Core Competencies for Federal Facilities Asset Management Through 2020: An Overview

DOE Real Property WorkshopJune 13, 2011

Jim Whittaker

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Annual Investments in Federal Facilities

$20+ billion for new and renovation

$20+ billion to maintain/operate

$4.5 billion on utilities (2001)

$500 million for water/sewer (2000)

Over 50% are more than 50 years old

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The Challenges or “Realities”

Budgets are shrinking Increasing costs of operations and

maintenance World demanding sustainable facilities Changing priorities Changing workforce

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The NRC Studies (Trilogy)

Stewardship of Federal Facilities (1998) Not been good stewards Cannot continue to ignore consequences

Outsourcing for Acquisition (2000) Identified core competencies to decide

and oversee outsourced functions

Investments in Federal Facilities (2004) No single solution from the private sector Some practices may be suitable

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The Next Step – Core CompetenciesCommittee

David Nash (Chair) – Dave Nash & Assoc. Bill Badger – Arizona State University Jennifer Compagni – Compagni Assoc. Dennis Dunne – dddunne & associates Martin Fischer – Stanford University Mike Garvin – Virginia Tech Alex Lam – CoreNet Global Karlene Roberts – UC, Berkeley David Rosenbloom – American University Richard Tucker – University of Texas Jim Whittaker – Facility Engineering Assoc. Norbert Young – McGraw-Hill Lynda Stanley (Director) – NRC BICE Kevin Lewis – NRC BICE

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The Next Step – Core Competencies

Challenge Retiring workforce Finding the next generation Technology impact

Opportunity Redefine the core competencies in

Facilities Asset Management

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FACILITIES MANAGEMENT FUNCTIONS

INNOVATING

INTEGRATING

ALIGNING

OperationsMaintenance of Multiple Facilities

ConstructionCoordination

Utility Management

Operations andMaintenance of

Multiple Facilities

Project Mgmt.

ConstructionManagement

Energy Mgmt.

Space PlanningMove Mgmt.

Business Support

Operations andMaintenance of Multiple Facilities

Capital Program and Project

Management

EnergyManagement

Strategic PlanningAnd Portfolio Management

Corporate Real Estate Finance

StrategicOutsourcingEVOLUTION OF FACILITIES MANAGEMENT FUNCTION OVER TIME

ESSENTIAL AREAS OF EXPERTISE

Operations and Maintenance of One or a Few

Buildings

FM Evolution

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The Task

Help ensure effective asset management

Strategies for transformation Identify required capabilities and skills Performance measures

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ChangingStrategic Missions

Budgetary Pressures

Technology Advances

Aging Workforce

SustainableDevelopment

Government Agencies

Geopolitical andSocioeconomic Trends

Forces Affecting Federal Facilities Asset Management

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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integrating aligning innovating

BusinessTechnical

Enterprise KnowledgeBehavioral

CONTINUOUS IMPROVEMENT

LIFECYCLEMANAGEMENT

STRATEGICDECISION MAKING

OWNER

Governing Approach

Core Competencies

Skills Base

Governing Mindset

Governing Behavior

Essential areas of expertise

Framework for Effective Facilities Asset Management

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The Essential Areas of Expertise

Integrating people, process, places, and technology for lifecycle mgmt.

Aligning facilities portfolio with mission and resources

Innovating to address changing requirements and opportunities

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Skillsand

Capabilities

TECHNICAL

BUSINESS BEHAVIORAL

ENTERPRISEKNOWLEDGE

Identifying Core Competencies

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Operations & MaintenancePlanning & DesignBuilding SystemsProject ManagementConstructionCode ComplianceCost EstimatingSpace PlanningEnv. Health and SafetyEnergy ManagementFM TechnologySustainabilityLife-Cycle AnalysesCommissioningSecurity

Functions and Skills

Technical

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Strategic PlanningFinance and AccountingFunding StrategiesContracting/ProcurementReal EstateAcquisition and LeasingBusiness LexiconRisk ManagementContingency PlanningEthics / LawMarketingHuman ResourcesProfessional Development

Functions and Skills

Business

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LeadershipTeamworkMentoringCoachingInterpersonal RelationshipsCommunicationChange ManagementQuality and InnovationFuture Issues/TrendsPerformance Measurement

Functions and Skills

Behavioral

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MissionVisionValuesCulture / Trust SystemProcessesOrganization SettingResource Allocation

Functions and Skills

EnterpriseKnowledge

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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Identify Required Skills and Functions Gap Analysis

Baseline current skills/capabilities Unique to organizational mission Identify current & future requirements Conduct gap analysis Reorganize to accommodate

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Integrating Aligning

Innovating

IDENTIFY FUNCTIONS

Identifying Core Competencies

ASSESSORGANIZATION

EVALUATEINDIVIDUALS

CLOSE SKILL GAPS

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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Develop Strategy for Transformation

Organizational leadership Strategy for workforce development Sustained investment Measure progress

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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Overcome the Barriers to Recruiting

Revise job descriptions Adequate compensation to attract the

best candidates Strategy to recruit recent graduates

and private sector staff Recruit the core competencies of the

future

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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Expand Knowledge Transfer

Training and education Benchmarking best practices Professional society involvement Certification programs Research

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What the Research ShowsLiterature Review

Move from operational to strategic Staffed by knowledge workers Assimilate business, people, processes,

and property knowledge

Common theme – “Facilities asset management is evolving as a business management discipline and will not remain rooted in operational and cost-centric issues.”

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What the Research ShowsAcademia

Degree Programs Certificate Programs Future

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What the Research Shows

Industry Associations International Facility Management Association (IFMA) Association of Higher Education Facility Officers (APPA) Federal Facilities Council (FFC) Building Owners and Managers Association (BOMA) Institute of Real Estate Management (IREM) Association of Facility Engineers (AFE) British Institute of Facilities Management (BIFM) The Royal Institute of Chartered Surveyors (RICS) Facility Management Association of Australia (FMAA) American Society of Civil Engineers (ASCE) Society of American Military Engineers (SAME)

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What the Research Shows

Industry Associations/Credentials

RPA, FMA, SMA, SMT

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What the Research ShowsFederal Agencies – An Ideal FM…

Financial perspective Budgeting skills Leadership abilities Decision-making capability Customer focused Communication skills Technical background Real estate knowledge Technology savvy Project management skills

Business & Finance ”Leadership/Strategy. ” ”Quality & Innovation CommunicationO&M / H&EF / Sustain.Real EstateTechnologyProject Management

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Study Recommendations

1. Operate w/in Effective Framework

2. Identify Required Skills and Functions

3. Conduct Skills Gap Analysis

4. Develop Strategy for Transformation

5. Overcome the Barriers to Recruiting

6. Expand Knowledge Transfer

7. Scorecard - Measure Progress

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Measure Progress

Balanced ScorecardFinancialProcessCustomerLearning and Growth

Measures should be an outgrowth of gap analysis

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Questions?

Thank YouJim Whittaker

whittaker@feapc.com