FM-EndangeredSpecies

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							Facility Managers:
 An Endangered Species?




                          1
James C. Elledge, CFM FMA RPA
         IFMA Fellow
       Infrastructure Manager
            Harris Design
              Dallas, TX
    jelledge@facilitymetrics.org

                                   2
Facility Managers
      Who?




                    3
               Facility Managers
• Who are FM’s?
  • Employment – 344,440
  • Mean Hourly Wage - $25.31
  • Mean Annual Wage - $52,650




  Bureau of Labor Statistics – 2000 Estimates



                                                4
              Facility Managers
 Who are FM’s?
     Today’s Facility Manager Magazine
        50,000 Subscribers (as of December, 2001)
     International Facility Management Association
        17,134 facility professionals
            Representing 54 countries




                                                    5
        Facility Managers
Over 11 years of experience

Over 8 years with current employer

Over 4 years in current position




                                     6
       Facility Managers
Over 72% are 40 years of age or older

83% have an Associates Degree or higher

71% Male




                                          7
Facility Managers
      Where?




                    8
           Facility Managers
Where do they do it?
   4.7 million commercial buildings in the
    United States (1999)
   67.3 billion square feet of commercial
    floorspace in the United States (1999)




                                              9
Facility Managers
      What?




                    10
               Facility Managers
 What do they do?
     According to IFMA:
         long-range and annual     architectural and
         facility planning;        engineering planning and
         facility financial        design;
         forecasting;              new construction and/or
                                   renovation;
         real estate acquisition
         and/or disposal;          maintenance and
                                   operations management;
         work specifications,      telecommunications
         installation and space    integration, security and
         management;               general administrative
                                   services.


                                                               11
           Facility Managers
  Respond to these Top 10 Complaints
“It’s too cold!”          Poor indoor air quality
“It’s too hot!”           No privacy in
Poor janitorial service   workstation/office
Not enough                Inadequate parking
conference rooms          Computer problems
Not enough                Noise level/too noisy
storage/filing space in
workstation


                                                12
         Facility Managers
800 Corporate Help Desks
  Receive 10,050 pleas monthly
  Only 65% are resolved on the first
  response
  An average of 560 callers hung-up before
  their problem was fixed



                                             13
Facility Managers
      How?




                    14
            Facility Managers
 How do they do it?
     Approximately 55% have staff sizes of 12 and
      under




        Profiles ’98 Salary Report – Research Report #19
        IFMA


                                                           15
        Facility Managers
One-half (54%) of all FM divisions are
structured as a separate department of the
organization
42% are part of a larger department
(usually Administration, HR, Finance,
Operations, or Real Estate)
4% are split across various departments.


                                         16
          Facility Managers
Facility management departments most
frequently include:
   maintenance and operations (91%)
   facility planning (88%)
   space management (75%)




                                       17
          Facility Managers
One-half of facility management
departments also include:
   environmental health and safety (58%)
   real estate management (56%)
   administrative services (52%)

Only 8% of departments directly supervise the
information technology function.

                                                18
Facility Managers

      Cost?




                    19
          Facility Managers
Cost per Occupant:
     Property Costs               $6,545
     Property Operations           1,351
     Office Services               1,336
     Facility Management             162

    Total Cost per Occupant       $9,394



       Johnson Controls Office Costs Index – Spring 2001


                                                           20
               Facility Managers

 Overall costs over ten years:
     New Building and Interior      $37,200    3.5%
     Furniture Set                    8,000    0.8%
     Maintenance & Operations        33,800    3.5%
     Technology Support             100,000    10.3%
     Employee Salary and Benefits   790,000    81.5%

      TOTAL                          $969,000   100%

              BOSTI ASSOCIATES


                                                    21
Facility Managers

      Space?




                    22
            Facility Managers
 In what amount of space?
     GSA report shows the following averages for
      rentable square feet per person:
        BOMA           313
        IFMA           355
        KPMG           311




                                                    23
             Facility Managers
 In what amount of space?               Office
     Upper Management         280 Usf   95%
     Senior Management        193 Usf   85%
     Middle Management        142 Usf   65%
     Senior Professional      114 Usf   39%
     Technical/Professional    92 Usf   15%
     Senior Clerical           84 Usf    9%
     General Clerical          73 Usf    5%




                                                  24
Facility Managers

  What’s the problem?




                        25
          Facility Managers
FMLink Survey
   May 2002 - If you are an in-house FM, are
    you earning at least 5% more salary + bonus
    than you did 12 months ago?
    Yes = 29.9%
    No = 70.1%




                                                  26
         Facility Management
FMLink Survey
   March 2002
    Over the past 12 months, is your FM job requiring you
    to work an average of at least one more hour per
    day?
    Yes = 76.7%
    No = 23.3%

   February 2002
    If you are an in-house FM, are you a member of a
    professional association related to FM?
    Yes = 54.2%
    No = 45.6%


                                                        27
           Facility Managers
Corporations have not considered FM a
“core competency”
   In the future, about half of all facility
    management departments will consist of a
    small core staff that relies on contract workers
    and vendors to meet the majority of facility
    management needs




                                                   28
          Facility Managers
Over the next 20 years:
   76 Million Baby Boomers begin to retire
   Only 46 Million Gen X & Y are scheduled to
    take their jobs.




                                                 29
          Facility Managers
 Become perfect candidates for:

          OUTSOURCING!
The future of facility management:
      Key staff managing outsourced tasks and adding
      value




                                                       30
          Facility Managers
Out-tasking (individual, specialized
vendors are hired to provide one or more
functions) is
   Used by 80% of FM departments
Compared to 6% that out-source (full-
service, single source vendors are hired to
provide many services bundled together)
and 14% that currently handle all services
internally

                                           31
            Facility Managers
 The 10 services most often outsourced are (in order)

1. Architectural design
2. Trash and waste removal
3. Housekeeping
4. Facility systems
5. Landscape maintenance




                                                    32
            Facility Managers
 The 10 services most often outsourced are (in order)

6. Property appraisals
7. Major moves
8. Hazardous materials removal
9. Major redesigns, furniture moves
10. Food services




                                                    33
           Facility Managers
Recognition
   Seven in ten executives say facility
    management is a recognized profession, but
    many feel that it is not appreciated except in
    times of trouble
   Six in ten think of their facilities as a cost of
    doing business or a resource that enables the
    organization to function.


                                                    34
          Facility Managers
Incoming workforce has a different work
attitude
   Loyalty and dedication?
   Job over family and fun?
   Long hours?
   Stress?




                                          35
           Facility Managers
Outsourcing
   Best Interest
      Company
      Employer
   Loyalty
      Promotion
      Advancement




                               36
Facility Managers

  What can be done?




                      37
Facility Managers

    Development




                    38
           Facility Managers
Professional Development
   Education
      BOMI Institute
      BOMA Locals
      IFMA
   Knowledge
      Professional Associations
      Magazines
      Trade journals, research reports and white papers

                                                      39
        Facility Managers
Professional Development
Experience
 Certification/Designation

    Certified Facility Manager (CFM) from IFMA
    Facilities Management Administrator (FMA) from
    BOMI Institute




                                                     40
           Facility Managers
Professional involvement
   Networking
   Volunteer
   Write articles
   Mentor




                               41
           Facility Manager
Staff development
   Share the “wealth”
   Conferences and trade shows
      NFM&T
      Construct America – CSI and The TFM Show
      Neo Con
      BOMA Convention and The Office Building Show
      World Workplace
      Local programs and workshops

                                                     42
Facility Managers
    Friend or Foe?




                     43
           FM Changes
Facility managers observe that
outsourcing is good for some services but
not for others, and outsourcing will be
continuously accepted. They also see
outsourcing as a means for lowering
overhead (via downsizing) and saving
money.



                                            44
           FM Changes
In the next five years, the use of
outsourcing is expected to increase.




                                       45
              FM Changes
Re-sourcing
   20 percent of facility managers now handle
    services in-house that were previously
    outsourced. The reasons for moving them in-
    house include improving service quality,
    reducing costs and regaining control.




                                                  46
Facility Managers

     Changes




                    47
              FM Changes
Adopting a customer-service orientation
   Be aware of “true” customers
Communicating frequently and pro-actively

Understanding and working toward the
organization's goals and mission

Becoming involved in strategic planning

                                          48
            FM Changes
Demonstrating added value, by going
beyond the traditional view of facility
management

Successfully controlling and minimizing
costs

Keeping up-to-date with technology and
ideas

                                          49
Facility Managers
    Your thoughts?




                     50
            Questions




Download from www.facilitymetrics.org or
  e-mail to jelledge@facilitymetrics.org   51

						
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