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

3. 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. History US Perspective The Beginning: Late 1970’s

4. 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 forfacility managers: the Facility Management Administrator(FMA) FM Growth in the 80’s History US Perspective

5. Depressing 80’s lead to Booming 90’s sReengineering sWaves of global corporate downsizing, sDramatic changes in corporate culture & environment, sOutsourcing sAdvancement of information Technologies phenomenon History US Perspective

6. 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 History UK Perspective The Beginning: Late 1970’s

7. 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 History UK Perspective The Changes: Late 1980’s to Now

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

9. A Brief History - pre 1997 sNon profession in 1980’s sFormation of IFMA in Hong Kong in November 1992 sEarly adoption by Universities & Hospitals & Multi-Nationals sCity University - change dept. name to FMO s1995 Establishment of Graduate Degree programme at Polytechnic University s1997 - Asian Economic Downturn History HK Perspective

10. A Brief History - post 97 sDownsizing, cost reduction, out-tasking outsourcing sDramatic changes in economic climate & business environment sOutsourcing by private, then public organizations p sProperty Management Firms embrace FM sEstablishment of Undergraduate Degree programme by City University sFormation of HKIFM History HK Perspective

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

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

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

14. The Primary FM Competency Areas (As Defined for the CFM Program) Human & Environmental Factors Real Estate Planning & Project Management Facility Function Finance Quality Assessment & Management Communication Operations & Maintenance The Eight Competency Areas of FM

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 Real Estate Acquisition Disposition Site Selection Leasing & Contracts A&E Services Engineering Architecture Interior Design Furniture Design Construction Mgmt Project Management Scope Facility Management

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

17. 4Bank of America 4Chase Manhattan Bank 4CWHKT 4Cathay Pacific 4HSBC 4HACTL 4Housing Authority How satisfied are you? What is important to you? What can be improved? How to improve? Outsourcing In Hong Kong

18. 4Exterior Maintenance 4Interior Maintenance 4Building Maintenance 4Building Services 4Workplace Design 4Indoor Air Quality 4Elevators How satisfied are you? What is important to you? What can be improved? How to improve? FM Customer Satisfaction

19. Th Future of Facilities Management

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

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

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

23. Internet enables Facilities Management Information available anytime, anywhere, about anything

24. The Next Generation of FM 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?