Facilities Management

in Hong Kong

Past, Present & Future

Presentation to

The Hong Kong Institute of Facilities Management

September 23rd, 2000

Philip Lo

Planex Ltd.

Architectural background From design to management Facilities Management through

Technology Established HK practice - June 92 Established HK IFMA Chapter -

November 92

Background

Prior to 70’s non professional

70’s Changing Business Climate:the emergence of the white collar workers,the advent of the computer technologythe turning point of Industrial Society to Information Age,

i.e., manual work to computerised work; new tools, new skills, new space requirements

Formation of FMI (Facility Management Institute)founded by Herman Miller, Inc. in 1979,new approach in managing the work process and workplace, paving the way for the establishment of IFMA.

HistoryUS PerspectiveThe Beginning: Late 1970’s

1980 First FM degree program, Cornell UniversityFormation of the National Facility

Management Association (NFMA)1982 First FM magazine: Facilities Design &

ManagementNFMA name changed to International Facility

Management Association (IFMA)First Facilities Day at NeoCon, Chicago.

1989 MIT founded the International Society of Facilities Executives (ISFE)

BOMI Institute offered the first professional designation for facility managers: the

Facility Management Administrator (FMA)

FM Growth in the 80’sHistoryUS Perspective

Depressing 80’s lead to Booming 90’s

ReengineeringWaves of global corporate downsizing,Dramatic changes in corporate culture &

environment, OutsourcingAdvancement of information Technologies

phenomenon

HistoryUS Perspective

Prior to 70’s non professional

70’s Changing Business Focus:Focused on Maintenance & Repair of BuildingsPromoted by Building Surveying Profession

80’sFormation of BIFM (British Institute of Facilities Management)

Impact of Technology and changing economy

HistoryUK PerspectiveThe Beginning: Late 1970’s

80’s Depression focus on cost reduction

downsizing and more efficiencies

1989Management buy out of Facilities Department of IBMFormation of Procord , later acquired by Johnson ControlsFormation of Johnson Controls IFM

90’s Proliferation of Outsourcing Contracts and Service Providers

Present PFI - Private Financial Initiatives - Mega projects for long term management contracts

HistoryUK PerspectiveThe Changes: Late 1980’s to Now

HK HK

USUS

UKUK

Workplace, Space & Asset Management

Operations + MaintenanceManagement

PropertiesManagement

EstatesManagement

FM in Hong Kong

A Brief History - pre 1997 Non profession in 1980’sFormation of IFMA in Hong Kong in

November 1992Early adoption by Universities & Hospitals &

Multi-NationalsCity University - change dept. name to FMO1995 Establishment of Graduate Degree

programme at Polytechnic University1997 - Asian Economic Downturn

HistoryHK Perspective

A Brief History - post 97Downsizing, cost reduction, out-tasking

outsourcingDramatic changes in economic climate &

business environmentOutsourcing by private, then public

organizations pProperty Management Firms embrace FMEstablishment of Undergraduate Degree programme

by City UniversityFormation of HKIFM

HistoryHK Perspective

So what is it?

Property Management?

Maintenance Management?

Estates Management?

Same old Wine in

New Bottles?

Facility Management?

DefinitionFacilities Management is the

practice of coordination the

physical workPlace with the

People and the Process of

the organization. It integrates

principles of business

administration, architecture

and the behavioural and

engineering sciences.

Facility Management

PEOPLEPLACE

PROCESS

CorporateReal Estate

Facility Facility ManagementManagementLong-range and

Annual Planning

Maintenanceand Operations New

Construction and Renovation

Architectureand

Engineering

Interior SpacePlanning and Space

Management

Security,Telecommunicationsand Administrative

Services

FinancialForecasting and

Management

FM ModelThe

The Primary FM Competency Areas(As Defined for the CFM Program)

Human & EnvironmentalFactors

Real Estate

Planning & ProjectManagement

Facility Function

Finance

Quality Assessment &Management

Communication

Operations & Maintenance

TheEight

CompetencyAreas of

FM

Plans & ControlsPlanning ExpensesCapitalAssetsMeasurements

Space ManagementSpace StandardsSpace AllocationSpace InventorySpace ForecastingSpace Utilisation Moves & Installation

Operations &Maintenance

Preventive Maintenance

SecurityIndoor Air Quality (IAQ) LandscapingEnergy ConservationHousekeepingWaste ManagementEnergy ManagementEmergency OperationsExecutive Services

Real EstateAcquisitionDispositionSite SelectionLeasing & Contracts

A&E ServicesEngineeringArchitectureInterior DesignFurniture DesignConstruction MgmtProject Management

Scope Facility Management

Outsourcing

Source: The Outsourcing Institute

Logistics

Properties / Real Estate

Information Technology

AdministrationHuman Resources

Customer Services, Finance Marketing & Sales, Transportation

Logistics

Properties / Real Estate

Information Technology

AdministrationHuman Resources

Customer Services, Finance Marketing & Sales, Transportation

2001US$318B

1996US$100B

Bank of America Chase Manhattan Bank CWHKT Cathay Pacific HSBC HACTL Housing Authority

How satisfied are you?

What is important to you?

What can be improved?

How to improve?

OutsourcingIn Hong Kong

Exterior Maintenance Interior Maintenance Building Maintenance Building Services Workplace Design Indoor Air Quality Elevators

How satisfied are you?

What is important to you?

What can be improved?

How to improve?

FM Customer Satisfaction

Th Future of

Facilities Management

Th Future of

Facilities Management

FM 2000 & Beyond Core Business Oriented Competency Based Customer Driven Quality Driven Technology Driven Networked Structure

OutsourcedStrategic Partnership

Strategic (Financial) Boardroom Level / Professionalism

FutureFacility Management

PROCESS

PEOPLEPLACECool Living

Gen Y workforcede-Aging of CEOs

New Org StructureNew Economy

Outsourcing

Smart BuildingSmart Space Smart Tech

Future of Facility Mgmt

Impact of IT on FMImpact of IT on FM• FM becomes Information Management

• Accessible by all, anywhere,anytime,anything

Internet enables Facilities Management Information available anytime, anywhere, about anything

The Next Generation of

FM Professionals

• Competency in multi facets - technical skills, financial skills, communication skills,

• Strategic vs. Operational

• Proactive vs.Reactive

• Global vs. Local

• Quality and Customer driven

• Must embrace and utilise technology

• Cannot resist change

Evolution of FM

• 2000 & beyond• Are

you ready?

Trends & ChallengesInternal:• Outsourcing is Business as Usual• Downsizing continues• Efficiency and Productivity• Value-based services• Asset Performance

External:• Mergers & Acquisitions• De-Regulations• Compliance Issues• Environmental Issues• Technology: web-based

What Does This Mean to Your Profession?