fm in turbulent times prof.dr. jan chr. van dalen prof.dalen@gmail.com

FM in Turbulent Times

Prof.dr. Jan Chr. van Dalen

prof.dalen@gmail.com

What is FM

• Classic view: FM is focussed on real estate (buildings + environment) and related issues (e.g. cleaning, catering);

• Resource view: FM is focussed on resource processes (e.g. human resources, material resources, customer resources, financial resources); FM dealing with resource markets;

• Integrative view: FM is the multidiscipline based on the integration of 3 disciplinairy management fields: Resource Management, Service Management, Hospitality Management.

FM resources

• Human resources• Material resources• Information resources• Financial resources• Market resources• Production & Logistics resources• Development resources (Innovation)

FM andHospitality Management

• The art of welcoming

• The conditioning of behaviour• The conditioning of navigation

3 Strategic FM Challenges

• What is the dominant orientation of your organization: enabling or making (facilitating or producing)?

• Did your FM make the step from supporting to enabling (from reactive to pro-active)?

• Did you make the next step in positioning FM: from facility management to enabling leadership (from marching along the choosen road to marking the shining path)

The strategic choices

• Facility or make • Example Health care• Take hospitals:– Healing patients– Or– Enabling medical professionals to

execute medical interventions

Context: what is the world around FM

• Social Economic: a New Economy• Geo-Political: The world is not

enough• Geo-Political: shifting power positions• Political-Administrative: relationship

business vs. state• Turbulence by crisis• Changing Governance systems• Limited tenability of current models

New Economy

changing economic landscape

networks/chains

ICT

demand driven

knowledge economy

servicedominance

virtualisation

globalisation

innovation

directness

convergence

multiformity

prosumption

disintermediated

experience economy nation state vs. business state

FM catching the eye

• Innovative Enabling Solutions• Keys to Sustainability• Thought leadership in strategy and

change• Competition on resources and dynamic

capabilities• Mastering the chain• Contracting and trust• Safety and security

The strategy machine of FM

• Design of effective Facilities policies• Execution of Facilities policies:– Design of facilities and the organization of

facilities– Managerial control of facilities (The signposts)– Maintenance of facilities

• Evaluation of policies performance vs. effectiveness

• Learning to improve• Saving Organizations by Countervailing

Power

The proof of the pudding of FM

Contributing to:• Competitive position• Enabling stability• Enabling dynamics• Wise Leadership

FM Visions/Leadership

• From supporting to enabling• Transformation agent• Distributed / deconcentrated• Complexity management• Leadership conditioning production

• Enable value adding production• Contributing to value adding itself• Wisdom to exert countervailing power:

- Safeguarding efficiency in resource utilization (waste minimization);- Safeguarding responsible management- Continuity by sustainable operations- Developing craftmanship in creating effective management of work constellations

What can we expect from FM Leadership

FM in a wide wide world

• FM adding value in private companies,• FM of part of Government/Governance roles,• FM as a cross-function in cooperation

networks (supply chains)• FM at levels (FM as supplier): Strategic,

Managerial, Staff carrying out • FM disciplines (logistics, purchasing,

information management, personnel, etc.)• FM as an international discipline• FM integrated. But which disciplines together?

Varieties of FM

• Independent company• Which resource components included• What philosophy• Outsourcing vs. insourcing• Integrating resources (cross

operationaL)

Changing Stages

The New Economy vs. the Old Economy:

• No supply dominance: demand driven• No individual firm performance:

cooperation in organizational networks (chains!!)

• No stereotypes: you can cooperate with your competitor, and you can compete with your alliance

• No stereotypes: differentiation is the message

What’s changing

• From national to international to global. And back?

• From face2face to screen2screen• From “objective” evaluation to experiences• From mastering technology to mastering

management• From one size fits all to customization and

differentiation• From “making things” to “serving

customers”• And much more

The newness that diversifies

Variety is the message:• Sometimes supply driven is better

than demand driven• Sometimes government is not

protecting nor supporting you (as business or citizen)

• Sometimes your business is politically governing and your government is business-like managing (NPA)

The beginning of change

• Strategic decision making is surprising• Sudden crises (BP’s oil leaking

catastrophe)• Recognition of a risk profile in the

organization• New political/governmental

developments/policies • Perceptions that are not valid anymore• (Business) models that are outdated

Triggers for transformations

• Leadership decisions• Strategic principles (e.g. do only things you

are good at)• Government choices (like splitting up energy

corporations)• Competition and internationalisation

(transform or perish)• Changing markets• Changing technologies• The chain environment of organizations• Perceived threats for safety and security

Strategic transformation and competition

• Competition is in the eye of the customer• Competition has two faces: supply side and

demand side• More and more it is recognized that (firm)

competition starts at the resource (supply) side• More and more it is recognized that capabilities

to exploit resources better than others is a second necessary condition for succesful competition

• That’s why it is said that competition is in business models

Changes in strategic FM approaches

• What is strategic choices for FM?• The main characteristic of an

organization: FM or PM (production management)

• Which resource processes in FM, which not (political choice?)

• Setting the stage for new work environments (flexibility)

• And: transformation’s consequenses

What perspectives for FM?

• Setting the agenda for organizing work

• Setting steps in making networks/ chains work better

• Turning the key for sustainability• Understanding and overcoming

differences in cultures• By: enabling and conditioning

organizational behavior

What is on the road map of FM?

• Strong, wise , enabling leadership• Innovation of resource processes• Innovation of Markets• Recognizing that without ENABLING,

there is no value to be added

Back to Turbulence

• Restoring control for the benefit of more realistic production

• Discovering a new balance between hierarchy and network control

• New types of Leaders and Leadership behavior

The make up of the wise leader©

• Leadership resources• Leadership dynamic capabilities• Relational Intelligence

• Enabling Leadership in FM highly determines the risk profile of organizations

• Enabling Leadership in FM is good for growth and for retrenchment in business and government