Facilities Management in Hong Kong Past, Present & Future Presentation to The Hong Kong Institute of Facilities Man

1. Facilities Management in Hong Kong Past, Present & Future Presentation to The Hong Kong Institute of Facilities Management September 23rd, 2000 Philip Lo Planex Ltd.

2. Background • Architectural background • From design to management • Facilities Management through Technology • Established HK practice - June 92 • Established HK IFMA Chapter - November 92

3. History US Perspective The Beginning: Late 1970’s Prior to 70’s non professional 70’s Changing Business Climate: the emergence of the white collar workers, the advent of the computer technology the turning point of Industrial Society to Information Age, i.e., manual work to computerised work; new tools, new skills, new space requirements Formation of FMI(Facility Management Institute) founded by Herman Miller, Inc. in 1979, new approach in managing the work process and workplace, paving the way for the establishment of IFMA.

4. History US Perspective FM Growth in the 80’s 1980 First FM degree program, Cornell University Formation of the National Facility Management Association (NFMA) 1982 First FM magazine: Facilities Design & Management NFMA name changed to International Facility Management Association (IFMA) First Facilities Day at NeoCon, Chicago. 1989 MIT founded the International Society of Facilities Executives (ISFE) BOMI Institute offered the first professional designation for facility managers: the Facility Management Administrator (FMA)

5. History US Perspective Depressing 80’s lead to Booming 90’s • Reengineering • Waves of global corporate downsizing, • Dramatic changes in corporate culture & environment, • Outsourcing • Advancement of information Technologies phenomenon

6. History UK Perspective The Beginning: Late 1970’s Prior to 70’s non professional 70’s Changing Business Focus: Focused on Maintenance & Repair of Buildings Promoted by Building Surveying Profession 80’s Formation of BIFM(British Institute of Facilities Management) Impact of Technology and changing economy

7. History UK Perspective The Changes: Late 1980’s to Now 80’s Depression focus on cost reduction downsizing and more efficiencies 1989 Management buy out of Facilities Department of IBM Formation of Procord , later acquired by Johnson Controls Formation of Johnson Controls IFM 90’s Proliferation of Outsourcing Contracts and Service Providers Present PFI -Private Financial Initiatives - Mega projects for long term management contracts

8. Workplace, Space & Asset Management US Estates Management HK Properties Management UK Operations + Maintenance Management FMin Hong Kong

9. History HK Perspective A Brief History - pre 1997 • Non profession in 1980’s • Formation of IFMA in Hong Kong in November 1992 • Early adoption by Universities & Hospitals & Multi-Nationals • City University - change dept. name to FMO • 1995 Establishment of Graduate Degree programme at Polytechnic University • 1997 - Asian Economic Downturn

10. History HK Perspective A Brief History - post 97 • Downsizing, cost reduction, out-tasking outsourcing • Dramatic changes in economic climate & business environment • Outsourcing by private, then public organizations p • Property Management Firms embrace FM • Establishment of Undergraduate Degree programme by City University • Formation of HKIFM

11. Property Management? Maintenance Management? Estates Management? Same old Wine in New Bottles? So what is it? Facility Management?

12. Facilities Management is the practice of coordination the physical workPlace with the People and the Process of the organization. It integrates principles of business administration, architecture and the behavioural and engineering sciences. PROCESS PLACE PEOPLE Definition Facility Management

13. FM Financial Forecasting and Management Security, Telecommunications and Administrative Services Corporate Real Estate Facility Management Long-range and Annual Planning Interior Space Planning and Space Management Architecture and Engineering Maintenance and Operations New Construction and Renovation The Model

14. The Primary FM Competency Areas(As Defined for the CFM Program) Operations & Maintenance Real Estate Communication TheEightCompetencyAreas ofFM Quality Assessment &Management Human & EnvironmentalFactors Finance Planning & ProjectManagement Facility Function

15. Plans & Controls Planning Expenses Capital Assets Measurements Space Management Space Standards Space Allocation Space Inventory Space Forecasting Space Utilisation Moves & Installation Operations & Maintenance Preventive Maintenance Security Indoor Air Quality (IAQ) Landscaping Energy Conservation Housekeeping Waste Management Energy Management Emergency Operations Executive Services Scope Facility Management • Real Estate • Acquisition • Disposition • Site Selection • Leasing & Contracts • A&E Services • Engineering • Architecture • Interior Design • Furniture Design • Construction Mgmt • Project Management

16. Outsourcing 2001 US$318B Logistics Properties / Real Estate Information Technology Administration Human Resources Customer Services, Finance Marketing & Sales, Transportation 1996 US$100B Source: The Outsourcing Institute

17. Outsourcing In Hong Kong • Bank of America • Chase Manhattan Bank • CWHKT • Cathay Pacific • HSBC • HACTL • Housing Authority How satisfied are you? What is important to you? What can be improved? How to improve?

18. FM Customer Satisfaction • Exterior Maintenance • Interior Maintenance • Building Maintenance • Building Services • Workplace Design • Indoor Air Quality • Elevators How satisfied are you? What is important to you? What can be improved? How to improve?

19. Th Future of Facilities Management

20. Future Facility Management FM 2000 & Beyond • Core Business Oriented • Competency Based • Customer Driven • Quality Driven • Technology Driven • Networked Structure • Outsourced • Strategic Partnership • Strategic (Financial) • Boardroom Level / Professionalism

21. PROCESS PLACE PEOPLE Future of Facility Mgmt New Org Structure New Economy Outsourcing Cool Living Gen Y workforce de-Aging of CEOs Smart Building Smart Space Smart Tech

22. Impact of IT on FM • FM becomes Information Management • Accessible by all, anywhere,anytime,anything

23. Internet enables Facilities ManagementInformation available anytime, anywhere, about anything

24. The Next Generation ofFM Professionals • Competency in multi facets - technical skills, financial skills, communication skills, • Strategic vs. Operational • Proactive vs.Reactive • Global vs. Local • Quality and Customer driven • Must embrace and utilise technology • Cannot resist change

25. Evolution of FM • 2000 & beyond • Are • you • ready?

26. Trends & Challenges • Internal: • Outsourcing is Business as Usual • Downsizing continues • Efficiency and Productivity • Value-based services • Asset Performance • External: • Mergers & Acquisitions • De-Regulations • Compliance Issues • Environmental Issues • Technology: web-based

27. What Does This Mean to Your Profession?