Research - Views From the Top...Executives Evaluate the Facility Management Function
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Executive Summary

Importance of facility management: Reduces costs, increases productivity, aids competitiveness
Almost all executives report that facility management makes a positive impact on their organization's productivity and financial bottom-line. However, six in ten think of their facilities as a cost of doing business or a resource that enables the organization to function.

Approximately 40% say that their facilities provide a competitive edge to their organization, while even more, 73%, say that facility management has a positive impact on their competitiveness.

Seven in ten executives say facility management is a recognized profession, but many feel that it is not appreciated except in times of trouble.

Financial management and project accomplishments most important in evaluating facility management performance, but a variety of factors considered

When evaluating facility management performance, nine in ten executives, on average, said that financial management and project accomplishments skill factors are "very important" considerations. Planning/advisory and communication skills were both very important to about seven in ten, customer service to six in ten, and knowledge to about half.

However, all of the skill factors evaluated in the study were rated either very or somewhat important by at least 88% of the senior managers, indicating that facility management personnel are expected to offer a wide variety of skills.

Costs most desired facility management information
Executives are most concerned with receiving accurate and timely information about costs, including budget variations, unexpected repairs, and cost per square foot. Other data commonly considered "essential" are facility status, employee satisfaction with work environment, space-utilization, and risk management issues. Says one senior manager, "Never let me be blind-sided by a problem or change."

Executives strongly support providing facility managers and departments with direct access to senior management, but not in boardroom meetings.

Increasing the value of facility management: Pro-active communication, customer service orientation
Executives strongly suggest that facility managers and departments become more proactive in suggesting better equipment and procedures, and improve their ability to make effective needs assessments. Other recommendations for increasing the value of facility management include:

• Adopting a customer-service orientation
• Communicating frequently and pro-actively
• Understanding and working toward the organization's goals and mission
• Becoming involved in strategic planning
• 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

Similarly, in order for the profession of facility management to thrive in the next century, executives say its practitioners must demonstrate positive financial impacts, be proactive, emphasize long-range planning, and stress non-traditional skills.

The future of facility management: Key staff managing outsourced tasks and adding value
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. At many companies, the core staff that remains will do far more than manage the outside vendors and handle traditional facility management activities; they will be actively involved in organizational planning and change implementation.

Study Methods
Exploratory interviews were conducted with nine senior managers in the Houston area. Some of the companies represented include: Enron, Marathon Oil, Bank United of Texas, BHP Petroleum Americas, Entex, Metro Transit Authority and Star Enterprises. With the information gathered from the interviews, a four-page, self-administered questionnaire was developed by IFMA staff, IFMA's research committee, a management consultant and Gelb Consulting.

To obtain the sample of senior managers, 3,663 IFMA members were sent a letter in May 1996 asking them to provide the name and address of "senior-most person in your organization who evaluates the performance of your facility group - the person to whom the facility manager is ultimately responsible." In return for providing the name of the senior manager, IFMa members were offered a summary of the results of the study.

Upon completion of the first phase of the study, two waves of questionnaires were mailed to 588 executives located in the United States and Canada. The first mailing, on July 19, 1996, contained a questionnaire, cover letter requesting participation in the study, and a postage-paid reply envelope. The second mailing was sent on August 12, and also contained a cover letter, questionnaire and reply envelope. An additional 38 senior managers were added to the second mailing, for a final sample size of 626. A total of 252 questionnaires were returned by the cut-off date of September 6, 1996, for a 43% response rate.

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