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As Lawrence Bossidy, former CEO of Honeywell International, once said, "I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people not on strategies." This statement especially resonates in the field of Facilities Management (FM), where people and strategies intersect to support a company's primary operations. FM has evolved from a responsive role to a proactive one, shifting its focus from cost-saving to value-adding. But what exactly is FM in a strategic context, and how can it contribute to a corporate strategy?Learn more about Facilities Management.

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Flevy Management Insights: Facilities Management

As Lawrence Bossidy, former CEO of Honeywell International, once said, "I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people not on strategies." This statement especially resonates in the field of Facilities Management (FM), where people and strategies intersect to support a company's primary operations. FM has evolved from a responsive role to a proactive one, shifting its focus from cost-saving to value-adding. But what exactly is FM in a strategic context, and how can it contribute to a corporate strategy?

For effective implementation, take a look at these Facilities Management best practices:

Explore related management topics: Corporate Strategy

The Strategic Role of Facilities Management

At its core, Facilities Management involves the coordination of an organization's physical infrastructure, people, and essential systems to ensure a safe, efficient, and productive operating environment. A well-strategized FM approach can align corporate and property strategies, optimize workspace utilization, reduce costs, improve service delivery, and ultimately enhance a company's competitive edge.

Understanding Strategic Facilities Management

Strategic Facilities Management goes beyond mere maintenance tasks—it involves the thorough understanding of the long-term business plans and strategic objectives of an organization to guide the provision of facilities services. Effective Strategic FM encompasses several key principles:

  1. Alignment with Corporate Strategy - The FM strategy should be intertwined with the overall business strategy. Understanding the company's mission, vision, and strategic objectives is crucial to conceive an FM plan that supports them.
  2. Customer Centricity - The ultimate goal of FM is to create a conducive, productive, and user-friendly environment for its customers, the employees. FMs must understand their needs and priorities and tailor services accordingly.
  3. Sustainability Focus - In today’s world, embracing sustainability is not just responsible—it’s essential. Strategic FM involves the implementation of sustainable practices and technologies that not only reduce the company's carbon footprint but can also result in significant cost savings.
  4. Performance Measurement - Facilities managers must track performance metrics to determine the quality of service delivery and identify areas for improvement. This enables evidence-based decision making, encouraging continuous improvement.

Explore related management topics: Continuous Improvement Decision Making Business Plans

Transforming into a Strategic Facilities Manager

Transitioning from a traditional FM role to a strategic one may require cultural and operational changes within the organization. However, the transformation can be achieved by embedding the following best practices:

  • Develop Strategic Leadership Skills - Along with possessing technical expertise, the strategic Facilities Manager must exhibit strong leadership and managerial skills to effectively navigate the organization and drive change.
  • Embrace Digital Transformation - The use of technology, such as asset tracking, predictive maintenance tools, and space management software, can significantly streamline operation processes and enhance service delivery.
  • Foster Cross-Functional Collaboration - working towards shared goals with departments like IT, HR, and Risk Management can help to align organizational objectives with FM practices.
  • Continuous Learning - Industry trends, technological advancements, and regulatory changes often impact FM. Hence, constant learning and self-development are vital for strategic FM.

Explore related management topics: Digital Transformation Risk Management Best Practices Leadership

The Impact of Strategic Facilities Management

Adopting Strategic Facilities Management provides a competitive advantage by driving Operational Excellence, mitigating risks, and enhancing user experience. Its impacts are manifold—FM affects employee productivity, brand perception, and certainly the bottom line. As such, C-level executives should value the strategic role of FM and understand its potential to optimize operations, provide long-term cost savings, and contribute to the company's overall strategic objectives.

Ultimately, Strategic Facilities Management isn't just about managing buildings—it's about managing resources and operations that enable businesses to perform at their best. When FM is viewed from a strategic lens, it becomes more about creating value rather than merely cutting costs.

Explore related management topics: Operational Excellence Competitive Advantage User Experience

Facilities Management FAQs

Here are our top-ranked questions that relate to Facilities Management.

In what ways can Facility Management drive cost savings without compromising on quality or employee experience?
Facility Management can achieve cost savings without sacrificing quality or employee experience by focusing on Strategic Planning, leveraging technology, and emphasizing sustainability, enhancing operational efficiency and competitiveness. [Read full explanation]
In what ways can Facilities Management drive innovation within an organization?
Facilities Management drives innovation by integrating smart technology, embracing sustainability, and fostering a Culture of Continuous Improvement, enhancing Operational Excellence and Digital Transformation. [Read full explanation]
How can cross-functional collaboration be optimized to enhance Facilities Management outcomes?
Optimizing cross-functional collaboration for Facilities Management involves Strategic Planning, Goal Alignment, enhancing Communication and Collaboration, and leveraging Technology and Data Analytics to achieve integrated, efficient outcomes aligned with broader business objectives. [Read full explanation]
How does Facilities Management contribute to the creation of inclusive environments that support diversity and accessibility in the workplace?
Facilities Management is crucial in creating inclusive work environments by prioritizing accessibility and diversity through Strategic Planning, implementing assistive technologies, and fostering continuous improvement and employee engagement. [Read full explanation]

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