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Redefining the Executive View
of Facility Management (FM)
In partnership with
An IFMA white paper by Richard Kadzis
© 2015 International Facility Management Association
Many factors influence executive perceptions of FM
2
Economic
growth
Relation to end
product or service
Branding
Asset age
Risk reduction
Cost
containment
Co-working
Employee
experience
Technology
Fundamentals of the FM/C-Suite relationship
Order-taking function Support role Cost center Non-strategic
Executives have historically perceived FM as…
3
As a result, many facility managers have become…
Isolated from the C-Suite Out-of-sync with the core
business strategy
Unable to advance their role
as strategic partners
Changing the C-Suite conversation: Value creation
“We’re seeing C-level executives realize that real estate, facilities and
portfolio management holds a key to unlock business value. We’ve
never seen anything like the change that is occurring in our industry.”
-Maureen Ehrenberg, Executive Managing Director and Global Board Chair, IFM, JLL
4
Key shifts support strategic FM partnership with the business
These emerging business needs provide an opportunity for facility
managers to align the FM function with the core business.
New methods of measuring performance – beyond cost savings – offer
tools for facility managers to prove their strategic value as partners with the
business.
5
Are employee-centric Drive worker productivity
Adapt to new work-life
support models
Reinforce the corporate
brand
Businesses today want facilities that…
What can facility managers do to improve executive perceptions?
Establishing a foundation of operational excellence – across processes,
people and strategy – is the first step in the process.
Process People Strategy
Establish sound business
controls, across:
• Operating procedures
• Compliance and standards
• Vendor management
Consistently meet or exceed
performance expectations
• Metrics as proof
Quantify cost savings across
operations
Cultivate strong relationships:
• Business leaders
• Building occupiers
• Employees
Attract and retain talent with:
• Subject matter expertise
• Business acumen
• Leadership skills
Foster an environment driven by:
• Customer service
• Solutions-based approach
• Collaboration
Build knowledge and
understanding, across:
• CRE portfolio and strategy
• Market perceptions of portfolio
• Core business strategy
Adopt a strategic approach to FM
through:
• Simplify and improve mindset
• Process to measure and report
upon FM business impact
• Innovation
6
What can facility managers do to improve executive perceptions?
7
Outsource FM to a dedicated service partner, to leverage…
Cutting-edge FM technologiesFM-specific talent pools
Service provider core
competencies
What can facility managers do to improve executive perceptions?
8
Cost savings
Enhanced customer
service
Real-time data and
analytics
Improved performance
metrics
Implement innovative
technology solutions, to
deliver…
What can facility managers do to improve executive perceptions?
Master soft skills to facilitate productive interactions with executives,
including…
InnovationCollaborationCommunicationEffective relationship
management
9
Embrace the shift to strategic FM partner (or risk irrelevance)
Business leaders need strategic FM partners that can contribute to
their enterprise’s productivity and profitability. Facility managers that
are able to deliver both operational excellence and strategic value will
become an integral part of the organization’s team for planning and
execution. Facility managers that do not embrace this new strategic role
and build their skill set risk being left behind. The time for action is now.
To read the full paper, please click here.
10

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Redefining the executive view of facility management (FM)

  • 1. Redefining the Executive View of Facility Management (FM) In partnership with An IFMA white paper by Richard Kadzis © 2015 International Facility Management Association
  • 2. Many factors influence executive perceptions of FM 2 Economic growth Relation to end product or service Branding Asset age Risk reduction Cost containment Co-working Employee experience Technology
  • 3. Fundamentals of the FM/C-Suite relationship Order-taking function Support role Cost center Non-strategic Executives have historically perceived FM as… 3 As a result, many facility managers have become… Isolated from the C-Suite Out-of-sync with the core business strategy Unable to advance their role as strategic partners
  • 4. Changing the C-Suite conversation: Value creation “We’re seeing C-level executives realize that real estate, facilities and portfolio management holds a key to unlock business value. We’ve never seen anything like the change that is occurring in our industry.” -Maureen Ehrenberg, Executive Managing Director and Global Board Chair, IFM, JLL 4
  • 5. Key shifts support strategic FM partnership with the business These emerging business needs provide an opportunity for facility managers to align the FM function with the core business. New methods of measuring performance – beyond cost savings – offer tools for facility managers to prove their strategic value as partners with the business. 5 Are employee-centric Drive worker productivity Adapt to new work-life support models Reinforce the corporate brand Businesses today want facilities that…
  • 6. What can facility managers do to improve executive perceptions? Establishing a foundation of operational excellence – across processes, people and strategy – is the first step in the process. Process People Strategy Establish sound business controls, across: • Operating procedures • Compliance and standards • Vendor management Consistently meet or exceed performance expectations • Metrics as proof Quantify cost savings across operations Cultivate strong relationships: • Business leaders • Building occupiers • Employees Attract and retain talent with: • Subject matter expertise • Business acumen • Leadership skills Foster an environment driven by: • Customer service • Solutions-based approach • Collaboration Build knowledge and understanding, across: • CRE portfolio and strategy • Market perceptions of portfolio • Core business strategy Adopt a strategic approach to FM through: • Simplify and improve mindset • Process to measure and report upon FM business impact • Innovation 6
  • 7. What can facility managers do to improve executive perceptions? 7 Outsource FM to a dedicated service partner, to leverage… Cutting-edge FM technologiesFM-specific talent pools Service provider core competencies
  • 8. What can facility managers do to improve executive perceptions? 8 Cost savings Enhanced customer service Real-time data and analytics Improved performance metrics Implement innovative technology solutions, to deliver…
  • 9. What can facility managers do to improve executive perceptions? Master soft skills to facilitate productive interactions with executives, including… InnovationCollaborationCommunicationEffective relationship management 9
  • 10. Embrace the shift to strategic FM partner (or risk irrelevance) Business leaders need strategic FM partners that can contribute to their enterprise’s productivity and profitability. Facility managers that are able to deliver both operational excellence and strategic value will become an integral part of the organization’s team for planning and execution. Facility managers that do not embrace this new strategic role and build their skill set risk being left behind. The time for action is now. To read the full paper, please click here. 10