Introduction Lecturer – Daniel Wong, MBA, MSc, BBus, GMM, FSM Email : orgaz_xp@yahoo

1. Introduction • Lecturer – Daniel Wong, MBA, MSc, BBus, GMM, FSM • Email : orgaz_xp@yahoo.com • 9 lectures – from 8 Jan 2018 onwards • TG Library Resource

2. Module Assessment Assessment of this module is by one assignment (30% of the overall module mark) and exam (70% of the overall module mark).

3. The Origins, Scope and Definitions of Facilities Management Facilities Management 1 [D13FM] Unit 1

4. The Origins and Definitions of Facilities Management The key elements of the unit are:- • the changing FM environment, issues and response • the nature of strategic and operational FM • the strategic and operational relevance of the distinctions between facility management and facility management. The Historical Setting Of Facilities Management <Unit 1-3> To Understand FM before defining it : - What FM is, - How it operates and - To what extent it offers sustainable efficiencies for businesses. • FM can serve more than mere cost savings and transfer of risk remains for many Current development ??

5. The Origins and Definitions of Facilities Management A Hypothetical Model For The Emergence Of Facilities Management <Unit 1-6> Characteristics of Early FM - Rapid growth driven by market - A transformation from the maintenance management organisation? - Driven by desire to transfer risk – done by contracting-out the support service - Advantage of testing the market’s service quality and service cost First Definition of FM -Focus on what FM does -Contract out the support service

6. The Origins and Definitions of Facilities Management Second Definition of FM • Based on how the service is done and what it does • Example, economies of scale, combined security mgt, cleaning and maintenance mgt • Outsource what is non-core services The Growth of Facilities Management <Unit 1-7> Third Definition • A combination of what is done, how it is done, and what advantage there is for business • Immediate economies grow and multiplier effect occur in parallel • Stay competitive, more outsourcing • FM gains foothold and outsourcing becomes self-sustaining

7. The Origins and Definitions of Facilities Management All Facilities Management - Core and Non-core<Unit 1-9> • Distinction between core and non-core of a functions varies • Contemporary shift in emphasis from cost minimisation to value maximisation • FM phenomenon keeps changing → Need to consolidate and manage • Need to standardise and set proper performance measurement to grow. Facilities Management Futures?<Unit 1-10> • Stratify into various sub-elements that are not mutually inclusive? • From Jack of all trades to industry with professional streams • A more strategic dimension of FM

8. The Origins and Definitions of Facilities Management Definitions Of Facilities Management<Unit 1-11> Many have tried to define FM and results have been diverse Operation FM functions and activities exists long before the term is used. Library of Congress (1982) & Becker (1990) “The practice of co-ordinating the physical workplace with people and work of the organisation, integrating the principles of business administration, architecture and the behavioural and engineering sciences.” looks beyond the activities and services involved and focuses on the wider organisation. IFMA (via Butcher, 1992) “In 1982, the term facilities management had not been heard in this country (UK), and in the USA the International Facility Management Association had only just formed “

9. The Origins and Definitions of Facilities Management Becker (1985) “In 1985 a study of FM in England found a lack of integration among FM functions, a relative neglect of long range planning, and somewhat indifferent approaches to space planning. It concluded, in general, that buildings were an underused resource.” CFM (via Alexander, 1995) “The process by which an organisation delivers and sustains a quality working environment and delivers quality support services to meet the organisation’s objectives at best cost.” … and many other definitions … There are many other definition by various professional bodies, each re-defining FM in order to reflect their own interests in the field. This leads to a lack of uniform definition.

10. The Origins and Definitions of Facilities Management

11. The Origins and Definitions of Facilities Management USA’s 2 Distinct Sub-division of FM Strategic facilities management Concerned with the management of all aspects of the business support function, and which integrates FM vertically with the primary business strategy role Operational facilities management Concerned with the detailed operational activities. This is a horizontal role contained within the secondary business process domain. Sometimes the same individual can perform both roles.

12. The Origins and Definitions of Facilities ManagementDefinitions of Related Terms

13. The Origins and Definitions of Facilities Management Becker’s 5 Stimulating the Growth of FM (1990) Global Competition Information Technology Employee Expectations FACILTIY MANAGEMENT Cost of Mistakes High Cost of Space

14. The Origins and Definitions of Facilities Management The Relationship Between Business Environment And Facilities Management Definitions What to do when there is business downturn? 1.Pressure to look into savings 2.Business effectiveness and 3.Business re-engineering How?Answer - Focus on processes -        Process Re-Engineering, -         Process Modelling and risk and value management -         Process Management. and change management

15. The Origins and Definitions of Facilities Management Emphasis on Quality “if you can’t measure it you can’t manage it”. Measurement of Quality – Benchmark by quantification of performance of business activities Core activities Vs Non-Core Activities - Outsource Non-core (or Secondary) activities

16. The Origins and Definitions of Facilities Management SUMMARY

17. The Origins and Definitions of Facilities Management A Summary Of The Growth Of Facilities Management<Unit 1-23> ·A Turbulent Evolution For FM, Characterised By Crossed Continents Wave Effect ·National And International Distinctions In Defining And Practising FM ·Chronic Problems With Agreeing A Definition ·Similarly With The Professional Scope Of FM (Especially The Managerial Role) ·“Facilities Management” Existed In A Dispersed Form Long Before It Became A Recognised Term ·In The UK, Arguments Occurred Between The Professional Institutes Representing Facilities Managers And (Mostly) The Existing Construction Industry Professions ·Initial Arguments Were Over The Professional ·  After FM Became Recognised, The Emphasis Of The Institutions Turned To Ownership And Shaping Of Fm In Their Own Image ·Divisions Continued To Appear Within, And Between, The Professional Institutions

18. The Origins and Definitions of Facilities Management A Summary Of The Growth Of Facilities Management<Unit 1-23> ·A Range Of Professional Institutions All Claimed To Represent FM ·Overall Confusion Within The Profession Which Allowed Rapid Growth But Left A Legacy (1999) Of Lack Of Clear Definitions And Working Practices. These Issues Are Now Being Addressed. Client And Industry Awareness Of Strategic Scope Remains Minimal. ·In The Us, The IFMA Grew From The FMA, Hence The FMA And The IFMA Originated From A Facility Emphasis, But Defined By Business Managers Needs ·In 1984 A Steering Committee Meeting Of The IFMA Led To The Formation Of The AFMA ·AFM And Institute Of Administrative Management Combined In 1980s To Form The IFM.

19. The Origins and Definitions of Facilities Management Facilities Management: A Summarised History Of Definitions<Unit 1-23> ü  Butcher (1992), “In 1982, the term facilities management had not been heard in this country (UK) and in the USA, the International Facility Management Association had only just formed”. ü  Becker (1990), “Convincing top management that the way in which a building is planned, designed, and managed affects the organisation’s ability to achieve its business objectives has not been easy… the principal reason is that for organisations to benefit from their enormous investment in facilities they have to begin managing them actively and creatively, with commitment and a broad vision. They have had to link facility planning and management to … social and organisational trends”. ü  American Library of Congress (1982), “The practice of co-ordinating the physical workplace with people and work of the organisation integrating the principles of business administration, architecture and the behavioural and engineering sciences.”

20. The Origins and Definitions of Facilities Management Facilities Management: A Summarised History Of Definitions<Unit 1-23> ü  AFM, “The practice of co-ordinating the physical workplace with the people and work of an organisation.” ü Becker (1990), “FM is responsible for co-ordinating all efforts relating to planning, designing and managing buildings and their systems, equipment and furniture to enhance the organisations ability to compete in a rapidly changing world.” ü  Alexander (1991), “external management of all company services that are not specific to the core business, including building management, data management, catering, security, distribution, reprography and printing.” ü  Centre for facilities management (CFM) 1995, “The process by which an organisation delivers and sustains a quality working environment and delivers quality support services to meet the organisation’s objectives at best cost.”

21. The Origins and Definitions of Facilities Management Facilities Management: A Summarised History Of Definitions<Unit 1-23> ü BIFM, “The integration of multi-disciplinary activities with the built environment and the management of their impact upon the people and the workplace.” ü  RICS, 1998: “FM involves the total management of all services that support the core business of an organisation.” ü  CIOB, “Facilities management is a comprehensive approach to the provision and management of buildings and their environments, facilities and processes, which enables the optimum efficiency and well-being of a company, and its staff, to be achieved.”

22. The Origins and Definitions of Facilities Management Facilities Management: A Summarised History Of Definitions<Unit 1-23> ü Becker (again), “FM is not in the business of such things as wire management, space planning, furniture selection, building maintenance, or lease negotiation per se … These are the proverbial tip of the iceberg. The goal is organisational effectiveness: helping the organisation allocate its physical resources in a way that allows it to flourish in competitive and dynamic markets.” ü  The National Audit Office, “The facilities manager must have an in-depth understanding of the core business and the non-core activities that support it so that these can be procured in a way that achieves the best value for money.” ü Akhalaghi (1993), “Inseparable and essential functions which are required to ensure successful execution of the organisation’s core activity.”

23. The Origins and Definitions of Facilities Management Facilities Management: A Summarised History Of Definitions<Unit 1-23> ü Barrett, “An integrated approach to maintaining, improving and adapting the buildings of an organisation in order to create an environment that strongly supports the primary objectives of that organisation.” ü Construct IT, “For facilities management to be effective, both the hard issues, for example plant maintenance, and the soft issues, for example managing people, have to be considered.”

24. The Origins and Definitions of Facilities Management Facilities management: the summarised relationship between environment and response<Unit 1-25> vBy focusing on process, it occurred to some company strategists that the primary business function was critically dependent upon the secondary business function vA fashion for process integration created new FM opportunities, but were only taken up in those companies which were the least conservative and were prepared to plan and manage their facilities vIn the USA, there was some recognition of the business criticality of secondary business functions, also referred to as business support processes vA parallel drive for quality assessment and business process re-engineering

25. The Origins and Definitions of Facilities Management Facilities management: the summarised relationship between environment and response<Unit 1-25> vPrimary and secondary processes came under review together vFor many, outsourcing appeared to be an efficiency-led solution for the secondary functions vSome businesses recognised the link between primary and secondary functionality

26. The Origins and Definitions of Facilities Management Summary of the distinctions between strategic and operational facilities management<Unit 1-25> ü   In the USA, there was a recognition that the business support processes need to interface vertically with the strategic management of the primary business processes ü   A two-directional link exists between primary and secondary functions ü In the USA, FM evolved as a horizontal management activity, and a strategic vertical management role üStrategic FM is concerned with the management of all aspects of the business support function, and which integrates FM vertically with the primary business strategy role. Operational facilities managementis concerned with the detailed operational activities required to keep the business functioning. This is a horizontal role contained within the secondary business process domain ü  Sometimes the same individual can perform both roles

27. REVIEW QUESTIONS

28. In-text question 1.1 Before starting this unit (and module) write down your definition of FM. What are the major activities carried out under the heading of FM? What professions do you think are involved in FM? In-text question 1.2 Identify any ways in which FM could provide companies with direct competitive advantage. In-text question 1.3 Consider the global region that you work in. How does FM in that region differ from FM in any other regions that you are aware of? Are these distinctions related to what the predominant activity is within FM, for whom it is done, or how it is organised? In-text question 1.4 Before going any further, comment on whether your definition of FM is based upon what FM does, how it does it, or what difference it makes. If you want to alter or expand your initial definition of FM do so now. State any assumptions you have made.

29. In-text question 1.5 Generic and context-specific facilities management activities List all the activities that you consider to be possibly non-core to business. Put an asterisk against any of the activities that may be non-core in some sectors and core in others. Use a highlighter to identify the activities that remain without an asterisk – comment below on how this residual list corresponds to your definition of what the core of FM is. What can you conclude from this exercise? In-text question 1.6 Consider the sector(s) you work in or have most experience of. How has the nature of the sector shaped the form of FM provision? Are there any obvious differences compared with FM generally? What are the major effects this has had on the localised, sector-specific definition of FM and the way of working? Has this shape of FM altered the nature or way of working of the client business at all? If so, how, and does it confer competitive advantage? Is the FM in this sector predominantly in-house, outsourced, or mixed? How much is this shape of FM client-driven? Can you draw any general conclusions about FM from this?

30. In-text question 1.7 Look back over the unit so far and identify the main steps that FM has made, adding any others that you think have been, are, or could be relevant to the shaping of FM. Is the essence of FM in some way gained from its adaptability? How? In-text question 1.8 In what sense is FM truly non-core? In what ways does FM have the capacity to affect the core business? Does this hold for FM in all business sectors? What about where the FM service is in-house rather than outsourced? Reconsider your definition of FM. If necessary, write your revised definition now. Can you draw any general conclusions about FM from this? In-text question 1.9 Congratulations - you have been elected chairman of IFMA! Based on the issues raised so far, outline the first three things you would do to secure the future of FM (seriously, please!) In-text question 1.10 This activity is based upon your experience of the client view of FM. Start by summarising the main client views on FM that you are aware of. Analyse the strengths, weaknesses, opportunities, and threats (SWOT) to FM within these views. Given the opportunity to make one change globally to FM to improve the match between client view and FM view, what would it be and why?

31. In-text question 1.12 Using the reader by Becker as a basis, consider whether the five factors that Becker identified as determining the growth of FM up to 1990, still apply. That is: Information technology (its proliferation; its impingement on the visible office; and its role in planning and managing buildings); Global competition (the enlargement of the marketplace) ; High cost of space; Rising employee expectations, and the costs of mistakes. Are there any other factors now? Are there any other foreseeable factors? How have any changes that you have identified altered the face of FM – strategically or operationally? In-text question 1.13: Comparing UK and USA facilities management roles Compare the USA and UK views on the general FM functions, using the common functions of facility management identified by Becker (1990): Management of the organisation: Facility planning and forecasting Lease administration, Space planning, allocation, and management Architectural/engineering planning and design, Workplace planning, allocation, and management Budgeting, accounting, and economic justification Real estate acquisition and disposal, Construction project management Alteration, renovation and workplace installation, Operations, maintenance and repair, Telecommunications, data communications, wire and network management Security and life-safety management, General administrative services

32. In-text question 1.14 What are primary and secondary business functions? To which does FM have a direct and indirect link? Does this change your definition of FM and/or your list of professional skills needed to satisfy the role? In-text question 1.15 Critique your definition of FM against the BIFM core competencies: How do they compare, both managerially and operationally? In-text question 1.16 Is FM novel? Do you think FM is a new profession, a new professional role, and/or a new professional title? In-text question 1.17: Drawing analogies between facilities management and information technology (IT) Becker (1990) approaches the emergence of

33. 1.12 Consolidation exercises 1.12.1 Discuss the difficulties in defining facilities management. 1.12.2 Is there a single definition that is best for the UK FM client base and the UK construction industry? If so, what is it, or alternatively what is the best compromise? Why? 1.12.3 Your company is considering setting up a FM role, but there are some differences in opinion over what the role of FM should be in the company. Discuss the various views that might predominate, based on a company profile of your choice. What is your preference and why? 1.12.4 Compare and contrast the USA and UK views on FM and give three possible reasons for the differences. Discuss the practical significance of the differences.

34. END