high impact facilities organizations for submission
TRANSCRIPT
HIGH IMPACT FACILITIES ORGANIZATIONSTHE WHAT, WHY, AND THE HOW TO
HIGH IMPACT FACILITIES ORGANIZATIONSTHE WHAT, WHY AND HOW TO
Connected
HIGH IMPACT FACILITIES ORGANIZATIONSTHE WHAT, WHY AND HOW TO
Integrated
HIGH IMPACT FACILITIES ORGANIZATIONSTHE WHAT, WHY AND HOW TO
Effective
WHAT’S UP?
WHY IS THIS?
Facilities managers often miss opportunities to have greater impact and influence on the strategic direction and
viability of our organizations.
Why? Partly history and partly self-inflicted. We typically focus on behind the scenes operations and being
responsive when called upon
OUR GOAL
Performance Measures
Strategic Alignment
More impact
Our goal? Share ideas on how
performance measures and strategic
alignment will improve your impact
What’s the upside? Better…
Return for us as individuals for
our time invested
Stewardship of the facilities we
care about
Opportunities for our teams
Business and program success
WHAT WE’LL COVER
Agenda
Who we are
What typically matters to us as facilities managers,
our leadership, and the disconnect
Case for change
How?
Recent, real life example: National Park Service
Session Summary
Organizational impact is highly sought-after but
difficult to plan for and even more difficult to
measure. With this gap in mind, this discussion turns
traditional facilities metrics on their side to look at
organizational performance from the vantage point
of the stakeholders.
Today’s common metrics
Disconnect
Advancing asset stewardship, expanding roles and
responsibilities
Measuring impact
INTRODUCTIONS: HI, I’M ROBIN.
From the outside looking in, a consultant’s perspective
16 years working with facilities clients in strategic planning, data and
analysis, communications, and project management
Obsessed with figuring out how to make organizations (including my
own) more effective
INTRODUCTIONS: HI, I’M TIM.
From the inside looking out, a practitioners perspective
40 years working for the National Park Service in facilities.
Established the asset management program and lead a
(reluctant, at times) team to reinvent how they managed our
nation’s most precious assets into perpetuity
Obsessed with using data to drive decisions, building cohesive
teams, and integrating facilities across all disciplines
YOU ARE HERE
AS FACILITIES MANAGERS, WHAT MATTERS TO US?
Day to day, we’re concerned that
Systems are running
Pathways are cleared and safe
Air is clean and warm
Water is on
People are busy, and
We’re responding appropriately to customer requests.
Longer term, we concerned that
Outyear operations and maintenance costs are covered
the budget
Plans are in place for major renovations
Sufficient space is available to accommodate changing,
growing workforce
Staff are efficient with their time
SNAPSHOT OF COMMON MEASURES
Commonly used measures (both federal and private sector) include the following…
Table adapted from, “The Best Practices in Facility Management: Creating an Environment of Operational Excellence” by Kit Tuveson, CFM, IFMA
Fellow & Chris Hodges, P.E., CFM, LEED-AP, FRICS, IFMA Fellow
Metric Description Standard Metric Description Standard
Facility Condition Index (FCI) <0.05 Stockroom Turns / Year 2 - 3
Deferred Maintenance Backlog Trend Annual Training Hours >40 hrs.
On-the-job Wrench Time >60% Maint. Cost / Replacement Cost 3 - 4%
PM / CM Ratio 70 / 30 Percent Return Work <5%
Unscheduled Maintenance Downtime <2% Mean Time Between Failures Trend
PM Schedule Compliance >95% % Failures Assessed: Root Cause >75%
CM Schedule Compliance >90% Maintenance OT Percentage 5-15%
Unscheduled Man-Hours <10% % WO Covered by Estimates >90%
WO Turn-Around Time Trend On-Site Supervisor Time >65%
Emergency Response Time <15 min.2 Stockroom On-Time Delivery >97%
Stockroom Service Level >97% Material / Part Performance >98%
ISSUES WE TALK ABOUT
In addition to budget and personnel issues that are
common across all professional disciplines, challenges
include:
System performance and increasing complex
building systems, aging facilities
Emergency preparedness, safety, and business
continuity
Quantity and complexity of data
Finding talent
Sustainability
International Facility Management Association (IFMA), Top
Condition
Accessibility
Utilization
Energy Consumption
Health and Safety
Security/Risk
Operating Costs
ISSUES CEOS TALK ABOUT
Continuously enhancing client service
Agility and business resilience
Making technology a competitive advantage
Finding and retaining the best talent
Positioning in a global marketplace
Wall Street Journal, The Top Issues CEOs Face These Days,
March 19, 2014
Talent
Regulations
Cash Flow & Investments
ResilienceForecasting
Future
Client Service
Technology
System performance
Emergency preparedness
Use of data
Finding talent
Sustainability
Enhanced client service
Agility, business resilience
Making technology a competitive advantage
Finding and retaining the best talent
Positioning in a global marketplace
Fac
ilitiesLead
ersh
ip
THE DISCONNECT
BRIDGING THE DIVIDE
Us Bridging Metrics Them
System
performance
• Operational efficiencies and cost savings
• Reinvestment ideas– additional client service staff, customer routing analysis, call center configuration
and placement, employee empowerment
Enhanced client
service
Emergency
preparedness
• Failure root cause and trend analysis, demonstrating that systemic issues are being
• Host cross-division table top exercise to train plan
• Backup sites and systems established
• Portfolio agility
Agility, business
resilience
Using data • Make case for hiring (or sharing) analytics officer
• Include section on emerging tech and trends in facilities in every report
• Combine facilities data with other divisions– sales, employee turnover,
Making technology
a competitive
advantage
Finding talent • Insert or obtain feedback from employee satisfaction survey
• Repair ticket analysis, trends addressed and feedback loop closed
Finding and
retaining the best
talent
Sustainability • Construction and maintenance cost analysis across multiple countries
• Labor availability
• Input on return on investment analysis
• Maintain average costs to move (per employee or business line)
Positioning in a
global marketplace
HOW TO DO THIS
Review current
measures
Map metrics
Plan strategic conversations
Seek alignment
Jump in
Our people, facilities, and other resources
Assess needsOperate systems
Respond to breaks
Plan, execute improvements
Maintain and improve compliance Correct past non-complianceCompliance
Understand requirements
Facilities are functioning
Breakdowns are fixed
Long-term rehabs done
We know what we have
and need
Employees, customers
happy
Improving service,
reducing costs
Ahead of trends,
building agility
Our inputs:
The way we
use resources
Our outputs:
Activities we
do
Our
outcomes:
The goals we
are aiming to
achieve
Our impacts:
The difference
we want to
make
Metric Map
WHAT ARE STRATEGIC CONVERSATIONS?
Tactical
Focused on deliverables
Choose steps and processes
“We can’t do it that way.”
“That’s not my job”
Creates plan to reach goal
Strategic
Focused on the outcome
Chooses path of least resistance
“How can we make it work.”
“This is everyone’s job.”
Chooses vision and plans backward
PLAN STRATEGIC CONVERSATIONS
Think creatively about possible, fruitful cross-division partnerships
Define for yourself and your team how you want to come across in the next management meeting
Tips from “Moments of Impact”*
1. Act like your competition
2. Make a clear distinction between the present state and future options
3. Turn the meeting into a game or simulation
*Moments of Impact: How to Design Strategic Conversations That Accelerate Change by Chris Ertel and Lisa Kay
Solomon
WHERE TO START
We want to “show up” with a fresh
mindset
Use current and revamped metrics that
translate facilities into value to the
organization, not just cost
Plan strategic conversations, demonstrate
thinking outside the function
Find alignment with people, culture and
connectivity
Deliver
WHEN YOU THINK ABOUT NATIONAL PARKS…
What comes to mind?
PERFORMANCE MATTERS
Stewardship The careful and responsible management of something entrusted to one's care
Accountability The recognition and assumption of responsibility for actions, products, decisions,
and policies within the scope of the role or employment position and encompasses
the obligation to report, explain and be answerable for resulting consequences
COMMONLY USED MEASURES – NATIONAL PARK SERVICE
Facility Condition Index
Critical Systems Condition Index
Unscheduled Maintenance on High Priority Assets
Health and Safety Response Time
Energy Use
Baselining and Measuring Impact
Make sure that metrics that are collected are meaningful and can be acted upon
Understand the interplay between metrics
Should be used for the long term, strategic view
WHAT’S IMPORTANT TO STAKEHOLDERS
Understanding who are your client’s and their expectations
is critical.
For the National Park Service, first and foremost it is the
park visitor
What does the condition of NPS assets, the state of the
NPS preventive maintenance program, the amount & cost of
power usage by the NPS mean to it’s client?
FCI reflects overall condition and function of an asset
Effectiveness of the PM program can show root cause
for declining condition
High utility costs = high tax $’s
MOVEMENT TOWARDS ASSET STEWARDSHIP
Grand Canyon National Park
Park Asset Management Plan
September 31, 2006
Great Smoky Mountains National Park
Park Asset Management Plan
Rocky Mountain National Park
Park Asset Management Plan
Yellowstone National Park
Park Asset Management Plan
Yosemite National Park
Park Asset Management Plan
KEEP IN TOUCH
Comments, questions, or follow up?
Reach Robin at [email protected].
You can also find me on LinkedIn, follow me on
Twitter @robincamarote, or on my blog at
goviepop.com
Reach Tim at [email protected]. You can also find
me on LinkedIn or follow me on Twitter @fastharv
REFERENCE LINKS
FMLink, Corporate Real Estate, Facilities Management & the C-Suite: The Eternal Question, by George Bouri
FacilitiesNet, Facility Executives Discuss Facilities' Value to Organizations, by Ed Sullivan, April 2005
Forbes, The New Science of Efficient Organizations by Greg Satell, February 24, 2014
Wall Street Journal: The Top Issues CEOs Face These Days, March 19, 2014,
IFMA, Top 10 FM Trends May 03, 2011