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Transcript of Danny Shiem-shin Then, Hong Kong Polytechnic University, China Rogerio Santovito, University of Sao...
Danny Shiem-shin Then, Hong Kong Polytechnic University, ChinaRogerio Santovito, University of Sao Paulo, BrazilPer Anker Jensen,
Attributes of Alignment of Facilities Management to Business Needs – An international comparative analysis
FM Alignment
with Business
Supply & Demand Alignment
Organisational Alignment
FM Resources Alignment
FM Service Alignment
Business Needs
FMResources
Facility Solutions
FM Services
European Real Estate Society3- 7 July 2013, Vienna, Austria
Background Genesis from our work on asset
performance measurement (Balanced Scorecard approach)
Concept of business alignment – Kaplan & Norton book “Alignment”
Application of alignment concept to FM Development of FM – Business Alignment
framework
Alignment Concept in Business and its application to FM
( ISBN 1-59139-690-5)
Alignment in the Context of FM
Alignment in an active sense implies moving in the same direction, supporting a common purpose, being synchronized in timing and direction, being appropriate for the purpose and in a passive sense the absence of conflict.
“Alignment creates synergies in an enterprise.”
(Kaplan & Norton, 2006)
Alignment in the Context of FM
In the context of our conceptual framework it can therefore be argued that the synergies achieved through the alignment of the relevant parameters create an FM function that is optimally synchronized with the needs of the enterprise – it is neither more nor less than what is precisely required to support the business enterprise.
(Then & Tan, 2010)
Facilities solutions are planned and delivered according to facilities strategies.
Facilities strategies
Facilities solutions
FM services portfolio
FM resources and functional organization
Facilities strategies are derived from business objectives and strategies
FM services meet the needs of the facilities solutions efficiently and effectively
FM resources are adequate and organized appropriately to deliver the required FM services
AL
IGN
ME
NT
OF
FM
W
ITH
BU
SIN
ES
S
OB
JEC
TIV
ES
AN
D S
TR
AT
EG
IES
Nature of business determines need for facilities and business strategies drive facilities strategies
Business objectives &
strategies
Alignment of FM to Business
(Then & Tan, 2010)
FM Domain
Business - FM Alignment Model
Business-FM Alignment
Model
Business-FM Alignment
Model
Business Needs
Facility Solutions
FM Services
FMResources
Supply & Demand
AlignmentOrganisatio
nal
Alignment
FM Resources
Alignment FM Serv
ice
Alignment
Business StrategyMission / Vision / Values
Business Domain
Supporting business delivery
Matching supply to demand
Understanding business needs
Continuous improvement
CAPABILITY CAPACITY
STRATEGYCULTURE
(Then & Tan, 2010)
FM Alignment
with Business
Business Needs
FMResources
Facility Solutions
FM Services
© Then & Tan, March 2010
Alignment Model - Components
Business strategiesBusiness demandFacilities demandFacilities strategy
FM strategiesFM processesFM practices
Existing facilitiesNew facilities
Owned, Lease,PPP, etc.
People Budget
SystemsInformation
RELATIONSHIP BETWEEN
ALIGNMENT VARIABLE
DESCRIPTION OF ALIGNMENT VARIABLE
Business Needs and Facilities Solutions
Supply and Demand Alignment
The alignment of Facilities Solutions (new and existing facilities) with Business Needs (space, operational functions, revenue etc.)
Facilities Solutions and FM Services
FM Service Alignment
Alignment of FM Services (service levels, processes and practices) with facility type and operational requirements of the Facilities Solutions
FM Services and FM Resources
FM Resource Alignment
Alignment of FM Resources (people, systems, budget) with that required to deliver the FM Services
FM Resources and Business Needs
FM Organizational Alignment
Alignment or fit of FM Resources within the business organization with Business Needs (policy, organization structure, culture etc.)
Alignment Model – Alignment
Variables
FM Alignment
with Business
Supply & Demand Alignment
Organisational Alignment
FM Resources Alignment
FM Service Alignment
Business Needs
FMResources
Facility Solutions
FM Services
© Then & Tan, March 2010
Alignment Model – Alignment
Variables
FM Alignment
with Business
Business Needs
FMResources
Facility Solutions
FM Services
Then & Tan , March 2010
Supply & Demand Alignment • Capacity
• Condition• Service Potential• Risks• Financial• Social
FM Service Alignment • FM Service Strategies
• FM Service Levels• FM Service Standards• FM Service Cost
FM Resource Alignment• Resource Capacity• Resource Suitability• Resource Organisation• Resource Cost
Organisational Alignment • Business Governance
• Procurement Strategy• Business Policy• Organisational Culture
Alignment Model – Alignment Criteria
Alignment criteria identified through literature review and experts’ focus group
Business- FM Alignment
Business Need
Facility Solutions
FMServices
FMResources
Service strategiesService demand
Facilities demandFacilities strategy
Existing facilitiesNew facilities
Owned, Leased,PPP, etc.
People BudgetsSystems
Information
FM strategiesFM processesFM practices
Business - FM Alignment Model
Supply & Demand
AlignmentOrganisatio
nal
Alignment
FM Resources
AlignmentFM S
ervice
Alignment
Business Domain
FM Domain
Business EnterpriseMission/Vision/Values
Alignment Criteria FM service strategies FM service levels FM service standards FM service cost
Alignment Criteria Resource Capacity Resource Suitability Resource Organization Resource Cost
Alignment Criteria Capacity Condition Service potential Risks Financial Social
Alignment Criteria Business governance Procurement strategy Business policy Organizational culture
Experts’ Validation Survey
1. Evaluating the relevance and usefulness of the Alignment Criteria
2. Identifying any additional alignment criteria that might be useful
3. Evaluating the validity and value of the FM - Business Alignment Model
4. Identifying any weaknesses and gaps in the FM - Business Alignment Model
Survey Sample
1. Senior managers in corporate real estate (CRE) and facilities management (FM) responsible for a portfolio of buildings – both clients and service providers
2. Academic researchers in CRE and FM
3. Scope of survey - international
4. Respondents through known contacts and introductions
5. Over a period of 18 + 6 months
Survey Sample Attributes
Mean Scores of Alignment Variables and Criteria
FM Alignment
with Business
Business Needs
FMResources
Facility Solutions
FM Services
Supply & Demand Alignment (3.99)
Capacity (4.45) Condition (3.97) Service potential (3.94) Risks (3.97) Financial (4.07) Social (3.57)
Organisational Alignment (4.13)
Business governance (4.19)Procurement strategy (3.97)Business policy (4.26)Organizational culture (4.10)
FM Service Alignment (4.17)
FM service strategies (4.31)FM service levels (4.01)FM service standards (4.21)FM service cost (4.14)
FM Resource Alignment (4.12)
Resource Capacity (4.14)Resource Suitability (4.17)Resource Organization (4.05)Resource Cost (4.10)
Respondents – Senior RE/FM/Property professionals in USA, UK & Europe, Brazil, Asia through email questionnaire survey or direct contact.
( N=98 )Mean Score
Likert Scale: 1 (low) to 5 (high)
Mean Scores of Alignment Variables and CriteriaBy Regions
Mean Scores of Alignment Variables and CriteriaBy Regions
Validation of FM Alignment Model
FM Alignment
with Business
Supply & Demand Alignment
Organisational Alignment
FM Resources Alignment
FM Service Alignment
Business Needs
FMResources
Facility Solutions
FM Services
Validity Score (1 - 5)Relevance 4.31Completeness 4.05Robustness 3.95Conceptually Sound 3.96
Overall Average = 4.07
Value Score (1 - 5)Importance 4.11Usefulness 4.12Application 4.08
Overall Average = 4.11
( N=98 )Mean Score
Validation of FM Alignment Model
Current status of research
1. Further analysis by country/region; professional background, client vs service providers
2. Consider possible additional criteria suggested by respondents
3. Potential development of evaluation tool for assessing/measuring degree of alignment of FM to business.
Attributes of Alignment of Facilities Management to Business Needs – An international comparative analysis
FM Alignment
with Business
Supply & Demand Alignment
Organisational Alignment
FM Resources Alignment
FM Service Alignment
Business Needs
FMResources
Facility Solutions
FM Services
Questions and Comments?
European Real Estate Society3- 7 July 2013, Vienna, Austria
Danny Shiem-shin Then, Hong Kong Polytechnic University, ChinaRogerio Santovito, University of Sao Paulo, BrazilPer Anker Jensen,