The major themes of FM & Technology and FM & Changing Demographics dominated thought-provoking presentations at FM’00: The Changing Face of FM. This marked the 17th annual conference of the International Society of Facilities Executives (ISFE), held in Cambridge, Massachusetts, this past April.
Technology. In his speech on “Web-enabled Facilities Management,” Ernest Schirmer, Director of IT Infrastructure Consulting at CUH2A, outlined advantages and challenges (including costs) presented by both Internet and Intranet technologies. The Intelligent Integrated Building Systems that he sees coming down the pike are shared pathways, spaces, and technology facilities; common enterprise backbone for telephone, video, data, multimedia, and other systems; use of Virtual LANs; and the ability to accommodate Ethernet Arcnet, LonWorks, and BACnet.
E-commerce will affect every organization, said Michele J. Flynn, Principal at Expense Management Solutions, in her presentation, “The Impact of E-Commerce on Corporate Real Estate.” She pointed out that the Web is driving companies to radically change the way business in done. It requires businesses to rethink their business processes, examine their product/services distribution methods, consider new channels for sales activities, manage customer relations differently, and redefine their revenue streams. The resulting business changes will affect corporate space. It will demand modification of infrastructure requirements, volume and type of space required, use and cost of space, and speed of service required to deliver the space. As a result, Flynn explained, there will be several impacts on corporate real estate. There will be an increase demand for bandwidth, flexible uninterruptible power, network route diversity, flexible hours and services, 24-hour-a-day/seven-day-a-week security, flexible building rules and regulations, community spaces, and food and concierge services.
Outsourcing. The Internet will change the face of outsourcing, said Norman B. Thurow, VP for Business & Technology Integration at Johnson Controls Integrated Facility Management. In his talk, Integrated FM in an Integrated World,” Thurow outlined the advantages that the Web offers: relationship management, operational excellence, knowledge management, common infrastructure, and market making. The four parts of the process, which continuously cycle into each other, are Plan (identifying objectives, creating programs, assigning resources), Collect (collecting information, relating to structures, entering into database), Analyze (running data reports, analyzing performance gaps), and Adapt (verifying opportunities, creating improvement plan, and executing the revised plan).
Industrial Workspace & Cyberspace. In his talk titled, “Bricks & Clicks: Industrial Workspace & Cyberspace,” H. Lee Hales, President of Richard Muther & Associates, looked at the impact of technology on manufacturing and warehousing. He pointed out the characteristics of lean industrial facilities: from very little to no inventory and more space devoted to processing to same day/next day processing and delivery and zero lead time; from more docks on more sides to easily and often reconfigured or rearranged space; from machinery on casters to quick overhead utility connections; from cellular layout focused on products and customers to office people co-located within the plant with those whom they serve.
Demographics. As world and U.S. demographics shift, so does the workplace, and organizations must be prepared to handle these demographic changes, said Christine Barber, Director of Workplace Research at Knoll, Inc. In her talk, “The 21st Century Workplace,” she outlined three significant demographic shifts that are expected to dramatically influence the workplace of the 21st Century.
- There will be more women in the workforce who will be well-educated and high-earning professionals and are likely to demand greater flexibility in the workplace, especially in terms of working hours. They will want a “nice” workspace and want aspects of “home” integrated into the office environment, such as child care, fitness centers, and errand services.
- The workforce will be more ethnically and racially diverse. Currently, approximately 72% of the U.S. population is Caucasian. By 2020, that figure is expected to drop to 64%; by 2040, the percentage of white Americans is expected to be 53%. The biggest gains will be within the Latino community, which will grow from 11% (in 2000) to 16% (in 2020) to 25% (in 2040). Asian Americans and African Americans will make more modest gains in population, and Native Americans are expected to remain at a stable 1% of the U.S. population.
- As productive lifespans increase, we can anticipate seeing more older Americans in the workforce. The 65+ age group will double from 35 million in 2000 to 70 million in 2030. Eighty percent of baby boomers plan to “work” during “retirement.” As a result, explained Barber, there will be more telecommuting and more emphasis on personal freedom and control. Employees will feel less loyalty to specific employers, and the workplace itself will become increasing relevant to employee retention. Barber found that slightly more than half of the employees planning to leave their current employer are satisfied with the physical work condition—compared to 75% of employees planning to remain. Indeed, several factors will have the greatest effect on worker productivity and satisfaction: technology, storage space, climate control, quiet space, and space that can be personalized.
The future FM. Stephen Bell, Senior Vice President of Fidelity Corporate Real Estate, also sees business changes in his talk “Tomorrow’s Work Environment and the Future Facility Manager.” Workplace changes he sees are movement away from the gray box to agile workspace, more choice and employee control, mass customization, and a “smarter” work environment. Becoming increasingly common are such alternative workplace strategies as hoteling, free address, home-based work, telecenters/satellite offices, and virtual offices. He sees telecommuting quickly growing from the current 5% of workers to 13% by the end of this year (2000). Nearly all companies (95% of those polled) currently outsource some real estate functions. Bell proposed that the competencies of tomorrow’s manager of infrastructure will be: technology, research, information systems management, business strategy, marketing, and leadership.
Based on a report from the ISFE Executive Update June 2000
