Destined to Live the Good Life in Zambia

As a project manager in a corporation I work on a wide variety of projects.  All are important, most are enjoyable experiences, and all connect me with new people.  But no project in my personal history has captivated me like the Destined to Live the Good Life Orphanage project in Kitwe, Zambia. 

The story is only at the beginning and far from complete, but already an inspiring one.  It is a journey as they say, one that will evolve over the next several years.  Pastors Deborah and Steve Powell have been traveling to Kitwe for seventeen years, and founded the orphanage several years ago.  With no facility they placed children in host homes to provide security and nurturing.  In the summer of 2010 they were able to open the first phase of a facility with thirty residents.  The emotional, spiritual and intellectual growth of these children, aged three to fifteen years at the time, has been breathtaking.  With the security and education provided by the orphanage they have gained new confidence and a new vision for their future.  And that is what it is really all about, isn't it?

About three years ago I proposed an alternative way of constructing the orphanage.  At this point it appears that the development will be more traditional, but that is not the point.  That initial thought motivated investigation, new enthusiasm, and a series of new connections.  It was the beginning of a journey that is leading us to a place none of us imagined.

Last Monday afternoon I joined Deborah in presenting the vision, mission and goals of the orphanage and project to the design studio class at the University of Southern California (USC) School of Architecture.  Under the much appreciated auspices of Professors Alice Kimm and Eui-Sung Yi, the studio class has adopted our project for the semester.  The end deliverable will be a set of master plans for the continuing development of the orphanage.

It was an amazing experience.  While funding for the development remains a goal, we see USC's engagement  as evidence that we are moving in the right direction.  Future plans include completion of master plans and construction documents, a field trip to investigate site conditions, and pre-construction activities leading up to development.  When complete the initial phase of the new development will support one hundred residents with housing, education, a medical clinic, and the ability to be partially self-supporting through agriculture and trade.

A key goal of this project is to create a new model for developing orphanages.  A model that is simple yet which provides high quality services.  A model that is affordable in order to improve financial stability.  A model that engages and teaches local townspeople, giving them new skills and helping them improve their lives and future.  A model that can be duplicated by many people in many places.

In early work the students have been investigating similar types of projects in similar climatic and economic environments.  Understanding how to design facilities and systems that are relevant to context, supportable by local workers, sustainable both environmentally and operationally, and which further the goals of the orphanage is an important goal of this research effort.  What they have developed in the short time since the start of the semester is striking. 

There are several things to be learned even at this early stage of the project.  Good ideas often take time to mature and require faith to proceed.  Good ideas attract good people, who then adapt the vision and help make it better than it was.  Good ideas create positive change, and  a new future.  

Destined to Live the Good Life.  It doesn't get much better than that, does it?

Stay tuned for periodic updates as we progress. 

Summary Thoughts from the Workplace Strategy Summit

The IFMA Foundation’s Workplace Strategy Summit held last week at Cornell University was a big success.  It was unusual (at least in my experience) as it brought leading academics and design practitioners together with end user FM’s.  It was an opportunity to hear what thought leaders have on their minds and to place it in a real-world context as FM’s validated what they heard against their own experience and context.  Hosting the conference on a university campus was pure genius in my opinion.  The environment encourages a collegial exchange of ideas with the freedom to question and investigate. 

Here are a few of my own observations and musings coming away from the conference.

Evidence Based Design Is Essential to Workplace Evolution

Much more than programming a project’s requirements, evidence based design should challenge assumptions and old ways of doing business, and illuminate unrecognized truths.  User based research must inform design instead of design dictating use.  That seems like such an obvious and simple statement, yet project after project proves that it is often not the real practice.  As Frank Duffy said, “Buildings are not complete entities.  They share the environment around them and serve the organization that lives within them.”  If we truly think that way then we should also act that way.  Research which leads to evidence based design can only be effective when it is embraced by the user organization.  Part of that “embracing” is paying the bill.  While design is often thought of as a commodity by end users this attitude stifles innovation and makes positive change more difficult.  If you are building a cookie-cutter project then fine, decide based on the bottom line.  But if your project seeks to drive positive change or affect culture in a significant way, then hard data-based research that challenges what you think you know about your organization is important.  I would suggest that it may be the most important indicator of the probable success or failure of your project.  As one researcher at the event expressed so eloquently, “What you think you know about something is not research.  Show me the data!”

How Work Gets Done Is Changing

Some will tell you that distributed work is already the norm.  Everyone is mobile, everyone has technology, and everyone is looking to be less costly and more efficient in what they do.  Work is becoming more fluid and blended. On one hand this combination is helping to atomize work, breaking it down into discreet packets.  People who do not know each other and who do not work together in the traditional sense are able to collaborate and deliver successful projects.  On the other hand distributed work demands increased individual and group agility.

Innovation comes from the combination of high productivity and multi-level endeavor.  In some measure it is no longer about creating jobs.  Rather, it is about making people more productive.  Some may suggest that the “atomization of work” is making it less fulfilling with an assembly line feel, but the trend and energy behind this shift cannot be denied.  More productive people working in virtual environments that breed interaction and idea exchanges contribute energy and value.  One of the learning’s from the still early stage of virtual work is that often the most interesting information comes from people you do not know.  On the other side of the coin, the cost of coordinating distributed work is not being measured and needs to be much better understood than it is at the present.

Virtual Work Arrangements are Fundamentally Changing the Workplace

Just as the work is being changed the physical requirements of the workplace are also being changed, sometimes dramatically.  IBM’s Toronto office, for example, provides 2,500 seats for 6,000 employees.  Certainly some of those folks are deployed to client offices, traveling, etc.  Still, it is a remarkable example of the growing trend.  In addition, companies are now allowing staff to match their space to their task on a daily basis – in someone else’s facility!  LiquidSpace is one example of a solution that allows you to rent the space you need for a day or an hour.  The advantages here are obvious:  Employees can arrange access to space that matches the current need when it is needed, the company avoids capital investment, and the employee is more mobile and agile.  Think of it as outsourcing the free address space model. 

There is a very important mind shift in all of this.  The FM perspective for those supporting virtual work organizations should change from the old labor market and real estate model to a new labor market and space market model.  Both elements change, both are flexible.

The Workplace Strategy Summit was the brainchild of a few people (Michael Schley, Frank Becker, Jim Ware, Diane Coles, et al.) who recognized it as a good idea and committed to making it happen.  Good on them.  I don’t think they had any idea how successful and how pivotal the summit would be.  Kudo’s also to the IFMA Foundation for supporting and sponsoring the event.  Let’s hope it is only the first where academics and FM’s rub elbows.

Getting A Stalled Project to the Finish Line

I’m sure we have all had the experience of working on a project that seems like it will just never end.  When that happens each team member has a responsibility to share in ownership  of the problem and the solution.  In highly analytical environments just getting a project approved or started can seem daunting.  Once it is approved, however, tight execution and driving to the finish line should be everyone’s focus.

Why is it then that some projects, even those with solid work invested in them, can’t seem to finish the last five percent of the course?

When a project is stalled project leadership or organizational management have the primary responsibility to get it back on track.  What can they do to get it reinvigorated?   Let’s start with these…

• Ask the hardest question first:  What am I doing or not doing that is contributing to the delay?  Leadership’s number one responsibility is to remove obstacles to the success of others.  Are you really doing that?  Are you getting past the happy talk and searching for root causes, then taking ownership for those that only you can effectively mitigate?  Better yet, are you the root cause because of indecisiveness or lack of attention?

• Use analysis as a decision tool, not an implementation tool.  Once the project is authorized and funded the time for analysis paralysis is past.  If you did not take the time beforehand to conduct thorough due diligence then it is probably too late to do it now.  When projects are approved they come with a schedule that has consequences for late delivery.  Post-approval is not the time to be developing options – it is the time to get the project done.

• Change the mindset of the project team.  If they are bogged down they know it without you telling them, and they likely aren’t feeling very good about it.  Here you need to be a bit of a cheerleader while also instilling a new sense of urgency.  As a leader you can step in to motivate, assist and remove barriers, but avoid the urge to take over at all costs unless absolutely necessary.  Let the team retain accountability for the outcome but help them get to it successfully.

• Augment skills or knowledge.   You may find that the team has designed a good project but does not have all the skillsets/knowledge it needs to implement it successfully.  For example, solving a vexing process issue may require the intimate knowledge of those closest to the process to investigate, process map and re-engineer a solution.  As good as that solution may be it is useless if not implemented correctly.  If implementation requires technical expertise, say developing or modifying an application, then the team may not have the requisite expertise.  Get it for them.

• Re-plan the project.  Refusing to recognize reality by sticking to a plan that everyone knows is not working only further demoralizes the team and adds unnecessary pressure.  This is where leadership must be candid with itself.  Take a breath.  Recognize reality.  Develop a new plan to complete the project from its current state, communicate and vett the plan with the team to achieve their buy-in, then work the plan…and work it hard. 

• Kill procrastination.  If you were too uninvolved in the initial effort then pick up your game.  If you were indecisive then make this project a priority and move it along when it is in your own space.  Stay better informed and create a sense of urgency by requiring frequent status updates.  Ask what the team needs from you to break current deadlocks and then deliver the goods.

Not every project (at least in my world) runs perfectly.  That does not mean, however, that they must be unsuccessful in the end.  In fact, overcoming the challenges of difficult projects is a big learning tool, experience addition, and character test.  Successfully recovering a project in trouble is a big plus in any project manager’s toolkit.

Connecting the Dots - Why Economic News Matters to FM's

It is never a safe or necessarily wise thing to try to predict the future, and I am not.  Make no mistake about that.  But all of us should maintain an awareness of the world around us as we plan our personal and business lives.  I am generally an optimist and pragmatic, believing that trends are cyclical; when it's bad it is bound to get better, and when it is good a healthy dose of realism when planning is prudent.  That said, I also recognize that some highs are higher, and some lows are lower.
As I listen to the voices around me and filter them through my own biases and experience, some resonate.  A couple of information "dots" that I am now connecting give pause. 

Bill McBride over at the Calculated Risk blog is one of the best I see at giving us hard data coupled with objective information.  If you track his history over the last few years you will quickly understand why he is respected as one of the best in the area of simplifying economic information (why I appreciate him so much) for greater understanding.  He gives us this reality check as it relates to employment numbers.  We all know it has been a rough road.  Looking at this graph makes it clear that this has been a very deep and wide trench.  It is good that we have begun to claw our way up, but last week's employment numbers amplify that we have a long way to go.


Robert Zoellick, departing president of the World Bank offers a sobering summary of world wide economic fragility in this recent Wall Street Journal interview.  The list is long...Europe's issues, lackluster U.S. job growth, general lack of political will to make necessary choices, the impending "cliff" facing the U.S. economy, escalating difficulties in developing nations as they struggle with trickle down effects and their own issues all combine to form a daunting image of the months and year(s) ahead. 


The Conference Board offers supporting albeit more positive analysis, including the following statement on the outlook for advanced economies.  


"Advanced economy growth is expected to slow down from an already meager 1.6 percent in 2011 to 1.3 percent in 2012. For 2013-2016, the outlook suggests some recovery in advanced economies, bringing these countries back to the pre-recession growth trend of a little more than 2 percent."


I am not suggesting doom and gloom here and I note again that I am not a trained or even amateur economist.  However, I do pay attention to the data points as those who are expert talk.  From all accounts this will continue to be a period of increased risk and fragility.  This month and the rest of the summer will be important as Europe makes decisions that will affect all of us for decades.  Those dots have connected and will continue to do so.  They bear watching, closely.


As FM leaders we share a responsibility to guide our organizations through the future.  Keeping our eyes and ears attuned to the outside world as it changes and adapts economically is an important function in forming strategy and capital development plans.  

Count the Paper Clips

If you read this blog even occasionally you know that I am a big fan of data and metrics in managing the FM domain.  Our group routinely tracks, analyzes and reports data on the full breadth of services we perform.  As a result we are tuned in to the pace of our business and can almost feel minute shifts that signal change we should be aware of.

We are now reaping the daily dividends of a grass roots effort begun several years ago when “count the paper clips” first came into our lexicon.  That was the direction given when a manager asked, “What should we count?” upon hearing that we were going to undertake a metrics program.  It was a brilliant answer.

That response started us immediately.  If we had said, “Let’s design a program.  We need a system before we can start,” or asked “Who has the knowledge and skillsets we need?” we would have been stalled at the start.  The answer “count the paper clips” mobilized us to immediate action.  We did not have a system, program, or organizational structure, but we knew we could count them and we did.  While we were at it, we counted everything else.

As a result, we now have data going back several years on every facet of our operation.  Over time our capabilities and sophistication have grown.  When we started we knew how to count.  Today, we capture, analyze, project, and plan strategically based on what we know for certain and can predict with high accuracy.  We can anticipate shifts in business patterns before they occur based on well established relationships between disparate data points.

The payoff for us is not simply that we are able to do a better job with greater accuracy.  The job is also more fun.  By enabling our staff with training and giving them a vision we have allowed them to learn, participate, discover, and grow.  The great bulk of the work is accomplished by line staff who are in direct contact with systems, processes, and customers.  Virtually all team members have been trained in basic statistics including data gathering, data structure, pivot tables and pivot charts, data smoothing, analysis, and how to format and report operational data.

This metrics initiative fueled the start of our Continuous Improvement initiative when it came along soon after.  Unlike some others, the Facilities staff knew and understood the importance of data driven planning and were familiar with the routines and discipline required to be effective in the quality improvement effort.

Every month line managers gather to review metrics and analyses that have been produced by staff.  We track and analyze details to identify trouble spots and opportunities.  We investigate causes, analyze data, and adjust operations. We have seen our Customer Satisfaction scores improve markedly while getting more done and focusing our efforts on what really matters.  We work hard at it and the results show it.  Our group is rightfully proud of their abilities and we serve our organization better than we did before.

And it all started with counting paper clips.  

Improving Space Perfomance: Yet Another Cubicle Farm Bites the Dust

The design consulting firm DEWG helped pharma firm Lilly redesign a 470Ksf space housing 3,300 employees, converting it from a 20th century cubicle farm to a more flexible 21st century model, focusing more on work tasks and style and less on "turf ownership."  We are seeing more of these transitions as organizations look to increase efficiency and productivity, including optimizing the real estate portfolio.  The Lilly project offers compelling evidence that when done right these projects are true levers to organizational performance.

In this case, both employees and ROI numbers speak rather loudly.  Thirty-seven percent of employees said that their satisfaction with office appearance improved and twenty-seven percent said it was more stimulating.  Overall employee satisfaction with the workspace improved by thirty percent.

As impressive as that is, executives are likely more impressed with bottom line efficiency gains.  GSF/employee was reduced from 212 square feet to 156 square feet, furniture cost was decreased $4,200 per capita, and the overall capital cost per employee was nearly halved.

The goal of Alternative Workplace Strategies (AWS) is to maximize real estate leverage while at the same time improving employee productivity and satisfaction, and contributing to recruiting and retention efforts.  Lilly's project is not unique in its accomplishments, rather it is further evidence that AWS has long since moved past  "growing trend" status to being a favored tool of those responsible for corporate real estate.  

IFMA Launches Benchmark Data Exchange Utility

BEX is IFMA's new benchmark application which allows you to compare building data in real time.  Check it out here.  From IFMA's news release ...

Once enough data is collected to build a report, you can:

• Access survey data to compare hundreds of building reports to your facility’s data.
• Filter benchmark data specific to your needs—sort by industry, facility type, geographic region, facility size and more.
  

BEX is now open and collecting your facility survey data:

• CURRENT SURVEY: IFMA’s Benchmarks 6 - Annual Facility Costs
  
• COMING NEXT: Operations & Maintenance Benchmarks
• COMING SOON: Space & Project Management Benchmarks  

 
Nonparticipants may purchase an annual subscription starting at US$179.

FM TODAY: A STORY OF REALITIES AND VISION - Pt. 4

The Future of FM Is Up to Us

The realities of today naturally influence our vision for tomorrow and ability to attain it.  Although often painful at the moment these realities are guiding us toward a reshaped future that will be more efficient, which will demand and reward creative solutions, and which requires each of us to accept responsibility for our share of the outcome.  We have an opportunity to leverage the conditions as they now exist and dictate what we will make of them, and that is what we are in the process of doing on a daily basis.

FM’s often complain about not being heard and thus having to be in reactive mode most of the time.  When I hear these comments I often wonder how much FM is pushing the issue and how much we are to blame ourselves for being “comfortable” with the status quo.  Just as in any other area of life, if we do not like the current reality then we must accept our role in changing it.  Let’s not fall into the category described by the famous philosopher Pogo when he said, “We have met the enemy and he is us."

Fine, you say.  How do we do that?  How do we assume our role, accept accountability and move the FM agenda and profession forward?

We start by being the best we can be, by challenging ourselves more than others do, and by being thought leaders inside our organizations. 

We start by refusing to accept the status quo in ourselves. 

My challenge to each of you for 2011 is this:

• Demand more of yourself than you do of others
• Demand more of your staff than you have
• Learn what your CEO’s top three concerns are and address them directly
• Create solutions that inspire and amaze
• Lead by example with integrity and purpose
• Give yourself away by mentoring others
• Make the commitment first, then figure out how to accomplish it. 

Congratulations on a successful year and enjoy the holiday season with those you love.  It is a special time of year; make sure you enjoy it and capture its memories.  I will be back in January with new FM musings.

Global Population Shifts and Growth

Global population changes over the next fifty years are projected to shift billions of people from the "developing countries" to the "developed countries" category. Think of what that means for the businesses we support, increased homogenization of economies and the demands that will be placed upon FM. Take a look at Hans Rosling's presentation. Known for his use of technology to illustrate statistical data, Hans has outdone himself this time. Informative, illuminating, challenging and dare I say it, entertaining.  Hans Rosling on global population growth | Video on TED.com

Alternative Workplace Success Strategies

FM’s and their cohorts are challenged these days to maximize space utilization and functionality while providing their organizations ways to increase headcount, productivity and revenue without adding real estate. Generational shifts in the workforce also contribute to the need to think about the workspace in new ways. These are just a few of the reasons for the current move to what is loosely termed “alternative workplace” solutions. Exactly what that term means varies widely from company to company. Despite the differences in definition, however, there are similarities in successful programs.

Know the Facts: Any time you start changing people’s environment you will meet doubt or outright resistance. That makes it important that you do not start in “unarmed and dangerous” mode. “Unarmed” in this instance means uninformed. Know your numbers and the facts behind them. Measure space allocation and utilization with fine detail. If your organization has a space entitlement policy then factor it into the process as well. First, make sure your numbers are absolutely correct, then know the numbers, then understand them and their implications. Spend time analyzing them to tease out understanding and insights to opportunity.

Build Executive Support: Before going public take your case to the C-Suite. Don’t expect this to be a quick sell, rather, consider it an exercise in patience and education. But when they say “go” be ready to mobilize and move quickly. Executives will want to review your data at a top level and the analysis that led to your conclusions. Once they trust that you’ve done your due diligence correctly you will have their attention. Now point out to them the value and opportunities underutilized assets represent. Expect a discussion about how the company can best take advantage of the opportunity to align real estate with new or emerging strategies. Your role at this point is to feed them information and help them understand the opportunities available, the risks of not proceeding with a project, and the conceptual costs of implementation. Your goal at this stage is to emerge from the C-Suite engagement with a clear mandate and a strong executive sponsor.

Build Influencer Support: Recruit influencers from across the organization to participate in the project. Meet with them individually to share and sell the project vision and charter, bring them together only when each has bought into the plan face to face with you. Use this group to accomplish the continued fact finding and analysis, and to conceptualize early solutions. As an intended side effect they will also advocate for the program among their peers, helping to speed adoption throughout the organization.

Engage Employees: Employees have a vital stake in the outcome and are vital to its acceptance and your success. Make sure you engage them to solicit information about their needs and desires, and to inform them about the project’s goals. Take advantage of this engagement process to sell the benefits of the project such as enhanced collaboration spaces and tools, technology improvements, environmental benefits, and employee amenities. When you use surveys make sure they are thoughtful and be certain to share the results of the surveys on a wide basis. This will support later concept and development work by allowing employees to connect the dots between what they said and what the project delivers. Take advantage of “town hall” and “brown bag” style meetings to share progress along the way and solicit feedback, and to share design responses to the feedback later on so they can see they are really contributing to the evolution of the project.

Discover, Prototype, Pilot: Conceptualize multiple solution options and analyze each. Do not be afraid to be a little edgy with some of your concepts. They may be largely discarded but some ideas will emerge that will eventually be included in the final plan. Use these concepts to socialize options and elicit further feedback. Create pilot projects that build alternative work areas or collaboration zones and let staff experience them on a day to day basis. This process also gives the implementation team a chance to recognize gaps in planning or resources and take action to solve those issues before the large scale project begins.

Build Your Future: When you have made the final decisions then communicate them well and often. Execute with planned precision and make the process as transparent as possible. Allow those not directly engaged to observe the transition as much as possible along the way. Celebrate gains such as new technology, environmental stewardship, improved amenities and a new and better quality workspace along each step. Make a big deal out of it, because it is!

In the end you likely will have improved space efficiency and utilization, shifted to more team like space for some functions, collaboration will increase across the board, and productivity and financials will improve as a result. You will also have demonstrated leadership and enhanced the credibility of FM throughout your company.

Not a bad thing, eh?

Buying Strategies for Construction and FM Services

You would think that I should look forward to summer, after all it’s the vacation season and the beaches are in their prime. For many, however, this time of year is defined by budget meetings and projects that are racing to the finish line, just before the end of the Fiscal Year. And so it is these days. I’ve been carrying beach gear in my car for three months and have used it all of three times. Something is wrong with this picture!

Aside from racing to complete projects, I have been struggling with the issue of process requirements for contracting construction and services. Most organizations have strict policies in place for the purpose of protecting investment integrity and assuring maximum value, and I’ve got no problem with either. But there is a disconnect between the requirement to deliver projects rapidly (do it right now) and the requirement to comply with a strict contracting protocol (follow the rules exactly). Again, I am not against either, they just don’t always coexist very well. Having to gain pre-RFP approvals to authorize a project, then subsequently bid to multiple contractors/vendors, and then deliver the project in a severely constrained timeline can be a challenge. It is even worse when the projects or purchases are of relatively small value or when there are multiple instances in process at the same time. Welcome to my world.

But there are ways out of this dilemma. For starters, blanket purchase orders with pre-approved contractors and vendors will shortcut the delivery process. Done correctly these “investment quality contract vehicles” are even appropriate for large projects or tasks. Pre-qualifying contractors and locking in unit costs for various project elements or services enables a much faster response time. In this scenario, contractors have already run the gauntlet of approval requirements (contract agreement, labor rates, unit costs, MBE/WBE/VBE and SBA status, etc.), allowing them to respond quickly when tasked to price a project. Then it is simply a matter of selecting and executing. Some organizations are using this strategy to speed execution of large projects within very large programs where speed of execution is critical. It provides all the due diligence required, properly informs the selection process, and supports quality management.

There is a buying phenomena occurring now also. Given the economic times and difficulty accessing capital we assume that projects are being put on the back burner waiting for better times. Mostly true, but not always.

The normal model is to delay capital investment until the last responsible moment. But, just as real estate managers are renegotiating leases for longer terms (accepting more future risk) in exchange for lease rate or other concessions, some well-heeled organizations are buying construction now on future need projects to take advantage of today’s lower construction costs. This strategy is not for everyone but it is intriguing for those who have high certainty of the need. Private non-residential construction is now 35% below its late 2008 peak and still trending down. Those with the right project portfolio and the required capacity see opportunity and are acting on it.

Is It Strategy vs. Execution, or Strategy and Execution?

That may seem like a simplistic question with an obvious answer, but I wonder what the answers would be if we knew we were free to speak our minds on how strategy is developed, communicated and implemented in our own organizations.

I suspect that many FM’s would say that they are on the lag side of the strategy equation. Someone else formulates the strategy, hands it off to business units, each of which then does their best to align operations and initiatives with the new strategy. That’s fine as far as it goes. What it lacks, however, is cohesive and coordinated integration that recognizes and accommodates interdependencies between units. For example, an organization may have a strategy to improve its competitive position by increasing efficiency and lowering operating costs. That all sounds good, right? But what if IT’s response is to transition to new server and storage technologies while FM’s plan is to aggressively improve energy consumption efficiency? Are those two mutually exclusive? No, they are not. But they must be properly shaped, communicated and coordinated or they could create conflict between goals and execution priorities.

The current issue of the Harvard Business Review carries a series of articles about the linkage between corporate strategy and execution. Roger Martin makes the strong case that separating the two is a sure way to make failure a certainty. His point is that once strategy is decided upon it cannot just be delegated to others to execute. He prefers instead a model he refers to as a “Cascade of Choices” which links the two elements to create a holistic or “virtuous strategy cycle.” This model suggests shifting some decision making (choices) to lower levels as a way of broadening and deepening a strategy’s reach into an organization. It also helps make strategy meaningful to front line staff, a shortcoming that has sunk more than one strategy ship.

If you asked most of us we would say that the biggest obstacles we face include not having enough resources, lack of a clear strategy and conflicting priorities. A sound strategy and implementation plan that has been properly coordinated addresses all of those.

There are lots of homilies we could use to paint a picture most are all too familiar with. “Sometimes the good is the enemy of the best,” and “Catching the right wave is the second hardest thing to do, the first is knowing when to get off of it” are two that come immediately to mind. But a well conceived and communicated strategy identifies required resource shifts and priority changes needed to assure success, helping to mitigate against both conditions.

Said another way, creating and developing a strategy is the easy part. Its success will be determined by the organization’s ability to morph resources, priorities, energy and focus; supporting those things that help the strategy succeed and not supporting those things that work against it – even if they are long held favorites.

As FM’s we are in direct control of a very large portion of organizational assets. What we do and how well we do it makes a big difference at the strategic level. Ask yourself if you have the voice you need to effectively contribute to the strategy discussion and whether you are participating in the alignment and coordination dialogue, or simply taking a series of notes on a new “To Do” pad.

FM should be a thought leader within the organization, not just a bunch of folks working hard to get through today’s set of tasks. Your organization needs you to lead and, oh by the way…. You need you to lead.

Three Pivot Points That Are Influencing the Future of FM

Students of history will tell you that most often the course of human events is a steady march.  Along the way there are pivot points which redirect the journey, sometimes in small ways, sometimes in dramatic ways.  Most often, however, history is a march of progress made in incremental fashion, each increment building on, expanding and improving those that preceded it. 

The same can be said of the history and future of Facility Management.  We are today a logical result of what has gone before and contributors to what will follow.  In that latter role it is important that we survey our profession and discern where today’s pivot points are and work to guide the profession through them.  In my view there are three pivots occurring now which will have near term and lasting effect.  These are social and economic changes occurring in the world, strategic shifts in how FM relates to the world around it, and finally the knowledge management shifts with which FM integrates with business.

This is the first of a three part post that will examine each of these pivots in turn.

Pivot One:  Social and Economic Change

We have all heard about the new generations of workers now flooding the employment ranks and their differences from older generations.  More profound, however, is the realization that the world’s population numbers are changing in broad and fundamental ways, as evidenced by the following data (Martin Walker, “The World’s New Numbers,” The Wilson Quarterly, Spring, 2009).

• In 1998 the number of people in the developed world over the age of 60 outnumbered those below the age of 15 for the first time.  By 2047 the world as a whole will reach that point.
• The world’s median age today is 28, by the middle of the century it will be 38.
• Of mid-20^th century demographic titans Russia, Japan, Britain, Germany, Italy, and the U.S., today only Russia, Japan and the U.S. remain in the top ten.
• China, today’s demographic colossus, will have a shrinking population in 2050.

These population changes have direct implication to FM because FM has always reflected the realities of the world and businesses it serves.  As economic power shifts around the globe we will be challenged to be in front of the shifts, enabling government, business and society as the world adapts.  Those who are not cognizant of the changing landscape will be disadvantaged at the beginning.  Conversely, those who do understand will have opportunities in developing regions that have need but do not have the knowledge or technical infrastructure required to sustain development.  We will be increasingly challenged to envision, plan, build and support operations that span countries, cultures, and companies.

In concert with this fundamentally changing world population add economic stress resulting from continuing global financial challenges.  The challenges and the stress are going to be with us a while.  Recent difficulties in Europe and a potential “second dip” in the U.S. portend an extended period of capital fragility.  Governments are cutting back on programs across the board.  This idling of one of our largest development engines will have a near term effect as projects slow down, and a long term effect as the pipeline for future projects and initiatives further constricts.

It is true that a mild recovery appears to be underway in the U.S., but it is mild and global economic issues will continue to add pressure that may stifle the early momentum.   G20 Finance ministers yesterday dropped their support of fiscal stimulus plans, making it clear that they no longer believe expansionary policies are sustainable or effective as a way of supporting economic recovery.  From the G20 communiqué: 

“The recent events highlight the importance of sustainable public finances and the need for our countries to put in place credible, growth-friendly measures, to deliver fiscal sustainability, differentiated for and tailored to national circumstances.  Those countries with serious fiscal challenges need to accelerate the pace of consolidation.”

Note especially the emphasis on individual nations being responsible for cleaning their own houses as best befits their situation.  

For FM’s it is important to realize what this global financial crisis means to us strategically and operationally.  This is the “dark side” of globalization.  It was great and now it’s not, and it’s really not.  The interdependencies that have become the nervous system of international finance affect us indirectly but quickly.  The U.S. and to a slightly lesser extent Europe are primarily consumer economies.  With governments now less able and less willing to spend their way out of recession pressure on the private sector to take a stronger leadership position is increased.  That is hard to do when unemployment prevents consumers from spending.

Employment indices for Europe and the U.S. paint the picture. 

Euro zone unemployment exceeds 10%  (EuroStat, June 5, 2010)

U.S. job losses are deep and long  (Calculated Risk Blog, June 6, 2010)

The combination of these two large events; the shifting of global population and age demographics along with extended and widespread financial stress, represent a pivot that has and will continue to change the course of human history.  Nations, industries, businesses, families and individuals are all affected, and all are reacting.  In this environment it is FM/CRE’s responsibility to steer a studied and well-considered course, to advise our constituencies, and to provide leadership when and where opportunities present themselves.

Next week:  Pivot Two – Strategic Alignment in an Era of Ambiguity

Learn the Right Business Continuity Lessons the Right Way

Someone once told me that practice does not make perfect as is so often claimed, and they were correct.  Perfect practice makes perfect.  I was reminded of this recently when conducting a table top exercise to test our ability to respond to an emergency event.  In disaster response and business continuity planning it is always important that you practice the details correctly.


When faced with unusual circumstances humans quickly conduct a database search in their brain, looking for similar experiences to use as a reference point.  They then act as they did then or as they observed.  That is why training correctly is so important.  What you do in training is what you will do when the real thing happens.  For example, if your assignment is to record information and you have specific logs for that purpose then use them when training.  Do not use blank sheets of paper or a handy whiteboard.  Practice using the tools you've been given and set that mark indelibly in your brain.


There is another way to practice of course.  That is to experience an actual event without preparation beforehand.  Not the preferred way of learning in my book.  


In his new book Business Continuity Management Michael Blythe addresses questions we should all be asking ourselves in the BCP arena.

• Did pre-crisis assessments identify risks and prioritize them appropriately?
• Did mitigation efforts offset the damage?
• Were managers well equipped?
• Did they implement contingency plans?
• What post-incident risks were not anticipated?
• How should strategies be modified in light of this experience?
• What tactics, training and policies need to be revised?

Personally, I would rather learn the answers the easy way, by anticipating and practicing correctly, identifying gaps and re-mediating them before being faced with a real situation.

Building A Data Center Is Always About Size

Building a data center is a large undertaking. The costs are big, the risk is big and often the size is big - sometimes bigger than it needs to be. It seems there is a seduction to data center projects. Big is better. Build big and reap the economies of scale in both the engineering and purchasing domains. Spend tomorrow’s capital today when it’s cheaper.

Yesterday, maybe. Not today. Here is an alternative strategy.

Build a big box but do not completely engineer it or provision it. Build only what you need when you need it. Build in modular format and replicate the modules as you grow into the big box.

What, you say? Have multiple projects over years to build out the same size space? What sense does that make?

Perfect sense. For starters this strategy has the following immediate advantages.

• Deferring investments and interest until needed not only makes financial sense, it also avoids stranding capital in technology that has become obsolete or inefficient by the time it’s needed.

• Small projects have shorter planning timelines.

• Saves on conditioning and maintaining space and equipment over time.

• Allows you to take advantage of design and technology knowledge increases for all new projects.

• Allows you to build tiered modules and save the cost of building system robustness where it’s not needed.

Tier 1 centers cost an average of $9.9 million for each 10Ksf. Tier 2 centers average $19.3 million, Tier 3 $25.6 million, and Tier 4 centers average $34.5 million for every 10Ksf.

Those are hefty costs my friend. If you are considering a data center project also consider building smart. More and more that means building for today and not for tomorrow.

A Shifting Global Economy - Who’s Gaining and Who’s Losing?

You need look no further than the large corporate merger and acquisition scorecard to see that economic power is shifting around the globe. Ken Smith’s article in the June issue of the Harvard Business Review makes the case nicely and points to both risks and responses. But first, who are the gainers and the losers?

Gainers		Losers
France	$234B	U.S.	-$220B
Spain	$101B	U.K.	-$187B
Belgium	$79B	Canada	-$158B
Switzerland	$67B	Netherlands	-$111B
Germany	$53B	Turkey	-$24B
UAE	$37B	Chile	-$13B
Japan	$33B	Czech Republic	-$11B
Luxembourg	$30B	Hong Kong	-$9B
Australia	$20B	Indonesia	-$8B
China	$15B	Ukraine	-$8B

As with any shift scenario this one presents opportunity and risk. Organizations involved will need to work out operational details, resolve cross-border governance and decide how deep the shift will go. Will executive management location for the acquired unit remain or move to the gaining country? That is a key decision since moving the executives means that other key support functions such as Finance and Corporate Real Estate are likely to follow in order to maintain strategic and operational alignment.

Competitors will feel pressure to match an acquisition if they percieve a need to match either growth or offering expansion. Doing so smartly can help maintain competitive balance, executing poorly can create competitive separation.

As these M&A’s occur CRE and FM groups are challenged to keep pace. Operations must be aligned; and reporting and management systems must be integrated or shifted. Portfolio strategy and key alliance relationships will inevitably be affected, and CRE’s/FM’s must be proactive in doing so.