FM & Beyond

Changing the Education Paradigm

2011-12-21T16:33:00.000-08:00

I'm a new fan of RSA Animate. If you haven't seen their stuff then start with this video. Compelling, insightful, thought provoking analysis of our broken education system - done in an entertaining and enjoyable fashion. Brilliant, I say!

Discovering Differences in Doha

2011-12-18T18:02:00.001-08:00

For the last week I have been in Doha, Qatar, a return visit from my first eight years ago. Boy, have things changed. What was largely a barren peninsula has been transformed into a vibrant, energetic, and beautiful gem by the sea. Then it was just a few isolated buildings surrounded by flat desert, now parts of Doha look like a new Manhattan. The contrasts between old and new, between wealth and working class are obvious but the people are uniformly friendly.

West Bay from the Corniche

The architecture in Doha is as varied as you might expect. As a metaphor for all societies in general, outward appearance is not the whole story and Doha is no different. Underneath the façade lies a rich and diverse culture that is much different than what I am used to, and in many ways very appealing. Not necessarily in all ways, however. I will take LA traffic and drivers any day. Just sayin.’

Islamic Museum of Art from Dhow Harbor along the Corniche

For those construction folks among you, concrete and CMU are the materials of choice here. I am not certain why these materials are the standard but suspect a strong combination of familiarity and availability. Observing multiple construction sites gives one appreciation for advanced technology and equipment. Looking at the finished product from the

outside and experiencing it from the inside of the buildings, however, one would never suspect or wonder what is underneath.

Dhow Harbor

Qatari’s are taking good advantage of a unique opportunity. The growth they are experiencing is multi-dimensional, not just in the built environment. The government is aggressively funding large infrastructure projects and leap frogging the country with the aid of private investment. Great attention is being paid to the development of institutions that will underpin and sustain the maturation of society on a broad scale. It is a country of great contrasts but also one of great promise, energy and enthusiasm.

Even the streetlights look like cranes

There is a lot going on here and it feels a bit like the Old West of American lore at times. Entrepreneurship is the driving force. If you’re looking for energy and opportunity it would be hard to find a better place to hitch your horse….or camel.

You can see my other Doha photos here.

How Can You Lead When You Don’t Agree With Your Leader?

2011-12-04T14:40:00.000-08:00

Leading can be messy business. It has its rewards but challenges are never in short supply it seems. Partly I think leading is complicated because it is relationship based and relationships are always in flux. It is easy when the person you look to for leadership is aligned perfectly with you and the same is true of your relationship with those you lead. But that doesn’t happen very often. In a large sense, successful leadership is defined in our ability to be effective in spite of these mis-alignments. Yes, one of a leader’s most important functions is to improve alignment, but when alignment is a goal and not the reality a leader and those he or she leads must still be effective.

Understanding the other person’s perspective is a key for me when I am in this misaligned state. To understand I must listen, pay attention, synthesize, evaluate and reach conclusions on why the other person has the perspective they do, its validity and importantly its motivation.

An interesting thing happens here. I cannot understand without information. In order to get the information I need to ask open questions and listen honestly. I must probe to find out what the other leader believes, why he or she believes it, what experiences or data has led them in this particular direction, and I must be willing to accept that they may be correct. I must engage our relationship in open dialogue which in turn engenders mutual respect, transparency, and trust. In the end I may not necessarily agree with their conclusions or they with mine, but if I can understand their process and reasoning I can make an informed decision to support them anyway or continue the dialogue to press my perspective.

It’s that relationship thing again. By nurturing it through rough spots I help strengthen it. By abandoning the effort I weaken it. By leaving it I lose my voice.

This is not an unimportant point. People sometimes flee positions because of misalignment conflict, robbing themselves of an opportunity to contribute and mature. These are conditions that will be repeated often throughout a career. Fleeing such a situation now does nothing to prepare you for the next.

The value of visible conflict resolution should not be underestimated in its effect on others. When these types of leadership conflicts exist in organizations it makes people nervous. There will probably those who are aligned with each side for a variety of reasons, but everyone will know that the leadership tension exists, and that will make people nervous. Some may even begin postulating negative repercussions of the conflict and then begin to act on those concerns, creating another set of issues that must be overcome. But, just as everyone will know there is a conflict among leadership they will also know how it is being processed. They will see when you are honestly looking for ways to make it work, and that fact alone will build their trust in your leadership. Why? Because they will see that you take it seriously, are willing to listen and learn, and that you conduct yourself respectfully – all traits that people value in leaders.

Asking yourself what you need to learn about a particular conflict is possibly the most important step when beginning to face a conflict in leadership. This internal question sets the tone for how you will engage the other leader. Often you will find that the most important things you have to learn are about yourself. What is this situation trying to teach me? What deficiencies do I have in dealing with this situation and how can I improve them? How can I approach the other leader in a way that encourages transparency? What is my responsibility to those I lead and the larger organization in this circumstance? What is really at stake here? All of these are important questions to ask as you begin to seek information that will contribute to resolution.

Leading really is a relationship thing. Paying attention to your relationship with other leaders should be a purposed and principled behavior. Expecting that you will be in perfect alignment with them at all times is not reasonable. Seeking to fairly understand, communicating and leading effectively as you work to resolve misalignment issues is absolutely expected of you – by those you lead, other leaders, and I hope by you.

Why Philosophy in Prison Matters

2011-12-02T08:22:00.000-08:00

Can you be wrong about "Wrong?" Listen as Damon Horowitz describes an unlikely encounter in an unlikely place. Inspiring and challenging.

Improving Space Perfomance: Yet Another Cubicle Farm Bites the Dust

2011-11-30T21:02:00.000-08:00

The design consulting firm DEWG helped pharma firm Lilly redesign a 470Ksf space housing 3,300 employees, converting it from a 20th century cubicle farm to a more flexible 21st century model, focusing more on work tasks and style and less on "turf ownership." We are seeing more of these transitions as organizations look to increase efficiency and productivity, including optimizing the real estate portfolio. The Lilly project offers compelling evidence that when done right these projects are true levers to organizational performance.

In this case, both employees and ROI numbers speak rather loudly. Thirty-seven percent of employees said that their satisfaction with office appearance improved and twenty-seven percent said it was more stimulating. Overall employee satisfaction with the workspace improved by thirty percent.

As impressive as that is, executives are likely more impressed with bottom line efficiency gains. GSF/employee was reduced from 212 square feet to 156 square feet, furniture cost was decreased $4,200 per capita, and the overall capital cost per employee was nearly halved.

The goal of Alternative Workplace Strategies (AWS) is to maximize real estate leverage while at the same time improving employee productivity and satisfaction, and contributing to recruiting and retention efforts. Lilly's project is not unique in its accomplishments, rather it is further evidence that AWS has long since moved past "growing trend" status to being a favored tool of those responsible for corporate real estate.

Prime Directives of Leadership

2011-11-29T06:59:00.000-08:00

If you have even a passing interest in the subject of leadership then your bookshelves are probably full of volumes on the subject. New books appear monthly, not to mention journal articles and other forms of publication. That is all well and good. I am not here to suggest that all the attention devoted to the topic of leadership is unwarranted or unhelpful.

I do suggest, however, that the prime directives of leadership - the very core things that it seeks to accomplish, are well known. There may be new concepts and techniques on how to successfully lead, but the key goals remain largely the same.

Leadership is personal. It is a matter of substance but style is important as well, sometimes fundamentally so. Since it is personal each leader must walk his or her own path. That makes a leader’s understanding of who they are, who they are engaged with, and the environment in which they lead a most critical function. In order to come to a point of clarity on these issues one must be thoughtful and intentional. Leadership doesn’t just happen.

At the end of this evaluation process you will have reached conclusions about the organization and people you lead, and yourself. What is it that makes you the right leader for this group at this time? How does your style support or hinder what you are trying to accomplish? Where does it need to be strengthened or changed? With the answers to these and other questions you will be prepared to think about how to set about accomplishing your own prime directives of leadership.

What are your leadership prime directives? Where have all those books you’ve read, the challenges, failures and successes you have experienced, your observations about the environment around you…where has all of that led you to in terms of your own Prime Directives of Leadership? Here are mine.

Leadership Directive 1: Lead with Integrity

Integrity is at the top of my list because I believe effective leadership without it is impossible. People must be able to trust those they follow or they will not do so willingly, enthusiastically, or when the going gets tough. To me, integrity is about that earned trust. Leading with integrity requires that you have a set of principles, goals and strategies which are transparent, worthy, and consistently applied. Leadership is not about smoke and mirrors. It is about honesty, directness, focus and attention to detail; all applied in a way that moves individuals and organizations forward.

Leadership Directive 2: Envision, Energize, Empower

Leaders must articulate a vision that will energize others towards a better future. The “vision thing” is so big that without it one is not a leader. The vision should challenge people and inspire them help create its reality. Leaders cannot accomplish big things alone, they must have the active and enthusiastic support of others. To gain that kind of engagement the leader’s vision must be released. People must feel they have permission to adopt it as their own, morph it where needed, and activate it through their own creativity and energy. One of a leader’s biggest accomplishments is the adoption of his or her vision by others. Instead of trying to control it, release it and watch what happens.

Leadership Directive 3: Recruit Intelligence, Curiosity, Energy

To use a sports analogy, I generally prefer to draft the best available talent instead of the best available position player. Only when a key specialty skill or knowledge is missing from the mix do I shift to a positional focus. Otherwise, I want the best and brightest, period. I want their intelligence to challenge me and to create breakthroughs, their curiosity to help discover new opportunities and solutions, and their energy to see it through and energize those around them. When you have a group like this; intelligent, curious and enthusiastic, work becomes fun, problems become stimulating, and success becomes all the more enjoyable.

Leadership Directive 4: Serve

If I have clearly articulated a sound and achievable vision, recruited the right team and gained their trust, then all of the requirements for success are in place. Now my most important function is to do everything I can to remove the obstacles to their success. As a leader I should be mentoring, coaching, teaching and challenging the team. I should also be anticipating and searching for the things that impede their progress and doing everything I can to eliminate them. By releasing the vision to others and then prioritizing my efforts towards their success I multiply myself many times over and increase the leverage I have on any particular problem.

Successful leadership is an intentional art. It projects the leader and the organization forward in a way that enables a better future. It is not accidental and requires a purposeful focus, and the ability to define oneself through the success of others. I’ve shared a few of my personal “Prime Directives of Leadership.” Do you know what yours are?

Roger McNamee on How to Save the Internet

2011-11-12T16:14:00.000-08:00

Interesting perspective on the technology future now coming into view. I love the "the Internet is like a digital Detroit. You can find stuff there and you can get mugged there" line, but I don't agree that we will be set free when our beliefs give way to facts, as he suggests near the end. That little detail aside, I think his six concepts are largely right on. The technology shifts already underway are fundamental and powerful in nature. TED scores another win with this one. And BTW.... who says 55+ 'ers can't keep up?

Procurement Diligence Pays Dividends - Part 2

2011-10-09T22:19:00.000-07:00

Requirements planning is a key first step. It is important to be forward leaning, anticipating organizational and key customer requirements ahead of initial requests. This proactive behavior is built upon two foundations; relationships that enable anecdotal and hard data information sharing as needs first begin to emerge (long before they are normally translated into a requirements request), and strategic alignment of the FM operation with enterprise goals and activities. Having the advantage of these two perspectives allows the FM leader to forecast properly and bring creative contributions to bear. Importantly, requirements planning improves the quality of investments made, thereby contributing to capital preservation which in turn improves leverage. Optimizing the requirement minimizes unproductive expenses and helps optimize the supply chain, both of which improve the overall value of any given requirement.

The specification process establishes criteria for successful outcomes. Whether you are looking for a new robotic manufacturing system, land for a new headquarters building, a new maintenance or service provider, or an improved contract for office supplies; the specification you approve establishes your expectation of what is acceptable. As such it warrants diligence and serious consideration. You may consider the specification to be the floor against which you will evaluate options, whereas providers may consider it the ceiling as well. This is an important distinction and demands clear articulation in the resulting specification. Further, the specification process should include in collaboration and consensus among the full range of stakeholders for any important product or service.

Market assessments inform acquisition strategies. Consider the assessment as your opportunity to understand the full breadth of requirement fulfillment options. A formal and standardized assessment will yield market forecasts for any product or service, including relative competitive alignment among providers, their strengths and weaknesses, and how well their offerings align with your needs. Do not under appreciate cultural alignment as a learning outcome of this effort, especially if the products or services you will procure from them are of strategic importance. It is often valuable for the internal team that has conducted the assessment to come together at the back end and share individual learnings and questions. What can we do different than we normally do? What is now possible that we didn’t realize when we started this process? These are important questions that should be answered and provide feedback to the requirements and specifications processes.

Investigation should include analysis of metrics that predict likelihood of instability. This type of investigation looks at performance quantification in areas that highlight unstable operations or high risk potential. Think of this as identifying and then quantifying Key Performance Indicators (KPI’s) for a provider’s overall business. If dealing with a commodities contract for example, one might evaluate the supplier’s performance against their production plan, the number of delayed shipments, the volume of product returns, how often the supplier must be expedited, and how accurate their marketing forecast is. This information will tell you how accurate their internal business processes are and where there may be hidden stress in their systems. If the contract you are considering is of high strategic importance to your own operations then these information points are especially important. These are not the kinds of questions FM’s normally ask in a sourcing exercise but they can be illuminating, revealing hidden risks that no marketing department or account representative is going to share.

FM’s spend a lot of money, one reason why the function was traditionally thought of primarily as an expense line item in the purest form. The profession has increased its sophistication and strategic visibility largely because it is now recognized as a valuable contributor to corporate direction and health. Attention to detail has always been a hallmark of the FM activity and that is not changing as the profession elevates its profile. It is, in fact, because we have been successful in marrying the boiler room with the board room that we have been able to achieve this. Both elements are critical in our evolution. The kind of diligence and rigor toward the purchasing activity so important to the FM and suggested here is the same diligence that drives our increasing recognition as a value add function.

Strategy and goals are one thing, execution is everything.

With a Nod to Top Gear...No One Should Have This Much Fun

2011-10-04T18:23:00.000-07:00

I'm not sure if this post is about fast cars, sightseeing in Abu Dhabi, or just wondering what $1.3M could buy. Doesn't matter does it? It's definitely not about work!

Procurement Diligence Pays Dividends

2011-10-03T09:17:00.000-07:00

In today’s business world it is important that FM’s get the maximum value for investment while minimizing risk. Being a smart customer is a good way to improve both domains. Many of the business partners you depend upon daily remain under economic duress, which may affect their ability to perform successfully. When the video store on the corner closes its doors it’s an inconvenience, when your outsourced maintenance provider or sub-leased tenant goes dark it’s a whole different issue.

An informed customer has a much greater probability of making smart decisions. I am sure you do a lot of research when you prepare for a major personal purchase, such as a car. You investigate quality and true cost of ownership, and read reviews from experts and other owners. It is only when you feel fully informed and armed with the best information that you proceed to the dealer’s lot. Making a major business purchase is no different – information is king.

Who does the research is also important. Abdicating this responsibility to your Purchasing group is not a good strategy. You know the industries, issues and players. You are prepared to ask telling questions that will reveal a potential partner’s true viability. And it is you to whom leadership will look should a business partner’s performance jeopardize your operation because they are cutting corners or have failed.

Basic investigation should include a comprehensive evaluation of financial health and risk. If a major financial or mission dependent decision is at hand then rigorous investigation is needed. This should include a review of financial health including how well the company is capitalized, a review of their stock price history, independent conversations with clients of your choosing (ask for a full list and make your own judgment on who to call – don’t just call the three or four they recommend), and a SWOT analysis to understand their market vulnerabilities. At the bottom line it’s about the bottom line. Capital is the lifeblood of business. Make sure they have it and know how to use it wisely.

Take advantage of leverage but maintain balance. There are lots of ways to gain pricing advantage when dealing in a buyer’s market, but it is possible to damage future performance and the relationship by being too aggressive. Unsustainable terms may look good now but can cause the provider to fail if they are not able to support operations in an acceptable manner due to cost pressures. While you are busy figuring out how to get the best possible deal, turn the coin over and consider what provides the best possible value. Aggressive but fair economics combined with performance measurements and penalities/incentives that compensate the provider based on true value enhancements to the customer will help set a win-win environment.

It’s all in the contract. All the good intentions in the world aside, it is the contract that rules. For important commitments contract negotiation should be an FM responsibility with Purchasing and Legal in a support role. It is fair to include penalties and often it is smart to include incentives, as mentioned above. Importantly, however, there must be a basis for understanding and interpreting performance in a way that minimizes ambiguity. Performance data, metrics, SLA’s and KPI’s offer essential legal protection but must be well thought out and agreed to, as should the processes for collecting and reporting. Another key clause is the right to re-bid and/or renegotiate the contract at any point at the customer’s sole discretion, with an appropriate notification period. This will allow you to take advantage of economic shifts in the customer’s favor should they occur mid-cycle before you would normally have a chance to re-compete, or to replace the provider should performance fail to meet requirements.

Re-Capitalizing FM's Future

2011-09-26T17:39:00.000-07:00

Our world and profession find themselves at a very interesting nexus. Political, economic, generational and demographic shifts of large independent scale and interdependent relationship are occurring simultaneously. The stress we feel in our personal and work lives shows no signs of diminishing any time soon, and the expectations we must meet seem to be on an ever increasing upward curve.

I believe FM is one of the professions that is most profoundly affected by the current state. With an average age profile that is higher than many professions and the ensuing turnover, the challenges of increasing effectiveness and productivity in an era of severe fiscal constraint, and the continued globalization of business even while reducing costs we certainly have our hands full.

But, there is good news in the midst of the realities of the day, and it is this: We get to make the decisions that influence outcomes. Organizations of all sizes and shapes are looking today for primarily one thing; leadership. In that, we have opportunity to demonstrate FM’s value to our organizations and society. It is not a small thing. It is not an easy thing. It is, however, a very important thing.

One of the knocks against recent governmental economic stimulation strategies is that the programs were often short sighted. Billions of dollars were spent but most of it was spent, in our language, on “deferred maintenance” as opposed to “revenue enablement.” A frequently cited example is allocating money to repair existing transportation infrastructure instead of building new. Yes, it provided temporary jobs, but it has not developed new transportation routes and nodes that encourage business expansion. Regardless of the degree to which this claim is actually true it raises a telling point. What are we doing to make the future better, not just more of the same?

The question I have is this: What are we in FM doing to recapitalize our profession, and are we being smart about it?

If we try to solve this problem on a grand scale it will overwhelm us and we are likely to mimic ineffective strategies that others have tried. I suggest a better approach is a focused attention to the strategies of our unique businesses with a goal to evaluate them candidly, allocate resources where the most potential exists, and to take smart risks where the payoff is probable enhancement of key business objectives.

While there are any number of strategies you might consider, these that follow are universal in nature. These are common sense things that all of us can do. Your own business will have other facets, risks, opportunities and avenues of approach; but virtually all of us can make progress by doing these things well.

Make Sure Core Business Fundamentals are Strong

For most of us our key asset is our people, and it is important that the value of that asset be maintained and enhanced whenever possible. For example, reducing the training budget during tight economic times is a common strategy. It is also a wrong strategy. Training staff to maintain currency with industry standards and knowledge growth is an important part of projecting your organization forward. This attention to staff development will not go unnoticed, sending a strong positive message about your commitment to them and to future successes.

Conduct a candid review and SWOT analysis of your operations. Identify those areas where you are weaker than you should be or face external threats of significance. I’ve always found that this kind of matter-of-fact self-analysis is healthy and helps sharpen focus and direct allocation of resources. It is also an opportunity to be honest with your staff and leadership, and often leads to a partnership based on common objectives.

Step back and take a hard look at your planning and budgeting processes. Is energy and time being spent on issues that really matter? Are there opportunities to reduce red tape to increase effectiveness and throughput? Are interdependencies with other departments properly aligned and communicated? Are decisions provided in a timely fashion allowing best possible execution?

Emphasizing the value and quality of services demonstrates an understanding of your business and protects against budget reductions that can lead to diminished services which may have important impact to corporate goals.

Sustain Excellence to Maintain Momentum

Begin by demanding excellence from your own operations and then drive that culture through your entire supply chain. Strong standards and diligence are the keys here as you work to educate those who need help understanding the importance of the initiative. Improving efficiencies for you will pay dividends for all of a provider’s customers, improve their own bottom line, and be a part of their future success that you will benefit from.

Develop the habits and culture of a learning organization. Investing in training, knowledge expansion, staff certifications and other learning initiatives will pay dividends in improved operations and staff morale. Valuing inquisitiveness and curiosity and allowing people the freedom to investigate will enable discovery of improved processes and new opportunities.

Know your business by the numbers. Understanding enterprise financial and production metrics will give you context in which to understand your own metrics, helping you relate value and scale to internal customers who may not understand how FM influences their operation. More importantly, however, a strong metrics program allows you to evaluate FM performance objectively and focus on improvement initiatives that will make the most difference.

Consistent attention to Continuous Improvement (CI) initiatives allows you to take advantage of information and knowledge assets to improve cost, time, quality and overall value. While it is tempting to let these kinds of programs slide with the pressures of tight budgets and higher workloads, doing so is anathema to the kind of incremental changes that will keep you moving in the right direction. It requires management focus and discipline but the payoffs; optimized processes that provide higher yields, improved customer satisfaction, workforce empowerment and the experience of shared success are all positive outcomes worth the effort.

Invest in Talent

Take a “best available talent” approach to find quality people who can bring expertise and potential into the organization. Worry less about filling specific needs and more about increasing the overall talent and intelligence level in your group. Deal with niche technical needs when you have to but prioritize intelligence, curiosity and energy.

Take advantage of others’ losses by keeping the pulse of organizations around you. Your networking efforts will pay off here as you learn of those who are forced to make staff reductions. With the right relationships you will be able to get solid information on the talent coming out of their system. If you have a short term need or want to try before you buy, consider renting employees that others are faced with letting go. This type of arrangement is not unusual even in good times. If the other company does not want to lose the employee it offers them a way to keep them in play while shifting a portion of the cost to you. From your perspective, you should get the other company to carry the cost of employee benefits, thereby increasing the value to you.

Build relationships with universities to identify and pre-engage with the best young talent. Don’t expect this to be free. Universities will want to develop funding streams for research and partnership activities, but these are often very reasonable in scale and well worth the time effort and cost. One way to do this is by engaging a university to provide specific project research, policy information or hard engineering in a shared effort. Aside from the value of the project outcomes you will develop relationships with young people about to enter the workforce.

Making good use of interns is an under-utilized strategy that you can use to advantage. This is a natural extension of the university engagement strategy discussed above, but is available to you even without direct university engagement. If you elect to pursue interns, however, you should start early in the year and have your selection in place about a month before the term ends. Specific scopes of effort, a discussion of expectations, and an interview process that challenges them will benefit the student and you.

Put the Power of Many to Work

Take advantage of professional associations (IFMA, BOMA, CoreNet, IIDA, NACORE, IREM, et al). Networking within these associations is an idea factory for your organization as you hear of and take advantage of ideas and strategies others are using.

Be intentional with your networking effort and time. Merely sitting in the audience is not going to yield near the benefit that getting involved will. Don’t wait to be asked. Introduce yourself and volunteer, you will be amazed at the long term impact to your company and your career.

Be strategic with networking. Anyone can have an account on any number of social media platforms. But that isn’t really networking in the sense your business and career need. It’s all about face time, but choose the right faces. Evaluate your options and select the one or two organizations that offer the most potential benefit. If you choose more than one be wary of getting too deeply involved with more than one. Participation at a meaningful level requires a time investment. Volunteering to help at an event will lead to committee membership, which may in turn lead to committee or local chapter leadership and beyond. This type of engagement requires that you exhibit integrity. Do what you say you will do and do it well. If you can’t, be honest about it.

Control What You Can

Be accountable and responsible for your commitments and actions. Whether it’s at work, volunteering with an association, or working with your kid’s youth sports program – be dependable. When people know they can count on you they will. When they learn that you cannot be depended upon they won’t. You will be the one that loses the most in the end.

Be honest, candid and genuine. Speaking with respect, clarity and transparency shortens the process between any two points and builds the kind of trust that super-charges organizations. When tough issues come up deal with them constructively and fairly.

Improve your value proposition. Learn what challenges your internal customers are facing and create ways to help them. Help them solve their problems and you will have a friend. Friends come in handy.

Do whatever it takes. The world is full of people who don’t want to get involved, who offer excuses, or fail to live up to their end of the bargain. Don’t be one of them. It is not necessary to say yes to every request and you should learn how to say “no” when needed. But when you do make a commitment then get it done. It doesn’t matter what the obstacles are….find a way.

There you go – a few simple ideas on how to extend your influence and assure that your FM group is equipped for the present and prepared for the future. Take advantage of them and the host of others like them and press on.

Someone I know once said during an especially rough time, “Times are tough, get over it.” That bespeaks a focus and determination that is admirable, even if sounding a bit gruff. I believe it is a valid perspective. However, as leaders we have a responsibility to offer a path forward amid the unsettledness of the day. We have the responsibility, the opportunity and the capability. It resides inside each one of us and to a large extent is a matter of will.

It is not a time for wavering. It is a time for encouragement, leadership, and determination. Reinvest in your profession, your community, and yourself. Make a difference.

A Primer on Project Retrospectives

2011-09-13T09:22:00.000-07:00

We've all heard the terms "post-mortem," "lessons learned, and "after action" in reference to project reviews. If you are like me these reviews are an important learning tool but all too often turn out to be less than they could be. I like the concept of project "retrospectives" a lot more. The term itself implies a different kind of experience. What I like even more is the structured approach demonstrated in Esther Derby's presentation below. It includes the use of tools that will help pull information and concepts forward, defines an inquisitive approach, and offers good do/don't guidance.

Remember too the value of conducting these retrospectives at the start of a new project. Take the time to refresh team member memories of learnings from past projects and discuss them in the context of the coming project.

Agile Retrospectives

View more presentations from Esther Derby

Baseball, Data, and Facilities Management

2011-09-12T07:21:00.000-07:00

Afriend recently sent me a link to a LA Times op-ed piece that used SandyKoufax’s 1965 perfect game as a data collection object lesson. This was of interest to me because I was abig Koufax fan (the only time I ever cut class was to watch him pitch his gemagainst the Minnesota Twins in the ’65 World Series) and I have an interest indata as it relates to the world of FM. The article is both enjoyable and informative, and makes a couple ofpoints relevant to those of us who collect, analyze, or use data.

You can never havetoo much data

Oftenpeople choose not to collect certain bits of data because they do not have orknow of a current need for it. As theauthor pointsout, however, we sometimes later wish we had data that we could have had ifonly we had collected it. With new analysis systems and protocols we canlearn things from old data that help us today. The example he uses in the article is how collecting additional pitch count datachanged the way pitchers are used, thus extending their careers and value. This data always existed but was not collected prior to the 1980's. The potential benefit of the data existed but was unrealized because it had not been collected.

Investigatingold data can lead to new learning, which in turn results in improved operationsand services. Our FM group is a case inpoint. For years we have been collectingand using data on the full spectrum of services and operations. We collect much more data than we analyze orreport, but when we need it, it is there. For example, we have millions of lines of BMS data which allows us toconduct rigorous analysis and troubleshooting when needed. The point is that we did not have a specific need for the data when westarted collecting it. We just didbecause we could. Now, having that dataavailable opens the door to important insights. It allows us to investigate root causes, to map relationships amongvarious indices, and to gain valuable knowledge and wisdom that contribute toimproved designs and process modifications.

Home run or hit-and-run?

Somebaseball fans love the power game, as evidenced by the popularity andpredominance of power hitters. Othersenjoy the nuance of the tactical game. In the business of process improvement, however, the advantage goes to thetactical, the nuanced changes. In business it is rare that you can achieve a large and dynamic change, a “homerun” thatdramatically improves operations. It ismuch more likely that improvements will be incremental with accumulated effectover time, much like a single, hit-and-run, stolen base and sacrifice fly will result in a run scored. None of these represent a run by themselvesbut each is a key part of the sequence that produces in the end. Would you rather take a big swing with lowerodds of success, or spend the time to gain clarity and swing at exactly theright spot, at exactly the right time, with exactly the right force? The answer is obvious, isn’t it?

Foresight andimagination enable discovery

Understandingat the earliest stages of a data collection project that you do not and cannotknow how that data may eventually be used is an important point. It allows you to take a wider approach tocollection and a more diligent approach to the care of your data, and suggestsa healthy inquisitiveness and respect for the unknown that lies in thefuture. Datathat has been diligently collected over time can be synthesized to investigatespecific issues and discern patterns, leading to understanding andimprovement. This may come in the formof a revised process or identification of a problem or opportunity. Regardless, the result is improvement.

Finally, understand that data survives individual systems. Systems come and go. They become obsolete and get replaced, or a new vendor may bring a new system into your operation. Regardless, the data is tangible, it is yours, and it is a hard asset. Treat it that way both in how you care for it and how you protect your legal ownership rights to it.

Take care of your data, and your data will take care of you.

2011-09-10T10:59:00.000-07:00

Never Forget

9/11 is forever engraved in our hearts and spirit. Never forget what it means. Tony Blair said it best I think. This is a war of ideals, big ideals, a contest for hearts, minds and souls. We may think it's over, we may want to relegate it to history, but we cannot.

The price we paid is too dear to be forgotten. The ideal of freedom is too important to be sacrificed at the altar of complacency. It is alive in our hearts, minds, and lives. Honor it, cherish it, defend it, live it.

On a related note, the heroes of Flight 93 have been forgotten. Oh sure, there will be an event today and lots of talk, but ten years on the memorial in Shanksville, PA remains unfinished due to lack of funds. That, my friends, speaks volumes. Let's finish it. Go to the memorial website and donate one hour of your salary.

May God call us to seek His face. May He protect and defend us, and bless us with freedom, courage, and wisdom.
Amen

IFMA Launches Benchmark Data Exchange Utility

2011-09-09T09:39:00.000-07:00

BEX is IFMA's new benchmark application which allows you to compare building data in real time. Check it out here. From IFMA's news release ...

Once enough data is collected to build a report, you can:

Access survey data to compare hundreds of building reports to your facility’s data.
Filter benchmark data specific to your needs—sort by industry, facility type, geographic region, facility size and more.

BEX is now open and collecting your facility survey data:

CURRENT SURVEY: IFMA’s Benchmarks 6 - Annual Facility Costs
COMING NEXT: Operations & Maintenance Benchmarks
COMING SOON: Space & Project Management Benchmarks

Nonparticipants may purchase an annual subscription starting at US$179.

Choosing the Right Service Model

2011-08-28T13:54:00.000-07:00

Selecting the right service model for your CRE and FM organization is a fundamental determinant of your ability to succeed. Executing the plan well is important of course, but does little good if you have selected the wrong plan. Corporate structure, size, sophistication and culture will all influence your choice of service model, which must be well aligned to optimize potential.

This makes understanding your organization well in these multiple dimensions a high priority as you engage on a service model review process. This understanding will be the keyhole to insights into opportunities and risks with the various service models, as they relate to your particular situation.

While there are a multitude of service model options, there are three general classifications into which they tend to fall. Understanding the characteristics of each will help you understand their alignment with your organization, resources and skill sets required to manage, and their respective advantages and disadvantages.

Best of Breed Services Approach

This service model places the CRE / FM organization in direct control of a number of specialized service providers. These may range from real estate transaction management, design and construction management, all the way to operational functions such as maintenance and general services. This model allows you to select the best possible provider for each function, effectively putting CRE / FM in a General Manager’s role. If your organization is global then you have the freedom to select the best providers in individual markets.

By selecting the best service providers for each function and region you enable service excellence. In addition, corporate CRE / FM groups retain appropriate control of tactical execution while avoiding the risk of single point dependency.

However, it is not risk free or without burden. Taking this approach will require attention to governance processes and consistency. The CRE / FM staff must assure that uniform standards are in place and met by all providers, that accountability systems are in place and equitably exercised, and that sufficient resources are in place to manage a large number of contracts and relationships.

Not to be undervalued, it is critically important in this model that disparate entities be harmonized as much as possible. This means special attention to KPI’s, technology, contract synchronization, quality of resources, and solving the technology puzzle in a manner that allows CRE / FM to receive and communicate a rationalized perspective of operations with high confidence.

Bundled Services Approach

The bundled service model describes a one to one relationship between the CRE / FM client and a service entity that directly provides all services. It provides a consistent approach to all services and strong cross-functional coordination since all have the same reporting and reward mechanisms. Additionally, it provides a single point of contact for the CRE / FM group, thus lowering the internal management resource requirements.

The advantages to this model are consistency, economies of scale, and transparency. It is incumbent on the CRE / FM client to establish a contractual and relationship framework that maximizes these benefits while allowing flexibility to continually press the “art of the doable” upon the provider.

Primary risks in this model are the single point of failure nature of a one to one relationship, and potential uneven service performance across the entire portfolio. The latter increases in leverage the more dispersed your portfolio is. An additional risk is that the line between client and provider can become blurred, even internally. In worst case scenarios this can make the CRE / FM group seem irrelevant or without influence. For this reason alone CRE / FM groups that adopt this model must have strong internal executive leadership. Selecting a single provider may indeed be the right choice, but it is always important that both parties clearly understand who is serving whom.

Integrated Services Approach

Similar to the bundled services approach, the integrated services approach provides a strategic alliance between client and one contractual partner. Unlike the bundled approach, the Integrator is able to source individual functional services from the best providers available in a given market.

The integrated services approach is in many ways a combination of the first two models with most of the benefits of the best in breed approach. Additionally, it transfers the responsibility for management and coordination of multiple service provider contracts to the integrator, thus allowing for a smaller internal CRE / FM function. While there is still the dependency risk of the one to one relationship model it is diminished by the integrator’s ability to individually source functional service providers.

This model also has the advantage of placing technology in the integrator’s sphere of responsibility. They then must assure that a wide array of service providers deliver information via the same or compatible technology applications so that data management, analysis and reporting are consistent and transparent across functions.

Risks inherent in the integrated services model include the integrator’s ability to manage a number of service providers in an integrated and transparent manner, and a poorly constructed governance system that allows individual players too much autonomy. Care should also be given during the development phase to assure that the total management structure and cost across the service spectrum is optimized. CRE / FM groups should insist that they be given full visibility into the contractual and management framework between the integrator and its multiple service providers, to assure that an unhealthy and costly management bureaucracy is not being implemented. You must provide and fund appropriate management but should avoid redundancy where not needed.

One final note here applies regardless of your service model choice: The coin of the realm is data. Accurate and timely data about all facets of your operation is the only way you will know when things are working and what’s wrong when they aren’t. Developing your own data capabilities (acquisition, analysis, and articulation) is a critical first step. From that position of knowledge and confidence you will be able to demand strong data discipline from your service partners. Without it you will be hostage to the unknown and unproven.

Alternative Workplace Solutions (AWS) Continue to Evolve

2011-08-14T12:23:00.000-07:00

There are many reasons why the shift to Alternative Workplace Solutions (AWS) continues to develop momentum, not the least of which is a confluence of environmental factors. We are simultaneously experiencing fundamental shifts in different dimensions, each of which in its own right would have caused change. The fact that a significant generational change in the workforce is occurring at the same time as near-cataclysmic economic change presents unique challenges and opportunities. Organizations all over the world are adapting to these realities. How well they do may determine their eventual success or failure.

Clearly there is no “one size fits all” workplace solution. Each organization must understand itself at a deep level and engage in a thoughtful exercise to determine the optimal solution given its unique set of circumstances. This is not to be under appreciated. Too many companies lean too heavily on outsiders. They may be subject matter experts in design, workplace strategies and the like, but they are not subject matter experts in you. Only you can fill that role. Using outside consultants correctly will be an essential part of successful workplace transition, using them incorrectly will be part of failure.

The Scale and Speed of Workplace Change

A common theme I hear is that the speed of life in general and business in particular has increased to the point it is difficult to keep up with. Don’t expect that to change - ever. The rate of technological change will continue to increase. As it does its implications to workplace and personal technology will increase, including the increasing merge of the two dimensions.

Technology changes and continuing globalization will continue to drive new workplace strategies. Already we see organizations spreading their global reach while at the same time reducing their footprint. Both of these strategies influence the workplace in fundamental ways requiring increased attention to corporate and societal culture. Making culture transition a key part of your change management process is a critical step in promoting acceptance.

We hear and see a lot about alternative workplace solutions in technology companies. Often these are characterized as being more open, less private, having higher collaborative qualities and leveraging technology. All well and good. But not every company fits that profile. In these cases it is especially crucial that FM practice leaders focus on the details of business processes, communication systems, naturally occurring culture shifts, and how these can be managed and leveraged. Not all alternative workplace solutions will result in dramatic “new world” makeovers of space, but all of them will result in multi-dimensional change which must first be anticipated, channeled, and finally implemented with great care. Alternative workplace projects are not to be taken lightly.

A Growing Tension Between Real Estate and Technology Change

While real estate and technology are often supportive strategies to each other, they have much different life cycles, and both represent large investments. Real estate decisions typically have life cycles measured in decades while technology changes every three to five years. This fact alone sets up ongoing tension as the two evolve over their separate time lines but must be managed in tandem with each other.

When either approaches a point of change then the tension between the two increases. A real estate strategy to increase density and collaboration (often characteristics of alternative workplace projects) is likely to require increased technology investment. A real estate strategy decision may allow downsizing or redeployment of space but depends upon technology for successful implementation. The risk of fast moving technology changes obsoleting real estate strategy is real, making integrated planning between the two functions more important now than ever before. Increasing real estate agility through portfolio balance helps to dampen investment risk, with the benefits of easing and speeding investment decisions. One way of increasing agility is to increase the ratio and vary the life of lease space in the portfolio, but this too comes with a set of compromises that must be balanced and accommodated.

At the bottom line alternative workplace solutions are an increasingly important tool in the FM/CRE toolkit. But they must be customized to each unique set of circumstances, environment and culture to be successful. They must anticipate and support the nuances of your organization and are thus more likely to succeed when implemented by those who best know the organization, its goals, challenges and culture.

Using the Balanced Scorecard to Improve Strategic Alignment

2011-05-15T13:21:00.000-07:00

The building blocks of strategic alignment; business strategy, FM strategy, organizational infrastructure and processes and FM infrastructure and processes, combine with strategic fit and functional integration to act as the foundation upon which real alignment is built. While understanding this conceptual base is necessary, it is only the base. Strategic alignment is an ongoing process and can sometimes be hard to discern, given its conceptual nature. That is where the balanced scorecard comes in, providing a way to measure FM strategies and outcomes in a way that is clear, relevant to the business, and actionable.

A balanced scorecard measures four dimensions; financial, customer, internal processes, and innovation/learning. This broad view of the business, as opposed to a traditional financial or operational metrics only view, provides a deeper perspective of current operating performance and future performance drivers. Because of this broad view perspective, the balanced scorecard is best viewed as a management system, not a performance indicator.

To build a successful balanced scorecard for FM organizations you must address each of the four dimensions.

Financial Perspective: How is FM maximizing shareholder value?
Customer Perspective: How is FM performing in ways that matter most to its customers?
Internal Process Perspective: What are the factors needed to build strategic capabilities and efficiencies?
Innovation and Learning Perspective: What are the knowledge, skills, and systems needed to sustain continual improvement?

You can see how these four dimensions act upon each other. Learning, for example, supports continuous improvement of internal processes which in turn results in higher customer focus and satisfaction. By linking the four dimensions of the FM balanced scorecard to enterprise strategy FM’s help align their unit strategy with the overall strategy of the business.

This linkage to enterprise strategy is critical. Many FM’s have balanced scorecards that are FM centric, focused primarily on traditional FM metrics. While this may indeed indicate how well your operation is performing in relation to broad based FM benchmarking metrics, it may do little to illustrate how your FM department is supporting or hampering the overall goals of your specific business.

And that is the point, isn’t it? Understanding how FM relates to your overall business, how you can provide positive support to the enterprise, how you can leverage FM to the benefit of your business are all good things to do.

In today’s business world being able to demonstrate value and leverage are two critical elements of success. Those who do these well are at a strategic advantage. They can explain FM value and importance in specific business-centric terms, they demonstrate attention to improving customer outcomes, they learn and innovate to the benefit of the enterprise. In doing all of this they act as thought leaders, anticipating and fulfilling the needs of their organizations, aligning FM with the enterprise at strategic and operational levels.

Is that you? Does it sound like your FM group?

It should.

IFMA Releases Trends and Outlook Forecast

2011-05-08T21:50:00.000-07:00

Last summer I was privileged to participate with a group of invited panelists at IFMA HQ in Houston, Texas. Our topic of discussion was identifying and understanding current and emerging FM trends. IFMA recently published the findings of this working group. Kudos to Shari Epstein (IFMA), and Kurt Neubek, AIA and Joanna Yaghooti, AIA, both of Page Southerland Page LLP. They have done an excellent job of organizing and condensing the material from the two day conference.

You undoubtedly are not surprised that Sustainability is listed as the top trend in today's FM world. But, there are others to be sure. Here is a quick listing of the Top 10, according to the assembled panel.

Sustainability
Complex Building Technology
Economic Recession and the Aging Building Stock
Preparedness
Quantity and Complexity of FM Data
Finding Top Talent
Elevating the FM Profession
Evolving Skill Set and Business Acumen
Enhancing Workplace Productivity
Changing Workplace

Visit http://www.ifma.org/events/fm-news-articles/05032011-fm-trends.htm to see a summary of the report and order your own copy.

Relationship Management Is Key to Strategic Business Alignment

2011-04-10T19:40:00.000-07:00

When working to strengthen FM strategic alignment with the business do not overlook the importance of a strong relationship management program. “Program” implies that this effort is intentional, as it should be. Too many FM’s make the mistake of concentrating solely on the immediate project or task and do not pay enough attention to purposefully managing stakeholder relationships. Relationship management, however, is a critical element of FM success, especially at the leadership level.

A close relationship between functional leadership and customers ranked fourth among enablers that help increase strategic alignment. (Luftman and Brier)

Conversely, lack of a close relationship ranked first out of fourteen identified alignment inhibitors. (Luftman and Brier)

Business executives repeatedly downplayed the value of formal organizational structure, but frequently emphasized the critical role of relationships in achieving strategic alignment. (Chan)

The best relationship management programs are not only intentional but also multi-level. Peer-to-peer communication occurs on a routine frequency at all levels of the organization, informing the alignment process up and down the FM chain.

While it is beneficial that these interactions occur at all levels it is most important that exchanges at the business unit and executive levels be especially well tuned. This is where the most important information resides and where FM has an opportunity to learn the most about stakeholder issues, plans and initiatives. With this knowledge FM leaders can be proactive with projects and services in a manner that best supports core business outcomes. That is, after all, what alignment is about.

At the strategic level executives will want to be intentional about maintaining contacts and a pattern of communication which shares information. These conversations take many forms, some of them of a more informal nature.

At the tactical level there are many ways to increase the alignment dialogue. One common methodology is to designate specific Customer Relationship Managers to interact with their counterparts or senior executives in business units. Often this takes the form of a zone management program in which building specific information and projects are shared, but it need not be that tactical. If it is, the strategic dialogue should be a specific touch point as well.

Alignment, however, is not a one way street. While FM may be seeking to align its strategies and operations with core business strategies this process also informs stakeholders about FM’s capabilities, forward leaning attitude and willingness to be a true partner in the business, not just a “call me when you need me” service provider. It is a critical difference. The more business stakeholders accept FM as a full partner in the enterprise then the more leverage FM can apply to positive effect.

Aligning FM with Enterprise Strategy – What Works?

2011-04-03T18:44:00.000-07:00

Aligning functional operations and strategy with enterprise strategy first requires correctly understanding what alignment is. I think the best practical definition I’ve run across is from Y.E. Chan who says,

“Alignment is best described not as a uni-dimensional phenomenon but as a superset of multiple, simultaneous component alignments that bring together an organization’s structure, strategy, and culture at multiple levels, with all their inherent demands.”

Multi-dimensionsal, simultaneous, and I would add, ongoing alignments. Sounds like a messy process and it sometimes can be. But there are a number of tactics that will help to make the alignment process successful.

A top down approach with a clear focus on business strategy is essential. The changes required during serious alignment projects often require top-down motivation to overcome inertia and turf issues. Senior executives are closer to enterprise strategy and have the ability to exert influence across the organization, and the ability to fund technology and other initiatives.

The alignment framework must be strategy driven. It’s all about consistently applying the same key strategies across the organization in a manner that maximizes adoption, market reach and shareholder value. If the framework is focused on non-strategy issues then the lack of a unifying driver can present obstacles that stymie the effort.

Operational metrics and customer satisfaction help to drive alignment initiatives. Metrics to the rescue, again. It’s hard to align something that you do not clearly see or understand. Correctly quantifying operations and customer satisfaction provides a way to measure alignment gaps and prioritize projects based on expected benefit and importance to successive alignment initiatives.

Adopt continuous improvement and six sigma as alignment tools. Hopefully you have already been using continuous improvement and six sigma protocols to optimize your own processes. Alignment initiatives present the opportunity to take this to the next step, expanding the boundaries around your processes to include outside functions in which there is an important relationship in either direction.

Revisit mission statements to assure relevance and alignment. It may sound obvious (because it is) but many organizations have not aligned their mission statements to be complimentary of each other. If these statements are indeed the pointer on your compass to success, then different parts of the organization are moving in different directions at different speeds and with different levels of concern. Making sure that mission statements express common values and outcomes all the way down the line helps everyone keep their eyes on the same goals.

Make alignment important to everyone. You think it is now? Maybe. Making alignment a reportable element that influences performance reviews and compensation will guarantee it gets the attention you want it to get.

FM Alignment with Enterprise Strategy

2011-03-29T13:00:00.000-07:00

Strategic alignment of facilities management with core enterprise strategies may seem an obviously desirable state but it often remains an elusive one as well. Recent surveys around the alignment issue indicate we still have a ways to go.

80% of senior managers (all support functions) believe that their function and the business is aligned, only 30% of corporate executive managers agree (CIO magazine survey)

65% said ineffective communication of business strategy and goals between business management and functional management is a significant or moderate challenge (Deloitte Consulting)

60% of organizations reported a misalignment between the workplace and business operations because there was no integration with overall business strategy (Business Week)

The “why” of our misaligned state is a bit perplexing, especially given the attention given to business integration over the last several years. I am willing to make a guess, however, that the following can be counted among the culprits.

More attention has been paid to integrating functional silos than strategies
Lack of leadership on the issue - allowing alignment initiatives to languish
Tyranny of the Urgent syndrome – “survival” mentality during the economic downturn
Lack of buy-in for alignment initiatives below the top levels of management

FM’s operational and support function nature often separates us from being considered a core part of the core business. FM work is largely transactional (projects, work orders, services) and not viewed as strategic. Our main measurements are usually expressed in ways that do not relate to the core business ($/sq. ft., BTUH/sq. ft., etc.). Further, our outlook is mainly short term, focused on asset development and management, cost reduction and capital minimization.

In short, we too often think about ourselves in terms we understand but which are largely irrelevant to our business partners. That is not helpful to alignment .

Shifting our focus from operational outputs to business outcomes changes our perspective. It reframes FM projects, services and processes as key business enablers; and encourages us to measure our performance impact upon business strategy and outcomes. Attention is redirected to alignment, adjustment and continuous improvement in support of core business goals.

Shift your focus, FM. That is the beginning of relevancy in today’s business world.

Integrated Project Delivery (IPD): Optimize, Collaborate, and Own the Project

2011-03-20T18:47:00.000-07:00

Integrated Project Delivery (IPD) projects offer many advantages over traditional project delivery systems, including Design-Build and other fast track methodologies. Integrated Project Delivery requires that entities which previously worked together on projects but with different goals and incentives now collaborate. It also requires new behaviors, new attitudes, new contracts and new transparency. Successful Integrated Project Delivery (IPD) projects recognize and exercise these IPD truisms.

Optimization Requires Collaboration: The whole purpose of IPD is to optimize the project delivery process. While there are many ways to collaborate with technology, the interpersonal aspects of IPD teams is critical. Sharing documentation is one thing, rapid recognition of project issues and the ability to quickly convene and resolve them is another. Although not an absolute requirement, many IPD project teams find that co-locating project personnel in one office speeds this process, encourages deeper collaboration, and results in faster decisions with greater cross-functional buy-in.

Collaboration Unlocks Creativity: A natural outgrowth of good collaboration is increased creativity. The free form flow of ideas and instant feedback feeds and helps to accelerate the creative cycle. Design issues, constructability issue resolution, and every other facet of the project delivery process benefits from this outcome.

Joint Control Creates Joint Ownership: Unlike traditional projects where separate contracts set up individual “fiefdoms” inside the project, each with its own set of priorities, incentives and penalties; IPD contracts create a project governance system that increases transparency and participation. Shared decision making results in shared ownership of those decisions, thereby increasing buy-in and speeding execution.

Challenge Stimulates Creativity but Fear Creates Defensiveness: Every coin has two sides and IPD is no different. As I mentioned at the beginning of this post, IPD requires new behaviors and attitudes. When project participants are unable to make those shifts then the requisite trust among team members does not develop and the free exchange of ideas is inhibited, resulting in loss of project momentum and benefit. Choosing IPD team members is a critical first step.

Much of the benefit derived in successful IPD projects comes from enhanced collaboration. But “it ain’t always easy,” as a wise man once said. Participants need to make changes in the way they approach projects. In traditional delivery systems project team members have individual aspirations. They know how they define project success in terms of financial and other project outcomes. But, they are not shared by all and sometimes differ significantly across the team. Individual contracts do little to help and usually more to hinder. IPD projects are based more on shared values. IPD contracts unite all participants under the same set of goals with rewards and risks allocated by consensus. Behaviors are enforced through rewards and consequences that are jointly agreed upon at the outset.

Characteristics of Successful Integrated Project Delivery (IPD) Projects

2011-03-13T20:11:00.000-07:00

The Integrated Project Delivery (IPD) model requires behaviors, collaboration, and alignment of project incentives and risks at a level rarely seen in traditional project delivery systems. Integrated Project Delivery is a holistic approach to project delivery that seeks to improve project speed, cost and quality. Successful IPD projects exhibit a common set of characteristics which can be viewed as guidelines to forming your own project environment.

IPD Project Structure Supports Integration: The project structure is possibly the single most important component in IPD. Establishing project participants early on and bringing them together with common goals, incentives and risks is critical. It requires that the Owner decide who all of the team members are long before the project is designed and bid documents are available, and that project control becomes a shared function. By introducing transparency in control and decision making the group adopts collaboration and consensus as key behaviors, jointly agreeing on incentive/risk sharing and project targets. This is not to say that the Owner relinquishes all rights. The Owner establishes primary project outcomes and deliverables, establishes the budget and schedule. How these targets are reached, however, becomes a much more “engagement centric” exercise than traditional projects experience.

IPD Contracts Serve as an Alignment Tool: Traditional project structures and contracts create three distinct and often competing agendas. When an Owner contracts separately with design professionals and Contractors the Owner assumes the responsibility and risk of coordinating project requirements and aligning entities that may be “working toward one common goal.” At least that’s what we all say. Reality, however, often suggests a different type of alignment, one in which three separate project teams each have their own set of requirements and definitions of a successful project. Integrated Project Delivery contracts bring the Owner, Architect and Contractor together in one arrangement with one set of project definitions and goals. This results in Sub-Consultants and Sub-Contractors also having the same outcomes in mind, as opposed to traditional models where they have more proprietary interests at heart.

Project Participant Mindsets Are Focused on Common Goals: The transparency required of successful IPD projects engenders increasing trust and collaboration. It is through these two channels that some of the most rewarding changes come. Instead of compromising to protect their particular interests in a project all participants must adopt the common (project’s) good as their goal. While the financial incentive of the shared reward pool is certainly a motivator, the importance and benefits of working together in close collaboration should not be under-valued in this sense.

Synergies Enhance Collaboration and Outcomes: Technologies such as Building Information Modeling (BIM) and protocols like Lean Design and Construction are perfect bedfellows with IPD. They accelerate projects while minimizing risk and improving quality. It is no accident that most IPD projects are fast-tracked. These tools and strategies are designed to do exactly that. Greater visibility of design evolution and increased constructability input from the earliest stages contributes to early identification of design conflicts or other issues. Lean Construction accepts time sensitive inputs and prioritizes design and decision making.

The Missing Facilities Management Generation

2011-03-09T09:50:00.000-08:00

Steve Westfall's editorial hits the nail on the head. The looming talent gap is not just an Oil and Energy sector problem. His editorial, however, makes the point succinctly. Who is doing something about it? What are you doing about it?

BIM and IPD Making Value Engineering Irrelevant

2011-02-27T20:57:00.000-08:00

The effective implementation of Building Information Modeling (BIM) and Integrated Project Delivery (IPD) systems and protocols is replacing Value Engineering (VE). The payoff of this shift is in higher quality, lower budgets and shorter timelines. Value is increased, not “engineered out” as is often the case with VE.

Value Engineering’s biggest fault is that it was and is typically implemented too late in the project cycle. It is most often thought of as a tool to bring project costs back in line. Doing this late in the design process, as is usually the case, means that the cost of the design itself goes up even as the quality turns down. Compromises made in late stages to fit the design within budget invariably lead to changes that sacrifice aesthetic, functionality and sometimes even programmatic requirements.

BIM and IPD are changing the model. The design advantages of BIM coupled with communication principles of IPD bring design and budget conflicts to light much earlier in the design process. As a result, the team is able to search for and select alternatives that meet all project requirements. Discovering and solving these issues early on saves time, eliminates rework, improves quality, and allows everyone on the project team to be successful.

But these new tools are not yet common in the marketplace. At this point I see them being mainly used on very large projects such as new hospitals, research facilities, institutional buildings and the like. There are too many owners who have not yet gotten the message. Their “design-bid-build” mentality is meant to ensure minimum cost. What it really does is force every entity involved in the process to have a parochial mentality, therefore denying the advantages of transparent collaboration to the project, and the owner. Projects take longer, carry more risk, cost more and deliver less.

BIM and IPD are tools which actively contribute to and improve the value of projects. As with any new tool, there is a learning process. New team models and behaviors, increased trust and collaboration, a willingness to be transparent and a “us” mentality are keys to IPD success. These don’t come easily to everyone, making the selection of team members more important than ever.

In the old model contracts emphasized constraints and penalties. Guaranteed Maximum Price (GMP) and Lump Sum contracts along with Liquidated Damages clauses and litigation were used to define and enforce project parameters. In IPD relationships and shared risk take a much more prominent position. The emphasis is on Design to a Budget principles where project deliverables and the allowable maximum funding are established. The profit buffer between the two then becomes an incentive pool. In the conventional model design and construction were managed to standard of care and warranty requirements. In the IPD model design and construction are managed by joint decision making and quality adjustments as the project progresses. In short, the contract becomes a tool, not a threat.

Mission Statements as a Strategy Alignment Tool

2011-02-21T12:06:00.000-08:00

One of the ways to align FM strategy with enterprise strategy is by making sure your FM Mission Statement is aligned with the organization’s mission statement and strategies. As I look at mission statements from various FM groups I often see them focus more on FM operations than they do on the mission and strategies of the entities they serve. When this is the case FM can become isolated and be perceived as not relevant to the core goals of the enterprise.

The process used to develop mission statements can support or hinder the quality of the end result. There is no one right answer as each mission statement must be culturally aligned as well as strategically aligned. Some may choose to develop a mission statement through consensus while others will choose to be more top down.

I recall one instance when an entire department was engaged in developing its mission statement. Predictably, a lot of time was spent negotiating specific elements and the language of the statement. Also predictably, we ended up with a statement that embodied a series of compromises needed to reach consensus. After all the effort the new mission statement was quickly forgotten and became irrelevant. It had all the right buzz words and met everyone’s needs, but it didn’t do what it was supposed to do – establish our core purpose in concise language and inspire us to that end.

A better model, I believe, is the top down approach. Defining the organization’s purpose and core values is one of the central roles of leadership. Leaders are accountable for the outcomes and have a closer perspective of corporate strategy, putting them in position to set the performance agenda. I have been part of many mission statement development initiatives. The very best ones I have seen are those which are articulated by strong leaders who have thought strategically about the organization and where it needs to go, and who use the mission statement to define its “True North.”

Assessing Facility Management Performance

2011-02-14T15:38:00.000-08:00

Providing workplaces that meet organizational needs and services that support business operations is what FM’s do. Sometimes, however, it seems like that is the easy part. Knowing exactly what to do and how to go about it can sometimes be a challenge. Even more perplexing at times is understanding how well you are doing and what your customers think of your performance. To help us we have all kinds of performance analysis and management systems, balanced scorecards and the like.

Sometimes I think we over complicate it. What we really want to know can be revealed by the answers to a few simple questions. By properly structuring these questions and aligning them with core principles and tools we open the door to knowledge that improves our processes and increases our value. These simple questions and their affiliated processes are the heart and soul of performance management and improvement.

Who do you serve and what do they do? Understanding your customers and stakeholders is the foundation that supports everything you do. Here is a key fact to always keep in mind: You cannot understand your stakeholders if you don’t know what they are concerned about, and you can’t know that unless you ask. So ask. Be intentional about your relationships with key stakeholders. Their business is your business. Learn it. Start to think and talk in terms of their strategies and goals. Demonstrate to them that you both know and understand their business.

What services do they need? Now that you understand their business, ask what services you can provide that will help them be successful. This is your chance to do the expected well and to surprise with the unexpected. While everyone needs the basics you will find customers who need something else, maybe even something they haven’t realized yet. Knowing your customer’s business at a fine level gives you the ability to see their needs from your perspective. Providing options to improve their value demonstrates FM’s strategic importance and leverage.

What is the best way to provide those services? Evaluating your workflow process is a critical step in making sure that your processes are aligned to maximize benefit across the enterprise. Too often we design and evaluate FM processes and workflow from a FM perspective only. Because of the breadth of our reach our workflow processes touch virtually every nook and cranny of our organizations. It behooves us then, to assure that our workflow is efficient, thorough, and well-aligned. Also, FM sometimes needs to be more assertive in driving workflow alignment throughout an organization. Yes, we serve every nook and cranny; but we also are served by many. We need information and process outputs from others to do our jobs well. When we aren’t getting it we have a responsibility to speak up.

How can you know you are doing a great job? Sustainable metrics are the protein in your FM diet. Metrics provide data, knowledge and eventually, wisdom. Metrics tell you what you are doing, how often, how fast, how well, and how efficiently and effectively. Understanding what is important to your organization, how to measure it accurately, how to analyze the data and glean operating intelligence from the data is a core FM skill set. Some of this information will come from your customers, as it should, but only a small fraction. Those who rely on a limited number (usually less than 5%) of survey returns to portray their operational health do themselves and the enterprise a disservice. You should be tracking and reporting basic numbers and trends for all segments of your FM operation as a minimum. You should also be using metrics to investigate operational alignment with key organizational goals, to troubleshoot when necessary, and to help make the business case for projects and initiatives.

What is the best way to organize? The correct organizational structure is the foundation upon which your strategy and execution capabilities rest. Depending on your company’s size, services/product, complexity, geographical arrangement and the market sector you are in, you may elect to provide all services in-house, out task discreet elements, or outsource the bulk of the FM effort. If outsourcing you might elect different providers for different FM elements, or select one provider per region, or even one global provider. The options here are almost endless and most likely more than one will work for you. But some will work better than others. Understanding the service and competitive advantages and disadvantages of the various organizational models and how they relate to your specific requirements and culture are important steps to knowing your best option. This is truly a foundational issue and getting it right is critical. Do not make changes to your structure without a strong due diligence effort to identify risks and mitigation strategies.

Creating a Sound Facilities Investment Program

2011-01-31T18:43:00.000-08:00

For the last couple of weeks I have been discussing facilities asset management. Understanding the true Total Cost of Ownership is important, but only a part of the process. Total Cost of Ownership combines with Life Cycle Management and Integrated Investment Processes to form a complete facilities investment protocol. Adapting these three elements to your particular situation without invalidating their objectivity will increase your ability to forecast, plan and execute project investments with maximum benefit. Follow these three steps to form a sound facilities investment program.

Adopt Total Cost of Ownership as Your Investment Strategy

Initial development costs of a typical commercial facility approximate 40% of its Total Cost of Ownership. Organizations that make investment decisions on the first build cost alone make that decision without 60% of the available information. Using first build, benchmark Capital Replacement Value ratios, and Maintenance and Operations cost records you can predict to a reasonable certainty the actual cost of the decision over the project’s entire life cycle, thereby informing the decision process to a much higher level. Stated simply, Total Cost of Ownership illuminates the financial life of the building.

At the beginning, TCO predicts the overall investment required to build, own and operate, and dispose of a built asset

Over the life of the project, TCO projects capital investment requirements and cash flow needs

At the end of the asset’s life, TCO informs best investment decisions on timing and mode of disposal

One note to remember: Total Cost of Ownership is a valuable tool at many levels. It can be used to manage portfolio assets such as a large site with multiple buildings and a significant infrastructure investment, the building(s), systems within a building, and even components within a system.

Establish an Interoperable Life Cycle Database as an Investment Foundation

You are awash in data. The question is not do you have it, but whether or not you are making full use of it. Collected continuously throughout the life cycle of a facility, data on all facets of operations and services becomes a treasure mine. Initial costs, the cost of providing services, preventive maintenance, operating and disposal costs are all available to you with varying degrees of certainty. A key mistake that many organizations make is modeling the asset only twice in its lifetime; at the beginning when new projects are being conceptualized and planned, and near the end when end of lifecycle or extend options are evaluated. Failing to maintain a continuous model along the way misses the opportunity to inform decisions throughout the life cycle. Deciding when to refurbish an interior, to change the use of a facility, to replace a major piece of operating equipment, to expand, make capital investments to improve operating efficiency, or even to sell or retain a property in the portfolio are all decisions that benefit from your data. Continuously feeding the database over the life of the facility strengthens your understanding of the cost and benefit of investment decisions along the way. Each incremental save over the life of the facility is compounded over time. Each better decision that is made along the way grows and increases the value and leverage you have on the bottom line.

Implement a High-Value Integrated Investment Process

This speaks to integrating planning and management tools so that they work in harmony with each other. By keeping these protocols in synch you once again improve the accuracy of planning and help maximize investment benefit. Master Planning, Integrated Project Delivery and Life Cycle Management are too often executed as separate activities. Integrating them to share information increases the accuracy and value of each. Integrated Project Delivery (IPD), especially when paired with Building Information Modeling (BIM), helps to lower first cost and improve first build quality. When the BIM model is then kept alive and used throughout the life cycle to model changes and troubleshoot issues the Return on Investment for the system grows as it continues to contribute to the operating and investment efficiency of the project.

Total Cost of Ownership and Life Cycle Management Support Asset Investment Decisions

2011-01-23T18:32:00.000-08:00

Master planning, Project Delivery and Integrated Life Cycle Management are three distinct processes which when properly coordinated result in a true understanding of the Total Cost of Ownership of a property or portfolio. This holistic approach to asset management improves the quality of FM planning and services by objectively comparing development options and modeling various operating scenarios. Taken as a whole and exercised in an integrated fashion over the course of a facility’s life they present a total picture and inform investment and operating decisions at every step.

The key the achieving the desired outcome of information sharing across the three domains is agile systems integration and cooperative communication between the principals involved.

Reduced to its simplest state, the model takes bottom up information from each of the three domains. Each domain then synthesizes its own set of data and needs into its formal output, which is then shared with the other two domains. That said, there is a closer link between Project Delivery and each of its two partners than they share with each other. Master Planning and Life Cycle Management communicate with each other through the Project Delivery process. Master Planning contributes asset investment planning, program needs and approval protocols to inform the design and construction process. Life Cycle Management contributes operations, maintenance and recapitalization information, as well as learning and knowledge gained over the course of a building or portfolio’s life. The Project Delivery process uses these inputs to develop designs and provide operating models that help improve resident processes.

Master Planning integrates three distinct planning processes with the resource planning process. The Growth and Impact Plan, Operations Plan, and Capital Needs Plan ask for resources which must be found and allocated. Resource planning focuses on priorities, resource alignment, and tracking of results. It, more than Master Planning, is a constantly shifting environment with potential to significantly alter what is possible based on market realities, as we have all experienced in the last two years.

Total Cost of Ownership

Asset Investment Strategy

Capital Needs Plan

Retrofits

Renewal/Replacements

Compliance

Life Cycle Plan

Operations Plan

Labor

Materials & Equipment

Systems & Processes

Energy & Utilities

Growth & Impact Plan

Additions

Infrastructure Expansion

Space Plan

Property Expansion

I sometimes run across organizations that fail to understand, appreciate and plan for the real cost of developing new projects. This leads to under-resourced operations, a growing backlog of deferred maintenance, and financial inability to replace assets when needed. This is not readily apparent during the grand opening of a new project, but is sometimes glaringly obvious even in the relative early stages of a project’s life cycle.

It is incumbent upon FM’s to understand these issues and their importance, and to communicate and inform decision makers. It is much easier to do so when one understands financial language and basic principles, and can communicate with decision makers in terms they understand.

Understanding the Total Cost of Ownership of Your Facilities

2011-01-15T20:13:00.000-08:00

Owner’s often make decisions to build or not build new capital projects based primarily on the cost of initial development and depreciation. However, the first build cost of a project is a small fraction of its lifecycle cost and not understanding the total costs could be catastrophic. In the past FM’s have used various budget tools such as the APPA model to predict future operating costs. Today, Building Information Modeling (BIM) not only improves the design and first build cost of a new facility, it also aids in modeling operations and predicting the Total Cost of Ownership.

To help understand the Total Cost of Ownership of a project, break the costs into time sensitive categories as follows.

One Time Development and Decommissioning Costs: These are non-recurring costs that occur once in a project’s life. Costs in this category include conceptualizing and designing the project, bidding the project, financing the project and building and commissioning the project. To these front end costs do not forget to add the cost to decommission, demolish and dispose of the project at the end of its lifecycle.

Annual Recurring Costs: Operating budgets should be forecast through the entire lifecycle of the project and should include staffing, planned maintenance, unplanned maintenance necessary to make repairs, and utilities. These costs may all be forecast by modeling building infrastructure and systems against your use profile, and by applying your historical maintenance experience as a modifier. The last will help fine tune your projection to account for your individual style of operations and efficiency levels.

Periodic Recapitalization Costs: This category should include estimated allowances for retrofits and improvements over time, modifications to support changing program requirements, and the replacement or upgrade of systems as they reach the end of their life cycles. The less certain of these costs, allowances for retrofits, improvements and programmatic changes, can be estimated using past experience as a guide. The upgrade and replacement of major building systems can be predicted with a high degree of accuracy, especially with the aid of BIM.

Defining and forecasting project development, operating, and retirement costs as outlined above improves the information available to decision makers, informs the design process, and helps facility managers properly organize and staff support functions. Aside from predicting the overall investment required the analysis also provides a cash flow model and supports investment decisions to replace major systems (or the entire asset when the time comes).

BIM allows us to model operating and recapitalization costs with a much higher degree of certainty. BIM not only improves the efficiency of the design and construction processes but also the ongoing financial requirements to operate and support the building. By operating the building virtually we can test operating profiles, develop maintenance routines, model energy performance, inform process re-engineering and predict system replacement timing. All of these benefits further inform the understanding of the Total Cost of Ownership of the facility.

When considering the Total Cost of Ownership also factor in the effects of sustainability policies and practices. Sustainability is now a core issue in any new development project. It is likely that the decision to implement a new project will quickly lead to a discussion of sustainability goals for the project and ongoing operations. These discussions and resulting decisions may well place additional demands upon the project which have the potential to change programmatic requirements. For example, a sustainability policy to support the use of mass transit in a new project might lead to a different site selection decision and/or the inclusion of child care facilities. Every time the program changes the requirements to support the facility changes, as does the Total Cost of Ownership of the facility over its lifecycle.

FM’s have a responsibility to elevate the dialogue on these issues when new developments are planned, and a need to demonstrate leadership and knowledge of current best practices. Doing so helps the organization make better decisions, improves FM credibility and best positions FM to operate successfully in the new environment.

Using Metrics to Enhance Continuous Improvement

2011-01-02T20:35:00.000-08:00

If you are like the vast majority of FM’s you are now much more familiar with Metrics and Continuous Improvement programs than you once were. Hopefully you have metrics that measure the important parts of your business accurately, and a system for routinely analyzing and reporting data. Good data collection and analysis practices are at the very heart of meaningful metrics outputs. Measure the wrong things or measure incorrectly and you are at risk of making wrong decisions. Measure correctly and you have a gold mine of opportunity.

Ah, but that is the rub, isn’t it? We have all of this information now, but what are we supposed to do with it? Simply making charts to flash on the screen doesn’t seem like much value for the investment made in developing the data. It’s not. The real value of metrics programs is in the change they lead to. Change, as in “Continuous Improvement.”

Organizations that link their Metrics and Continuous Improvement efforts take advantage of the knowledge gained through data to direct efforts to improve operations. This is a key linkage that increases the return on investment from the metrics program, helps fine tune data processes, and increases the speed of Continuous Improvement.

Continuous Improvement programs that are targeted based on accurate data yield far more beneficial results than those that are not. This is because data driven Continuous Improvement projects apply leverage to those processes in an organization that really matter and have the greatest potential to improve performance.

As an example, let’s take a look at a classic FM service issue through the lens of a data-targeted Continuous Improvement process and one that is not.

The Issue: Customer Satisfaction ratings on hot/cold work orders appears to be declining over time.

Untargeted Approach: Analyze hot/cold work orders for Mean Time to Repair, Mean Time Between Failures, Mean Down Time, etc. to determine which sub-processes appear to be out of control. Investigate and revise those processes.

Data-Targeted Approach: Analyze Customer Satisfaction rating data at a fine level to determine which element(s) of the process is driving the rating decline. Develop a Continuous Improvement project to address those elements.

The difference between the two approaches is that the untargeted approach assumes the entire process is part of the problem, while the targeted approach looks at data to identify the key elements(s) of the problem, thereby concentrating improvement efforts where they matter most.

Interestingly, the untargeted approach may indeed improve the overall process yet not improve the Customer Satisfaction rating. For example, a targeted approach may identify that customer dissatisfaction is based in lack of communication and ambiguity regarding the work order status or close out.

Metrics programs are about discovering data, seeking knowledge from the data, and then turning the knowledge into actionable wisdom. Continuous Improvement programs are about applying systematic problem analysis methodologies to important issues in order to effect positive change in the Quality, Time, Cost and Customer Satisfaction dimensions.

Using data to target Continuous Improvement efforts increases the metrics program ROI and accelerates the pace of operational improvement. That seems like a positive outcome for both, and for you.