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As Peter Drucker, the well-known management consultant once said, "Management is doing things right; leadership is doing the right things." Nowhere is this observation more applicable than in the field of Facility Management—a strategic discipline that ensures the functionality, comfort, safety, and efficiency of the built environment. A key enabler of business strategy, Facility Management plays a pivotal role in the effective utilization of an organization's resources and capabilities—a fact that can be overlooked amidst daily operational pressures.

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Flevy Management Insights: Facility Management


As Peter Drucker, the well-known management consultant once said, "Management is doing things right; leadership is doing the right things." Nowhere is this observation more applicable than in the field of Facility Management—a strategic discipline that ensures the functionality, comfort, safety, and efficiency of the built environment. A key enabler of business strategy, Facility Management plays a pivotal role in the effective utilization of an organization's resources and capabilities—a fact that can be overlooked amidst daily operational pressures.

Understanding Facility Management

The pivotal role of Facility Management in today’s rapidly changing business environment cannot be understated. It's an interdisciplinary field that focuses on the holistic coordination of people, place, process, and technology—encompassing everything from strategic planning and project management, to operational excellence and performance management.

Facility Management involves the orchestration of various management disciplines such as financial and human resources management, property management, information technology, governance and risk management—all aimed at fostering an enabling work environment that helps employees perform at their peak.

Best Practices in Facility Management

Some of the best practices that have emerged in the field of Facility Management include:

Strategic Impact of Facility Management

Increasingly, senior executives are realizing the strategic implications of Facility Management. Beyond the day-to-day operational tasks, Facility Management plays a crucial role in strategic planning. Decisions relating to real estate and capital investments, sustainability initiatives, employee productivity, and even branding are often intertwined with facilities management.

In the digital age, Facility Management also plays a prominent role in Digital Transformation, procuring and managing the technologies that are necessary for organizations to remain competitive. This positions Facility Management as not just a support function, but as a strategic partner in business success.

The Changing Landscape of Facility Management

The global pandemic has drastically accelerated trends within Facility Management. Work from home arrangements, stringent sanitation protocols, and a renewed focus on employee health and well-being have catapulted Facility Management to the forefront of strategic importance. In this rapidly changing context, the Facility Management function must be flexible and innovative, proactively anticipating and addressing new challenges.

For instance, Facility Management priorities are now shifting to enhance the ‘human experience’. Workspaces are being designed to increase employee satisfaction, productivity and collaboration. The integration of technology into facility management has resulted in Smart Buildings capable of optimizing energy usage, regulating lighting and temperature, tracking asset utilization, and even analyzing space usage to design more efficient layouts.

To close this discussion, Facility Management is evolving from an operational function to a strategic discipline. Its potential to positively impact significant aspects of business, including employee productivity, capital investments, corporate branding and sustainability uniquely positions it as a key enabler of Corporate Strategy.

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


Explore related management topics: Information Technology Digital Transformation Operational Excellence Real Estate Strategic Planning Performance Management Risk Management Human Resources Management Corporate Strategy Project Management Best Practices Facilities Management




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