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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