Danny Shiem-shin Then, Hong Kong Polytechnic University, China Rogerio Santovito, University of Sao Paulo, Brazil Per 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 FM Resources Facility Solutions FM Services European Real Estate Society 3- 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 )

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 ALIGNMENT OF FM WITH BUSINESS OBJECTIVES AND STRATEGIES 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 FM Resources Supply & Demand Alignment Organisational Alignment FM Resources Alignment FM Service Alignment Business Strategy Mission / Vision / Values Business Domain Supporting business delivery Matching supply to demand Understanding business needs Continuous improvement CAPABILITYCAPACITY STRATEGYCULTURE (Then & Tan, 2010)

FM Alignment with Business Needs FM Resources Facility Solutions FM Services © Then & Tan, March 2010 Alignment Model - Components Business strategies Business demand Facilities demand Facilities strategy FM strategies FM processes FM practices Existing facilities New facilities Owned, Lease, PPP, etc. People Budget Systems Information

Alignment Model – Alignment Variables

FM Alignment with Business Supply & Demand Alignment Organisational Alignment FM Resources Alignment FM Service Alignment Business Needs FM Resources Facility Solutions FM Services © Then & Tan, March 2010 Alignment Model – Alignment Variables

FM Alignment with Business Needs FM Resources 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 FM Services FM Resources Service strategies Service demand Facilities demand Facilities strategy Existing facilities New facilities Owned, Leased, PPP, etc. People Budgets Systems Information FM strategies FM processes FM practices Business - FM Alignment Model Supply & Demand Alignment Organisational Alignment FM Resources Alignment FM Service Alignment Business Domain FM Domain Business Enterprise Mission/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 months

Survey Sample Attributes

Mean Scores of Alignment Variables and Criteria FM Alignment with Business Needs FM Resources 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 questionnaire survey or direct contact. ( N=98 ) Mean Score Likert Scale: 1 (low) to 5 (high)

Mean Scores of Alignment Variables and Criteria By Regions

Mean Scores of Alignment Variables and Criteria By Regions

Validation of FM Alignment Model FM Alignment with Business Supply & Demand Alignment Organisational Alignment FM Resources Alignment FM Service Alignment Business Needs FM Resources Facility Solutions FM Services Validity Score (1 - 5)  Relevance 4.31  Completeness 4.05  Robustness 3.95  Conceptually Sound 3.96 Overall Average = 4.07 Value Score (1 - 5)  Importance 4.11  Usefulness 4.12  Application 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 FM Resources Facility Solutions FM Services Questions and Comments? European Real Estate Society 3- 7 July 2013, Vienna, Austria Danny Shiem-shin Then, Hong Kong Polytechnic University, China Rogerio Santovito, University of Sao Paulo, Brazil Per Anker Jensen,