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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.Learn more about Facility Management.

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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.

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

Explore related management topics: Leadership

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.

Explore related management topics: Information Technology Operational Excellence Strategic Planning Performance Management Risk Management Human Resources Management Project Management

Best Practices in Facility Management

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

  • Establishment of clear mission and goals: These serve as a guiding light for the Facility Management team, providing clarity on roles, responsibilities, and performance expectations.
  • Adoption of technology: The use of Computer Aided Facility Management (CAFM) systems, Building Management Systems (BMS), Intelligent Building Concepts, and even AI and IoT can significantly enhance efficiency and productivity of facilities.
  • Training and development: Continuous learning is key to ensuring the Facility Management team is updated with the latest standards, technologies, and best practices in the industry.
  • Sustainability initiatives: These can range from energy and water conservation efforts to waste management and recycling programs.

Explore related management topics: Best Practices

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.

Explore related management topics: Digital Transformation Real Estate Facilities Management

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.

Explore related management topics: Corporate Strategy

Facility Management FAQs

Here are our top-ranked questions that relate to Facility 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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