Facilities Management in Hong Kong Past Present Future

Facilities Management in Hong Kong Past, Present & Future Presentation to The Hong Kong Institute of Facilities Management September 23 rd, 2000 Philip Lo Planex Ltd.

Background s s s Architectural background From design to management Facilities Management through Technology Established HK practice - June 92 Established HK IFMA Chapter November 92

History US Perspective The Beginning: Late 1970’s Prior to 70’s non professional 70’s Changing Business Climate: the emergence of the white collar workers, the advent of the computer technology the 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.

History US Perspective FM Growth in the 80’s 1980 First FM degree program, Cornell University Formation of the National Facility Management Association (NFMA) 1982 First FM magazine: Facilities Design & Management NFMA name changed to International Facility Management Association (IFMA) First Facilities Day at Neo. Con, 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)

History US Perspective Depressing 80’s lead to Booming 90’s s s Reengineering Waves of global corporate downsizing, Dramatic changes in corporate culture & environment, Outsourcing Advancement of information Technologies phenomenon

History UK Perspective The Beginning: Late 1970’s Prior to 70’s non professional 70’s Changing Business Focus: Focused on Maintenance & Repair of Buildings Promoted by Building Surveying Profession 80’s Formation of BIFM (British Institute of Facilities Management) Impact of Technology and changing economy

History UK Perspective The Changes: Late 1980’s to Now 80’s Depression focus on cost reduction downsizing and more efficiencies 1989 Management buy out of Facilities Department of IBM Formation of Procord , later acquired by Johnson Controls Formation 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

FM in Hong Kong US Workplace, Space & Asset Management Properties Management Estates Management HK Operations + Maintenance Management UK

History HK Perspective A Brief History - pre 1997 s s s Non profession in 1980’s Formation of IFMA in Hong Kong in November 1992 Early adoption by Universities & Hospitals & Multi-Nationals City University - change dept. name to FMO 1995 Establishment of Graduate Degree programme at Polytechnic University 1997 - Asian Economic Downturn

History HK Perspective A Brief History - post 97 s s s Downsizing, cost reduction, out-tasking outsourcing Dramatic changes in economic climate & business environment Outsourcing by private, then public organizations p Property Management Firms embrace FM Establishment of Undergraduate Degree programme by City University Formation of HKIFM

So what is it? Facility Management? Property Management? Maintenance Management? Estates Management? Same old Wine in New Bottles?

Definition Facility Management Facilities Management is the practice of coordination the PROCESS physical work. Place with the People and the Process of the organization. It integrates principles of business administration, architecture and the behavioural and engineering sciences. P E C LA PEO PLE

M The Model Financial Forecasting and Management Security, Corporate Real Estate Long-range and Annual Planning Maintenance and Operations Telecommunications and Administrative Services Facility Management New Construction and Renovation Interior Space Planning and Space Management Architecture and Engineering

The Primary FM Competency Areas (As Defined for the CFM Program) Operations & Maintenance Real Estate Communication Quality Assessment & Management The Eight Competency Areas of FM Human & Environmental Factors Planning & Project Management Finance Facility Function

Facility Management Scope Real Estate Acquisition Disposition Site Selection Leasing & Contracts A&E Services Engineering Architecture Interior Design Furniture Design Construction Mgmt Project Management Plans & Controls Planning Expenses Capital Assets Measurements Space Management Space Standards Space Allocation Space Inventory Space Forecasting Space Utilisation Moves & Installation Operations & Maintenance Preventive Maintenance Security Indoor Air Quality (IAQ) Landscaping Energy Conservation Housekeeping Waste Management Energy Management Emergency Operations Executive Services

Outsourcing 2001 US$318 B Logistics Properties / Real Estate Information Technology 1996 US$100 B Administration Human Resources Customer Services, Finance Marketing & Sales, Transportation Source: The Outsourcing Institute

Outsourcing In Hong Kong 4 Bank of America 4 Chase Manhattan Bank 4 CWHKT 4 Cathay Pacific 4 HSBC 4 HACTL 4 Housing Authority How satisfied are you? What is important to you? What can be improved? How to improve?

FM 4 Exterior Maintenance 4 Interior Maintenance 4 Building Services 4 Workplace Design 4 Indoor Air Quality 4 Elevators Customer Satisfaction How satisfied are you? What is important to you? What can be improved? How to improve?

Th Future of Facilities Management

Facility Management Future FM 2000 & Beyond s s s Core Business Oriented Competency Based Customer Driven Quality Driven Technology Driven Networked Structure t t s s Outsourced Strategic Partnership Strategic (Financial) Boardroom Level / Professionalism

Future of Facility Mgmt New Org Structure New Economy Outsourcing PROCESS PLACE PEOPLE Smart Building Smart Space Smart Tech Cool Living Gen Y workforce de-Aging of CEOs

Impact 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 & Challenges Internal: • 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?