS

The business of spaceWORKSPACE

The business of managing servicesSUPPORT 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:

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

• 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(+/-)

MARKETFACTORS 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 ResponseTraditional Push

Why FM is strategic? - Understanding Business Drivers

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

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)

Dialogue

S. S. Then (1996)

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

Leadership IssueWorkplace 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 IssueWorkplace 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. Understanding the vision and strategy of the organisation2. Understanding and translating the strategy of each SBU3. Understanding and translating the CEO financial strategy for the organisation4. Developing and implementing a workplace strategy, aligned with HR and IT5. Bridging the relationship between workplace strategy and delivery of projects6. 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

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.

Current Focus on FM Issues - SummaryAll 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 ConceptualizationAbout 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

BUSINESS MANAGEMENT

CORE PROCESSES SUPPORT SERVICES

FACILITIES MANAGEMENT

BUSINESS RESOURCE BASE

TECHNOLOGY REAL ESTATE PEOPLE

ASSET MANAGEMENT CULTURE

CONTINUOUS IMPROVEMENT & PROCESS RE-ENGINEERING

© Then, 2000

Context of Facilities Management

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

MaintenanceManagement

Lease & Property Management

UtilisationInterior Design & Configuration

Fit-out & Relocation

Building Enclosure

Building Services

Building Environment

Building Grounds

Structure Finishes

Cleaning Security IAQ Visual / Thermal / Acoustics

Out Buildings

Roads & Car parks

Landscaping Other Amenities

OH&S Electrical Plumbing HVAC Painting Fire Protection

Waste Disposal

Other Services

Investment Space Assets People

Communication Transportation

Modified from Quah L K (1998)

Users’ Perception

Scoping of Facility Management

SPACE

PEOPLE

FM beyond Buildings

Economics

Building

Management Technology

PROCESS

FinancialManagement

Asset Operational Management Management

© Then, 2000Interfaces within Facility Management

FM as vector of change within organisations

Then (Rev.2001)

Meeting Business Requirements

Providing Facilities Solutions

Property

People Technology

Facilities Management

Processes

Adding Value

Optimising Costs

Source: Then, S.S. (1998)

FM Context and Choice

Flexibility

Fit for PurposeFM

CONTEXT

Choice

FM as Enablers to Businesses

FM DeliverablesBusiness 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

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

Close to strategic business planningContribute to strategic optionsProjects drivenCompetitive procurement

Distance from senior managementLow / non-influential Functionally dividePredominantly in-house service provision

S. S. Then (Nov. 1997)

in STRUCTURE from to

in PROCESSES from to

Proactive, demand-led processSupporting strategic intent, business process-ledIntegrated resources managementInteractive knowledge of operational portfolio

Reactive, supply-led processSubservient role, transaction-led Functionally split, property focusPatchy knowledge of assets base

in COMPETENCES from toBusiness skillsProviding strategic optionsProcess-based approachExternal comparison (benchmarking)

Technical skillsSolving problems Task-based approachInternally focus

Personal ReflectionsThe 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.

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 assetsASSETS

The business of spaceWORKSPACE

The business of managing servicesSUPPORT SERVICES

Thank you for your attentionObrigado