Facilities Management Organizations Research Articles

Innovation process and innovativeness of facility management organizations

PurposeThe innovation patterns and processes in facility management (FM) organizations are crucial for the development of FM as a discipline, but they are not yet fully explored and understood. This paper aims to clarify FM innovation from the perspective of innovation processes and the innovativeness of FM organizations.Design/methodology/approachIt explores the innovation patterns in FM organizations by applying the innovation management concepts to FM practices. A sample of four FM organizations is analyzed by means of a comparative case study approach. Based on their innovative performance, the sample of FM organizations are divided into two groups – a group of high‐performers and a group of low‐performers. The major similarities and differences in managing the innovation process between these two groups are described.FindingsBased on this study it is concluded that FM organizations innovate only mildly. The innovation in FM industry is incremental due to the day‐to‐day nature of decision‐making in FM projects and fast changing demands and needs of the client organizations.Research limitations/implicationsFurther research should concentrate on a specific type of innovation projects, where the points of interest would be the routines followed, activities performed and the tools used by the FM teams when carrying out the innovation projects.Originality/valueThis paper provides a different perspective on studying the innovation patterns in FM industry.

Network service organisation: a multiple pilot study

PurposeCentralised workplace and decentralised facilities management organisations combine several interacting functions. Different levels of a network service organisation are presented. The interacting functions are divided into three organisational levels: strategic clients, network integrators, and functional service units. The research paper demonstrates proposals, data collection plans, and relevant lines of questioning for future case studies and network analysis on the basis of the connections discovered in the pilot study environments.Design/methodology/approachStrategic, operational, and functional connections are analysed by studying formal and informal links between the managers responsible for various functions. The research was conducted with four pilot cases divided into four types of business units: a corporate headquarters (a financial services group); a large business unit/subsidiary (a telecommunications service provider); a medium business unit in the area of property management (a real estate investment company); and a small business unit (a technology park). The pilot cases function as a laboratory for the authors future case studies.FindingsThe article provides information how formal connections such as cross‐functional teams, task forces, and liaison roles create stronger ties between strategic planning and operational service delivery. The pilot study implies that without formal connections the functions of the network service organisation faces barriers to both vertical and horizontal interaction.Research limitations/implicationsRegardless of the popularity of the network analysis method, the conducted pilot cases and the found connections did not explain the whole value of centralised planning and strategic interaction between different workplace and service functions.Originality/valueThe network analysis takes place in a new facilities management environment. The article argues on a general level that post‐modernistic organisations, such as network, boundaryless, temporary, hybrid and virtual organisations, that are fragmented and managed informally can benefit from formal control mechanisms and meetings.

Achieving best value in private finance initiative project procurement

The wherewithal of achieving best value in private finance initiative (PFI) projects and the associated problems therein are documented. In the UK, PFI has offered a solution to the problem of securing necessary investment at a time of severe public expenditure restraint. In PFI schemes, the public sector clients must secure value for money, while the private sector service providers must genuinely assume responsibility for project risks. A broad‐based investigation into PFI risk management informs the discussion in this paper. It is based on 68 interviews with PFI participants and a case study of eight PFI projects. The research participants comprised of contractors, financial institutions, public sector clients, consultants and facilities management organizations. The qualitative software Atlas.ti was used to analyse the textual data generated. The analysis showed that the achievement of best value requirements through PFI should hinge on: detailed risk analysis and appropriate risk allocation, drive for faster project completion, curtailment in project cost escalation, encouragement of innovation in project development, and maintenance cost being adequately accounted for. Factors that continue to challenge the achievement of best value are: high cost of the PFI procurement process, lengthy and complex negotiations, difficulty in specifying the quality of service, pricing of facility management services, potential conflicts of interests among those involved in the procurement, and the public sector clients' inability to manage consultants.

Tracing workplace knowledge in ‘network service organisations’

Centralised workplace and decentralised facilities management organisations combine several interacting functions. The purpose of this paper is to examine the workplace service environment from a ‘network organisation’ perspective comprising workplace knowledge‐holder roles that have both formal and informal connections. This paper proposes that the core business customers, in‐house and outsourced service providers, and the contract managers have a similar need to interact and learn from each other and presents a framework for ‘network service organisations’ to describe their changing collaborative roles. First, the customer interfaces of workplace networks are identified. Secondly, a theoretical framework for a network service organisation is presented, followed by a section on creating centres of excellence for workplace knowledge. Thirdly, a generic governance model for network collaboration is introduced. The aim of the paper is to increase knowledge about understanding and managing network relations in the new workplace environment. The paper ends with a discussion on limitations to formal cooperation and the need for further research on informal relationships within these networks.

What makes for effective organisational architecture in corporate real estate? Going beyond reporting structure and sourcing decisions to considering strategic design issues

What makes for effective corporate real estate and facilities management (CRE/FM) organisations? Beyond reporting structure and sourcing decisions, the CRE/FM organisation must consider the relationship of four strategic design issues: (1) Relevance to the enterprise, (2) Process and measurement, (3) Knowledge and information, and (4) Credibility and accountability. This paper provides an overview of these key issues, which must be considered in designing organisations responsible for corporate real estate and facilities management.

Performance measurement in facililities management and its relationships with management theory and motivation

The application of performance measurement procedures can provide major benefits to organisations. The broad performance measurement need for management applies in a facilities management (FM) context when FM is considered as a subset of general management. To this can be added need which is applicable more narrowly to FM. This paper presents a case for the need for and benefits of performance measurement systems in FM environments. It is discussed together with relevant trends in the performance measurement literature which identify key opportunities in this area. It further discusses the increasing trend towards performance measurement in FM organisations and illustrates the different ways in which authors perceive the relationship between FM and performance measurement. Both motivational and organisational variables are considered and an attempt is made to identify relationships between these issues and performance measurement in FM.

Process improvement in facilities management: the SPICE approach

Considers the application of structured process improvement for construction environments (SPICE) as a process improvement technique and its extension into the context of facilities management (FM). SPICE is a research project that developed a step‐wise process improvement framework for the construction environment, utilising experience from the software industry, and in particular the capability maturity model (CMM), which has resulted in significant productivity improvements. Introduces the SPICE concept, a conceptual framework assessing the construction process capability. Commences by reviewing processes and their FM applicability and work on process improvement assessment in construction environments using the SPICE framework. Then discusses generalised principles of SPICE for process assessment. Considers its application and extension into the context of FM. Examines the specific example of FM process improvement and finally its implications. Furthermore, examines the relevance and accuracy of the framework, as well as its value to the FM organisation.

Moving from performance measurement to performance management

In order for a facilities management (FM) organisation to make effective use of the results of performance measurement it must be able to make the transition from measurement to management. It must also be able to anticipate needed changes in the strategic direction of the organisation and have a methodology in place for effecting strategic change. Successful accomplishment of these two tasks represents the foundation of good performance management. This paper explores baselines for moving from performance measurement to performance management and provides a discussion of how the FM performance assessment can be used to manage the FM function effectively.

The strategic implications of e‐commerce for the design and construction industry

In this paper we discuss the impact of e‐commerce on the design and construction industry, with specific reference to how information technology will affect competition and competitive advantage in the industry. This paper continues the exploration of a concept that we have been working on for several years, namely ‘…that information technology is evolving from a tool that incrementally improves “back‐office” productivity to an essential component of strategic positioning that may alter the basic economics, organizational structure and operational practices of facility management organizations and their interactions with service providers (architects, engineers and constructors)’ (Johnson & Clayton, Automation in Construction, 8, 1998, 3). We first review industry trends and then develop a generalized model for thinking about strategy and e‐commerce based on our previous research as well as the well‐known framework developed by Michael Porter. Next we apply this framework to the discussion of several case studies and draw preliminary conclusions about the viability of the model for future research.

Case study methodology as a means of theory building: performance measurement in facilities management organisations

Uses a research study (involving case study analysis of performance measurement in facilities management organisations) to describes the process of theory building. From this study it draws out lessons about research strategies – from specifying the research questions to reaching closure – and about the strengths and weaknesses of case study method as a research tool.

The impact of tactical and strategic FM automation

This paper promotes an overview of facilities management (FM) and the impact of information technology (IT). It opens with a definition of FM automation and a brief history of the generations of development. This is followed by key demand impacts which have both enabled and stimulated the growth of FM automation during the past and into the future. Specific attention is then given to the tactical and strategic impacts of the technology affecting the organisation within the emerging and complex business environment. Some examples are cited together with the effects of discontinuous change and the resistance to such change. Finally, a brief look at the impact of system selection is also included to assist FM organisations in their determination of automation needs within the paradigms of change, complexity and dependence.

The impact of information technology in design and construction: the owner's perspective

This paper reports on findings of a November 1996 exploratory survey of architecture–engineering clients (Fortune 500 corporate facility managers). This research investigated how the practices of corporate facility managers are being influenced by rapid changes in information technology. The conceptual model that served as a guide for this research hypothesized that information technology acts as both an enabler (that is, information technology provides an effective mechanism for managers to implement desired changes), as well as a source of innovation (that is, new information technology innovations create new facility management opportunities). The underlying assumption of this research is that information technology is evolving from a tool that incrementally improves `back-office' productivity to an essential component of strategic positioning that may alter the basic economics, organizational structure and operational practices of facility management organizations and their interactions with service providers (architects, engineers, and constructors). The paper concludes with a discussion of researchable issues.