*strategic facility planning, ifma world workplace

IFMA World Workplace 2008 - Strategic Facility Planning: Get out of the weeds and align your workplace with your business’ needs . Bob Sawhill, CFM

Strategic Facility Planning: Get out of the weeds, and align your

workplace with your business’ needs

Bob Sawhill, CFM

Director of Product Strategy, TRIRIGA

CEU/CFM Code: 508SS

Presenter: Bob Sawhill, CFM

30 years in Workplace Management:• Strategic Facility Planning, Industrial Engineering, Facility Project Management• Workplace Management Technology Experience:

– Integrated Workplace Solutions Project Manager, Consultant– IT Program Manager – RE & Workplace Services– Software Product Manager, Strategist

Professional Association Involvement:• Certified Facility Manager (CFM)• IFMA - Chapter President, Information Technology Council leadership• Open Standards Consortium for Real Estate (OSCRE) Workgroups• Instructor & Guest Lecturer at Cal State University’s FM Program Course

Past Employers: Hewlett-Packard, Tektronix, Lockheed, Memorex, Beckman Instruments, USAA

Strategic Facility Planning

• The Situation

• Current Trends

• Organizational Excellence

• Process Integration

• Technology Enablement

Get out of the weeds, and align your workplace with your business’ needs

Strategic Facility Planning (SFP):Get out of the weeds, and align your workplace with your Get out of the weeds, and align your workplace with your business’ needsbusiness’ needs

Learning Objectives:• Understand the value of an aligned Strategic Facility Planning framework to ensure business success.• Discover how performance-based analytics balance and drive goals throughout the planning lifecycle.• Realize how to utilize technologies to align, optimize, and achieve the right solutions.

the situation …

Real estate assets are a cornerstone to success

1 Source: CFO Research Services

2 Source: NACORE

20%of an organizations income statement arereal estate and facilities expenses

35%of an organizations balance sheet assets arereal estate and facilities

48%of an organizations greenhouse gasemissions are produced by buildings

Real estate executives support multiple objectives

StakeholdersStakeholders

ObjectivesObjectives

DriveDrivePerformancePerformance

Growth and Competitive Advantage

Cost and Financial Impacts

Operational Efficiency & Organizational Effectiveness

Service Delivery and Service Costs

Increased Profit

Time to Market

Carbon Emissions

Talent Retention

Budget Adherence

Occupancy Costs

Lease Flexibility

Space utilization

Process Cycle Times

Service Productivity

Schedule adherence

Work Environment

On-time delivery

Chargebacks

CEO CFO COO BusinessUnit Head

The challenge

Process silos

Emergencies

Business EnvironmentEconomy fluctuating GlobalizationOffshoreRisk and uncertaintyMergers & AcquisitionsReorganizations

Perceptions:- Order taker vs. advisor- RE cost of doing business vs. strategic asset

Internal politics

Balancing act:ResourcesScopeTime

Juggling Act:Cost ReductionCapital InvestmentEnvironment Changing WorkforceOutsourcingAging BldgsTechnology advances

Lack of resources Disparate Systems

Strategic Facility Planning enables business strategies and attains a effective right-cost workplace

• value-based goals• collaborative partner• integrated functions

• effective solutions• agile analytics• decision support

• performance-driven• results oriented• efficient execution

Align Optimize ManageStrategies Plans Delivery

current trendsin Strategic Facility Planning

out of the weeds

What is Strategic Facility Planning

“Strategic facility planning represents long-range plans that include facility-specific goals, focused on providing the right capacity in the right place and at the right time to enable the enterprise to achieve its strategy.”

Gary Broersma, CFMChair, IFMA Board of Directors

• IFMA World Workplace 2007, Opening Address on #1 FM Issue, • Facility Management Journal, Jan/Feb 2008 Chair’s Column: Strategic Planning 2008

IFMA Research – Current Trends & Future Outlooks

The missing link: strategy misalignment

Maximum Wealth ofShareholders

Source: CFO Perspective on Real Estate, 2003, USI Corporation

of organizations report workplace assets and operations are misaligned and not integrated with the overall business strategy

>> 60%60%

The oversight: low performance visibility

AberdeenGroup Report: “Real Estate and Facility Lifecycle Management,The three keys to success: Visibility, Visibility, Visibility” – June 2007

> 30% enterprise spendfor Real Estate and Facility Lifecycle Management

40%poor to no visibility

on this spend

Strategic Facility Planning evolution

Traditional - Space PlanningSpace Planning

Evolving - Strategic Facility PlanningStrategic Facility Planning

Visionary - Strategic Workplace PlanningStrategic Workplace Planning

Cost focus Productivity focus Value focus

Efficient operations Effective balance Optimal solutions

Reactive Proactive Predictive

Service fulfillment targets Linked strategic initiatives, tactics Strategic Workplace Framework

Status Reports Key Performance Indicators Performance Management

Responsive Adaptive, flexible Agile

‘Survey says’ Continuous process improvement Break-through strategies

Space Plan Workplace Solutions Integrated Infrastructure

Departmental Floor Plan Regional Division/Business Units Global Enterprise

Place-centricbuilding, space, asset

People-centricanywhere, anytime, anyplace

Optimize: work/worker/workplacecollaboration, teams, environment

Project-based Program-based Project Portfolio Management

Space allocation, current situation Future plans and assignments Leading indicatorsTime-based utilization

Point SolutionsCAFM, RE, CMMS, PM, AEC, …

Integrated Workplace Management Systems (IWMS)

Integrated Infrastructure, Enterprise Knowledge

• The SituationThe Situation

• Current TrendsCurrent Trends

• Organizational

Excellence

• Process Integration

• Technology Enablement

Strategic Facility Planning (SFP)

Organizational Excellence

Leading workplace management organizations aretransforming capabilities from task master to strategist

CollaborativeStrategist

> catalyst roleoptimal value & performancebusiness investment

Workplace Trusted-advisor

Order-taker

enabler rolevalue focusbusiness expenses

caretaker roletask efficiencyfacility expenses

Workplace Management Evolution >>

Traditional Future

OrganizationalEffectiveness

Customer Relationship Management

• C-suite Collaboration:– Trusted-advisor to business-unit– Strategic collaborator on strategy at all levels– Liaison that bridges business and workplace operations

• Emerging Roles and Capabilities:– Customer Relationship Manager– Workplace Consultant– Workplace Strategist

• Capabilities and new skill sets– Inter-personal skills and promotional abilities – Business knowledge and financial analysis– Strategic thinker and practical solution designer

Process Integration

SFP Process Cycles – both cyclical and linear

Ongoing Cyclical Processes

• Cyclical business planning • Continuous improvement • Performance Management

Linear End-to-End Lifecycles

• Building/Asset Lifecycle• Project Lifecycle• Services Delivery

Performance Management delivers continuous improvement through the lifecycle

Align.Establish Objectives

(Workplace Performance)

Align.Establish Objectives

(Workplace Performance)

Records Objectives

Analyze.Evaluate

Outcomes (Workplace Performance)

Analyze.Evaluate

Outcomes (Workplace Performance)

Delivers Reports

and Alerts

Analyzes and Measures Outcomes

Prioritizes Improvements

Act.Improve

Operations (Workplace Performance)

Act.Improve

Operations (Workplace Performance)

Applies Improved Processes

Infuses New Objectives,

Changes Objectives,

Processes, or Seeks New

Processes IWMS Work

ManageOperations

(Workplace Operations)

ManageOperations

(Workplace Operations)

Project Portfolio Management (PPM) process

• Allocate resources to the right projects• Align portfolio to strategic business goals• Govern with Data-driven decisions• Understand value contribution

ContinuousBusiness

OngoingProject

Management

Iterative Project Portfolio

ManagementProcessBusiness

StrategiesProjects

Portfolio Optimization

Portfolio Realignment

Performance Measurement

Decision Gate Evaluation

Strategic Workplace Planning overview

Strategy

Planning

Delivery

Workplace Performance Management

continuous improvement and business planning cycles

past performance | future planspast performance | future plans

Align Optimize Manage

- Access opportunities- Set strategies- Define solution goals

- Analyze scenarios - Design aligned solutions- Evaluate plan

- Implement workplace plans- Manage service delivery- Monitor performance

Strategic Workplace Planning Framework

Align strategy

Optimize planning

Manage delivery

Strategic Workplace Planning FrameworkStrategic Workplace Planning Framework

Strategy Analysis Top-down Objectives Roll-up Strategy Analysis Top-down Objectives Roll-up Evaluations Evaluations

>>Master Plan of Record>>Master Plan of Record

Project/Program Portfolio Management Framework

Project Portfolio Investment Analysis Program Management Bottom-up Prioritization Project Management

Space Planning & Analysis

• Scenario Planning• Forecasting and Requirements• Supply vs. Demand• Stacking, Blocking• Move Sequencing, Estimating• Scenario Evaluation & Analysis

Move ManagementSpace Management

RE Transaction Management Mobility Workplace Solutions

Improve Objectives Manage Evaluate

Linking RE/FM to business strategy

Align strategy

Anna-Liisa Lindholm et al., “A Framework for Identifying and Measuring Value Added by Corporate Real Estate”, FMLink, 2006

Performance Targets

Performance ManagementCascade objectives down to drive accountability

CFOCFO

VP WorkplaceVP Workplace

FacilitiesManagerFacilitiesManager

Increase CompanyProfitability by 2%

Reduce Workplace TCO by 10%

Increase utilizationby 20%

Align strategy

Space Planning& Analysis

Plan Initiation, Forecast

Strategic Planning Framework hierarchy

Global Master Portfolio Plan(s)└>Regional Portfolio Plan(s) └>Site Master Portfolio Plan(s) └>Sub-plans (if needed) | └>Scenario 1 └>Scenario 2 … └>Scenario 2a,b,c …

Cascade down (tops-down):Scope, Contacts,…Templates, Defaults, Baseline, Evaluation Criteria, …Demand, Requirements…

Roll-up (bottoms up):Demand, Requirements…Budget proposalsProject/Program Plans

Align strategy

Workplace Performance Analytics balance utilization opportunities to right-cost facilities

Optimize planning Financial – Operating Cost (Actual vs. Budget) Portfolio – Workpoint Utilization

Operational – On Time Service Responsiveness Customer – Services Satisfaction

Environmental – Carbon Emissions / GSF

Space Planning and Analysis

Scenario Analysis Forecasting and Requirements Supply vs. Demand Stacking and Blocking Move Sequencing Planning and

Estimating Scenario Evaluation and Analysis Implementation Transition

•Master Space Plan, Plan of Record •Project Management•Move Management •RE Transaction Management

InitiatePlanning Cycle

ForecastRequirement

Space PlanningAnalysis

Evaluate, Recommen

d,Approve

Transition to Implementati

Optimize planning

Facility Planning and Analysis matches

business demand to the right-space

Optimize planning

Facility Planning and Analysis seeks solution scenarios at the right-place

Optimize planning

Emissions /GSF

Dallas-Campus

Emissions /GSFEmissions /GSF

Optimize planning

Stack Planning

Optimize planning

Facility Planning and Analysis determines RE Portfolio solutions for the right-time

Optimize planning

Facility Planning performance indicatorsalign designs to attain strategy objectives

Optimize planning

Risk and Uncertainty

• Risk evaluation– Business impacts– Market fluctuations– Project time, scope, resources

• “What-if” scenarios• Exit strategies• Sensitivity analysis• Contingency plans

Launch the right programs Optimize planning

LowHigh

Good-to-Gohigh value, low risk

RetargetRethink, or cancel

Postpone

Risk – ability to execute

mitigate risk

Adapted from: R. Napier, “The Role of Governance and Program Management in the CIO Office, HP CIO Summit, 2003

Prioritize quick-wins Optimize planning

Low High

QuickWins

LowHanging

MoneyPits

MustHaves

Ease of Execution

BusinessValue

Prjct #1

Prjct #3

Prjct #2

Prjct #4 Prjct #6

Prjct #7Prjct #8

Prjct #9

High ValueLow Resource Effort

Replace inefficient plumbing fixtures

Re-carpet with low emissions carpet

Replace outdated water heaters

HVAC systems tuning

Insulation projects

Re-lamp portfolio

Net Present Value

Prioritize opportunities Optimize planning

Evaluation and compare scenarios to support informed decision making

Optimize planning

Evaluation and compare scenarios to support informed decision making

Optimize planning

Move Layout CAD Graphics Design

Integrated end-to-end processes and dataachieve agile and effective execution

• New Leases

• Renew/Extend Leases

• Terminate Leases

• Disposition

• New Building Construction

• Remodeling Projects

• Tenant Improvements (TI)

• Move/Furniture Projects

• Populate Move Lists

• Populate CAD Drawing

RE Transaction Management

ProjectsMove Projects

Manage delivery

Complete the cycle – monitor and measure

Align Strategy

Optimize Planning

Manage Delivery

continuous improvement and business planning cycles

past performance | future planspast performance | future plans

Technology Enablement

Technology Considerations

• Enables Workplace Management Stakeholders– Role-based with appropriate user portal

• Business-unit mangers, executive management• RE/FM executives, planners, performance owners

– Integrated and Cross-functional– Enables decision-support sophistication and capability

maturity

• Enables Workplace Management Processes– Integrated end-to-end lifecycle– Agile, accurate, and integrated information analysis– Adaptable, flexible, configurable processes

Strategic Facility Planning FrameworkIntegrated Methodologies Across the Process Lifecycle

Process Group > Methodology:

Align Strategies- Access opportunities- Adapt strategies- Define solution goals

Optimize Planning- Analyze & optimize scenarios- Align, design, and refine plans- Evaluate & decide on the plan

Manage Delivery-Implement workplace plans-Manage service delivery-Monitor & evaluate performance

StrategicPlanning

- Assess Situation, Opportunity- Set Objectives, Strategies- Tops-down Initiatives, Goals

- Assess Plan of Record Gaps- Establish Programs & Tactics - Bottoms-up Prioritization

- Performance Management (see below)

- Access Opportunities- Align Goals to Strategy- Set Metrics, Thresholds

- Planning Metrics & Indicators- Embedded Planning Analytics- Performance-based Evaluation

- Monitor & Evaluate- Scorecard, Metrics- Analysis, Corrective Action

Project/Program Portfolio Management, Service Portfolio Mgmt.

Portfolio Management/Planning:- Portfolio Balancing- Analyze/Set Resource Mix- Investment Analysis

Program Management:- Prioritization- Plan Projects, Resources- ROI, Risk Analysis

Project Management:- manage scope, time, cost- manage plan execution- evaluate spend

Decision Support Systems Analyze/ Define/ Set: - Funding, Financial targets- Resource Investment

Evaluate Scenarios, Options:- Strategic Fit Rating / Compare- Financial Evaluation / Compare- Qualitative Rate / Comparison- Risk, Sensitivity Analysis

- Business Intelligence- Ad-hoc Reporting

Customer Relationship Management

- Strategic Needs Assessment- Workplace Solution Fit/Gap- Interview, Survey, Evaluate

- Requirements Forecast- Iterative feedback

- Customer Surveys- Change Management- Account Management

Function Specific Processes Space Planning & Analysis: - Forecasting, requirements - Supply vs. Demand - Stacking, Blocking - Move Sequencing, Planning - RE Transaction Management - Bldg System Capacity Analysis

- Move Services- On-boarding, Provisioning- Site Services- Maintenance & Operations- Lease Administration

Primary Roles, Stakeholders

- Executive, Partner, Advisor- CEO, CFO, COO, …- Strategic Business Partners

- Manager, Planner, Consultant- Business Unit Manager- Third-Party Suppliers/Partners

- Manager, Technician, Specialist- Workplace Consumer- Remote worker

Are you ready for the business ups, downs, and turns?

• Economic crisis

• Shrinking resources

• Increasing expectations

• Mergers and acquisitions

• Business dynamics

• Global markets

• Emergency response

• Uncertainty and risk

Keep on-track, and stay out of the weeds

ALIGN Strategies

Drive shareholder value

OPTIMIZE Plans

Right cost, right space, right place and right time

MANAGE Delivery

Achieve performance-driven objectives

Achieve greater workplace performance results

Facility Management

StrategicWorkplacePlanning

Improves operationalefficiency andorganizationaleffectiveness

Increasesfinancial return

Increasesshareholder value

Information contained in this document is proprietary to TRIRIGA INC. (“TRIRIGA”) and may not be used or disclosed without the prior written consent of TRIRIGA®. This document, or any part thereof, may not be reproduced without the prior written consent of TRIRIGA.

Contact Information:

Bob Sawhill, CFMDirector, Product Strategy TRIRIGA

Email: rsawhill@tririga.comwebsite: www.tririga.com

visit us at booth 2540visit us at booth 2540

Strategic Facility Planning: Get out of the weeds, and align your

workplace with your business’ needs

Bob Sawhill, CFM

CEU/CFM Code: 508SS

Environmental Sustainability

people profit planet

Workplace Organization Structures

• Centralization and Consolidation• Process/Standards Governance• Cross-functional collaboration• Communities of Practice/Expertise

Strategic Planning

Align Opportunities:

• Business Objectives• Strategic Initiatives• Workplace

Solutions• Space Capacity• Building Utilization• Programs, Projects• Operating Levels• Service Levels

Align strategy

Diagram source: ProjectConnections.com

Project Portfolio Management (PPM)

Diagram source: ProjectConnections.com

PPM Project Funnel and Pipeline – Align and Optimize

Align strategy

*strategic facility planning, ifma world workplace

strategic planning

facility management

workplace assets

planning lifecycle

business success

real estate assets

facilityspecific goals

real estate executives

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