IFMA Foundation Workplace Research Summit

I am attending the summit here at Cornell University in beautiful, and I do mean "gorges" Ithaca, NY.  First time here and I am looking forward to both the conference and experiencing the surrounds.

This summit is focused on informing the workplace research agenda.  Attendees include academics and design practitioners who are some of the most important and influential critical thinkers on workplace issues, and facility management professionals from a wide range of organizations.  If this evening's kick-off reception is any indication this will be a lively and engaging event with free flowing information and debate.

In my conversations this evening I was struck by the fact that everyone seems to be dealing with issues surrounding the changing workplace environment.  Regardless of what type of organization one may represent the push to increase collaboration, realign workplaces and work processes to improve efficiency and accommodate younger workers, and lower real estate and operating costs is front and center on the FM agenda.

Presenters include: DEGW founder Frank Duffy; Frank Becker of Cornell University; Alexi Marmot of University College London; Noboru Konno of KIRO in Japan; Susan Stucky of IBM; Michael Joroff of MIT; and Philip Ross, founder of the Cordless Group and the Worktech Conferences.

It is an impressive line up to say the least.  Stay tuned as I update between and during sessions via Twitter posts.

Facility Management's (FM) Role in Sustaining Recovery

Investment capital will become more available as global economies emerge from extended malaise .  Competition for that capital will be intense.  Important and challenging business and social issues are present everywhere we turn.  A growing and aging world population, demographic and power shifts, healthcare costs and capacities, geopolitical stress and transition,  the protection and sustaining of natural resources to name just a few.  The list could go on and on, each important on its own merits.

Therein lays the problem.  The list is long, capital is short.  There is not enough money available in all of the world to fix all of the world’s problems.  What are we to do?  What role can FM play in the search for solutions?

FM has a responsibility and a need to lead in the development and implementation of effective solutions.  While we are not charged with saving the world from all of its ills we are the stewards of a large portion of its assets, represented by the existing built environment, new facilities and the natural resources consumed in their development and operation.  How we exercise this responsibility is determined by our day to day actions and the decisions we make. 

How then shall we go about contributing in a manner that informs our organizations, elevates FM’s leadership role, properly preserves and deploys capital, and stewards natural resources for which we are both consumers and interested in sustaining?  Here are a few thoughts.

Recapitalize the built environment:  As recovery makes investment capital available we must make good decisions about where and how to invest.  Much of that investment must be in recapitalizing the existing built environment, including facilities and infrastructure.  It is too large and too important to do otherwise.  Further, recapitalization extends the useful life of assets and avoids unnecessary diversion of funding to new development, which also lessens consumption of resources.  Your job:  Perform condition assessments and develop informed strategies and plans.

Improve FM’s financial skills:  As capital comes available there will be enormous competition as long pent up initiatives in all areas of business reach for the same resources.  New product development and maturation, sales, marketing, research and talent will all be consumers of what is a finite resource for every company.  FM’s ability to understand the business as a whole and develop solutions that solve enterprise problems and make economic sense will be a lever for increased capital flow to projects that make a difference.   Your job:  Improve financial analysis capabilities inside FM and develop strong links with your CFO.

Build effective business cases:  Effective business cases begin with objective analysis of accurate business data which leads you to the right projects and initiatives.  Once you have the right capital investment strategy and portfolio it is up to you to effectively make the case and gain executive approval.  The very best plan and strategy in the world is absolutely useless if not acted upon.  Too often FM fails in gaining project approval because it does not present a balanced and compelling case.  Your job:  Improve or add effective communication and presentation skills to the FM suite.

Develop a long term budget lens:  Not that FM can drive this one, but we can encourage and inform the dialogue on investment return.  The traditional short term focus on investment return marginalizes long term benefit generation.  Investors require a quick return so we build projects and operate in ways that maximize short term return.  Sometimes in doing so we accelerate future capital deployment.  Not paying attention to a growing deferred maintenance backlog is one example.  That backlog will most likely continue to grow, asset condition will continue to deteriorate, and eventually (sooner rather than later) it will need to be replaced.  The short term focus also works against adopting new technologies that improve building efficiency.  In today’s world of rapidly changing technology this issue is not to be discounted.  More efficient buildings provide greater productivity, lower operating costs and higher occupancy rates, each a key competitive lever in its own right.  Your job: Present business options that explain Total Cost of Ownership over the entire life of the asset.

Improve your sustainable profile:  Sustainability has moved deep into the consciousness of the business world primarily because it makes good business sense.  Nearly everyone cares about doing the right thing, but when you can do the right thing and improve competitiveness and the bottom line you have a real winner.  That is why your Board of Directors is putting pressure on leadership (and don’t think they aren’t) to improve sustainability.  You should be doing it for yourself as well.  Sustainable initiatives can improve quality, lower operating cost, allow redeployment of resources, extend life cycles and a host of other good outcomes that you care about because they make your life easier.  FM is one of the biggest levers for sustainable performance and should be one of its biggest champions.  Taking a leadership position on an important issue with executive level visibility which provides social and business benefits improves FM’s credibility and perception as a savvy and visionary partner.  Your job:  Become a Subject Matter Expert in sustainability and how it can be leveraged to improve your business.

Innovate:  Innovation can be a game changer.  Whether it be by integrating technologies in a new way, rethinking your business/service model, developing new space paradigms that improve collaboration, or partnering with other parts of your business to add value – all have potential to improve FM’s performance and value.  Innovating, however, requires taking risks, something that many FM leaders are reluctant to do.  Risk is minimized by thorough due diligence and that should be your approach.  Have a good idea?  Think it through.  Engage others.  Model it.  Run a small pilot project.  Innovate!  Your job:  Be alert and receptive to new ways of doing old things, and new ways of adding value in your area of responsibility.  Be willing to fail on occasion on your way to wins that make a difference.

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.  

Construction Activity and Materials Costs Moving Higher

Buildings Magazine reports that non-residential construction activity is up 2% from last year.  Most sectors appear to be on the rebound except public works.  Overall commodity increases are running slightly higher at 3% on average, with steel and carpet (6%) and paint (8%) leading the way.  Lumber and brick are trending down, plywood remains essentially flat.


One can make one's own determination on the future trajectory of this chart.  Some will interpret it as a sign of gathering turn around momentum while others will suggest that the pull back in government spending in the public works sector is likely to create future drag.  Time will tell.


For now, however, activity is up and price increases appear moderate.  Those, at least, are positive signs.

Facility Manager Juggler Videos

In the early 1990's (how long ago does that seem?) Steelcase produced a series of videos on the daily trials, tribulations, and triumphs of facility managers.  They are a bit dated now obviously, but still some of the funniest and truest explanations of the "Art of FM" around.   Here is the first in the series.  Enjoy.

CoreNet Global Study Predicts Shrinking Office Space

A new CoreNet Global report predicts that the average U.S. office employee space will shrink to 100 sq. ft. or less in the next five years.  The report cites growing collaboration work styles and economic pressures as the main drivers behind this trend, which is moving U.S. occupancies closer to the European standard.

This type of fundamental shift will affect virtually every facet of the design, construction and facility management industries.  Organizations that go this route will be faced with developing new or enhanced workplace policies, including an increased emphasis on office etiquette and behavior management.  FM's will be in the forefront of these changes and in some ways will be most affected.  Designers and builders will complete projects and move on to the next one, while FM's and their HR and operational cohorts will be left to live in, work in, and manage the new work space.

While some will make the point that these new workplace standards fit the work styles of younger generations now becoming predominant in the workforce it is also true that not every type of work will lend itself easily to this change.  Concentrated cognitive work, for example, requires greater visual and acoustic privacy than other forms of work.  In these types of organizations the spatial changes potentially have deep implications to the quality of work product.  In all cases, the importance of thoughtful consideration, function-centric design and accommodation, and well managed socialization of the change process will be essential.

Not to be overlooked are implications to the CRE industry.  A true contraction of space requirements of this magnitude can be expected to affect vacancy rates, project activity, and capital investment in new inventory.

Read the CoreNet Global press release here.

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.  

A Primer on Project Retrospectives

We've all heard the terms "post-mortem," "lessons learned, and "after action" in reference to project reviews.  If you are like me these reviews are an important learning tool but all too often turn out to be less than they could be.  I like the concept of project "retrospectives" a lot more.  The term itself implies a different kind of experience.  What I like even more is the structured approach demonstrated in Esther Derby's presentation below.  It includes the use of tools that will help pull information and concepts forward, defines an inquisitive approach, and offers good do/don't guidance.

Remember too the value of conducting these retrospectives at the start of a new project.  Take the time to refresh team member memories of learnings from past projects and discuss them in the context of the coming project.

Agile Retrospectives

View more presentations from Esther Derby

Baseball, Data, and Facilities Management

A friend recently sent me a link to a LA Times op-ed piece that used Sandy Koufax’s 1965 perfect game as a data collection object lesson.  This was of interest to me because I was a big Koufax fan (the only time I ever cut class was to watch him pitch his gem against the Minnesota Twins in the ’65 World Series) and I have an interest in data as it relates to the world of FM.  The article is both enjoyable and informative, and makes a couple of points relevant to those of us who collect, analyze, or use data. 

You can never have too much data

Often people choose not to collect certain bits of data because they do not have or know of a current need for it.  As the author points out, however, we sometimes later wish we had data that we could have had if only we had collected it. With new analysis systems and protocols we can learn things from old data that help us today.  The example he uses in the article is how collecting additional pitch count data changed the way pitchers are used, thus extending their careers and value. This data always existed but was not collected prior to the 1980's.  The potential benefit of the data existed but was unrealized because it had not been collected.

Investigating old data can lead to new learning, which in turn results in improved operations and services.  Our FM group is a case in point.  For years we have been collecting and using data on the full spectrum of services and operations.  We collect much more data than we analyze or report, but when we need it, it is there.  For example, we have millions of lines of BMS data which allows us to conduct rigorous analysis and troubleshooting when needed.  The point is that we did not have a specific need for the data when we started collecting it.  We just did because we could.  Now, having that data available opens the door to important insights.  It allows us to investigate root causes, to map relationships among various indices, and to gain valuable knowledge and wisdom that contribute to improved designs and process modifications.

Home run or hit-and-run?

Some baseball fans love the power game, as evidenced by the popularity and predominance of power hitters.  Others enjoy the nuance of the tactical game.  In the business of process improvement, however, the advantage goes to the tactical, the nuanced changes.  In business it is rare that you can achieve a large and dynamic change, a “homerun” that dramatically improves operations.  It is much more likely that improvements will be incremental with accumulated effect over time, much like a single, hit-and-run, stolen base and sacrifice fly will result in a run scored.  None of these represent a run by themselves but each is a key part of the sequence that produces in the end.  Would you rather take a big swing with lower odds of success, or spend the time to gain clarity and swing at exactly the right spot, at exactly the right time, with exactly the right force?  The answer is obvious, isn’t it?

Foresight and imagination enable discovery

Understanding at the earliest stages of a data collection project that you do not and cannot know how that data may eventually be used is an important point.  It allows you to take a wider approach to collection and a more diligent approach to the care of your data, and suggests a healthy inquisitiveness and respect for the unknown that lies in the future.  Data that has been diligently collected over time can be synthesized to investigate specific issues and discern patterns, leading to understanding and improvement.  This may come in the form of a revised process or identification of a problem or opportunity.  Regardless, the result is improvement.

Finally, understand that data survives individual systems.  Systems come and go.  They become obsolete and get replaced, or a new vendor may bring a new system into your operation. Regardless, the data is tangible, it is yours, and it is a hard asset.  Treat it that way both in how you care for it and how you protect your legal ownership rights to it.

Take care of your data, and your data will take care of you.

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.

Choosing the Right Service Model

Selecting the right service model for your CRE and FM organization is a fundamental determinant of your ability to succeed.  Executing the plan well is important of course, but does little good if you have selected the wrong plan.   Corporate structure, size, sophistication and culture will all influence your choice of service model, which must be well aligned to optimize potential.

This makes understanding your organization well in these multiple dimensions a high priority as you engage on a service model review process.  This understanding will be the keyhole to insights into opportunities and risks with the various service models, as they relate to your particular situation. 

While there are a multitude of service model options, there are three general classifications into which they tend to fall.  Understanding the characteristics of each will help you understand their alignment with your organization, resources and skill sets required to manage, and their respective advantages and disadvantages.

Best of Breed Services Approach

This service model places the CRE / FM organization in direct control of a number of specialized service providers.  These may range from real estate transaction management, design and construction management, all the way to operational functions such as maintenance and general services.  This model allows you to select the best possible provider for each function, effectively putting CRE / FM in a General Manager’s role.  If your organization is global then you have the freedom to select the best providers in individual markets.

By selecting the best service providers for each function and region you enable service excellence.   In addition, corporate CRE / FM groups retain appropriate control of tactical execution while avoiding the risk of single point dependency. 

However, it is not risk free or without burden.  Taking this approach will require attention to governance processes and consistency.  The CRE / FM staff must assure that uniform standards are in place and met by all providers, that accountability systems are in place and equitably exercised, and that sufficient resources are in place to manage a large number of contracts and relationships.

Not to be undervalued, it is critically important in this model that disparate entities be harmonized as much as possible.  This means special attention to KPI’s, technology, contract synchronization, quality of resources, and solving the technology puzzle in a manner that allows CRE / FM to receive and communicate a rationalized perspective of operations with high confidence. 

Bundled Services Approach

The bundled service model describes a one to one relationship between the CRE / FM client and a service entity that directly provides all services.  It provides a consistent approach to all services and strong cross-functional coordination since all have the same reporting and reward mechanisms.  Additionally, it provides a single point of contact for the CRE / FM group, thus lowering the internal management resource requirements. 

The advantages to this model are consistency, economies of scale, and transparency.  It is incumbent on the CRE / FM client to establish a contractual and relationship framework that maximizes these benefits while allowing flexibility to continually press the “art of the doable” upon the provider.

Primary risks in this model are the single point of failure nature of a one to one relationship, and potential uneven service performance across the entire portfolio.  The latter increases in leverage the more dispersed your portfolio is.  An additional risk is that the line between client and provider can become blurred, even internally.  In worst case scenarios this can make the CRE / FM group seem irrelevant or without influence.  For this reason alone CRE / FM groups that adopt this model must have strong internal executive leadership.  Selecting a single provider may indeed be the right choice, but it is always important that both parties clearly understand who is serving whom.

Integrated Services Approach

Similar to the bundled services approach, the integrated services approach provides a strategic alliance between client and one contractual partner.  Unlike the bundled approach, the Integrator is able to source individual functional services from the best providers available in a given market. 

The integrated services approach is in many ways a combination of the first two models with most of the benefits of the best in breed approach.  Additionally, it transfers the responsibility for management and coordination of multiple service provider contracts to the integrator, thus allowing for a smaller internal CRE / FM function.  While there is still the dependency risk of the one to one relationship model it is diminished by the integrator’s ability to individually source functional service providers.

This model also has the advantage of placing technology in the integrator’s sphere of responsibility.  They then must assure that a wide array of service providers deliver information via the same or compatible technology applications so that data management, analysis and reporting are consistent and transparent across functions.

Risks inherent in the integrated services model include the integrator’s ability to manage a number of service providers in an integrated and transparent manner, and a poorly constructed governance system that allows individual players too much autonomy.  Care should also be given during the development phase to assure that the total management structure and cost across the service spectrum is optimized.  CRE / FM groups should insist that they be given full visibility into the contractual and management framework between the integrator and its multiple service providers, to assure that an unhealthy and costly management bureaucracy is not being implemented.  You must provide and fund appropriate management but should avoid redundancy where not needed.

One final note here applies regardless of your service model choice:  The coin of the realm is data.  Accurate and timely data about all facets of your operation is the only way you will know when things are working and what’s wrong when they aren’t.  Developing your own data capabilities (acquisition, analysis, and articulation) is a critical first step.  From that position of knowledge and confidence you will be able to demand strong data discipline from your service partners.  Without it you will be hostage to the unknown and unproven.

Alternative Workplace Solutions (AWS) Continue to Evolve

There are many reasons why the shift to Alternative Workplace Solutions (AWS) continues to develop momentum, not the least of which is a confluence of environmental factors.  We are simultaneously experiencing fundamental shifts in different dimensions, each of which in its own right would have caused change.  The fact that a significant generational change in the workforce is occurring at the same time as near-cataclysmic economic change presents unique challenges and opportunities.  Organizations all over the world are adapting to these realities.  How well they do may determine their eventual success or failure.

Clearly there is no “one size fits all” workplace solution.  Each organization must understand itself at a deep level and engage in a thoughtful exercise to determine the optimal solution given its unique set of circumstances.   This is not to be under appreciated.  Too many companies lean too heavily on outsiders.  They may be subject matter experts in design, workplace strategies and the like, but they are not subject matter experts in you.  Only you can fill that role.  Using outside consultants correctly will be an essential part of successful workplace transition, using them incorrectly will be part of failure.

The Scale and Speed of Workplace Change

A common theme I hear is that the speed of life in general and business in particular has increased to the point it is difficult to keep up with.  Don’t expect that to change - ever.  The rate of technological change will continue to increase.  As it does its implications to workplace and personal technology will increase, including the increasing merge of the two dimensions.

Technology changes and continuing globalization will continue to drive new workplace strategies.  Already we see organizations spreading their global reach while at the same time reducing their footprint.  Both of these strategies influence the workplace in fundamental ways requiring increased attention to corporate and societal culture.  Making culture transition a key part of your change management process is a critical step in promoting acceptance. 

We hear and see a lot about alternative workplace solutions in technology companies.  Often these are characterized as being more open, less private, having higher collaborative qualities and leveraging technology.  All well and good.  But not every company fits that profile.  In these cases it is especially crucial that FM practice leaders focus on the details of business processes, communication systems, naturally occurring culture shifts, and how these can be managed and leveraged.  Not all alternative workplace solutions will result in dramatic “new world” makeovers of space, but all of them will result in multi-dimensional change which must first be anticipated, channeled, and finally implemented with great care.  Alternative workplace projects are not to be taken lightly.

A Growing Tension Between Real Estate and Technology Change

While real estate and technology are often supportive strategies to each other, they have much different life cycles, and both represent large investments.  Real estate decisions typically have life cycles measured in decades while technology changes every three to five years.  This fact alone sets up ongoing tension as the two evolve over their separate time lines but must be managed in tandem with each other.

When either approaches a point of change then the tension between the two increases.   A real estate strategy to increase density and collaboration (often characteristics of alternative workplace projects) is likely to require increased technology investment.  A real estate strategy decision may allow downsizing or redeployment of space but depends upon technology for successful implementation.  The risk of fast moving technology changes obsoleting real estate strategy is real, making integrated planning between the two functions more important now than ever before.   Increasing real estate agility through portfolio balance helps to dampen investment risk, with the benefits of easing and speeding investment decisions.  One way of increasing agility is to increase the ratio and vary the life of lease space in the portfolio, but this too comes with a set of compromises that must be balanced and accommodated.

At the bottom line alternative workplace solutions are an increasingly important tool in the FM/CRE toolkit.  But they must be customized to each unique set of circumstances, environment and culture to be successful.  They must anticipate and support the nuances of your organization and are thus more likely to succeed when implemented by those who best know the organization, its goals, challenges and culture.

Relationship Management Is Key to Strategic Business Alignment

When working to strengthen FM strategic alignment with the business do not overlook the importance of a strong relationship management program.  “Program” implies that this effort is intentional, as it should be.  Too many FM’s make the mistake of concentrating solely on the immediate project or task and do not pay enough attention to purposefully managing stakeholder relationships.  Relationship management, however, is a critical element of FM success, especially at the leadership level.

• A close relationship between functional leadership and customers ranked fourth among enablers that help increase strategic alignment.  (Luftman and Brier)

• Conversely, lack of a close relationship ranked first out of fourteen identified alignment inhibitors. (Luftman and Brier)

• Business executives repeatedly downplayed the value of formal organizational structure, but frequently emphasized the critical role of relationships in achieving strategic alignment. (Chan)

The best relationship management programs are not only intentional but also multi-level.  Peer-to-peer communication occurs on a routine frequency at all levels of the organization, informing the alignment process up and down the FM chain.

While it is beneficial that these interactions occur at all levels it is most important that exchanges at the business unit and executive levels be especially well tuned.  This is where the most important information resides and where FM has an opportunity to learn the most about stakeholder issues, plans and initiatives.  With this knowledge FM leaders can be proactive with projects and services in a manner that best supports core business outcomes.  That is, after all, what alignment is about.

At the strategic level executives will want to be intentional about maintaining contacts and a pattern of communication which shares information.  These conversations take many forms, some of them of a more informal nature.

At the tactical level there are many ways to increase the alignment dialogue.  One common methodology is to designate specific Customer Relationship Managers to interact with their counterparts or senior executives in business units.  Often this takes the form of a zone management program in which building specific information and projects  are shared, but it need not be that tactical.  If it is, the strategic dialogue should be a specific touch point as well.

Alignment, however, is not a one way street.  While FM may be seeking to align its strategies and operations with core business strategies this process also informs stakeholders about FM’s capabilities, forward leaning attitude and willingness to be a true partner in the business, not just a “call me when you need me” service provider.  It is a critical difference.  The more business stakeholders accept FM as a full partner in the enterprise then the more leverage FM can apply to positive effect.

The Missing Facilities Management Generation

Steve Westfall's editorial hits the nail on the head.  The looming talent gap is not just an Oil and Energy sector problem.  His editorial, however, makes the point succinctly.  Who is doing something about it?  What are you doing about it? 

Total Cost of Ownership and Life Cycle Management Support Asset Investment Decisions

Master planning, Project Delivery and Integrated Life Cycle Management are three distinct processes which when properly coordinated result in a true understanding of the Total Cost of Ownership of a property or portfolio.  This holistic approach to asset management improves the quality of FM planning and services by objectively comparing development options and modeling various operating scenarios.  Taken as a whole and exercised in an integrated fashion over the course of a facility’s life they present a total picture and inform investment and operating decisions at every step.

The key the achieving the desired outcome of information sharing across the three domains is agile systems integration and cooperative communication between the principals involved. 

Reduced to its simplest state, the model takes bottom up information from each of the three domains.  Each domain then synthesizes its own set of data and needs into its formal output, which is then shared with the other two domains.  That said, there is a closer link between Project Delivery and each of its two partners than they share with each other.  Master Planning and Life Cycle Management communicate with each other through the Project Delivery process.  Master Planning contributes asset investment planning, program needs and approval protocols to inform the design and construction process.  Life Cycle Management contributes operations, maintenance and recapitalization information, as well as learning and knowledge gained over the course of a building or portfolio’s life.  The Project Delivery process uses these inputs to develop designs and provide operating models that help improve resident processes.

Master Planning integrates three distinct planning processes with the resource planning process.  The Growth and Impact Plan, Operations Plan, and Capital Needs Plan ask for resources which must be found and allocated.  Resource planning focuses on priorities, resource alignment, and tracking of results.  It, more than Master Planning, is a constantly shifting environment with potential to significantly alter what is possible based on market realities, as we have all experienced in the last two years.

Total Cost of Ownership

Asset Investment Strategy

Capital Needs Plan                                                                                          

Retrofits                                              

Renewal/Replacements                         

Compliance                                          

Life Cycle Plan                                     

Operations Plan

Labor

Materials & Equipment

Systems & Processes

Energy & Utilities

Growth & Impact Plan

Additions

Infrastructure Expansion

Space Plan

Property Expansion

I sometimes run across organizations that fail to understand, appreciate and plan for the real cost of developing new projects.  This leads to under-resourced operations, a growing backlog of deferred maintenance, and financial inability to replace assets when needed.  This is not readily apparent during the grand opening of a new project, but is sometimes glaringly obvious even in the relative early stages of a project’s life cycle.

It is incumbent upon FM’s to understand these issues and their importance, and to communicate and inform decision makers.  It is much easier to do so when one understands financial language and basic principles, and can communicate with decision makers in terms they understand.