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,