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Reseearch Papers P Advancingg know wledge iin FM PRO OMOTING IN NNOV VATION IN FM F

Marcch 2014

www w.eurofm fm.org www w.euroofm.org g

ISB BN/EAN ISS SN ISB BN/EAN

978-94-906 694-06-7 2211-4467 7.67

978-94-906 694-02-9

Research Papers Advancing knowledge in Facilities Management:

PROMOTING INNOVATION IN FM

ISBN/EAN

978-94-90694-06-7

ISSN

2211-4467.67

Editor: Professor Keith Alexander, CFM, Manchester, UK

Copyright © EuroFM March 2014

Published by the European Facility Management Network (EuroFM) ISBN: 978-94-90694-06-7 ISSN: 2211-4467.67 DOI: 10.14606/ (pdf: available at www.eurofm.org and http://www.efmc-conference.com) EuroFM Publications Gooimeer 4 1411 DC Naarden The Netherlands Telephone: +31 35 694 27 85 Email: [email protected] www.eurofm.org

All reasonable care and attention has been taken in compiling this publication. The author and the publishers regret that they cannot assume responsibility for any error or omission contained herein. All rights reserved. This publication may not be reproduced, re-used, repurposed, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of the publishers.

A EuroFM Publication

EUROFM RESEARCH PAPERS Advancing knowledge in FM

PROMOTING INNOVATION IN FM March 2014

Organising Committee Prof Keith Alexander (Chair) Prof Michael May

CFM, Manchester HTW University of Appl. Sciences, Berlin

UK Germany

Centre for Facilities Management CFM Realdania, DTU Wageningen University CFM Realdania, DTU Zurich University of Applied Sciences

UK Denmark Netherlands Denmark Switzerland

University of Applied Sciences Muenster Oslo & Akershus Univ Coll of App Sci NTNU, Trondheim IST, TU Lisbon Saxion University of Applied Sciences University of Greenwich NTNU, Trondheim Karlsruhe Institute of Technology Chalmers University, Gothenburg University of Bolton Aalto University, Helsinki Delft University of Technology Liverpool John Moores University Zurich University of Applied Sciences

Germany Norway Norway Portugal Netherlands UK Norway Germany Sweden UK Finland Netherlands UK Switzerland

Chalmers University, Gothenburg NTNU, Trondheim Sheffield Hallam University

Sweden Norway UK

Scientific Committee Prof Keith Alexander Prof Per Anker Jensen Prof Mark Mobach Dr Susanne Nielsen Prof Lukas Windlinger

Review Panel Prof Torben Bernhold Dr Knut Boge Prof Siri Hunnes Blakstad Dr Inês Flores-Colen Dr Brenda Groen Prof Keith Jones Assoc Prof Antje Junghans Prof Kunibert Lennerts Assoc Prof Göran Lindahl Dr Margaret-Mary Nelson Dr Suvi Nenonen Dr Theo Van Der Voordt Dr Matt Tucker Prof Thomas Wehrmüller

Moderators Prof Jan Brochner Prof Tore Haugen Prof Ilfryn Price

CONTENTS Foreword Ron van de Weerd and Keith Alexander Welcome to the HTW Berlin Michael May Introduction Promoting innovation in FM Keith Alexander

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Section 1: Facilities Management Innovation Introduction Mark Mobach

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Layout mechanisms that stimulate innovative behaviour of employees Rianne Appel-Meulenbroek, Bauke de Vries and Mathieu Weggeman Facilities Management soft service innovations – “Little bets” as risk reducing strategy Knut Boge Towards an effective workspace design by end-users’ emancipation Herman Kok, Mark Mobach and Onno Omta Section 2: Added value of FM Introduction Per Anker Jensen Adding Value by FM: an exploration of management practice in the Netherlands and Denmark Theo van der Voordt and Per Anker Jensen Exploration of added value concepts in facilities management practice: Learning from financial institutes Feike Bergsma, Brenda Groen and Doranne Gerritse Identity and image of FM: Two sides of a coin to promote value of FM Daniel von Felten, Manuel Böhm, Christian Coenen and Gregory Meier Section 3: Sustainability in FM Introduction Susanne Balslev Nielsen Introducing the MINDER research project: Daily energy-efficiency reliability Thomas Berker, Helen Jøsok Gansmo and Antje Junghans The energy management equation Stefan Jäschke and Markus Hubbuch Sustainable retrofitting of Nordic university campuses Robert Eriksson, Suvi Nenonen, Göran Lindahl, Antje Junghans and Susanne Balslev Nielsen Section 4: Managing people and organisations Introduction Matthew Tucker Capturing meal experience in nursing homes - an exploratory study Hester van Sprang, Ruth Pijls-Hoekstra and Geertje Tonnaer Workspace 2020 – club, hub and co-work space: Business models for optimal FM support for office workers in the future Arrien Termaat, Hester van Sprang and Brenda Groen Contribution of facility management to hospital(ity) issues Brenda Groen

5 18 30

40

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52 64

73

75 83 92

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117 129

Section 5: Managing infrastructure and space Introduction Antje Junghans

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Selection of Key Performance Indicators for engineering facilities in commercial buildings: A Focus Group study in Hong Kong Chun Sing Man and Joseph Hung Kit Lai Maintenance expenditures of technical building facilities in the public sector Jens Helge Bossmann, Carolin Bahr and Kunibert Lennerts Evidence-based design in learning environments: A practical framework for project briefing Matti Sivunen, Jere Viljanen, Suvi Nenonen and Juho-Kusti Kajander

152

Section 6: Relationship management in Facilities Management Introduction Keith Alexander

174

Discovering the Relationship Lifecycle in FM: Phases and drivers of Client Value Perceptions Christian Coenen and Paul Nwanna Relationship value and relationship quality in FM-Customers' perspective Ying Ying Cui The Path to Excellence: Integrating customer satisfaction in productivity measurement in Facility Management Arno Meerman, Vanessa Lellek and David Serbin Section 7: Facilities Information Management Systems Introduction Torben Bernhold Sustainable Facilities Management through Building Information Modelling Giulia Carbonari and Keith Jones Usage of Geographic Information Systems (GIS) and Building Information Models (BIM) in Facility Management at Botanischer Garten Berlin Markus Krämer and Benjamin Peris FM knowledge modelling and management by means of context awareness and Augmented Reality Janek Götze, Daniel Ellmer, Philipp Salzmann, Christian-Andreas Schumann, Egon Müller and Michael May

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162

177 191

201

212

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EUROFM RESEARCH WORKSHOPS Research workshops Keith Alexander

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Section 8: Advancing knowledge in Facilities Management Introduction Keith Alexander

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Knowledge Map of Facilities Management Suvi Nenonen, Göran Lindahl and Per Anker Jensen Analysis of FM research subjects: A quantitative investigation of academic facility management publications between 2006 and 2012 Christian Coenen and Viola Läuppi Competencies for multi-, inter- and transdisciplinary research in Facilities Management research Suvi Nenonen and Goran Lindahl

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Section 9: Higher Education Facilities Introduction Mark Mobach Academic Identities and Spatial Narratives Kaisa Airo Designing a multi-purpose office through Learning by Developing Pauliina Nurkka and Marjo Pääskyvuori Reporting sustainability in Facility Management Andrea Pelzeter Section 10: FM Research World Introduction Per Anker Jensen Strategic FM procurement: An issue of aligning services to business needs Akarapong Katchamart and Danny Shiem-Shen Then Post Occupancy Evaluation for improving of main dormitories (Choeng Doi) Tanut Waroonkun and Supuck Prugsiganont Facility Management in West- and Eastern Europe Alex Redlein and Michael Zobl Section 11: Research in Progress Introduction Keith Alexander

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282 295 306

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318 329 339

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Safety and Security matters in FM Daniel Haas and Stefan Jäschke Facilities Management approach for achieving sustainability in commercial buildings in Nigeria Olayinka Olaniyi, Andrew Smith, Champika Liyanage and Akintola Akintoye Facilities planning promoting efficient space use at hospital buildings Emma Zijlstra, Mark P. Mobach, Cees P. van der Schans and Mariët Hagedoorn

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361

Appendix EuroFM Green Paper: FM Innovation Mark Mobach, Herman Kok, Jennifer Konkol, Guilia Nardelli and Keith Alexander

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366

FORE EWORD This yeaar’s theme - ‘Promoting innovation i inn FM’ - refleects one of th he major chaallenges for Facilities F Managem ment in Euroope, as well as providingg an importaant opportunity for positiioning the prrofession and induustry. The reesponse to th his challengee will underrpin recovery y from the llong downtu urn in the global economy andd the continuiing financiall crisis. All fu unctions in all a kinds of oorganisation are a being encouragged to find innovative i solutions in tthe post-receession enviro onment for bbusiness. Once again, the time has come foor FM to takee the opportuunity and risee to the challlenge. hat is being carried out bby researcheers across The pappers presented in this volume, reflectss the work th Europe, usually in collaboration n with partnners in FM practice, to address som me of the keey issues emerginng in the fielld. The papeers are organnised into th he main them mes of the ccall, includin ng added value, F FM innovatioon and sustaainability in FM, and rep present the further f contrributions to the three workingg groups. FM M innovation n is the main theme of EF FMC and the research woorkshop, orgaanised by the RNG G working grroup, is a leading contribuution to the whole w event.. Once aggain this yearr, the numbeer of abstraccts and paperrs submitted to the Reseaarch Symposium has increaseed, reinforcinng EuroFM’ss position as a leading org ganisation fo or the presenntation and diiscussion of cuttinng edge reseaarch to a glo obal audiencee. For the firrst time, research workshhops, hosted by HTW Universiity, have beeen organised d to providee a broader opportunity for academi mics and posttgraduate studentss to participatte. EuroFM M continue to strive for world-class staandards of reesearch qualiity and is inddebted for thee support of an innternationallyy recognised d team of sccientific reviewers. EuroFM aims too be the auth horitative voice foor FM knowlledge in Eurrope, and to make this openly accesssible for appplication in education e and pracctice. We thannk all of the reviewers r an nd organiserss of this, the 13th EuroFM M Research Symposium m for their tremenddous effort annd wish you all a successsful gathering g.

Ron vann de Weerd Chairmaan EuroFM

Prof Keitth Alexanderr Conveno or EuroFM R Research Netw work

WELC COME TO THE HTW H BER RLIN This yeaar the Germaan Facility Management M A Association (GEFMA) acts a as nationnal host of th he annual Europeaan Facility Management M t Conferencce (EFMC). An important part of the EFCM M are the contribuutions from the field off FM researrch, which are a presented during thee EuroFM Research R Workshoops and the EuroFM E Ressearch Sympoosium. The Hoochschule füür Technik und u Wirtsch aft (HTW) Berlin is th he host of tthis year’s Research R Workshoops. With a student body y of more thhan 13,000, the t HTW is the t largest U University off Applied Sciencess in Berlin. With aroun nd 70 Bacheelor’s and Master’s M courrses in Engiineering, Economics, Informattion Technology, Culture and Designn, we provid de a remarkaable range off qualificatio ons. Both compactt and practicce-orientated d, our degreee courses can be supplem mented by iinstruction in n foreign languagees and key skills. s Univeersity rankinggs have conssistently estaablished us aas one of thee leading providerrs of a modeern and proffessional eduucation. Enjoying an ex xcellent acaddemic reputaation, the HTW Beerlin has receeived many prizes p for exxceptional inn novation in the t universityy sector. Study, tteaching andd research att the HTW B Berlin are peerformed at two locationns: the Treskowallee campus in Karlshorrst and the Wilhelminennhof campus in Oberschöneweide, where the Research R h a long and a rich traddition as a centre c of Workshoops take plaace. The Wiilhelminenhoof campus has industriaal innovationn. Located in Berlin's S outh-East, itt played hosst to two fam mous compaanies, the Allgemeeine Elektriziitäts-Gesellschaft (AEG)) and the Kab belwerke Oberspree (KW WO). Among many other topics t the HT TW focuses on real estate-oriented sttudy program mmes, such as a    

Real Estate Management M t, Building Ennergy and Bu uilding Inform mation Techn nology, Constructionn and Real Estate E Managgement and Facility Mannagement.

Starting as early as 1995 the firsst FM prograamme in Gerrmany was established e aas a major in n Applied Computter Sciences. In 2004 a full fu FM Bachhelor’s and Master’s M deg gree program mme followed d, so that we celebbrate in 20114 not only 20 years off HTW but also 10 yeaars of the FM M programm mes. FM studentss are involvedd not only in n education aand training but b also in research projeects. Some off the FM reseearch areas we w cover are::       

FM and IT (CAFM/IWM ( MS, GIS, BIM M, IT integraation), FM and Auggmented Reaality, FM knowleddge transfer technologies t s, Game-basedd learning, Benchmarkiing, Strategic spaace managem ment and opttimization, Sustainabilitty.

Welcom me to all partticipants of the t Researchh Workshops and Symposium and tthank you to o all who contribuute to this impportant FM event. e

Prof. Drr. habil. Michhael May HTW Beerlin

13th EuroFM Research Symposium

EFMC 2014

Introduction EuroFM Research Papers PROMOTING INNOVATION IN FACILITIES MANAGEMENT Prof Keith Alexander Chairman, EuroFM Research Network Centre for Facilities Management, Manchester, UK As convenor of the research network, it is a privilege to lead the EuroFM research community and to encourage its contribution to developing new knowledge in this increasingly important area. Ensuring the future of facilities management as a profession and as an industry and creating an enduring legacy for the next generation is a truly worthwhile endeavour. Once again, the general call for papers reminded us that FM is not just support services representing necessary cost to organizations. FM can provide essential benefits and positive impacts of importance for both for the primary activities of organizations, for all stakeholders and for society. It is rewarding to work with a network of researchers and practitioners who believe that FM can make a difference to people’s lives and to the success of private, civil and social enterprise. As European economies begin to emerge from a very difficult economic, social and environmental climate, new challenges and opportunities await and demand new insights and fresh thinking. FM innovation is the focus of the 13th EuroFM research symposium and this volume, contains a diverse set of research papers which address a broad spectrum of issues. EuroFM’s newly formed working group on FM Innovation has an interest in the innovation of services and spaces, as we well as in the managerial and organisational contexts that stimulate innovation for the client organisation. The group has identified the current state of knowledge and understanding and has laid out an agenda for research effort in this area. In all thirty three original papers have been selected for publication, representing new knowledge, relevant to the focal issues identified in the call for papers. The papers for the research symposium are organised in the themes that underpinned the call for papers. As such the papers not only represent contributions to the existing working groups, but stimulate new opportunities for collaboration in advancing knowledge. Once again EuroFM has organised research workshops, this year hosted by HTW University in Berlin. The workshops provide opportunities for academics and postgraduate researchers to present and discuss the theoretical and methodological issues arising from FM research. They also encourage less experienced researchers to discuss their research in a supportive environment. This year we have asked three senior, respected academics, to act as moderators and to provide a commentary on our efforts to advance knowledge in FM. Their views will inform the continuous call for papers, within the three working groups, to address EuroFM’s intention to be an authoritative voice for FM in Europe, achieving world-class standards in scientific enquiry. The research network also recognises the importance of its leading contribution to overall EuroFM objectives to develop knowledge at the interfaces amongst education, practice and research. To this end, the overall programme for EFMC again includes a joint session between practitioners and researchers to discuss and debate the importance of evidence-based practice. Further changes to the format of the Research Symposium are planned for the coming year, as part of a broader open access publishing initiative.

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SECTION ONE: FACILITIES MANAGEMENT INNOVATION

EuroFM WG3 Introduction FM Innovation Mark P. Mobach, Convenor, EuroFM WG3 FM Innovation Hanze UAS Groningen, The Hague UAS, University of Groningen, Wageningen University

Papers EuroFM Green Paper (appendix) Facility Management Innovation Mark Mobach, Herman Kok, Jennifer Konkol and Guilia Nardelli, Layout mechanisms that stimulate innovative behaviour of employees Rianne Appel-Meulenbroek, Bauke de Vries and Mathieu Weggeman. Facilities Management soft service innovations – “Little bets” as risk reducing strategy Knut Boge. Towards an effective workspace design by end-users’ emancipation Herman Kok, Mark Mobach and Onno Omta.

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EuroFM WG3: FM Innovation Introduction FM INNOVATION Mark P. Mobach Hanze UAS Groningen, The Hague UAS, University of Groningen, Wageningen University In addressing and discussing Facility Management Innovation (FMI) many different interpretations of both FM and of innovation can be expected to emerge. What exactly is FM? When may we speak of an innovation? Are small improvements included or not? What exactly do organisations do when they say they are working on FM and innovation? What is the object of innovation? Is it about digitalization? About virtual worlds and about open BIM? Or is it about sending out surveys to assess user satisfaction? What kinds of innovations are meaningful to facility managers? The process of innovation or the outcome of it? Which of these are ground breaking? Do facility managers appreciate innovation differently for a good reason? How does this relate to the context of innovation? For instance, in many European countries facility managers have a technical background or a background in engineering; while at the same time in other countries FM is about management. This may lead to totally different approaches in FM and innovation, but where and how can we connect fruitfully? Can we find accommodations to change and innovate, perhaps even benefit from differences in nationality, line of business, or organisation? These questions and many others will be addressed in the working group FMI. To the FM community it is evident that people and the designs of organisation, infrastructure and space are strongly connected in practice. Each of these design elements can be viewed as an environmental condition that influences the way in which people can function effectively. This observation also implies that organisations may be regarded as an interwoven system of organisation and space. Innovation relates to the unlocking of the synergetic potentials in both organisation and space. For instance, the right R&D spaces can stimulate creativity and innovation, well-considered services and spaces can stimulate patient recovery in hospitals, and the right workplace innovations can support leadership in changing the culture of the organisation. But the scientific evidence remains scarce yet. How exactly are the above designs of services and spaces related? Where do changes emerge if we intervene in the FM system? In making what kinds of combinations? 3


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What combinations proof strongest? Which of these are the most effective? How can we improve the evidence of the above? And perhaps most importantly, how can the research community involve the FM practice community into FM research, and in addition, how can we create slack, a mental free zone in research and practice for ground-breaking experiments? For this reason, the working group FMI has written a green paper to address some of the above questions and stimulate further work in the area of Facility Management Innovation. Moreover, three papers are used as a kick-off for this working group. In the first paper, Appel-Meulenbroek, De Vries and Weggeman will show us that the added value of the workplace for innovation remains hard to be proven empirically. They contend that realistic evaluation of layout mechanisms and the quantitative layout metrics are valid ways in helping FM to prove how it is adding value to the organisation. Boge, in the second paper, illuminates how innovations actually take place in the soft service industry. His study has identified five main mechanisms concerning how FM soft service innovations actually take place in practice. Kok and his colleagues involve us in their quest for an effective workspace design process that satisfies different users of the commonly used work environment in the third paper. They argue that facility managers should operate more closely to the primary process rather than aligning with the Board. I believe that these papers help the FM community to better integrate the topics of management and organisation with spatial topics and will allow us to advance the understanding in our beautiful discipline.

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Layout mechanisms that stimulate innovative behaviour of employees Rianne Appel-Meulenbroek Eindhoven University of Technology, Real Estate Management & Development [email protected] +31(0)40-2472092 Bauke de Vries Eindhoven University of Technology, Design Systems [email protected] Mathieu Weggeman Eindhoven University of Technology, Organization science [email protected] ABSTRACT If an organisation aims at stimulating organisational learning and innovation, FM should align by stimulating innovative behaviour like knowledge sharing. Encouraging employee innovation is the most important FM strategy focusing more on effectiveness of the organisation, besides the general focus on efficiency through reducing costs. But the added value of the workplace for innovation remains hard to be proven empirically. To be able to show added value it is necessary to have suitable quantitative metrics, and discover the underlying mechanisms for evaluating office design, like stressed in Realistic Evaluation theory. This paper describes statistical tests on an R&D based organisation of three different layout mechanisms. We used eight quantitative layout metrics and several knowledge sharing behaviour metrics (obtained with logbooks from 138 employees) to show how added value is achieved. The strong influence of context on the working of the mechanisms makes it hard to generalise results to other organisations. But the findings did prove that different layout mechanisms exist, and that realistic evaluation and the quantitative layout metrics that were distinguished are a valid way to study them inside an organisation. They help FM prove how it is adding value to the organisation. Projecting the results from the case-study on the new layout gave insight in the knowledge sharing that should take place after a planned renovation program would be implemented. This helped the FM to discuss his plans with general management and other stakeholders in his organisation. Keywords Innovative behaviour, Layout mechanisms, Added value, Workplace

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INTRODUCTION

Before, Facility Management (FM) decisions were made with no overall strategy in mind or coordination with other units (Gibler, Black and Moon, 2002). But this is changing, as real estate is getting more attention from general management. Because Corporate real estate (CRE) is a costly resource, they often benchmark it with financial input indicators only. But FM can add value to the organisation with CRE in more ways (Lindholm and Leväinen, 2006), which can be grouped in:  Added exchange value (‘Reducing costs’, ‘Increasing the Value of assets’, ‘Increasing flexibility’).  Added use value (‘Promoting marketing and sales’, ‘Increasing innovation’, ‘Increasing employee satisfaction’, ‘Increasing productivity’). While exchange value lies fully within the expertise field of FM, tuning with other business functions is necessary to deliver use value (e.g. HRM, R&D, marketing). To be able to coordinate with other business functions, FM needs to be at the strategic table, which is too often not the case. A focus on unit costs and building condition rather than overall costs and effectiveness will keep FM from capturing full strategic attention (Price, Ellison and MacDonald 2009). But to prove added value it needs reliable techniques for (pre-occupancy) evaluations of designs or buildings. Evaluation delivers the power to justify decisions to general management. Realistic Evaluation is a theory developed by Pawson and Tilley (1997) that tries to perfect methods of evaluation. It tries to identify mechanisms behind the working of programs (see Figure i). To do that, quantitative metrics of CRE are necessary, to prove correlation with organisational outcome metrics. In the modern world, innovation is key. Although innovation is getting a lot of attention, the working of the mechanisms underlying the added value of CRE for innovation outcome is not clear (Steen and Markhede, 2010). Our literature study did suggest, however, that specifically building design can stimulate innovative behaviour. Especially knowledge sharing behaviour is important for innovative strength of organisations, and thus the focus of this study. The effect of building form and layout on behaviour is hard to measure because they are mostly described with qualitative aspects. With these, FM cannot prove the success of the design to general management. Therefore, the goal of this exploratory research was to develop and test a list of suitable quantitative metrics that can prove through which mechanism(s) layout adds value to knowledge sharing behaviour within a specific context and organisation. This provides FM with a tool to identify possibilities for increased added value within their own organisational context. After a review of existing literature, and development of a conceptual model, the research approach is described. This is followed by our findings, discussion and recommendations.

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Figure i Causation according to Realistic Evaluation.

2 Literature review 2.1 Knowledge sharing behaviour Knowledge sharing (KS) is defined as “the application of knowledge for the benefit of oneself or another person in interaction” (Berends, 2003). There is a common distinction in most knowledge management literature between explicit knowledge (information) and tacit knowledge (experiences, skills, attitude). Our definition complies with the practice-based perspective, which stresses the embeddedness of knowledge in purposeful human activity (Hislop, 2009). It also emphasizes that ICT cannot replace the necessary face-to-face communication for tacit KS (Nenonen, 2005), but can only be used to share explicit knowledge. Many synonyms are used for KS, like collaboration, communication, and integration. But in general, a distinction is made between (brief) interactions and more time-consuming and interdependent collaboration (Kahn, 1996). Most (objectivist) research focuses on the first level, because it is a behaviour that is relatively easy to quantify, measure, and change by management (planned meetings, document exchange). Collaboration has the same interactive behaviour but with more interdependence and combines this with attitudinal aspects, which are harder to measure (they are inside the human mind). Stimulating collaboration therefore remains more of a lacuna. But as it has a more positive influence on innovation than interaction (Kahn, 1996), it deserves more attention. The tacit and explicit knowledge components are not totally inseparable. Similarly, the line between interaction behaviour and collaboration behaviour is not very clear either, because the same communication channels and activities can be used. The difference lies more in the wilfulness of actually wanting to achieve something together (involvement) versus just exchanging information. Interaction and collaboration can be operationalised with categories of KS moves identified through observing researchers in different organisations (Berends, 2003). These moves might also determine the (type of) knowledge that can be shared, based on the involvement during the cooperation between persons. While interactions have been shown to help in sharing explicit knowledge, it is assumed that this might not be enough to share tacit knowledge. Interaction activities are giving descriptions and reporting on explicit information in either an oral or written form. For more tacit KS collaboration it is deemed necessary, to share knowledge through activities involving proposals, evaluations, questions and engaged actions.

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2.2 Layout mechanisms The literature proving a positive influence of layout on any synonym of KS, has been interpreted in a content analysis to identify in more detail the layout mechanisms that might increase interaction and/or collaboration (see Table 1). One local workplace mechanism came forward that stimulates both interaction and collaboration: • Visual/aural accessibility. Working in visually open layouts enhances face-to-face interaction through seeing and overhearing. If people can see others at their workstations, they can collaborate, share tasks and ideas more easily and provide assistance, because they are more aware of other people’s need for help. For the building as a whole, two mechanisms could be identified of which only the first one has been shown to influence both interaction and collaboration: • Centrality. Spaces that are centrally located and have connections to many other places enhance unplanned interaction because of their connection to well-trafficked pathways. Also it is easier (faster) to walk over to colleagues to share knowledge. • Exposure. Layout controls the flows of people on a floor and who get to know each other. Because of exposure, employees sitting close to the flows of movement interact more. Table 1 Literature on layout mechanisms Mechanisms Accessibility InterCollabo Sources action -ration Allen, 1977 X Grajewski, 1992 Becker, Quinn and X X Tennessen, 1995 Covi, Olson and Rocco, 1998 X X Spiliopoulou and Penn, 1999 X Penn, Desyllas and Vaughan, X 1999 Becker and Sims, 2001 X X Rashid et al., 2006 Markhede and Steen, 2006 Markhede and Koch, 2007 X Wineman and Adhya, 2007 Sailer et al., 2007 X X Brown, 2008 Toker and Gray, 2008 Blakstad, Hatling and X X Bygdås, 2009 Steen and Markhede, 2010 Koch and Steen, 2012 X

Centrality Exposure InterCollabo InterCollabo action -ration action -ration X X X X

X

X

X X X X X X no

X X X X

If there is one thing that these layout studies point out, it is that people are more inclined to cooperate when they see each other, whether it is for a long(er) time or when passing by. Others have referred to this as ‘spatial behaviour’, and distinguished between Co-presence (number of active and/or inactive people visible) and Movement (number of people moving along a path) 8


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from a building/spaces point of view (Steen and Markhede, 2010). Co-presence is the more local spatial behaviour. The positive influence of visual/aural accessibility can be assigned to this spatial behaviour. Exposure and centrality within the building relate to the global spatial behaviour called movement. As in this paper the unit of analyses are the employees of an organisation and not the spaces itself, movement was renamed into Position in the building, which regards the movement nearby. Previous studies that identified mechanisms have several shortcomings in their methodologies, and do not compare the strength of all the mechanisms. For data on KS, they often use perceived data from surveys, and/or only communication without taking into account the content of what is shared. The data collected on the layout, are hard to extend to buildings in general, because they only studied certain types of spaces or used longitudinal studies without quantifying the design. It is important, that metrics cannot only describe the layout quantitatively, but are also close to an intuitive understanding of space. Otherwise, non-real estate people, what general management usually is, will not understand it. Therefore, for this study eight such quantitative layout metrics were identified to study the effect of all three mechanisms on the number of KS meetings of individuals (see the conceptual model in figure ii). Next, the association of the metrics with several other descriptors of KS were studied to get more insight in what has happened during the meeting and to distinguish between interaction and collaboration. Figure ii Conceptual model. Co-presence - accessibility Density Location inside the room Visible workplaces Compactness

Position in the building – exposure

Knowledge sharing of individual # of KS meetings

Distance to entrance Size of workplace Openness perimeter - centrality Average walking distance to other workplaces

3 Research approach To obtain the layout metrics, isovist and visibility graph analyses were used. An isovist is defined as “the set of all points visible from a given vantage point in space and with respect to an environment” (Benedikt, 1979) (see Figure iii). When isovists are placed on a regular grid, a 9

13th EurroFM Reseaarch Symposium

EF FMC 2014

visibilityy graph cann be deriveed, which iis a “graphh of mutuallly visible loocations in a spatial layout” (Turner et al., 2001) ((see Figure iv). Isovistss are useful because thhey describee the exact a that suppplies visuaal accessibillity (co-pressence). Visiibility graphhs describe the layout layout area of the flloor as a whhole from thhe viewpointt of exposurre and centrrality. Each nnode can bee seen as a potentiaal place for another perrson. Depthm map softwarre (version 7.12) was used, u becausse it could generatee all metricss, and read A AutoCAD ddrawings. Figure iiii Examplee of isovists at eye-levell from 2 diffferent workkplaces.

To colleect the behaavioural dataa, a logbookk was choseen, because it outperforrms a questionnaire in validity, and sampple surveys in precisionn of measuurement. Beesides persoonal informaation (e.g. days prresent at woork, locatioon of desk),, participannts had to fill f in date, start time, duration, locationn and converrsation partnners for all face-to-facee meetings dduring whicch work relaated issues came upp. As planneed meetingss are less likkely to be a result of thhe physical work enviroonment as unschedduled conversations, thee intentionality of each conversatioon was askeed as well, too filter out the scheeduled meeetings. It alsso containedd questionss on the KS S activities, the initiatoor and the issues aaddressed. L Last, questioons on the ppresence off an alternattive source to acquire tthe shared knowleddge, and invvolvement oof the other person werre taken up,, to test assuumptions onn tacit and explicit knowledgee and differeences betweeen interactiion and colllaboration. A test of thhe logbook showed that the KS S items chosen to studyy the KS prrocess in moore depth w were clear too its users, and thatt there were no major problems fillling in the loogbook. 4 R Results The R& &D buildingg of an industrial researrch organisaation (Océ T Technologiees) was choosen as the subject of this expllorative studdy. It was bbuilt in 19884 and in neeed of a rennovation. Inn total 269 workplace inn the buildinng, of whichh 138 kept a logbook duuring one w week (51% employeees had a w responsee rate). Thiis provided us with a database off 1907 KS meetings. The T buildingg has two floors (ssee Figure vv), and has both large and small rrooms, ranging from sinngle-personn rooms to open areeas with upp to 29 workkplaces. Sm mall lab areaas without ddaylight aree concentratted around the corridors. 10


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Figure iiv A visibiliity graph exxample.

Figure v Layout caase buildingg.

D Data descriiption 4.1 On averrage, participants had 14 KS meeetings this week w with five differeent colleaguues, which were moostly one-onn-one meetiings and toook place at a workplacce (78%) orr in a lab arrea (14%). The halllway and coffee machhine might bbe places w where a lot of o talking taakes place, but not to share w work-relatedd knowledge in the w way that waas studied here. Questions were the most commonn way to shhare knowlledge (56%)), but the other o four K KS activitiees also tookk place (+ 20%). During D a dayy, an averagge of 45 minnutes was sppent in unplaanned KS m meetings, wiith 80% of 11


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the meetings lasting up to 15 minutes. The knowledge that was shared appeared to be very tacit, because it was often (77%) available through one person only. Most meetings were intentional (72%) and concerned a problem (89% of which 44% was a shared problem). Involvement in each other’s problems was generally high (3-5 on a 5-point scale). An AutoCAD drawing with both floors was imported into Depthmap, and a grid of 0,50 x 0,50 meters was placed over the entire layout to generate the metrics. On average, a participant: • had 15 m2/workplace, • saw 7 roommates from behind his/her desk, • sat 8 meters from the entrance, • had a visible room size of 168 m2 and • had an average walking distance of 61 meters to the other workplaces in the building. Participants were spread over the rooms (so some were in the centre, others at the outskirts). The group offices provided their inhabitants with a more compact and smaller work area, than the larger, rectangular, open areas. 63% of the participants was visible from the entrance of the room. As the amount of KS meetings was not spread normal, Spearman's correlation had to be used to test the conceptual model. The five categories of KS activities (descriptions, questions, actions, proposals, evaluations) and other KS indicators (location, intentionality, initiator, alternative source, involvement) were visualised and tested with χ2-tests for possible differences in KS behaviour for certain values of the layout metrics. 4.2 Findings From the three mechanisms identified from literature, only accessibility and centrality had a significant association with the amount of KS meetings for this organisation and this context (see Table 2). Apparently, the exposure mechanism was not triggered at Océ. Looking at the correlations of the metrics used, the strongest ones belong to the accessibility mechanism. However, it appears to include two different groups of metrics. In literature, accessibility is also used sometimes for visibility and sometimes for placement issues. So, it seems better to split accessibility into these two different mechanisms. Visibility of colleagues appeared to have increased the amount of KS meetings the most with a correlation of .355 (see also figure vi). The placement within the room metrics showed that there must be a limit to the visibility mechanism, because an increase in average walking distance to roommates (and decrease in density) lowered the amount of KS meetings (correlation = .181). An optimum room size did not come forward. The centrality metric showed the expected decrease in number of KS meetings with an increase in distance (correlation = .183). A closer look at what happened during the KS meetings, showed more significant influence of the mechanisms for this organisation. Participants with many visible workplaces had significantly more KS meetings at the coffee machine (χ2(12, N=1880) = 23.683, p < .05). More visibility also increased the amount of intentional visits (χ2(1, N=1891) = 7.360, p < .01). And the participants with fewer visible workplaces mentioned more often that another person than the one they met could have provided the same knowledge (χ2(6, N=949) = 14.319, p < .05), which makes the knowledge they shared less tacit. Placement within the room significantly influenced which KS activities were used to share knowledge (χ2(4, N=1379) = 10.972, p < .05). Sitting closer to each other seemed to increase awareness and prompt people to give more descriptions. At a distance, it appears necessary to ask things that might otherwise have been clear by 12


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overhearing/awareness. The participants at the ‘outskirts’ of an area also seemed to have more opportunity there to evaluate or perform actions together. Participants in more dense environments used meeting areas more often; possibly not to disturb the others (χ2(5, N=1758) = 11.412, p < .05). Centrality showed no further differences in KS behaviour. The exposure metrics had no association with the amount of KS meetings, but did show differences in the KS activities that were chosen. Participants visible from the entrance used descriptions and actions significantly more often to share knowledge (χ2(4, 1379) = 16.409, p < .01). Perhaps the visible participants were consulted more for quick needs for a description or to help with an issue, when people entered the room. Table 2 Correlation between layout metrics and amount of KS meetings Mechanism Spearman’s rho correlation Visibility (accessibility) .355**  Visible workplaces -.328**  Compactness Placement within the room (accessibility) .181*  Density .168*  Location inside the room Centrality in the building -.183*  Average walking distance to all workplaces ** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed). 5 Discussion and Recommendations Overall, the association of layout with the number of KS meetings at the case organisation (Océ) was not really strong. The strongest association (.355) is still considered ‘moderately strong’ for Spearman correlations in general. But it does show how FM can add more use value through considering the influence of the layout on this important organisational process. FM is a supportive resource, and it cannot be expected to be responsible on its own for a high variance in the amount of KS. Other context variables (e.g. organisation structure, culture, working on the same project) will be responsible for the largest part of this variance (hence the use of realistic evaluation). But even if only 20% of the variance would be explained, this means that FM can support and improve the primary process of their client organisation significantly, and that is their main task. The methodology used gave FM insight in the relevance of metrics within their organisational context and in the current workplace effectiveness. A face validity test showed the findings to be clear and interesting and Océ could identify with them. Also, they felt that the layout metrics represented their building correctly. They mentioned that KS at Océ does indeed take place similarly as the results from the logbooks showed. Projecting the results from the case-study on the new layout gave insight in the KS that should take place after the renovation program is implemented. The facility manager was happy with this, because it helped him show the added value of the new layout to general management. 13


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Figure vi Visible workplaces and the # of KS meetings. 40

118

30

# of KS meetings

95 48

20 29

24

10

0 0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

It will be necessary to have a relevant list of (layout) metrics for each different added value as mentioned in the introduction, to prove in general how real estate interventions trigger the desired mechanism(s) of an organisation. Each FM department will have to look within their own ‘black box’ and see how layout mechanisms are best implemented to support the specific goals of their client. FM will have to cooperate with other business functions on this, to make sure that the right needs are supported. Results of an internal benchmark with the quantitative metrics explored in this paper can then be discussed in briefs with architects and other external parties. They can also be used to compare alternatives, using the actual layout drawings from an architect. This way the tacit knowledge of architects on how layout influences behaviour can be made explicit and discussed with clients with less knowledge of building design. Some metrics were easy to generate and monitor, while others took considerably more time and effort. Some layout metrics (compactness, centrality) demand an automated approach (Depthmap) because it was too much work to calculate them manually. A downfall of this is that only the programmer knows the computer program by heart, so the users might be stuck with the feeling that they miss the due diligence possibility of manual approaches (Brown, 2008). Océ indicated that they would only use such metrics for buildings with complicated layouts or if they would start regularly monitoring many buildings. This is for each FM team to decide, after they have explored the relevance of metrics and mechanisms for their specific context. Realistic evaluation emphasizes the influence of context on outcome, and how mechanisms might or might not be triggered to produce an outcome. The influence of context on the outcome became clear as not all mechanisms from previous studies were triggered at Océ. So Realistic Evaluation is a good basis for these types of studies that combine spatial mechanisms and effectiveness outcomes. Realistic evaluation allows the combination of different methods of data collection. For this research, the logbooks gave clear data on the questions that were asked, but in retrospect could have been supplemented by a follow up survey. This could have gone deeper into the knowledge gathered from the logbook analyses. 14


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Many recommendations for further research can be distinguished. This study looked at face-toface meetings only. Among CRE practitioners, virtual cooperation still has a very low priority (Gibler, Lindholm and Anderson, 2010). But there are academics that have studied the use of technology for remote collaboration (Covi, Olson and Rocco, 1998), like email, phone and all kind of internet applications. Even some comparisons have been made between face-to-face and distant communication (e.g. Heerwagen et al, 2004). Studies looking at both forms of communication showed that ICT cannot replace the necessary face-to-face communication for KS. It has advantages (more open and democratic), but also disadvantages, for example that people communicating electronically have a hard time imagining what others are feeling (Sproull and Kiesler, 1991). It is not possible to share complex information without the feedback available by the presence of the other person (Allen and Henn, 2007). Studies (Allen and Henn, 2007; Spiliopoulou and Penn, 1999) did find that people mix the media that they use, so people with more face-to-face communication also communicate more through other media. With the rise of innovative ICT tools, the ability to virtually share tacit knowledge should be studied further. Social networks are also very important for collaboration, as they help structure access to knowledge and knowledge transformation (Wineman et al, 2013). The tie formation for these networks is influenced by the layout (Sailer and McCulloh, 2012). But Wineman et al found that spatial measures and social network measures have individual contributions to innovation outcomes. It would be interesting to further study their relative impact and how spatial and social networks can enforce each other. In this organisation, hardly any unplanned meetings took place in designated meeting areas. This does not mean that meeting areas are not relevant in other contexts. The case building only had very standard meeting rooms. To study this mechanism in depth, cases must be sought that deliberately use a range of meeting places to create certain conditions. Then it can be tested whether and how this mechanism works. The activity based office concepts related to the trend of New Ways of Working do have many specifically designed places to incidentally sit down for a short (or longer) chat. It should be studied how all these types of meeting areas influence (KS) behaviour. As activity based offices often have large open areas (too large according to our results), they might show different results for all mechanisms. As these offices are based on nondedicated seats, people can use different types of workplaces during the day. This will influence who they meet, and how they share knowledge with them. Exposure should be studied further as well to understand the mechanism better in more and less open layouts, and in these activity based offices. Perhaps then an optimum room size can someday be determined. REFERENCES Allen, T.J. (1977), Managing the flow of technology, MIT Press, Cambridge, MA. Allen T.J. & Henn G.W. (2007). The organization and architecture of innovation – Managing the flow of technology. Burlington, MA: Butterworth-Heinemann. Becker, F., Quinn, K.L. &Tennessen, C.M. (1995), The ecology of collaborative work, International Workplace Studies Program, Cornell University, Ithaca, NY. Becker, F. & Sims,W. (2001), Offices that work; Balancing communication, flexibility and cost, International Workplace Studies Program, Cornell University, Ithaca, NY. Benedikt, M.L. (1979), “To take hold of space: Isovists and isovist fields”, Environment and Planning B, 6, 47-65. 15


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Berends, J.J. (2003), Knowledge sharing in Industrial Research, Doctoral dissertation, Eindhoven University of Technology, the Netherlands. Blakstad, S.H., Hatling, M. & Bygdås, A.L. (2009), “The knowledge workplace – Searching for data on use of open plan offices”, paper presented at the EFMC conference, June 16-17, Amsterdam, the Netherlands, available at: http://www.metamorfose.ntnu.no/Artikler/EFMC09/PaperEFMC_Blakstad_2009.pdf Brown, M.G. (2008), “Proximity and collaboration: Measuring workplace configuration”, Journal of Corporate Real Estate, 10(1), 5-26. Covi, L.M., Olson, J.S. & Rocco, E. (1998), “A room of your own: What do we learn about support of teamwork from assessing teams in dedicated project rooms?”, Streitz, N. Konomi, S. & Burkhardt, H.J. (Eds.) Cooperative Buildings, Springer-Verlag, Amsterdam, the Netherlands, 53-65. Gibler, K.M., Black, R.T. & Moon, K.P. (2002), “Time, Place, Space, Technology and Corporate Real Estate Strategy”, Journal of Real Estate Research, 24(3), 235-262. Gibler, K., Lindholm, A.-L. & Anderson, M. (2010), Corporate Real Estate Strategy and office occupiers’ preferences. Corenet Global, Atlanta, GA. Grajewski, T.R. (1992), Spatial configurations and interaction patterns within office buildings, Master thesis, University College London, UK. Heerwagen, J.H., Kampschroer, K, Powell, K.M. & Loftness, V. (2004), “Collaborative knowledge work environments”, Building Research & Information, 32(6), 510-528. Hislop, D. (2009), Knowledge management in organizations (2nd ed.), University press, Oxford, UK. Kahn, K.B. (1996), “Interdepartmental integration: A definition with implications for product development performance”, The Journal of Product Innovation Management, 13(2), 137-151. Koch, D. & Steen, J. (2012), “Analysis of strongly programmed workplace environments; Architectural configuration and time-space properties of hospital work”, in Greene, M. Reyes, J. & Castro, A. (Eds.), Proceedings eight Space Syntax Symposium, PUC, Santiago de Chile, 8146:1-16. Lindholm A.-L. & Levaïnen, K.I. (2006), “A framework for identifying and measuring value added by corporate real estate”, Journal of Corporate Real Estate, 8(1), 38-46. Markhede, H. & Koch, D. (2007), “Positioning analysis; Social structures in configurative modeling”, in Kubat, A.S., Ertekin, O, Güney, Y.I. & Eyüboglu, E. (Eds.), Proceedings 6th international Space Syntax Symposium, Istanbul, Turkey, 069;1-14. Markhede, H. & Steen, J. (2006), “Analysing Open Space offices”, in Haugen, T., Moum, A. & Bröchner, J. (Eds.), Proceedings of the CIB W70 symposium, Trondheim, Norway, 533-541. Nenonen, S. (2005), The nature of the workplace for knowledge creation, Doctoral dissertation, Helsinki University of Technology, Finland. Pawson, R. & Tilley, N. (1997), Realistic Evaluation, SAGE publications, London, UK. Penn, A., Desyllas, J. & Vaughan, L. (1999), “The space of innovation: Interaction and communication in the work environment”, Environment and Planning B, 26, 193-218. Price, I., Ellison, I. & MacDonald, R. (2009), “Practical post-modernism: FM and socially constructed realities”, paper presented at the EFMC conference, June 16-17, Amsterdam, the Netherlands, available at: http://shura.shu.ac.uk/912/1/fulltext.pdf. Rashid, M., Kampschroer, K., Wineman, J. & Zimring, C. (2006), “Spatial layout and face-toface interaction in offices – A study of the mechanisms of spatial effects on face-to-face interaction”, Environment and Planning B, 33, 825-844. 16


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Sailer, K., Budgen, A., Lonsdale, N., Turner, A. & Penn, A. (2007), “Effective workplaces: Bridging the gap between architectural research and design practice”, in Kubat, A.S., Ertekin, O, Güney, Y.I. & Eyüboglu, E. (Eds.), Proceedings 6th international Space Syntax Symposium, Istanbul, Turkey, 124;01-06. Sailer, K. & McCulloh, I. (2012). “Social networks and spatial configuration: How office layouts drive social interaction”, Social networks, 34, 47-58. Spiliopoulou, G. & Penn, A. (1999), “Organisations as multi-layered networks: Face to face, email and telephone interaction in the workplace”, in Holanda, F. (Ed.), proceedings 2nd International Space Syntax Symposium, São Paulo, Brasil, A1.1-A1.24. Sproull, L. & Kiesler, S. (1991), Connections; New Ways of Working in the Networked Organization, MIT press, USA. Steen, J. & Markhede, H. (2010), “Spatial and social configurations in offices”, Journal of Space Syntax, 1(1), 121-132. Toker, U. & Gray, D.O. (2008), “ Innovation spaces: Workspace planning and innovation in U.S. university research centers”, Research Policy, 37(2), 309-329. Turner, A., Doxa, M., O’Sullivan, D. & Penn, A. (2001), “From isovists to visibility graphs: A methodology for the analysis of architectural space”, Environment and Planning B, 28, 103-121. Wineman, J. & Adhya, A. (2007), “Enhancing workspace performance”, in Kubat, A.S., Ertekin, O, Güney, Y.I. & Eyüboglu, E. (Eds.), Proceedings 6th international Space Syntax Symposium, Istanbul, Turkey, 066;1-16.

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Facilities Management soft service innovations – “Little bets” as risk reducing strategy Knut Boge Oslo and Akershus University College of Applied Sciences [email protected] Telephone 47-64 84 91 07 ABSTRACT Purpose: Due to outsourcing, third party service providers produce a significant part of Facilities Management (FM) soft services at the clients’ premises. Many FM soft service contracts only last 3 to 5 years. The third party service providers’ operational level employees, turnover rate is often high. The service providers’ business environment is thus often transparent and highly volatile. The third party service providers struggle to keep business secrets and maintain their competitiveness. However, despite these systemic difficulties the FM soft service industry has been very innovative. This paper investigates four research questions: What are the main categories of FM soft service innovations? How do such innovations take place? What are the third party service providers’ yardsticks for innovations? And finally, how do third party service providers handle risks and uncertainties during innovation processes? Design/methodology/approach: This is a qualitative explorative empirical study based on interviews with seven current or former Norwegian FM executives. Findings: Most FM soft service innovations seem to be incremental, and results of dialogues between the third party service providers and their clients. Some FM soft service innovations are results of the service providers’ mergers and acquisitions. The third party service provider’ market research is another source for innovations. The financial and operational upsides are two of the third party service providers’ most important yardsticks for FM soft service innovations, and little bets seem to be one of their preferred strategies for managing risks. Originality/value: Most studies about innovations take place in technology driven industries. There are relatively few studies about innovations in labour intensive “blue collar” industries such as FM soft services. This study provides indications about how and why Norwegian third party service providers innovate.

Keywords Facilities Management, Soft services, Innovation, Norway. 1 INTRODUCTION The innovation literature has traditionally been based on the premise that innovations take place through technological breakthroughs. Such technological breakthroughs often facilitate development of entire new industries (Lamoreaux & Sokoloff, 2007; Freeman & Soete, 1997). Typical examples of this development path are the textile, railroad, chemical, electro and power generating equipment, automotive, aerospace, and recently also the information technology, communication, computer, life science and green industries. Development of new technologies often causes well established companies to fail (Christensen, 1997). This is an example of what 18


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Joseph A. Schumpeter (1975) described as “creative destruction”, and what Clayton Christensen (1997) described as “disruptive innovations”; innovations that change entire industries The traditional innovation literature is also very often based on the premise that innovative companies protect their innovations and competiveness through patents or secrecy (Lamoreaux & Sokoloff, 2007; Freeman & Soete, 1997). The Facilities Management (FM) industry is often far more transparent and volatile than traditional goods producing industries. Services are thus usually far more difficult to protect than hardware and technology, even if many services are based on application of numerous kinds of technologies. This is clearly evident for so-called “Soft FM”; i.e. labour intensive “blue collar” services such as cleaning, catering, security, office support, front desk, janitor, waste management, landscaping, etc. Due to outsourcing third party service providers produce a significant part of FM soft services at the clients’ premises. There are close relations between the third party service providers and their clients, even if the contracts usually only last three to five years. The third party service providers’ operational level employees often have a high turnover rate. The combination of relatively short term contracts and high turnover among the operational level employees often makes it difficult for third party service providers to keep business secrets and maintain their competitive edge. However, despite this context, the FM soft service industry has been very innovative. There are relatively few academic studies of FM soft service innovations. A search in Emerald’s database for the keyword innovation identified only 24 articles in Facilities (1992-2014) and 6 articles in Journal of Facilities Management (2006-2012). A search for the keyword services identified 45 articles in Facilities (1994-2013) and 28 articles in Journal of Facilities Management (2003-2014). However, a search for articles that included both the keywords innovation and services identified only 1 article in Facilities (2004) and 2 articles in Journal of Facilities Management (2006 and 2013). Tomas Mudrak, Andreas van Wagenberg and Emiel Wubben’s (2004) article address the FM teams’ “innovativity” from a theoretical perspective. Paula Cardellino and Edward Finch’s (2006) article is an empirical study of service innovations among 11 third party and in-house service providers. Cardellino and Finch found FM organisations to be “highly innovative”, and dialogues with clients and end users were important sources for new ideas. Cardellino and Finch also found that innovation processes often were informal, and that third party service providers used innovations to differentiate themselves from competitors. Ada Scupola’s (2012) study is based on 15 interviews with representatives from 14 FM organisations. Scupola found that major third party service providers perceive “innovations as a strategic activity and see themselves as innovative companies”. The aim of this paper is to get a better understanding of how and why Norwegian third party service providers innovate. This paper examines four research questions: - RQ1: What are the main categories of FM soft service innovations? - RQ2: How do FM soft service innovations take place? - RQ3: What are the third party service providers’ yardsticks for FM soft service innovations? - RQ4: How do third party service providers handle risks and uncertainties during innovation processes? 2 INNOVATION Jan Fagerberg (2005, pp. 4-5) makes a distinction between invention and innovation: “Invention is the first occurrence of an idea for a new product or process, while innovation is the first attempt to carry it out in practice”. Fagerberg emphasises that innovation is not a single event, 19


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but a lengthy process that usually involves numerous interrelated innovations; i.e. there is an interaction between different kinds of innovations. One innovation may pave the road for several others, and so forth. Joseph A. Schumpeter (1983, p. 66), who is often considered the founding father of the field of innovation research, defines innovation as ”the carrying out of new combinations”, and describes five categories of innovations, namely 1: Introduction of a “new good”, or “a new quality of a good”. 2: Introduction of a “new method of production”. 3: “The opening of a new market”. 4: “The conquest of a new source of supply of raw materials or half-manufactured goods”. 5: “The carrying out of the new organization of any industry”, for instance through creation of trusts or monopolies or shattering existing trusts or monopolies. The individuals that carry out the new combinations are “entrepreneurs”, according to Schumpeter (1983, p. 74). Chris Freeman and Luc Soete (1997, p. 200) describe innovation as a “two-sided or coupling activity”, which means “recognition of a need or more precisely, in economic terms, a potential market for a new product or process” and “technical knowledge”. Market pull or technology push alone does thus not facilitate innovations. Innovations take place where and when these two conditions work together. Freeman and Soete (1997, p. 388) distinguish between three categories of innovations, namely “Radical innovations” “Incremental innovation” and “Diffusion”, ranging from innovations caused by breakthroughs in basic research, to further development (i.e. better mouse traps) and industrialization (mass production) entailing scientific breakthroughs. Table 1 The innovation space Radical change

Product revolution

Process reengineering

Strategic transformation

New to the world/New to the firm

Incremental change

Product evolution

Process change/improvement

Strategic development

Product line extension/Product improvement

Current (No change)

Market penetration (volume)

Process efficiency

Strategic focus

Product/Service

Process

Strategic

Repositioning

Source: Ahmed & Shepherd 2010, p. 12 Figure 1.2

Pervaiz K. Ahmed and Charles D. Shepherd (2010) have used strategic mapping to define what they denote as the innovation space. Their innovation space is shown in Table 1. Ahmed and Shepherd distinguish between formats of innovation (X-axis); i.e. between product/service innovations, process innovations and strategic innovations. They similarly distinguish between the degree of change or newness (Y-axis). This gives us a 3x3 matrix or innovation space. Product or service innovations are either technology (technology push) or market(ing) driven (market pull), and manifested through new physical products or services, or combinations thereof. Examples of product innovations of relevance for the FM industry are cleaning machines, cleaning robots or new services. Process innovations concern how industries organize and manage their tasks. The assembly line, flexible production systems, Just-in-Time production, and Lean production are typical examples of process innovations. Strategic innovations are first and foremost about changes in business models. One strategic innovation of particular relevance for the FM-industry is the distinction between primary activities or core business and support 20


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activities (Porter, 1985; Prahalad and Hamel, 1990). Recognition of the distinction between primary and support activities, and emphasis on the core business, has led to outsourcing of many support activities, hereunder FM soft services. Ahmed and Shepherd’s innovation space is thus a useful tool for analysing FM innovations. Outsourcing of support activities was for instance used deliberately as one of the means for comprehensive public sector reforms in Norway (Boge, 2010). But decisions about whether to outsource or not to outsource support activities are not always straightforward (Boge, 2012). Traditional normative models for development of service innovations typically include six to four linear stages. One example of a six stages model is: 1. Strategy formulation. 2. Idea generation. 3. Analysis. 4. Service design and process development. 5. Testing, and 6. Introduction. One example of a four stages model is: 1. Direction. 2. Design. 3. Testing, and 4. Introduction (Johnson, Scheuing & Gaida, 1985, and Scheuing & Johnson, 1989, in Ahmed & Shepherd 2010, p. 190-191 Figure 5.17). These models are very similar to the business school perspective on entrepreneurship (Cf. Fry 1993), which is often based on a linear cause-effect perspective between (market) research, recognition of business opportunities, establishment of goals, mobilisation of resources, and implementation of the hopefully successful venture. Peter Sims (2011), who has been inspired by Saras D. Sarasvathy’s (2008) concept of “Effectuation”, recommends “little bets” as innovation strategy. The little bets strategy is based on systematic use of small scale tests or pilot projects; i.e. to try, doing the necessary adjustments, try again, and so forth. Sims’ recommendation is not to escalate or to increase the scale until things work properly. Little bets is thus a risk reducing strategy. 3 METHODOLOGY This exploratory study is an attempt of elucidating a subject that has not been studied that thoroughly in Norway. The object in most Norwegian studies about innovations have been technology driven industries, such as ICT, electronics, aerospace, pharmacy, energy, subsea, manufacturing, sea farming, etc. There are few studies about innovations in labour intensive “blue collar” industries like FM soft services. An exploratory approach is thus justified. This paper is based on a case study design. Case studies can, according to Robert K. Yin (1994, pp. 4-9), be a useful research strategy if the researcher’s aim is to answer “how” and “why” questions. The aim of this study is to get a better understanding of how and why Norwegian third party service providers innovate, and this study paves the way for further studies. Most of the data presented in this paper have been collected through qualitative semi-structured interviews with seven respondents. Six respondents are current or former executives in major Norwegian third party FM soft service providers. One respondent is a consultant with a past as a major purchaser of FM soft services. These seven respondents were chosen deliberately because of their in depth knowledge about the Norwegian FM soft service industry. They have inside information about Norway’s major third party service providers, the FM-industry’s business association and many major clients. This is an example of what Yin (2011, p. 88, Yin’s emphasis) describe as a “purposive sampling” strategy, to collect the most “relevant and plentiful” data. A purposive sampling strategy is a necessary but not sufficient condition for valid research results. All interviews except one were telephone interviews. The respondents received the interview guide together with the invitation to participate in the study. Each interview was recorded (with the respondent’s consent). It was also made field notes, in case of recording problems. The interview guide served as a conversation guide. Each interview took between 15 and 40 minutes, 21


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and each respondent was encouraged to think loud. These supplementary comments clearly enriched the data. The interview guide included more aspects and questions than what is discussed in this paper. The interviews were transcribed and analysed through open coding (initial code or Level 1 code according to Yin 2011, pp. 186 ff.). Open coding was used because this is an early exploratory phase of the research project. Data from this study are the starting point for further studies. 4 A BRIEF OVERVIEW OF SOME OF NORWAY’S MAJOR THIRD PARTY SERVICE PROVIDERS Sven A. Teichmann (2009), who made a comparative study of FM in Europe, distinguished between “Pioneer Markets” (more than 56.3 per cent outsourcing), “Developed Markets” (more than 43.6 per cent outsourcing), “Emerging Markets” (more than 32.5 per cent outsourcing” and “Pre-Emerging Markets” (more than 17.5 per cent outsourcing). Teichmann considers Norway as an emerging FM market, because in 2008 approximately 36 percent of the FM services (an estimated total market of 12.28 billion Euros) was outsourced to service providers. The rest was provided in house. The Norwegian market for FM soft services is dominated by a handful of third party service providers. Other major third party service providers are mainly involved in hard FM. There are also a large number of third party single service providers, particularly in cleaning and catering. Table 2 provides an overview of Norway’s major third party FM soft service providers. Table 2 An overview of some of Norway’s major third party FM soft service providers Company

Estimated revenue in 2013 (millions Euro)

Estimated number of employees in 2013

Main business areas

A

763

12000

Cleaning, catering, office support, property maintenance, and integrated FM

B

315

2600

Catering, cleaning, and operation of patient hotels at hospitals

C

100-125

800

Catering, cleaning and related services

D

100

1500

Cleaning, catering and miscellaneous related services

E

66

750

Workplace services, property services, industry services and integrated FM

Sources: Interviews, annual reports and web pages

Six of this study’s seven respondents are currently employed or have been employed by one or more of the service providers A, B, D or E. 5 FINDINGS This section present the findings concerning what kind of innovations that have taken place in the respondents’ companies, how some of the innovations have taken place, what has been the third party service providers’ yardstick for innovations, and how the third party service providers have handled risks and uncertainties during their innovation processes.

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5.1 What are the main categories of FM soft service innovations? The first respondent mentioned four kinds of innovations of particular importance, namely “new services or business areas”, “improvements of existing services or service concepts, for instance through use of new technology or work processes”, “new ways of organizing and managing the service production”, and finally improved methods for training of new employees, particularly employees with immigrant background. Introduction of systematic training of new operational level employees was one of his major achievements as service provider executive. Development of “new business models” and “new marketing and sales methods” was not on the agenda when he was in the FM industry. The second and third respondents emphasised new combinations of services and business models, and new methods and work processes for producing the services. The second respondent emphasised that “new services or business models can be innovations, if they represent quantum leaps with regard to costs, competitiveness, etc., and not merely are improvements of existing services and business models”. The second respondent does not consider new ways of marketing and sale to be innovations. The third respondent mentioned “experiments with different contract formats and various degrees of flexibility”. ”Many kinds of innovation are relevant”, according to the fourth respondent. “Number one is improvements of existing services. Number two is new combinations of business models and business areas. Number three is new services and business areas. Number four is new ways of dialogues with clients and users. Number five is new ways of value creation”. The fifth respondent told their top three innovations were “client driven”; i.e. use of new production processes and methods, such as “improved handling of physical mail, better methods for space management, and improved methods for security and access control to the clients’ premises”. The fifth respondent’s company often import service concepts from the parent company that has a technology transfer organisation. The sixth respondent told that “number one is combinations of business areas, services and/or technology”. “Number two are improvements of existing services through use of new technology”, for instance more efficient methods for cleaning. “The third is merger and acquisitions of firms that have developed new technologies or are specialised on a particular kind of services”. Development of new services often necessitates recruitment of skilled employees, but few of those who deliver the services have academic level education, according to this respondent. The seventh respondent mentioned improvement of existing processes, and development of new combinations of services, such as “sale of takeaway dinner and high quality food products from their canteens, so their clients’ employees can save valuable time in the afternoon”. None of the respondents mentioned any examples of innovations near the calibre of “disruptive innovations” (Christensen 1997) or “creative destruction” (Schumpeter, 1975). But one example of a disruptive FM soft service innovation in Norway was the extensive outsourcing of support services that began in the early 1990s, particularly in many former public administrations (Boge, 2010). This shift can be perceived as a strategic transformation according to Ahmed and Shepherd’s (2010) innovation space. However, today outsourcing of FM soft services is standard operating procedure in Norwegian private sector industries, even if in-house production of FM soft services still is standard operating procedure in most of Norway’s public sector. But the new non-socialist coalition government that came to power after the 2013 election may change the rules of the game and thereby facilitate increased outsourcing of FM soft services in the public sector. 23


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How do the respondents’ answers concerning the main categories of FM soft service innovations fit in with Ahmed and Shepherd’s (2010) innovation space? The majority of the innovations mentioned are incremental changes of products (product/service innovations), process change/improvements (process innovations) or strategic development (strategic innovations); i.e. product line extensions or product improvements. Only a few innovations mentioned are in the neighbourhood of product revolutions (product or service innovations that are radical changes and new to the world or to the firm), or near strategic transformations (strategic innovations that represent radical change and are new to the world or to the firm). One example of a possible strategic transformation is the combination of new business models and business areas, such as mentioned by respondent number four. Most innovations mentioned by the respondents are incremental changes or product line extensions/product improvements. This seems highly reasonable given the FM soft services industry’s nature, because tough competition makes it very difficult to maintain permanent competitive advantages in this industry. This finding props up Cardellino and Finch’s (2006) claim that third party service providers use innovations to differentiate themselves from competitors. 5.2 How do FM soft service innovations take place? Many innovations have been based on the existing organisation and services, according to the first respondent. These innovations were also results of “dialogues with the clients to figure out their needs and requirements for new services”. Mergers and acquisitions have also “been important sources for innovations”. The first respondent’s explanation about how FM soft service innovations take place is very much in line with the traditional perspective on how innovations take place, such as discussed by Schumpeter (1983). The second respondent, who does a lot of consultancy and partly see the FM industry from an outsider’s perspective, considers “systematic analysis of the purchasers’ core business to be one of the main mechanisms” that explain FM soft service innovations. Another important source or mechanism “is dialogues with the clients”. The second respondent’s explanation about how FM soft service innovations take place is very much in line with Johnson, Scheuing and Gaida’s (1985) and Scheuing and Johnson’s (1989) normative models for development of service innovations. The third respondent emphasised competitive bidding approximately every third year as the main driver for innovations. “To win the contract – you have to look at the contract with fresh eyes”, and it is “a disadvantage to have the contract”, according to this respondent, because “then you are stuck with the established work processes and service level”. “Nobody who is into a contract is permitted to work with the bid package, except in the reviews”, according to this respondent, “because the tender has to be based on the client’s specification and not on the established practice”. Service providers that base the tender on established practice will most likely lose the competition, according to this respondent. The formulation of the service level agreement (SLA) is crucial for whether competitive bidding facilitate innovations, according to the third respondent. “SLAs with functional requirements may facilitate innovations, while SLAs with procedural specifications preserve status quo”, because functional requirements give the service provider an opportunity to figure out how to provide the services. Procedural specifications describe how the services are to be provided. Another important mechanism for innovation, particularly among multinational service providers, according to the third respondent, is “import of business or service concepts from

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other countries”. Import of knowhow as route to innovations is clearly in line with Schumpeter’s (1983) definition of innovations. Market analysis has so far not been used that much in the FM soft service industry, according to the fourth respondent. However, systematic market analysis has become more common, particularly for business sector and market segmentation, and to identify the individual clients’ needs. Market analysis as starting points for FM soft service innovations is clearly in line with Johnson, Scheuing and Gaida’s (1985), and Scheuing and Johnson’s (1989) normative models for development of service innovations. The fourth respondent’s company does not hide innovation projects, because “there is very seldom a big bang in FM”. This respondent’s view emphasize that most FM soft service innovations are incremental innovations, according to Ahmed and Shepherd’s (2010) innovation space. Import of concepts from the holding company “happens, but should be used more frequently”, according to this respondent, because “the holding company has innovation catalogues, development forums for different services, and forums for sharing knowledge between similar countries”. This respondent’s advocacy of import of concepts is clearly in line with Freeman and Soete’s (1997) idea about innovations as a twosided or coupling activity. The holding company disseminates knowledge and thus facilitates coupling of knowledge and services that pave the way for innovations. Even the fifth respondent told that dialogues with the clients and small scale trials are the main routes for innovation. This respondent’s company is “very often pilot for their own service innovations before they are sold to clients”. This approach is clearly in line with Sims’ (2011) recommendations about small scale trials. One of the most important paths to innovations, according to the sixth respondent, is “development of new combinations of existing and new business areas or services in dialogue with existing clients”. This path is clearly in line with Schumpeter’s (1983) recommendations. The sixth respondent also emphasized that Norway is very special concerning food and catering. ”Very few food and catering concepts can be imported directly to Norway from US/UK”, according to this respondent, who has worked for decades in the food and catering industry. Import of concepts from the holding company is thus not always the easy way to innovations. The seventh respondent told the company has an annual strategy process, where they discuss new business areas. “This strategy process is based on market research, hereunder continuous discussions and frequent client surveys”. Each of this service provider’s innovation projects is “established as a business case with time and budget”. This highly structured approach is clearly in line with Johnson, Scheuing and Gaida’s (1985) and Scheuing and Johnson’s (1989) normative models for development of service innovations. Freeman and Soete (1997) described innovation as a “two-sided coupling activity”. This coupling activity was clearly evident in the answers, because six of seven respondents emphasised dialogues with existing clients as their most important route to incremental innovations. These findings support Cardellino and Finch’s (2006) findings that dialogues with clients are important sources for new ideas. The third respondent emphasised competitive bidding, and competitive bidding may result in more radical innovations, according to Ahmed and Shepherd’s (2010) innovation space. Only one of the respondents linked innovations to the service provider’s annual strategy process, but three respondents mentioned various kinds of market analysis as route to innovations. Three respondents also mentioned mergers and acquisitions, and import of concepts as alternative routes to innovations. These findings are in line with Scupola’s (2012) findings that innovations are strategic activities for third party service providers. 25


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5.3 What are the third party service providers’ yardsticks for FM soft service innovations? The first respondent’s company had “an offensive approach to innovations, because FM is a growth case with emphasis on new services and increased sale to existing clients”. This approach is clearly in line with Schumpeter’s (1983) ideas. This respondent also emphasized that FM is “an industry with very little risk and money at stake compared to traditional goods producing industries, where choice of wrong business case or technology literally may result in insolvency or bankruptcy”. The yardstick for innovations, according to the second respondent, is usually “the service provider’s competiveness”. But this respondent considers “the client’s added value and quality improvements” to be equally important and advocated “a balanced approach” between competitiveness and concerns for the clients’ wellbeing. The third respondent told the yardstick for innovations is “growth and the upside”. “In order to make money, you have to improve half an hour per day per employee”, according to this respondent. The “upside” was the yardstick for innovations even for the fourth and the fifth respondent. The fifth respondent also emphasised that some innovations reduce staff consumption. “Once in a while you have to implement technologies that reduce the top line”, but these losses are often offset with sale of other or new services. The sixth respondent told that “the downside is often the yardstick for innovations”, because lack of development may result in loss of clients. But this respondent’s company “also considers the upside”. Even the seventh respondent’s company consider “both the upside and the downside”, because “new business areas can be rather risky, particularly if they have no experience”. Six of the seven respondents thus used the upside as a yardstick. Only two of the respondents’ companies considered the downside as a yardstick for innovations. This finding indicates a business school approach to innovation and entrepreneurship (Cf. Fry 1993) among the respondents. This seems reasonable, since many of the respondents have business school educations. 5.4 How do third party service providers handle risks and uncertainties during innovation processes? The first respondent told his company “grasped those opportunities they stumbled across”, because there are strong dynamics in the industry which makes it almost impossible to plan 5 years ahead. “The dynamic in FM is development during the course of actions”. This finding underlines the FM soft service industry’s volatile and somewhat opportunistic nature. The second respondent, who partly has an outsider’s perspective on the FM industry, told “the service industry is not good at handling surprises or unexpected events”. Many of the issues he has come across when counselling purchasers during termination or renegotiation of contracts or when negotiating new contracts, is that service providers are “rather good at delivering single services like front desk, cleaning, catering, etc. […] But management of the service provision is not as well managed as the FM services”. This is clearly an advice to the FM soft service industry about emphasizing process innovations and not only product or service innovations. This second respondent even advocates “small scale trials” to figure out whether innovative moves are tenable, and to reduce the operational risk. Such an approach is clearly in line with Sims’ (2011) recommendations about little bets as innovation strategy.

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The third respondent told there are some “system products” where you maintain the contracts and “other products where you maintain the flexibility”. The system products are clearly not subject to much experimentation, according to this respondent. But the products that maintain their flexibility are obviously possible experimental or innovation arenas. The distinction between “system products” and “other products” is thus almost a textbook example of risk reducing measures. The fourth respondent told “FM is very much about grasping the opportunities”, and the fourth respondent’s company prefer practical small scale trials at the clients’ premises, and to distribute these new services or ways of working to other clients with similar contexts. This approach is clearly in line with Sims’ (2011) recommendations about little bets as risk reducing strategy. Even the fifth respondent told that the service company “is very opportunity driven, but many concepts are tested in-house before they are sold to clients”. “Plans are mainly “guidelines” for development of new concepts and services” according to this respondent. The sixth respondent told “uncertainty is very often the name of the game in the service sector”. But most service providers are very flexible and have mainly variable costs and few fixed costs. Even the seventh respondent told “you have to be agile and flexible and seize the opportunities. You don’t stick to the 5 years plan if other promising opportunities evolve”. Thus, the seven respondents emphasised the FM industry’s opportunistic nature; i.e. that you must be able to grasp opportunities and live with risk and uncertainty. These findings support Sims’ (2011) recommendations about using “little bets” as a risk reducing strategy. However, the second respondent emphasised that some FM soft service providers are not good at handling surprises or unexpected events. This is somewhat surprising given the fact that risk and uncertainty more or less is the name of the game in FM soft services. 6 CONCLUSION So what are the main findings in this exploratory study about innovations in a labour intensive “blue collar” industry such as FM soft services? First, most of the Norwegian third party service providers’ FM soft service innovations are incremental. This seems very reasonable given the FM industry’s volatile and opportunistic nature, with relatively short term contracts, competitive bidding and high turnover among the operational level employees. None of the respondents mentioned any examples of disruptive FM soft service innovations. There are few “big bangs” in this industry. The dominant pattern seems to be a constant stream of incremental service innovations, where the purpose often is to differentiate the third party service providers from their competitors. This study indicates that Norwegian third party FM soft service providers’ innovation processes differ significantly from innovation processes in technology driven industries. This finding is highly important both for FM practitioners and for those who govern the public funding schemes for research and development. Second, most FM soft service innovations seem to be results of dialogues between the third party service providers and their clients, the service providers’ mergers and acquisitions, and import of concepts from their holding company. There are also indications of innovations that are results of the service providers’ own systematic market research. These findings are highly relevant for FM practitioners, because many of the FM soft service innovations seem to be linked to the third party service providers’ strategies. Third, the innovations’ financial and operational upsides are clearly the third party service providers’ most important yardsticks. However, a strong emphasis almost exclusively on the 27


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upside can be somewhat risky. The FM practitioners are also advised to take the innovations’ downside into consideration. And finally, how do the third party service providers handle risks and uncertainties during innovation processes? FM soft services are a volatile business and industry. It thus sounds reasonable that many FM soft service providers have little bets as their preferred strategy for risk reduction in innovation processes. This study has provided a rich material, despite few respondents (N=7). But these respondents have inside information about Norway’s major third party FM soft service providers. Further research in Norway and preferably also in other European countries is necessary to understand such a complex phenomenon as FM soft service innovations. Further research about FM soft service innovations should preferably be based on comparative and longitudinal case studies and surveys among third party and in house service providers and clients and end users, in order to facilitate studies across several countries during time, and to facilitate development of causal and hopefully also more general explanations about how and why FM soft service innovations take place. ACKNOWLEDGMENTS I am very grateful to the respondents who took their time and gave valuable insight about the Norwegian FM soft service industry. Thanks also to the three anonymous referees. Your comments and suggestions clearly improved this paper. REFERENCES Ahmed, P.K and Shepherd, C.D. (2010), Innovation Management. Context, strategies, systems and processes, Pearson Education, Harlow. Boge, K. (2010), “Outsourcing and Facility Management as strategies for comprehensive public sector reforms”, in Nelson, M. (Ed.), Euro FM Journal International Journal of Facilities Management Special issue: Integration of core business and facility management. Proceedings of the 9th EuroFM Research Symposium Madrid, Spain 1-2 June 2010, European Facilities Management Network (EuroFM), Naarden, pp. 97-111. Boge, K. (2012), “Rational Reluctance? A Conceptual Discussion about Transition from FM 1.0 (Cost Reductions) to FM 2.20 (Value Creation)”, in Junghans, A. & Jensen, P.A. (Eds.), Proceedings of the 11th EuroFM Research Symposium 24-25 May 2012 in Copenhagen, Denmark, Polyteknisk Forlag, Lyngby, pp. 31-38. Cardellino, P. & Finch, E. (2006), “Evidence of systematic approaches to innovation in facilities management”, Journal of Facilities Management, Vol. 4, No. 3, pp. 150-166. Christensen, C.M. (1997), The Innovator’s Dilemma, Harvard Business Review Press, Boston, MA. Fagerberg, J. (2005), “Innovation: A guide to the literature”, Fagerberg, J., Mowery, D.C. and Nelson, R.R. (eds.), The Oxford Handbook of Innovation, Oxford University Press, Oxford, pp. 1-26. Freeman, C. & Soete, L. (1997), The Economics of Industrial Innovation, Third edition, The MIT Press, Cambridge MA. Fry, F. (1993), Entrepreneurship. A Planning Approach, West Publishing Company, St. Paul, MN. Johnson, E.M., Scheuing, E.E. & Gaida, K.A. (1985), Profitable Service Marketing, Dow Jones Irwin, Homewood, Il. 28


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Lamoreaux, N. & Sokoloff, K.L. (2007), Financing Innovation in the United States, 1870 to the Present, The MIT Press, Cambridge MA. Mudrak, T, van Wagenberg, A, & Wubben, E. (2004), “Assessing the innovative ability of FM teams: a review”, Facilities, Vol. 22, No. 11/12, pp. 290-295. Porter, M. E. (1985), Competitive Advantage. Creating and sustaining superior performance, Free Press, New York. Prahalad, C. K. & Hamel, G. (1990), “The core competence of the corporation”, Harvard Business Review, Vol. 78, No. 3, 79-91. Sarasvathy, S. D. (2008), Effectuation. Elements of Entrepreneurial Expertise, Edward Elgar, Northampton, MA. Scheuing, E. & Johnson, E. (1989), “A proposed model for new service development”, Journal of Service Marketing, Vol. 3, No. 2, 25-34. Schumpeter, J. A. (1975), Capitalism, Socialism and Democracy, Harper Perennial, New York. Schumpeter, J. A. (1983), The Theory of Economic Development, Transaction Publications, New Brunswick. Scupola, A. (2012), “Managerial perception of service innovation in facility management organizations”, Journal of Facilities Management, Vol. 10, No. 3, pp. 198-211. Sims, P. (2011), Little Bets. How breakthrough ideas emerge from small discoveries, Random House Books, London. Teichmann, S.A. (2009), Marktbetrachtung - FM-Volumen in Europa, available at http://www.facility-manager.de (accessed 23 July 2012). Yin, R.K. (1994), Case Study Research. Design and Methods, Second edition, Sage Publications, Thousand Oaks, CA. Yin, R.K. (2011), Qualitative Research from Start to Finish, The Guilford Press, New York.

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Towards an effective workspace design by end-user emancipation H.B. (Herman) Kok Wageningen University, Wageningen, The Netherlands [email protected] +31 (0)317 482 181 M.P. (Mark) Mobach Wageningen University, Wageningen Hanze University of Applied Sciences Groningen, Groningen University of Groningen, Groningen The Netherlands [email protected] S.W.F. (Onno) Omta Wageningen University, Wageningen, The Netherlands [email protected] ABSTRACT Purpose - This paper aims to identify whether employees’ organisational position affect their perceived quality of the workspace design. By providing possible explanations for the differences and discussing the implications, we aim to establish an effective workspace design process that satisfies different users of the commonly used work environment. Design/methodology/approach – The present paper analyses the results of a national online survey among members of the Board of Directors (n=17), facility managers (n=76), education managers (n=211), and lecturers (n=1,755) of 18 Dutch Universities of Applied Sciences, using Mann-Whitney U tests. Findings – The results show a clear misfit between the perceived quality of workspace design between Board members and facility managers on one hand and education managers and lecturers on the other. This possibly indicates a mismatch between which workspace design the organisation intends to provide and what users may require or expect. Practical implications – Based on the research findings, we propose facility managers should act more closely to the primary process and work to recognize their needs. Therefore, lecturers and education managers as end-users have to become truly emancipated, involving them periodically in workspace design improvement and listening and responding to what they say. Originality/value - This paper finds that the often presupposed support of facility management to the primary process seems rather weak, at least in the perception of end-users, and that facility managers should engage in participatory workspace design with end-users and challenge themselves to be the linking-pin between Board and end-users.

Keywords: Gap analysis, workspace design, facility management, participatory design, higher education

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1 INTRODUCTION Workspaces serve different purposes depending on the ones who occupy them. Whereas in offices and factories the emphasis is typically on productivity (Friday and Cotts, 1995; Atkin and Brooks, 2000; Barret and Baldry, 2003; Booty, 2006), hospitals for example have begun to focus on patients to designing spaces that enable healing (Horsburgh, 1995), and those involved in school planning and design take up the opportunity to enhance learning outcomes by creating better learning environments (Blackmore et al., 2011). There is also substantial evidence of the effects of design features of the work environment on users’ outcomes, including noise (Treasure, 2011), temperature (Ramsey, 1995), physical structure (Oldham and Brass, 1979; Baldry, 1999), layout, furniture and seating arrangement, tidiness (Oldham and Fried, 1987; Martens et al., 2010), privacy (Sundstrom, 1982; Kupritz, 1998), air quality, ventilation (Higgins et al., 2005; Sundstrom, 1987; Langston et al., 2008), and lighting (Knez, 1995). In the design process of services and spaces, on the one hand, the actors involved have specific roles: designer, decision-maker, users and hence different but related interests. On the other hand, those who occupy buildings typically hold different positions within the organisational hierarchy, with corresponding functional tasks and responsibilities, that can be at odds with design interests and hence possibly obstruct an effective design process and design. The pitfall here is that little communication between those who occupy and run buildings and those who actually commission and design them, leads to a gap between actual use and design intentions (Zhang and Barret, 2010). If not performed well, in designing the work environment as a mixture of separate, but yet closely related, designed features of service and space elements this may result in a workspace design that does not benefit the needs and activities of all employees; resulting in dissatisfaction, or worse hindrance. After all, with so many different users of the work environment and its quality, in terms of fitness for use (Juran, 1951), being an individual assessment based on perceptions (Zeithaml, 1988), perception gaps may arise between decision makers and users of the physical environment (Parasuraman et al., 1985). An effective workspace design in that sense is a relative concept, depending on what is intended and who is assessing. This raises questions as to which user group decision makers and designers should address to determine the required workspace design. To increase the likelihood of designing effective workspaces that function well for its users, drawing on evidence-based design can increase the likelihood that new workspaces will generate the expected outcomes (Becker and Parsons, 2007). To do so, an assessment of fit by conducting a gap-analysis should shed light on whether different employees as users share the same degree of perceived quality of service and space design, and whether a differentiated approach towards the workspace design should be acted on to ultimately establish an effective workspace design. The following research question was formulated: RQ

Does the employees’ organisational position affect their perceived quality of workspace design, and if so, what design approach should be acted on for an overall effective workspace design?

This present paper will first theorise on the occupants of workspaces, their different roles in the workspace design process. Then the methods and data collection will be described, followed by results, conclusions and discussion. This paper will finish elaborating on implications of findings for FM and limitations. 31


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2 THEORETICAL FOUNDATION Occupants of work environments are typical staff members of organisations and their visitors and customers. Within the organisational hierarchy three levels can be distinguished (Mintzberg, 1979; CEN 2006); staff can either hold a strategic (Board of Directors), a tactical (manager) or an operational (worker) position. Facility managers typically run the buildings as responsible actor to ensure functionality of the built environment by integrating people, place, process and technology (IFMA). Besides users of workspace design hold different organisational positions, they are also actors in the physical environment around them. As actors they may have different roles and can be decision-makers, designers or end-users (Mobach, 2013). Decision-makers are the ones that determine the organisational support goals and needs. Decision-makers are supposed to act in the interest of the end-users but also the organisation as a whole. Ideally, decisions about any aspect of the design, such as the selection of seating or the choice of interior colour, represent a particular viewpoint about how that facility is to be experienced by the users. The designer is the one who takes the design decisions to heart and acts accordingly. Where it is the responsibility of the decision-maker to identify its needs, it is the designer’s role to apply a design solution. Designing then encompasses translating the support goals and needs into a whole as a mixture of design features of space and service elements. End-users make use of the workspace design to support their (primary) activities, who can be very diverse in needs and activities, depending on the type and complexity of the organisation. End-users are the service co-producers, as they are participants in the service process, whether there is no, low, or high interaction between service employees and end-users (e.g. Fitzsimmons and Fitzsimmons, 2011). Typically end-users, as core actors, have little or no choice in what service and space elements are provided to them, unless their needs and wants are used as inputs into the workspace design process. Therefore, for an effective support of their (primary) activities, they are dependent upon both the decision-makers and designers. 3 METHODS AND DATA COLLECTION For studying how different user groups perceive their work environment to be informative, our study population was drawn from education institutions of the same academic level, being Universities of Applied Sciences in The Netherlands. Four user groups were identified, being Board of Directors, education managers, lecturers and facility managers, who all are employed at the institutions. The research first identifies educational service and space design elements that can be assessed. Second, this study measures the similarities and differences of viewpoints between the user groups and will examine the possible perception gaps. Finally, if gaps do exist, we elaborate on the design approach that could be advanced to create an overall satisfying workspace design. All 39 Dutch Universities of Applied Sciences were invited to participate in the study, of which eighteen institutions agreed to do so. An online survey was employed to obtain information about the perceptions of Board members, education managers, lecturers, and facility managers. The participants were invited through an email that was used as a cover letter and included the URL for the website that by clicking automatically gave access to the electronic survey tool. From the variety of service and space elements of importance for a good conduct of education (Blackmore et al., 2011; Kok et al., 2011), we selected forty items as our independent variables that constitute the educational workspace design. All user groups scored the same service and space design items. Since users have underlying beliefs, assumptions and priorities that influence their evaluation (Parasuraman et al., 1985; Zeithaml, 1988), these items were formulated as statements about their use value (Woodruff, 1997), which relates to the specific qualities of a 32


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product or service experienced by the users regarding their requirements. All items were measured using seven-point Likert-scales from 1, very poor to 7, very good. 4 RESULTS A total of 2,277 questionnaires were returned. After deleting incorrect and insufficient answered questionnaires, 2,059 questionnaires could be analysed. The response was, according to the differences in numbers of employees per function within the participating organisations, unequally distributed among Board of Directors (17), facility managers (76), education managers (211), and lecturers (1,755). The overall reliability of the questionnaire was very good, with Cronbach’s α of .96, and values between .94 and .97 for each of the four respondent groups. To identify the possible perception gaps between the four user groups first the data were aggregated at the position level. Considering the examined groups are independent and of unequal size (different number of participants), we used Mann–Whitney U tests to analyse the specific sample pairs for significant differences. Between Board of Directors and facility managers statistically significant gaps were found at five out of forty items (12.5%), ranging from 0.54 to 0.75. Between education managers and facility managers twenty seven out of forty items showed statistically significant gaps (67.5%), ranging between 0.32 and 0.87. Between lecturers and facility managers thirty out of forty items showed statistically significant gaps (75%), ranging from 0.23 to 0.90. Between Board of Directors and education managers twenty five out of forty items were statistically significantly perceived different (62.5%), with gaps varying from 0.54 to 1.51. Board of Directors and lecturers perceived twenty three out of forty items (57.5%) statistically significantly different, with gaps between 0.68 and 1.37. Education managers’ and lecturers’ quality perceptions were equal except for eight out of forty items (20%) with gaps ranging from 0.18 to 0.36. Based on the few gaps found between the Board members and facility managers on one hand and education managers and lecturers on the other, we decided to converge the four user groups into two for further analysis of the data. We used Mann–Whitney U tests again to analyse the specific sample pairs for significant differences between Board members and facility managers versus education managers and lecturers with regard to the prioritised list of items. These results are shown in Table 1. We found equal evaluations across both groups for five items (12.5%): maintenance condition of the buildings, day lighting in classrooms, audio-visual equipment, level of knowledge of the reception, and adequacy of call handling, meaning 87.5% of the item scores had statistically significant variation between both groups. For all surveyed items facility managers and Board members indicated a higher perceived quality than education managers and lecturers did. 5 CONCLUSION The misfit between, what we termed, decision makers (i.e. facility managers and Board members) versus end-users, being lecturers and education managers as employees that represent the primary process, is evident when looking at the perceived quality gaps with respect to 35 of the 40 items, as shown in Table 1. The perception gaps may indicate a mismatch between which workspace design the organisation intends to provide and what users may require or expect. We propose six explanations for the observed perception gaps. First of all, there may be a lack of coordination between decision makers and end-users. Since end-users typically have little or no choice in what services and spaces are provided to them, unless their needs and wants are used as inputs into the workspace design process, the gaps may indicate that facility management does not manage their relationships with end-users effectively. Second, from their fit it can be inferred that Board and FM do closely collaborate and align. Considering the past 30 years have seen a 33


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clear trend towards the outsourcing of FM tasks to service providers (Duffy, 2000; Salonen, 2004), there may be close contact between the Board and FM regarding outsourcing decisions, and consequently the required service levels. Third, Board of Directors’ and facility managers’ overreporting might be explained because their perceptions result from a self-serving bias, internally attributing performances that they are or feel responsible for (Miller and Ross, 1975; Gioia and Sims, 1985). Fourth, their overestimation compared to end-users may indicate that both Board and FM apparently operate on too great a distance from the primary processes, and therefore have no longer a good view on the end-users’ support needs and wants. FM fails to advocate for the interests of the primary process, as stated by the European standard (CEN, 2006). Fifth, maybe the perception gaps are the consequences of budgetary cuts for FM, which may have resulted in standardisation and a lower quality of the workspace design that does serve the purposes of both Board and FM, but fails to satisfy users’ needs. Sixth, we expect the user group who most intensively uses the services and spaces on a daily base, also to be the most critical with respect to its quality. Therefore, end-users may experience a lower quality of the workspace design than decision makers. Overall, the gaps signal a possible shortcoming of FM, as responsible actor, which raises the question to what extent FM can change something to the arisen situation. 6 IMPLICATIONS Since primary processes are the legitimacy of the studied higher education institutions, and their interests do not seem to be represented by FM in relation to the Board, FM should act more closely to the primary process and must work to recognize their support needs. Also, end-users (dis-)benefit directly from the services provided (De Toni et al, 2007), and have knowledge about the direct impact of workspace design on the success or failure of the primary process (Amaratunga and Baldry, 2000; Nutt, 2004). Therefore, FM has to make more use of the knowledge and experience of end-users for workspace design purposes. To involve end-users in workspace design improvement and listening and responding to what they say, with Mobach (2013), the end-users have to become truly emancipated in terms of liberating them from the yoke of supply-oriented design. By carrying out a participatory approach end-users become cocreators of their workspace resulting in a dynamic coherence between work and different stakeholders’ interests (e.g. finance, technology, politics, architecture) (Seim and Broberg, 2010). We also suggest that participatory workspace design is a cyclical exercise, with feedback from the organisation being used to allow customisation of what is done for the end-users and aligned to the strategic intentions of the organisation. Then, FM should also challenge themselves to be the linking pin between Board and end-users and hereby moderate the gaps with both. Given the different relationships that FM has to maintain, there is an obvious importance of good communication and coordination to (changing) needs to establish and manage expectations. 6.1 Limitations and future research Further research may provide evidence whether alignment between the different stakeholders can explain for differences in quality perception. Specifically we suggest research into the governance relationship between FM, Board and education managers, the extent to which and how end-users’ feedback is used as input to the workspace design process, but also the way in which the FM organisation is run (e.g. degree of outsourcing, organisational positioning), and financial (e.g. budgets and accountabilities) and quality level aspects. By doing so, and indicate 34


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differences between institutions, a best-in-class approach to obtain a more balanced design of the workspace according to different stakeholders’ quality perception may be identified. REFERENCES Amaratunga, D. and Baldry, D. (2000), “Assessment of facilities management performance in higher education properties”, Facilities, Vol. 18, Nos. 7/8, pp. 293-301. Atkin, B. and Brooks, A. (2000), Total Facilities Management, Blackwell Publishing Ltd., Oxford. Baldry, C. (1999), “Space - The Final Frontier”, Sociology, Vol. 33 No. 3, pp. 535-553. Barret, P.S. and Baldry, D. (2003), Facilities management: towards best practice, 2nd ed. , Blackwell Publishing Ltd., Oxford. Becker, F. and Parsons, K.S. (2007), “Hospital facilities and the role of evidence-based design”, Journal of Facilities Management, Vol. 5, No. 4, pp. 263-274. Blackmore, J., Bateman, D., Loughlin, J., O’Mara, J. and Aranda, G. (2011), Research into the connection between built learning spaces and student outcomes, Centre for Research in Educational Futures and Innovation, Deakin University, East Melbourne. Booty, F. (2006), Facilities Management Handbook, Elsevier Inc., Oxford. CEN European Committee for Standardization (2006), EN 15221-1: European Standard in Facility Management - Part 1: Terms and Definitions. Brussels. De Toni, A.F., Fornasier, A., Montagner, M. and Nonino, F. (2007), “A performance measurement system for facility management: The case study of a medical service authority”, International Journal of Productivity and Performance Management, Vol. 56, Nos. 5/6, pp. 417435. Duffy, F. (2000), “Design and facilities management in a time of change”, Facilities, Vol. 18, Nos. 10/11/12, pp. 371-375. Fitzsimmons, J.A., and Fitzsimmons, M.J. (2011), Service Management: Operations, Strategy, Information Technology, 7th edition, McGraw-Hill, New York, NY. Friday, S. and Cotts, D.G. (1995), Quality facility management, John Wiley and Sons, Inc., New York. Gioia, D.A. and Sims Jr., H.P. (1985), “Self-serving Bias and Actor-Observer Differences In Organizations: An Empirical Analysis”, Journal of Applied Social Psychology, Vol. 15, No. 6, pp. 547-563. Higgins, S., Hall, E., Wall, K., Woolner, P. and McCaughey, C. (2005), The impact of school environments: A literature review, The Centre for Learning and Teaching, University of Newcastle. Horsburgh Jr, C.R. (1995), “Healing by design”, The New England Journal of Medicine, Vol. 333, pp. 735-740. Juran, J.M. (1951), Quality Control Handbook, McGraw-Hill, New York, New York. Knez, I. (1995), “Effects of indoor lighting on mood and cognition”, Journal of Environmental Psychology, Vol. 16, pp. 39-51. Kok, H.B., Mobach, M.P. and Omta, S.W.F. (2011), “The added value of Facility management in the educational environment”, Journal of Facilities Management, Vol. 9, No. 4, pp. 249-265. Kupritz, W. (1998), “Privacy in the work place: the impact of building design”, Journal of Environmental Psychology, Vol. 18, pp. 341-356. Langston, C., Song, Y. and Purdey, B. (2008), “Perceived conditions of workers in different organizational settings”, Facilities, Vol. 26, No. 1/2, pp. 54-67. 35


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Martens, Y., Meel, J. van, and Ree, J. van (2010), Planning office spaces: a practical guide for managers and designers, Laurence King Publishing, London. Miller, D.T. and Ross, M. (1975), “Self-serving biases in the attribution of causality: Fact or fiction?”, Psychological Bulletin, Vol. 82, No. 2, pp. 213-225. Mintzberg, H. (1979), The structuring of Organisations, Prentice-Hall, Inc., Englewood Cliffs, New Jersey. Mobach, M.P. (2013). Inaugural lecture Facility Management. Groningen: Hanze University of Applied Sciences. Nutt, B. (2004), “Infrastructure resources: forging alignments between supply and demand”, Facilities, Vol. 22, Nos. 13/14, pp. 335–343. Oldham, G.R. and Brass, D.J. (1979), “Employee Reactions to an Open-Plan Office: A Naturally Occurring Quasi-Experiment”, Administrative Science Quarterly, Vol. 24, No. 2, pp. 267-284. Oldham, G.R. and Fried, Y. (1987), “Employee Reactions to Workspace Characteristics”, Journal of Applied Psychology, Vol. 72, No. 1, pp. 75-80. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985), “A conceptual model of service quality and its implications for future research”, Journal of Marketing, Vol. 49, No. 4, pp. 41-50. Ramsey, J. (1995), “Task performance in heat: a review”, Ergonomics, Vol. 38, pp. 154-165. Salonen, A. (2004), “Managing outsourced support services: observations from case study”, Facilities, Vol. 22, Nos. 11/12, pp. 317-322. Seim, R. and Broberg, O. (2010), “Participatory workspace design: A new approach for ergonomists?”, International Journal of Industrial Ergonomics, Vol. 40, No. 1, pp. 25-33. Sundstrom, E. (1982), “Privacy in the office”, Environment and Behavior, Vol. 14, pp. 383-389. Sundstrom, E. (1987), “Work environments: offices and factories”, Stockol, D. and Altman, I. (Eds.), Handbook of environmental psychology, John Wiley & Sons, New York, pp. 733-782. Treasure, J. (2011), Sound business: How to use sound to grow profits and brand value, Management Books 2000 Ltd, Gloucestershire. Woodruff, R.B. (1997), “Customer value: the next source for competitive advantage”, Journal of the academy of marketing science, Vol. 25, No. 2, pp. 139 – 153. Zeithaml, V.A. (1988), “Consumer perceptions of price, quality and value: A means-end model and synthesis of evidence”, Journal of Marketing, Vol. 52, No. 3, pp. 2-22. Zhang, Y. and Barret, P. (2010), “Findings from a post-occupancy evaluation in the UK primary schools sector”, Facilities, Vol. 28, Nos. 13/14, pp. 641-656.

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Table 1. Mean (standard deviation) and gap of perceived quality of workspace design of different user groups. Item

Representation Atmosphere and appearance Fitting out for collaboration Maintenance condition interior Maintenance condition buildings Fitting out for knowledge sharing Layout for knowledge sharing Layout for cooperation Tidiness of outdoor area

Board Education members & managers & facility lecturers managers 5.36 4.89 5.80 (0.99) 5.13 (1.47) 5.10 (1.19) 4.62 (1.42) 5.51 (0.92) 5.12 (1.25)

Gap¹

0.47 0.67*** 0.48** 0.38** 0.16

5.37 (1.17)

5.22 (1.25)

5.10 (1.11)

4.62 (1.40)

4.99 (1.16) 5.19 (1.14) 5.79 (0.74)

4.58 (1.42) 0.41* 4.63 (1.46) 0.56*** 5.20 (1.27) 0.59***

0.48**

Classrooms Setup of classrooms Acoustics in classrooms Availability lecture spaces Availability practicum spaces Furniture in classrooms Artificial lighting classrooms Day lighting classrooms Audio-visual equipment

5.22 4.80 5.25 (1.03) 4.66 (1.29) 5.09 (1.19) 4.79 (1.30) 5.21 (1.22) 4.55 (1.38) 5.28 (1.07) 4.53 (1.37) 5.06 (1.38) 4.79 (1.27) 5.47 (0.77) 5.11 (1.09) 5.00 (1.31) 4.83 (1.41) 5.43 (1.05) 5.14 (1.29)

0.42 0.59*** 0.30* 0.67*** 0.75*** 0.27* 0.36** 0.17 0.29

Catering Variation catering offer Supply of healthy food Availability catering facilities Accessibility catering facilities Availability coffee and tea

5.58 4.96 5.35 (1.36) 4.66 (1.52) 5.16 (1.28) 4.41 (1.59) 5.72 (0.95) 5.12 (1.25) 5.85 (0.88) 5.37 (1.10) 5.85 (0.94) 5.24 (1.26)

0.62 0.69*** 0.75*** 0.60*** 0.48*** 0.61***

Workplaces 5.00 4.28 Availability meeting rooms 4.78 (1.32) 3.96 (1.50) Availability concentration 4.49 (1.33) 3.59 (1.64) workspaces Possibilities working at fixed 5.54 (1.18) 4.63 (1.77) places Layout for knowledge sharing 4.99 (1.16) 4.58 (1.42) Layout for cooperation 5.19 (1.14) 4.63 (1.46)

0.72 0.82*** 0.90***

Indoor climate

0.61

4.21

3.60

0.90*** 0.41* 0.56***

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0.81*** 0.63*** 0.60*** 0.40*

ICT Availability digital media Quality digital media Off-site working digital media Audio-visual equipment

5.54 5.01 5.65 (1.03) 5.10 (1.30) 5.62 (1.07) 4.95 (1.40) 5.46 (1.07) 4.86 (1.42) 5.43 (1.05) 5.14 (1.29)

0.53 0.55*** 0.68*** 0.60*** 0.29

Cleaning Cleanliness own workplace Cleanliness other interior Cleanliness sanitary areas

5.16 4.74 5.24 (0.95) 4.78 (1.33) 5.13 (0.97) 4.72 (1.31) 5.12 (1.13) 4.72 (1.44)

0.42 0.46** 0.41** 0.40*

Front office Helpfulness reception Level of knowledge reception Execution of concierge tasks Adequacy of call handling

5.60 5.41 5.99 (0.96) 5.77 (0.94) 5.59 (1.07) 5.48 (1.01) 5.56 (1.04) 5.31 (1.13) 5.25 (1.21) 5.06 (1.23)

0.19 0.22** 0.11 0.25* 0.19

Local printing Accessibility local printing Availability local printing

5.83 4.99 0.83 5.90 (0.90) 5.09 (1.26) 0.81*** 5.75 (1.11) 4.90 (1.36) 0.85***

Self-regulate building climate Self-regulate classroom climate Indoor climate buildings Indoor climate classrooms

4.03 (1.51) 3.85 (1.49) 4.46 (1.42) 4.50 (1.37)

¹ Sig. shows significance values for rejecting or retaining the null hypothesis indicating whether the distribution of items scores is the same across categories of position using Mann-Whitney U tests of sample pairs. When the test is significant (p < .05) the null hypothesis is rejected, indicating that there is a difference in perceived quality between the two groups concerned. Note: Significance at: *** p < .001, ** p < .01 and * p < .05.

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SECTION TWO: ADDED VALUE OF FM

EuroFM WG1 Introduction Added value of FM Per Anker Jensen, Convenor, EuroFM WG1 Added Value of FM CFM Realdania, DTU, Copenhagen, Denmark

Papers Adding Value by FM: an exploration of management practice in the Netherlands and Denmark Theo van der Voordt and Per Anker Jensen. Exploration of added value concepts in facilities management practice: learning from financial institutes Doranne Gerritse, Felix Bergsma and Brenda Groen Identity and image of FM: Two sides of a coin to promote value of FM Daniel von Felten, Manuel Böhm, Christian Coenen and Gregory Meier

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EuroFM WG1: The Added Value of FM Introduction Added Value of FM Per Anker Jensen Centre for Facilities Management – Realdania Research, Technical University of Denmark BACKGROUND The EuroFM research group on “The Added Value of FM” was established in 2009. The background for the collaborative research was that the perception and application of FM during the last decades gradually has shifted from primarily steering on cost reduction towards managing facilities as a strategic resource to add value to the organisation and its stakeholders and to contribute to its overall performance. Results of the work were presented in the anthology “The Added Value of Facilities Management – Concepts, Findings and Perspectives”, which was launched during EFMC in Copenhagen, May 2012. This was followed by a paper session as well as a workshop on the topic: How to manage and measure different value dimensions? during EFMC in Prague, May 2013. The research group has recently decided to work towards the publication of a second anthology with a more practical focus. Plans for this new publication will be presented at the session during EFMC in Berlin, June 2014. The session also includes presentations of the three papers mentioned below. THE THREE PAPERS In the first paper: “Adding Value by FM: an exploration of management practice in the Netherlands and Denmark”, van der Voordt and Jensen investigate practitioners’ perceptions of the concept of Added Value of FM and to what degree and how they work with managing and measuring the value of FM. The paper is based on interviews with 5 managers from different types of private companies in each of the two countries. All respondents mentioned different types of added values, without a clear classification. The most prioritized values were costs and satisfaction, followed by productivity, but there were some striking differences in the frequencies of prioritized values by Danish and Dutch respondents. In the second paper: “Exploration of added value concepts in facilities management practice: learning from financial institutes”, Gerritse, Bergsma and Groen aim to show the practicality of added value concepts for FM businesses in financial institutes. The study is based on a number of cases and focus group with experts in the Netherlands. The research showed that FM adds value (besides cost control) in the area of ‘support of productivity’, ‘risk control’, ‘increase satisfaction’, ‘support image’ and ‘increase sustainability’. The results are presented in a conceptual model for management of added value. In the third paper: “Identity and Image of FM: Two sides of a coin to promote value of FM”, von Felten, Böhm, Coenen and Meier focus on FM as an industry in Switzerland. By surveys with telephone interviews they explored both the image of FM among the general public and the identity among people working in the industry. One in five Swiss has heard the term Facility Management, but out of those only 10% were having a correct understanding of the term. The identity of FM is consistently higher than its image. This image deficiency could potentially be corrected by better communication from the FM industry. 40


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Adding Value by FM: an exploration of management practice in the Netherlands and Denmark Theo van der Voordt Delft University of Technology, Netherlands E: [email protected] T: +31 6 39251096 Per Anker Jensen Technical University of Denmark E: [email protected] ABSTRACT The last decade shows a growing attention into the concept of added value of Facilities Management and Corporate Real Estate Management and how to attain and measure added value. A variety of different types of added value came to the fore such as user value, customer value, financial value, environmental value and relationship value. Furthermore a huge variety of different definitions can be found in publications from different authors, partly depending on their disciplinary background and partly because some authors do not build on former research. In discussions with researchers and practitioners, the concept of added value is definitely recognized. However, people have many different topics in mind. In a workshop at EFMC 2013 all attendants used different terms and mentioned only a few concrete measures how to add value, mostly in rather abstract terms. Further research is needed to harmonize the concept of added value i.e. definitions, dimensions and types, and to be able to operationalize this concept into practical guidelines for implementation and measurement by Key Performance Indicators. This paper relates theoretical reflections on the added value of FM to the findings of ten interviews with practitioners from the Netherlands and Denmark. It aims to explore how practitioners cope with terms and definitions, which concrete FM measures are applied to add value, what value, and if/how managers measure whether the aimed added values have been attained. The paper ends with some reflections and suggestions for follow-up research, both from a theoretical and practical perspective. Keywords Facilities Management, Corporate Real Estate Management, Added Value, Performance, Value Adding Management. 1

INTRODUCTION

The added value of Facilities Management (FM) and Corporate Real Estate Management (CREM) has in recent years been one of the key issues in various annual European Facility Management Conferences and other conferences and publications worldwide. The growing interest in the concept of added value of FM and CREM might be related to the growing awareness of physical resources such as real estate and building related facilities and services being a strategic asset (Jensen et al., 2012). Facilities are more and more perceived as enablers of organizational productivity, business profitability, operational efficiency and effectiveness and

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end user satisfaction (Katchamart, 2013). The relevance of the added value concept is illustrated in the definitions of FM and CREM. According to CEN (2006) FM is “the integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of its primary activities”. This definition emphasizes the role of FM as an enabler of effective primary activities. According to Dewulf et al. (2000) corporate and public real estate management can be defined as “the alignment of the real estate portfolio of a corporation or public authority to the needs of the core business in order to obtain maximum added value for the business and to contribute optimally to the overall performance of the organisation”. This definition focuses on the added value of real estate and its contribution to organisational performance. Although there seems to be a high level of agreement about the relevance of added value of FM and CREM, a variety of different views can still be found in literature regarding the definition of added value, related stakeholders, types of values, and how to measure. a. Definitions. In Jensen et al. (2012) over 50 definitions of added value were traced. Various authors focus on the benefits i.e. the outcomes of facilities and services. For instance, De Vries et al. (2008) defined the added value of real estate as “the contribution of real estate to organisational performance and the attainment of organisational objectives from a point of view of different stakeholders”. As facilities involve investments and costs, others - including Jensen et al. (2012) - define the added value of FM/CREM as “the trade-off between the benefits and the costs and risks to achieve these benefits”. b. Stakeholders. Whereas various authors focus on the contribution of real estate to create shareholder value (e.g. Lindholm & Levaïnen, 2006; Lindholm, 2008), most current authors incorporate the interests of all stakeholders, including policy makers, controllers, technical managers, clients, customers, end users and society (De Vries et al., 2008; Den Heijer, 2011; Jensen et al., 2012; Van der Zwart & Van der Voordt, 2013; Van der Zwart, 2014; Riratanaphong, 2014). c. Value types. Based on a content analysis of sixteen chapters by authors from seven different countries and case studies from different sectors (offices, higher education, industry, health care), Jensen et al. (2012) detected six different types of added value: 1) use value (quality in relation to the needs and preferences of the users); 2) customer user value (trade-off between benefits and costs for the customers); 3) economic, financial or exchange value (the economic trade-off between costs and benefits); 4) social value (e.g. supporting positive social interaction or reinforcing social identity); 5) environmental value (Green FM, environmental impact of FM); and 6) relationship value (e.g. getting high-quality services or experiencing a special treatment). Other authors discuss different values as well, such as productivity, profitability and competitive advantage (De Vries et al., 2008) and sustainability (Den Heijer, 2011). Riratanaphong (2014) clustered the values mentioned by different authors into six categories according to Bradley (2002): Stakeholder perception, financial health, organisational development, productivity, environmental responsibility, and cost efficiency. d. Key Performance Indicators. The literature shows a huge variety of performance areas, performance measurement models and Key Performance Indicators (Riratanaphong et al., 2012), focusing on quality or costs, effectiveness or efficiency, productivity, flexibility, creativity or sustainability. Riratanaphong (2014) shows that in practice many different KPIs are being used as well.

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A workshop at EFMC 2013, that was organized by the authors of this paper together with Christian Coenen, ZHAW, confirmed that the concept of Added Value is interpreted in many ways and linked to a huge variety of different topics. Prioritization of different types of added value showed to be highly subjective and depends on the participant’s position, experience and personal beliefs. Most prioritized values included the contribution of FM and CREM to the quality of life, the productivity of the core business, user satisfaction and sustainability. The participants found it difficult to mention concrete measures how to add value, partly due to different interpretations of the term “measures” as “interventions” and “ways to measure”. The answers ranged from concrete measures such as evaluate happiness, satisfaction and work support, create energy savings in building retrofitting, and take care of shuttle busses and parking facilities for bikes, to abstract measures such as steering on economics, efficiency and effectiveness, or ‘good price & value for the client’. To conclude there is still much work to be done to clarify the concepts of added value, adding value and value adding management and to build a widely accepted framework of value types and ways to measure the impacts of different FM and CREM interventions. For this reason the EuroFM Research Network Group “The Added Value of FM” is continuing working on this topic by exchanging ideas, writing joint papers and supervising MSc and PhD theses. 2

RESEARCH METHOD

In order to further explore how people in practice cope with added value and if and how they incorporate this concept in their daily practice, ten interviews were conducted with experienced senior facility managers, corporate real estate managers, consultants and service providers, five in Denmark and five in the Netherlands (see Table 1). Table 1: List of interviewees Country DK1 DK2 DK3 DK4 DK5 NL1 NL2 NL3 NL4 NL5

Role In-house FM Consultant Consultant Provider Provider In-house CREM Consultant Consultant Consultant In-house FM

Company and function Novozymes, FM Director and FM Manager. Real-FM Consulting, Owner. Fm3, Owner. ISS Facility Services A/S, Division director Bilfinger HSG Facility Management A/S, Managing Director. Stork Technical Services, CRE Manager Suyker Consultancy, Owner. Gijs van Wijk Solutions, Owner. Skenn BV, Owner. Vimpelcom, Director of Real Estate

Criteria for selection were senior level of practical experience, a mix of FM and CREM professionals and a mix of in-house FM, service providers and consultants. All interviewees were from the private sector. The final sample represents various sectors such as biotechnology, technical services, maintenance management, FM service provider and consultancy, and functions such as in-house FM, consultant, and director. Educational backgrounds range from Master in FM to Building Engineer and from higher education in logistics, accounting or organisation to MBA in marketing or e-business and civil engineering, economics, town and country planning or economic geography. Years of experience range from 12 to 34 years.

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The questionnaire included a number of questions regarding:  The use of the term Added Value in daily practice, in which context or dialogue, on which levels (strategic, tactical, operational), and benefits and downsides of using Added Value in interactions between different actors.  Top five of main values, examples of concrete FM/CREM interventions, ways of measuring (KPIs) and documentation, and if/how benchmarking is applied in practice. 3. RESEARCH FINDINGS a. Use of Added Value in daily practice Almost all interviewees use the term Added Value (AV) in daily practice, in various settings:  Internally in in-house FM organisations, between FM organisation and corporate management, and within provider companies;  Externally between clients and providers (in contract negotiations and on-going collaboration), clients and consultants, and clients and deliverer of IT-systems and equipment The AV-concept is both used to demonstrate the added value of ones’ own function or FM/ CREM department and to discuss the added value of FM- or CREM-interventions. Related terms are Value Creation, Value Increase, Appreciation, Total Value Add (TVA) and Economic Value Added (EVA). In the nineties AV was mainly linked to Economic Value Add and Shareholder Value, whereas nowadays the concept has a wider scope, depending on the person you talk with e.g. a CEO, operational manager, supplier or end user. One of the advantages of applying the AV-concept is that the dialogue is moved away from the contractual agreement and the SLA’s. According to one respondents: ”It makes the customer feel that you are interested in his business and not just in submitting the next bill. It makes is possible to raise the level of the whole FM provision”. It helps to speak the language that top managers understand. Downsides of the AVconcept are that AV is perceived differently by different people and difficult to be made concrete and operational and to document. AV concerns things that cannot always be measured in economic terms. It is very important to understand which value is most important for the client or customer and what he or she really needs (often more than simply solve the current problem). In addition to sound data, storytelling can also be used to convince clients of the added value of FM and CREM provisions and proposed interventions. Most practitioners perceive AV as the trade-off between benefits and costs and steer on value for money and making the Core Business more effective. The term AV is connected to Value, which both has an economical meaning and meanings related to feelings and other subjective and qualitative aspects such as comfort, making complex things simpler and easier to be managed, and high speed delivery. Various interviewees made a distinction between what they called hard economic aspects and more soft aspects related to Health, Safety, Environment and Quality. Though the term AV is not always used explicitly, practice is always concerned about balancing between the benefits of e.g. flexibility of short term contracts, speed of delivery or better quality and the costs of extra investments or higher running costs. AV depends very much on the client’s perception. One of the service providers makes a distinction between the value they provide as part of their standard package at the start of a new contract, and the value they create during the contract. The latter changes a lot depending on what is important for the customer over time.

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The focus on particular types of value depends on the involved stakeholders. According to one of the CREM-interviewees:  Shareholders focus almost one-sidedly on a high Return on Investment and low risk, costs and reliabilities.  The Board of Management usually connects added value to their strategic vision and policy and steer on maximum turnover (volume of business), minimum costs, and a high Ebit (earnings before interest and taxation).  Heads of regional units have to cope with both top-management needs (profit), regional customers and employee requirements. They try to find a balance between cost reduction and benefits such as attraction and retention of talented staff.  Site managers focus more on operational issues and employee satisfaction. There is also a difference in value adding management on strategic, tactical and operational level. According to one of the CRE-managers adding value on strategic level regards developing site master plans and implementing the real estate strategy. Its focus is on the long term decisions and avoidance of complaints. AV on tactical level regards for instance speed of delivery and to do what is being asked. Issues on operational level include cost reduction, employee satisfaction and customer satisfaction. Although AV is mostly treated on strategic level, it is of relevance on all levels and for everybody in the FM organisation. It should be part of the organisational culture. However, according to one respondent FM is not really a strategic issue in most organisations and CEOs are not really interested in FM. Talking about AV on operational level can even be counterproductive because “operational managers don’t have a clue of what AV actually means”. Focus points in FM also depend on the context. When the economy is booming, avoiding dissatisfaction and commotion might be key issues, whereas in times of economic recession cost reduction will be in the core. The size of the company is a factor as well. In small firms FM is mainly operational. b. Prioritized values The interviewees were asked as an open question “What is your top five of main values to be included in management of accommodations, facilities and services?” The responses per respondent are collected in Table 2. The abbreviations between brackets refer to the list of impact parameters in Table 3, see explanation in the text below. One of the respondents stressed that the priority depends on the customer. The open question was followed up by asking for examples of concrete FM interventions to attain these added values, about use of KPI’s to measure if the aimed added values are attained, about benchmarking with data from other organisations and about other methods to document added value. Table 3 depicts the frequencies of the main values from Table 2 categorised according to the impact parameters from the FM Value Map, see explanation in the text below. The responses are divided in Danish and Dutch interviewees and in total.

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Table 2: Main values from open question (impact parameters from table 3 in brackets) ID

1

2

3

4

5

DK1-INH

Transparency of cost and priorities (C)

Scalability (A)

Release management resources (P)

User satisfaction (S)

Satisfaction with service provider (S)

DK2-CON

Core Business objectives (A)

Innovation (C)

Coherent strategy between Core Business and FM (A)

Productivity of Core Business (P)

Communication (S)

DK3-CON

Create time (P)

Create well-being (S)

DK4-PRO

Satisfaction of outsourced staff (S)

Make processes smarter (C) (P)

Improvements and innovation (P)

User centricity and service orientation (S)

Corporate Social Responsibility (E)

DK5-PRO

Increase energy conscience and CO2 emissions (E)

Ease of operation (P) (C)

Deliver better service with less or the same cost (S) (C)

Satisfaction (S)

NL1-INH

Profit (ebit); improving cash position (C)

Cost reduction (C)

Transparency of Real Estate data for shareholders (C)

NL2-CON

Cost reduction (C)

Affordability (C)

NL3-CON

Sustainability (E)

Cost reduction (C)

Identity (Cu)

NL4-CON

Cost reduction (C)

Improving Core Business / Productivity (P)

Health (S)

NL5-INH

Efficient use of space (C)

Forecasting future m2-needs (A)

Balance between owned buildings, rented buildings and sale & lease back (C)

Satisfaction (S)

Forecasting of future capital need (C)

Engagement (Cu)

Table 3: Frequency of the main values in Table 2 related to impact parameters from to the FM Value Map Abbr.

Impact parameter

Denmark

Netherlands

Total

24 (100%)

17 (100%)

41 (100%)

S

Satisfaction

8 (33%)

2 (12%)

10 (24%)

C

Cost

5 (21%)

10 (59%)

15 (37%)

P

Productivity

6 (25%)

1 (6%)

7 (17%)

R

Reliability

A

Adaptation

3 (13%)

1 (6%)

4 (10%)

Cu

Culture

2 (12%)

2 (5%)

Ec

Economic

So

Social

Sp

Spatial

E

Environmental

1 (6%)

3 (7%)

2 (8%)

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Table 3 shows that values related to Satisfaction and Cost are most frequently prioritized, but with a striking difference between the interviewees from Denmark and the Netherlands. Satisfaction is seen as much more important than Cost in Denmark, while Cost is seen as much more important than Satisfaction in the Netherlands. Productivity is also important, but mostly in Denmark. Values in relation to Adaptation and Environmental are also mentioned in both countries, while Culture only is represented in the Netherlands. The remaining four impact factors – Reliability, Economic, Social and Spatial are not represented in the response to the open question. The open question on main values and the mentioned related questions were followed by a more closed question based on showing a list of possible added values found in literature and asking how these values are related to the prioritised main values. The list was based on the impact parameters (outcomes) from the FM Value Map (Jensen, 2010) and was divided in impacts on core business (Satisfaction, Cost, Productivity, Reliability, Adaptability and Culture) and impacts on surroundings (Economic, Social, Spatial, and Environmental), see also Table 3. In response to this more closed question all possible outcomes have been discussed with the respondents. In the following each of the impact parameters are commented on based on the interview results. Impact on core business Satisfaction is defined as the impact of FM or CREM on satisfaction of customers, staff/end users and owners. One of the respondents mentions that customer satisfaction has been most important but user satisfaction has become increasingly important, too. Satisfaction is a very subjective parameter and is often measured quantitatively by surveys or more qualitatively. for instance by mystery visits. Surveys results are often benchmarked across organisations. Cost is defined as operational cost, staff turnover and capital investments. Cost reduction is obviously an important mean, but transparency is also mentioned by interviewees from in-house FM in Denmark and in-house CREM in the Netherlands. An interviewee from a provider mentions that cost primarily has major attention, when there is a problem. Cost impacts are obviously often measured and also benchmarked, both in € and m2 per person (f.t.e.) or per workplace, occupancy level, total costs of ownership per m2, or in terms of affordability, e.g. the ratio between facility costs and total costs of running a business. Productivity is defined as efficiency, low staff absence and effectiveness. Impact on core business productivity can be difficult to measure, but a typical way for providers is to measure the number of proposals for improvements and innovations. Often productivity impact is not measured directly but addressed more qualitatively in discussions, business cases and performance reviews. Impact on productivity is rarely benchmarked. Reliability is defined as business continuity, security and safety. The respondents’ views on reliability varied a lot. One view is that reliability is at the lowest level of the Maslow pyramid of needs and therefore is not a motivation factor, which can add value. Another view is that business continuity has become increasingly important. For one of the interviewees it has top priority, e.g. regarding fire safety and data security. An interviewee in a biotech company

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mentions that down time is important to control and that compliance to legal requirements has top priority. Reliability is mostly measured in terms of response time and business continuity and is not often benchmarked. Adaptation is defined as foresight, flexibility and responsiveness. Adaptation is mostly considered on a high management level in relation to capital investments and contract negotiations. An in-house CREM interviewee mentions that technical flexibility and flexibility in renting are becoming more important. Adaptation is rarely measured or benchmarked. Culture is defined as organizational identity, corporate image and corporate brand. For some companies branding is important, but not for others. Some view culture as related to the image of FM and not as a corporate concern. An interviewee from the Netherlands mentions monitoring the image of FM internally (employee monitor) and externally (customer monitor) and remarks that external image is often more important than internal image. Engagement, i.e. a sense of belonging and being committed to the company, has been mentioned once as well. Impact on surroundings Economic is defined as income, commerce and tax. Some of the interviewees did not understand this parameter, and asked for a more clear definition. Others regard the economic impact of FM on society to be mostly indirect. However, one interviewee claims that economic impact is his company’s reason for being. There are no examples of measuring and benchmarking economic impact. Social is defined as employment, education and integration. Social impact can be important in relation to location of new facilities, and it is important for some service providers in terms of integration. As examples of measures of social impact an interviewee from a provider mentions number of apprentices and number of handicapped among staff. Spatial is defined as architectural expression, landscaping and townscaping. Spatial impact is mostly important for in-house FM/CREM organisations and specialist consultants and is rarely important for service providers. An in-house FM mentions that they participate in working groups with the local municipality concerning transportation and infrastructure. There are no examples of measuring and benchmarking spatial impact. Environmental is defined as resource consumption, pollution and environmental sustainability. There are clear indications that sustainability has become increasingly important, but it is still not given high priority in many companies. The environmental impact is typically measured and benchmarked quantitatively in terms of energy consumption, but in some cases also documented qualitatively in terms of choice of environmental suitable materials and treatment of chemicals. c. Value adding management One of the interviewees pointed to Maslow’s pyramid of needs as a starting point for management of value. In his own words: “FM does not create value by supporting the lower levels in the pyramid. They are taken for granted and you will get criticism, if they are not

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fulfilled, but you will not receive any appreciation, if they are fulfilled. That is just doing the work that is necessary. To be appreciated you need to deliver something that is beyond basic expectations.” Besides KPI’s there are a number of other ways to visualise or document added value. Providers often prepare performance reviews with fixed intervals to their customers. Other examples are business cases for specific initiatives and reports on finished projects. Added value is also included in the communication with stakeholders in less formal ways as part of on-going dialogue and storytelling. Management of expectations is an important aspect of adding value. One of the providers have attempted to make an annual added value report on key accounts, but they have not yet managed to find the right way to meet the customers’ expectations – 2013, however, will be the first year where they have a draft. Their experience with using Balanced Scorecard is that the economic and people perspectives are quite easy to document, while the customer and process perspectives are much more difficult to measure. It also depends a lot on what triggers the specific customer and user. d. Topics for future research Various interviewees expressed a need for a clear framework that links concrete FM and CREM interventions to well defined types of Added Value, Key Performance Areas and KPIs. Furthermore there is an urgent need for best practices, empirical data and stories to illustrate the possible AV of various FM or CREM interventions to CEOs, clients, customers and end users. Other issues for further discussion and research came on the table as well, e.g.:  Relate AV to the context (Anglo-Saxian countries versus Europe, USA, Asia) and sector (e.g. offices versus health care, education, industry.  Learn from other disciplines such as economy. Make a clear distinction between market value of RE and value of RE for the business.  Pay attention to AV in historical perspective and how the concept developed.  Include AV of ownership versus renting of buildings in connection to mainstream and company focused buildings, flexibility, costs.  How to improve the impact of FM on macro level?  How to cope with growing vacancy? What is or could be the role of FM when FM interventions result in lower space demand? In addition a number of issues were proposed to be discussed in EuroFM meetings and at EFMC conferences, for instance: What to do in case of conflicting values/wishes (e.g. between organisation and end users? Is it possible to argue for the value of sustainability not only because it makes business sense but also regarding the AV of sustainability itself? What are the relationship between FM & Asset Management i.e. how do they overlap and what is their uniqueness?

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4. DISCUSSION AND CONCLUSION Regarding the definition of added value all respondents refer to both benefits and costs of FM/CREM interventions. Benefits are mainly linked to clients, customers and end users but also to shareholders and – less often - to society as a whole. All respondents include different types of added values, without a clear classification into for instance user value versus customer value, or economic value versus environmental value. Practitioners mainly steer on the impact of FM and CREM on the core business and organisational performance, and this is also essential in provider companies’ sales arguments. Prioritized values are costs and satisfaction, followed by productivity. Remarkably, four out of ten outcome parameters - reliability and economic, social and spatial impact on the surroundings - were not spontaneously mentioned at all in response to the open question about prioritized values. These issues came only to the fore when we asked for comments on the list of possible added values that was shown after the open questions. Not all values showed on the list – in particular possible impacts on the surroundings – did immediately ring a bell and raised different interpretations or misunderstanding. Sustainability was mainly perceived as a building characteristic. Most respondents made no clear distinction between impacts on the core business and impacts on the surroundings, and focussed more on a distinction between interventions regarding buildings and building related facilities and services versus choices regarding the location and the surroundings. Because practitioners use different terms, various responses could not be allocated clearly to one particular value. There were some striking differences in the frequencies of prioritized values by Danish and Dutch respondents. This might be caused by the different contexts but also by the selection of respondents with more Dutch representatives from CREM than in the Danish sample (due to the CREM background of the first author). More interviews are needed to get a more complete picture. The topics for further research that were mentioned by the interviewees are in line with the findings from the EFMC 2013 workshop that was summarised in the introduction section. The EFMC 2013 participants also showed much interest in the development of a holistic framework that can bring together various elements of FM activities and practices, and concrete ways how FM can contribute to a more sustainable use of office buildings by office users themselves, productivity support, retaining employees and attracting talented new employees, and add value to society. Another issue is what arguments FM could use other than economy to get the CEO interested in FM as a leadership tool/discipline, and how to visualize AV. Although in the last decade various conceptual models and frameworks have been developed to visualize the added value of FM and CREM (De Vries et al., 2008; Lindholm, 2008; Jensen, 2010; Den Heijer, 2011, apparently academic contributions to this research area are not ready to be implemented into daily practice. An important next step is to integrate the insights of the FM Value Map and other FM and CREM models into a holistic framework, to illustrate adding value by FM/CREM by best practices and data from empirical research, and easy-to-apply KPIs.

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REFERENCES CEN (2006, Facility Management – Part 1: Terms and definitions. EN 15221-1. Bradley, S. (2002). What’s working? Briefing and evaluating workplace performance improvement. Journal of Corporate Real Estate,, 4(2), 150-159. De Vries, J. C., De Jonge, H., & Van der Voordt, D. J. M. (2008). Impact of real estate interventions on organisational performance. Journal of Corporate Real Estate, 10(3), 208-223. Den Heijer, A. (2011). Managing the University Campus: Information to support real estate decisions. PhD dissertation: Delft University of Technology. Dewulf, G., Krumm, P., & De Jonge, H. (2000). Successful corporate real estate strategies. Nieuwegein: Arko Publishers. Jensen, P. A. (2010). The Facilities Management Value Map: a conceptual framework. Facilities, 28(3/4), 175-188. Jensen, P.A., Sarasoja, A.L., Van der Voordt, T. & Coenen, C. (2013), How can Facilities Management add value to organisations as well as to society? Conference paper. Brisbane, Australia: CIB World Building Congress, 5-9 May 2013. Jensen, P. A., Van der Voordt, D. J. M., & Coenen, C. (2012). The added value of facilities management: concepts, findings and perspectives. Lyngby Denmark: Polyteknisk Forlag. Katchamart, P. (2013). Profiling value added position in FM. Copenhagen: Technical University of Denmark & Centre for Facilities Management (CFM) – Realdania Research. Lindholm, A.-L. (2008). Identifying and measuring the success of corporate real estate management. Doctoral Dissertation, Helsinki University of Technology. Lindholm, A.L. & Leväinen, K. I. (2006). A framework for identifying and measuring value added by corporate real estate. Journal of Corporate Real Estate, 8(1), 38-46. Riratanaphong, C., Van der Voordt, T., & Sarasoja, A.-L. (2012). Performance measurement in the context of CREM and FM. In P. A. Jensen, T. Van der Voortdt & C. Coenen (Eds.), The added value of facilities management: concepts, findings and perspectives (pp. 127-149). Lyngby Denmark: Polyteknisk Forlag. Riratanaphong, C., (2014), Performance measurement of workplace change in two different cultural contexts. PhD-Thesis. Delft: Delft University of Technology. Van der Zwart, J. (2014), Hospital real estate management in a changing context. PhD-thesis. Delft: Delft University of Technology. Van der Zwart, J. & Van der Voordt, T. (2013). Value adding management of hospital real estate. Balancing between different stakeholders’ perspectives. E-Hospital Vol. 15, no. 3, 13, 15-17.

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Exploration of added value concepts in facilities management practice: learning from financial institutes D.Gerritse Saxion University of Applied Sciences [email protected] +31(0)612549450 F.H.J.Bergsma Saxion University of Applied Sciences [email protected] B.H.Groen Saxion University of Applied Sciences [email protected] ABSTRACT Purpose: The role of intangible assets has drawn attention in facilities management and real estate. There is a call for further development of FM performance beyond costs to capture, demonstrate and manage the total value of FM for core business and corporate performance. This research aims to show the practicality of added value concepts for FM businesses in financial institutes. Design/methodology: The research approach is based on the work of Jensen. Literature review leads to methods for exploring added value in business practice. The fieldwork included an exploratory case study at 6 financial institutes and one in-depth case study. Core topics were explored in a focus group consisting of 5 experts. Findings: The results give clarification on themes and issues in the area of added value. Furthermore, the paper gives insights on the added value of FM at six Dutch financial institutes. Interviews with FM staff in the involved institutes showed that FM adds value (besides cost control) in the area of ‘support of productivity’, ‘risk control’, ‘increase satisfaction’, ‘support image’ and ‘increase sustainability’. The in-depth case study illustrates how management of added value can be integrated in FM operations. Results are presented in a conceptual model for management of added value. Originality/value: The research contributes to existing knowledge by bringing new perspectives on added value in financial institutes. Keywords FACILITIES MANAGEMENT, ADDED VALUE, INTANGIBLE PERFORMANCE INDICATORS. 1 INTRODUCTION Even though Amaratunga et al. already stated in 2000 "For FM to grow as a discipline, a paradigm shift is required from focusing purely on premises costs to looking at holistic business performance", the performance of facility management is still often defined solely in terms of costs and efficiency (Amaratunga et al., 2000). The issue is, how could facilities management (FM) create value for a business corporation, other than financial value?

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Low (2000) in The Cap Gemini Ernst & Young Centre for Business Innovation (CBI) conducted a series of studies on the role of intangibles in creating value in a modern corporation. Nine nonfinancial value drivers were developed to create a value creation index that can indicate the total company performance across the most critical intangible categories (Low, 2000). CBI concluded that of the nine value drivers, the factors ‘innovation’, ‘management quality’ and ‘employee relations’ have the greatest impact on market value for the involved S&P500 companies. The role of intangible assets has also drawn attention in FM and real estate management. Added value of FM is one of the three main themes of the Research Network Group of EFMC, and Jensen et al. (2010, 2012) described and confirmed the importance of a change from initial focus on cost reduction in FM towards a more strategic orientation actively supporting the core business. FM should become more effective and add value to the core business and should change focus towards understanding and managing the total business impacts and effects of FM. A more holistic way of performance management in FM is required to be able to get out of the area of cost reductions and to remain (or become) a strategic partner in organizational planning and change in the organization. Also Alexander (1992), Lindholm (2008), De Vries & De Jonge (2004) and Vader (2011) recognize the insufficiency of solely cost-related performance factors in FM practices. Furthermore, in 2012 IFMA conducted a survey amongst executives asking them to evaluate the importance of FM for their company; 73% indicated that FM has a positive impact on the competitiveness of the company (IFMA, 2012). Similar developments are seen in FM operations in Dutch environment. The Netherlands Facility Cost Index is currently working on expanding its benchmarking activities by adding new perspectives of FM performance to the existing cost and customer satisfaction perspectives, namely service levels and sustainability performance. Therefore, the aim of this paper is to propose and test a conceptual model (tool) to demonstrate non-financial and holistic contributions of FM for core businesses. Large financial institutions were chosen, being exemplary for corporations with FM at strategic level. 2. THEORETICAL BACKGROUND The FM Value Map created by Jensen (2010) captures the added value of FM in the context of the organization to which services and products are provided as well as the surroundings and stakeholders of the organization. Jensen distinguishes exchange value and use value as contributions of FM for the core business. Exchange value is the traditional cost-related value, but use value expresses the intangible values of FM, expressed in non-financial, qualitative change in output, e.g. higher customer satisfaction. Jensen concluded that the purpose of FM is to create value for internal customers by supporting the core business; the purpose of the core business is to create value for external customers/stakeholders. He distinguished six areas in which effectiveness of FM leads to a certain impact in the core business of the corporate being: cost, satisfaction, productivity, reliability, adaptation and culture. Similar to this view, Lindholm (2008) investigated the added value of Real Estate and developed a model as a response to the need of corporate real estate managers to be able to demonstrate the total benefits of the corporate real estate management for the core business. Van der Zwart (2011) proposed nine added values of corporate real estate management (CREM) (see Table 1). Prevosth and Van der Voordt (2011) applied the nine added values of Van der Zwart in a FM context in six hospitals. The effect on user satisfaction was considered the most important one according to health care facility managers.

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Table 1 The added value of FM or CREM for core business.

Jensen (2010) cost productivity customer and staff satisfaction adaptation culture reliability economical (surroundings) social (surroundings) spatial (surroundings) environmental (surroundings)

Lindholm (2008) reduce cost increase productivity increase employee satisfaction increase flexibility increase innovations promote marketing & sales increase value of assets

Van der Zwart (2011) reducing cost improving productivity increasing (user) satisfaction improving flexibility improving culture supporting image increasing innovation controlling risks improving the financial position

Looking at the discussed studies and the applied methods to explore or ‘map’ added value, identification of operational interventions or critical success factors (CSF’s) appeared to be suitable to obtain an understanding of the total added value. In addition, mapping these interventions (or CSF’s) enables development of performance indicators in order to increase the measurability of the total added value. The methods applied by Lindholm (2008) and Prevosth & Van der Voordt (2011) were used to design the empirical part in this research project. Both Lindholm and Prevosth & Van der Voordt applied case study research with semi-structured interviews with real estate managers respectively facilities managers. Focus of the research has been on understanding the priorities in FM or Real Estate management, definitions of added value according to these managers and identification of real estate or FM interventions contributing to corporate performance. Learning from CREM theory in this topic, relations between real estate strategies and corporate performance enable real estate managers to enhance added value (Scheffer et al. 2006) and therefore is included in the case studies in this research. 3 METHODOLOGY Based on a literature review, a preliminary value map was drafted. This value map was developed and validated in a three-step research project. First, exploratory research was conducted in six Dutch financial organizations (4 banks and 2 insurance companies), in the largest segment (between 6,800 and 27,500 employees). In each organization, semi-structured interviews of approximately 1.5 hours were conducted with the Facilities Director or other representative strategic function in the FM department. Data was analysed by open and axial coding, and subsequent cross-case analysis. Additionally, internal documents and annual reports were analysed to identify both tangible and intangible corporate performance. Second, one in-dept case study has been conducted at one of the involved banks to explore practical application of added value management at end-user level. The case illustrates how the facilities manager is able to assess its added value at end-user level and shows appreciation of the various facilities management values in the experience of the end-users (users of the office buildings). The case study includes a survey amongst end-users of the office buildings of the organization (random sample of 6600 people, response rate of 33%; 2163 responses). Third, issues raised during the literature review and case studies were discussed in a focus group of 2 hours with 5 FM experts. The participants were selected on their experience and expertise

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regarding the topic and included one expert/researcher in added value of FM, three FM experts from the banking industry and one FM expert from a health care organization. 4 FINDINGS This paragraph presents the results of the (focus group) interviews (4.1-4.4), followed by an indepth case study that illustrates how the conceptual model can be used in business practice (4.5). 4.1 Focus group interviews The aim of the focus group interview was to explore issues and phenomena regarding strategic management of added value based on a literature review. Experts in the focus group discussed issues to clarify or confirm issues or phenomena and also suggested additional perspectives. The results are summarized in Table 2. Table 2 Core topics discussed in focus group interview

Topic 1. Strategic involvement in corporate planning

Findings Respondents agreed that FM is not always timely and at the right place (in the organization) involved in the design of optimal core business processes and therefore hindered in optimizing its contributions. According the experts this is due to the fact that stakeholders do not know which (strategic) added value FM can contribute and hesitate to involve FM. Also, FM doesn’t always have the resources to clarify its contributions. Measurement and benchmark of the traditional 3 performance criteria of FM (costs, customer satisfaction and quality) is not always sufficient.

Results confirmed the efficiency and effectiveness theory of Jensen (2010). The focus group mentioned that efficiency is considered to have boundaries in which the investment is not effective anymore. Reducing costs in the working environment can be beneficial for financial purposes; this however may have a negative effect in other areas when pushed to the limit (for example image or productivity). To determine the tipping point between efficiency and effectiveness, measurement of satisfaction is indicated as one of the possible tools. Respondents discussed determinants of added value. Social context, 3. Determinants history, and sector are indicated as determinants. Social context is of added value considered to be the influence of trends, developments or events in the social context of the organization that influence management decisions. Old buildings or out-dated installations are considered to be the inherit of the organization; these influence the experienced service level. Sector determines the primary process and the required added value. Respondents indicated the need to integrate qualitative performance 4. Qualitative indicators in assessing FM performance. The degree in which a performance contribution is made to corporate objectives should be integrated in FM indicators performance and accountability especially in the area of intangible performance (like image, productivity, and culture). 4.2 Exploration of concepts of added value at six financial institutes The main part of the research consisted of a case study approach that identifies how the FM organizations add value to the core business. Based on research methods used by Prevosth & Van der Voordt (2011) and Lindholm (2008) the interviewees (Facility Director or strategic FM 2. Efficiency vs. effectiveness

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function) defined the added value of FM for the organization and indicated the top 5 of most important FM values. Ten added values were selected to use in the empirical research, derived from Lindholm (2008), Jensen (2010), Van der Zwart (2011), Prevosth & Van der Voordt (2011) and Vader (2011). The values were selected by their relevance for the sector where the research took place, namely financial organizations with office environment. The following values were used to structure the interview process: reduce and control costs increase innovation increase satisfaction increase flexibility increase productivity support/improve culture increase sustainability increase value of assets risk control support image Interviewees were asked to discuss the importance of the values, prioritise the values, indicate the most important Critical Success Factors (CSF’s) in each value, and discuss the accountability process of FM towards top management. Definition of added value Because of the similar primary process in the organizations, similar answers came to the table as a response to the question to define the added value of the FM department for the organization. The following definition could be drawn from the interviews: “Provision of an effective, inspiring and comfortable working environment in a cost efficient manner in which quality level and costs are balanced; the facilities optimally support the core business and contribute to the image of the organization.” The provision of an effective working environment for (knowledge) workers in the financial institutes appeared to be the most important contribution of FM for the organization. In addition, FM appeared to be of value for an organization when being able to find the optimal balance between costs and quality. There is a clear preference and need for cost reductions or cost control by FM. However, the results also indicate that pursuing cost reductions is going to have a negative effect in other areas if not in balance with effectiveness (e.g. decreased productivity of employees, decreased customers satisfaction or reputational damage). In addition, the results show the influence of the present time: all respondents indicated the influence of the current financial crisis on their current FM policy. Other elements of added value indicated by the respondents were related to relational qualities and other competencies of FM. Respondents indicated the following competencies essential for adding value: ‐ ‐ ‐

centralized management of FM bring specific FM expertise into the organization being able to fully understand and align with customers’ needs.

Priorities of the FM department Secondly, respondents were asked to rank the 10 values in order of importance for the FM operations (Table 3). The number in this table indicates how many respondents considered a specific value to be in the top five. The importance of increasing productivity and control of costs is reflected in the top 1 and 2 position, similar to the definition of added value the respondents gave in the interviews. Furthermore, the results showed that in the area of ‘image’, the financial organizations appeared to put in special effort, leaning on the importance of a solid image as a financial institute. In addition, ’risk control’ appeared to be a main priority as well, 56


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closely related to thhe ‘image’ value. Conttinuity of business is cconsidered tto be a succcess factor for the iimage of finnancial instittutes and therefore requuires risk coontrol in the operations as well. Taable 3 Rankinng of FM vallues at 6 finaancial instituttes (x-axis indicates repreesentation of a valuue in the top 5).

In the tthird part of o the intervview the respondents were w askedd to indicatee the most important Critical Success Faactors (CSF’s) in each value. v The m most imporrtant interveentions that enhance a positivee contributioon to core buusiness perfformance foor the value of ‘cost conntrol’ were: reduction of m2, smart contraact managem ment, improvement of tthe workplaace ratio, andd economiees of scale. were: flexibbility of woorkplace annd workplacce lay-out, Intervenntions that iincrease prooductivity w Activityy Based Woorking, insppiring envirronment (am mbiance andd appearancce), and accessibility and avaailability of workplacess. For the ‘iimage’ valuue interview wees identifiied appearannce of the built ennvironment,, maintenannce, interioor design, ssustainable design, hoostmanship, and risk management as FM M success factors. A An overview w of indicaated CSF’s are mapped in the concepttual model (Figure 1). Relationn with corpoorate intanggible perform mance areass Intangibble assets aat corporatee level weree identifiedd by analysiis of non-fi financial perrformance parametters present in annual reports. The intangible performanc p e areas werre confronted with the results oof the intervviews. The top 5 addeed values annd associateed interventions indicatted by the FM resppondents weere compareed with the iintangible aassets of the organizatioon. Importannt areas of impact bby FM that were found as intangibble assets of the financiaal institutes were: ‐ ‐ ‐

Risk control; eespecially appplicable in the financial instiitutes where buusiness continnuity is importtant to avoid R d detrimental efffects to the coore business annd image. C Contribute to being a respoonsible and atttractive emplloyer; the officce environmennt (e.g. The N New Way of W Working) andd image of thhe organizatioon play an im mportant role in the ‘battlee for talents’ as well as o opportunities tto create a goood work/life bbalance. O Optimizing coore business; eefforts in FM services and products that optimally aliggn with the coore business s strategy and ooptimise execuution of primarry processes.

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Sustainability; by taking responsibility as an organization towards the environment and working conditions, in some cases translated into labels or indexes. FM interventions directly or indirectly contribute to these objectives.

4.3 Conceptual model The results of the case studies and the literature review were combined into a conceptual model. The aim of the model is to provide FM departments in the banking industry with a practical tool to reveal their contributions to the core business in a broader perspective. The conceptual models of Lindholm and Jensen were used as a starting point to map the various added values for FM. Alike the method of Lindholm (2008), the aim was to map the specific FM (and real estate in cases where the FM department is responsible for real estate) measures and interventions in each value area towards FM value-adding strategies. CSF’s were derived from the interviews as well as literature review leading towards value-adding strategies for financial organizations with office buildings. Analysis of policy documents and the nature of service provision of the FM department delivered the relations between the value areas and the intangible corporate performance areas. The conceptual model is illustrated in Figure 1. The model incorporates the theory of Jensen (2010) regarding effectiveness and efficiency (use value and exchange value), showing two ways of adding value: FM interventions can contribute to (or damage) either the finance position of the organization or contribute to other intangible assets that support or enhance the differentiation strategy (non-financial assets). 4.4 Demonstrating and measuring added value The last part of the interviews included questions regarding the accountability process of FM towards top management. The interviews confirmed findings from Prevosth and Van der Voordt (2011) in the healthcare sector that emphasised the importance of FM policy to align with corporate policies. The interviews at the six financial institutes confirm these findings. However, findings also identified a gap in the performance measurement and accountability of FM. An analysis of policy documents and interview results showed that the accountability process of FM towards top management does not or only partially cover the prior values of FM. The process shows only little representation of other (intangible) assets beyond cost, quality and customer satisfaction.

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Figure 1 Conceptuall model for ddemonstratingg added (excchange and usse) value (baased on: Jenseen (2010), Lindhoolm (2008), P Prevosth & V Van der Voorddt (2011).

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The FM performance indicators integrated in the accountability process towards top management are (number in brackets indicates how many financial institutes mentioned this indicator):      

FM costs (6) Customer satisfaction (6) Service Level Agreements (4) Risk control (3) Sustainability performance (2) Productivity measurement as part of implementation of The New Way of Working (survey assessing the effect on perceived productivity of the employee)(1) or occupancy level of office space (2)  Value of physical assets by measuring vacancy and occupancy rate (1)

A confrontation of these results with the results of the top 5 of added values showed gaps in the areas of ‘productivity’, ‘support of image’, ‘innovation’, ‘support of culture’, ‘flexibility’ and ‘increase value of assets’. FM respondents explained that current measurement systems do not cover these contributions, preventing or limiting demonstration of FM contributions to these topics. 4.5 Case study on integration of added value concept in business practice The last part of the research covers one in-depth case study that illustrates how the various values of FM might operate in FM practice. ING Facility Management (ING FM) participated as a case study in which the practical applicability of added value was tested. ING Netherlands is a financial institute with approximately 16.200 employees in the Netherlands working at head offices, serviced by ING FM, the FM department. The case study shows how ING FM has implemented value management. Questions regarding the ten values in the conceptual model were integrated in the annual customer satisfaction survey that was conducted amongst 2163 end-users of facilities management products and services in the office buildings of ING. Furthermore, the survey contained questions regarding how valuable certain services in the value areas are to the end-user. The survey addressed questions regarding the experience with these services and the importance of the service for the respondent as follows: ‘’How important is it for you that ING FM provides… access control?’’ Respondents indicated the level of importance with a mark between 1 and 10. Table 4 illustrates the appreciation of end-users with the values and the specific topics that were addressed. The results generated a ranking of values of FM that are important to the end-users of the buildings. Risk control ranked highest (8.3) and support culture lowest (7.2). Analysis of the services that contribute to each of the values showed that employees most value: a comfortable, suitable workspace, security and access control, (free) provision of hot beverages, and parking space. Least valued was a new mail delivery service (5.7). Vending machines, banqueting services, external archives, and provision of furniture for a workspace at home also ranked low. The case study showed that risk control, support of productivity as well as satisfaction are priority values for the end-users of the ING buildings. The interview with the FM director (before the survey took place) showed that ‘increase productivity’, ‘increase satisfaction’, ‘cost control’, ‘risk control’, and ‘sustainability’ were indicated as the top 5 priority areas of FM.

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Table 4 Results of end-user survey at ING Netherlands showing appreciation of FM values. Added value

Service aspects (how important is…. for you?)

Mean

Risk control

security (in and around the office building) use of access passes for offices compliance of risk policy with (national) guidelines availability of hot beverages (coffee/tea) free hot beverages (coffee/tea) clean office and workspace availability of car parking hospitality at reception/entrance availability of bicycle parking restaurant or food corner in office buildings vending machines with cold beverages and snacks ING takes into account sustainable use of energy and water separate collection of sustainable waste in offices sustainable facilities and fitment in buildings innovation in office environment (e.g. New Ways of Working)

Increase satisfaction

Increase sustainability Value of assets Increase innovation Increase flexibility Support image

Increase productivity

Cost Support culture

Mean for value

8.6 8.3 8.0 8.6 8.4 8.3 8.3 8.0 7.6 7.1 6.4 8.0 7.6 7.7 7.6

Std. deviation 1.4 (n=2043) 1.6 (n=2045) 1.7 (n=2041) 1.4 (n=2075) 1.7 (n=2072) 1.1 (n=2066) 1.9 (n=1906) 1.5 (n=2054) 2.3 (n=1718) 1.9 (n=2070) 2.2 (n=2071) 1.7 (n=2022) 1.9 (n=2021) 1.7 (n=2020) 1.7 (n=2095)

office open after regular office hours availability of flexible office concept

7.6 7.4

1.9 (n=2039) 2.0 (n=2042)

7.5

24/7 accessibility of FM and (online) service desk presence of security staff to increase perception of security presence of greening in the office environment presence of host(ess) at entrance of buildings comfortable and suitable workplace at ING offices sufficient meeting rooms available (with reservation) online reservation of services and workspace/meeting rooms availability of audio visual equipment in meeting rooms availability of (free) office supplies availability of a restaurant with a wide range of products sufficient meeting areas available (without reservation) availability of FM call centre FM support when you need an external archive provision of furniture/equipment for a workplace at home the new mail and order delivery concept

7.6 7.4 7.4 6.8 8.7 8.2 7.7 7.7 7.7 7.5 7.3 7.2 6.4 6.2 5.7

1.7 (n=2023) 2.0 (n=2046) 1.7 (n=2064) 2.2 (n=2018) 1.0 (n=2115) 1.4 (n=2107) 1.6 (n=2034) 1.5 (n=2098) 1.6 (n=2020) 1.9 (n=2068) 1.5 (n=2103) 1.7 (n=2024) 2.1 (n=1535) 2.5 (n=1957) 2.0 (n=1309)

introduction of the New Ways of Work at ING professional reception and welcome at ING buildings availability of banqueting services in ING buildings

7.3 8.1 6.3

1.9 (n=2089) 1.5 (n=2051) 2.0 (n=2066)

8.3

7.8

7.8 7.7 7.6

7.3

7.3

7.3 7.2

The method confirmed that the FM policy objectives and end-user experience show similarities, indicating alignment of policy and outcome of FM services and products. In addition, the survey showed specific improvement opportunities for the FM department and the ability to prioritise improvements based on actual end-user opinions. Based on this research, ING FM is able to combine end-user information with strategic management information by using the same ‘language’ of ‘value-adding strategies’ in an operational tool like customer satisfaction survey.

5 CONCLUSION AND RECOMMENDATIONS This research contributes to a more holistic view on FM, in order to capture, demonstrate, and manage the total value of FM for core business and corporate performance. In addition, the aim is to show the practicality of added value concepts in financial institutes. Based on six small case studies in Dutch financial institutes, a conceptual model was developed that demonstrates the total value of FM in relation to core business performance. Specific FM 61


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interventions were mapped to enhance the manageability of added value strategies for the facilities manager. Intangible corporate performance areas were integrated in the conceptual model. Although the model supports the conversation between the facilities manager and its (strategic) stakeholders in the organization, the model requires further exploration to create measurable indicators of added value. The research showed that the prior areas of FM added value currently do not play a (visible) role in the accountability process of FM indicating a gap in measurement according to the respondents. The practicality of added value concepts was explored in an in-depth case study showing appreciation of FM at end-user level. The case illustrates how the facilities manager is able to explore new interventions to increase end-user appreciation and to investigate appreciation of end-users regarding specific management areas of FM. Furthermore, it gives insights in the opportunity to measure added value at different levels in the organization. Following the definition of EN15221 regarding FM customers, it would be valuable to conduct similar research at each customer level (client, customer, consumer), in order to clarify how different FM customers consider the importance of different FM added values. The importance of values thereby can be specified to (and managed for) each customer level. Although the case shows end-user appreciation, the method requires further refinement in the structure of the survey and should make a relation with other (tactical and strategic) levels of management. Through expert panel method, generic issues regarding added value of FM were explored and clarified. Both the results at the financial institutes and the expert panel showed and confirmed that certain (intangible) areas of added value of FM are important for the performance of the organization. Results from case studies and the expert panel showed that a lack of tools for reporting on intangible contributions restricts FM in showing its contribution to the core business. Furthermore, results showed that there is a need for performance indicators that correlate between corporate performance and FM performance. Further research should reveal what aspects of FM either obstruct or stimulate/enhance core business performance. This should be organized within the context of similar core business in the area of productivity, image, culture, risk control, sustainability, and innovation. In addition, the focus group results showed that the sector in which the company operates is considered to be an important determinant of added value. This requires exploration of sector-specific performance indicators and assessment to which level FM is able to obstruct or enhance corporate performance level. For example, to what extent does FM contribute to an increased throughput time of patients in a healthcare environment (productivity)? Or in the banking industry, to what extent does FM contribute to the efficiency or effectiveness of payment transactions (optimal core business)? Although the relationships made in the conceptual model are likely for these case studies, it would be valuable to establish more reliable correlations between the different value-adding strategies and the corporate intangible performance areas following the example of Scheffer et al. (2006). Parameters that can be measured over time and can be isolated from other influencing factors need to be developed in research objects with similar corporate performance objectives and similar facility management strategies. This enables determining correlations between dominant corporate strategies/performance and FM value-adding strategies. A possible area of research would be companies that offer Integrated Facility Management, because of their specific situation in outsourcing contracts and their challenge to deliver services in compliance with the norms, vision, and values of the client company. Although costs have been the main driver for outsourcing decisions so far, trends like Best Value Procurement show

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that other (intangible) values are entering the decision making process and play a role in the determination of the best business fit in outsourced situations.

ACKNOWLEDGMENTS We thank all the interviewees, Dr. Ir. D.J.M (Theo) van der Voordt, and G.J.A (Gijs) Theunissen MSc for their contributions to the research. We also thank Yvet Brummelhuis for her contributions to the empirical part and ING Facility Management as a partner in this project. REFERENCES Alexander, K. (1992), "Facilities Value Management", Facilities, Vol. 10, No. 3, pp. 8-13. IFMA (2012), "Views from the top, executive summary", available at: www.ifma.org (accessed 12 June 2012). Amaratunga, D., Baldry, D. & Sarshar, M. 2000), "Assessment of facilities management performance in higher education properties'', Facilities, Vol. 18 No. 7/8, pp. 293-301. De Vries & De Jonge (2004), "The influence of corporate real estate on corporate performance" In Ruddock, L., Sexton, M., Amaratunga, D., Aouad, G. & Kagioglou, M. (Eds.), 4th international postgraduate research conference (volume 2), University of Salford, Manchester, pp. 745-753 Jensen, P.A. (2010), "The Facilities Management Value Map: a conceptual framework", Facilities, Vol. 28, No. 3/4, pp. 175-188. Jensen, P.A., Van der Voordt, T.J.M, Coenen, C., Felten, D., Lindholm, A., Balslev Nielsen, S. Riratanaphong, C. & Pfenninger, M. (2012), "In search for the added value of FM: what we know and what we need to learn", Facilities, Vol. 30, No. 5/6, pp. 199-217. Jensen, P.A., Voordt van der, T., Coenen, C., Felten von, D., Lindholm, A., Balslev Nielsen, S., Riratanaphong, C. & Schmid, M. (2010), "The Added Value of FM: Different Research Perspectives", paper presented at EFMC Conference and research Symposium, June, Madrid. Lindholm, A. (2008), "Identifying and measuring the success of corporate real estate", Ph.D. Thesis, Helsinki University of Technology, available at: http://lib.tkk.fi/Diss/2008/isbn9789512293605/isbn9789512293605.pdf (accessed 25 Feb. 2012). Low, J. (2000), "The value creation index", Journal of Intellectual Capital, 1, 3, pp. 252-262. Prevosth, J. & Van der Voordt, T.J.M. (2011), "De toegevoegde waarde van FM. Begrippen, maatregelen en prioriteiten in de zorgsector", FMN, Naarden, available at: www.fmn.nl. Scheffer, J.L., Bastiaan P., Singer, M. & Van Meerwijk, C. (2006), "Enhancing the contribution of corporate real estate to corporate strategy", Journal of Corporate Real Estate, 8, 4, 188-197. Vader, R. (2011), "De waarde van strategisch facility management", Facility Management Magazine, 192, August 20-21. Van der Zwart, J. (2011), "Real Estate Added Value and Decision-Making In Hospital Infrastructure", Proceedings HaCIRIC International Conference Global health infrastructure challenges for the next decade, 26-28 September, Manchester, UK, pp. 52-67.

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Identity and Image of FM: two sides of a coin to promote productivity in FM Daniel von Felten, Manuel Böhm, Christian Coenen and Gregory Meier Institute of Facility Management, Zurich University of Applied Sciences E Mail: [email protected] ABSTRACT Purpose: The purpose of this paper is to present answers of two key questions: (1) How is the FM industry perceived by the general public (FM image, external view)? (2) How do FM employees perceive their own industry (FM identity, internal view)? Design/methodology/approach: In a quantitative national telephone survey with a total of more than 2,100 randomly selected participants from the general public, the image and awareness of FM were analysed. In a second step, FM identity was ascertained and analysed in a national longitudinal survey, repeated after three years, with a total of about 1,800 FM managers and skilled professionals. Findings: An industry-based survey model for FM is developed. It explores FM image and identity on an industry-specific basis. The dimensions of FM image and FM identity are defined and analysed. The FM image and the FM identity in Switzerland are evaluated and will be presented. Initial results show that FM identity is somewhat higher positioned than FM image. However, FM identity declined slightly over the three years between the two surveys. Originality/value: In the on-going discussion on ways how to increase value creation in FM, issues such as process optimisation, outsourcing and cost savings are often in the foreground. A frequently overlooked aspect which receives little attention is the commitment of employees. This seems all the more surprising since we know from recent research that high employee commitment significantly increases productivity, contributing to sales growth and value creation. Because FM can be described as a service management discipline, people and their ability to identify with their work are key factors in increasing value creation. In addition, the image of the entire industry plays a crucial role. This is the first published scientific study on the current status of FM identity at the sector level. Keywords Facility Management, Image, Identity, Reputation, Switzerland. 1

INTRODUCTION

1.1 Background and definition of the problem Facility management is still a comparatively young business sector and has become established as a service industry. Image and identity are critical to the success of this new sector. The fact that FM employees identify closely with their products, as well as with the FM sector as a whole, can be seen as the lifeblood of high, quality-oriented productivity. Knowledge about the image and identity of the FM sector is particularly important in this regard. However, no study has so far been published on the current status of FM identity at the sector level; the only work 64


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available is a pilot study on the image of the FM sector by Coenen and von Felten (2009) and Coenen, von Felten, Schmid (2010). 1.2 Objectives of the study The main objective of this study is to survey and analyse the identity of the Facility Management sector in Switzerland for the first time. The second aim is to compare this identity with the image of FM in Switzerland. The third goal is to analyse possible changes in the identity of FM, as shown in the longitudinal survey carried out in 2010 and 2013. 2. Theoretical foundations The effect a company's activities have on every aspect of the business, from customer perception to economic success, is analysed and presented in the form of success chains (Bruhn, 2009, p 66) and in the case of strategy development and monitoring, as part of a Balanced Scorecard (Kaplan & Norton, 1992). For service industries the Service Profit Chain identified by Heskett et al. (1994) examines the relationship between internal service quality and the profit of a company as follows: profit and growth are driven primarily by customer loyalty. This in turn is a direct result of customer satisfaction. Customer satisfaction is strongly influenced by the value and quality of the service provided to the customer. This value is provided by satisfied, loyal and productive employees. The satisfaction of employees is in turn influenced by high internal service quality, which enables employees to deliver good results to their customers. Moreover, the image of a product and/or a company has an impact on customer expectations and satisfaction. The importance of image in services is particularly important, since services are intangible and their creation and consumption take place simultaneously; unlike material goods they cannot, therefore, be examined objectively in advance (Meffert & Bruhn, 2006, p 210). In this paper, the term image is understood to comprise an aggregated and subjective overall picture of all the attitudes that a person has towards a brand, product, organisation or institution (based on Apitz, Benad & Poth, 1987 and Meffert & Bruhn, 2006, p 210). Furthermore, image as understood by Buss and Fink-Heuberger (2000, p 64) can be differentiated into the close-range and long-range image. This refers to proximity or remoteness from an organisation. That is, someone who is not aware of an organisation, or only has information about it from a third party, has a different image of the organisation than do groups which interact with, and thereby generate various experiences of it. In terms of image management and improvement, this means that an organisation should invest in its close-range image. By distinguishing between these two types of image and combining them appropriately when evaluating the results of surveys, an organisation can identify and appropriately position its image-related opportunities and threats. In this paper, those respondents who had a correct understanding of the term Facility Management are assigned to the close-range image group, while those who have heard the term facility management but have an incorrect understanding of it are allocated to the long-range image group. For many services, the employees embody for customers the brand or company that provides the service, as they are often the only point of contact within the service process (McDonald, de Chernatony, & Harris, 2001, p 346). In addition, McDonald et al. conclude (2001, p 342): “... customers' perceptions of the brand depend highly on individual interactions with staff…” The image that employees have of a brand, a product and the company itself, and which they transfer into their dealings with outsiders, is therefore especially important for people-oriented

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services. This self-image as an aggregated and subjective form of all the attitudes of an employee to their own brand, product, organisation or institution is referred to in this paper as identity. According to Burmann and Maloney (2004), brand identity in the strict sense is what expresses the essential characteristic features of a brand: what it stands for at first internally and later externally. Brand identity in the strictest sense is therefore a statement of a concept. In a broader sense, brand identity can be interpreted as a brand management tool which aims at a) the communication of the brand's promise of value and b) the brand-related behaviour of all those involved in providing services for the organisation. All of this can be understood under the general heading of identity. In the field of image and identity research, the image and identity of an individual brand, product or company have already been considered many times, while the image and the identity of an entire sector have not been the subject of such focussed attention. The image of a sector is understood in this paper to be the sum of the images of individual organisations. Similarly, the identity of a sector is defined as the collective identity of the individual organisations working in it. In turn, the image and identity of a sector influence the image and identity of particular organisations and brands operating within that sector. The image and identity of a sector are therefore involved in a permanent dynamic exchange, which can lead to changes in both aspects. A company only has a direct influence on its own brand or company identity, but through exercising this influence, contributes to forming the identity of the entire sector. In this study, the identity of the FM sector in Switzerland is investigated for the first time, and is related to the sector's image. 3. Study design In order to examine the external image and reputation of Facility Management, a nationally representative survey was designed and implemented in German- and French-speaking Switzerland in 2008. When defining the term “image”, the approach used in the pan-European studies on the European Performance Satisfaction Index (EPSI) (EPSI, 2007) was chosen, particularly for reasons of international comparability. Based on the EPSI product and service image construct, a further battery of questions was created regarding the image of the sector. As with EPSI, the data collected is based on telephone interviews. Familiarity with the concept of Facility Management was surveyed in a first part without support, using a filter question. Participants who had already heard the term were then questioned, inter alia, about the image of FM. Of the total of 2,100 randomly selected subjects between 15-75 years of age, 451 people (21%) had already heard the term Facility Management and were therefore interviewed about the image of FM. To survey the internal perspective, or the identity of FM, a longitudinal study was designed, conducted for the first time in 2010 and for the second time in 2013 as part of an FM sector survey. Here the questions on FM identity constituted one among several blocks in the overall survey, which was conducted online with FM management and professionals in Switzerland. The questions on FM identity were designed to ensure comparability to the FM image study. In the FM sector study in 2010, a total of 1,038 participants from German- and French-speaking Switzerland were surveyed and 1,017 valid data records were obtained. About three-quarters of the participants had a managerial function in lower, middle or upper management, or were selfemployed. 43.5% worked in middle management, 21.3% in lower management and 9.6% in upper management. In the FM sector study in 2013, a total of 1185 participants, mainly from German-speaking Switzerland, were interviewed and 788 valid data records were collected.

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Almost 80% of participants had a managerial function in lower, middle or upper management or were self-employed. The largest share, 44%, worked in middle management, 21.9% in lower management and 11.4% in upper management. 4. Study results Following the presentation of the study design above, the study results will be presented in this section. First, the results of the evaluations of the image study in 2008 and the FM identity surveys in 2010 and 2013 are presented. The data from the 2010 FM sector study are then compared to those collected in the 2008 image study. 4.1 FM image One in five Swiss has heard the term Facility Management and was therefore questioned on the image of FM (N = 451). The participants who were able to define the term FM correctly were classified as having a close-range image, and those who have already heard the term once, but were not able to define it correctly, as having a long-range image. 10% of the Swiss market had a correct understanding, and this group was characterised as having a close-range image, while a further 10% of respondents were characterised as having a long-range image. The image of the industry is relatively low and the potential earnings are perceived as below average. There is hardly any awareness in the Swiss population of tertiary education for Facility Managers. Rather, it is assumed that FM knowledge is acquired through vocational training. FM image based on the EPSI dimensions The statement that Facility Managers have an image of being professional and state-of-the-art produces a mean of 5.91 on a ten-point Likert scale. Customer-oriented service shows a mean of 6.03. The value for money comes last with a mean of 5.28. Also low, with a mean of 5.32, is the assessment of responsible behaviour towards the environment. The reliability of Facility Managers (m/w) showed the highest value: 6.10. The image of the FM profession With a mean value of 6.78 on a ten-point Likert scale, those surveyed basically expect an increase in demand in the future. The social prestige of facility management is strikingly low at 4.73, which can be explained by the fact that the respondents were doubtful about the image of Facility Management. The mean value of respondents' estimation of job security in the industry was relatively low, at 5.64, as was their view of earnings potential, with a mean of 5.71 (see also Coenen and Felten 2009). 4.2 FM identity The identity of Facility Managers in Switzerland was first surveyed in the FM sector studies in 2010 and 2013. The results are presented and interpreted below for the first time. Longitudinal study of FM identity in 2010 and 2013 What is the identity of FM and how has the self-image of Facility Managers developed in the three years from 2010 to 2013? Table 1 shows the current situations in 2010 and 2013 as well as the development shown through comparing 2013 to 2010. The data also shows whether the change has two-sided significance at a level of 0.95 (values 0.05).

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Table 1 Comparison of identity in 2010 and 2013 Comparison of 2010 and 2013 FM identity based on EPSI Being professional and state-of-the-art Customer-oriented service Value for money Responsible behaviour towards the environment Reliable work Image of the FM profession Increasing demand in the future High prestige in society Secure jobs Good earnings potential

2010

2013

Asymptotic significance Difference (2-sided)

7.12 7.24 6.71

7.06 7.28 6.58

-0.06 +0.04 -0.13

0.040 0.001 0.001

6.64 7.38

6.78 7.28

+0.14 -0.10

0.000 0.021

8.24 5.33 6.55 6.04

8.21 5.19 6.49 5.88

-0.03 -0.14 -0.07 -0.16

0.823 0.841 0.651 0.955

The self-image of the facility manager is quite balanced, levelling off between about 5.2 and 8.2 on a 10-point Likert scale. Within these parameters, identity differs depending on the identity factor surveyed. The mean values for the prestige in the society shows the lowest values in the identity surveys, while the mean values for increasing demand in the future are highest there. This means that Facility Managers see potential in their own industry, but see themselves as having a relatively low status in society. With a standard deviation of between about 2 and 3, all values are at approximately the same distance from the mean. Thus, Facility Managers have quite a similar picture of their own profession. The self-image of Facility Managers has deteriorated slightly overall, whereby the two identity factors “Customer-oriented service” and “Responsible action towards the environment” improved slightly. The respective minimal differences in the identity dimensions based on EPSI are significant, but no noteworthy changes could be found in the identity of profession. 4.3 Comparison of FM identity to FM image There are different possible approaches to comparing the image study of 2008 with the identity surveys from the FM sector studies in 2010 and 2013. Each identity survey could be related to the image study on the basis of a) each individual year, b) both years aggregated, and c) a mean value from the two years. The approaches a) through c) are not used in this paper, however, partly because the FM identity study of 2010 is nearer in time to the FM image study of 2008, but also because the amount of change in FM identity from 2010 to 2013 is negligible or nonexistent. The FM identity from the 2010 survey is therefore analysed below together with the FM image from the 2008 survey, illustrated by diagrams and described in the text. 4.3.1 Image and identity based on the EPSI dimensions In Figure i, the mean values for identity based on EPSI are compared with the mean values for long-range and close-range image based on EPSI. The answers allow assessment on a 1 to 10 approval scale from “1 = totally disagree” to “10 = fully agree”.

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Figure i FM identity and FM image based on the EPSI dimensions. Reliable work

7,38 5,59 6,41

Responsible behaviour towards the environment

6,64 4,67 5,59

Value for money

6,71 5,09 5,39

Customer‐oriented service

7,24 5,61 6,19

Being professional and state‐of‐the‐art

7,12 5,39 6,18

Identity Long‐Range‐Image Close‐Range‐Image

1 2 3 4 5 6 7 8 9 10

Assessment of reliable work The mean value regarding “reliable work” of those who have a correct understanding of FM is 6.41 on a 10-point Likert scale. It is thus above the figure of those who have an incorrect understanding of FM, with a relatively low mean of 5.59. Facility Managers themselves estimate the reliability of their work much more highly, with a mean of 7.38. Assessment of responsible behaviour towards the environment The mean of those with a correct understanding of FM lies at 5.59 on a 10-point Likert scale and is thus significantly higher than the mean of those who have an incorrect understanding of FM, at 4.67. Facility Managers assess their actions towards the environment as responsible, with a mean of 6.64. Assessment of value for money The mean of those who have a correct understanding of FM is located at a low 5.39 on a tenpoint Likert scale, while the mean of those who have an incorrect understanding is even lower, at 5.09. Facility Managers themselves assess the price-performance ratio in the FM sector as being significantly higher, with a mean of 6.71. Assessment of customer-oriented service The mean of those who have a correct understanding of FM lies at 6.19 on a 10-point Likert scale, while the mean of the respondents with an incorrect FM understanding is 5.61. Facility Managers themselves see FM services as customer-oriented, with a mean of 7.24. Assessment of being professional and state-of-the-art The mean of those who have an incorrect understanding of FM is significantly lower on a 10point Likert scale - at 5.39 - than those with a correct understanding - at 6.18. Facility Managers again see themselves as considerably more professional, with a mean of 7.12.

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4.3.2 Image and identity of the FM profession In Figure ii, the mean values of the identity of the FM profession are compared to the mean values of the long-range and close-range image. The responses allowed assessment on a tenpoint Likert scale from "1 = strongly disagree" to "10 = strongly agree". Figure ii Image and identity of the FM profession. Good earnings potential

Secure jobs

High prestige in society

Increasing demand in the future

6,04 6,2 5,3 4,68

6,55 6,26

Identity Long‐Range‐Image

5,33 4,75 4,58

Close‐Range‐Image

6,64 6,86

8,24

1 2 3 4 5 6 7 8 9 10

The individual identifying characteristics are commented on below. Assessment of income opportunities The mean value of those who have a correct understanding of FM lies at 5.30 on a ten-point Likert scale, and is thus lower than those with an incorrect understanding of FM (6.2). Facility Managers estimate potential earnings somewhat lower than respondents with a long-range image, with a mean of 6.04, but higher than the overall image. Assessment of job security The mean of those who have a correct understanding of FM is, at 6.26, far above the mean of those who have an incorrect understanding, at 4.68. Facility Managers themselves estimate their job security slightly higher than those with the close-range image. Assessment of social status Facility Managers themselves assess their standing in society as somewhat better, with an average of 5.33 on a 10-point Likert scale, but in general they see it as relatively low. The mean of those who have a correct understanding of FM lies below this figure, at 4.58, while for those with an incorrect understanding of FM lies between the other two values, at 4.75. Assessment of demand With a mean of 8.24 on a 10-point Likert scale, Facility Managers have a firm expectation of a growing demand in the sector in the future. The mean of those with an incorrect understanding of FM points to a stronger demand in future, at 6.64, while those who have a correct understanding 70


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of FM also see a stronger demand, with a mean of 6.86. Both groups therefore give a much lower estimate than Facility Managers themselves. 5. CONCLUSION AND OUTLOOK This study, based on three surveys of a representative cross-section of the population and the FM sector in Switzerland, presents interesting and unprecedented insights into the self-image of the FM sector in comparison to its external image. It is striking that people with a long-range image of the FM industry assess the sector less positively than people with a close-range image – ones who can properly define the term FM. The most positive assessments come from Facility Managers themselves. Comparing overall image with identity, the internal and external image people have of Facility Management are consistent in the sense that the mean values of each show the same, but parallel development. The self-image of Facility Managers is slightly higher in each case than the external image that the public has of the profession. The striking feature here is the consistent difference between the respective mean values of image and identity factors. Since the identity of FM is consistently higher than its image, and the close-range image higher than the long-range one, a large gap becomes visible, which could be closed through provision of information about the FM industry. This gap represents the image deficiency which could potentially be corrected by means of communication. In addition to individual FM companies, the FM industry as a whole is therefore challenged to communicate about the attractive careers available at various skill levels in FM, and to give the public a multidisciplinary picture of the profession. At the research level, it would be desirable if this country-wide study on the image and identity of Facility Managers could be repeated in other countries, so that these value-adding factors could be compared at country and company level. REFERENCES Apitz, K., Benad, G., and Poth, L. G. (1987), Image-Profile: Führungskräfte bewerten d. 100 grössten dt. Unternehmen u. ausgew. Börsenneulinge, Verlag Moderne Industrie, Landsberg. Bruhn, M. (2009), Relationship Marketing: das Management von Kundenbeziehungen, Verlag Franz Vahlen, München. Burmann, C. and Maloney, P. (2007), “Innengerichtete, identitätsbasierte Führung von Dienstleistungsmarken“, LiM-Arbeitspapier [24], Lehrstuhl für innovatives Markenmanagement (LiM), Bremen, March 2007. Buss, E. and Fink-Heuberger, U. (2000), Image Management: wie Sie Ihr Image-Kapital erhöhen! Erfolgsregeln für das öffentliche Ansehen von Unternehmen, Parteien und Organisationen, FAZ-Institut für Management- , Markt- und Medieninformationen, Frankfurt am Main. Coenen, C. and von Felten, D. (2009), “Facility Management: Bekannheit und Image einer Branche“, in Mesago Messe Frankfurt GmbH Stuttgart (Ed.), Facility Management 2009- FM Lösungen erkennen, beraten, möglich machen- Messe und Kongress Frankfurt am Main 21.-2304.2009, Tagungsband, VDE VERLAG GMBH, Berlin und Offenbach, 281-289.

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Coenen, C., von Felten, D., and Schmid, M. (2010), “Reputation and public awareness of facilities management – a quantitative survey”, Journal of Facilities Management, 8, 4, 256-268. EPSI (2007), Customer Satisfaction 2006, Pan European Benchmark, EPSI Rating, Gothenborg. Heskett, J. L., Jones, T. O., Loveman, G. W., Sasser, W. E., and Schlesinger, L. A. (1994), “Putting the Service-Profit Chain to Work”, Harvard Business Review, March-April, 164-174. Kaplan, R. S. and Norton, D. P. (1992), “The Balanced Scorecard - Measures that Drive Performance”, Harvard Business Review, January-February, 71-79. McDonald, M., de Chernatony, L., and Harris, F. (2001), “Corporate marketing and service brands: moving beyond the fast-moving consumer goods model”, European Journal of Marketing, 35, 3/4, 335-352. MEFFERT, H. AND BRUHN, M. (2006), DIENSTLEISTUNGSMARKETING, GABLER VERLAG, WIESBADEN

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SECTION THREE: SUSTAINABILITY IN FM EuroFM WG2 Introduction Sustainability in FM Susanne Balslev Nielsen, Convenor, EuroFM WG2 Sustainability in FM CFM Realdania, DTU, Copenhagen, Denmark

Papers Methodologies for Improvement of Non-residential buildings' Daily Energy-efficiency Reliability (MINDER) Thomas Berker, Helen Jøsok Gansmo and Antje Junghans. The energy management equation Stefan Jäschke and Markus Hubbuch. Sustainable Retrofitting Nordic University Campuses Robert Eriksson, Suvi Nenonen, Göran Lindahl, Antje Junghans and Susan Balslev Nielsen.

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EuroFM WG2: Sustainability in FM Introduction Sustainability in FM Susanne Balslev Nielsen Centre for Facilities Management – Realdania Research, Technical University of Denmark The need for a transition towards a societal society is challenging the FM profession. In this session, researchers present their findings to inform and stimulate the profession’s debate about the facilities managers’ role in quests for sustainability. To set the scene for the three papers to be presented, I will with inspiration from (Sabatier 1993: Policy Change over a Decade or More) point to the need for the FM profession to engage with the different types of learning, which the three papers collectively offer: Social learning (associated with changes in common values, norms, goals and perspectives e.g. to embrace a global sustainability transition in the local strategic decision making); Conceptual learning (associated with a change in the understanding of or approach to a problem and its character visions e.g. rethinking energy interventions from a user or operator perspective) and finally Instrumental learning (the learning of how various political instruments and tools can be improved to reach given goals e.g. like using the energy management equation as presented below). The first paper by Berker, Gasmo and Junghans takes its starting point in the observation made through decades by professionals operating and maintaining non-residential buildings, which is that designs (building technology) and their implementation have failed to cater for energy efficient facilities management. The authors combine this experience with design thinking and social practice theory to improve the design, construction and above all the management of buildings. The paper suggests methodologies for creating virtuous circles between the users´ and the operators´ daily routines and the energy efficiency of the building they inhabit. The second paper by Jäske and Hubbuch outlines a decision making process model for energy management. Based on a longitudinal study of a Swiss hospital they develop the Energy management equation as a mean for creating a synthesis of the aspects impacting the degree of success of energy management. The equation calculates, in a qualitative way, the success of energy management as the product of all the benefits that arise from it, multiplied by the engagement and the systematic implementation and continuance of an energy management system. The third paper by Eriksson, Nenonen, Nielsen, Junghans and Lindahl paper is an analysis of Nordic campus development and suggests a three level roadmap for future campus retrofitting which also serves as a research framework to demonstration projects to be conducted on different Nordic campuses. The common challenge of the Nordic university property management organizations is that their operations need to be sustainable from an economic, environmental and sustainable perspective. How this can be done on existing campuses is to be explored through retrofitting with the intention of efficient low cost actions which provides new technologies, features, functions and services. 74


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Introducing the MINDER research project: Methodologies for Improvement of Non-residential Buildings' Daily Energy Efficiency Reliability Thomas Berker Centre for Technology and Society Norwegian University of Science and Technology [email protected] +47-92434811 Helen Jøsok Gansmo Centre for Technology and Society Norwegian University of Science and Technology [email protected] Antje Junghans Centre for Real Estate and Facilities Management Norwegian University of Science and Technology [email protected] ABSTRACT In the Norwegian building sector, we are currently witnessing the transition from a realization gap - the gap between availability of solutions and their implementation - to a reliability gap: the gap between the building's potential performances as it is commissioned to its users and its actual performance in daily use. When new solutions do not live up to their promises, not only the performance of the individual building is at stake. The reliability gap can easily grow into a credibility gap with consequences for the ongoing efforts to realize buildings with high energy ambitions. To achieve energy efficiency in buildings, concepts, methods and measures which promise to close this gap are crucial for facilities managers and users. In this conceptual paper we present the theoretical discussion behind the structure and first findings of a newly established interdisciplinary research project: Methodologies for Improvement of Non-residential buildings' Day-to-day Energy-efficiency Reliability (MINDER). The research aims to reduce the reliability gap in non-residential buildings. The paper describes the international state of the art regarding such diverse concepts, methods and measures as energy performance contracting, continuous briefing, continuous commissioning, and soft landings, and suggests how these may be brought further to interlink the design and operation phase of non-residential buildings. Keywords Facilities management, continuous commissioning, soft landings, energy performance contracting, continuous briefing, building performance evaluation 1 INTRODUCTION Surprisingly little attention has been paid to environmental efficiency of facility management (Jensen et al. 2012) even though facilities related activities produce the majority of the company’s environmental impact. The most significant environmental impact of buildings is

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caused by the energy use (Sarasoja & Aaltonen 2012). The use and characteristics of the built environment accounts for roughly 40% of the total energy consumption and hence a significant share of GHG emissions in most developed nations (Kyrö et al 2012). Over the life cycle of buildings more than 80% of the total energy is consumed during the operation phase (Azar and Menassa 2012). The facilities hence present a major energy conservation opportunity (Junnila 2007). The replacement rate of existing buildings is low (Ma et al. 2012) demonstrating the crucial need to enhance energy efficiency of existing buildings in order to bring down emissions (Price et al. 2011). Retrofitting and adaptation of existing buildings may reduce energy consumption significantly but even the best designed low-energy buildings will not perform as planned if they are not operated properly (Kyrö et al 2012). A wide range of technologies which could significantly reduce energy consumption and GHG emissions from new and existing buildings are already available, but the adoption level is low, and technologies to save energy do not travel well from laboratories to a building’s everyday life (Berker 2006). There is a lack of understanding of reasons for high discrepancies between design and actual building performance (Freeman & Preist 2013). Thanks to stricter regulation in the Norwegian building sector we are currently witnessing that the realization gap - the gap between availability of solutions and their implementation - is starting to close. However, there exists another gap that is revealed after energy ambitious buildings are realized: the gap between the building's potential performance and its actual performance in daily use. When new solutions do not live up to their promises, not only the performance of the individual building is at stake. This reliability gap can easily transform into a credibility gap (Bordass et al. 2004) with severe consequences for the ongoing efforts to realize buildings with high energy ambitions. Therefore, to achieve energy efficiency in buildings, concepts, methods and measures that promise to close this gap are crucial. In this paper we describe the theoretical discussions related to a recently started research project that proposes (1) to map the state of the art of the implementation of these methods in Norwegian non-residential buildings, (2) to analyze in depth potentials for improvement and further diffusion, and (3) based on this and approaches from product design and social science to propose new modifications and extensions that go beyond the state of the art. This approach extends Jones et al.’s (2013) conclusion that there is a tendency in the construction industry to design and deliver new buildings based on the requirements of the ‘here and now’ despite that the building owners’ needs will inevitably change, and extends their recommendation that facility managers should be key members of the design team. 2 Existing methods closing reliability gaps Non-residential buildings encompass building types like office buildings, schools, universities, hospitals, nursing homes, hotels, sports buildings, commercial buildings, cultural buildings, and light industry buildings and workshops (ENOVA 2012). Most of these building types are also used as public buildings, and are thus an important part of public infrastructure and contribute to benefit of society. Public buildings have a high level of usage and high requirements in terms of their accessibility. Typically, public building stocks are the result of a historical development, characterized with different construction types, building ages, and building conditions. The challenges to the operation of such buildings are to adapt them to changing user demands and make them accessible mainly to the public and hence to anonymous users (Junghans, 2012a). Moreover, non-residential buildings have a direct and indirect potential to support and impede

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value creation of their users. Because of these special characteristics, and despite the heterogeneity within this building type, non-residential buildings are much more likely than residential buildings to being managed and operated by professionals who are able to act according to concepts, methods or employ targeted measures. To these professionals, the existence of a reliability gap between theoretical performance of a building and its realization in everyday operation has been known for many years1. Today, with increasing ambitions regarding the energy performance of buildings this knowledge has gained new urgency. According to Bordass et al. (2004) disappointing performance of buildings can be related to wrong models, to changes and mistakes made during the construction phase, to bad routines in the commissioning of the building and to deviations from the intended use in the use phase. Improvements restricted to the individual periods in the life cycle of a building are important contributions to the closing of the reliability gap. Examples for these individual efforts are the improvement of modeling methods and software, better routines of fault detection and repair at the building site, and increased flexibility of the resulting building. While these efforts certainly have the potential to produce better buildings on many levels, they do not tackle directly the disconnection between assumptions about a building’s future energy performance and its actual performance in daily operation. A more specific approach to the reliability gap is represented as a broad array of concepts, methods and measures which link actors and technologies from the different sides of the gap together in order to improve a building’s performance - but also in order to improve design processes. In the following we present very briefly some of the most prominent examples of such approaches: soft landings (Way 2005), energy performance contracting (EPC), continuous commissioning (CCx, Femp 2002), continuous briefing (Jensen 2006), and building performance evaluation (BPE, Preiser & Vischer, 2005). The primary focus of the soft landings methodology is on the post-handover phase in which "[t]oo often clients and users of a building become crash test dummies, abandoned, in effect by the project team after handover, just when they may need some help" (Way 2005,p23). It involves contractual arrangements that extend the project team's responsibility into assisting during the handover phase and beyond the Defects Liability Period (three years). The benefits for the user are clear if changes in usage occur during the first three years of occupancy when project team members are contractually bound to become involved with their knowledge from the construction process. As benefits for the supply side, learning through evaluation and feedback and relatively small costs that are outweighed through the learning effects are expected. Energy performance contracting (EPC) is similar to the soft landings method in so far as it relies on contracts that (re-)distribute the responsibility for the energy performance of the building. Usually a third party such as an Energy Service Company (but this service has also been offered by construction companies) is entering the contractual arrangement with the building owner and provides energy efficiency during the use phase as a service. This third party analyses the building and proposes, implements, tunes and monitors energy saving measures and receives in turn a certain fraction of the resources saved. In the context of the reliability gap the most interesting aspect of this bundle of different processes and procedures (for an overview see Wargert 2011) is that it creates a link between the implementation of the efficiency measure (most often through a refurbishing activity) and the actual performance of this measure. Continuous Commissioning (CCx) or lifetime commissioning (LTC) extends the tests that make sure that a building functions according to its specifications into the whole lifetime of the 1

Jensen 2009, p. 125, quotes an early example from the 1960s

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building (Holtz 2005; Femp 2002). When building systems show hard (complete) or soft (partial) failures detrimental performance is a likely outcome and the rapid detection of the faults is a concrete measure to prevent a gap between projected and actual performance. The CCx approach is mainly a technical one as documented in the report of an 8-years research project on LTC conducted by the Norwegian research organization SINTEF (Nord et al. 2012). The main element connecting design and operation in CCx are the technical tools that are used within the process: data produced continuously from building energy management systems (BEMS) and other sensors implemented in the design phase and routines and methods that are used to mine this data for errors (related to the measuring equipment) or failures (of the actual technical systems). Additionally, it was proposed that a person responsible for CCx bridges the gap between design and operation by participating both in the design phase making sure that the necessary technical installations are implemented and in the operation phase conducting the actual continuous commissioning (Nord et al. 2012,p15). Under the label Continuous Briefing, Jensen (2006) has described an extension of the classical briefing process from an expert based collection of information to an inclusive and continuous learning process during the whole life of a building. Based on but also deviating from extensive research on efficient and inclusive briefing he proposes to see these processes as learning opportunity with the overarching goal to improve both building operation and design. Compared with Jensen, Preiser and Vischer (2005) start from the opposite end and develop further traditional post occupancy evaluations (POE) to become one of six processes in a comprehensive Building Performance Evaluation (BPE) process model. BPE is described as the “process of systematically comparing the actual performance of buildings, places and systems to explicitly documented criteria for their expected performance” (Preiser & Vischer, 2005). BPE encompasses technical and structural performance checks, post-construction evaluation and postoccupancy evaluations during the whole building lifecycle. Like the other methods presented here, BPE aims at improving both individual buildings but also the building industry and provide knowledge on built environments and their impacts in general. Moreover, BPE is aimed to develop a common understanding and the respect of all participants in the building’s lifecycle, such as building owners, architects, and facilities managers (Junghans, 2012b). 3 The MINDER project’s approach Despite first signs of change based on a far reaching agreement on the importance of bridging the reliability gap, we can assume that methods which promise to be a remedy are still hardly used both in general and also more specifically when energy efficient buildings are designed and constructed in Norway. Moreover, little is known about the actual extent of this non-diffusion and the barriers and supporting factors. With particularly energy contracting (Kvaale and Jensen 20112) and continuous commissioning (Nord et al. 2012) gaining traction in Norway, the question remains whether these and the other methods are actually implemented in a way that increases knowledge flows between the different phases of a building's lifecycle. Another question is whether individual elements from the methodologies are implemented in a more informal and implicit way, which does not necessarily restrict their effectiveness. In more general terms these questions connected to the actual state of the art of these methods in Norway’s buildings direct our attention towards the practices related to user participation and briefing (highlighted in continuous briefing), post-handover (the topic of soft landings), post 2

A current example is Skanska's OPS contract with Oslo municipality to build and operate Veitvet Skole

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occupancy evaluations (an element within BPE), contractual and organizational arrangements (used in EPC), and monitoring technologies and automatic fault detection (from CCx). This conceptual paper is based on a literature study defining the background for the subsequent work within the MINDER project which will collect information about these practices in a structured (web-based) survey sent to a representative sample of owners of non-residential building in Norway. In a second step, based on this survey of the state of the art we aim at developing these existing approaches further. To achieve this, we follow two related strategies: First, we will analyze in depth the context and critical success factors of a limited number of 1015 cases in which at least certain aspects of the methods have been implemented. These qualitative case studies will be based on semi-structured interviews with facilities managers, operation personnel and end-users in these buildings. The interviews will be complemented through observation at the building and studies of strategic documents. The case studies will provide insight into the state of the art in current energy efficient building operation and deepen and nuance the image created by the survey. They will also deliver insights into how existing concepts, methods and measures to secure a high level of energy efficiency during the buildings lifetime can be improved and further diffused. Second, based on the same case studies we will introduce state of the art theory and experiences from the fields of product design and social science to the problem of closing the reliability gap with the goal to go beyond the state of the art. 4 Beyond the State of the Art Besides arguing that these mapping and analysis activities are long overdue to come to grips with how practitioners “out there” work with closing the reliability gap, we start with an assumption that both design thinking and social practice theory are able to complement and develop further the concepts, methods and measures described above. Both design thinking and social practice theory focus on what actually happens in daily use and operation of buildings. In both fields it is argued that everyday life has its own logic (or its own tactics and strategies, see de Certeau 1984). This ability to counter or at least heavily modify intentions from the "outside" of peoples' daily life has been demonstrated over and over again in studies of technology appropriation (Berker et al. 2005). Approached like this, the reliability gap is at least partly a result of modifications to the original design of a building that happen during its daily operation and use when the users and operators appropriate the building. The challenge is not to avoid these modifications but to create designs that become part of virtuous circles in which userbuilding interactions stabilize energy efficiency instead of the more common vicious circles that so often lead to detrimental performance (Bordass et al. 2001). Design thinking contributes to the creation of these virtuous circles by starting with meticulous observation of the users' everyday life practices: "Time and again, initiatives falter because they are not based on the client’s or customer’s needs and have never been prototyped to solicit feedback. Even when people do go into the field, they may enter with preconceived notions of what the needs and solutions are. This flawed approach remains the norm in both the business and social sectors." (Brown & Wyatt 2010: 32) Applied to buildings and the reliability gap, this diagnosis resonates well with observations of architectonical designs that disrespect the human dimension of buildings (Imrie 2003) and consequently meet the users' resourceful resistance (Berker 2011). Design thinking broadens the attention of the design profession beyond the design of single products to addressing more open problems and also providing input at a strategic level. A broad variety of tools and methods are put to use to gain in-depth insight into real-life situations and systems, and designs are developed

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through iterative cycles of observation, requirements specification, idea and concept generation, testing and evaluation.3 More recently, design scholars increasingly have started to link theoretical understandings of behavior and consumption to strategies and approaches for design, to assemble or develop tools and methods for design research and generative work. Where much emerging research on sustainability is described as relying on technological persuasion and a rather narrow framing of sustainability, behavior and the relation between them which makes the resulting systems susceptible to breakdown (DiSalvo et al., 2010; Dourish, 2010), others explore the value of sociological theories of practice in design research (e.g. Kuijer and de Jong, 2012; Scott et al., 2012). A recent inspiration to this kind of human centered design is derived from the so-called practice turn in social science and the humanities (Schatzki et al. 2001). In this turn the inconspicuous routines of everyday life have moved from the background to the center stage of inquiry. Especially in relation to undesired behavior - such as energy waste or unhealthy nutrition - the creation, support, weakening and breaking of habits has now become a central topic within social theory, policy and public discourse. The limited success of decades with interventions that onesidedly have addressed rational and cognitive aspects have shown that any behavior may as much be the result of blind habit as it may be directed by conscious decisions and cost-benefit estimates. This insight has been popularized in the suggestion that "nudges" - inconspicuous clues that prompt the desired behavior - are more promising than measures which target values and knowledge (Thaler & Sunstein 2008). Where the isolated use of behavioral psychology for the design of "nudges" has been criticized for its ethics (Huang & Baum 2012) and has so far not been able to document lasting changes in behavior, there is a host of recent research which approaches social practices in a more systematic way analyzing their material, symbolic and skill-related aspects such as "stuff, images and skills" (Shove and Pantzar 2005) and "procedures, understandings and engagements" (Warde 2005). Recently, Shove et al. (2012) have proposed a comprehensive framework that promises to inform new ways of understanding, stabilizing and changing practices. With both design thinking and social practice theory as theoretical background, the case studies conducted in the second step of the project will be analyzed for opportunities for design and operation routines that create virtuous circles between the users' and operators' daily routines and the energy efficiency of the buildings they inhabit. 5 Concluding remarks Professionals operating and maintaining non-residential buildings have for decades been aware of the reliability gap between expected (energy) performance and a building’s actual performance in daily life. In their work they have seen how designs and their implementation have failed to cater for energy efficient facilities management. Starting with their experiences and combining design thinking and social practice theory we aim to improve both design, construction and above all the management of buildings - because a building is not energy efficient until its daily operation delivers. ACKNOWLEDGMENTS This research has been funded by the Norwegian Research Council. 3

ISO 9241-210 (2010): Ergonomics of human-system interaction – Part 210: Humancentred design for interactive systems, International Organization for Standardizations, Geneva. 80


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REFERENCES Azar, E, Menassa, C (2012), “A comprehensive analysis of the impact of occupancy parameters in energy simulation of office buildings”, Energy and Buildings, 55, 841–853. Berker, T (2006), “The politics of ‘Actor-Network Theory’. What can ‘Actor Network Theory’ do to make buildings more energy efficient?”, Science, Technology & Innovation studies, 1, 6179. Berker, T (2011), “Domesticating Spaces. Socio-Technical Studies and the Built Environment”. Space and Culture 14 (3), 259-268. Berker, T, Hartmann, M, Punie,Y, Ward, K (2005), Domestication of Media and Technology. Open University Press, London. Bordass, B, Leaman, A (2001) “Assessing Building Performance in Use 5: Conclusions and Implications”. Building Research & Information 29 (2): 144-157. Bordass, B, Robert, C, Field, J (2004), “Energy Performance of Non-Domestic Buildings: Closing the Credibility Gap”. Building performance congress, Frankfurt. Brown, T. Wyatt, J. (2010): “Design Thinking for Social Innovation”, Stanford Social Innovation Review, 31-35. De Certeau, M (1984), The Practice of Everyday Life. University of California Press, London. DiSalvo, C.; Sengers, P.; Brynjarsdóttir, H. (2010): “Mapping the Landscape of Sustainable HCI”, CHI 2010, Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, April 10-15, Atlanta, Georgia, USA, ACM, New York, 1975-1984. Dourish, P. (2010), “HCI and Environmental Sustainability: The Politics of Design and the Design of Politics”, DIS 2010, Proceedings of the 8th ACM Conference on Designing Interactive Systems, August 16-20, Aarhus, Denmark, ACM, New York, 1-10. ENOVA (2012), Potensial og barrierestudie: Energieffektivisering i norske bygg. http://www.enova.no/minas27/publicationdetails.aspx?publicationID=595 [25 February 2012]. FEMP (2002), “Continuous Commissioning Guidebook for Federal Energy Managers. Office of energy efficiency and renewable energy.” U.S. department of energy (DOE). Freeman, R & Preist, C (2013), “The potential for Energy Savings in a School with Outsourced FM”, International Journal of Facilities Management 2013, 227-237. Holtz, M. (2005), “Phase 4: Construction-commissioning”, in Preiser & Vischer (eds.) Assessing Building Performance, Elsevier, Oxford, 63-64. Huang, CJ, Baum, ML (2012), “Nudge Ethics: Just a Game of Billiards?” The American Journal of Bioethics, 12:2, 22-24. Imrie, R (2003). “Architects' conceptions of the Human Body”. Environment and Planning D: 21 (1): 47-65. Jensen, PA (2006). "Continuous Briefing and User Participation in the Building Process." In Proceedings of Adaptables 2006: International Conference on Adaptability in Design and Construction,p. 119-123. Eindhoven University of Technology. Jensen, PA (2009). “Design Integration of Facilities Management: A Challenge of Knowledge Transfer”. Architectural Engineering and Design Management 5 (3): 124-135. Jensen, PA, Voordt, T vd, Coenen, C, Felten, D v, Lindholm, A-L, Nielsen, SB, Riratanaphong C, Pfenninger, M (2012), “In search for the added value of FM: what we know and what we need to learn”, Facilities, 30, 5/6, 199-217. Jones, K, Mulville, M & Brooks, A (2013), “FM, Risk and Climate Change Adaptation”, International Journal of Facilities Management 2013, 120-128.

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Junghans, A. (2012a). “Building use as source of innovation for energy-efficiency improvement of non-residential buildings”. Gudnadson, G. & Scherer, R. (eds.) ECPPM 2012 – eWork and eBusiness in Architecture, Engineering and Construction, Taylor & Francis, London, 89–95. Junghans, A. (2012b). “Integration of principles for energy-efficient architecture and sustainable facilities management”. 28th International PLEA Conference Opportunities, Limits & Needs Towards an environmentally responsible architecture. LIMA, 7–9 November 2012. Junnila, S (2007), “The potential effect of end-users on energy conservation in office buildings”, Facilities, 25, 7/8, 329-339. Kuijer, L.; de Jong, A. (2012): “Identifying design opportunities for reduced household resource consumption: exploring practices of thermal comfort”, Journal of Design Research, 10(1-2), 6785. Kvaale, E.; Jensen, B. (2011), Energy Performance Contracting. Om bruk av energisparekontrakter på boligsektoren i Europa, Husbanken. Kyrö, R, Heinonen, J, Junnila, S (2012), “Housing managers key to reducing the greenhouse gas emissions of multi-family housing companies? A mixed method approach“, Building and Environment, 56, 203-210. Ma, Z, Cooper, P, Daly, D, Ledo, L (2012), “Existing building retrofits: Methodology and stateof-the-art”, Energy and Buildings, 55, 889–902. Nord, N.; Novakovic, V.; Frydenlund, F. 2012. Lifetime commissioning for efficient operation of buildings. Sintef energy research. Trondheim. Preiser, W. & Vischer, J. (2005). The evolution of building performance evaluation: an introduction”. Preiser, W. & Visher, J. (eds.) Assessing Building Performance. Elsevier Butterworth-Heinemann, Oxford. Price, S, Pitt, M, Tucker, M (2011), “Implications of a sustainability policy for facilities management organisations”, Facilities, 29, 9/10, 391-410. Sarasoja, A-L and Aaltonen, A (2012), “Green FM as way to create added value”, Jensen, PA, Voordt, T vd, Coenen, C (eds.), The added value of facilities management. Concepts, findings and perspectives, Polyteknisk Forlag, Lyngby, 195-204. Schatzki, T. R.; Knorr-Cetina, K.; Savigny E. (2001). The Practice Turn in Contemporary Theory. New York: Routledge. Scott, K, Bakker, C, Quist, J (2012): “Designing change by living change”, Design Studies, 33(3), 279-297. Shove, E.; Pantzar, M. (2005). “Consumers, Producers and Practices”. Journal of Consumer Culture 5 (1): 43-64. Shove, E, Pantzar,M Watson, M (2012). The Dynamics of Social Practice: Everyday Life and How It Changes. SAGE Publications. Thaler, RH, Sunstein, CR. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness. Yale Univ Press Warde, A (2005). “Consumption and Theories of Practice”. Journal of Consumer Culture 5 (2) (July 1): 131-153. Wargert, D (2011), Energy Contracting models in Germany and Sweden, Master Thesis, Miljöoch energisystem, Teknik och samhälle, LTH. Way, M. 2005. “Soft Landings”. Journal of Facilities Management 4 (1): 23.

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The energy management equation Prof. Dr.-Ing. Stefan Jäschke Brülhart Institute of Facility Management, ZHAW [email protected] +41589345972 Prof. Markus Hubbuch Institute of Facility Management, ZHAW [email protected] ABSTRACT Purpose: In this paper the authors introduce a qualitative approach to describe the success factors and their interaction for energy management. The implementation of energy management in organisations or buildings in an optimal and effective way shall be theoretically explained. Theory: The research work is based on user behaviour models and knowledge of organisational theory. The decision making process of the management in an organisation is of central importance. Communication is an essential aspect of implementing energy management in an organisation. Approach: Research with a large Swiss hospital over an extended period (2 to 3 years) on various projects has allowed practical observations and experiences. These are compared with the theoretical approach and case studies from other organisations and then consolidated. As a qualitative approach, a management model was formulated. The success factors (existence of benefits, engagement and a systematic approach) and barriers affecting energy management are defined. Findings: The process described starts from the decision whether energy management is to be introduced in a company or not. The different stages - expectation, clarification, finding and decision - are described and discussed. A management model – the energy management equation - is established that qualitatively describes the relation between the different influence factors on the success of energy management. The success of the introduction and implementation of energy management within an organisation depends on optimised processes, the level and effectiveness of communication and management leadership. Originality/value: The newly developed and proposed energy management equation provides an important contribution to the energy transition and for a rational use of energy in buildings. If the influencing success factors and obstacles of energy management are understood, it can be implemented more effectively, thus enabling considerable savings in energy costs.

Keywords Facilities Management, Energy Management, Reporting, Organization, Model 1 INTRODUCTION Energy management is one of the most important measures to reduce energy demand and the interrelated bad effects on the environment. But it is becoming increasingly complex due to the increasing complexity of the energy supply systems, modern building technology and trends in the work environment. This is resulting in increased requirements to introduce energy management in organisations. 83


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The definition of energy management can be stated as follows: Energy management is the planning and implementation of all necessary measures to adequately and safely provide an organisation with the ability to ensure:  The most efficient use of energy  To reduce negative environmental impacts arising from energy consumption  Reduce the cost of energy supply  Capture and allocate charges of energy usage. The following findings are mainly based on knowledge gained by observations and research work done over recent years and partly described by Jäschke (2008), Hubbuch (2013a, 2013b, 2013c) and Janser, Windlinger (2013). Action research was carried out with a reputable business partner in the past three years. Further a two-year research project, using numerous questionnaires and statistical analyses of user behaviour, had been conducted in ca. 25 sustainable buildings. As a result important insights in relation to the success of energy management in buildings could be gained. Some of the aspects that are described in the following chapter are further based on the following literature: Bourgeois, D., Reinhart, C., & Macdonald, I. (2006), Coleman, M. J., Irvine, K. N., Lemon, M., & Shao, L. (2013), Darby, S., (2006), Hartungi, R., & Jiang, L. B. (2011), Herkel, S., Knapp, U., & Pfafferott, J. (2008), IEECB (2012). 2 ENERGY MANAGEMENT AS A MANAGEMENT TASK Energy management is primarily a management task. There are also important activities on a technical and operational level but these are of secondary importance. From a managerial point of view each organisation should implement an energy management system (EnMS). An EnMS is a formally defined system of elements within an organisation, which enables it to reach targets with respect to the use of energy. An example is the EnMS according to ISO 50001 (2011). In order to implement a successful energy management system, organisations must first of all have a clearly defined energy management strategy which will help accomplish both the conceptual and organisational performance. Also the organisational design must be planned correctly. GEFMA 124-1 (2008, p1) describes it this way: "The central task of organisational design is to distribute the overall tasks of the company through the formation of organisational units to employees and ensure the coordination of individual tasks. The formation of different organisational units follows the need for division of labour, which becomes more important with an increasing amount of work, diversity and complexity." In practice, this means that more emphasis should be placed on the word “management”. To date, energy management has been seen by most people responsible for energy conservation as a purely technical problem. It is obvious that an energy management system should be developed in line with wider organisational strategy and issues. Energy management should obviously not be implemented without a concept and an appropriate organisational design is a precondition. There may also be a need to address certain psychological aspects in terms of a paradigm shift in thinking of how energy is managed in an organisation in order for it to be successful. 3 RESPONSIBILITY OF THE MANAGEMENT From the outset strategic decisions need to be considered. Decision making regarding energy management should be made as follows (Figure 1).

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Figure 1 P Phases of decisiion making reggarding energyy management

Phase 11: Expectatioon In geneeral, the deecision-making processs leading too the introoduction andd implemenntation of energy m managemennt in a com mpany beginns with the fformulationn of expectaations. Savinng energy has a poositive connnotation, so it is generaally supportted by all sttakeholders within the company. Top levvel managem ment supporrt is critical, to ensure the successs of the initiiative to inttroduce an energy managemen m nt system in an organisaation. Theree can be diffferent perceeptions of ann initiative dependiing on at w what level thhe initiativee is introduuced withinn the organiisation. Asssuming an organisaation is nottionally divvided into "managemennt level" annd "operatioonal level" functions, there maay be different levels of effort requuired, to maake the initiaative successful. Where tthe initiativee comes froom the operrational leveel it may reqquire much convincingg to ensure the mannagement leevel buy intto the initiattive as theyy are usuallyy focused oon economicc business case argguments to justify j the introductionn of an initiaative. Whenn a building operator orr a facility manager introducees an energgy managem ment conceept they m must first m make it cleear to the s be ddone. The eexpectation with energgy managem ment is to "management level" why it should missions and protect the environmennt. On first cconsideratioon this can conservve resources,, reduce em be seen as a win-w win solution.. However w when organiisations disccover that ssignificant innvestment ment often is rejected byy the "managgement leveel" as they and inteernal efforts are neededd, the argum see the proposal noot as an oppportunity buut as a high investment with additional staffinng cost. So the deciision gets puut off. Anothher argumennt is that energy can stiill be purchaased at low pprices and thereforre energy coosts are in thhe overall budget oftenn almost neggligible. In oorder to justtify higher investm ments in energy manageement meassures a morre holistic vview is requuired with nnot just an econom mic point off view. How wever in orrder to ensure initiativves are seeen as positivve by the "management levell" clear and strong arguuments are nneeded. o regardeed as more important Energy costs are ooften seen aas of seconddary importtance and only when ennergy suppliers annouunce that thhe price of energy will be increased. Then, suddenly, energy ccosts becom me a centrall focus of thhe "managem ment level"". Depending on the orgganisation and business in qquestion ennergy costss can then be regardded as cruccial, and ssometimes organisaations may eeven threateen to relocatte their prodduction sitess. But this iss a good point to start an initiaative to introoduce an energy managgement systeem. 85


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However it is a different situation where an initiative regarding energy management is driven top down with clear commitment by the "management level". In this situation it is easier to get decisions that enable internal investments and expenses and the necessary measures can be implemented in a shorter time. The expectation is then, of course, that the initiative is seen to deliver recognizable progress in the reduction of energy demand and cost in the organisation. An inherent danger in this case is a false expectation. After an initial effort the implementation of a lasting energy management system is mandatory. Otherwise the initial positive results cannot be sustained. Then disillusionment can occur and leads to a lack of further engagement in energy management. The implementation of an energy management system takes time and the system has to be constantly maintained. Some results can be obtained immediately but others require longer time periods to be realised and to become effective in the future. Phase 2: Clarification In order to ensure the success of an energy management system it is essential to establish clear transparency of how energy is actually being used during the operation of a building or within the organisation. Experience shows that there is a perception that achieving transparency will be unproblematic. In fact, the collection of information on technical installations, equipment and energy consumption is often more difficult that initially anticipated. The following problems are encountered in practice: • Energy invoices are incomplete and / or not available in chronological order • Reliable figures of space and area are not known • Technical system documentation is not available or incomplete • Energy consumption data do not provide an adequate breakdown of consumption for specific areas of the building or specific equipment. The initial investigation to establish the clarification of the situation requires a large degree of discipline and a systematic approach. It is rare to find organisations where there is a broad awareness of the process. The clarification of the energy situation in the building or in the organisation needs to record the following: • Inventory of existing facilities • Energy consumption of technical equipment • Benchmark numbers for energy consumption • Collection of consumption behaviour. The findings during the clarification allow a baseline to be established which should be used to measure future improvements against. It is truly amazing how much energy is wasted in the day to day operation of everyday business with comparatively careless use of energy. Of course, there has been a change in the last decade in this regard. Nevertheless, there is often still a degree of carelessness in the use of energy. Above all, there is very often a lack of detailed numerical data for actual energy consumption. Phase 3: Finding The obtained information in the clarification phase is necessary to have a transparent view as to the actual energy being used in a building or organisation, or across different buildings, plants or sites of an organisation. The energy consumption must be evaluated in this phase, in order to provide further insights of potential energy and cost savings. Transparency has to be established to address the following: • In what condition the technical systems are and what the maintenance costs will be 86

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How complete and detailed the documentation of buildings and equipment/plant is What are the required measures and what are the time horizons for any measures to be implemented What staff are necessary to implement and maintain the EnMS Estimated budget for investment and running costs.

These findings help make clear all the facts and parameters which should be included in a detailed energy management plan. The determination of the best implementation strategy must be individually developed in detail during an extended planning phase. It is advisable to put together a suitable team and to provide sufficient time for such planning. The impact of the finding is also influenced by the importance of energy costs for the core business of an organisation. When the energy costs in a manufacturing organisation are incorporated directly into product costs persons on management level are much more interested in the findings. Where this is the case the measures put in place to capture accurate data on energy are considered as much more important. In a service management company as another example, which only uses a few offices and little energy, the findings are of little importance. In the latter case, the introduction of energy management system may be dependent on other reasons, because energy costs are insignificant. It can for instance be used as part of a Corporate Social Responsibility (CSR) policy or to promote a company’s brand and image. Often other influences and decisions that are seen to have more immediate impact on business or which are seen as quick wins are weighted more at the expense of the introduction of energy management. Investments in energy efficiency improvement measures are then often cancelled or postponed. In order to build a solid business case for investing in energy management the energy situation must be clarified, and the measures that are necessary to implement a successful energy management system must be considered. However there can also be quick wins in instant energy conservation measures. But to obtain lasting and long term targets a clear plan should be made to implement an energy management system. But such a system always requires additional personnel and finances. Phase 4: Decision When the facts and arguments lay on the table, the decision must be made whether and how the energy management system is to be implemented and operated. It makes no sense to focus purely on the quick wins. Energy management is a long-term commitment and all relevant measures should be seen in this context. Since real estate is generally a long-term asset on a balance sheet (between 30 and 100 years), investments in energy saving measures in buildings can be considered with longer payback periods for the return of investment (ROI). However where we consider the case of production plants the payback periods may not be a valid business argument due to the shorter life cycle of the produced products (a few years). In today's business world key business decisions are taken mainly on an economic basis. This is also the case in energy management. It is the task of management to assess all the facts, opportunities and obstacles and weigh them against each other to decide if the business case is valid. The better the availability of accurate data and decision-making principles are developed, the more reliable the decisions can be made.

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4 IMPORTANCE OF COMMUNICATION Experience shows that above all good communication and dissemination of information to employees about why an energy management system is being implemented is a key factor to the acceptance by the people it has an impact upon. The involvement of employees and users can be done by forming an energy team, or a project group, by publication of the results obtained and information sessions. In general, the formulation of an energy policy for the organisation which has direct links to business objectives is recommended. Energy savings goals are more respected if they are connected to other important business objectives. The communication of results, measures and information from the energy management system is crucial for the success of this management task. Ever present is the challenge of communication to all those involved. It is generally well known that the behaviour of users or the operators of a building also have an enormous impact on energy consumption. So it is critical that this issue is given special attention. The integration of (building) users in the process of implementation of energy management is a key success factor. The success of the introduction of energy management in a company is substantially dependent on communication across all divisions. The management here plays a particularly important role. The management must make clear to employees: • The aim of the implementation of an energy management system • The importance to the company or organisation • What is expected of the employees • The commitment by senior management to energy management as a whole Another important aspect in the implementation of an energy management system is to create awareness that it is a long-term commitment. This must be clearly communicated to all persons involved. It is also important to highlight the need for continuous energy auditing, monitoring and reporting. Only then can the targeted savings be fully realised. 5 ENERGY MANAGEMENT MODEL EQUATION Energy Management (EM) is per the definition “the sum of all the necessary measures to provide an organization with the ability to ensure the efficient use of energy and to reduce negative environmental impacts”. The synthesis of the aspects discussed so far is a relationship of the different influences on the success of energy management. The following equation summarizes this model and highlights the dependencies. Energy management model equation (Jäschke, Hubbuch, 2013):

Success of energy management = Σ measures · SEM

∑

∗

∗ 1

∑

SEM = success factor of energy management

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The equation shows that the success of energy management is the product of all the benefits that arise from it, multiplied by the engagement and the systematic implementation and continuance of an energy management system (systematic approach). Increasing the number and significance of barriers and obstacles decreases the success of energy management. The benefits and barriers are affected by many influencing factors and are cumulative. They must always be interpreted in the individual case, but using similar measurement, like giving points or grades to the different factors. Engagement (and also commitment) and systematic approach can between zero (0, means no engagement respectively no systematic approach at all) and one (1, means maximum engagement respectively ideal systematic approach). The main benefits of energy management include:  In particular, cost savings  Transparency of energy consumption and costs  Image and competitive advantage  Less depletion of energy resources and less environmental impact  Compliance with laws and regulations. The benefits must clearly bring added value to the organisation. If the benefits are minimal then the energy management will not be successful (see energy management model equation). Without benefits no energy management is implemented. The engagement and commitment is aimed particularly at the management level of a company. Where there is no real interest in implementation, no budget, no strategic consideration or requirements and no support for the long-term implementation of energy management system, the project will fail, as the energy management model equation clearly shows. By systematic approach it is meant that the establishment and implementation of energy management must be planned carefully and methodical. All processes and procedures shall be recorded and all installations are to be accurately planned and documented. For example, a detailed and systematic energy measurement concept should be elaborated. It has to include an exact list of all energy measuring points with clearly defined measurement criteria. It is critical to establish exactly what is being measured and for which specific element(s) of the system. The data then has to be processed and graphics have to be made to make clear the results. Such processes must be permanently maintained. Without sustained effort there can be no meaningful measurements and thus no clear transparency of the energy situation. In other words, an expensive system with many measuring points can be worthless if it is not systematically installed, set up and managed on an on-going basis. In such a case, the conducted energy management is worthless, as the energy management model equation clearly shows. It is clear that barriers and obstacles of any kind can reduce the success of energy management or even prevent it. Significant barriers are:  Too high initial investment costs  Lack of adequate mechanisms and processes for capturing and recording energy use  Lack of information  Lack of knowledge  Lack of commitment by staff  Lack of competent staff  Energy costs are not relevant.

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The more such barriers are present, the more clearly the energy management model equation shows that successful energy management cannot be achieved. If no barriers are present, the success is high under appropriate conditions, and given that the other parameters are met. As each building is a unique case and the factors may be influenced by the particular organisation, the four variables in the SEM equation are of different importance and size. They also influence each other. For example, even if engagement and systematic approach are high, but benefits are very low and additionally significant barriers exist, the energy management will not be successful. Using the energy management equation model, any relationships can be illustrated. Only when the dividend figure is high and the divisor is small will the success of energy management be a high value. This can be in monetary terms or as high qualitative value. 6 CONCLUSION Within facilities management energy management is an important discipline. The authors claim a new holistic approach in understanding the success of energy management. It is important to consider not only technical issues with respect to building services, equipment or production plants, but also the organisation and their contribution to the success of energy management. Once the context between the different factors is realized and considered the potentials for energy savings in an organisation or during building operation are huge and support the desired success in energy efficiency. ACKNOWLEDGMENTS We thank the Zurich University of Applied Sciences, including the Institute of Facility Management, for support of this paper. Also we thank to Prof. Dr. Lukas Windlinger and his team for using results of the project: Impact of sustainable office buildings on occupant's comfort and productivity. RFERENCES Bourgeois, D., Reinhart, C. & Macdonald, I. (2006). Adding advanced behavioural models in whole building energy simulation: A study on the total energy impact of manual and automated lighting control. Energy and buildings, 814-823. Darby, S. (2006). The effectiveness of feedback on energy consumption. Oxford: University of Oxford. Hartungi, R. & Jiang, L. B. (2011). Energy efficiency and conservation in an office building: a case study. Energy efficiency and conservation, Vol. 6, No. 2, 175-188. Herkel, S., Knapp, U., & Pfafferott, J. (2008). Towards a model of user behaviour regarding the manual control of windows in office buildings. Building and environment, 588-600. Jäschke, St. “Energy Management – a question of organisation”; CIB W70 International Conference in Facilities Management, June 16-18th 2008 IEECB . (2012). 7th international conference on improving energy efficiency in commercial buildings. Frankfurt: IEECB. Hubbuch, M. (2013a). Energiemanagement als Herausforderung. Hauswart Schweiz, Nr. 1. 12. Hubbuch, M. (2013b). Know-how des Facility Managers ist gefragt. umneubau Energieeffizientes Bauen, Sanieren, Renovieren – Gebäudekomfort, 5. Jahrgang, Nr. 2. 15-16. Hubbuch, M. (2013c). Universität Spital Zürich: Masterplan Energie. ee-news.ch

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Feige, Annika; Wallbaum, Holger; Janser, Marcel; Windlinger Inversini, Lukas (2013). Impact of sustainable office buildings on occupant's comfort and productivity. Journal of Corporate Real Estate, 15 7 -34. Coleman, M. J., Irvine, K. N., Lemon, M., & Shao, L. (2013). Promoting behaviour change through personalized energy feedback in offices. Building research & information, Vol. 10, No. 3, 37-41. ISO 50001, 2011, Energy management systems -- Requirements with guidance for use, International Organization for Standardization, Genève GEFMA 124-1, 2008, Energiemanagement, Grundlagen und Leistungsbild , German Association for Facility Management, Bonn

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Sustainable Retrofitting of Nordic University Campuses Robert Eriksson Aalto University [email protected] +358 50 5518310 Suvi Nenonen Aalto University [email protected] Susanne Balslev Nielsen Technical University of Denmark [email protected] Antje Junghans Norwegian University of Science and Technology [email protected] Göran Lindahl Chalmers University of Technology [email protected] ABSTRACT Purpose The purpose of this paper is to define the state-of-the-art of Nordic campus development and identify how campus areas can be retrofitted by adding new technologies, features, functions and services. The main research question is how to develop resilient campus management in all five Nordic countries with closely comparable circumstances both on a societal and on an infrastructural level. Theory The current built environment of the Nordic campus, representing a both technologically and functionally ageing real estate portfolio, is approached by applying a systemic understanding of university campuses as socio-technical systems. Design/methodology/approach The analysis of the state-of-the-art campus development is conducted using a literature review and document analysis. Findings The results identify trends and challenges on strategic, tactical and operational levels, and a three-level roadmap for future campus retrofitting and research is presented. Originality/value The research is conducted as part of preparations for a Nordic research and campus development collaboration initiative and it will serve as a framework for demonstrations conducted on different Nordic campuses.

Keywords Retrofitting, campus development, Nordic, campus management, urban development.

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1 INTRODUCTION Retrofitting processes are additions of new technologies, functions and services to existing built environment systems. In university campuses, this means the development of embedded learning environments, new space typologies and a variety of platforms (digital, physical and social) supporting collaboration both within the university and in connection with diverse stakeholders. Nevertheless, it is also about service concepts and new ways of producing services. Retrofitting processes are need-driven, user-involving, agile, scalable and transferable urban acupuncture actions. The Nordic countries have much in common historically, culturally and linguistically. They have had a common labour market and strong co-operation in many areas for many years. The Nordic welfare state model is based on the rights of individuals to a decent life and equal opportunities for social promotion, often achieved through education. Higher education is a part of their large public sectors and has been influenced by a powerful nation state in which regional policy considerations and the social thesis of equal educational opportunity have played an important role. (Fägerlind et al. 2004) All Nordic university property management organisations emphasise that their operations need to be sustainable from an economic, environmental and social perspective (Nielsen et al 2012). Sustainable development targets can be structured according to the three dimensions of sustainability: society, the environment and the economy. In Norway for example the social targets are: supply of appropriate buildings for work and life and compliance with health, safety and security requirements. Additionally, there is a need to preserve the cultural heritage as part of the social responsibility of the property management organisation. This is also an important aspect in the other Nordic countries, since the university properties are often culturally valuable and reflect the society in general,. (Stadsbtbygg, Anon. 2010 a; The Danish University and Property Agency 2013). The ecological targets are: reduction of resources, usage of recyclable building material; considering the separability of used material for re-use; reduction of energy consumption and usage of renewable energy sources; reduction of space requirements and soil sealing; safeguarding the ability to maintain and de-construct buildings; and preventing the usage of materials causing excessive emissions (prEN 15221-4). The economic targets are: building space optimization for most efficient usage; optimization of building life-cycle costs; and facilitating the most efficient management methods. (Junghans, 2011) 2 THEORY AND METHODOLOGY At the core of socio-technical systems is the proposition that many systems are a combination of physical and non-physical artefacts and the human context (Geels 2005) and that change is dependent on the complex interactions between these elements. Socio-technical analysis can be considered at different levels of scale, from small work groups all the way up to large-scale national systems (Geels 2005, Verbong and Geels 2007, Geels and Schot 2007). Geels defines large-scale socio-technical systems as displaying the following characteristics: “At the level of societal functions, a range of elements are linked together to achieve functionality, for example, technology, regulation, user practices and markets, cultural meaning, infrastructure, maintenance networks and productions systems.” (Geels 2005, 1) Transferring the systems thinking approach by Geels (2005, 2 figure 1) towards a socio-technical system for university campus retrofitting, the following perspectives might be integrated: 1. Learning environment - Markets and user practices in higher education

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2. Information and communication infrastructure 3. Users of universities (students and faculty employees, .e.g. in teaching, research, administration, etc.) 4. Maintenance of existing buildings and infrastructure 5. Construction of new buildings, modernisation and rebuilding 6. Knowledge development 7. Culture and symbolic meaning 8. Regulations and Politics (Ministry of Education, Research Council, building law, environmental regulations, etc.). In many ways, when looking at campuses and retrofitting innovation in the wider context, all of these perspectives are necessary. Innovation is viewed as the lowest level, with new ideas entering a socio-technical domain of artefacts, rules and actors. This paper aims to define and describe the state-of-art of Nordic campus development and identify how campus areas can be retrofitted. The leading research question is how to develop resilient campus management in all five Nordic countries, which have closely comparable circumstances both on a societal and infrastructural level. The following section includes and overview of the state-of-the-art Nordic campus development with a focus on the first five elements, which are considered the most relevant for development of resilient campus management?. 3

THE STATE-OF-THE-ART OF RETROFITTING UNIVERSITY CAMPUSES

3. 1 Learning environment - Markets and user practices in higher education A university’s campus is seen as a huge learning environment which creates possibilities for learning – also across the university’s academic environments (Anon, 2013). The need for multiuse learning environments is increasing. Based on global campus development, it is emphasised that the learning landscape is about the connections between the spaces and how much they support encounters and informal learning. The learning landscape should support different ways of learning. It includes a network, connections and urban functions, which create a supporting ecosystem for the whole learning cycle. (Harrison et al. 1996) According to Long et al. (2005), the standards of learning spaces today do not support effective learning but are out-of-date and ineffective. They recommend a shift from too discipline-specific spaces to more flexible and stimulating, learning-enhancing spaces by focusing on two main principles and offerings: (1) self-discovering virtual networks delivering secure services to portable devices that dynamically join and depart the building operating system and (2) spaces supporting sets of interactions with corresponding technologies optimized for specific locally identified goals. The current issues in connection with the development of higher education in different Nordic countries include issues such as an action plan for increased internationalization higher education and a new financing model for state support of study-abroad students (The Danish Ministry of Education) – these issues are handled in a report titled “Enhanced Insight through Global Outlook”. In recent months, the ministry has reworked some of the ‘actions’ and has presented a proposal for legislation with a totally new financing principle for exchange students entering and leaving Denmark. The Norwegian government recently wrote about open access publishing as a potential threat to academic freedom: "All research that is publicly financed should be openly accessible. This principle, however, must not hinder the academic freedom researchers enjoy to

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choose their preferred channels of publication." Sweden’s Ministry of Education has proposed legislation that would grant universities and colleges legal autonomy from the government – by institutions becoming private foundations. Universities have endorsed the need for change. The underlying objective of the legislation is to increase the autonomy of universities by decoupling them from the state. Higher education would operate according to ‘contracts’ between the government and universities. The issues connected to reorganising universities are topical in Finland and Iceland. Iceland used to have only two universities, but during the 1990s it already had seven higher education institutions – four state-owned, the rest private – to serve a population of just 320,000. In the wake of the economic downturn which devastated Iceland, an international panel of experts recommended that the country merge its universities. Finland is at the forefront of the merger trend: three new universities were created in 2010 (involving seven pre-existing institutions), with more mergers expected in 2013. The drivers in merging are quality and competitiveness – small universities are just not powerful enough. (Anon. 2013c) 3.2 Information and communication infrastructure The development of ICT (information and communication technology) and digitalization alter our activities and almost every space, from working, studying and teaching to leisure activities. In terms of learning environments, the actual learning can happen both virtually and physically, which makes it more complicated to plan the physical spaces (Dugdale 2009). According to Santamäki (2008), as the generation born in the technology era want to work in more casual places, the physical, virtual and social spaces need to be designed for a multitude of different needs and users. Such a profound change requires that campus management has the ability to develop flexibility, managerial learning and network organization capabilities. All Nordic countries have been very active in research initiatives in connection with future learning environments. Examples of the development initiatives are presented in Table 1.

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Table 1 Examples of future learning environment development activities in Nordic countries (Anon. 2009; Hansen et al. 2011)i

Country Actors Denmark Danish Building & Property Agency

Finland

University properties of Finland and the Strategic centre for Science, Technology and Innovation of the built environment in Finland

Norway

NTNU

Statsbygg Sweden

KI and SLL (Stockholm County Council).

Action Publications

Focus What could campus areas 1. Campus and Study look like and which functions Environment – Physical would they benefit from Settings for Tomorrow’s including? University in 2009 The process to identify 2. Campus Development: methods and processes which Method and Process 2013 are necessary for supporting campus development. How to benefit from the The Future learning environment R&D program current international reputation regarding 2011-2015.4 educational achievements The Energizing Urban and how to develop the Environments R&D world-class learning program 2012-2016.ii environments aligned with the latest educational knowledge and creative ways of learning? How can the current pedagogical theories, e.g. embedded learning and student-activating methods, be taken into account in designing, using and managing the campuses? Network of Competitive How to develop future Campuses since 2007 campuses? Research activities in How to improve the usability Usability of learning of learning environments? environments. What methods can be used? Sustainable development Effective building project and cultural heritage and sustainability. How should we design our Future Learning Environments - How Space learning environments in the Impacts on Learning R&D future? The aim has been to find new ways of designing program 2010-2012.iii space to support interaction and flexibility on all

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http://rym.fi/program/indoor-environment/ http://rym.fi/program/energizing-urban-ecosystems-eue/ iii www.ki.se/learningspaces iiii www.akademiskahus.se/downloadpubl.php?lPublID=163 ii

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Publication Method support for developing knowledge environments.iiii

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3.3 Users of universities: New ways of collaboration and co-creation – tactical reflections Action taking place within facilities and the use of facilities are strongly related to the experiences of the users, and thus their possibility and willingness to perform. The CIB Work Group 111 on Usability of workplaces – including Nordic researchers – has been exploring concepts, methods and tools, developed in the evaluation of all kinds of consumer products, applied to the built environment. In the most recent phase of this work, conducted over the past three years, an international network of partners has collaborated to focus on the usability of learning environments. The work has sought to identify and evaluate the ways in which users (and other stakeholders) in projects are involved in decision making about building use and the methods and tools they use to understand as well as to design and manage the relationship between activities and places. (Alexander et al. 2013) The Use-Frame (Lindahl et al. 2011) and Use-Tool process (Hansen et al. 2009) provide frameworks for developing more usable facilities in collaborative ways. The success of the latest collaborative methods lies in user involvement, which has been practiced and researched in the area of residential and workplace planning (Olivegren 1974; Granath et al. 1996) since the 1970s. In user-centric design, both technical and psychosocial systems are considered. The purpose of user involvement has shifted from mere participation to co-designing, making fuller use of user knowledge and experience (Sanders and Stappers 2008; Eriksson et al. 2012). 3.4 Real estate and facilities management of university campuses in Nordic countries Real Estate and Facilities Management includes maintenance of existing buildings and infrastructure and construction of new buildings, modernization and rebuilding of university properties. University properties have been recognised as a key asset in all Nordic countries. The university properties are mainly owned and managed either by a separate, typically state-owned, organisation or a company. There are differences between the countries. In Denmark, Universitets- og Bygningsstyrelsen or UBST (a government agency), rents 75 % of the university properties. In Finland, 76 % of all university properties were rented from Senate Properties (a state enterprise) until 2010. These properties were then transferred to three newly established limited companies as of 1.1.2010. The transfer of properties into separate property companies was a result of both strengthening the financial position of the universities as well as increasing their autonomic position. In Norway, Statsbygg (a government enterprise) rents regional college/university properties and a part of the university properties in the higher education sector. In Sweden, Akademiska Hus (a limited company) has a market share of 64 % in the university, higher education and research sector. The division of the responsibilities regarding the services varies between the Nordic countries and there is variation between the tenants as well. In principle, the owner is in most cases responsible of facilities services in connection with maintenance – there are different ways to organise the user services as either outsourced or inhouse services. (Anon 2010b) The expansions and modernisations over the coming years are connected to the fact that universities determine where the knowledge economy (still) grows or has more opportunities. 97


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The location and quality of the facilities is key in attracting and retaining knowledge workers. The campus represents value. The campus requires 10-15% of the university’s resources. Funding models, cost structures and revenue models are in a core role in developing university infrastructures. The expenditure models of tertiary institutions, such as colleges and universities, consist of an increasing share of private sources. The relative amount of private expenditure varies from under 10 % in the Nordic countries to 60-70 % in the U.S. and the U.K. This illuminates a strengthening market-orientation approach in the field. Statistics show that both public and private expenditures have increased in the 2000s. (Van Damme 2001). The position of the organisations in the markets is highly affected by the legislative framework, the organisation’s legal status and its administrational form. For example, Akademiska Hus operates quite freely and independently in the markets with a market-based setting and ruling, whereas the two state agencies, i.e. the Danish and Norwegian organisations, operate close to the Ministries. (Anon 2010b) There are identified challenges for university properties, which were defined in the Nordic project “University Property Management in the Nordic Countries” as a part of the KTI & IPD Nordic University Property Management Studies during 2010 (Anon 2010b). In Denmark, the development of laboratory space includes actions where useless old laboratories will be modernized with governmental funding of 200 million euros. The challenge in collaboration is obvious, as institutions want to work in a closer relationship but have limited possibilities to do so. Alternative property owning structures are under discussion: for instance, universities have made an official request about owning their properties (conditions for this will be cleared) – the process was in its initial phase in 2010. In the Finnish situation, the challenge is to develop the processes and start the operations of the different all have a specific position and market area – this is a matter of creating a credible value network. The other challenge is in strategic, tactical and operational co-operation on a national level. Statsbygg’s properties consist of colleges in remote areas – developing the regional colleges and making these more attractive is a key issue. Statsbygg aims to co-operate with the clients by developing the properties and providing new kinds of solutions. Statsbygg has a challenge in competing with new, modern spaces with their older properties – retrofitting has a significant role here. In Sweden, Akademiska Hus mentioned the increase of competition regarding large projects from the market. It is important to utilize the knowledge and specialised services that Akademiska Hus can offer, i.e. regarding libraries and laboratories. The pressure towards centralisation is present and there are large investment projects in the process, and in general the project portfolio has grown significantly. As a sustainable resource, university campuses in the Nordic countries point out that the environmental aspect can be seen as the most crucial element of social responsibility. Environmental considerations are thus considered a major issue in all the university property management organisations. In total, the real estate sector represents some 40-50% of the total energy consumption, which makes it crucial to develop methods and systems that reduce energy consumption. Specific social responsibility strategies are not currently common in the Nordic university property management organisations. (Anon. 2010a) Statsbygg has defined social responsibility as one of their five strategic goals. In Denmark, UBST does not have a specific social responsibility strategy, but their operational level guidelines cover most of the topics of, for instance, the Global Reporting Initiative (GRI) and these are also reported. In Finland, the new university property management organisations have started their operations, and as their strategies are formed, they are naturally structured in a socially responsible way. The

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responsibilities between the owner organisation and the clients and occupiers vary between the countries but also between universities. It is important to acknowledge and define the owners’ and the occupiers’ responsibilities and also the areas where both these parties can make an impact. In Norway, regarding the regional colleges and some universities, the real estates of which are managed and owned by Statsbygg, there is a closer link to social responsibility. In universities that own and manage the properties by them selves, the ownership and occupational aspects are linked together and Statsbygg does not have a role in their social responsibility matters, except for the construction phase. In Finland, universities are also partial owners of the properties by owning shares in the property companies, which means that the owner and occupier aspects become linked to each other. The level of involvement of the Finnish universities in real estate related social responsibility issues is more prioritized than previously, when universities got the space from Senate Properties. In Finland, there is a discrepancy between the different parties in the responsibilities regarding, e.g., heat, electricity and water consumption and costs, between the university property companies and also the universities. The standardised principles within the companies support the alignment. (2010a.) The statistics from 2010 indicate the amounts of university properties in four Nordic countries (Table 2). Table 2 Property ownership and rent and turnover of Nordic university property management organisations

Country/Organisation Property ownership Denmark /UBST 3.7 million sq. m, of which 2 million sq. m occupied by universities and higher education Finland /University Properties of Finland Ltd Finland/Helsinki University Properties Ltd Finland/Aalto University Properties Ltd Norway/Statsbygg

105 properties with 378 buildings - Rentable area 1.1 million sq. m 50 properties with 200 buildings - Rentable area 0.4 million sq. m Rentable area 0.25 million sq. m Rentable area 2.6 million sq. m (floor space), of which 1.1 million sq. m is rented for education and research (mostly regional/university colleges)

Rent & Turnover Capital rent model (cost-based rents applied, these doubled with a percentage to cover the capital costs, applies some market-based elements) Total rent model, Rental cash flow 126 million euros/year Capital rent model, Rental cash flow 50 million euros/year Total rent model, Rental cash flow 40 million euros/year Total rent model (cost-based rents applied, admin. decisions in contracts made before 1992)

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Rentable area 3.2 million sq. m university and research properties

EFMC 2014 Total rent model (market rents applied), Rental cash flow 4927 Mkr (million Swedish crones)

4 FINDINGS AND CONCLUSIONS Based on the state-of-the-art of Nordic campus development, we can identify three types of challenges for Sustainable Nordic Campus Retrofitting. Changes in property ownership as well as in the organisational structure and identity of universities require retrofitting actions for campus areas including strategic, tactical and operational dimensions and long-term demand and market creation. Strategic challenge  There is a need to respond to the structural changes in education and university organisations. Tactical challenge  There is a need to make the aging built environment more usable with small actions.  There is a need to make the impact of the retrofitting actions greater. Operational challenge  There is a need to fill spaces with users and increase the user efficiency of the campuses. The very low usage rate, combined with specialized facilities and often buildings with cultural value calls for increasing usability through actions that have a manageable environmental impact and which are economically sustainable. Space-redefining retrofitting concepts are needed due to the fact that university resources are not currently fully used. Reviews of space utilisation across different countries in higher education properties indicate that utilisation rates of teaching spaces are often between 15% and 20% during the core learning hours. The rate of use of campus facilities is often very low – this creates wide sustainability potential and need for innovations and development – in terms of retrofitting and sustainability, it is an important opportunity. At the same time, there might exist an expressed need for more space and new buildings (e.g. Nielsen et al 2012). The campus building stock has limitations with regards to decreasing energy consumption and therefore there is also a call for increasing user efficiency in order to increase energy efficiency. The actors in the field of construction and real estate need new ways of working together in order to achieve success and overall sustainability. The use of retrofitted informal learning spaces and the implementation of space management systems as a method will highlight the true cost of academic space to the occupiers of the space. Effective facilities management techniques are an important management tool in the increasingly dynamic and diverse higher education environment. In addition, there is a need for new services both to increase user efficiency and to manage retrofitting processes. The results are summarized in Figure 1.

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Figuree 1 The three--level roadm map for futuree campus retrrofitting and rresearch.

The finaal conclusioon about thee steps that nneed to be ttaken in futuure researchh activities iin order to create and a integratte a joint rooadmap forr Nordic caampus retrofitting on sstrategic, taactical and operatioonal levels is the follow wing: There is a reasonaable amountt of researchh data to be utilised in retrofittiing consideerations. Nordic counttries have a strong thheoretical ddatabase foor campus developpment. The challenge is to applyy the reseaarch results and devellop conceptts for the demonstrations. The tacttical challennges are connnected to isssues of co-ccreation. Coo-creation allows and encourages a more active involvement froom the users of the cam mpus to create a value--rich experiience. The qualitatiive methodss in connection with m more traditioonal quantitative and obbjective meethods can togetherr provide a valid process for a proof of conceept. A structtural approaach and proccess needs to be esttablished, coonducted annd evaluatedd in a relevaant and com mparable wayy. The opeerational chhallenge is the need too manage aand share reesources in university campuses internallly and exteernally in connection c with other stakeholderrs. Solutionns with effi ficient and sustainaable campuss retrofittingg applicationns are approopriate. Thiss is based on an existinng body of knowleddge and Scaandinavian tradition off involving uusers in thee processes. The focus should be on deveeloping guiddance on goood practicees of campuus retrofittinng as part of the develoopment of institutioonal real esstate strateggies. This assists univeersities and service prooviders in iddentifying and impplementing bbest practicees in the maanagement of o space. The Nordic contextt sets challeenges in com mparison with w Europeaan universitties, for insttance. The high quuality learnning outcom mes in Norrdic countriies are on the same level as e..g. in the Netherlaands. Howeever, doctooral degreess of foreign students, for instannce, are onnly slowly 101


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increasing in numbers. Campus management can have a significant role in identifying similarities between Nordic countries and increasing their magnetic effect. Universities’ planning grows in scale when they combine and develop their activities. The planning of a university’s area is therefore comparable to urban planning. Planning does not relate solely to the individual university’s activities: the university opens up towards the surrounding world – also physically – and thus actively affects the area and the surroundings. Campus development is more than just bricks. It is a tool for change. It is about buildings and physical areas, but it is equally about social and functional needs, organisation, communication, and funding as well as strategic objectives. There are many aspects suggesting that pioneer activities within campus development can soon act as models for urban development. REFERENCES Alexander, K. (2012), Co-creation of value in FM. Ch. 13 in Managing Organizational Ecologies - Space, Management and Organization (Alexander and Price 2012), pp. 155-166. RIOT, New York. Alexander, K., Blakstad, S.H., Hansen, G.K., Jensen, P. A., Lindahl, G. and Nenonen, S. (2013), Usability: managing facilities for social outcomes. Proceedings from CIB World Congress, Brisbane, 6-9 May 2013. Anonymous (2009), Campus and study environment: physical framework for universities of the future. Universitets- og Bygningsstyrelsen Ministeriet for Videnskab, Teknologi og Udvikling. Denmark. Anonymous (2010b), University Property Management in the Nordic Countries – Overview www.statsbygg.no. (Accessed 2013- 80-15). Anonymous (2013a), Campus Development, Method and Process. Byggningsstyrelsen. www.bygst.dk/om-os/publikationer/campusudvikling-metode-og-proces. (Accessed 2013- 90-25). Anonymous (2013c), Overview of Nordic countries. http://www.universityworldnews.com/article.php?story=20130927090608818. (Accessed 201390-29). Blyth. A. and Worthington, J. (2010), Managing the brief for better design. 2nd ed. Routledge. Dugdale, S. (2009). Space strategies for the new Learning landscape. Educause review, pp.5163. Eriksson, J., Fröst, P. and Ryd, N. (2012), Mapping a framework for co-design in healthcare projects: An empirical study. Department of Architecture, Chalmers University of Technology. Proceedings of ARC 2012. Fägerlind, I. and Strömqvist, G. (eds.) (2004), Reforming higher Education in the Nordic Countries. Studies of change in Denmark, Finland, Iceland, Norway and Sweden. Paris: International Institute for Educational Planning, 2004, pp. 55-87. http://unesdoc.unesco.org/images/0013/001390/139015e.pdf. (Accessed 2013- 90-15) Geels, F. W. (2005), Technical Transitions and Systems Innovations: A Co-Evolutionary and Socio-Technical Analysis, Edward Elgar Publishing, Cheltenham. Geels, F. and Schot, J. (2007), Typology of sociotechnical transition pathways, Research Policy, 36, pp 339-417. Granath, J., Lindahl, G. and Rehal, S.(1996), From Empowerment to Enablement. An evolution of new dimensions in participatory design. Logistik und Arbeit. Hansen, G.K., Blakstad, S.H. and Knudsen, W. (2011), USEtool. Evaluating Usability. Methods Handbook. 2011. NTNU.

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Lindahl G, Blakstad S.H., Hansen, G.K. and Nenonen S. (2011), USEframe – A framework to understand and map usability research. In Proceedings of the 6th Nordic Conference on Construction Economics and Organisation – Shaping the Construction/Society Nexus, Volume 1: Clients and Users, Danish Building Research Institute, Aalborg University, pp. 83 – 95. Junghans, A. (2011), State of the art in sustainable Facility Management, Haugbølle, K., Gottlieb, S.C., Kähkönen, K.E. & Klakegg, O.J. (eds.), 6th Nordic Conference on Construction Economics and Organisation – Shaping the Construction/Society Nexus. Volume 3: Construction in Society, p. 553. Danish Building Research Institute, Aalborg University, Copenhagen. ISBN 978-87-563-1519-7. Nielsen, S.B., Møller, J.S., Jäschke, S. and Alexander, K. (2012), Realizing Sustainability in Facilities Management: a pilot study at the Technical University of Denmark. Proceedings of EFMC2012. Olivegren, J. (1974), Brukarplanering: ett litet samhälle föds: hur 12 hushåll i Göteborg planerade sitt område och sina hus i kvarteret Klostermuren på Hisingen. Göteborg: FFNSgruppens förlag. Ryd, N. (2008), Initiating Building Projects, clients’ and architects’ front-end management of projects. Göteborg: Reproservice Chalmers. Sanders, E. B.-N. and Stappers, J.P. (2008), Co-creation and the new landscapes of design. CoDesign: International Journal of CoCreation in Design and the Arts, 4(1), pp.5-18. Santamäki, E.-M. (2011), DIY (Do it yourself) advice. Aalto Design Factory Annual Report 2010/2011. (S. Granö, Ed.) Espoo, Uusimaa, Finland: Design Factory. The Danish University and Property Agency (2013): Campus and Study Environment: physical framework for universities of the future, The Danish University and Property Agency, The Ministry of Science, Technology and Innovation, Denmark. Van Damme, D. (2001), Quality issues in the internationalisation of higher education, Higher Education, 41. Springer, pp. 415–441. Verbong, G. and Geels, F. (2007), The ongoing energy transition: Lessons from a socio-technical multi-level analysis of the Dutch Electricity system (1960-2004), Energy Policy, pp. 35, 10251037.

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SECTION FOUR: MANAGING PEOPLE AND ORGANISATIONS Introduction Managing people and organisations Matt Tucker School of the Built Environment Liverpool John Moores University, UK

Papers How to increase meal experience in nursing homes? Hester van Sprang, Ruth Pijls-Hoekstra and Geertje Tonnaer. From Worklab to Hub: business models for optimal FM support for office workers in 2020 Arrien Termaat, Hester Van Sprang and Brenda Groen. Contribution of facility management to hospital(ity) issues Brenda Groen

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Introduction MANAGING PEOPLE AND ORGANISATIONS Matt Tucker School of Built Environment Liverpool John Moores University, UK Facility Management (FM) is an industry centred on people. FM is ultimately a service industry, but what actually constitutes as a service? Essentially, “service” is an activity that revolves around providing an experience to the customer or user. Often services are made up of multiple interlinked activities that are packaged into one common experiential output. From a customer (demand-side) perspective, services are an experience. The critical role from an FM provider (supply-side) perspective, is therefore to understand what these experiences should look like, how they should be perceived, in order to enable and align the correct operational inputs to be implemented to support the ability to make these desired experiences a reality. This requires facility managers to be equipped to manage staff, customers and organisations effectively in order to align service delivery with the correct organisational experience and culture. So who is the customer? Essentially the customer can be internal or external. If we take a Higher Education Institution as an example, the external customer would be ultimately be the students and a secondary external customer would be visitors, such as guest lecturers or industry practitioners. The internal customer would be the academic and administrative staff. This is because although they are contracted to the organisation, they receive and experience common services, such as the on-site coffee shop or local printer service, just like external customers. The facility manger needs to be conscious of all of these customer groups and types to be able to tailor FM services correctly. This also requires effective management and organisation of their core FM service staff. For example, the division of soft and hard services staff. To add another factor into the mix, facility mangers will also need to be aware of the cultural differences between in-house and outsourced staff. Essentially, the picture painted here is to demonstrate the complexity in FM regarding the effective management of people and organisations. The ability for facility managers to be equipped with management and inter-personal skills, as well as possessing technical ability and awareness, has never been more pertinent. We now live in the ‘social age’, and era where social and business activity is increasingly dictated by social networks. Peer-to-peer reviews and feedback is increasingly popular, and information exchange is now a collaborative process between providers of services and those demanding services. Moreover, the increased sophistication in how knowledge is communicated and transferred is having a major impact on the behaviours and special patterns of the working environment. The ways in which we deliver services today will ultimately be distinctly different in 10 years’ time as the behaviours of our workplace, and its space, continue to evolve. It is therefore opportune to address the importance of people and organisations within this conference, to which the following three papers provide a fascinating insight into small sample

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of a wider multitude of factors involving the interface between FM service delivery, people and organisations. In the first paper, van Sprang et al. focus on the experiences received from the delivery of catering services within the context of nursing homes. An innovative mixed methods research methodology is adopted to identify critical quantitative trends in customer experience, whilst the qualitative data unravels particular aspects of service improvement. The findings highlight that the wider physical environment, as well as the catering service itself play a significant role in the meal experiences of the nursing home residents. In the second paper, Termaat et al. presents the results of a two-year project called Workspace 2020. This paper emphasises the need to analyse the changes in workspace and working patterns of people and organisations in order for FM to be able to effectively support the workforce of the future. In the final paper, Groen investigates the level of hospitality provided in the healthcare sector from an FM perspective. Through a robust quantitative study, Groen identifies trends in the level of patient satisfaction regarding aspects of hospitality in order to understand the value that is placed by patients, and can thus be used to improve the level of FM service provision in healthcare to emphasise critical aspects of hospitality. It is hoped that these papers provide a thought-provoking insight into how the FM industry interacts and engages people and organisations in the delivery of FM services, through a sample of some of complex issues facing the FM industry both today and in the future.

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CAPTURING MEAL EXPERIENCE IN NURSING HOMES – AN EXPLORATORY STUDY Hester van Sprang Saxion University of Applied Science [email protected] +31645594392 Ruth Pijls Saxion University of Applied Science [email protected] Geertje Tonnaer Saxion University of Applied Science [email protected] ABSTRACT This study focuses on measuring the meal experiences of elderly clients living in nursing homes (N=217). The study combines qualitative and quantitative research in an innovative way by using a specially developed measurement box. The box is based on research by Berry, Wall & Carbone (2006) on service clues and combines a survey with gaming elements that trigger residents to express their thoughts and feelings with meal experience. It refers to aspects of the food itself (the product), the staff’s behaviour, and the physical environment. Questions are either satisfaction related, or related to respondents’ affective assessment. Statistical analyses prove that functional, mechanical and humane service clues can be distinguished as separate factors in the meal experience. Additionally, the present study shows the value of combined qualitative and quantitative research: qualitative data helps to identify specific points for improvement. Improvement of meal experience requires an effort on all service clues. However, the instrument did not succeed in differentiating between cognitive and affective response to meal experience in the post experience phase. This study supports the thesis that understanding the meal experience is important. To really understand a resident’s meal experience, one needs to address not only aspects related to the food and drink itself, but also aspects related to the physical environment and interaction with others. Information on a resident’s affective response remains important. However, this requires the development of a new measurement tool, either by improving the scales, or by measuring in the participation phase instead of post-experience measurement.

Keywords Nursing homes, elderly, meal experience, service clues, affection and cognition. 1 INTRODUCTION Food is important for the health and well being of people, especially for the elderly. As a result of aging, people become less receptive to their internal signals that trigger the intake of food and 107


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drinks, resulting in serious problems as malnutrition and anorexia (Roberts, Fuss, Heyman, Evans, Tsay & Rasmussen, 1994; Morley & Silver, 1988). External triggers in the social and physical environment can partly compensate for this reduction in perceptiveness. Examples are: eating with others results in a higher energy-intake (De Casto, 1993) due to an extended stay at the dinner table and agreeable company (Feunekes, De Graaf and Van Staveren, 1995). Furthermore, a positive multi-sensory experience activates the physical processes, triggers a person’s memory and stimulates eating (De Groot, 2002). Institutions have a need for understanding their residents’ experience, as a means to improve the quality of life, health and weight of elderly. Research by De Groot and Van Staveren (2007) shows that eating in a living room setting in nursing homes, leads to a proven positive effect on the quality of life, fine motoric, weight, a slight increase of the intake of all food and drink, as well as increased staff satisfaction without an increase in work pressure. Besides these, understanding meal experience (as part of the hospitality experience) is important to institutions to distinguish themselves in an increasingly competitive market (CBS, 2012; Van den Haak & Karlas, 2012). Experience is a complex concept. Firstly, the experience of the service environment has a physical and social dimension in which the service delivery takes place (i.e. Brunner-Sperdin & Peters, 2009; Berry, Wall & Carbone, 2006). Berry et al. (2006) state that the service experience is based on three types of clues: functional clues (technical performance: the meal); mechanical clues (tangibles: sensory perception of the physical environment); and humane clues (behavior and appearance of service providers). Secondly, experiences are internal in nature and, therefore, individualized and therefore not easy to investigate (Knutson, Beck, Kim & Cha, 2010). Defining experience of services is also complex. Researchers vary in their opinion whether experience contains emotion and/or cognition, whether it is a process or a result, and whether an experience must be an extraordinary moment involving ‘flow’ or also refer to ordinary service situations (Pijls, Schreiber &Van Marle, 2011 show an overview of literature on the definition of experience see). The present study is based on the definition that experience is the interaction between the individual and his or her environment, containing functional, mechanical and humane clues, and the inner responses to this interaction (Pijls, Schreiber &Van Marle, 2011). These inner responses consist of feelings and thoughts, which follow the sensory perception of the environment and result in an overall evaluation (i.e. satisfaction) of a service encounter. In line with this, Knutson et al. (2010) developed a holistic conceptual model of the experience construct, based on a review of over 600 publications. The model recognizes three phases in experience, encompassing the ‘events or feelings that occur prior, during, and after participation’ in the hospitality experience (O’Sullivan & Spangler, 1998, p. 23). These parts have been characterized as: (1) pre-experience—referring to anything and everything involved prior to the actual participation in the experience itself; (2) participation—referring to the actual involvement in the experience; and (3) post-experience—referring to the aftermath of the participation. In this post-experience phase, cognitive and affective responses during the participation phase results in the overall satisfaction. According to this model, satisfaction is based on both cognitive and affective evaluation. To obtain a deep understanding of satisfaction the cognitive and affective evaluation must be understood. Satisfaction is widely measured, by means of validated surveys like SERVQUAL (Zeithmal, Parasuraman & Berry, 1990), American Customer Satisfaction Index (Fornell, Johnson, Anderson, Cha & Bryant, 1996) and Customer Quality index Long-term Care (Triemstra, Winters, Kool & Wiegers, 2010). Affective response to meal experience is more

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difficultt to measuree, especiallyy in the post experiencce phase, annd thereforee no widelyy accepted standarddized methoods, which aare applicabble in this sppecific conteext, exist. T The aim of thhe present study iss to developp and test a new instrum ment measuuring both ccognitive annd affective responses in the post experiennce phase aas well as ovverall satisffaction (see Figure 1). M Measuremennts during all the tthree phasess from expeectations in the pre-expperience, reaal time meaasurements during d the participaation phase and the ovverall evaluaation in the post experiience phase would be oof greatest value. H However, this is hardly feasible. Thherefore, thee focus of thhe present research is oon the post experiennce phase, bbecause it iss the most ppractical waay to obtain data and thhe eventual evaluation e of a seervice encouunter is asssumed to bbe most im mportant foor new exppectations aand future behavioour (Knutsonn et al., 2010; Kim and Moon, 2009). Figure 1. Coonstruct of exxperience, baased on Knuttson et al. (20010) & Berryy et al. (20066).

Insight iin the meal experience is importannt, therefore experience surveys shoould:  Meaasure not onnly aspects rrelated to thee food and ddrink (functtional clues)), but also asspects relatted to the phhysical enviironment (m mechanical cclues) and innteraction w with others (hhumane cluees).  Meaasure not onnly cognitivee responses,, but also afffective respponse to funcctional, mecchanical and humane cluues of the m meal experiennce. By undderstanding tthe affectivee response ((as deteerminant) the (overall) ssatisfaction can be betteer understoood. Based oon these statements the following hypotheses h a formulatted: are mechanicall and humanne service cllues can be distinguisheed as separaate factors 1. Functional, F i the meal experience.. in 2. The T differenntiation betw ween cognittive and affeective respoonse to meall experiencee in the p experieence phase oof elderly peeople is posssible. post 3. Experience E research reqquires a com mbined quanntitative andd qualitativee research appproach.

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R RESEARC CH METHO ODS 2 The stuudy combinnes qualitatiive and quantitative research in an innovattive way byy using a speciallyy developedd measurem ment box. T The box com mbines a suurvey with ggaming elem ments that trigger residents too express ttheir thoughhts and feeelings on m meal experieence (See F Figure 2). Literatuure review inndicates thaat elements oof gaming trrigger respoondents to participate inn research, improvees motivatioon and thereeby the validdity of the answers a given (Al Mahhmud, Mubin, Shahid, & Marteens, 2008). The queestions refeer to aspectts of the foood (the prroduct, funcctional cluees), staffs’ behaviour (humanee clues), aand the phhysical envvironment ((mechanicaal clues). Questions Q aare either satisfacttion related (smiley icoons 5 point sscale), or reelated to a reespondent’ss affective aassessment (weatheer symbols 5 point scaale). Each qquestion is sscored by m means of tuurning the dice. d Open questionns are usedd to obtain additional informationn on the scores. Thiss study inclludes 217 responddents (60 M Male, 157 feemale) from m eight diffeerent nursinng homes (aand instituttions), age betweenn 61 and 1000 (mean agee 84,5). Thee individual sessions toook place in the period F Feb – July 2013. N Nursing hom me staff (vaarious posittions) adminnistered thee surveys, aafter first completing training by IFC on the use of thhe measurem ment box. Figurre 2: The meaasurement boox (developedd by IFC), wiith different symbols s for ccognitive asssessment ((smileys) andd feelings (weeather symbools)

The num mber of staff administeering surveyys varied between 1 (44 homes), 2 (3 homes)) and 4 (1 home); the numberr of interviews varied ffrom 6-48. After A complletion of thee survey, thee box was were writteen down in a log. Thee obtained photogrraphed. Thee answers too the open questions w quantitaative data aare analysedd using SP PSS (factor analysis; rreliability teesting; averrage sums score; bbivariate anaalysis). Thee qualitativee data is useed for furthher understaanding of quuantitative analysiss results. 3

R RESULTS

hesis 1: servvice clues Hypoth

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Functional, mechanical and humane service clues can be distinguished as separate factors in the meal experience. Firstly, factor analysis was carried out in order to determine the construct validity of the instrument. The analysis identified 6 factors (Table 1), all clearly related to one type of service clues (functional, mechanical or humane). The items show high factor loadings on their factor, checks are performed concerning cross loadings (< .30) (Field, 2000) and the items show high communality (shared variance) with each other. Seven items were excluded based on the factor analysis results: contact with healthcare staff; contact with volunteers; contact with other residents; snacks; portion size; response to questions about the meal; participation in other activities in the restaurant. These are all items that are not based on the theory about the service clues, but were added by the organisation IFC, the company for which the instrument was developed. For this reason these seven items are excluded for further analysis. Cronbachs’ alpha shows values above 0.60, which mean that the reliability for the six factors is sufficient (see also Table 1). Table 1: Results from factor analysis and reliability test

Factor Label 1 2 3 4 5 6

Restaurant ambiance (satisfaction with and feelings about physical environment, ambiance) Restaurant staff (satisfaction with and feelings about staff interaction) General staff (satisfaction with and feelings about interaction) Hot meal tangible (satisfaction with and feelings about product) Hot meal intangible (satisfaction with and feelings about hot meal related items) Cold meal (satisfaction with and feelings about product)

Clues

Items (N) Mechanical 12

Cronbachs’ alpha .981

Humane

6

.936

Humane

2

.661

Functional

5

.696

Functional

5

.70

Functional

2

.971

The results of the factor analysis support hypotheses one: functional, mechanical and humane service clues can be distinguished as separate factors in the meal experience. There appears to be one factor referring to mechanical cues, the ambiance of the restaurant. Two factors referring to humane clues can be distinguished: items concerning general staff and items concerning staff of the restaurant. Finally, three factors refer to functional clues: the cold meal, relatively tangible aspects of the hot meal (menu choice, time of menu choice, time of having dinner, presentation on the plate and temperature of the food) and more intangible aspects of the hot meal (feelings, satisfaction, smell, taste and appearance of the meal). The results showed no factors consisting of aspects from different types of clues. The next step was composing the scales by calculating the average sums score (Table 2) for the items per factor. No significant effect is found on average sums scores for the items: special diet, male/female, and state of health in past month. All of these characteristics of the respondents were not evenly distributed (i.e. much more females than men).

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N Factor 1 (restaurant ambiance) 217 Factor 2 (staff restaurant) 217 Factor 3 (staff general) 217 Factor 4 (hot meal tangible) 217 Factor 5 (hot meal intangible) 217 Factor 6 (cold meal) 217

Min ,00 ,00 1,50 ,60 1,60 ,00

Max 4,83 5,00 5,00 4,80 4,60 5,00

Mean 3,2089 3,3326 3,9124 3,7005 3,5742 2,6959

SD 1,43753 1,37395 ,63405 ,52250 ,61560 1,81356

The results in Table 2 show that overall, factor ‘hot meal tangible’, ‘hot meal intangible’ and factor ‘general staff’ have the highest mean score, and show the least variance. This means that the sample was in relative agreement on these scores and the expectation is that the low variance will lead to a lower chance of significant influence of background variables. Additional bivariate analysis (ANOVA) further shows a strong significant effect of ‘company of others’ on the average sum score for ‘hot meal tangible’ (factor 4; eta. 513, sig **) and for ‘restaurant staff’ (factor 2; eta .511, sig **). Eating in the company of others results in higher scores. Age correlates negatively with appreciation of restaurant staff (factor 2; sig *). Hypothesis 2: cognition and affection The differentiation between cognitive and affective response to meal experience in the post experience phase of elderly people is possible. Analysis shows no support for hypothesis two. The instrument did not succeed in differentiating between cognitive and affective response to meal experience in the post experience phase. This is firstly shown through bivariate correlation analysis between the items on cognitive and affective response. Furthermore, all factors of the meal experience (Table 1) consist of both the cognitive and affective related aspects. Thirdly, average item scores (ANOVA) do not show a relation with different variables: the relations to various background characteristics (age, sex, company of others, location, diet, state of health, and duration of stay) are the same. Hypothesis 3: improving meal experience Experience research requires a combined quantitative and qualitative research approach.

In order to increase the meal experience, the restaurant ambiance, the restaurant staff and the cold meal are aspects for improvement. The present study shows the value of combined qualitative and quantitative research. Even though “hot meal tangible” and “hot meal intangible” have a relatively high mean score and low variance, the comments in the log show a number of structural complaints. Furthermore, qualitative data helps to identify specific points for improvement (Table 3). Improvement of the experience requires an effort on all services clues. Frequently mentioned points for improvement are: restaurant acoustics, comfort of furniture, the ambiance, staff attention and communication, the meal itself: portion size, presentation, variation, and use of spices and seasonings.

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Table 3: Results for qualitative analysis

Factor

Points for improvement Restaurant Indoor climate ambiance Furniture Acoustics Ambiance Cleanliness Restaurant Attention staff Communication Cold meal Hot meal tangible

Variation Temperature Portion size Presentation (plate) Variation

Hot meal intangible

Examples of answers >10 Restaurant temperature is too cold (especially in winter). Some restaurants suffer from draft. Uncomfortable chairs (too hard), old furniture, missing arm rests. Too much noise caused by background music, background noise, loud voices of other (hard-hearing) residents, moving chairs. More colour, fresh flowers, wall decoration, lightning (mood lightning, but not too dark) Not clean (floors), lack of maintenance, staff’ uniforms are not clean. Restaurant staff is visibly working under pressure and respondents experience little support. Communication between members of staff is insufficient. Negative atmosphere in team. Lack of choice of savoury sandwich filling (meat and cheese) Meals are frequently too cold Meal size is frequently inadequate; self-portioning seems to be a solution. Little attention paid to way of serving (“thrown onto plate”).

Meat

Monotonous. Respondents would like more fruit, cabbage salad (in season), more use of seasonings. Bland, neutral smell, unpleasant smells when cloches are removed. Little use of spices. Overcooked and tough.

Vegetables

Overcooked, tasteless.

Taste and smell

From the qualitative data the negative effects of age on sensory perception become apparent: 21 respondents explicitly express a loss of taste and smell. Two respondents also explicitly mention a lack of trigger for the intake of food and drinks. 4

CONCLUSIONS

Hypothesis 1: Service clues (functional, mechanical, and humane) can be distinguished as separate factors in the meal experience. This hypothesis is supported by the results of our study (see Table 1). Bivariate analysis proved the importance of humane clues to the overall meal experience. Eating in the company of others results in higher scores on satisfaction. This result complies with the previously discussed findings from De Casto (1993), and Feunekes et al. (1995). This study supports the benefits of an

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integral services clues approach. A better understanding of the residents’ experience can improve the quality of life, health and weight of elderly. Frequently mentioned points for improvement cover all three types of service clues: restaurant acoustics, comfort of furniture, the ambiance (mechanical clues); staff attention and communication (humane clues); the meal itself: portion size, presentation, variation, and use of spices and seasonings (functional clues). By deducting the relative importance of these aspects to the residents' experience, institutions can develop or improve their food concepts to better fit the residents' needs and wishes. Literature supports need for a better fit between resident and food concept (De Casto, 1993; Feunekes, Van Staveren & de Graaf, 1995; De Groot, 2002; Van Staveren & de Groot, 2007). Hypothesis 2: The differentiation between cognitive and affective response to meal experience in the post experience phase in elderly people is possible. Hypothesis 2 is not supported by our results. As described in the introduction, the affective response to meal experience is more difficult to measure - especially in the post experience phase, and therefore no widely accepted standardized methods exist. The measurement box is not suitable to measure differences in cognitive and affective response to meal experience in the post experience phase in elderly people. This could be caused by the selected symbols: weather symbols might not logically correspond with feelings. A second explanation could be that this result is caused by the characteristics this specific population. In previous in-depth research (Pijls, Groen, Oldeman, 2010) on affective responses (using LEM emotions) showed that questions on emotions in this context were too difficult for this target group. A third explanation is that respondents are not able to make a distinction between their thoughts and feelings in the post-experience phase. This would indicate that the box only measures satisfaction - the result of the affective and cognitive responses. Hypothesis 3: Experience research requires a combined quantitative and qualitative research approach. The present study shows the value of combined qualitative and quantitative research. Qualitative data helps to identify specific points for improvement (Table 3). Improvement of the experience requires an effort on all services clues. In situations were regression analysis is not possible, qualitative data can be used to identify possible relations between item scores. Overall, this study supports the thesis that understanding the meal experience is important. To really understand a residents’ meal experience, one needs to address not only aspects related to the food and drink itself, but also aspects related to the physical environment and interaction with others. Information on a residents’ affective response remains important. However, this requires the development of a new measurement tool, either by improving the scales, or by measuring in the participation phase instead of post-experience measurement. 5. IMPLICATIONS FOR FURTHER RESEARCH Measurement of affective versus cognitive responses by means of questions and/or images needs to be further investigated in order to find out whether it is possible to measure affective responses in the post-experience phase. Literature review suggests that the affective responses do matter. A new hypothesis for further research is: affective responses can only be measured during the participation phase. This requires the development of a new method.

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Regression analysis might result in new insights; however more quantitative data is required. The present population is very homogenous. To determine the value of the measurement box further research with different types of populations is relevant. In this type of research, quantitative data is of added value to explain the relevance of the types of clues for satisfaction. A better understanding of the residents’ experience can improve the quality of life, health and weight of elderly. Besides these, understanding meal experience (as part of the hospitality experience) is important to institutions to distinguish themselves in an increasingly competitive market. ACKNOWLEDGEMENTS The authors would like to thank IFC. 6.

REFERENCES

Al Mahmud, A., Mubin, O., Shahid, S., & Martens, J. (2008), Designing and Evaluating the Table top Game Experience. Eindhoven/Tilburg: Department of Industrial Design, Department of Communication and Information Sciences. Berry, L.L., Wall, E.A. & Carbone, L.P. (2006), “Service clues and customer assessment of the service experience: lessons from marketing”, Academy of Management Perspectives, 20(2), pp. 43-57. Brunner-Sperdin, A. & Peters, M. (2009), “What influences guests’ emotions? The case of high quality hotels.” International Journal of Tourism Research, 11, pp. 171-183. Centraal Bureau voor de Statistiek (2012), Gezondheid en zorg in cijfers 2012. Den Haag/Heerlen: CBS. Available at: http://www.cbs.nl/NR/rdonlyres/B438B6AC-BAB5-4F71A7F3-26EB01FE66EF/0/2012c156puberr.pdf [accessed: Nov 5th 2013]. De Castro J.M. (1993), “Age related changes in spontaneous food intake and hunger in humans”, Appetite 1993; 21: pp. 255-272. Feunekes G.I.J., De Graaf C. & Van Staveren W.A. (1995), “Social facilitation of food intake is mediated by meal duration”, Physiological Behaviour 58: pp. 551-558. Field, A. (2000). Discovering statistics using SPSS. 2nd edition. London: SAGE Publications. Fornell, C., Johnson, M.D., Anderson, E.W., Cha, J. & Bryant B.E., (1996), “The American Customer Satisfaction Index: Nature, purpose, and findings”, Journal of Marketing, 60 (4), pp. 7-18. Groot C.P.G.M. de & Van Staveren W.A. (2002), “Energy balance and malnutrition in institutionalized elderly people”, Journal of Nutrition and Health in Aging; 6 pp. 311-313. Kim, W. & Moon, Y. (2009), “Customers’ cognitive, emotional, and actionable response to the servicescape: A test of the moderating effect of the restaurant type.” International Journal of Hospitality Management, 28 (1), pp. 144 -156. Knutson, B.J., Beck, J.A., Kim, S,-H. & Cha, J. (2010), “Service quality as a component of the hospitality experience: Proposal of a conceptual model and framework for research.” Journal of Foodservice Business Research, 13, pp. 15–23. Morley, J.E. & Silver, A.J. (1988), “Anorexia in the elderly”, Neurobiological Aging 9 pp. 9-16. O’Sullivan, E. L. & Spangler, K.J. (1998), Experience marketing: Strategies for the new millennium. State College, PA: Venture Publishing.

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Pijls, R., Groen, B.H. & Oldeman, J. (2010), “Exploratory study on measuring the effects of culinary concepts on the atmospheric experience and emotions of elderly people.” Paper presented at EuroCHRIE 2010, Amsterdam, October 2010. Pijls, R., Schreiber, G.H. & Van Marle, R.S.F. (2011), Capturing the guest experience in hotels. Phase one: theoretical background and development of the Guest Experience Scan. Paper presented at EuroCHRIE, Dubrovnik, 19-22 0ctobre 2011. Roberts S.B., Fuss P., Heyman M.B., Evans W.J., Tsay R. & Rasmussen H. (1994), “Control of food intake in older men”, JAMA, 272: pp. 1601- 1606. Triemstra, M., Winters, S. Kool , R.B. & Wiegers, T.A. (2010), Measuring client experiences in long-term care in the Netherlands: a pilot study with the Consumer Quality Index Long-term Care, BMC Health Services Research; doi: 10.1186/1472-6963-10-95. Van den Haak, C. & Karlas, R. (2012), Anticiperen of reageren? Leeuwendeel zorginstellingen niet klaar voor toenemende marktwerking in de zorg. Amsterdam: BDO Branchegroep Zorg. Accessible at: http://www.bdo.nl/nl/publicaties/documents/anticiperen-of-reageren.pdf [accessed: Oct. 2nd 2013]. Zeithmal, V. A., Parasuraman, A., & Berry, L.L. (1990), Delivering quality service. New York: The Free Press.

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Workspace 2020 - Club, Hub and Co-work space: business models for optimal FM support for office workers in the future W.A. Termaat Saxion University of Applied Sciences [email protected] +31(0)6 209 16 835 H. van Sprang Saxion University of Applied Sciences [email protected] B.H.Groen Saxion University of Applied Sciences [email protected] ABSTRACT This paper presents the results of a two-year project called Workspace 2020, aimed to develop a model for the future office workspace. Work preferences are changing; the importance of the added value of workspace for individual and organizational performance is more and more recognized. Facility management (FM) should be prepared to offer the right kind of real estate and service to satisfy the office workers' needs in 2020. Therefore, the central research question is: what is the optimal FM support for office workers in 2020? Data were collected in 4 phases. In phase 1 a preliminary vision was drafted, based on extensive literature review and a triple case study. The subsequent triple validation process during phase 2 and 3 encompassed in-depth expert interviews, a survey, and in-depth interviews with FM-suppliers. This paper discusses the key aspects of the future workspace, such as working any place/any time, performance-based management, freedom of choice, and the increasing importance of networks and communities (e.g. for the self-employed). Phase 1-3 resulted in a validated vision, describing three options for the future workspace (beside the traditional office and home office): Cowork space, Hub and Club. Results indicate that large companies will tend to prefer shared service centres. SME's will either opt for complete outsourcing or “buy your own FM”. Cowork space, Hub and Club concepts will create new business opportunities for facility managers in 2020 (phase 4).

Keywords Workspace strategies, workspace concepts, office workers, business model, new ways of working 1 INTRODUCTION Nowadays, most organisations experience continuous change. New markets and work processes, economical developments, changing demographics and new technologies are known drivers for change. However, technology increases the speed of change and its impact on society results in what sociologist Zygmunt Bauman refers to as “liquid modernity” (Bauman, 2000). Solid structures are replaced by flexible and temporary solutions; organisational boundaries fade; hierarchical structures give way to (temporary) inter-organisational networks and partnerships. Many of the networks formed in recent years are based more on information than physical assets. 117


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One of the distinctions between the industrial economy and the information economy is the nature of costs (Mauboussin, 2004). Reputation and trust are key issues (SER, 2007). Since change remains the one constant in the workspace all that is certain is that the workspace of the future will be very different from that of today. Consequently, the workspace is in a state of transition, which is having a profound impact upon the way in which organisations plan, design, finance, occupy, use, and manage the workspace (Saurin et al., 2008). With the rise of (virtual) network organisations, the facility & real estate management role changes from service provider and tactical real estate manager to supervisor and strategic manager of “networked business process systems”. Key words are: connectivity, strategic partnerships, flexible, mobile network driven work environment, co-operation, and digital (paperless) in both policy and behaviour (CoRE, 2010). Work preferences are changing; the importance of the added value of workspace for individual and organizational performance is more and more recognized (Jensen et al., 2012). As real estate is relatively static, the solutions to increase adaptability are related to (work)space concepts and (hospitality) services, business process redesign, legal solutions (FMN & CoreNet Global, 2013). The work environment in 2020 exceeds building boundaries and includes multi-functional areas that combine work, housing and leisure. It is important to incorporate societal, technological and corporate developments, as well as the users’ needs in real estate development (FMN & CoreNet Global, 2013, p. 6). However, the future workforce is characterised by its diverse nature. In 2020 the population of the Netherlands will have increased but the active workforce will be declined, despite a higher participation of women (De Jong & Van Duin, 2011; Tucker, 2012). The majority of the workforce will be Generation X and Y, Baby Boomers are by now retired; Generation Y's preferences for meaningful, independent work, anywhere and anytime, will colour the war for talent (Bontekoning, 2011; Eisner, 2005; Lub, 2013); a sizeable number of professionals will be self-employed; third places and coworking are predicted to become more important (Spinuzzi, 2013). This has important consequences for office-based work, and calls for user segmentation and user-centred design in order to have a satisfactory fit between user and built environment. These market dynamics are the rationale to our main research question: What is the optimal FM support for office workers in 2020? This paper presents the results of a two-year project called Workspace 2020, aimed to develop a business model of FM tailored to the future office workspace. The field research is limited to Dutch office based organisations (> 50 staff). Between 2011 and 2013, experts and managers were asked to describe their vision on the future workspace. As predicting the future is no easy matter, a period of 10 years was chosen, hence the name of the project, 'Workspace 2020'. 2 RESEARCH METHODS Data were collected in 4 phases, from September 2011 to July 2013 (See Figure 2). In phase 1a preliminary vision was drafted, based on extensive literature review (1A) and exploratory research in the business context in 3 organisations (1B). The three case organisations represent specific sectors (profit, semi-government and government), taking into account the size of the organization. The subsequent triple validation process during phase 2 and 3 encompassed indepth expert interviews (N=16), panel discussions with future user groups (N=45), and a survey focused at core business perspective. A total of 115 respondents, either working as manager or staff in HR department (83%) or with a management position, filled in the survey. These respondents were chosen based on the assumption that they can voice the vision of organisations as well as employees and management.

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The maajority wass female (662%). Malee respondents were ssignificantlyy older thaan female responddents (479 and 3911 years, respeectively; t-teest, p=0.0044). Responddents were w working in the proffit sector (422%), for thee governmennt (27%), orr for semi-ggovernment organisatioons (30%); almost oone third of the responndents workk in the Raandstad (32% %), and half of the reespondents work inn the mid-eeastern proovinces (Geelderland, O Overijssel; 49%). The compositioon of the responsee shows thaat the HR ddepartmentss delivered significantlly more fem male responndents (2, p=0.00)), and the m mid-eastern pprovinces ssignificantlyy more menn (χ2, p=0.0220). Furtherrmore, the distributtion of respoondents oveer profit/sem miFigure 1: Research fframework

governm ment and goovernment w was significantly differeent betweenn the three rregions (χ2, p=0.027), with sem mi-governm ment especiaally located in the mid-eeastern provvinces. The result of phhase 2 and 3 is a vaalidated visiion on Workkspace 20200. In phase 4 these conncepts were translated too business models using the B Business Moodel Canvass (Osterwaldder & Pigneeur, 2010). The busineess models were coompleted wiith the inpuut from entrrepreneurs of similar bbusiness cooncepts in thhe current market (N=20) ( andd panel discuussions withh entrepreneeurs and FM M en RE connsultants (N= =18). 3 R RESULTS This chaapter contaiins – after a short introoduction bassed on the ooutput of phhase 1 - the results of phase 2,, 3 and 4 off the researchh.

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3.1 Phase 1 The output of phase 1 was a preliminary vision on Workspace 2020: Work 2020: The knowledge-based economy will shift to a network-based economy. Organisations limit themselves to the core business and will be surrounded by flexible peels of network organisations, experts, and flexible staff. Work will become more project-based, in changing (external) project teams. Technological developments and economic crisis will tighten the labour market. Organisations will aim for less, but higher qualified staff, whose quality will be an important competitive advantage. Workspace 2020: New Ways of Working (NWW) will be standard. This trend will cause a rise in the vacancy rate of office building. Only offices on A-locations will survive. Inner city and logistically attractive areas will emerge. Multifunctional areas and buildings will be the solution for the ever- changing demand for work environments. There will be a broader offer of workspace concepts. Organizations will focus on availability instead of possession. There will also be more attention for life cycle asset management. In 2020 three workspace concepts (besides the traditional office and home-office) are identified with future potential: 1. Club: organisations’ headquarters aimed at organizations’ core business; internal focus, facilitating collaboration and knowledge sharing (part of former traditional office). 2. Hub: regional office for short/mid-term use of space, focused on task performance (solo or team); compared to the former satellite concept in 2013 this concept is more user centred, and facilities possibly shared with other (external) companies to improve occupancy rates. 3. Co-workspace (former 3rd place): regional work and meeting space, commercial short/midterm rent of workspace, added value: high accessibility and network-centred. FM 2020: focus on cost reduction will change to maximising added value. Traditional FM will turn into FM intra- and entrepreneurship. End users will have more influence on the configuration of their workspace and tools. Buy your own FM will be more and more the standard. There will be a various offer of business models, depending on the size of the organisation:  large (>250 employees) => Shared Service Centres in combination with an increase of outsourcing of FM activities  medium (>50 employees) => facility sharing (with other organisations)  small ( be your own FM 3.2 Work in 2020 (phase 2 and 3) In 2020, the work force will consist of Generation X (1965-1980), Generation Y (1981-1995), and Generation Z (>1985) (Eisner, 2005). Generations have been shown to have different needs, expectations and skills (Bontekoning, 2007; Howe & Strauss, 2007; Lancaster & Stillman, 2005; Lub, 2013). A shortage of skilled labour is expected, as the younger generations will need to replace the retired Boomers (CBS, 2010). Increased productivity will not be the sole solution, and companies may have to compete for talents (Phillips & Roper, 2009; Ware & Grantham, 2003). Furthermore, as life-long employment with one company is decreasing rapidly, and employees' loyalty to their organisation is being replaced by loyalty to their profession, attracting and retaining staff will become crucial for business success. Twenge et al. (2010) found

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Generation Y to be quite self-confident, to have high expectations from their employers, and to be more likely to leave the organisation if their expectations are not met. In this respect, it is important to envision workers' preferences for 2020. Satisfaction with supervisor is an important factor in job satisfaction (Babin & Boles, 1996; Newsham et al., 2009). One of the characteristics of new ways of work is that employees will work anywhere/anytime. This requires emphasis on trust in the relationship between an employee and his/her superior, resulting in performance-based appraisals. Cook and Wall (1980) define trust as the extent to which one is willing to ascribe good intentions to and have confidence in the words and actions of other people. According to Van Baalen et al. (2007) “performance appraisal on results will increasingly become more important within organizations, whereby it is important that employees feel they are rewarded for their performance." Therefore, we asked respondents to indicate preferred leadership style for 2020. The majority of the survey respondents indeed indicated that the preference for 2020 is managing on trust and performance (70%), with supportive leadership in second position (17%). In 2020, the importance of networks and communities will increase (Palmer, 2006; SER, 2007; Johns & Gratton, 2013). To meet the required quality standards and level of flexibility, temporary teams will be common. Team members are selected on their added value, and will increasingly be self-employed (Spinuzzi, 2012), or employed by multiple organisations on smaller contracts. The survey respondents predict that in 2020 20-40% of employees will have a flexible contract; men predict a higher % of flexible contracts than women (Mann-Whitney, p=0.016). This increase in flexible contracts is in line with current predictions (European Commission, 2007; Holtshouse, 2010)). In 2020, the office worker will enjoy more freedom in exchange for increased responsibilities. Time and place independent work is standard. This will suit employees' need to balance work life and home life (Edwards et al., 2006; Sok et al., 2014). Output specification is supported by IT. A quarter of the respondents predict that all information will be available anytime anywhere, most state that it will be available partly within and partly outside the office (74%). This has an enormous impact on cooperation within and between organisations, and on staff recruitment. Only 3% of survey respondents’ expect staff in 2020 to work on a fixed schedule during office hours; 74% expects a combined fixed/flexible work schedule. Others (mainly male; 2, p=0,015) predict that schedules will be completely flexible (See Table 1). The relative importance of employment conditions is changing, caused by changing labour contracting. Respondents most value aspects like a pleasant atmosphere at work, and a meaningful job. Payment comes second. Generation Y is thought to be less loyal towards employers, and therefore be more inclined to change jobs when quaternary employment conditions are not fulfilled (Holtshouse, 2010). The relative importance of employment conditions is changing, caused by changing labour Table 3: Importance of employment terms and conditions in 2020 (N=115). Employment Mean Sd conditions Primary remuneration 3,85 ,596 Secondary e.g. holidays, leave, lease car, access to training, career 3,64 ,703 prospects Tertiary in-company facilities: canteen, staff outing, office design, 3,43 ,928 fitness room Quartary e.g. work atmosphere, meaningful work 4,37 ,705

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contracting. Respondents most value aspects like a pleasant atmosphere at work, and a meaningful job. Payment comes second. Generation Y is thought to be less loyal towards employers, and therefore be more inclined to change jobs when quaternary employment conditions are not fulfilled (Holtshouse, 2010). ANOVA showed no significant differences in importance of the 1st, 2nd, 3rd and 4th level employment conditions, respectively; the post hoc test (LSD) revealed that the government is predicted to value 2nd employment conditions lower than the profit sector (1-sided Anova, LSD; p=0.032) and quartary employment conditions lower than semi-governmental organisations (1-sided Anova, LSD; p=0.018). There is no moderating effect of job position, gender, or region. Conclusions on work in 2020: the increase in flexible schedules and temporary jobs (by choice of the employee as well as the employer), combined with preferences concerning employment conditions reflects an increased importance of the quality of the interaction between employees and organisations. Currently, a sizeable proportion of the workforce has temporary contract, or is self-employed. This trend will continue. If the predicted shortage of labour will occur, then employer need to pay attention to quaternary employment conditions to attract and keep motivated employees. 3.3 Workspace in 2020 (phase 2 and 3) Gensler’s 2008 Workspace Survey shows that the physical work environment is an asset with a specific and quantifiable impact on business success: top-performing companies have significantly higher-performing work environments than average companies. In today’s environment - where work processes must change quickly in response to customer demand and competitive pressures - the workspace must be highly agile. “Agility means more than having buildings and communication technology ready for alternative uses. It means continuously improving work and the infrastructure that supports it. Agility requires a dynamic relationship between work processes, the workspace, and the tools of work. Each must respond to changes in the others. Thus, the agile workspace must be co-invented with work. The agile workspace is also a system - a bundle of occupancy, connectivity, and managerial services that interact with the particular work of the organization” (Bell and Joroff, 2003). Contradicting the trend of globalization, our qualitative research indicates an increased focus on regions and local communities. Cooperation and co-creating are core aspects in this development. This increased focus on regional communities may be explained as a counter to urbanisation. Regions like Zeeland, Limburg and Groningen are faced with a decline in population, against growing urban areas like the Randstad. This influences the RE strategy of locations for organisations; access to potential workforce is important in the war for talent. The added value of the physical workspace is meeting others, sharing knowledge and ideas and for networking (Van Baalen et al., 2007; Gensler, 2008). Knowledge creation is an important outcome of collaboration. Research at MIT showed that people were five times more likely to turn to another individual for information than to search a non-human source such as a file or database, pointing to the value of interactive work as a business asset. It is estimated that over 70% of what people know about their jobs is gained through everyday interactions with their colleagues (Gensler, 2008). Appel-Meulenbroek (2010) found that spontaneous informal interaction is a better predictor for innovation than scheduled formal meetings.

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Regarding the location of workspace, the in-company office and the home office are predicted to be used by almost all respondents; working on the road, in the office of clients or partners, and in third party offices is mentioned by about one third of the respondents. These results show a number of significant differences between respondents based on position, sector, and region: HR managers predict a significant higher use of in-company offices, the profit sector has a significantly higher preference for working on the road and at client's offices, and in the Randstad network partners and restaurants will be more popular according to the respondents (Table 2). Due to the fairly conservative view from HRM on the in-company workspace may have consequences on the speed with which organisations implement new ways of working. Furthermore, it was expected that profit companies work in remote locations, because they have a more externally orientation. The higher use of grand cafes and restaurant for to work in the Randstad is probably caused by the more extensive offer of these kind of establishments. Table 4: Workspace locations in 2020. P= profit; SG = semi-government; G = government Location Office in company building Home office On the road

N 106 s(92%) 96 (84%) 42 (37%)

Position ,, p=.026 more HR -

At client's office Grand cafe or restaurant

46 (40%) -21 (18%) -

Sector -

Region -

, p=0.036, P>SG>G ,p=0.001, P>SG,G -

 , p=0.024*  , p=0.043** -

Network partners of my 36 (31%) company Third party offices 34 (30%) * Mostly Randstad; ** More Randstad + Eastern Region Accessibility by car will not change according to 74% of respondents; significantly more managers than HR staff predict a deterioration in this accessibility (Mann Whitney, p=0.020). However, new ways of work are supposed to improve accessibility, a mere 9% of respondents think that accessibility will decrease. The profit sector is more positive in its answers than (semi)government (Kruskall-Wallis, 2-sided, p=0.04). Respondents predict that in 2020 20-40% of employees will have a flexible contract; men predict a higher % of flexible contracts than women (Mann-Whitney, p=0.016). Only 19% of these flexible contracts will always have a workspace; more than half of the respondents think that less than 50% of the flex workers will have a workspace in 2020. There are significant differences between profit, semi-government and government (Kruskal-Wallis, p=0.004). Representatives for governmental organisations predicted the lowest number of workspaces for flexible staff.

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13th EurroFM Reseaarch Symposium work conceppts (2013) Figure 22: Present w

EF FMC 2014 Fiigure 3: Workspace conncepts 20200

In 2013 we see a doominant possition of thee traditional office (com mbined withh flexible use of home may have saatellite offices in the reggion, but w will share theeir surplus office). Larger orgaanisations m There is an upcoming of m2, ccaused by thhe decrease in staff, witth for exampple businesss partners. T market for businesss complexees: multi-tennant buildinngs with shhort/mid-terrm lease contracts. A relativelly new devvelopment iis the 3rd place: shorrt term woork (for inddividuals orr business communnities) and m meeting facilities (max. 1 day), onn highly acceessible locaations like ciity centres and traiin stations. Figures 2 and a 3 illustrrate the diffferent conceepts in a tw wo-axes model: focus (internaal vs. externaal) and locattion (user driven vs. coommunity drriven). For 20220, the resullts of this sttudy identiffy the potenntial of new w workspacee concepts, as well as the disapppearance of o others: 1. Club: organisattions’ headqquarters aim med at orgganisations’ core businness; internnal focus, mer traditional office). faciliitating collaaboration annd knowledgge sharing (ppart of form 2. Camppus: collecttion of officces centred around a Club, C focusssed on task performancce (former tradittional officee). 3. Hub:: regional office for shhort/mid-term m use of sppace, focussed on task performancce (solo or team m); comparedd to the form mer satellitee concept in 2013 this cconcept is m more user ceentred, and faciliities possiblly shared wiith other (exxternal) com mpanies to im mprove occuupancy rates. 4. Cowork-space ((former 3rd place): regiional work and meetinng space, coommercial short/mids a networkk centred. term term rent of workspacee, added vallue: high acccessibility and 5. Hom me-office (ass an explicit place of woork). with work. IIt supports Conclussion on worrkspace 2020: the agile workspace must be coo-invented w a full raange of worrkspaces andd facilitates rapid scalee-up and conntraction. Inn-company and home office arre predictedd to be used by almost aall respondeents, whereaas working oon the road, in clients' or partnners' officess, and in tthird party offices aree less used,, with signnificant influuences of positionn, sector and region. Only O a smalll part of sttaff workingg on a flexxible contract will be facilitateed with a workspace. From a F FM perspecctive this m may seem efficient; e hoowever, it introducces a seriouus risk for ddiminished creation annd sharing oof knowledgge. As a reesult of an increaseed importannce of inter-- and intra organisation o nal networkss, future offfice conceptts in 2020 will havve a strongeer external ffocus, and aan emphasiis on facilitaating and buuilding com mmunities. Not ownnership, butt access to w workspace w will be the focus of the future. In larger orgaanizations,

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HRM's have a considerable impact on policies regarding workspace. However, their apparently rather conservative views on workspace may inhibit developments in NWW in these kind of organisations. Smaller organisations will probably develop at a faster pace. 3.4 FM in 2020 (phase 4) Once facility - and real estate managers begin to think of the workspace as a bundle of services dedicated to support the enterprise’s work, and as a network of investment and contractual arrangements, they can move toward a more holistic view of workspace costs (Termaat, 2011). All phases - from planning through systems and facilities retirement - are considered. A good understanding of the added value of the workspace is essential to decide on investment trade-offs between space and IT, and different degrees of infrastructure outsourcing (Bell & Joroff, 2003; Jensen et al., 2012; Termaat, 2011). Agility requires that facility and real estate managers focus on the specifics of work as the driver of workspace design - intertwining their tasks with IT, HRM, and business processes. After all, real estate is not an end in itself; its only purpose is to serve the value-creating activities of the enterprise (Jensen et al., 2012). In 2004 CoreNet Global described the workspace 2010 in a Workspace Strategist Model; the core characteristic of the model is the integral approach of workspace-related issues. This model is in accordance with the results of our study: in 2020 larger organisations will prefer to organise FM, HR, IT and CREM in Shared Service Centres; they will take well-thought make-or-buy decision, in line with the business strategy. Property Providers should develop new business models, tailored to the needs of availability rather than ownership. Current PPPs are a good example of such business models. The present study indicates a preference in smaller organisations for a different concept: ‘Buy your own FM’: users are provided with a personal FM budget – to be spent on workspace, IT, transportation, and tools. This enhances a staff members’ freedom of choice, and is a way to respond to workforce diversity. Providers of work and network sites have a great future. Providing an inspiring working environment and continuous innovation are key success factors, with an increasingly important role for the hospitality industry and active participation of user communities. In phase 4 (Figure 2) the Club, Hub and Cowork space concepts have been translated to Canvas business models (see Table 3), each requiring a different role for FM. In the cowork space the facility manager acts as an entrepreneur in hospitality; for the Hub (s)he to supports and facilitates hospitality; in the Club (s)he is host and organisation-based director of hospitality. Conclusions on FM 2020: Agility requires that facility and real estate managers focus on the specifics of work as the driver of workspace design - intertwining what they do with IT, HRM, and business processes. In 2020 larger organisations will prefer to organise FM, HR, IT and CREM in Shared Service Centres. Smaller organisations will embrace ‘Buy your own FM’. Providers of work and network sites have a great future. Providing an inspiring working environment and continuous innovation are key success factors, with an increasingly important role for the hospitality industry and active participation of user communities. Three concepts with great potential for the future are: Cowork space, Hub, and Club.

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Tablle 5: Busineess model C Canvas for coo-work spacce, Hub andd Club.

4 C CONCLUS SIONS The workplace is iin a state off transition. This reseaarch reports on a 2-yeaar project innto current visions on Worksppace 2020, based on liiterature revview, experrt interview ws, panel discussions, case stuudies, and a survey am mong HR prrofessionals and managgers. Those involved are a mostly users off corporate offices, nott visionariess; they are aware of cuurrents trendds, maybe uup-to-date with neew concepts, but theirr views maay be ratheer colouredd by alreaddy existing trends in workspaace. Their vviews are a valuable source of innformation oon what willl happen inn the near future, bbut their insight in out-oof-the-box cconcepts is llimited. In 20200 larger orgaanisations w will prefer tto organise FM, HR, IT T and CRE EM in Shareed Service Centres, with a weell-thought make-or-buuy decision. Smaller oorganisations will embrrace ‘Buy your ow wn FM’ as a response to t workforcce diversity and need fo for freedom of choice aas to how, when annd where staaff works. P Providers off work and network sitees have a grreat future. Providing an inspiiring workinng environm ment and coontinuous innovation aare key succcess factorss, with an increasingly imporrtant role for the hoospitality inndustry annd active pparticipationn of user fo the futurre are: Cow work space, Hub, and communnities. Threee concepts with great potential for Club. E Each conceppt requires a different rrole for FM M: in the co--workspace the facilityy manager acts as an entrepreneur in hoospitality oor communiity managerr; the Hub requires thhe facility p h hospitality; manager to supportt and facilittate a busineess-like worrking enviroonment by providing Club the faccility managger is the hoost and orgganisation-baased directoor of hospittality. The in the C 126


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task of a facility manager will remain, but question is, do we call them facility 'managers'? Maybe it's better to speak of 'facility professionals': same knowledge, but no more fixed roles. ACKNOWLEDGMENTS The authors would like to thank all respondents and FM students that participated; Achmea, Tennet, draaijer+partners, and Facility Management Nederland for supporting this research. A special thank you to dr. D.J.M. van der Voordt for his critical reviews and sharing of knowledge. REFERENCES Appel - Meulenbroek, H.A.J.A. (2010), “Knowledge sharing through co-presence,” Facilities, 28(3/4), 189-205. Baalen, P. van, Dupain, W., Engels, R., Go, F., Van Heck, E., Kieboom, F., Legerstee, M., Van Nunen, J., Van Oosterhout, M., and Vermeulen, V. (2007), “World of Work, Results from the New World of Work research Report 2007”. RSM, Erasmus University, Rotterdam. Babin, B.J. and Boles, J.S. (1996), "The effects of perceived co-worker involvement and supervisor support on service provider role stress, performance and job satisfaction", Journal of Retailing, 72, 1, 57–75 Bauman, Z. (2000), Liquid modernity, Blackwell Publishers Ltd, Oxford. Bell, M. and Joroff, M. (2003), “The workplace as enabler of business agility”, Corporate Real Estate Leader, January, 32-34. Bontekoning, A.C. (2011) “Het Nieuwe Samen Werken voor alle generaties. Over de generatiewisseling die gaande is”, LoopbaanVisie, 1, 4-9. Bontekoning, A. (2007), “Generaties in organisaties”. PhD Thesis. Available at: www.aartbontekoning.com/nieuwsenart/nieuwsenart.htm [Accessed: 28 October 2009]. CoreNet Global (2004). “Synthesis Report: A Framework for Thriving in the Networked Enterprise”, Atlanta, USA, CoreNet Global. CoRE 2010 (2010), “The role of technology and the web”, Atlanta, USA, CoreNet Global. De Jong, A., & Duin, C. van (2011) "Regionale bevolkings- en huishoudensprognose 2011– 2040: sterke regionale contrasten", Ruimtelijk Planbureau, Available at www.pbl.nl. [Accessed: 2 January 2014, 13:40] Eisner, S.P. (2005), “Managing generation Y”, SAM Advanced Management Journal, 70,4, 4-15. European Commission (2007) Towards Common Principles of Flexicurity: More and better jobs through flexibility and security, Office for Official Publications of the European Communities, Luxembourg FM, CoreNet Global (2013). “Wat wil de eindgebruiker? Op naar een vraaggestuurde kantorenmarkt. Samenvatting resultaten fase 1”, Available at: http://www.fmn.nl/cms/showpage.aspx?id=130 [accessed: Aug. 2013] Gensler (2008),“Workplace Survey 2008. United States.” Available at: http://www.gensler.com/uploads/documents/2008_Gensler_Workplace_Survey_US_09_30_200 9.pdf [accessed June 2012]. Holtshouse, D. (2010), “Knowledge work 2020: thinking ahead about knowledge work”, On the Horizon 18, 3, 193-2003 Howe, N., & Strauss, W. (2007), "The next 20 years: How customer and workforce attitudes will evolve", Harvard Business Review, Jul-Aug, 41-52.

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Jensen, P.A., Van der Voordt, T., Coenen, C. (eds.) (2012), The Added Value of Facilities Management: Concepts, Findings and Perspectives, Centre for Facilities Management & Polyteknisk Forlag, Lyngby, Denmark. Johns, Y. & Gratton, L. (2013), "The third wave of virtual work", Harvard Business Review, Jan/Feb, 1-9. Lancaster, L.C. and Stillman, D. (2005), “When generations collide: Who they are. Why they clash. How to solve the generational puzzle at work”, Collins Business, New York. Lub, X.D. (2013) “Generations and their psychological contracts”, PhD Thesis, Tilburg University. Mauboussin, M.J. (2010), “Maubousson on Strtegy: Exploring Network Economics”. Legg Mason Capital Management. Newsham, G., Brand, J., Donnelly, C., Veitch, J., Aries, M., and Charles, K. (2009), "Linking indoor environment conditions to job satisfaction: a field study", Building Research Information, 37, 2, 129-147. Osterwalder, A., & Pigneur, Y. (2010), “Business Model Generatie“, Deventer: Kluwer. Palmer, A. (Ed.) (2006), “Foresight 2020. Economic, Industry and Corporate Trends”, Economist Intelligence United, London. Phillips, D.R., and Roper, K.O. (2009), "A framework for talent management in real estate", Journal of Corporate Real Estate Management, 11, 1, 7-16. Saurin, R., Ratcliff, J., Puybaraud, M. (2008), “Tomorrows’ workplace: a futures approach using prospective through scenarios”, Journal of Corporate Real Estate, 10, 4, 243-261 Sociaal Cultureel Planbureau (2011), “Vraag naar arbeid 2011”, Available at: http://www.hrkiosk.nl/xbook/id/8270 (accessed April 12, 2012). SER, (2007). “Inspirerend leiderschap in het Nederland van 2020”, Annual conference of the "Nederlandse Maatschappij voor Nijverheid en Handel" [presentation], June 8. Available on: www.ser.nl/nl/actueel (accessed November 2012). Sok, J., Lub, X.D., Blomme, R.J. (2014). “Generations and work-home values: the interplay between historical trends and events, and generational work-home identity”, In: Parry, E. (Ed.) Generational Diversity at Work: New Research Perspectives. Palgrave/MacMillan. Spinuzzi, C. (2012), "Working Alone Together: Coworking as Emergent Collaborative Activity", Journal of Business and Technical Communication, 26, 4, 399-441. Termaat, A. (2011), “High Performance Workspace: de business case”, [dissertation MSc Real Estate Greenwich University]. Deventer: Saxion University of Applied Science. Tucker, C. (2012), "Active ageing and pensions". Social Europe guide, Volume 3, Luxembourg: European Union. Twenge, J.M., Campbell, S.M., Hoffman, B.J., Lance, C.E. (2010), “Generational Differences in Work Values: Leisure and Extrinsic Values Increasing, Social and Intrinsic Values Decreasing”, Journal of Management, 36, 5, 1117-1142. Ware, J., & Grantham, C. (2003), “The future of work: changing patterns of workforce management and their impact on the workplace”, Journal of Facilities Management, 2, 2, 142159. Willemsen, J., (2012). Waar staat HRM in de toekomst? En blik op 2020. HR Strategie. March, 14-16.

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Contribution of facility management to hospital(ity) issues B.H. Groen Saxion University of Applied Sciences [email protected] +31(0)645594501 ABSTRACT Purpose: Changes in financing induce Dutch hospitals to become more market-driven; they aim at high customer (patient) satisfaction. Therefore, hospitals put more and more emphasis on hospitality. A hospital stay involves more than medical treatment: a bed to sleep in, a room, food and drink, and interaction with medical and facility staff. What aspects of a hospital stay are related most to hospitality according to patients? Theory: definitions of hospitality, including the four dimensions of hospitality as formulated by Brotherton; added value of FM in healthcare. Design/methodology/approach: three surveys among patients of two Dutch hospitals, regarding aspects of hospitality. First, patients were asked to rate hospital staff on behavioural aspects related to hospitality. In a second survey patients were asked to select characteristic aspects of hospitality. Third, interviews and a survey in a third hospital showed which aspects of hospitality patients most value. Findings: indicate that aspects of hospitality are valued by patients in hospitals, and that hospitality contributes to patient satisfaction. Behavioural aspects are relevant for all staff, including FM staff. Tangible aspects of hospitality, including coffee, rooms/spaces and reception, represent typical FM functions. Therefore, these represent added value of FM in hospital environments. Originality/value: the results contribute to an evidential definition of hospitality in health care.

Keywords health care, hospitality, patient satisfaction and experience 1 INTRODUCTION Facility management (FM) is a relatively new profession (Alexander, 2009). It is a divers field (Grimshaw, 2003), covering a wide range of processes, services, activities, and facilities. According to the CEN (European Committee for Standardization, 2009) 'Facility Management is the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities'. According to Friday and Cotts (1995) these are e.g. accommodation, maintenance, cleaning, security and reception, utilities, internal decoration, signage, and catering. It can be argued that facility support for organisations is based on a collection of more or less specialised technical and service-related tasks which are not part of the primary process, but which are essential for the functioning of this primary process. The importance of insight into the contribution of FM in general is recognised in FM literature (Becker and Parson, 2007); FM can contribute to space and services (basic products), with impact on (among others) staff and customers (Jensen et al., 2010). Hospitals in the Netherlands are government-funded, and divided into academic, top-clinical and general hospitals. Total costs for healthcare were 90 billion Euros in 2011 (Gezondheid in zorg

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en cijfers, 2012). The position of the patient in Dutch health care has been evolving since the 1980s. Patient rights became prominent during the 1980s and 1990s, but since the millennium patients are more and more seen as consumers (Grit et al., 2009). In the present market, patients/consumers with a restitution health care policy may freely choose their providers. In the case of a policy based on direct payment, people may choose from a -usually- comprehensive list of contracted providers. This theoretically leads to competition between hospitals and practitioners, for insurance contracts as well as for patients (Delnoij, 2010); this creates a need for comparative information concerning aspects like quality and costs of care, effectiveness and safety of health services, access and availability, waiting times, and information (Delnoij et al., 2010). So, patients have become important players expected to make independent and rational choices (Grit et al., 2008) and as a result, the sector needs to become more market-driven (RVZ, 2006; Rotscheid & Diepstraten, 2007). Therefore, hospitals are aiming at high customer (patient) satisfaction, to ensure return visits (Clark et al., 2007). Word-of-mouth is one of the factors that influences hospital selection; people choose a hospital based on information obtained from their general practitioner (42%) and, to a lesser extent, friends and relatives (11.4%), leaflets (7.8%), the hospital web site (7.5%) or the specialist (3.4%) (Schaefer et al., 2007). Patient satisfaction concerns medical treatment as well as a hotel function (Oz, 1991), and both functions play a role in the competition between hospitals. Research has shown that patient satisfaction regarding nonmedical aspects of a hospital stay have a large effect on overall satisfaction. "Customers naturally look for clues that can help explain what they don't understand or see" (Berry & Bendapudi, 2004). Facility management may well deliver clues that patients interpret as evidence of the quality of medical care, and thereby increase patient satisfaction. Indeed, according to Prevosth and Van der Voordt (2011), Dutch hospitals see added value of facility management (FM) in healthcare primarily with respect to customer- and job satisfaction, with productivity and lowering costs in second and third place. Appropriate measures to increase satisfaction are: hospitality, realizing a functional, pleasant, and comfortable environment, and a healthy indoor climate and high-quality services. Other potential values of FM, namely risk management, value of real estate, flexibility, organizational culture, image, innovation, sustainability, and healing environment were considered less important. Hospitals do show an increasing focus on hospitality (King, 1995; Severt et al., 2008). Patients more and more expect to be treated as customers, as individuals, also in healthcare, and hospitals use hospitality to profile themselves. Dutch hospitals may join the competition 'Hospitality with stars'5. This despite the obvious fact that hospitals are not part of the hospitality industry: motives to visit a hospital are usually need not leisure, and an obligation not a choice. The patient (not client or customer) relinquishes (part of his/her) autonomy, and will rely to a smaller or larger extent on the physical, social and medical hospital environment. Uncertainty, fear, discomfort, and pain, combined with a loss of privacy: hospitality in a hospital environment is alike but not identical to hospitality in the traditional hospitality industry. The reductionism of the medical world needs to be balanced by a holistic hospitable approach. However, the content and meaning of hospitality is still a matter of debate, in the hospitality industry, but also in healthcare. So what is hospitality? "A contemporaneous human exchange, which is voluntarily entered into, and designed to enhance the mutual wellbeing of the parties concerned through the provision of accommodation and food or drink". (Brotherton, 1999) 5

http://www.zorgmetsterren.nl

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"A balanced combination of (1) the material product in a narrow sense, (2) the behaviour and attitude of the employees who come in direct contact with the guests, and (3) the environment (the accommodation)" (Reuland et al., 1985) "(1) It is conferred by a host on a guest who is away from home. (2) It is interactive, involving the coming together of a provider and receiver. (3) It is comprised of a blend of tangible and intangible factors. (4) The host provides for the guest’s security, psychological and physiological comfort" (Hepple, Kipps and Thomson, 1990) Especially the definition by Hepple et al. (1990) seems suitable for a hospital environment. Furthermore, these definitions show that hospitality is behaviour and attitude, but also tangibles like accommodation and food. Brotherton and Wood (2008) have suggested that hospitality comprises four dimensions: spatial, temporal, behavioural and physical. In healthcare these would be the hospital itself, the occasion (e.g. making an appointment, a consultation, short stay, long stay), staff behaviour (medical and FM staff), and the physical environment and services provided, respectively. Many of the tangible factors (accommodation, food and drink, cleanliness) are taken care of by FM. The dimensions behaviour and attitude refer medical as well as FM staff. Literature on hospitality refers to guests. Could the patient be considered to be a guest? Telfer (1996) has developed a classification of guests, in which the second type of guest is the most interesting one for this research: 'those in need'. She even uses the term “good-Samaritan hospitality”. Her point of view is that hospitality includes “a psychological need of a kind which can be met particularly well by hospitality, such as loneliness or the need to feel valued as an individual”. Therefore, patients may be considered to be guests of a hospital. However, many discussions on the nature of hospitality mention that the stranger must be transformed from potential threat to ally by the offer of hospitality. Hospitality then serves as a means for the host and guest to protect both from hostility. In a hospital setting, it is primarily the patients that need to be protected, and true hospitality might be a suitable means. Brotherton (2005) and Brotherton and Wood (2008) have researched which words customers associate with hospitality in the traditional hospitality industry. They have shown the applicability of the four dimensions of hospitality in these settings. This paper will expand their research to hospital settings, to determine which aspects (whether physical or behavioural) convey the feeling of hospitality. Thereby, this paper aims to contribute to an evidential definition of hospitality, and to optimization of (the added value of) hospitality in hospitals. Implications for facility management will be suggested. 2 METHODS The quantitative, cross-sectional study was conducted in two academic (AC) hospitals (AC1, Short stay and day treatment, N=92, response rate 30%; AC2, Radiology, N=509, response rate 64%), and one top clinical (TC) hospital (TC, Short stay, initial measurement with N=102, response rate 76%; Short stay second measurement N=92, response rate 55%; Dietetics and Physiotherapy, N=165, response rate 73%). The survey was developed based on the Experience indicator from Senta Multisensory Concepting and a pilot in a regional hospital. It was adapted to the local situation in each hospital involved. Students of the Hospitality Business School and the School of Health visited the departments involved during 3 weeks, and handed out the survey to all patients in person in the waiting areas or on the ward. The survey was self-administered, but patients could ask for assistance. The survey contained questions on patient characteristics, e.g. gender, satisfaction and experience of staff behaviour (and satisfaction with services and

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facilities, which is not the topic of this paper), in the pre-admission phase, reception, stay, and aftercare. Question could be answered on a 7-point Likert scale (AC1, TC) or 5-point scale (AC2) ranging from 'very negative' to 'very positive', or from 'to a very small extent' to 'to a very large extent', or a semantic scale; surveys also contained a limited number of open questions on hospitality. Closed questions were analyzed with SPSS 21. Open questions were analyzed with content analysis, using open and axial coding. Codes can refer to either manifest or latent content (Graneheim and Lundman, 2004). Open codes were quantified. The study at AC2 was supplemented with 8 in-depth interviews with patients from the Radiology department; the transcripts of the interviews were analyzed using open and axial coding, using the themes and subthemes developed during the analysis of the open survey questions. 3 RESULTS The surveys for AC1 and TC (Short stay, both measurements) asked respondents to rate a number of characteristics concerning approach by nurses, medical staff, cleaning staff, and catering staff, on a 7-point Likert scale (1=very low - 7=very high). A number of words representing characteristics commonly associated with hospitality were selected for the survey, (see e.g. Brotherton, 2005). Ratings were high, with very few respondents scoring any of the characteristics below 4 (see example in Table 1). Differences between scores for individual characteristics were too small to draw conclusions on importance of these characteristics. There are differences between the mean scores for nurses, medical staff, cleaning staff, and room service staff, as well as between hospitals. However, these differences were small and most times not significant; inter-hospital comparison was complicated by the fact that the selection of characteristics measured varied between the three measurements (due to preferences of the departments in the hospitals were the survey was carried out, see Table 2). The value of these ratings for insight in hospitality was therefore limited, and did not enable determining which characteristics are typical for hospitality in healthcare. To determine whether the characteristics could be described with a limited number of concepts factor analysis was applied to the data for the TC (combined measurements). However, factor analysis (principal component analysis, KMO 0.841, Bartlett Sig. 0.00, 48% variance explained) for combined measurement at DZ Short stay showed that all characteristics for nurses loaded as one single factor. To determine which aspects patients associate with hospitality, the survey for the patients for Dietetics and Physiotherapy contained a question asking patients to choose 3 out of 11 items (see Table 3). The sample for TC consisted of 165 patients (Dietetics and Physiotherapy; outpatients as well as clinical patients). 'Taking adequate time' was selected by 53% of the respondents, next came items on listening and involvement. Quality of care came fourth. Freedom of choice and recognizing the patient were hardly chosen) (see Table 3). As patient characteristics like gender Table 1: Respondents in AC1 rated a number of characteristics of nursing staff on 7-point Likert scale, ranging from 1 (very low) to 7 (very high). Frequencies, mean and S.D. are shown.

Polite Friendly Helpful Trustworthy

Score on 7-point Likert scale 1 2 3 4 5 1 1 1 2 1 2 2

6 26 27 26 28

7 60 61 61 58

N

Mean and S.D.

88 90 90 88

6.65  0,57 6.64  0,57 6.63  0,59 6.61  0,62

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13th EuroFM Research Symposium Hospitable Involved Feeling safe with staff Professional Expertise Trusting staff Quality of contact Personal approach Speed Recognition Sum of scores

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2

3 5 4 3

1 2 1 6 4 1 2 3 5 3

29 31 31 28 27 37 32 27 32 31

57 53 50 52 52 43 46 53 44 46

88 86 83 86 86 82 83 88 85 85 75

6,61  0,58 6.56  0,60 6.55  0,65 6.53  0,63 6.49  0,75 6.48  0,65 6.46  0,72 6.45  0,72 6.36  0,80 6.36  0,90 6.51  0,61

and age are known to influence patient satisfaction, we checked the influence of these characteristics. Mean age of the sample was 51 ± 21 years, men were significantly older then women (56 ± 21 and 48 ± 21, respectively; T-test, p=0.013). For the analysis, patients were grouped into four generations, namely Traditionalists, Baby Boomers, Generation X and Generation Y (Eisner, 2005). The sample showed significant differences between the distribution of men and women over the generations (2, p=0.032), and outpatients differed significantly from clinical patients with respect to generation (2, p=0.00). There were no significant differences between men and women, or patients from Dietetics and Physiotherapy, but outpatients mentioned 'respect' more then clinical patients (2, p=0.016). Furthermore, there were significant differences regarding the importance of 'be involved' and 'be polite' between patients from different generations. Generation X (born between 1981 and 1995) valued involvement less and politeness more than the other generations (2, p=0.036 and p=0.024). The survey for the Radiology Department (AC2) contained an open question, asking patients to describe the meaning of hospitality as well as pointes for improvement of aspects thereof (approach, services, and physical space); 239 patients answered the question. Table 2: Average scores for nursing staff, medical staff, room service and cleaning staff on characteristics like politeness, friendliness and trustworthiness; results from 3 separate measurements.

AC1 Nurses

Mean and S.D. 6.51  0.68

N 75

Medical specialists

6.32  0.97

72

Room service

6.39  0.74 5.64  1.09

72

Cleaning staff

40

polite, friendly, helpful, trustworthy, hospitable, involved, secure, professional, expertise, personal approach, speed, recognizable, quality of contact polite, friendly, helpful, trustworthy, hospitable, involved, secure, professional, expertise, personal approach, speed, recognizable, quality of contact, clear, involved, polite, helpful, professional, expertise, speed, recognizable polite, helpful, professional, expertise, speed, recognizable,

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13th EuroFM Research Symposium TC, Short stay, Mean and first measurement S.D. Nurses 6.29  0.44 Medical 6.37  specialists 0.54 Room service 6.33  0.60 Cleaning staff 6.35  0.53 TC, Short stay, second measurement Nurses Medical specialists Room service Cleaning staff

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N 96

polite, friendly, helpful, trustworthy, hospitable, involved, expertise, approach, recognizable, not hurried, 102 expertise, approach, not hurried, attitude, 97 57

Mean and S.D.

N

5.96  0.42 6.06  0.6

88

6.00  0.36 5.50  0.83

87

80

45

polite, friendly, helpful, hospitable, expertise, approach, personal approach, recognizable, not hurried, polite, friendly, hospitable, expertise, recognizable, not hurried,

polite, friendly, trustworthy, hospitable, involved, not hurried, expertise, recognizable, expertise, not hurried, approach, attitude, polite, friendly, helpful, trustworthy, hospitable, involved, professional, not hurried, recognizable, polite, friendly, hospitable, professional, not hurried, recognizable

These data do show which aspects of hospitality are valued by patients. Within the behavioural dimension patients valued 'being taken care of' highest: be helpful, to set at rest, reassure, to set at ease, words that indicate that patients are insecure and need guidance during their hospital stay. The second most mentioned aspect is friendliness, followed by reception, respect, adequate information, and empathy. Patients value the reception at the hospital, the feeling of being welcome. They require adequate information on what is going to happen, delivered by friendly staff, that respects them as people. Many respondents wrote down that they did not want to be considered a number. Empathy is scored decidedly less than friendliness. Aspects of space and facilities were also mentioned, but less often. Two aspects stood out in these responses. First of all, the availability of coffee, in waiting areas, for visitors and for inpatients. Second, that spaces are adequate, also for those using wheelchairs or walkers. This again refers to patients' wish to be seen as persons that need to be taken care of. Table 3: Patients' selection of words describing 'hospitality'; they selected 3 out of 11 items (TC, Dietetics and Physiotherapy, N=165).

N=165 Taking adequate time Listen to the patient Be involved Good (medical) care Be friendly

Rank 1 2 3 4 5

Total 87 66 60 56 54

Total (%) 53 40 36 34 33

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13th EuroFM Research Symposium Attention Showing respect Be helpful Being polite Giving freedom of choice Recognize the patient

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49 37 34 32 7 7

30 22 21 19 4 4

When compared to the results of Brotherton (2005) and Brotherton and Wood (2008), it is clear that their four dimensions are suitable to categorize the aspects mentioned by patients, especially the behavioural and physical dimension (the spatial dimension being the hospital, and the temporal being the consultation). In both hospital and hospitality industry the behavioural dimension is most important. However, 'taking care of the patient, be helpful, to set at rest, reassure, to set at ease' and 'respect for patient as individual, respect for privacy' seem to be specific for healthcare, whereas 'friendliness' and 'empathy, warmth, attention, to listen, to show understanding and interest, involvement' appear to be general characteristics. Furthermore, the physical dimension is more often mentioned in the hospital environment. Cleanliness and comfort are general characteristics, but signage/routing, transportation and planning not. Furthermore, providing adequate information seems typical for the healthcare setting. Kleefstra et al. (2010) have measured patient satisfaction in Dutch academic hospitals. They showed that information provided by nurses upon admission and reception at the ward were the most important aspects of the admission procedure. Furthermore, satisfaction with nursing staff is determined by the way nurses helped patients when asked for help, and in general how nurses approached patients. Also approachability of hospital staff in case of questions, clarity of information as well as the amount of information were found to be important aspects contributing to patient satisfaction. Though the research by Kleefstra et al. (2010) was aimed at patient satisfaction, it could be argued that the aspects mentioned in Table 4 (and 3) refer to aspects of hospitality. Table 4: Aspects related to hospitality, mentioned in interviews and survey at Radiology department. Numbers in column 'interviews' refer to interviewees. Numbers in column 'survey' refer to number of respondents that mentioned this aspect in open questions.

Theme within dimension Approach

Subtheme

Interviews

Survey

1,1,2,3,3,3,4,4, 5,6,7 3,3,7,8 3,3,5,6

72x

3,6

25x

4,5,6,7 5

23x 6x

kind, agreeable

1

6x

eye contact, address, smile, handshake

3,3,4,4,5,7

5x

Dimension: Behaviour taking care of the patient, be helpful, to set at rest, reassure, to set at ease friendliness respect for patient as individual, respect for privacy empathy, warmth, attention, to listen, to show understanding and interest, involvement reception taking time

51x 25x

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Information Planning, waiting time Transport Signage, walking distances Medical care Facilities Rooms and spaces

Dimension: Physical providing adequate and honest information (understandable) opportunity to ask questions planning itself and waiting time; efficient and quick procedures e.g. (inadequate) equipment for transport

quality of care, trusting the doctor coffee size (toilet, changing room, waiting room, locker) ambiance (colours, tidiness, clean) furniture other

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1,1,1,3,4,7

22x

1,1,1,2,7

4x 10x

1,1 1,1,4,5,5,7

2x 4x

2,2 1,2,3,5,6 1,1,2,2,3,5,5,6

5x 8x 1x

1,3,3,5,5,7 1 5,5

6x 1x 2x

Lashley et al. (2005) researched whether people were able to recognize hospitality experiences as being genuine in commercial as well as domestic settings. When asked to recollect memorable meal experiences, the ratio commercial/domestic was 50/50: "interestingly, both appeared to be recognized as having authenticity, though the language of domestic hospitality was used to evaluate experiences in commercial settings. Emotional requirements to feel safe and secure, welcome and genuinely valued dominate the assessment of authenticity in both settings." The stranger must be transformed from potential threat to ally by the offer of hospitality. Hospitality then serves as a means for the host and guest to protect both from hostility. 4 CONCLUSION The objective of this paper was to contribute to an evidential definition of hospitality. Patients were asked what they associate with hospitality in a hospital setting. Results were interpreted using the four dimensions of hospitality proposed by Brotherton (2005). Results show that open questions regarding hospitality provide more useful answers than closed survey questions. Furthermore, the behavioural dimension was most often mentioned. Behaviour that provides reassurance, and shows respect for the patient as an individual person seems both important and specific for the perception of hospitality in a hospital; the hospital patient is indeed an example of Telfer's type second type of guest, 'those in need'. Friendliness and attention are also important, but these are general characteristics. All behaviours may refer to medical as well as FM staff. The physical dimension in hospitals showed to be an essential element for the perception of hospitality. Patients mentioned e.g. cleanliness and tidiness, comfort, the availability of coffee. Furthermore, during the interviews patients often mentioned that spaces are adequate for those patients that need a wheelchair or walker. Added value of FM may concern realizing a functional, pleasant, and comfortable environment (the physical dimension), and behaviour that makes patients feel at ease, and valued as an individual. This will reinforce the feeling of safety, an important aspect of hospitality in a hospital. 136


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ACKNOWLEDGMENTS We thank all students that have contributed to this research. REFERENCES Alexander, K. (2009) "Facilities management futures. The next generation", European Facilities Management. Centre for Facilities Management, EuroFM Publication, Manchester. Becker, F. & Parsons, K.S. (2007) "Hospital facilities and the role of evidence-based design", Journal of Facilities Management, 5, 4, 263-274. Berry, L.L. & Bendapudi, N. (2003), "Clueing in customers", Harvard Business Review (February), 100-106. Brotherton, B. (1999) "Towards a definitive view of the nature of hospitality and hospitality management", International Journal of Contemporary Hospitality Management, 11, 4, 165-173 Brotherton, B. (2005) "The nature of hospitality: Customer perceptions and implications", Tourism and Hospitality Planning & Development, 2, 3, 139-153. Brotherton, B. & Wood, R.C. (2008) The Nature and Meanings of ‘Hospitality,” In: The Sage Handbook of Hospitality Management, Sage Publications Ltd., London, 35-61. CEN (2009) What is FM? [online] Available at: http://www.eurofm.org/about-us/what is fm/ [accessed July 2012] Clark, P.A., Wolosai, R.J. & Gavran, G.G. (2007) "Customer convergence: patients, physicians, and employees share in the experience and evaluation of health care quality", Health Marketing Quarterly, 23, 3, 79-99. Delnoij, D.M.J., Rademakers, J.D.J.M. & Groenewegen, P. (2010) "The Dutch consumer quality index: an example of stakeholder involvement in indicator development". BMC Health Services Research, 10, 88-100. Eisner, S.P. (2005), "Managing generation Y", SAM Advanced Management Journal, 70, 4, 4-15. Friday, S. & Cotts, D.G. (1995), Quality Facility Management, Wiley, New York, NY. Gezondheid in zorg en cijfers 2012 (2012) CBS, Den Haag [online] Available at: www.cbs.nl/NR/rdonlyres/B438B6AC-BAB5-4F71-A7F326EB01FE66EF/0/2012c156puberr.pdf [accessed November 2013] Graneheim, U. H., & Lundman, B. (2004). "Qualitative content analysis in nursing research: concepts, procedures and measures to achieve trustworthiness", Nurse Education Today, 24, 2, 105-112. Grimshaw, R.W. (2003) "Facilities Management: the professional interface", Facilities, 21, 3/4, 50-57 Grit, K., Van de Bovenkamp, H. & Bal, R. (2008) De positie van de zorggebruiker in een veranderend stelsel [The position of the health consumer in a changing system], Instituut Beleid en Management Gezondheidszorg, Rotterdam. Hepple, J., Kipps, M. & Thomson, J. (1990) "The concept of hospitality and an evaluation of its applicability to the experience of hospital patients", International Journal of Hospitality Management, 9, 4, 305-318. Jensen, P.A. (2010) "The Facilities Management Value Map: a conceptual framework", Facilities, 28, 3/4, 175 - 188 King, C.A. (1995). What is hospitality? International Journal of Hospitality Management, 14, 3/4, 219-234.

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Kleefstra, S. M., Kool, R. B., Veldkamp, C. M. A., Winters-van der Meer, A. C. M., Mens, M. A. P., Blijham, G. H. & Haes, J. C. J. M. de. (2010) "A core questionnaire for the assessment of patient satisfaction in academic hospitals in The Netherlands: development and first results in a nationwide study", Quality & safety in health care, 19, 5, 1-6. Lashley, C. & Rowson, B. (2005), Developing Management Skills in Blackpool’s Small Hotel Sector: A Research Report for England’s North West Tourism Skills Network, Nottingham Trent University, Nottingham. Oz, M.C., Zikria, J., Mutrie, C., Slater, J.P., Scott, C., Lehman, S., Connolly, M.W., Asher, D.T., Ting, W. & Namerow, P.B. (2001) "Patient evaluation of the hotel function of hospitals", Heart Surgery Forum, 4, 2, 166-71. Prevosth, J. & Van der Voordt, T.J.M (2011) De toegevoegde waarde van FM. Begrippen, prioriteiten en maatregelen in de zorgsector, FMN, Naarden. Raad voor Volksgezondheid en zorg (2006). Management van vastgoed in de zorgsector. publicaton number 06/02, Zoetermeer, RVZ. Rahmqvist, M. (2001) "Patient satisfaction in relation to age, health status and other background factors: A model for comparisons of care units", International Journal for Quality in Health Care, 13, 385–390. Reuland, R., Choudry, J., & Fagel, A. (1985) "Research in the field of hospitality", International Journal of Hospitality Management, 4, 4, 141-146 Rotscheid, R. & Diepstraten, P. (2007) "Zorgvastgoed in de toekomst", Vastgoed Fiscaal en Civiel, 12, 13-16. Schäfer, W., Kroneman, M., Boerma, W., Van den Berg, M., Westert, G., Devillé, W. & Van Ginneken, E. (2010) "The Netherlands: Health system review" Health Systems in Transition, 12, 1, 1–229 Severt, D. Aiello, T., Elswick, S. & Cyr, C. (2008) "Hospitality in hospitals?" International Journal of Contemporary Hospitality Management, 20, 6, 664-678. Telfer, E. (1996) Food for Thought, Philosophy of Food. Routledge, London.

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SECTION FIVE: MANAGING INFRASTRUCTURE AND SPACE Introduction Managing infrastructure and space Antje Junghans Norwegian University of Science and Technology (NTNU), Trondheim, Norway

Papers Selection of Key Performance Indicators for Engineering Facilities in Commercial Buildings: A Focus Group Study in Hong Kong Chun Sing Man and Hung Kit Joseph Lai. Maintenance Expenditures of Technical Building Facilities in the Public Sector Jens Helge Bossmann, Carolin Bahr and Kunibert Lennerts. Evidence-Based Design in Learning Environments: A practical framework for project briefing Matti Sivunen, Jere Viljanen, Suvi Nenonen and Juho-Kusti Kajander.

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Introduction MANAGING INFRASTRUCTURE AND SPACE Prof. Dr.-Ing. Antje Junghans Norwegian University of Science and Technology (NTNU), Trondheim, Norway Introduction The management of infrastructure and space is a classic scope of tasks in the facilities management (FM) discipline. Over the past twenty years the perspective has become more strategic. In the 1990s FM researchers studied mainly the efficiency of operation- and maintenance processes, the optimisation of work space, and the improvement of cost- and resource efficiency. Current research considers also qualitative requirements of space development for organisational needs and changing user demands. The efficient operation and maintenance of buildings and technical systems has a long tradition within disciplines like architecture and engineering. FM research is in general more interdisciplinary with the intention to support and improve the primary activities of organisations. Qualitative aspects as well as a live-cycle perspective of facilities and services are becoming increasingly important in addition to the development of cost- and resource efficient solutions. Man and Lai have an academic background in building services engineering. They present a systematic approach for the identification of Key performance indicators (KPI). Major performance aspects of engineering facilities were studied and evaluated in five categories: physical; financial; task and equipment related; environmental; and health, safety and legal. The objective of the conducted focus group studies with FM professionals was to identify the most relevant KPIs and to develop a holistic assessment scheme for performance assessment in operation and maintenance. The research was conducted with focus on engineering facilities of commercial buildings in Hong Kong. In the research focus of the second paper by Bossmann, Bahr and Lennerts are maintenance efforts of public buildings in Germany. The authors consider the public facilities managers as being permanently requested to reduce maintenance costs but still having to guarantee the functional capability of public buildings at all times. The presented research is based on statistical analyses of building- and maintenance-cost- data with focus on the technical infrastructures and building services systems. The objective of the paper is to contribute to the development of a new calculation method. This method shall be used for the calculation of maintenance cost and help to plan and control the needed budgets. FM includes all life-cycle phases of buildings like planning, design, construction, use and operation. The early design stage of school buildings is in the focus of the third paper by Sivunen et al. The authors intend to implement evidence based design (EBD) as contribution to briefing methods for the development of school buildings. They develop an EBD matrix which shall help building owners to improve the quality of schools as learning environments. The Finnish researchers have studied the relationships between design strategies and outcomes. Background for this study was literature research and the conduction of a workshop. Finally a conception for a model is proposed.

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Selection of Key Performance Indicators for Engineering Facilities in Commercial Buildings: A Focus Group Study in Hong Kong Chun Sing Man Department of Building Services Engineering The Hong Kong Polytechnic University [email protected] 852 3400 3610 Joseph Hung Kit Lai Department of Building Services Engineering The Hong Kong Polytechnic University [email protected] ABSTRACT Effective use of performance evaluation enables facilities managers to monitor the quality of facilities management works, identify areas of deficiencies, and communicate the business value of their actions to their organizations. Existing performance assessment schemes in the building sector in Hong Kong, however, are mainly focused on one or some of the physical, technical and environmental performance aspects of buildings. In order to develop a holistic evaluation scheme that covers the essential performance aspects of engineering facilities in commercial buildings, a study comprising multiple stages of research work has been commenced. The primary purpose of this paper is to report the findings of a focus group study, which aimed to identify key performance indicators (KPIs) that are critical to assessing the major performance aspects of engineering facilities in commercial buildings: physical; financial; task and equipment related; environmental; and health, safety and legal. Through the interactive discussion and exchange of opinions among the focus group participants, the major factors affecting their selection of KPIs were revealed. The common practice of facilities operation and maintenance, which influenced their views on which among the KPIs should be shortlisted, was identified. The further works needed to cream off the most useful KPIs and find out their importance weights were also suggested.

Keywords Commercial buildings, engineering facilities, focus group, Hong Kong, key performance indicators. 1 INTRODUCTION It is famous that commercial buildings in Hong Kong have high sale and rental values. A substantial amount of input resources is required to ensure proper operation, maintenance and management of the engineering facilities in commercial buildings in order to support the core activities. Therefore, it is necessary to assess the performance of the facilities in order to show whether, and to what extent the resources are used effectively. It is well recognized that facilities performance assessment enables monitoring the output quality of works, highlight opportunities for improvement, detect problems, and derive corresponding solutions (Horenbeek and Pintelon, 2014). Without appropriate performance assessments,

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undetected underperformance of the facilities would adversely affect the commercial operations of the buildings and even lead to enormous financial losses, negative impacts on the environment, or health and safety threats to the building end users. Although there have been some studies and assessment schemes pinpointing at some performance aspects (e.g. energy, environmental) of engineering facilities in existing commercial buildings, a holistic scheme that can measure the performance of the facilities over a wide range of operation and maintenance (O&M) facets is yet to be available. A significant volume of literature, which covers a variety of KPIs for reflecting different performance aspects of engineering facilities, has been published. Synthesizing a consolidated list of KPIs from such publications is not only extensive, but would also include performance metrics that are redundant. Furthermore, it is practically unfeasible to monitor or measure all of the available indicators (Horenbeek and Pintelon, 2014; Kumar, 2006). As such, there is a need to categorize the indicators to avoid redundancy and to facilitate selection of KPIs based on the perspective of relevant stakeholders. This paper reports on a focus group study, which aimed to identify KPIs that are critical to assessing five major performance aspects of engineering facilities in commercial buildings in Hong Kong. Covered in the following include the major factors affecting the selection of the KPIs, and a discussion on the common practice of facilities operation and maintenance that influenced the focus group participants in shortlisting the relatively more important KPIs. Finally, suggestions are given for the further works needed for completing the establishment of the holistic performance scheme. 2 PERFORMANCE INDICATORS IDENTIFIED At the initial phase of the study, a desktop review of the relevant literature had been conducted (Man et al., 2013). Among the findings of that review, 71 performance indicators that are relevant to measuring the performance of engineering facilities had been identified. In order to enable effective management and reporting of performance, systemic categorization of performance indicators is necessary. Having considered the classifications of KPIs of various sources (British Standards Institution, 2007; Gilleard and Wong, 2004; Lavy et al., 2010; Muchiri et al., 2011; Parida and Chattopadhyay, 2007; Shohet, 2006), a consolidated classification was adopted. In the current study, the performance indicators were classified into five categories according to their functionalities and interpretations, namely physical (P), financial (F), task and equipment related (T), environmental (E), and health, safety and legal (H) (see Figure i). A summary of these indicators is shown in the appendix. The group of physical indicators represents the physical quality of services delivered by the engineering facilities. While reflecting the feelings or perceptions of end-users, the quality of the services impacts on the customers’ satisfaction. Financial indicators are those indicators related to costs and expenditures associated with O&M works for the facilities. Task and equipment related indicators are those indicators that can reflect how well the equipment are operated and maintained, and whether O&M tasks are effectively managed and implemented. Environmental indicators measure the impact of the facilities’ operations on the environment. Health, safety and legal indicators reflect how well the facility management (FM) team has done in safeguarding the health and safety of the building occupants as well as its performance in avoiding legal costs arising from any malpractices of facilities operation and maintenance.

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Figure i F Five categoriies of KPIs.

3 F FOCUS GR ROUP DISCUSSION After thhe literature review, a ffocus group meeting waas convenedd, with an aaim of shorttlisting the importaant and usefful KPIs am mong the 71 indicators. Participatedd in the meeeting was a group of highly experienced e FM professsionals in Hong H Kong. At the bbeginning off the meetinng, the convvenor explainned to the pparticipants the definitioon of each of the iindicators. Then the pparticipants were requeested to ratte the impoortance leveel of each indicatoor using a fiive-point sccale: from “1” (very low w) to “5” (vvery high), and vote onn whether the indicators shouuld be incorpporated intoo the assesssment schem me. Indicatoors supporteed by over half of the t professiionals were shortlisted. Moreover, the importance levels of the indiccators and were analyzzed in the seelection proocess. their feaasibility in rreal-world applications a The parrticipants weere further ffacilitated too discuss the usefulnesss of the indicators and they were asked too share theiir experiencces in usingg the indicaators includding, for exaample, any problems with reccording or rretrieval of the data reequired for figuring ouut the indicaators. They were also free to bbrainstorm aand suggestt any other iindicators thhat were nott covered inn the list of indicators providedd. F FINDINGS S AND DISCUSSION 4 4.1 B Backgroun nd of the foccus group participants p s Seven FM F professiionals in Hong Kong participated p d in the focuus group meeting. m Fivve of them were working for some privaate companiies and twoo were workking for noon-governmeent public was manageement of enngineering ffacilities in buildings. organizaations. Theiir principal job nature w Two of them were directors off engineerinng, and the rrest were: one o chief enggineer, two managers and twoo assistant m managers. Inn commerciaal buildings of Hong Koong, managgement of enngineering facilities is typicallly a major F FM functionn. FM profeessionals oftten need to take care of a mix of hard andd soft FM isssues. The work w experiience of the focus groupp participannts ranged beetween 14 and 31 years, and the types of commerciial premisess they had m managed inncluded: offi fice, retail, hotel annd restaurantt. 4.2 S Shortlisted d KPIs On top of the 71 listed perfoormance inddicators, thrree additionnal perform mance indicaators were suggesteed by the fo focus group participants, namely ratio r of totaal O&M cosst to buildinng income (F0), avvailability off fire servicces system (T28a), ( and availabilityy of lift (T28b). Througgh a series of discuussions and exchanges of opinionss among thee participantts, 17 out off all the 74 indicators were shhortlisted forr use under the scheme. A summarry of the shoortlisted inddicators wass shown in merely basedd on their im mportance Table 1. The decisiions of shorrtlisting thesse indicatorss were not m 143


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levels, but also the feasibility and usefulness of the indicators in actual applications. Table 1 also shows the main reasons raised by the focus group for shortlisting the indicators. In terms of quantity, the majority of the 17 KPIs were dominated by task and equipment related indicators. Table 1 Main reasons raised by the focus group for shortlisting the indicators Performance indicators (P1)

Thermal comfort

(P4)

Indoor air quality

(P5)

Percentage users dissatisfied

(F0)

Ratio of total O&M cost to building income

(F4)

Actual costs within budgeted costs

(F13)

O&M cost per building area

(T1) (T12)

Work request response rate Number of completed work orders per staff

(T13)

Area maintained per maintenance staff

(T18)

Backlog size

(T25)

Failure frequency or breakdown frequency

(T28a)

Availability of fire services system

(T28b)

Availability of lift

(E1)

Energy use index (EUI)

(E3)

Greenhouse gas emission per building area

(H1)

Number of accidents per year

(H6)

Number of lost work days per year

Reasons It is important to maintain an environment with suitable thermal comfort may affect the working efficiency of employees in offices, or the number of customers. It is important in regard to the health and safety concern of the employees. It is a trend to apply for certification on the building indoor air quality in local certification scheme. It is useful for marketing. It is important to investigate the perceptions of the end users about the services that they perceive in order to find out areas of insufficient. It is useful to evaluate the effectiveness of the resources input and to estimate the O&M budget. It would be more meaningful to focus on the total O&M cost instead of the cost of particular item. It is useful to evaluate the effectiveness of managing the expenditure within budget, i.e. not over-spend or under-spend. Leaving the planned works undone is technically and financially unhealthy. It is important to investigate the amount of money spent on O&M for O&M budget estimation, expenditure monitoring and financing. It is useful to evaluate the effectiveness of the FM team in controlling or minimizing the cost. Normalization by the building area can facilitate comparisons and benchmarking among peer buildings. It is important to have short response time to work requests in regard to the service quality. It is useful to investigate the efficiency of the staff, with different trades of O&M works identified and categorized. It is useful for the FM team to investigate if the manpower is sufficient to carry out daily O&M works. It would be a useful reference for the team to request for more resources in case the manpower is found insufficient. It is useful to investigate the efficiency of the FM team as leaving the planned works undone is technically and financially unhealthy. It is usually a useful indication of the quality of O&M services delivered by the O&M staff or an indication of the end-of-life of the equipment which may need replacement. It is important in regard to the safety concern of building end users. Instead of using the generic availability indicator (T28), adoption of T28a which represent the performance of a relatively more critical facility is more specific and useful. It is important in regard to the safety concern of building end users. Instead of using the generic availability indicator (T28), adoption of T28b which represent the performance of a relatively more critical facility is more specific and useful. This is probably due to the fact that energy use, especially electricity consumption, is a substantial cost burden in operating engineering facilities of commercial buildings. In fact, about 60% of the total electricity in Hong Kong was used in the commercial sector and the amount of such consumption has been increasing continuously (Electrical and Mechanical Services Department, 2012). Therefore, using this indicator can help identify measures for curbing the use of electricity in commercial buildings. As for environmental sustainability, greenhouse gas emission per building area is important and carbon audit has in recent years become a hot topic in the building industry. In 2012, the Hong Kong government has enacted the Building Energy Efficiency Ordinance (Cap. 610) to stipulate the mandatory conduction of energy audits for commercial buildings, which is a significant step after the launch of the Buildings Energy Efficiency Funding Schemes in 2009 to subsidize building owners to conduct energy-cum-carbon audits and energy improvement projects (Environment and Conservation Fund, 2012). It is important in regard to the health and safety concern of the employees. It is useful to help identifying any problem or insufficient in the services delivery process. It is important in regard to the health and safety concern of the employees. It is useful to investigate the efficiency of the FM team and the consequences of accidents, incidents or illness.

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4.3 Major factors affecting the selection of KPIs At the focus group meeting, besides shortlisting the important and useful indicators, the FM professionals were asked to provide the reasons for those they judged as not forming an essential element of the assessment scheme. There were various factors affecting the professionals in making such judgment, for examples, the unavailability of record data that are necessary for working out the relevant indicators; the time constraint of the professionals themselves; the difficulties in working out the indicators; the high consultant cost or internal staff cost needed for working out the indicators; and the comparatively low importance levels of the indicators. To some extent, these factors are related to one another. For instance, the amount of time or cost required for working out a performance indicator may be dependent on how difficult it is to work out the indicator. In order to provide a picture of the interactive effects of such factors, an attempt was made to group the indicators with respect to the reasons for excluding them from the assessment scheme. Figure ii depicts a mapping between the 57 indicators that should be excluded and the reasons for excluding them. The three most common reasons were: 1) it is too time consuming to work out the indicators; 2) it is too costly to work out the indicators; and 3) the indicators are covered or should better be represented by other indicators. For some indicators, their exclusion from the scheme was due to more than one of the aforesaid reasons, as shown by the overlapping regions in Figure ii. For example, excluding P2 (visual comfort) was because it would be too time consuming and too costly to work it out. E2 (energy consumption per person) was excluded because it would be too time consuming and too costly to work it out, and it is covered or should better be represented by other indicators. Among the excluded indicators, the predominant, common reason for their exclusion from the scheme was the substantial amount of time required to collect the necessary data for figuring out their values.

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Figgure ii Reasonns for excludding the indiccators

T Too time consu uming to work out the indicators • P3, F8, F14, T33, T4, T6, T7, T8, T T9, T10, T11, T19,, T20, T21, T222, T24, T30, E6, H2, H H3, H4, H5



P2, T23, T26, T27





Too ccostly to work out o the indicaators



F12 [F0], E2 [E1]

F5 [F0, F4], F6 [F4]

Other reeasons  F7, F15 5, F18, F19, F20, F221, F22, T2, T15, T16, T29, H7

T144 [T12], T177 [T18], T5 [T3]**

Covvered or betterr reprresented by oth her indiicators* • P66 [P5], F1 [F0], F F2 [F0], F3 [F00], F9 [F0], F100 [F0], F11 [F00], F16 [E1], F117 [E1, E2], T228 [T28a, T28b]], E4 [E1], E55 [E3]

*

Examples of substitute indiicators are shown in the brackets *** T5 has the ssame meaning as a T3, but their results are expressed e in diff fferent units

more, it wass found thatt a number oof performannce indicatoors were exccluded not bbecause of Furtherm the abovve three most common reasons, buut some otheer reasons ass shown in T Table 2. As repoorted earlier in a separatte paper (M Man and Lai,, 2013), an iinvestigationn had been made into the leveels of imporrtance of alll the 74 perrformance iindicators. It I was also noted that nnot all the indicatoors which w were rated aas importantt were shorrtlisted. Am mong the 577 indicators that have been excluded, the importancee levels of alll except thee visual com mfort indicattor (P2) werre rated as below 4 (out of a maximum rating of 5). 5 Although visual coomfort was consideredd as rather importaant, it was eexcluded froom the scheeme becausee the focus group partiicipants connsidered it difficultt to conducct the necesssary field measuremen m nts and calculations foor this indiccator, e.g. identificcation of glaare at differeent times inn various buiilding areass. Accordingg to the opinnion of the participaants, the reesources neeeded for uundertakingg such meaasurements and calculations far outweiggh the beneffit obtainable from takinng the indicator as part of the assesssment scheeme. Tabble 2 Perform mance indicattors excludedd for reasons other than thhe three mostt common reeasons

Perforrmance indiicators (F7)

Equipmennt replacemeent value (ER RV)

(F15) Cost of eqquipment added or replaaced (F18) Total safetty and securrity expendiiture

Reaasons Thee number off equipment needs to bee covered is tooo many. Thee usefulnesss for perfo formance evvaluation andd comparisoon is doubtful as theere is no dennominator aand the reason for adddition or repllacement is unknown. Thee usefulnesss for perfo formance evvaluation

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(F19) Security expenditure per building area (F20) Security expenditure per person

(F21) Building income per building area

(F22) Total rentable value of the building

(T2)

Scheduling intensity

(T15) Schedule realization rate (T16) Schedule compliance (T29) Efficiency of facilities (H7)

Number of incidents of specific diseases in building per year (e.g. legionnaire’s disease)

EFMC 2014 and comparison is doubtful as there is no denominator. It would be niggling to consider this expenditure as the amount would be relatively small. It would be niggling to consider the security expenditure as the amount would be relatively small. It would be niggling to consider the security expenditure as the amount would be relatively small. Unlike the leasing managers, FM professionals who focus on engineering matters are relatively less concerned about the amount of building income but would care more about the money allowed for O&M of engineering facilities. Unlike the leasing managers, FM professionals who focus on engineering matters are relatively less concerned about the rentable value of the building but would care more about the money allowed for O&M of engineering facilities. The workload of technical staff in Hong Kong is usually measured based on the number of work orders instead of man hours; and the technical staff are usually fully scheduled such that the scheduling intensity would normally be not less than 100% (i.e. fully loaded or involving over-time work). It is too detailed and not normally applicable in FM. It is too detailed and not normally applicable in FM. The number of equipment needs to be covered is too many. It is rare to have those diseases.

4.4 Observations about the O&M practice in Hong Kong During the focus group discussion, some specific observations about the O&M practice in Hong Kong were noted. First, the pace of O&M work in Hong Kong is remarkably fast. It was found from the literature that the work request response rate (T1), for example, could be derived by dividing the work requests remaining in “request” status for less than 5 days by total work requests (Muchiri et al., 2011). The focus group participants opined that a 5-day tolerance is too

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long to be acceptable in the practice of Hong Kong. Usually, the allowable response time is “immediate”. Second, as far as time is concerned, the workload of technical staff in Hong Kong are usually measured based on number of work orders instead of man hours. In this connection, related indicators include manpower utilization rate (T3), manpower efficiency (T4), manpower utilization index (T5), preventive maintenance ratio (T6), percentage of corrective (reactive) work (T7), percentage of preventive (proactive) work (T8), percentage of condition based maintenance work (T9), percentage of improvement work (T10), and number of man hours per capacity of installation (T11). These indicators necessitate measurements to be made based on man hours. This practice, according to the FM professionals, is not common in Hong Kong. They further pointed out that it is too time consuming to report and record the commencement and completion times of each and every work order, which are among the data needed for working out the respective indicators. Again, they wondered whether the cost for having such indicators established could be justified by the benefit they could bring along. Third, for indicators such as mean time between failures (T26) and mean time to repair (T27), even more detailed reporting and recording of the progress of O&M work orders is required in order to find out their performance levels. Although computerized maintenance management system (CMMS) could be used to keep track of the O&M activities (Lai and Yik, 2012), enormous amounts of investment are needed not only for adopting such a system in the first place but also for its on-going use and maintenance. Therefore, the use of CMMS in commercial buildings in Hong Kong is often confined to some high-end, relatively new buildings whose owner and management team put a great weight on the usefulness of CMMS. In most of the other existing commercial buildings, manual logging of maintenance data remains as a common practice. 5 CONCLUSION Aimed at identifying KPIs for incorporation into an assessment scheme that can enable holistic performance evaluation of engineering facilities in commercial buildings in Hong Kong, a focus group study was conducted. Through the in-depth discussions among a group of FM professionals, 17 important and useful KPIs were shortlisted. Besides the levels of importance of the indicators, availability of record data, time constraint, resources needed and difficulties in working out the indicators are the key factors that affected the FM professionals in shortlisting the KPIs. The predominant, common reason for excluding the indicators was the considerable time required to collect the data needed for working out the indicators. The particularly fast pace of O&M work in Hong Kong was observed from the focus group discussion. Although time is of paramount importance in carrying out O&M work, it has not been a common practice to computerize the recording and analysis of time spent on the work. Without such computerized data, it is hard to figure out the time-related work performance indicators. In the subsequent stage of work, a large-scale questionnaire survey will be conducted to further cream off the most useful KPIs. A series of face-to-face interviews will also be pursued to find out the importance weights of the KPIs, e.g. based on an analytic network process (Saaty, 2005). Upon completion of these works, the intended holistic performance assessment scheme will be established and further work will be carried out to verify its applicability in practice.

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ACKNOWLEDGMENT The authors would like to thank the professionals who dedicated their precious time and effort in participating in the focus group meeting. REFERENCES British Standard Institution (BSI) (2007), Maintenance: Maintenance key performance indicators (BS EN 15341), BSI, London, England. Building Services Research and Information Association (BSRIA) (2011), KPIs for M&E contractors – 2010 results, (available online http://www.bsria.co.uk/news/me-kpis-2010 [accessed on 25/11/2011]). Campbell, J.D. (1995), Uptime: Strategies for Excellence in Maintenance Management, Productivity Press, New York. Chan, K.T., Lee, R.H.K. and Burnett, J. (2001), "Maintenance performance: a case study of hospitality engineering systems", Facilities, 19, 13/14, 494-504. Electrical and Mechanical Services Department (EMSD) (2007), Guidelines on Energy Audit, EMSD, Hong Kong Special Administrative Region. Electrical and Mechanical Services Department (EMSD) (2012), Hong Kong energy end-use data 2012, EMSD, Hong Kong Special Administrative Region. Electrical and Mechanical Services Department (EMSD) and Environmental Protection Department (EPD) (2010), Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purposes) in Hong Kong, EMSD and EPD, Hong Kong Special Administrative Region. Environment and Conservation Fund (2012), Buildings Energy Efficiency Funding Schemes. Environment and Conservation Fund, (available online http://www.building-energyfunds.gov.hk/en/news/index.html [accessed on 29/3/2013]). Gilleard, J.D. and Wong, P.Y.L. (2004), "Benchmarking facilities management: applyijng analytic hierarchy process", Facilities, 22, 1, 19-25. Hinks, J. and McNay, P. (1999), "The creation of a management-by-variance tool for facilities management performance assessment", Facilities, 17, 1/2, 31-53. Ho, D.C.W., Chan, E.H.W., Wong, N.Y. and Chan, M.W. (2000), "Significant metrics for facilities management benchmarking in the Asia Pacific region", Facilities, 18, 13, 545-556. Hong Kong Quality Assurance Agency (HKQAA) (2012), HKQAA Sustainable Building Index Report Template and Metrics Handbook, HKQAA, Hong Kong. Horenbeek, A.V. and Pintelon, L. (2014), "Development of a maintenance performance measurement framework – using the analytic network process (ANP) for maintenance performance indicator selection", Omega, 42, 33-46. Kumar, U. (2006), "Development and implementation of maintenance performance measurement system: issues and challenges", Mathew, J., Kennedy, J., Ma, L., Tan, D. and Anderson, D. Engineering and management, Springer, London, 738-743. Lai, J.H.K. (2010), "Operation and maintenance budgeting for commercial buildings in Hong Kong", Construction Management and Economics, 28, April, 242-265. Lai, J.H.K. and Yik, F.W.H. (2006), "Developing performance indicators for benchmarking building services operation and maintenance for commercial buildings", Proceedings of CIBW70 Trondheim International Symposium: Changing User Demands on Buildings, 12-14 June, 283294.

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Lai, J.H.K. and Yik, F.W.H. (2012), "A probe into the facilities maintenance data of a hotel", Building Services Engineering Research and Technology, 33, 2, 141-157. Lavy, S., Garcia, J.A. and Dixit, M.K. (2010), "Establishment of KPIs for facilities performance measurement: review of literature", Facilities, 18, 9/10, 440-464. Leung, M.Y., Lu, X., Ip, H.Y. (2005), "Investigating key components of the facility management of secondary schools in Hong Kong", Facilities, 23, 5, 226-238. Lutzkendorf, T. and Lorenz, D.P. (2006), "Using an integrated performance approach in building assessment tools", Building Research & Information, 34, 4, 334-356. Muchiri, P., Pintelon, L., Gelders, L. and Martin, H. (2011), “Development of maintenance function performance measurement framework and indicators”, International Journal of Production Economics, 131, 1, 295-302. Man, C.S. and Lai, J.H.K. (2013), "Identifying key performance indicators for engineering facilities in commercial buildings - a focus group study in Hong Kong", Proceedings of the 8th World Congress on Engineering Asset Management & 3th International Conference on Utility Management & Safety, Hong Kong, 20 October - 1 November 2013, Springer (in press). Man, C.S., Lai, J.H.K. and Yik, F.W.H. (2013), "Developing a research framework for studying performance evaluation of engineering facilities in commercial buildings in Hong Kong", Proceedings of the 19th International CIB World Building Congress, Brisbane, 5-9 May 2013. Muchiri, P., Pintelon, L., Gelders, L. and Martin, H. (2011), "Development of maintenance function performance measurement framework and indicators", International Journal of Production Economics, 131, 1, 295-302. Parida, A. and Chattopadhyay, G. (2007), "Methodology and Theory – Development of a multicriteria hierarchical framework for maintenance measurement (MPM)", Journal of Quality in Maintenance, 13, 3, 241-258. Saaty, T.L. (2005), Theory and Applications of the Analytic Network Process: decision making with benefits, opportunities, costs, and risk, RWS Publications, Pittsburgh. Shohet, I.M. (2006), "Key performance indicators for strategic healthcare facilities maintenance", Journal of Construction Engineering and Management, 132, 4, 345-352. Tsang, A.H.C., Jardine, A.K.S. and Kolodny, H. (1999), "Measuring maintenance performance: a holistic approach", International Journal of Operations & Production Management, 19, 7, 691715. Vesela, V. and Michael, E. (2001), "Indicators of sustainable production: framework and methodology", Journal of Cleaner Production, 9, 519-549.

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APPENDIX (Source: British Standards Institution, 2007; Building Services Research and Information Association, 2011; Campbell, 1995; Chan et al., 2001; Electrical and Mechanical Services Department, 2007; Electrical and Mechanical Services Department and Environmental Protection Department, 2010; Hinks and McNay, 1999; Ho et al., 2000; Hong Kong Quality Assurance Agency, 2012; Lai and Yik, 2006; Lavy et al., 2010; Leung et al., 2005; Lukzkendorf and Lorenz, 2006; Muchiri et al., 2011; Parida and Chattopadhyay, 2007; Tsang et al., 1999; Vesela and Michael, 2001) Work request response rate

(E3)

(T2)

Scheduling intensity

(E4)

Conduction of energy audit

(T3)

Manpower utilization rate

(E5)

Conduction of carbon audit

Visual comfort (e.g. illuminance and glare)

(T4)

Manpower efficiency

(E6)

Conduction of environmental assessment

(P3)

Acoustic comfort (e.g. reverberation)

(T5)

Manpower utilization index

(e.g. LEED, BREEAM, BEAM Plus,

(P4)

Indoor air quality (e.g. total volatile organic

(T6)

Preventive maintenance ratio (PMR)

HKQAA SBI)

compound, CO2 level, concentration of

(T7)

Percentage of corrective (reactive) work

radon)

(T8)

Percentage of preventive (proactive) work

Health, safety and legal

(P5)

Percentage users dissatisfied

(T9)

Percentage of condition based maintenance

(H1)

Number of accidents per year

(P6)

Number of users’ complaints per year

work

Physical (impact on customer satisfaction)

(T1)

(P1)

Thermal comfort (e.g. temperature, mean radiant temperature, humidity and air speed)

(P2)

Financial

(H2)

Number of legal cases per year

(T10) Percentage of improvement work

(H3)

Number of compensation cases per year

(T11) Number of manhours per capacity of

(H4)

Amount of compensation paid per year

(F0)

Ratio of total O&M cost to building income

(F1)

Percentage of personnel cost

(T12) Number of completed work orders per staff

(F2)

Percentage of subcontractor cost

(T13) Area maintained per maintenance staff

(F3)

Percentage of contractor cost

(T14) Quality of scheduling

(F4)

installation

Actual costs within budgeted costs

(T15) Schedule realization rate

[excluding the extra expenditure for urgent

(T16) Schedule compliance

or emergency works]

(T17) Work order turnover

(F5)

Direct maintenance cost

(T18) Backlog size

(F6)

Breakdown severity [i.e. corrective

(T19) Urgent repair request index (URI)

maintenance cost / preventive maintenance

(T20) Corrective maintenance time

cost]

(T21) Preventive maintenance time

Equipment replacement value (ERV)

(T22) Response time for maintenance

(F8)

Maintenance stock turnover

(T23) Percentage compliance with required

(F9)

Percentage of maintenance material cost

(F7)

(F10) Percentage of corrective maintenance cost

(H5)

Number of health and safety complaints per year

(H6)

Number of lost work days per year (i.e. sick leave day(s) given by doctor)

(H7)

Number of incidents of specific diseases in building per year (e.g. legionnaire’s disease)

response time (T24) Number of maintenance induced

(F11) Percentage of preventive maintenance cost (F12) Percentage of condition based maintenance

Greenhouse gas emission per building area

interruptions (T25) Failure/breakdown frequency (number of

cost

equipment faults per month or per year)

(F13) O&M cost per building area

(T26) Mean time between failures (MTBF)

(F14) O&M cost per capacity of installation

(T27) Mean time to repair (MTTR)

(F15) Cost of equipment added or replaced

(T28) Availability

(F16) Energy expenditure per building area

(T28a) Availability of fire services system

(F17) Energy expenditure per person

(T28b) Availability of lift

(F18) Total safety and security expenditure

(T29) Efficiency of facilities

(F19) Security expenditure per building area

(T30) Gross floor area under safety and security

(F20) Security expenditure per person

patrol

(F21) Building income per building area (F22) Total rentable value of the building

Task and equipment related

Environmental (E1)

Energy use index (EUI)

(E2)

Energy consumption per person

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Maintenance Expenditures of Technical Building Facilities in the Public Sector Dipl.-Ing. M. Eng. Jens-Helge Bossmann Karlsruhe Institute of Technology (KIT) [email protected] +49 721 608-46008 Prof. Dr.-Ing. Carolin Bahr Karlsruhe University of Applied Science (HsKa) Prof. Dr.-Ing. Kunibert Lennerts Karlsruhe Institute of Technology (KIT) ABSTRACT In times of increasing demands on the overall economic performance, building maintenance has become one of the main topics in the focus of public cost-reducing politics. In consequence public facility managers are permanently requested to reduce maintenance costs but still have to guarantee the functional capability of their buildings at all times. Yet to determine adequate and sustainable maintenance budgets and to defend the necessary investments against the pressure of cost reduction, there is an urgent need of a transparent and scientifically accepted calculation method. Therefore the Karlsruhe Institute of Technology (KIT), the Karlsruhe University of Applied Science (HsKA) and the German working group for machine and electrical technology in state and municipal organizations (AMEV) initiated a quantitative research project based on empirical data of 140 buildings of 21 public institutions with the final goal to develop a significantly improved budgeting tool. To do so especially highly specific information on the maintenance-relevant expenditures (building cost groups 410 to 490 – 2nd level pursuant to DIN 276) for maintenance, inspection, servicing and repair & overhaul work over previous years was documented and implemented in a newly developed database. Derived from the generated input of almost 10,000 data sets, numerous correlation and cluster analysis were conducted to identify influences on the maintenance of technical building facilities and interdependencies between maintenance expenditures and other building-specific attributes. As a result of the extensive database analysis the new improved AMEV calculation method was finally developed.

Keywords Maintenance Costs, Budgeting, Public Sector, Technical Building Facilities. 1 INTRODUCTION In the year 2010 the Central Association of the Building Industry in Germany evaluated the overall national demand for investments in building maintenance at approximately 98 Billion Euros (ZDB, 2010). This figure impressively displays the immense economic relevance of building maintenance in Germany and is based on the fact that about 20-30% of the overall operation costs of a building are linked to maintenance measures (Krimmling et al., 2002). Consequently the public sector, as one of the biggest real estate owners in Germany, has to make huge amounts of money available every year, to be able to guarantee the long-term operation of its buildings and its technical facilities. Yet in times of increasing economic pressure, due to the

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financial crisis and the advancing globalization, maintenance budgets regularly turn out to be the first to be cut. The maintenance public experts in charge often appear to be rather helpless in the face of aggressive public cost-reducing politics. Due to missing scientifically accepted calculation methods (and therefore missing arguments) combined with a general administrative misjudgment considering the importance of maintenance measures, the budgets are lately constantly decreasing, while the maintenance backlog is rising in the public sector. In order to fight this process the Karlsruhe Institute of Technology (KIT), the Karlsruhe University of Applied Science (HsKA) and the German working group for machine and electrical technology in state and municipal organizations (AMEV) initiated a quantitative research project to prove the tremendous impact of building maintenance and especially the maintenance of technical building facilities on public assets. The project goal was to identify relevant influences and interdependencies between maintenance expenditures and other building-specific attributes (Bossmann & Bahr, 2013). Based on the resulting findings the further target was to develop a new AMEV calculation method which might successfully budget maintenance expenditures of technical building facilities in Germany. Additional to that the development of a scientifically accepted calculation method also significantly strengthens the position of the maintenance experts in future budget negotiations. This is of great importance since a permanent lack of maintenance measures, due to exaggerated cost reduction, inevitably leads to defects in the technical building facilities and furthermore might evoke secondary damages that often add up to multiple costs of the original damage (Roetzel, 2001). 2 METHODOLOGY The scientific study is based on quantitative research methods, especially the analysis of empirical maintenance data of an asset of 140 buildings owned by public institutions. The corresponding data was contributed by 14 universities, 5 cities and 2 federal institutions. The newly generated input was manually integrated into an Access data base. Although the manual integration of each single dataset in the data base is a rather time-consuming procedure, it allows a first and very effective plausibility check to identify obvious data errors. Following the rough plausibility checks further statistical tests like scatter plots, box-plots and additional checks on completeness in terms of an extensive data mining were conducted to secure the best data validity and reliability possible. Derived from the total of almost 10,000 maintenance costs related entries, numerous correlation and cluster analysis were conducted hereafter to identify the relevant influences and interdependencies on the average maintenance expenditures of technical building equipment.

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D DEFINITIO ONS 3 All maiintenance reelated termss used in thhe study aree based on the definitions publishhed by the Germann Standard D DIN 31051 2012-09 - “Fundamentals of maaintenance” (DIN 310551, 2012), coveringg “service””, “inspectiion”, “repair & overhhaul” and “improvem ment” measuures. The presenteed results cooncentrate eexclusively on o the “reguular maintennance costs”” including “service”, “inspecttion” as weell as “repaiir & overhaaul”. “Improovement meeasures” aree explicitly excluded. This is related to thhe fact that the regularr maintenannce expendittures are usually allocaated in the adminisstrative budgget, while the t extraorddinary mainttenance exppenditures aare part of tthe capital budgetaaccording too the public aadministratiion system in i Germanyy.

Figgure 1: Definnition of mainntenance according to DIN N 31051:20112-09

R RESULTS 4 Based oon a precediing literaturre research (BKI, 20111; Bahr, 20008; Hellerfoorth, 2006; Schulte S & Kalaitziis, 1988), thhe followingg potential key k influenciing factors w were movedd into the foocus of the plannedd cluster andd correlationn analysis (B Bossmann & Bahr, 20133). 1. 2. 3. 4. 5. 6.

The age of tthe technicaal building ffacility T T size of the technicaal building ffacility The T use of tthe buildingg The T height of The o the buildiing T standarrd of the techhnical buildding facility The T operatioon time techhnical buildding facility The

A proccedure, thee maintenannce budgett is determ mined based on the In the existing AMEV ment valuess of the techhnical facillities as welll as an annnual cost faactor represeenting the replacem average annual cosst value prooportional too the replaccement valuue. Consequuentially alm most all of the folloowing figures display thhe maintenaance expendditures as avverage annuual costs in rrelation to the repllacement vaalue of the ttechnical faacilities. To exemplify the chosenn approach tto analyze the dataa base input the outcom me of the agee and operaation relatedd investigations will be presented in the foollowing chaapters.

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A of the ttechnical building facility Age 4.1 In the coourse of thee literature rreview numeerous publiccations weree identified that point oout the age of the bbuilding to be one off the most important influencingg factors regarding maaintenance expendiitures (Ham mpe, 1986; K König & Schhnoor, 19888; Bahr, 2010).Thereforre further innformation regardinng the age of o the technical facilitiess was gathered additionnally to the ccorrespondiing annual maintennance costs.. To do soo the coopeerating publlic institutions were aasked to prrovide the individuual age of the techniccal installattions of eaach cost groups accorrding to thee German Standardd 276 (DIN N 276, 2008)). Since all oof the analyyzed building have beenn owned andd operated by publlic institutioons ever sinnce, there haave been noo major chaanges in term ms of the teenants nor any tenaancy agreem ments.

Average Maintenance Costs per year (in percent / replacement value)

The anaalysis of thee age relatedd influence was conducted in 2 seeparate steps evaluatingg each the servicinng and inspeection costs as well as tthe costs of repair. In thhe first step the focus w was put on the servvicing and inspection expenditurres to provve the indiccated correlation quotted in the literaturre. The outccome of the correspondding analysiss shown in figure 2 yett does not im mplicate a significaant correlaation consiidering thee servicingg and insppection exxpenditures and the correspoonding age of the technnical buildinng facilitiess. Disregardding certain variations, caused by years w with only verry few num mbers of resilient cases (e.g. 19, 433, 48, 49, 550), the servvicing and inspection costs shoow a rather steady distrribution witth an averagge of approxximately 0.668% of the ment value. The result therefore sshows neither a positivve nor a neggative interrrelation of replacem the servvicing and innspection costs and thee age of thee technical ffacilities. A future inteegration of an age-sspecific inflluencing facctor in the aaspired AME EV budgetinng tool in teerms of servvicing and inspection costs waas thereforee abandonedd. The analoogical analyysis consideering the doocumented costs forr repair & ooverhaul leads to a com mpletely diffeerent result.

Age of the Faacility

Figuree 2: Averagee service/insppection costs per year according to thee age of the fa facility (Bossmann & Bahr, 20133)

As show wn in figuure 3 the aannual expeenditures acctually rise as the faccilities “groow” older (accordiing to the ddashed trennd line). Thhis result appplies to a great extennd to the asssumption quoted iin the literaature before. Yet the diistribution ddoes not com mply with a linear incliine due to

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5 years. T The chronoloogy of mainntenance innvestments numerouus deviationns within thhe span of 50 rather seeems to be fformed by sseveral phasses of higherr and lover monetary m buurdens.

Age of the Faacility

Figure 3: Average ccosts of repaiir & overhauul per year according to thhe age of the facility (Bosssmann & Bahr, 20133)

The pottential reasons for thiis unsteady cost distriibution mayy be numerrous and neeed to be analyzedd in furtherr evaluationns in terms of proceedding researcch activitiess. Since thee analyzed expendiitures excluusively incllude the annnual costss of repair & overhauul the peaks in the distributtion might nnot be causeed by rebuillding, extennsive renovaation or upggrading. Connsequently there haave to be othher age relaated explanaations. One assumption is based onn the idea thhat the life span off major techhnical installlations mighht affect thee disposition of the exppenditures. The costs thereforre might risee with the ggrowing agee of some m major compoonents of thhe technicall facilities. But oncce these com mponents reach the endd of their liffe span and will be repllaced (thesee costs are not included in thee research) tthe new com mponents m might cause significantlly lower annnual costs than in the year beffore. Becauuse of this thhe life span as well as tthe econom mic framewoork will be focusedd on in furthher analysiss with the ggoal to inteegrate if so a new agee-specific innfluencing factor inn the aspireed future AM MEV budgeeting tool taaking the efffect of the technical age a on the repair & overhaul ccosts into acccount.

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hnical build ding facilitiies 4.2 Opeerating timee of the tech Anotherr potential influencingg factor menntioned in the literatuure is the ooperating tim me of the technicaal building ffacility (Kallusche, 1991; KGSt, 20009). The coorrespondinng hypothesiis is based on the iddea that the longer a tecchnical instaallation is being b operated on a dailly basis the higher the resultingg maintenannce expendiitures will gget, due to an a increasedd number of o necessaryy servicing and insppection measures. Thee cooperatinng public innstitutions therefore t w were asked tto specify their faccilities accorrding to theeir average operating o hoours per dayy. The evaluuation of thee influence of the opperation tim me on the annnual mainteenance costss was conduucted by a cluster analyysis. To do so four ddifferent cluusters repressenting typiical operatinng intensitiees were form med:

Continous Operation

Two-shiftoperation

One-shiftoperation

U t d ti Unsteadyoperation


Cluster 1: unsteadyy operation Cluster 2: one-shiftt operation Cluster 3: two-shiftt operation Cluster 4: continuous operationn

Operatiing time

Figure 4:A Average maiintenance cossts (based onn the replacem ment value) aaccording to thee operating tim me of the tecchnical facilitties (Bossmaann & Bahr, 22013)

The outtcome of tthe evaluatiion shown in figure 4 surprisinggly does noot correspond to the assumpttion mentionned before. According to the chartt the mainteenance expennditures in rrelation to the replaacement vallue for an unsteady u opeeration add up to 2.70% % while the costs of thee one-shift operatioon cluster am mount to 2..77%. Contrrary to that the two-shhift operatioon cluster w with 1.75% and the cluster reprresenting thee longest opperating tim me with 2.22% range siggnificantly llower than expectedd. Consequuently the reesult does neither n indiccate a positiive nor a neegative corrrelation of the operration time and a the corrresponding maintenancce expendituures. A veryy likely expllanation in this conntext is menntioned by B Bahr in herr dissertatioon on empirrical mainteenance data of public buildinggs (Bahr, 20008). She pooints out thaat the outcoome of an exemplary cluster analyysis on the operatinng time migght be signnificantly innfluenced by b the type of use of the buildinngs in the portfolioo. Due to thhe indifferennt result thee operating ttime will noot be taken into accounnt in terms of an inttegrated inffluencing facctor in the fu future AMEV V proceduree.

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ht 4.3 Buillding heigh An addiitional correelation analyysis was coonducted conncerning the building hheight in terrms of the total number of stoories. The appproach is bbased on the idea, that higher builldings need more and highly ccomplex teechnical faccilities for example too overcome pressure ddifferences in piping systemss or to meet safety regullations (Bosssmann & Lennerts, L 2013).

Number of o stories

Figure 5: Average maiintenance costs (based onn the replacem ment value) according a to the building heiight (Bossmaann & Bahr, 2013) 2

Yet the analysis off the real daata in relatioon to the repplacement vvalue does nnot show a llinear cost increasee related to the buildingg height (see figure 5). Especially for buildinggs from 1 too 8 stories the perccentages aree rather sligghtly decreaasing than inncreasing. The T corresponding averrage costs for all bbuilding with 1 to 8 sttories add uup to 1.76% % of the repplacement vvalue. In coontrast the average costs of alll buildings in the porttfolio with m more than 8 stories aree significanntly higher and addd up to 2.988%. Conseqquently the dashed trennd lines show a signifficant increase in the average maintenannce costs foor buildingss that have more thann 8 stories. The result might be explaineed by the faact that buildings with m more than 8 stories aree, by definittion, considdered to be high-rises and therrefore havee to meet tiightened saafety regulattionsin Gerrmany. Thiss includes particulaarly numerrous requireements in tterms of firre protectioon such as additional elevators, sprinkleer systems oor extensivee smoke exxtraction sysstems. The given requuirements m most likely result inn higher m maintenancee expenditurres. To takke this effeect into acccount it is therefore reasonabble to includde a correspponding inflluencing facctor in the fuuture AMEV V budgetingg method. S Standard oof the techn nical buildin ng facilitiess 4.4 Additionnally to the correlationn and clusterr analysis conducted too identify thhe main influences on the maiintenance oof the technnical buildiing facilitiees the reseaarch was aalso triggereed by the followinng questionn: Do higherr investmennts in inspecction and seervicing meeasures leadd to lower expendiitures in terrms of the resulting repair work needed? T The corresponding hyppothesis is based oon the idea that servvice and innspection m measures kkeep the teechnical installations predomiinantly in ggood condition and thherefore preevent failures and secoondary dam mages that might caause repair & overhaull measures. To evaluatee the potentiial correlatioon figure 6 shows the 158


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x and average costs (in reelation to thee replacemeent value) foor servicing and inspecttion on the x-axis the corrresponding costs for repair & ooverhaul meeasures on the y-axis. Assumingg that the hypotheesis mentionned before aactually exists the costs for repair & overhauul ought to bbe sinking accordinng to higherr investmentts in servicinng and insppection meassures.

Figuree 6: Average annual costs (in % of the replacementt value) for service and innspection meeasures in relation to the annuaal costs of reppair & overhaaul (in % of tthe replacem ment value)

Lookingg at the outtcome of thhe analysis in figure 6 this assum mption cannoot be confirrmed. The expendiitures for reppair & overrhaul actuallly show a w widely scatteered, non-diirectional diistribution compareed to the inccreasing cossts for serviccing and insspection meeasures.

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3. CONCLUSIONS & OUTLOOK To develop the new AMEV budgeting method, the real data of 140 public buildings was collected. Based on the corresponding database the identification and weighting of different influencing factors on the maintenance of building facilities was successfully completed. In the focus of the study were amongst others the age and the operating time of the technical facilities as well as the number of full stories that proved to be of crucial relevance. Based on these results, specific weighting factors were determined and integrated in the new AMEV budgeting method. From a scientific point of view this can be regarded as a valuable improvement in terms of the knowledge considering the influences and interdependencies on maintenance costs. Nevertheless the total number of 140 buildings statistically covers a rather small research basis. Outliers therefore might have a significant impact on the results. Hence, there is a continuative need of further research activities to consecutively validate the presented results. In this connection it is also necessary to generally improve the quality and quantity of the data collection in public institutions, taking in mind that only 21 institutions were capable to deliver the corresponding information needed. The general function of the new AMEV calculation is based on the replacement value multiplied with an unchanging parameter representing the overall average maintenance costs. This calculation basis is extended by an additional correcting factor (consisting of different weighting factors) in order to take the identified relevant influences into account and consequently to improve the quality of the calculation outcome. Based on the real data it was therefore possible to form a transparent calculation method that might support the maintenance experts in practice and significantly strengthens their position in future budget negotiations. Furthermore it has been possible to develop an additional excel-based calculation tool to help the owners of large assets to easily and transparently define their adequate maintenance budget by their own. Yet the decisive structure and function of the new AMEV budgeting method as well as the additional excel-tool were not the subject matter of the paper at hand but will be covered by future contributions.

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REFERENCES Bahr, C. (2008), „Realdatenanalyse zum Instandhaltungsaufwand öffentlicher Hochbauten – Ein Beitrag zur Budgetierung“, Universitätsverlag Karlsruhe, Karlsruhe. Bahr, C. (2010), “Quantitative validation of budgeting methods and suggestion of a new calculation method for the determination of maintenance costs”, Journal of Facilities Management, Vol. 8 No. 1, Emerald Group Publishing Limited, 1472-5967. BKI Baukosteninformationszentrum (2011), „Objektdaten – NK2 Nutzungskosten von Bestandsimmobilien“. BKI : Stuttgart. Bossmann, J., Bahr, C. (2013), "Kosten- und Personalbedarf für das Betreiben von technischen Anlagen", Abschlussbericht Forschungsinitiative "Zukunft Bau", Bundesinstitut für Bau-, Stadt- und Raumforschung (BBSR) im Bundesamt für Bauwesen und Raumordnung (BBR). Bossmann, J.; Lennerts, K. (2013), "Maintaining Building Facilities - A Growing Challenge", Proceedings of the 2013 International Conference on Construction and Real Estate Management (ICCREM), published by the American Society of Civil Engineers (ASCE): Karlsruhe. DIN 31051 (2012), „Grundlagen der Instandhaltung“, Deutsches Institut für Normung, Beuth Verlag, Berlin. Hampe, K.-H. (1986), „Vergleich des Einflusses unterschiedlicher Konstruktionen, Baustoffe und Ausstattungen bei sonst gleichen Gebäuden auf die Herstellungs- und Baunutzungskosten“, im Auftrag des Bundesministeriums für Raumordnung, Bauwesen und Städtebau am Institut für Bauforschung e. V., IRB Verlag, Stuttgart. Hellerforth, M. (2006), „Handbuch Facility Management für Immobilienunternehmen“, Springer Verlag : Berlin, Heidelberg [u.a.]. Kalusche, W. (1991), „Gebäudeplanung und Betrieb : Einfluss der Gebäudeplanung auf die Wirtschaftlichkeit von Betreiben“. Springer Verlag : Berlin. Kommunale Gemeinschaftsstelle für Verwaltungsmanagement – KGSt (2009),“Instandhaltung kommunaler Gebäude. Budgets ermitteln und Aufwand für Folgejahre planen“ (B 7), Verband für kommunales Management. König, H.; Schnoor, C. (1988), „Bestandserhaltung von Hochschulgebäuden : Untersuchung zu den Rechtsgrundlagen, den Einflussgrößen und dem zukünftigen Mittelbedarf. Hochschulplanung“, Band 66, Herausgegeben von der Hochschul-Informations-System GmbH, Hannover. Krimmling, J. et al. (2002), „Technisches Gebäudemanagement : Instrumente zur Kostensenkung in Unternehmen und Behörden“. Expert-Verlag : Renningen DIN 276 (2008), „Kosten im Bauwesen – Teil 1: Hochbau“, Deutsches Institut für Normung e. V.; Beuth, : Berlin. Rötzel, A. (2001), „Instandhaltung : Eine betriebliche Herausforderung“. 2. Auflage; VDE Verlag : Berlin, Offenbach Schulte, W.; Kalaitzis D. (1988), „Fundament erfolgreicher Instandhaltung : Wartung u. Inspektion“, Verlag TÜV Rheinland : Köln ZDB Zentralverband deutsches Baugewerbe (2010), „Analyse und Prognose : Bauwirtschaftlicher Bericht 2011/12. Zentralverband des deutschen Baugewerbes e. V.; Ludwig Austermeier Offsetdruck : Berlin.

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Evidence-Based Design in Learning Environments: A practical framework for project briefing Matti Sivunen Boost Brothers Ltd [email protected] +358 40 751 5710 Jere Viljanen Boost Brothers Ltd [email protected] Suvi Nenonen Aalto University [email protected] Juho-Kusti Kajander Boost Brothers Ltd [email protected]

ABSTRACT Purpose. The objective of this paper is to construct an evidence matrix, which can be used to analyse the correlation between learning outcomes and design strategies. Theory. In this paper, a framework tool for a building briefing is presented as a potential solution to include Evidence-Based Design (EBD) in building design. Design/methodology/approach. The research process was divided into three phases, namely a literature review, a workshop and a constructed model for linking EBD and a briefing process for further testing. Findings. The main finding of this paper is that a building owner can utilize the presented evidence matrix to make key decisions in the building briefing phase regarding functional requirements and design parameters that support learning in the facilities. This article suggests that the EBD methodology can be implemented in the building briefing phase to support the benefits that the facility offers to its users. In the future, longitudinal and multidisciplinary studies are needed to assess the effects between EBD and briefing. Originality/Value. Learning environment design at its best can have a significant positive impact on learning outcomes. Paradoxically, practical tools are rare for building owners to systematically manage the building design process to capture these productivity benefits. KEYWORDS Briefing, Design Strategy, Evidence-Based Design, Learning Environment, Learning Outcome 1. INTRODUCTION Learning environment facilities have a strong impact on the learning outcomes of students. For example, Barrett et al. (2013) argue that school design has a 25% impact on students’ learning rate. However, at the briefing phase of the construction management process, there is a lack of a systematic approach to link the building features and learning outcomes. Instead, the emphasis of briefing is often placed on standardized technical features and generalized user needs. Consequently, the utilization of research-based information on the documented benefits of 162


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different design solutions, such as the Evidence-Based Design (EBD) results, is currently ad hoc based. Traditionally utilization depends on the personal interest and expertise of an individual designer. The concept of EBD has been most widely discussed and examined in the context of healthcare facility research. EBD can be seen as a bridge for the gap which connects research evidence with operational design decisions. The Center for Health Design defines EBD as “the process of basing decisions about the built environment on credible research to achieve the best possible outcomes”. Even though EBD is increasingly discussed and applied in practice, it has not been successfully integrated into the building briefing process (Elf et al. 2012). Briefing is the stage when owners define the requirements for their construction project (Ryd 2004). It has been recognized as one of the most important phases of a project (Tzortzopoulos et al. 2006).An effective EBD process in briefing helps designers to take into account the potential benefits of different, even unfamiliar design solutions for facility users. In contrast, without external information, such as evidence from research, there is a risk that the building solutions will be static, traditional and conservative (Higgins et al. 2005). Jensen (2009) claims that one of the problems in the building industry is the limited degree of learning from experiences of the use and operation of existing buildings. The main research question of this paper is what are the potential correlations of design strategies and learning outcomes. Moreover, this paper examines how EBD can be utilized in a traditional construction project design process. This study proposes a potential implementation tool for facility projects in high school level educational buildings. The research process was divided into three phases. First, earlier literature was reviewed pertaining to EBD and construction project briefing and a link between EBD and building briefing studies was established. Following this, the results from the literature review were reviewed and validated in an industry expert workshop. The participants of the workshop were 16 researchers and industry specialists from Architecture/Engineering/Construction (AEC) and real estate industry. The presented evidence matrix was confirmed and co-developed. Finally, the model to link EBD and the briefing process was constructed for further testing. The literature review includes an overview of earlier studies and introduces the constructed evidence matrix. The matrix is described more thoroughly in the following chapters. The article concludes with suggestions for future research.

2. LITERATURE REVIEW The literature review includes two sections: the general theories of construction project briefing as well as a more specific review of the EBD concept.

Briefing and briefing tools The main aim of briefing is to develop client needs to functional requirements, design parameters and constraints. Functional requirements are a minimum set of independent requirements that completely characterize the functional needs of the facilities. Design parameters are the key physical variables in the physical domain that characterize the design that satisfies the specified functional requirement. Constraints are bounds on acceptable solutions (Suh 1990). Pennanen

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and Koskela (2005) noted that “during briefing the building as a solid object cannot be predicted”. Thus, the requirements set during briefing have many possible design solutions. The briefing phase is highly important when aiming to achieve good value-in-use. According to Shen and Ann (2012), the strategic needs and functional requirements of users should be planted as early as possible in the briefing stages of a project to have a significant impact. It is inefficient and often expensive to include more functional requirements for facilities after the briefing phase. According to a broad literature review by Ryd (2004), there are four different strategic briefing tools that have been utilized in setting functional requirements. The tools are: problem seeking, strategic need analyses, strategic choice approach, and scenario planning. Briefing can be seen as a problem seeking process and the design can be seen as a problem solving process. Peña and Parshall (2001) explain briefing as the pre-design activity that develops the considerations or design determinants that define a comprehensive architectural problem. The comprehensive method is a system called problem seeking and it consists of five phases: goals, facts, concepts, needs, and problems. The main sources of information in problem seeking are interviews and work sessions. Strategic Need Analysis aims to define the needs of the client. According to Smith et al. (2003), the method aims to help stakeholders see projects from their own organisation’s true goals, objectives, needs, and requirements. The main sources of information in strategic need analyses are seminars and workshops. The Strategic Choice Approach (Friend and Hickling 1997) is a Problem Structuring Method (PSM) developed as a methodological support for decision. Strategic choice is an incremental approach that recognises the need of an explicit balance between decisions to be made now and those that can be delayed. The main source of information in the strategic choice approach is workshops. Scenario planning is a strategic briefing tool for medium to long-term planning under uncertain conditions to manage complexity. It helps clients sharpen their strategies, develop their strategic briefs for the unexpected, and focus on their goals. Scenario workshops can challenge existing paradigms and create shared perspectives on the future. Even though there are several strategic briefing tools available, none of them systematically utilize evidence-based information, such as EBD, from outside the construction project. Instead, the main sources of information in briefing are usually interviews of the projects’ stakeholders, seminars and workshops and visits to similar buildings. Paradoxically, Kamara et al. (2000) and Ryd (2004) argue that briefing processes are often inadequate in considering the client perspective and often focus only on short-term problem identification.

Evidence‐Based Design in healthcare The concept of EBD is well-established in the context of healthcare facility research (Ulrich et al. 2008). EBD research has validated certain building design strategies to produce significant health benefits for building users. In particular, the EBD approach uses research evidence to forecast the desired outcomes for building users. The widely discussed review article by Ulrich et al. (2008) found rigorous studies that linked the physical environment to patient and staff outcomes in reduced stress, patient safety, improved outcomes, and overall healthcare quality. First and foremost, providing of single-bed rooms, noise reduction, views of nature, wayfinding, ventilation, natural lighting and effective layout planning were identified as the most important design strategies that lead to desired outcomes. On one hand, Lundin (2012) claims that EBD is a “buzzword” in hospital planning, and that there are differing opinions on whether a correlation between the physical environment and healthcare outcomes exists at all. In addition, Stankos and 164


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Schwarz (2007) criticise that EBD has been used several times only as a persuasive tool for decision makers to buy into suggested design solutions. There are only a few studies that have investigated how frequently evidence-based information is utilized in the briefing phase. According to these studies, briefing practices in general lack EBD utilization. In fact, the most comprehensive study made on briefing practices so far indicates that knowledge from previous projects is moved into new projects mainly through designers’ tacit knowledge (Kamara and Anumba 2000). In the area of Swedish healthcare projects, only a few of the studied 27 briefs mentioned evidence-based information (Elf et al. 2012).

Constructing an evidence matrix of learning outcomes Correlations between learning outcomes and design solutions can be identified in several studies. According to the literature, better learning outcomes can be gained through attainment, student well-being and personal fit, student engagement, student attendance, affect, user satisfaction, and student behaviour. Academic achievement is linked to learning components that facilitate learning. The main learning components are the student’s motivation, engagement, and academic emotions (Pekrun 2006). It is argued that students experience a wide range of emotions while studying (Pekrun et al. 2002). These academic emotions refer to emotions that are linked to academic learning activities. In addition, academic emotions are closely related to motivation, engagement and achievement in learning situations (Pekrun 2006). Thus it is relevant to study how different design strategies improve the learning motivation and engagement indicators such as student well-being besides attainment. Attainment Several factors have an effect on student attainment, i.e., improvements in curriculum attainment measured by standardized tests or exams, or as monitored by teacher observation. First of all, the temperature affects human performance, for which Maula et al. (2013) and Earthman (2004) have found evidence. Moreover, indoor air quality has been shown to be associated with attainment. For example, Satish et al. (2012) studied indoor air quality (IAQ) and provided evidence that human productivity varies by different levels of carbon dioxide, CO2, in the air. Haines et al. (2001) and Evans & Maxwell (1997) studied chronic noise exposure and cognitive functioning. Their studies discovered noise-related reading problems and deficiencies in prereading skills. Lercher et al. (2003) found evidence with more general cognitive deficits. Student attainment also depends on the classroom layout, arrangement and furniture choices. Knight and Noyes (1999) studied differences of attainment between traditional classroom furniture and ergonomically designed furniture. They found significant improvement in on-task behaviour when using ergonomically designed furniture with correct installations. In addition, Nash (1981) found evidence that the classroom layout and arrangement facilitated learning and enhanced cognitive development. Interestingly, a design strategy that enhances daylighting availability has been shown to improve human performance. In fact, standardized tests showed that better daylighting conditions lead to better human performance (Heschong 2002). Earthman (2004) also proved positive effects between daylighting and attainment. Barrett et al. (2013) examined the relationship between school building design and pupils’ learning rates in primary schools in the UK. The study comprising an empirical setting of 34 varied classrooms with 751 pupils showed that design solutions related to colour, choice, connection, complexity, flexibility and light were connected to 25% better learning progression. Student well-being and personal fit 165


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Several design solutions affect student well-being, i.e., impacts on the physical self, relating to discomfort as well as minor and major ailments. For instance, bad indoor air quality and importance of ventilation have been linked to poor well-being (Undin et al. 2003). According to Norbäck (2001), irritants and allergens decrease air quality and thus wellbeing. Thus, “fleecy” furnishing and open shelving should be avoided and the frequency of cleaning should be increased. Moreover, noise is a stress factor that will have a negative effect on students´ wellbeing. As a matter of fact, noise might increase blood pressure, which leads to helplessness in learning (Cohen et al. 1980). According to Stansfeld and Matheson (2003) predictability, control and judged necessity determine how annoying particular noises are for students. Furniture also has its role in the well-being that students perceive. According to Troussier (1999), students feel more comfortable in ergonomically designed furniture, thus it is likely to be correlated with perceived wellbeing. Student engagement Engagement refers to increased attention and decreased distracted or disruptive behaviour of students. A key factor for engagement is noise. However, the interactions between engagement and noise are complex. When a student is performing a high concentration task, for example, silent reading, external noises are very distracting (Shield and Dockrell 2004). Observations of teaching pauses have been studied and results show that noise bursts lead to significant (11%) reductions in teaching time (Rivlin and Weinstein 1984). A few studies have investigated the correlation between student participation and time on task and furnishing and classroom arrangement. A renovated room with soft furnishings and an aimed friendly and attractive feeling seemed to lead to increased student participation (Sommer and Olsen 1980). In a layout study, Galton et al. (1999) found that rows of desks (instead of, for example, pairs of desks) increased time on task and seemed to be appropriate for individual work. Matthews et al. (2011) studied social learning spaces and their potential impact on student engagement. The researchers conducted over a hundred informal interviews and found out that “social learning spaces can contribute to enhanced student engagement by fostering active learning, social interaction and belonging amongst tertiary students.” Such social places are often informal by their nature and represent something else than formal space types at school. Student attendance Earlier research has examined the correlation between student attendance (i.e., fewer instances of lateness or absenteeism) and facility condition, poor indoor air quality, and inadequate lighting. For instance, Durán-Narucki (2008) have studied the role of school attendance as a mediator of the relationship between facilities’ condition and student grades. The study showed empirical evidence that a poor school building correlates with student attendance, which led to decreased academic achievement. Rosén and Richardson (1999) linked poor air quality to absenteeism. They found that reducing the number of particles in the air resulted in reduced child absence. Hathaway (1992) argued that absenteeism and inadequate lighting correlate with each other. Affect In essence, affect is improvements in self-esteem for teachers and learners, increased self-esteem and identity and improvements in mood and motivation. Earlier studies have found that noises, the visual environment, ergonomically designed furniture and an open layout plan seem to be positively correlated with student affect. Lundquist et al. (2002) linked annoying noise to children’s level of mood in their study of the visual environment and concluded that it “affects a

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learner´s ability to perceive visual stimuli and therefore affects [a] student´s mental attitude. In addition, Troussier (1999) found that students have a preference for ergonomically designed furniture. Rivlin and Rothenberg (1976) stressed that students wish to perceive some privacy, which challenges the advantages of open plan classrooms. User satisfaction Learning is no more only knowledge distribution where a lecturer distributes his/her knowledge in auditoriums. Learners are requiring more dynamic and interactive methods of learning (Poutanen 2012). To meet this requirement of interactivity, the physical facilities benefit from having different layout options so that a sufficient level of flexibility is achieved. “It has been discovered that users appreciate possibilities to control their environment and it increases user satisfaction” (Nenonen et al. 2013). Student behaviour Air quality, temperature and the school layout have been found to correlate with student behaviour. For example, Fisher (2001) and Schneider (2002) argue that air quality and temperature affect student behaviour. Moore (1986) claims that the layout arrangement of preschool environments affects children’s behaviour. Social cohesion is easier to achieve in a comfortable indoor environment because it does not cause e.g. tiredness. This also seems to imply that basic physical variables have to meet the minimal requirements before it is possible to change other requirements. Based on the reviewed literature, considerable evidence for correlations between indoor environment elements and specific learning outcomes exists. Table 1 sums up the findings and presents the evidence matrix of learning outcomes. The correlations are indicated by applying the method of Ulrich et al. (2008).

Attainment Wellbeing Engagement (Study commitment) Attendance Affect User satisfaction Behaviour

** **

** ** **

*

* *

*

Informal areas at school

**

Arrangement/ layout

Noise

Air quality and temperature

Learning outcome

Furniture

Lighting and colour

**

Indoor environment elements

Facility condition

Daylighting

Table 1. Relationships between design strategies and outcomes

* * *

* *

*

*

* * *

*

*

* indicates that a relationship between a specific indoor element and a learning outcome was indicated, directly or indirectly, by a one empirical study reviewed in this report. ** indicates that there is strong evidence (converging findings from multiple studies) that a specified indoor element improves a learning outcome.

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3. UTILIZATION OF THE EVIDENCE MATRIX IN BRIEFING The evidence matrix (Table 1) can be utilized by building owners as a tool in the building briefing process. Both Pennanen and Koskela (2005) and Alexander et al. (2013) emphasize dialogue in briefing between owner, user and other stakeholders. The dialogue should include: 1. 2. 3. 4.

User activity description Workplace requirement description Performance requirement description Use-of-resource description.

These four steps can be both widened and deepened by applying the EBD process. In addition of functional requirements described as the user activity description also a functional requirements of the desired value-in-use for the user can be added to the brief. In addition of the design parameters of performance the brief can include EBD design parameters from the resulting evidence matrix. These two steps also include the seed for an evaluation of the outcome, which is not only based on evaluating the performance of the building but also on the evaluation outcomes of the performance of the users. This provides an approach that is closer to the usability appraisals developed in earlier studies (Alexander et al. 2013). Table 2 provides an example of an EBD application in the briefing process. Building design is the next phase after briefing. The success of the design solution can be evaluated with the brief. For example, if the presented design solution achieves design parameters and constraints e.g. the requirement of workplace, performance, EBD, and use-of-resources in normal conditions, the design can be accepted. Table 2. Example of EBD and brief implementation Type

Briefing phase

Briefing content in the dialogue

Role of Matrix

Example of values

Functional requirements

User activity description

User vision User processes

Classroom for 30 pupils

Desired value in use for the user Workplace requirement description

User goals for the value of the solution User space needs

Setting a context for a learning environment project Providing examples and good practices

Performance requirement descriptions EvidenceBased requirements from the resulting evidence matrix

Technical solutions

Providing new insights for the learning environment, for example, use flexibility Setting a context to technical solutions

Evidencebased choices

Providing recommendations

Design parameters and constraints

Improved student attainment by 30% during the first 5 years of operation Classroom requires 45 m2 and the room must be divisible into 2 small work group spaces

Load 5 kN/m2 Attainment (requirements): -

Air quality level: CO2 level at 600 ppm (Satish et al. 2012) and Internal temperature level: 23 Celsius degrees (Maula et al 2012) Noise: Ambient noise levels under 57 dBa (Haines et al 2001)

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Use-ofresource description

Goals for evaluation of learning environments

Basics for long-term and short-term evaluation

Colour: Bright colours (Warm colour for senior grades and cool colours for junior grades) (Barret et al. 2013) - Lighting: High quality and quantity of the electrical lightings (Barret et al. 2013) - Day-lighting: Classrooms receive natural light from more than one direction (Barret et al. 2013) The classroom will be in good use (utilization degree 70%), life-cycle costs of the classroom are 15 € / m2 / year.

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4. DISCUSSION AND CONCLUSIONS Correlations between learning outcomes and design solutions can be identified in several studies. According to the literature, better learning outcomes can be gained through attainment, student well-being and personal fit, student engagement, student attendance, affect, user satisfaction, and student behaviour. The main finding of this paper is that the presented evidence matrix can be used by a building owner to set functional requirements and design parameters that support learning in facilities and to utilise EBD results during a building briefing phase in a more systematic way. This article suggests that EBD methodology can be implemented in a building briefing phase to support the benefits that the facility offers for its users.The presented briefing model is potentially valuable for building owners in all procurement models. For example, in a traditional design / bid / build model the brief can be utilized to monitor whether the design solution fulfils the design parameters. In the Design & Build model, the brief can be utilized to evaluate the design quality of tenderers’ offers. As the EBD results have been collected globally, the results of this paper in relation to the correlation matrix can potentially be generalised internationally. The correlation matrix was objectively constructed from the literature and, moreover, 16 industrial experts confirmed that the correlation matrix covers relevant aspects and literature. The briefing process is also potentially useful in other industries, for example in healthcare, as the construction management process is in general industry-neutral. The results of this paper are only suggestive and thus the briefing process needs further testing. In future, longitudinal studies are needed to evaluate the effects that the EBD-integrated briefing has on construction management and value-in-use. 5. ACKNOWLEDGMENTS This study has been conducted as part of the RYM Ltd program Indoor Environment, partly funded by Tekes. Moreover, the authors are grateful to PhD Olli Niemi from SYK Ltd and prof. Seppo Junnila from Aalto University for giving valuable insights about the topic.

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REFERENCES Alexander, K., Blakstad, S., Hansen, G., Jensen, P.A., Lindahl, G. and Nenonen, S. (2013), “Usability: Managing Facilities for Social Outcomes”, In 19th CIB World Building Congress, Barrett, P., Zhang, Y., Moffat, J. and Kobbacy, K. (2013), “A Holistic, Multi-Level Analysis Identifying the Impact of Classroom Design on Pupils’ Learning”, Building and Environment 59 (January): 678–689. Cohen, S, Evans G.W., Krantz, D.S. and Stokols, D (1980), “Physiological, Motivational, and Cognitive Effects of Aircraft Noise on Children: Moving from the Laboratory to the Field”, American Psychologist 35 (3): 231–243. Durán-Narucki, V (2008), “School Building Condition, School Attendance, and Academic Achievement in New York City Public Schools: A Mediation Model”, Journal of Environmental Psychology 28 (3) (September): 278–286. Earthman, G.I. (2004), “Prioritization of 31 Criteria for School Building Adequacy”, Baltimore, MD: American Civil Liberties Union Foundation of Maryland. Elf, M. and Svedbo-Engström, M. (2012), “An Assessment of Briefs Used for Designing Healthcare Environments: A Survey in Sweden”, Construction Management and Economics: 1– 10. Evans, G.W., Maxwell, L. (1997), “Chronic Noise Exposure and Reading Deficits The Mediating Effects of Language Acquisition”, Environment and Behavior 29 (5): 638–656. Fisher, K. (2001), “Building Better Outcomes: The Impact of School Infrastructure on Student Outcomes and Behaviour.” Schooling Issues Digest, Available at: http://www.eric.ed.gov/ERICWebPortal/recordDetail?accno=ED455672 (Accessed 15 October 2013). Friend, J. and Hickling, A. (1997), ”Planning under Pressure: The strategic Choice Approach”, Butterworth-Heinemann, Oxford, UK. Galton, M., Hargreaves, L., Comber, C., Wall, D. and Pell, A. (1999), Inside the Primary Classroom: 20 Years On, London: Routledge. Haines, M.M., Stansfeld, S.A., Job, R.F.S., Berglund, B. and Head, J. (2001), “Chronic Aircraft Noise Exposure, Stress Responses, Mental Health and Cognitive Performance in School Children”, Psychological Medicine 31 (02): 265–277. Hathaway, W.E. (1992), “A Study into the Effects of Types of Light on Children-a Case of Daylight Robbery”, Edmonton. Available at: http://www.nrccnrc.gc.ca/obj/irc/doc/pubs/ir/ir659/hathaway.pdf (Accessed 15 October 2013) Heschong, L. (2002), “Day Lighting and Student Performance”, ASHRAE J 44: 65–67. Higgins, S., Hall, E., Wall, K., Woolner, P. and McCaughey, C. (2005), “The Impact of School Environments: A Literature Review”, The Centre for Learning and Teaching, School of Education, Communication and Language Science, University of Newcastle, 10: 04–08. Jensen, P. A. (2009), ”Design Integration of Facilities Management: A Challenge of Knowledge Transfer.” Architectural Engineering and Design Management, 5(3), 124-135. Kamara, J.M. and Anumba, C.J. (2000), “Client Requirements Processing for Concurrent LifeCycle Design and Construction”, Concurrent Engineering 8 (2): 74–88. Knight, G. and Noyes, J. (1999), “Children’s Behaviour and the Design of School Furniture”, Ergonomics 42 (5): 747–760. Lercher, P., Evans, G.W. and Meis, M. (2003), “Ambient Noise and Cognitive Processes Among Primary Schoolchildren”, Environment and Behavior 35 (6): 725–735.

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Lundin, Stefan. (2012), “What Does EBD Mean to the Work of the Healthcare Architect?” ARCH12 Lundquist, P., Kjellberg, A. and Holmberg, K., (2002), “Evaluating Effects of the Classroom Environment: Development of an Instrument for the Measurement of Self-reported Mood Among School Children”, Journal of Environmental Psychology 22 (3): 289–293. Matthews, K.E., Andrews, V. and Adams, P. (2011), “Social Learning Spaces and Student Engagement”, Higher Education Research & Development 30 (2): 105–120. Maula, H., Östman, L., Haapakangas, A., Hongisto, V. and Koskela, H. (2013), “The Effect of Moderately High Temperature on Work Performance and Comfort in Office Environmentlaboratory Experiment with Wider Range of Cognitive Tasks”, Available at: http://www.cpeimages.qut.edu.au/images/HB2012Proceedings/PDF%20Docs%20for%20Procee dings/7C.1.pdf (Accessed 15 May 2013). Moore, G.T. (1986), “Effects of the Spatial Definition of Behavior Settings on Children’s Behavior: A Quasi-experimental Field Study”, Journal of Environmental Psychology 6 (3): 205– 231. Nash, B.C. (1981), “The Effects of Classroom Spatial Organisation on Four-and Five-year-old Children’s Learning”, British Journal of Educational Psychology 51 (2): 144–155. Nenonen, S., Koskela, H. and Kosonen, R. (2013), “Towards the User Experience - Integration of the Measurable and Non-Measurable Conditions of the Indoor Environment”, In proceedings of 11th REHVA World Congress CLIMA 2013 and the 8th International Conference on Indoor Air Quality, Ventilation and Energy Conversation in Buildings. Norbäck, D. (2001), “Irritants and Allergens at School in Relation to Furnishings and Cleaning”, Indoor Air 11 (2): 127–133. Pekrun, R. (2006), ”The control-value theory of achievement emotions: Assumptions, corollaries, and implications for educational research and practice”, Educational Psychology Review, 18(4), 315–341. Pekrun, R., Goetz, T., Titz, W. and Perry, R. P. (2002), ”Academic emotions in students' selfregulated learning and achievement: A program of qualitative and quantitative research.” Educational psychologist, 37(2), 91-105. Peña, W. and Parshall S. A. (2001), ”Problem Seeking; An Architectural Programming Primer”, 4:th edition, AIA Press, New York. Pennanen, A., and L. J. Koskela. (2005), “Necessary and Unnecessary Complexity in Construction”, In Proceedings of First International Conference on Built Environment Complexity, Available at: http://usir.salford.ac.uk/id/eprint/9379 (Accessed 15 October 2013). Poutanen, J. (2012), “Third Places at the University Campuses and Their Potential as New Learning Environments”, Architecture as Human Interface 2012 Conference. Rivlin, L.G. and Rothenberg, M. (1976), “The Use of Space in Open Classrooms”, Environmental Psychology: People and Their Physical Settings, Holt, Rinehart & Winston. Rivlin, L.G. and Weinstein, C.S. (1984), “Educational Issues, School Settings, and Environmental Psychology”, Journal of Environmental Psychology 4 (4): 347–364. Rosén, K.G. and Richardson, G. (1999), “Would Removing Indoor Air Particulates in Children’s Environments Reduce Rate of Absenteeism—a Hypothesis”, Science of the Total Environment 234 (1): 87–93. Ryd, N. (2004), “The Design Brief as Carrier of Client Information during the Construction Process”, Design Studies 25 (3): 231–249.

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Satish, U., Mendell, M.J., Shekhar, K., Hotchi, T., Sullivan, T., Streufert and S., Fisk, W.J. (2012), “Is CO2 an Indoor Pollutant? Direct Effects of Low-to-Moderate CO2 Concentrations on Human Decision-Making Performance”, Environmental Health Perspectives 120 (12): 1671. Schneider, M. (2002), “Do School Facilities Affect Academic Outcomes?”, Available at: http://www.eric.ed.gov/ERICWebPortal/recordDetail?accno=ED470979 (Accessed 15 October 2013). Shen, G.Q. and Ann, T.W. (2012), “Value Management: Recent Developments and Way Forward”, Construction Innovation: Information, Process, Management 12 (3): 264–271. Shield, B. and Dockrell, J.E. (2004), “External and Internal Noise Surveys of London Primary Schools”, The Journal of the Acoustical Society of America 115: 730. Smith, J., Jackson, N and Wyatt, R. (2003), ”A method for strategic client briefing”, Facilities 21 (10): 203-211. Sommer, R. and Olsen, H. (1980), “The Soft Classroom.” Environment and Behavior 12 (1): 3– 16. Stankos, M. and Schwarz, B. (2007), “Evidence-Based Design in Healthcare: A Theoretical Dilemma”, Interdisciplinary Design and Research E-Journal 2007 (1). 1. Stansfeld, S.A. and Matheson, M.P. (2003), “Noise Pollution: Non-auditory Effects on Health”, British Medical Bulletin 68 (1): 243–257. Suh, N. P. (1990). The principles of design (Vol. 990). New York: Oxford University Press. Troussier, B. (1999), “Comparative Study of Two Different Kinds of School Furniture Among Children”, Ergonomics 42 (3): 516–526. Tzortzopoulos, P., Cooper, R., Chan, P. and Kagioglou, M. (2006), “Clients’ Activities at the Design Front-End”, Design Studies 27 (6): 657–683. Ulrich, R.S., Zimring, G., Zhu, X., DuBose, J., Seo, H., Choi, Y., Quan, X. and Joseph, A. (2008), “A Review of the Research Literature on Evidence-based Healthcare Design”, Health Environment Research & Design Journal 3: 1–13. Undin, A.L. and Usabasić V.M. (2000), “Improved Health after Intervention in a School with Moisture Problems”, Indoor Air 10 (1): 57–62.

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SECTION SIX: RELATIONSHIP MANAGEM ENT IN FACILITIES MANAGEMENT Introduction Relationship management in FM Keith Alexander Centre for Facilities Management, Manchester, UK

Papers Discovering the Relationship Lifecycle in FM: Phases and Drivers of Client Value Perceptions Christian Coenen and Paul Nwanna. Relationship value and relationship quality in FM Ying Ying Cui. Introducing marketing and market research to FM firms: a conceptual framework for managing the change process Arno Meerman, Vanessa Lellek and David Serbin.

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Introduction RELATIONSHIP MANAGEMENT IN FM Keith Alexander Centre for Facilities Management, Manchester, UK Pioneering research by Coenen et al (2013), as part of the Added value of FM project, introduced and described the concept of the FM Value Network which takes a subjective perspective and focuses upon the relationships amongst key FM stakeholders. The work proposes a demand perspective and considers client, customer and end user perceptions of value. The approach is consistent with the thinking that underpins the European standards in FM (EN 15221) and provides a conceptual foundation for considering a demand driven, service-oriented and user focused approach to FM. It introduces important concepts drawn from related fields such as services marketing, business economics and management and identifies an agenda for future research. Building on this work, Coenen has continued to focus on relationship management and upon business to business relationships between clients and service providers in particular. In the paper in this section, Coenen and Nwanna investigate how client value perception varies at different stages in the lifecycle of a relationship and identify drivers that are responsible for this. The findings highlight specific areas where clients’ trust and control perceptions vary. The authors propose that FM providers should focus on clients’ perceptions of value, rather than purely delivering the terms of the contract, in order to build client loyalty. Joint work presented at last year’s symposium in Prague (Coenen and Cui, 2013), has been developed further by Cui, in a study to adapt a model of buyer-seller relationships, with an emphasis on

supplier performance evaluation in the field of FM. Cui’s paper presents the model and explores links with satisfaction and trust, as key constituents of relationship quality. The paper argues that measuring customer satisfaction allows a service provider to make strategic decisions in respect to resource allocation (i.e. which complaints to resolve) and strengthens customer relationships. Meerman’s paper also addresses the relationship between clients and providers and addresses the challenge of including customer satisfaction in the productivity measurement process in facilities management. The paper proposes ways in which service providers can integrate the measurement of customer satisfaction in their measurement processes. Recent marketing studies have suggested additional dimensions for investigation, for example commitment and control. Taken together, this research provides basis for further in-depth investigation in the study of relationship value and relationship quality in FM. References: Coenen, C., Alexander, K., and Kok, H. (2013), “Facility Management Value Dimensions from a Demand Perspective”, Journal of Facilities Management, 11, 4, 339-353.

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Coenen, C. and Cui, Y. (2013), Relationship Value in FM: A Customer Perspective, International Journal of Facilities Management, Special Issue EFMC2013, 9-24.

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Discovering the Relationship Lifecycle in FM: phases and drivers of client value perceptions Christian Coenen and Paul Nwanna Institute of Facility Management, Zurich University of Applied Sciences E Mail: [email protected]

ABSTRACT Purpose: The purpose of this paper is to identify FM client value perceptions as well as the key drivers of this B2B relationship. Design/methodology/approach: A literature search on relationship lifecycle and customer value is used to design semi-structured, in-depth group interviews with three large client organizations and their respective FM suppliers. Findings: Three key phases of a FM relationship lifecycle are identified and analysed. In addition, main drivers of relationship value along these different stages are characterized. These include hard and soft drivers during the initiation stage as well as pull-and-push drivers during the enhancement stage. Relationship dissolution can be triggered by problem-related or strategyrelated drivers. Along the relationship lifecycle, FM customers perceive varying degrees of trust and control toward the supplier. Originality/value: The research provides a case study of how client value perception varies along the relationship lifecycle stages and which drivers are responsible for this. The findings highlight specific areas where clients’ trust and control perceptions vary. FM providers need to create client loyalty by managing relationships professionally, rather than merely generating new clients. Thus, providers should focus on clients’ value perception, rather than purely delivering the contract. Keywords Relationship Lifecycle, Client, Value, Trust, Control

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INTRODUCTION

The focus on cost reduction and efficiency has pushed companies into long-term relationships with their suppliers. Few would question the idea that the quality of supplier-customer relationships accounts for a great amount of business success. In their 2012 RICS research paper, Ware and Carder justified the existence and relevance of strategic FM relationships by stating that, “the Head of Facilities is at the centre of a web of relationships, between the senior executives, SBUs, IT, HR, RE and (…) usually the service providers” (2012, p. 21). As Sarshar and Pitt (2009, p. 411) correctly noted, “FM is primarily about people and it is the people of the FM organizations that make or break customer relationships.” These relationships originate first with one party, mature over time and, after several years’ duration, may decline and finally terminate. During these various stages, the FM supplier co-creates different amounts of value with and for his customers. Despite overall awareness of these different stages, relationship lifecycle research is lacking. Earlier research in other non-FM fields has tended to view relationships as static, ignoring the dynamics that occur during the different stages (Dwyer et al., 1987; Eggert et al., 2006). Additionally, Liljander and Strandvik (1995) stated that the dominant view regarding B2B exchange has been static. Liljander and Strandvik further propose that unfolding the static service quality rating within a time duration would highlight the processes by which quality is developed, maintained, and lost; the authors note that such an approach would lead to recognizing customers as an “investment object” and good relationships as a “potential for profitability”. As mentioned above, relationship management and value has been a focus in other disciplines, such as marketing and services management, while only recently, the FM field discovered this research topic (Coenen et al., 2012; Cui, 2013; Coenen and Cui, 2013). Hence, further research is needed for a better understanding of how FM customers view value creation across the entire relationship lifecycle. As stated in EN 15221-1 (2006), the FM customer category can be split into three levels: clients at the strategic level, customers at the tactical level, and end users at the operational level. This research solely takes the perspective of the client, hence the strategic perspective. The aim of this paper is to identify the nature of client value perceptions as well as the key drivers within the various stages of B2B relationships in FM. Using a case study approach, field data is derived from different client organizations and FM service providers that have dyadic relationships. Based on interviewing and literature research, the main steps of an FM relationship lifecycle are identified and analysed. In addition, the main relationship value drivers along these different stages are characterized with implications for research and practice.

2

CONCEPTUAL BACKGROUND OF VALUE DURING B2B RELATIONSHIP LIFECYCLE

2.1

Value, Satisfaction, Trust and Commitment in B2B Relationships

As Grönroos (2011) pointed out, value co-creation is often discussed on a philosophical level. Basically, value is the trade-off between what one benefits and what one sacrifices (Zeithaml, 178


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1988; Sánchez-Fernández & Iniesta-Bonilla, 2007). Benefits are what the customer seeks to buy, whereas sacrifices, according to Berry (2009), have both a monetary component (economic costs) and a non-monetary component (for example, inconvenience or time invested). For customers, value means that they feel better off than before after having been provided with resources or interactive processes (Grönroos, 2008). Delivering superior value entails maximizing benefits and minimizing sacrifices for customers in their supplier relationship (Coenen et al., 2013). Similar to value, the concepts of satisfaction, trust, and commitment have been identified in various marketing studies as essential determinants of long-term buyer-seller relationships (Dwyer et al., 1987; Moorman et al., 1992; Gundlach et al., 1995; Mishra, 2000; Dash et al., 2007). Satisfaction and trust have been identified as key relationship commitment drivers (Mishra, 2000). Teas (1994) claimed that satisfaction cannot validate a relationship by itself since there are possibilities that one could look only at the satisfaction derived from recent experiences. Dash et al. (2007) noted that satisfaction and trust increases as the relationship environment between both parties progresses and defined trust as, “one party’s belief that its needs will be fulfilled in the future by the actions undertaken by the other party” (2007, p. 5). Dash et al. further state that trust is an essential relationship “building block”, and stress that business partners allocating resources to build a relationship over a period of time expect that trust should be the major emotional aspect for both parties. Commitment in relationships generally shows that both parties value its importance and are willing to ensure it lasts over a long period of time (Gundlach et al. 1995; Wilson, 1995). Commitment is defined as, “an implicit or explicit pledge of relational continuity between exchange partners” (Dwyer et al., 1987, p. 19) and the authors emphasise that commitment indicates the readiness to make short-term sacrifices in order to obtain long-term benefits. Moorman et al. (1992) stressed commitment as an enduring desire to maintain “value relationship”. Since it can be assumed that an FM client’s value perception, satisfaction, trust and commitment are not static or permanent during the entire life cycle of the relationship, the next paragraph introduces the different stages of buyer-seller relationships. 2.2

Generic lifecycle stages in a B2B setting

While considerable research has focused on relationship management and value in general, only a limited amount of research takes a holistic view at the lifecycle of the entire B2B relationship duration (Eggert et al., 2006; Jap and Anderson, 2007). In addition, much relationship dynamic research is mainly conceptual in nature (Wilson, 1995, Wilson and Jantrania, 1996). Some of the few publications that deal with relationship dynamics date back to the late 1980s. In their research from 1987,Dwyer and his colleagues. describe the theory in which both parties build a relationship in a sequence of steps until they get to a level of commitment or dissolve the relationship, offered a stage model as shown in Figure 1.

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Figure 1: Relationship development process (similar to Dwyer et al., 1987, p. 21).

Relationship Phase

Phase Characteristics

1. Awareness

1. Unilateral considerations of potential exchange partners

2. Dyadic interaction occurs. A gradual increase in interdependence reflects bilateral testing and probing. Termination of the fragile association is simple.

Enabling Sub-processes for Deepening Dependence

2. Exploration

Attraction

Communication/ Bargaining

Norm development

3. Expansion

4. Commitment 0

Power/ Justice

3. A successful power source exercise marks the beginning of expansion. Mutual satisfaction with customized role performance supports deepening interdependence. Additional gratifications are sought from the current exchange partner, rather than from an alternative partner.

Expectations development

Shared values and governance structures support joint investment in relation Seller’s dependence on buyer

Buyer’s dependence on seller

0

4. Contractual mechanisms and/or shared value systems ensure sustained interdependencies. Mutual inputs are significant and consistent. Partners resolve conflicts and adapt.

Dwyer et al.’s relationship development model highlighted primary transitions and phase characteristics to explain that awareness is a unilateral, pre-exchange process and that mutual considerations and dyadic interactions initiate exploration, which is mainly a relationship testing period. Continual exchange may reflect an extended testing period. The exchange association is easily terminated at this stage and the relationship might end before really starting. However, if the parties effectively communicate, negotiate roles reflecting fair contributions from both sides, and form expectations for promising future interactions, the relationship enters into the expansion stage. The five sub-processes shown in Figure 1 support a new path of deepening the expansion phase interdependence. As Dwyer et al. further explained, the commitment phase then supports high mutual dependence by defining the exchange relation with value structures and contractual mechanisms that ensure durability. Ford et al. (1998) noted that any party’s action that leads to higher cost perception or lesser reward, and therefore less relationship value, could

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likely leead to reducced committment whichh in turn haas negative effects on the continuuity of the relationship. 3

R RESEARC CH METHO OD AND ANALYSIS

3.1 R Research a approach Using an inductivve approacch, the auuthors adoppted the suubjectivism m and interrpretivism philosopphies by loooking at thee world as dynamic. d Thhese philosoophies allow w exploring the study area in detail d (Rem menyi et al., 1998). Morre details reggarding the research chhoices and ttechniques can be observed o in Figure 2. Figurre 2: The Ressearch Onionn (adapted froom Saunders et al. 2009, pp. 138).

3.2

D Data collecction and an nalysis

Multiplee case studies (semi-strructured, in--depth groupp interviews) collectedd data from two t major industriaal engineering compannies and onne major finnancial servvice organizzation that have h B2B relationships with m major FM service s provviders. According to Robson R (20002), a case study is a menon in itss natural conntext with researchh strategy thhat examinees a typical contemporary phenom the helpp of several eevidence soources. The sem mi-structuredd, dyadic grroup interviiews with F FM clients aand providerrs serve as oone of the most vittal informattion sourcess (Yin, 20003) and focuus only on the core buusiness orgaanization’s strategicc level. Acccording to Laforest L (20009), semi--structured interviews i aare approprriate when

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working with smaller samples to understand a particular situation, as well as to augment and validate information obtained from other sources. Laforest (2009) further stated that semistructured interviews provide access to “perceptions and opinions”, which are very useful for gaining insight into a particular study subject. As can be observed in Table 1, the dyadic interviewees have had a notable relationship experience with each other (between 8–15 years).

Table 1: Overview of interviewees and relationship duration Interview Reference

Interviewee Role

Interviewee Position

Duration of Relationship

1A 1B

Client FM Service Provider

Head of Shared Services Key Account Manager

11 years

2C 2D


Vice President Key Account Manager

15 years

3E 3F


Chief Financial Officer (CFO) Key Account Manager

8 years

Since the main data source was audio-recorded group interviews, analysis consisted of examining, categorizing, structuring or, in some cases, reorganizing the transcribed data. 4

RESULTS

Based on the above model by Dwyer et al. (1987), the interviews identified three key stages and certain drivers. The following excerpts present evidence regarding FM client’s value perception along these stages. The presented results reflect only the client’s perspective and leave out the provider’s side, because the main focus of this research is the client’s point of view. It can be stated that during the interviews, the FM providers mostly agreed to the statements of their respective clients. This section only describes the pure results without analyzing them. The corresponding analysis is provided in the discussion section. 4.1

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Initiation stage

a) Selection criteria 

“We looked at offer price, performance, positive feelings and impression and word of mouth from colleagues.” (1A)





“We made comparisons with other FM service providers (…) by looking at FM providers being able to do what customers want. Unfortunately, looking at (…) FM market, providers are not able to meet all the demands of the customer. Other criteria we looked at are history/background of FM providers, transparency, providers with good brand name and providers with banking industry experience.” (2C) “We looked at offers which fit to a very large extent to the expectations of our organization. Unfortunately, the FM market (…) is not large and there are only a handful of providers who are capable of handling the size of our real estate portfolio; hence there is no need to compare with other smaller FM providers.” (3E)

b) Value drivers 

 

4.1.2

“We want to have one face to the customer and not twenty, meaning that we, as a customer, are looking for only one provider with good FM proficiency that can handle all customer demands and that provider should fit with our strategy.” (1A) “We are looking for FM providers with good value for prize in addition to a good brand name.” (2C) “For us, (…) we are looking for a FM provider with the right capability in terms of size, good background, competency and ability to fulfill our requirement catalogue such as capability to sort out infrastructural/technical points and capability to adapt to the various phases of our projects as well as response time and, of course, value for cost.”(3E) Enhancement stage

a) Enhancement initiators  

“It was a consequence of past satisfactory performance that led to the enhancement of the relationship by the customer through renewal of the contract.” (1A) “Our management goes to our service provider’s management to discuss the relationship enhancement based on satisfactory performance; however, if there are changes in our strategy, further questions will be raised.”(2C)

b) Value drivers 

“We should also be able to jointly develop processes with such providers; above all, there should be a balance between prize and benefit.” (1A) 183

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



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“We perceived our provider as being able to: create new processes, innovate, reduce cost, cancel non-value-adding processes, and provide qualified personnel (…) to fulfill every need of the customer.” (1A) “I also wish to state that our long-term relationship of 11 years has generated a good working process, but I would like to stress that there is also a consequence of not changing a provider as a result of the long-term relationship.” (1A) “Our relationship is based on trust, which lies in the capability of the provider to deliver on the promised services, but we have also - at a higher level - the contract with the right set of KPIs, but first is trust which led to the enhancement of the relationship.” (2C) “It is worth noting that the cost of changing a provider within a short relationship duration is much higher than the cost of maintaining the current relationship from experience. Therefore, prior to entering into a B2B relationship it’s worth spending time and resources to select the best provider to build a long-term relationship with.” (3E)

Dissolution stage

a) Relationship issues/problems 







“We do have issues with our provider. A good example is the issue with roof leakage; however, we communicate the issue to our FM provider and since we have a process for solving issues - as long as they stay within the time frame of resolving the issue according to our process - we are satisfied.” (1A) “We believe that good process brings good value for money and satisfaction, which can be achieved through adequate communication and explanation of the way forward. Anything short of this could deteriorate the relationship.” (2C) “We had performance issues with our former provider (…). The issue was a combination of several accumulated issues which we did communicate to the provider, but unfortunately they were unable to address them in line with customers’ expectations. Hence the contract was terminated.” (3E) “All problems start with expectations. Therefore, if you did not specify your work package correctly at the beginning then you are lost afterwards.”(3E)

b) Changes in client strategy 



“Changes in our strategy in terms of finding new ways of doing things when compared to other FM providers, could lead to the termination of our relationship with our current provider, if we perceive that they are not able to fulfil our requirements.” (1A) “For us, the relationship could go bad when we have a change in our strategy in order to get the best value for prize and quality which our current provider is not able to fulfil.” (2C)

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4.2 Dynamics of value, trust and control during the lifecycle a) Dynamics of value expectations 



“I believe that the value expectations differ along the different stages. For example, high communication in the beginning of the relationship and less trust, but at a later stage of the relationship, less communication and higher trust and commitment.” (1A) “There are different value expectations; for example, in the beginning of the relationship, a lot of communication is required for better understanding of needs, adaptations and possibility to jointly work together, but as the relationship develops good processes are put in place and less communication is required.” (2C)

b) Dynamics of trust and control 



“At stage 1 (…) of the relationship, I expect more control and less trust, then at stage 2 (…) I expect more trust and less control and finally, at stage 3 (…) of the relationship I expect both equal trust and control.” (1A) “In the beginning of the contract (…), I would say 75 percent control and 25 percent trust; during the contract (…) it changes, but if the performance of the provider is good or even better, it can be 50 percent control (set on contractual requirement) and 50 percent trust.” (2C)

After showing various examples of the interview results, the coming section aims at discussing these results and deriving implications for practice and research. 5

DISCUSSION AND IMPLICATIONS

5.1

Relationship lifecycle stages and corresponding drivers

The results show that three key stages can be differentiated: 1) Relationship Initiation, 2) Relationship Enhancement, and 3) Relationship Dissolution. In the initiation phase, two driver categories were identified. First, hard facts, such as supplier size, one-face-to-the-customer, or industry experience, play an important role for supplier selection. These facts can mostly be observed and assessed by the client before the contract is signed. “Value for money” is also mentioned by all interviewees, but should not be confused with the prize of the offering. As Coenen et al. (2013) pointed out, in FM, one might know the costs of the offering and be able to calculate the price, but not be able to determine the value since all stakeholders define the value in FM. Thus, the driver “value for money” is not as clearly assessable as the above-mentioned hard facts. The second driver category, that is, soft facts, include, for example, positive feeling, good brand name or positive word-of-mouth about the supplier. These drivers are not as easy to measure, nor are they as valid, as the hard facts, because they largely depend on the subjective perception of the individual client. Satisfactory performance in the initiation phase leads to the enhancement phase, in which FM suppliers can actively push and outperform their competitors by acting innovatively in process development together with the client, reducing costs by, for example, eliminating non-valueadding processes, or building up client trust, which lies in the provider’s ability to deliver on the 185


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promised services. Besides these active factors, certain passive pull factors can enhance the relationship. If, for example, the expected monetary and non-monetary costs of switching the FM supplier exceed the expected benefits, the client will most probably stay in the current relationship, despite not being fully satisfied. As described in Figure 1, this phenomenon might very well increase as the parties’ mutual dependency grows during the course of the relationship. Thus, for enhancing long-term relationships, expected switching costs should exceed perceived retention costs. This rule of thumb does not apply only to the client’s perspective, but also to the FM provider’s perspective, because both parties strive for reaching economic goals. At any time during both of the above-described relationship phases, reasons for termination and dissolution can appear. These problem-related drivers might include vaguely specified expectations that lead to dissatisfaction, broken promises with regard to supplier performance or costs, or a lack of communication between the two parties. In addition, there are also dissolution drivers that originate in strategic changes. Strategy-related drivers, for example, a geographic or functional expansion of the client’s core business, merger with other organizations or insourcing of formerly outsourced services, might lead to termination of the supplier relationship, because the FM provider is not able to match the client’s strategic scope. The above-described insights are visualized in Figure 3.

Figure 3: Relationship lifecycle stages and drivers Hard Drivers

Soft Drivers

Push Drivers

Pull Drivers

Relationship Initiation

Relationship Enhancement

(Awareness/Exploration)

(Expansion/Commitment)

Relationship Dissolution Problem Drivers

Strategy Drivers

Analysing the interview data shows that the client’s subjective trust and control perception varies along the lifecycle stages. This phenomenon is described in detail in the next paragraph. 5.2

Client’s Trust and Control Perception within the Relationship Lifecycle

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At the initiation phase, the client perceives more need for communication and perceived control to counteract the potential high risk at this stage of the relationship. Thus, service providers are well advised to react to the client’s perceived risk by establishing an effective and consistent culture of communication and offering the client a high degree of perceived process control through, for example, introducing recurring rituals, such as meetings or status quo information exchanges with relevant stakeholders. By doing so, the client most likely experiences a better understanding of his needs, improved opportunities for process and outcome adaptations, as well as better chances to co-create value. During the enhancement stage, the perceived risk on the client’s side will most probably decrease and trust will replace the control function. At this stage, clients may perceive a high degree of supplier value because the benefits surmount the relationship’s sacrifices. By now, trust plays a crucial role for both relationship parties, because the client needs trust in the supplier to reduce control costs. On the other side, the supplier needs trust to be able to improve and innovate with regard to service design, cost optimization, and process innovation. If the dissolution of the relationship is based on supplier problem drivers, as explained in the preceding chapter, the perceived value will most probably decrease, because the monetary and non-monetary control costs will increase toward the potential termination of the relationship. In the alternative case, that the dissolution is not initiated by problem drivers, but by strategy drivers, the degree of perceived value and trust from the client’s perspective can still be considerably high. In this case, the termination of the relationship is mainly based on a lack of strategic fit of the involved parties, rather than on satisfaction-related issues with the contract. 5.3

Limitations and Future Research

Among the study’s limitations is the case study approach. As with any case study, the sample size is limited. The three client organizations were industrial engineering and financial services organizations and they may not represent the views of other industries. Additionally, investigations on customer’s perceptions on a tactical level as well as on an operational level (FM end users) might provide some more insight into FM relationship lifecycles. With regard to future research in this field, there are various opportunities that promise interesting insights. First, relationship lifecycle stages in FM can be further examined by using the presented results to validate the findings with the help of a bigger sample size. This approach would offer opportunities to include data from other industries, as well as from distinctive customer types (client/customer/user), and other national and cultural backgrounds. It can, for example, be assumed that relationship practices in Europe may vary significantly from practices in Asia, Africa or the Americas. Second, the interplay between trust and control within the different FM relationship lifecycle stages needs further exploration. Psychological contract models might be of help exploring this field in depth. Third, reasons for retaining or terminating the relationship with FM suppliers have to be looked at more closely. The trade-off between switching and retention costs promises to be an interesting research field from both perspectives: FM clients and FM suppliers.

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CONCLUSION

The purpose of this paper was to identify FM client value perceptions as well as the key drivers of this B2B relationship. In this research we were able to detect three different main stages of the relationship lifecycle: initiation (sub-stages: awareness and exploration), enhancement (substages: expansion and commitment), and dissolution. During these stages, the value perception of the client is determined by various drivers (hard, soft, pull, push, problem, and strategy). As can be seen from these insights, in FM, value co-creation and relationship management are intertwined. The opportunities for FM suppliers to engage with their client’s value creation call for a professional and client-centric relationship management approach. As one of our interviewees stated, “the relationship is like an actual marriage and the do’s and don’ts are like those in an actual marriage: I would recommend the provider to stick to the promise he made (…) be honest, trustful and create partnership with the customer.” Only FM providers who are able to not only manage the agreed services and therefore support the primary activities, but also have expertise about efficient and successful relationship management with their customers will be able to outperform their competitors in a sustainable way.

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REFERENCES Berry, L. (2009), “Competing with quality service in good times and bad”, Business Horizons, Vol. 52, 309-317. Coenen, C., Alexander, K., and Kok, H. (2013), “Facility Management Value Dimensions from a Demand Perspective”, Journal of Facilities Management, 11, 4, 339-353. Coenen, C., von Felten, D., and Waldburger, D. (2012), “Beyond Financial Performance: Capturing Relationship Value in FM”, Jensen, P., van der Voordt, T., and Coenen, C. (Eds.). The Added Value of Facilities Management Concepts, Findings and Perspectives, Lyngby, Polyteknisk Forlag, 105-122. Coenen, C. and Cui, Y. (2013), Relationship Value in FM: A Customer Perspective, International Journal of Facilities Management, Special Issue EFMC2013, 9-24. Cui, Y. (2013), Relationship Value in FM: A Customer Perspective, Master Thesis, Zurich University of Applied Sciences. Dash, S., Bruning, E., and Guin, K. (2007), “Antecedents of Long-Term Buyer-Seller Relationships: A Cross Cultural Integration”, Journal of the Academy of Marketing Science, 11, 1-28. Dwyer, R., Schurr, P., and Oh, S. (1987), “Developing Buyer-Seller Relationships”, Journal of Marketing, 51, 2, 11-27. Eggert, A., Ulaga, W., and Schultz, F. (2006), ”Value creation in the relationship life cycle: A quasi-longitudinal analysis”, Industrial Marketing Management, 35, 20-27. EN European Norm (2006), Facility management - part 1: Terms and definitions, EN 15221-1, BSI, UK. Ford, D., Gadde, L.-E., Håkansson, H., Lundgren, A., Snehota, I., and Turnbull, P. (1998), Managing Business Relationships, London, John Wiley & Sons Ltd. Grönroos, C. (2008), “Service logic revisited: Who creates value? And who co-creates?” European Business Review, 20, 4, 298-314. Grönroos, C. (2011), “A service perspective on business relationships: The value creation, interaction and marketing interface”, Industrial Marketing Management, 40, 240-247. Gundlach, G., Achrol , R., and Mentzer, J. T. (1995), “The Structure of Commitment in Exchange”, Journal of Marketing, 59, 1, ,78-92. Jap, S. and Anderson, E. (2007), “Performance, Testing a Life-Cycle Theory of Cooperative Interorganizational Relationships: Movement Across Stages and Performance”, Management Science, 53, 2, 260-275. Laforest, J. (2009), Safety Diagnosis Tool Kit for Local Communities. Guide to Organizing SemiStructured Interviews With Key Informants, Québec: Institut national de santé publique du Québec. Liljander, V. and Strandvik, T. (1995), The Nature of Customer Relationships in Services, Swartz, T., Bowen, D., and Brown, S. (Eds.), Advances in Services Marketing and Management, Vol. 4, London: JAI Press Inc.

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Mishra, R. (2000), “A Generalized Model for the Structure of Business Relationship: A Metaanalysis of Relationship Literature”, Sheth et al., (Eds.), Customer Relationship Management: Emerging Concepts, Tools and Applications. New Delhi India, McGraw-Hill Publication Company Ltd. Moorman, C., Zaltman, G., and Deshpande, R. (1992), “Relationships between Providers and Users of Market Research: The Dynamics of Trust within and between Organizations”, Journal of Marketing Research, 29, 3, 314-328. Remenyi, D., Williams, B., Money, A., and Swartz, E. (1998), “Doing Research in Business and Management: An Introduction to Process and Method”, London: Sage. Robson, C. (2002), Real World Research, Oxford: Blackwell. Sánchez-Fernández, R. and Iniesta-Bonilla, M.Á. (2007), “The concept of perceived value: A systematic review of the research”, Marketing Theory, 7, 4, 427−451. Sarshar, M. and Pitt, M. (2009), “Adding value to clients: learning from four case-studies”, Facilities, 27, 9/10, 399-412. Saunders, M., Lewis, P., and Thornhill, A. (2009), Research Methods for Business Students, 5th Edition, Harlow, Pearson Publishing. Teas, R. (1994), “Expectations as a Comparison Standard in Measuring Service Quality: An Assessment of a Reassessment”, Journal of Marketing, 58, 1, 132-139. Ware, J., P. and Carder, P. (2012), “Raising the Bar: Enhancing the Strategic Role of Facilities Management, RICS Research”, available at: http://www.joinricsineurope.eu/uploads/files/17503RICSRaisingtheBarReport1_1.pdf (accessed November 12 2013). Wilson, D. and Jantrania, S. (1996), "Understanding the Value of a Relationship," Asia-Australia Marketing Journal, 2 (1), 55-66. Wilson, D. (1995), “An Integrated Model of Buyer-Seller Relationships”, Journal of the Academy of Marketing Science, 23, 4, 335-345. Yin, R. (2003), Case study research: Design and methods, 3rd Ed., Sage Publications Inc. Zeithaml, V. (1988), “Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence”, Journal of Marketing, 52, 3, 2-22.

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Relationship value and relationship quality in FM - Customers’ perspective Ying Ying Cui Institute of Facility Management, Zurich University of Applied Sciences Switzerland [email protected] +41 79 138 68 56 ABSTRACT Purpose – Facing the challenge to maximize business productivity and to reduce costs, companies (especially large size organizations) increasingly consider outsourcing non-core activities, which are mainly FM services. Customers (who purchase FM services) and suppliers (who provide FM services) thereby establish business relationships between organizations. This study aimed to adapt a model of buyer-seller relationship with an emphasis on supplier performance evaluation in the field of FM. The model was examined to explore the construct’s links with key constituents of relationship quality, i.e. satisfaction and trust. Theories – Facility management, relationship value and relationship quality constitute the fundamental theoretical background of this research. Design/methodology/approach – A two-stage research design was used. First, in-depthinterviews were conducted with six senior-level FM managers from large international companies in Switzerland. Second, quantitative data was gathered in Switzerland and several European countries from an on-line survey among FM managers from customer companies. Findings – The findings suggest that relationship value is an antecedent to relationship quality in FM. Relationship value displays a stronger impact on satisfaction than trust. Satisfaction positively influences trust. Originality/value – This research emphasizes the crucial role of relationship value in marketing in the field of FM. The two constituents of relationship quality (satisfaction and trust) can be taken as indicators to assess the business relationship in FM.

Keywords Facility management, Relationship value, Relationship quality, Outsourcing, Partial least squares (PLS)

1 INTRODUCTION Business-to-business relationships have been studied in the marketing field for few decades. According to Ulaga & Eggert (2006), companies from many business markets witness a strong trend towards closer relationships with their key suppliers. Along this trend, customers have invested in supplier performance evaluation tools and supplier development programs. It is

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beneficial to overall return on relationships if customers understand how to build and manage a portfolio of supplier relationships (Gummesson, 2002; Johnson & Selnes, 2004) Facility management (FM) provides supportive services to core businesses for companies (CEN, 2006), such as infrastructure maintenance, equipment maintenance, catering, etc. Facing the challenge to maximize business productivity and to reduce costs, companies (especially large size organizations) increasingly consider outsourcing non-core activities – FM (Maechling & Bredeson, 2005). Business relationship is thereby established between the customer companies and FM service suppliers. In the FM research field, business relationship is increasingly considered as an important research topic by academics. For example, dimensions of relationship value have been investigated and measured (Coenen & Cui, 2013). The current research aimed to adapt a model of buyer-seller relationship with an emphasis on supplier performance evaluation in the field of FM. The model was examined to explore the construct’s links with key constituents of relationship quality: satisfaction and trust. 2 LITERATURE REVIEW Facility management and key relationships CEN (2006) defines facility management as “integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities.” From the organization’s point of view, there are three key stakeholders: clients, customers and end users (CEN, 2006). Therefore, the key relationships are the relationships between these three key stakeholders and FM suppliers. CEN (2006, p. 5) defines client as “organization that specifies needs and procures facility services by means of an FM agreement”; it defines customer as “organizational unit that specifies and orders the delivery of facility services within the conditions of an FM agreement”. However, in business relationships with external FM suppliers, the roles of client and customer overlap, since both of them influence the buyer-seller relationship by specifying the needs and contacting the suppliers. Furthermore, in reality, the client and the customer are the same person in many companies, since there are no organizational units. Because this research focused on business buyer-seller relationships in FM. Customer is used in this research as a general term, meaning organization or organizational units, or people from demand side and who has influential position in selecting FM suppliers and who can assess the relationship with the supplier. CEN (2006, p. 8) defines the FM service provider as “the organization that is responsible for the delivery of one or more facility services”; and defined supplier as “the provider of a facility service or a product”. To reduce the complexity, this research uses supplier (a general term) as the external organization from supply side, who provides the customer with one or more facility services or products. Relationship value Relationship value has always been the fundamental base for all marketing activities (Holbrook, 1994). Market exchanges happen because all parties involved expect benefits after the exchange (Ulaga & Eggert, 2006). The higher the value received, the stronger the motivation to sustain the business relationship. Because the present study aimed to investigate from customers’ perspective, customer-perceived relationship value was the focus. According to Zeithaml (1988), customer value can be defined as the trade-off between the benefits (“what you get”) and the sacrifices (“what you give”).

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Ulaga and Eggert (2006) expanded the definition: “trade-off between the benefits and the costs perceived in the supplier’s core offering, in the sourcing process, and at the level of a customer’s operations, taking into consideration the available alternative supplier relationships”. Although customer-perceived value has been conceptualized under different assumption and perspectives, four general characteristics can be summarized: (1) Value is a subjective concept (Kortge & Okonkwo, 1993). (2) It is conceptualized as a trade-off between benefits and sacrifices (Zeithaml, 1988). (3) Benefits and sacrifices can be multifaceted (Grisaffe & Kumar, 1988). (4) Value perceptions are relative to competition (Gale, 1994). Relationship quality According to Bruhn (2002), relationship quality stands for the customer’s perception of the relationship and is defined as the ability of the supplier to fulfil the customer’s relational needs. Relationship quality is typically conceptualized as a higher-order construct, which is comprised several positive relationship outcomes that reflect the overall strength of a relationship (Smith, 1998). For example, Crosby et al. (1990) and Wray et al. (1994) suggested relationship quality should be composed of at least two aspects: trust and satisfaction. Trust Trust is one of the most widely accepted concepts in relationship marketing (e.g. Dwyer et al., 1987; Ganesan, 1994). According to Morgan & Hunt( 1994), trust means having confidence in the reliability and integrity of an exchange partner and a willingness to rely on this confidence. Trust is thought to be a building block or foundation for satisfactory interactions (Wilson, 1995). Satisfaction Customer satisfaction is widely accepted by researchers as a strong predictor for long-term business relationships (Ulaga & Eggert, 2006). Satisfaction is the emotional state that occurs in response to an evaluation of interaction experiences in relations to alternatives (Westbrook & Oliver, 1981). It serves to strengthen bonds of trust. Quality and value are distinct constructs (Iacobucci et al., 1995; Ostrom & Iacobucci, 1995); however, they have some common characteristics that make them hard to distinguish (McDougal & Levesque, 2000). Customers subjectively evaluate performance atributes based on a set of standards they observe when developing judgements on quality (Spreng & Mackoy, 1996). Similar to this, the perceived value of various alternatives is evaluated relative to a multi-atribute reference point (Powers & Dawn, 2008). According to (Ulaga & Eggert, 2006), relationship value is an antecedent to relationship quality. They found out that relationship value is positively correlated with relationship quality and directly affects satisfaction and trust. Satisfaction positively affects trust. The research therefore developed two hypotheses: H1: Relationship value positively affects relationship quality. H2: Greater satisfaction leads to greater trust. The research adapted a model of relationship quality and examined the two hypotheses in the FM field (see section 4). 3 METHODOLOGY Sampling procedure Several steps were taken to develop the survey instrument. In a first step, depth-interviews were conducted with six senior-level facility managers from different international companies in eastern Switzerland. The participating companies were active in various industries, such as pharmaceutical, agriculture and financial service. They purchased various FM services from

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external suppliers. The participants had a direct relationship with their FM suppliers and an average 10 years’ experience in this kind of business relationship. The interviews lasted from 60 to 90 minutes. In a second step, construct definitions and a list of items addressing each constructs’ underlying dimensions were developed based on the analysis of previous interviews and a review of existing literature. In a third step, a questionnaire prototype was developed. The survey instrument comprised three parts. In the first part, participants were asked to provide general information about their companies. The second part contained items for evaluating the relationship constructs. All items used seven-point rating-scales (1 = “strongly disagree “; 7 = “strongly agree”). In the third part, participants were invited to respond to a set of questions describing themselves and the supplier relationship. Finally, the prototype was submitted to three facility managers to ensure that respondents correctly understand the directions and questions in the questionnaire. The online questionnaire was sent to companies in Denmark, Germany, the UK and Switzerland that outsourced FM services. The participants were selected from members of IFMA, FM Alumni Switzerland, CFM Denmark, and personal contacts. The questionnaire targeted on senior level FM customers in order to have high validity and reliability in the result. It required the person “who has the direct relationship with the FM supplier and can assess their relationship” to answer the questionnaire. Some people, who wanted to participate the survey; however, they didn’t fulfil the requirement, they had to leave it. This requirement filtered out a large number of respondents (this affected the response rate). Overall, 478 e-mails with the online questionnaire were sent to targeted participants. Within six weeks, 60 respondents completed the questionnaire (response rate: 12.55%). Sample and respondent characteristics From the returned questionnaire, six responses came from Denmark, three from Germany, two from the UK, 47 from Switzerland and two from other countries. The respondents were from different industries and held senior positions in their companies. They had an average of eight years’ experience in this position and an average of 6.9 years in a relationship with their FM suppliers. All 60 respondents were taken into the quantitative analysis, although 11 of them from other countries. Because they were all European countries and the 11 companies are international; most of them have branch offices in Switzerland. 4 ANALYSIS AND RESULTS For initial exploratory analysis, several steps were taken to assess the reliability, validity, and dimensionality of the relationship constructs. After that, the conceptualized model of relationship quality in FM was measured and visualized. The analysis used SPSS (statistical analysis), AMOS and SmartPLS 2.0. software. AMOS enables researchers to specify, estimate, assess and present models to how hypothesized relationships among variables. Models can be established and analyzed in SmartPLS 2.0. The software accurately deals with regression analysis between variables. Table 1 shows the items and formulations for the relationship quality model. Table 1 Items and Formulations

Item

Item formulation

Relationship value 1

Compared to the price we pay, we get reasonable quality from our current FM supplier. 194

13th EuroFM Research Symposium Relationship value 2 Relationship value 3 Satisfaction 1 Satisfaction 2 Satisfaction 3 Trust 1 Trust 2 Trust 3

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Compared to the quality we get from our current FM supplier, we pay a reasonable price. The relationship with our current FM supplier delivers us superior net-value. Our company regrets the decision to do business with our current FM supplier. Our company is very satisfied with our current FM supplier. Our company would still choose to use our current FM supplier if we had to do it all over again. Our current FM supplier keeps promises it makes to our company. Our current FM supplier is genuinely concerned that our business succeeds. Our current FM supplier considers our welfare as well as its own when making important decisions.

Firstly, reliability analysis was conducted to test whether the different items, which represented the measure of one variable, could indeed be combined within one scale (Field, 2010). With the help of SPSS, Cronbach’s alpha indicated overall high reliability of the questionnaire. As Table 2 showed values of Cronbach’s alpha were approximately 0.69-0.78 (Field, 2010). Table 2 Reliability Test

Cronbach’s α Valid N (Total 60) N of items

Relationship value 0.75 55 3

Satisfaction 0.78 56 3

Trust 0.69 50 3

Before testing the model of relationship quality (Figure 1), confirmatory factor analysis was applied by using SmartPLS 2.0. Partial least squares (PLS) analysis was employed to explore the links between relationship value and relationship quality. An overall goodness-of-fit cannot be reported for the model of relationship quality because the objective of PLS analysis is prediction versus fit. This is the characteristic of PLS analysis method. It doesn’t influence the reliability of the result (Fornell & Bookstein, 1982). The adapted model has been studied in marketing field. The purpose of this research was to investigate the relation between relationship value and relationship quality in the FM field. The scale of the model is shown in Table 3. Factor loading, t-value, average variance extracted (AVE) and coefficient alpha indicated that the framework of relationship quality had an acceptable level of convergent validity (Chin, Marcolin, & Newsted, 2003). Table 3 Scale Properties of Relationship Quality Item Relationship value1 Relationship value2 Relationship value3 Satisfaction0*

Factor loading

t-value

Average variance extracted

Coefficient alpha

0.94 0.94 0.70 0.80

33.60 44.60 4.78 5.52

75%

0.83

78%

0.86

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41.84 31.97 12.96 5.50 7.32

65%

0.74

Note: satisfaction0* is recoded from satisfaction1 by SPSS. Correlations between items of relationship value, satisfaction and trust were computed using the Pearson correlation analysis (SPSS). This analysis is to verify the convergent and discriminant validity. Table 4 shows the correlations between the individual items.

Table 4 Pearson Correlations between Items in Relationship Quality Construct Construct 1 Relationship value1 2 Relationship value2 3 Relationship value3 * 4 Satisfaction0 5 Satisfaction2 6 Satisfaction3 7 Trust1 8 Trust2 9 Trust3

1

2

3

4

5

6

7

8

0.89 0.47 0.62 0.73 0.70 0.71 0.40 0.38

0.47 0.66 0.76 0.77 0.70 0.40 0.47

0.35 0.52 0.52 0.37 0.41 0.39

0.64 0.56 0.47 0.16 0.28

0.79 0.74 0.40 0.49

0.62 0.40 0.39

0.30 0.43

0.74

*

Note: satisfaction0 is recoded from satisfaction1 by SPSS. Correlations are between the items of relationship quality; minimum significance of correlation is 0.05 (2-tailed). Estimation of measurement and structural models more rigorously assessed validity of constructs in the relationship quality was analyzed by AMOS. Table 5 shows the information for judgment of convergent validity of relationship value, satisfaction and trust. The first column indicates the paths in the measurement model corresponding to the paths showed in Figure 1. The next columns show the covariance and its standard error for each path. The critical ratio that follows these is the ratio of the covariance to the standard error. The “p-value” then gives the probability of such a “critical ratio” occurring. The last column provides the correlation between the constructs as generated in AMOS. The information in table 5 shows that the variances for the paths from the relationship quality construct are all significant at p < 0.05, and they correlate at greater than 0.5 with each other. There are good indications of convergent validity of the construct in relationship quality.

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Table 5 Convergent Validity of Relationship Quality Path

Covariance

Standard error (SE)

Critical ratio

p-value

Correlation

Relationship Value  Satisfaction Relationship Value  Trust Satisfaction  Trust

1.35

0.42

3.24

0.001

0.91

0.97

0.35

2.77

0.006

0.59

1.85

0.54

3.45

***

0.61

Note: *** indicates the probability of occurrence of the critical ratio is less than 0.001. Bootstrapping in SmartPLS 2.0 assessed discriminant validity. Two-hundred replications calculated the correlations between the constructs of relationship quality, as shown in Table 6. The last two columns show the mean ± 2× standard errors (SEs) for each pair of constructs. None of these value ranges overlap the value of 1, supporting discriminant validity of the constructs in the model (Anderson & Gerbing, 1988). Table 6 Discriminate Validity of Relationship Quality Bootstrapped correlation between Relationship Value  Satisfaction Relationship Value  Trust Satisfaction  Trust

Mean of bootstrapped correlation

Standard error (SE)

T statistics

Mean plus 2xSE

Mean minus 2xSE

0.83

0.06

14.14

0.95

0.71

0.72

0.10

7.48

0.92

0.52

0.28

0.14

1.82

0.56

0.00

From the output of SPSS, FM customers were quite satisfied with their current suppliers (M = 4.44, SD = 1.08). The customers also trusted their current FM suppliers (M = 5.41, SD = 1.27). Satisfaction and trust indicated that the relationship between the customers and their current suppliers was very well (M = 4.92, SD = 1.01). This result provided the basis for further correlation analysis between relationship quality and relationship value. The model assessed the relation between relationship quality and relationship value in the FM field and verified the two hypotheses, which were formulated in section 2 (see p. 3). The final results were computed by SmartPLS 2.0 and shown in Figure 1. The variance explained (R2) in endogenous constructs is 71 per cent for satisfaction and 53 per cent for trust. The relationship value is positively correlated with relationship quality. With a standardized path coefficient of 0.84, relationship value has the strongest impact on satisfaction. And its direct impact on trust has a lower standardized path coefficient of 0.49. Satisfaction positively affects trust (standardized path coefficient r = 0.26).

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Figure 2 C Conceptual M Model of Rellationship Q Quality in FM M

Therefoore, the resuults of measuring thee relationshhip quality model connfirmed the first two hypotheeses. Relatioonship valuue positively affects reelationship quality andd greater saatisfaction leads to greater trusst. The reseearch applieed PLS techhnique in thhe final regrression analysis. The PLS analysiss is a nonparamettric methodd. The generral idea of PLS is to eextract the latent factoors, accounting for as much off the manife fest factor vaariation as possible p whhile modelinng the respoonses well (Fornell ( & Cha, Paartial least ssquares, 19994). The ressearch aimedd to examinne the existiing knowleddge in the FM fielld, trying too find the caausal relatioon between relationshipp value andd relationshiip quality. The oveerall goal off conductingg PLS was to measuree the relationn between vvariables annd explore potentiaal trends in tthe FM fieldd. 5 C CONCLUS SION The rellationship quality q bettween the customers and the F FM suppliers was asssessed by satisfacttion and truust. The reesult indicatted a good relationship r p between thhe customerrs and the externall FM supplliers. The result r has a number of o implicatioons for theories, as w well as for practitiooners: customers and FM M supplierss. Theorettical impliccations As exam mined in thiis research, satisfactionn and trust can be adopted to evaaluate the reelationship quality between a customer aand a FM supplier s (frrom custom mers’ perspeective). Based on the model oof relationsship qualityy in FM (F Figure 1), reelationship value can be an anteecedent to relationship qualityy. Relationsship value positively influences relationshipp quality. In I another word, thhe higher cuustomers peerceive the relationshipp value, thee better relaationship quuality they have wiith the FM ssuppliers. Manageerial impliccations Althouggh the reseaarch took the t customeer perspectiive, both cuustomers annd FM supppliers can benefit from the reesults to undderstand thee relation beetween relattionship quality and reelationship value. A Assessing thhe satisfaction and the trust of cusstomers couuld help the buyers andd sellers of FM servvices to finnd out the quality situuations of their t busineess relationsships. Basedd on this, customeers and supppliers can fuurther identify opportunnities for impprovement oof their relaationships. Especiaally for FM suppliers, ccontinuouslly examininng the qualiity of their business reelationship with thee customerss could prollong the buusiness coopperation. Byy doing thiss, FM custoomers will

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perceive that they are considered as important. Consequently, they will have the confidence of their suppliers. As the relationship value is an antecedent to relationship quality, the more benefits customers can achieve from the relationship, the better quality of the relationship they will perceive. The customer perceived relationship value can increase their satisfaction and trust on the FM suppliers. If the customers are satisfied with the relationships, they will also trust their FM suppliers. Further research This research provides basis for further in-depth investigation in the study of relationship value and relationship quality in FM. The model of relationship quality (Figure 1) comprises satisfaction and trust. Recent marketing studies construct the model with also commitment (e.g. Smith, 1998; Ulaga & Eggert, 2006). Therefore, a next step could include commitment in the model to test the correlations. In this research, how does relationship value affect relationship quality and how does satisfaction infuence trust were examined (see the two hypothesis and the model). Further research could analyse the other affect direction to analyse whether relationship quality positively affects relationship value, and whether greater trust leads to greater satisfaction. It might be also interesting to analyse the outcome of the relationship quality to see whether FM customers would like to enlarge the scale of outsourced FM services or tend to change the current suppliers. For example, adding expansion and leave in the relationship quality model to analyse the corelation between the relatioship quality (satisfaction and trust) and the outcome (expansion and leave). REFERENCES Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: a review and recommend two step approach. Psychological Bulletin, Vol.103 No.3, pp. 411-423. Bruhn, M. (2002). Relationship marketing - management of customer relationships. Harlow: Pearson Education. CEN. (2006). Facility management - part 1: Terms and definitions, EN 15221-1. UK: BSI. Chin, W. W., Marcolin, B. L., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information Systems Research, pp. 189217. Coenen, C., & Cui, Y. (2013). Relationship value in FM: A customer perspective. International Journal of Facilities Management. Crosby, L. A., Evans, K. A., & Cowles, D. (1990). Relationship quality in services selling: an interpersonal influence perspective. Journal of Marketing, Vol. 54 No. 3, pp. 68-81. Dwyer, F. R., Schurr, P. H., & Oh, S. (1987). Developing buyer-seller relationship. Journal of Marketing, Vol. 51 No.2, pp. 11-27. Field, A. (2010). Discovering statistics: using SPSS. London: SAGE. Fornell, C., & Bookstein, F. L. (1982). A comparative analysis of two structural equation models: LISREL and PLS applied to market data. In C. Fornell, A second genergation of multivariate analysis (pp. 289-232). New York: Praeger Publisher.

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The Path to Excellence: integrating customer satisfaction in productivity measurement in Facility Management Arno Meerman Münster University of Applied Sciences [email protected] +49 251 20 80 39 81 Vanessa Lellek Münster University of Applied Sciences [email protected] +49 251 83 65 460 David Serbin Münster University of Applied Sciences [email protected] +49 251 20 80 39 83 ABSTRACT This paper addresses the challenge of including customer satisfaction in the productivity measurement process in Facility Management (FM). Following an initial literature review, two focus groups, namely a Student Group as well as an Academic Group have been put in place to extend Bernhold et al.'s (2012) productivity measurement process by adding a 'customer satisfaction component'. The adapted model integrates several concepts, such as SERVQUAL, the NPS and CLV. As a result, the paper presents a new way how FM firms can integrate the measurement of customer satisfaction in their productivity measurement process.

Keywords Customer Satisfaction Measurement, Productivity Measurement, NPS, SERVQUAL, CLV 1 INTRODUCTION There is little known on productivity measurement in service organizations, more specifically in FM (Johnston & Jones, 2003). As services have high heterogeneous characteristics, the measurement of productivity in service industries (incl. FM) offers a wide range of complications (Baumgärtner & Bienzeisler, 2006). The Service Productivity Measurement Model (SPMM) of Bernhold et al. (2012) measured productivity in FM mainly through tangible monetary factors (e.g. revenues, labor costs, product costs) as well as the amount of (and costs induced by) reclamations and complaints. Several studies (e.g. Vuorinen et al., 1998) also vouched for the inclusion of customer satisfaction measurement mechanisms in a productivity measurement model, as without the integration of customer satisfaction, the level of productivity

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will be incomplete and not fulfill its initial purpose: control (e.g. Anderson et al., 1997; Drucker, 1954). This paper aims to contribute to addressing the above mentioned challenge by integrating the ‘customer satisfaction component’ in the productivity measurement process. We will set out the challenges in productivity measurement in the service industry, as well as the complexity of customer satisfaction measurement which includes selecting the right measures (e.g. Net Promoter Score, SERVQUAL) and understanding their importance as well as the influence of the customer lifetime value (CLV) on the productivity measurement and cost reduction. To achieve this, theory on both productivity and customer satisfaction measurement is combined with the results of two focus groups, resulting in a modified SPMM. 2 THEORY This chapter provides the results of a literature review on the two parent theories involved in this research, namely productivity measurement and customer satisfaction. More precisely, the following section will provide a foundation for measuring productivity and presents the SPMM by Bernhold et al. (2012). The subsequent section details the concept of customer satisfaction as well as different approaches related to its measurement (e.g. customer retention, NPS and SERVQUAL) 2.1 Productivity measurement The economic definition of the classical productivity term refers to the measurement of production factors and the determination of the relationship between production results and used resources (Dellmann & Pedell, 1994). According to this definition productivity is to be understood as a quantitative yield of the transformation process based on the ratio of process output and input (Sink, 1985). The productivity ratio is thus an indicator for assessing and monitoring the company’s performance based on its production processes (Corsten & Gössinger, 2009). It is used in order to identify poor production processes, which contain a sub-optimal use of resources, and to replace those with alternatives that lead to better economic results (Dellmann & Pedell, 1994). Productivity measurement of services is closely related to the classical understanding of productivity, though transferring the concept from manufacturing industry to services remains difficult due to the different characteristics of goods and services (Baumgärtner & Bienzeisler, 2006; Grönroos & Ojasalo, 2004,; Johnston & Jones, 2004). Another challenge for the development of a service productivity concept and the design of a consistent measurement model is the distinction between services (Bernhold, 2010; Corsten & Gössinger, 2007). Services have very heterogeneous characteristics, making it difficult to identify the significant productivity factors and their specifications (Baumgärtner & Bienzeisler, 2006). But in general service productivity is mostly seen as the classical input-output relation which is added by further service quality dimensions referring to the achievement of a particular service aim. (Grönroos & Ojasalo, 2004; Johnston & Jones, 2004) Service productivity in FM can be measured by using the SPMM by Bernhold et al. (2012). In transferring the SPMM into a process model, the input as internal production factors is first precombined by the service provider and then transferred to the primary service output. After the delivery of services a quality check is following referring to the assessment of the productrelated technical quality. This can be done internally by the service provider in counting and assessing quality gaps or externally by customers measured in incoming complaints. The latter is divided into a technical quality assessment based on the number of complaints which refer to

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variationns from thee contractually agreed sservice quallity and a heedonic quallity assessm ment which is basedd on the num mber of com mplaints due to the custoomers perceived servicee quality. In both ways, whether the quaality is checcked internaally or exteernally, bad quality results cause additionnal inputs ffor rectifyinng the servvice results. But theree lies a diffference in incoming complaiints: if the service qualiity is varyinng from the contractual agreed servvice result, the t service providerr is legally forced to ccorrect the quality gaps; if the inccoming com mplaint is bbased on a subjective assessmeent of qualiity failures, it depends on the servvice provider whether hhe’s acting on goodd will and reeworking thee expected sservice resuult. Since thhe rectificaations of coontractual aand subjectiive complaiints cause additional effort e and expensees for servvice provideers, they hhave to be consideredd as additiional inputts for the determinnation of service prooductivity. Therefore the measurrement of service prroductivity includess all requireed inputs upp to the finaal completioon of the seervice, meaning until all a deficits that havve been com mplained aboout are proccessed. The input of thee initial prodduction of thhe service and the additional iinput due to processed complaints c have to be iincorporatedd in the calcculation of service productivityy and relateed to the quuantitative seervice outpuut. As a ressult, the meaasurement o dynam mically, wheereas the serrvice producctivity scoree has to be of servicce productivvity has to occur computeed at particuular time inttervals, so that t service productivityy remains comparable over time. The servvice productivity score in the SPM MM consists of quantitattive output iin relation tto the total input of the contrractual agreeed service delivery, including aall additionnal input foor acts of wing figure generosity. The desscribed proccess of prodductivity meeasurement is shown inn the follow

(Figure 1). Figuree 1: SPMM based b on Beernhold et aal. (2012) C Customer ssatisfaction n and its meeasurementt 2.2 This secction is foccused on thhe second pparent theorry of this reesearch – ccustomer saatisfaction. Startingg with a disccussion of different d view wpoints andd highlightinng the mostt prevalent m model, the main paart of this section is on relatedd concepts which can be used to t measure customer satisfacttion. 2.2.1. C Customer satisfaction Custom mer satisfacttion can bee defined aas either ann outcome or as a prrocess (Hahhn, 2002). Outcom me-oriented ddefinitions focus on saatisfaction aas the outcom me of an evvaluation prrocess; for examplee “the buyeer’s cognitiive state off being adeequately or inadequateely rewardeed for the sacrificees he has unndergone” (H Howard & S Sheth, 1969, p. 145). Compared to this, processs-focused 203


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b develooped aroundd the activiities whichh result in satisfactionn, such as definitioons have been perceptuual, evaluatiive and psycchological pprocesses, as referred too by Vavra (1997). ( The moost prevalentt model on customer satisfaction iis the custoomer satisfacction / dissaatisfaction model (CS/D) ( whicch defines ssatisfaction as the “outtcome of a complex innformation pprocessing process”” (Herrmannn et. al., 11997, p. 1000) in whicch customerrs evaluate their satisffaction by compariing the suubjectively perceived performancce of the product oor service with the perform mance they expected before the pproduct or sservice wass bought (V Vavra, 19977; Gerson, 1994). 2.2.2. Concepts C rellated to custtomer satisffaction Custom mer Retentionn Custom mer retentionn entails the entire lifetiime of conttact with a ccustomer. Itt is not limited to just providinng the custoomer with thhe desired pproduct and service to tthe expectedd level of quuality, but also enttails principples such ass CRM and marketing (e.g. Blattbberg et al., 22001; Thom mas 2001). Custom mer retentionn plays an important rrole when it i comes too business ssuccess, as stated by Flemingg and Aspluund (2007), engaged cuustomers geenerate 1.7 ttimes more revenue thaan regular (non-retturning) cusstomers. Tuurning existiing customeers in promooters of the facility maanager can also redduce staff coosts. For m more than 300 years, cusstomer satisfaction has played a key k role in marketinng and achiieving finanncial growthh for a comppany (Forneell 1992), acccording to Reichheld (2003) hhowever, finnancial grow wth is achieeved rather through proomotion andd recommenndation by customeers than soleely customeer satisfactioon. Custom mer Lifetime Value A profittable custom mer is “a perrson, househhold, or com mpany whosse revenues over time eexceed, by an acceeptable amoount, the coompany cossts of attraccting, sellingg, and servvicing that ccustomer” (Kotler & Armstronng, 1996, p. p 52). The pprofitabilityy of a singlee customer iis also labellled as the CLV i.ee. “the pressent value oof all the fuuture cash fflows attribuuted to a cuustomer relaationship” (Pfeifer & Bang, 22005, pp. 448-66). The investmentts made in a specific customer nneed to be outweigghed by the future revennues generaated by this customer (i.e. ROI). Decision D cann be based on the height h of thee CLV, how wever, even with a posiitive CLV, a company still has to decide on how to most effecttively invesst its budget to increasse its ROIs.. Venkatesaan and Kum mar (2004) defined the calculattion of CLV V as follows:

mer CLVi = lifetime vallue of custom CMi,y = predictedd contributtion operatting margin of customerr i in purchaase occasionn y, measureed in € r = discoount rate forr money ci,m,l = unit u marketiing cost forr customer i in channel m in year l

xi,m,l = numbber of contaacts to custtomer i in cchannel m inn year l ffrequency = predicted purchase frequency ffor customerr i n = number of o years to fforecast

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The CL LV calculatioon by Venkkatesan and Kumar (20004) has beeen selected as it offers a generic interpretation of C CLV. One can make the calculaation of thee CLV as complex as desired. Howeveer, more coomplicated CLVs alsoo severely ccomplicate the practiccal applicatiion of the SPMM. SERVQ QUAL In the 1980’s 1 theree was an inncrease of ffocus towardds the quality of the products p andd services produceed and its coontribution to t efficiencyy and produuctivity (Phiilips et al., 11983), severral studies have shown that quuality plays a large rolee in future bbuying behaaviour and customer saatisfaction ml, 1988; B Bolton & Drrew, 1991). Parasuramaan et al. (19988) developped the SER RVQUAL (Zeitham model, also a referredd to as the G GAP Modell. This model is a 22-item measureement instruument that allows tthe user to aaccess to thhe perceptioon of custom mers on the quality of services. s Thhese items can be aassigned to five dimenssions, later also referreed to as the RATER M Model (Zeithaml et al., 1990), being b reliabiility, assurannce, tangiblles, empathyy and responnsiveness.

Figurre 2: Gaps Model M of Seervice Qualiity (Parasurraman et al., 1988) The SE ERVQUAL questionnnaire entailss a doublee-measurem ment system m, resultingg in two statemennts of the rrespondent, with on onne hand 'how w-it-should--be', and onn the other 'how-it-is'. The respponses are valued on a Likert scaale of 7 (completely aggree) to 1 (ccompletely disagree). The diffference bettween the rresponse onn the 'percepption scale' and the 'expectation scale' can result inn a service parameter value betw ween -6 andd +6. The hhigher the value, v the hhigher the perceiveed service quality q in resspect to the single serviice parameteers (Babakuus.& Mangoold, 1992). Net Proomoter Scorre The NP PS is a meassurement meechanism too measure a customer’ss feelings annd thinking towards a moter Systeem, 2013). It I measures the relationnship between the ‘provvider’ and companny (Net Prom its ‘custtomer’ in rrespect to loyalty, l profit and passsion. The NPS N is exppressed in ddetractors, passivess and prom moters, rankeed on a scaale of -100 to +100. W Where the single promoter score

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focussess on a singlle client, thee NPS is caalculated byy detracting the % of prromoters byy the % of detractoors (Fredericck Reichheldd, 2003).

Figure 3: NPS N (Focus Arrow, 2013) The NPS is measurred by a singgle questionn: “ “How likelyy is it that yoou would reccommend C Company X tto a friend oor colleaguee?” With those that ansswered betw ween 0 and 6 being cateegorized as ‘Detractorss’ (i.e. negattive worth o the compaany, brand of moutth), 7 to 8 beeing ‘Passivve’ and 9 to 10 being laabeled as ‘Prromoters’ of or produuct/service. 3 RES SEARCH D DESIGN In order to integraate customeer satisfactiion and rellated conceppts in the existing productivity measureement proceess (see figuure 1), focuss group reseearch was iddentified as the most apppropriate method.. A focus group g can bee regarded as a “Careffully planneed discussioon designedd to obtain perceptiions on a defined arrea of interrest in a ppermissive, non-threattening enviironment.” (Kruegeer, 1988, p. 18). The usaage of focuus group ressearch was justified byy two prim mary reasonss. First, botth the FM sector as a well as tthe conceptts of producctivity and customer ssatisfaction measuremeent can be regardedd as rather complex soo that it is hhard for an individual to capture the t entire complexity e.g. the large set oof different stakeholderrs in FM, the t innovatiion taking pplace in this industry (Mudrakk et al., 2005) and the t compleexity involvved in the multi-dimeensional cooncepts of productiivity measuurement andd customer satisfaction. As it is diifficult for a single inddividual to take all these conceepts into acccount, a form m of interacction througgh a group oof people waas deemed crucial. Second, inn addition too managing the compleexity of thee research seetting, it waas seen as crucial tto bring toggether peopple with diffferent backggrounds in order to finnd theoreticaally valid, but alsoo practical soolutions forr integratingg customer ssatisfaction in the produuctivity meaasurement process in the FM ssector. were set up. The first group (herreafter nameed “Student Group”) As suchh, two focuus groups w consisteed of 12 B Bachelor stuudents curreently studyiing businesss at one oof Germanyy’s largest universiities of appplied sciennces. The ssecond grouup (hereaftter named “Academicc Group”) consisteed of 4 academics who are involvedd in FM research and/oor business rresearch. The Stuudent Grouup undertoook a 4 day long workkshop (Octoober 2013) aiming too integrate customeer satisfactioon in the SP PMM. Sincee the studennts had not or o only margginally beenn involved in FM, pproductivityy measurem ment and cusstomer satisfaction, the group was expected too critically questionn the integrration of thee three aspeects. While the lack off experiencee of the stuudents was regardedd as a valuaable factor iin the creatiion of a new w productivvity model, it i was seen as crucial to also include i a ‘rreview comm mittee’ which overlookks the proceess and the rresults of thhe Student Group and highligghts challennges respecctively givees directionn. This role was takeen by the ‘Academ mic Group’ which met on the first and third daay of the woorkshop to uundertake thhis review. Both the Student aas well as thhe Academ mic Group w were moderaated by an eexperiencedd statistics and marrket researchh lecturer off the busineess departmeent of the unniversity whhere the reseearch took 206


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place. While the lecturer has actively influenced the Student Group by giving feedback to their individual questions, his primary role was to moderate each focus group meeting and transfer the results from the Student Group to the Academic Group and vice versa. 4

RESULTS

Both the Student as well as the Academic Group used the SPMM by Bernhold et al. (2012) as a starting point, and have identified central concepts in customer satisfaction research (see section 2.2.) and combined these in order to further advance the SPMM by integrating a customer satisfaction perspective. This section presents the two main results from the research, namely the extended SPMM (figure 4 and 5) and a two-step measurement approach for surveying customer satisfaction amongst FM customers. 4.1 The extended SPMM The original SPMM, concentrates solely on the financial aspects of reclamation and complaints and resolving these based on a customer rating. The diagram has been adjusted by adding a ‘customer satisfaction measurement’ pathway. The measurement of customer satisfaction makes an indirect contribution to the monetary output (i.e. increase of revenue through customer retention), and indirectly reduces the monetary input (i.e. reduction of costs through efficient management of complaints). Through improving customer retention, and decreasing a negative NPS, future input (through customer acquisition and positive marketing) is reduced or can be spent more effectively. The process itself has been extended through surveying important customers (based on CLV as the customer rating factor in the SPMM), and customers whose complaints have been resolved (which includes all customers). The focus groups vouched for excluding customers whose complaints have not been resolved. As not every complaint will be resolved (depending on the complaint and the CLV), surveying those customers whose complaints have not been resolved, does not serve a clear purpose from a practical perspective. The results of the surveys are included in the analysis stage, and result in a quality index as well as a NPS index which will then be included in the productivity calculation. Both indexes can affect the productivity, e.g. a low quality perception might make the customer leaving, or a low NPS index might result in negative Word of Mouth (WOM). On the contrary, a high NPS might result in recommendations of the service to potential new customers, which can be considered as a positive output in the “input-output relation” (section 2.1). 4.2 Measurement approach As surveying customers can be an expensive procedure, a two-step surveying method is suggested with at first solely surveying the NPS of the customer to measure the level of WOM. Respondents with a positive WOM will not be further surveyed, however the remaining respondents will be further analyzed using the SERVQUAL method. As in the industry of FM similar services are provided on a daily basis, a survey after each service provision will result in extensive costs and/or time for the provider as well as for the client. Therefore only important customers (from the provider’s perspective) and complaintives will be surveyed measuring their perspective on the service provider and measuring their customer advocacy towards the service provider. According to the variant stakeholders in FM it is important to differentiate between respondents during the measurement of customer satisfaction: practitioners of the German FM sector remarked within a workshop where the extended SPMM has been presented, that this measurement approach should be addressed either to principals or user of buildings, depending on the survey and announced information scope.

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Figure 5: Customer Satisfaction in SPMM

Figure 4: Adjusted SPMM based on Bernhold et al. (2012)

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6 CONCLUSION Customer satisfaction can make a large contribution to productivity measurement in FM. The model of Bernhold et al. (2012) has been adjusted and expanded by incorporating customer satisfaction into the equation. The inclusion of customer satisfaction and CLV in the SPMM model offers the opportunity to a more effective and efficient method for resource allocation, in the end, leading to a higher customer retention rate of those customers that are identified as essential based on their CLV. Additionally, a regular measurement of the NPS, leads to a deeper insight in the current WOM level of the individual customers, thereby allowing the service provider to more effectively manage the WOM level on a short-term basis. Measuring customer satisfaction amongst customers allows a service provider to make strategic decisions in respect to resource allocation (i.e. which complaints to resolve) and customer relationship management. Acknowledgements The German Federal Ministry of Education and Research funded this work in the scope of the research project ProMIse, promotion sign 01FL10059. In addition, we gratefully acknowledge the support provided by the project management agency German Aerospace Center (PT-DLR). We also thank the whole research team (see www.projekt-promise.de) for the great collaboration in developing the presented results. References Anderson, E. W.; Fornell, C.; Rust, R. T. (1997): Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services. Marketing Science. Vol. 16-2, pp. 129145, Babakus E.; Mangold W. G. (1992): Adapting the SERVQUAL scale to hospital services: an empirical investigation. Health Services Research 26:6, pp. 767-786 Baumgärtner, M.; Bienzeisler, B. (2006): Dienstleistungsproduktivität. Konzeptionelle Grundlagen am Beispiel interaktiver Dienstleistungen. Stuttgart: Fraunhofer-IRB-Verl. Bernhold, T. (2010): Sourcing-Strategien für öffentliche Auftraggeber in der Beschaffung facilitärer Dienstleistungen. Eine empirische Analyse unterschiedlicher institutioneller Arrangements aus institutions-ökonomischer Sicht. Marburg: Tectum-Verl. Bernhold, T.; Kaling, N.; Lellek, V. (2012): Productivity Measurement Model - A Holistic Approach For Services. - In: Proceedings of the 11th EuroFM Research Symposium, 24.-25. May 2012 in Copenhagen, Denmark, In: Junghans, A.; Jensen, P. A. (Editors). Lyngby: Polyeknisk Forlag 2012, pp. 20-30. Blattberg, R.; Getz, G.; Thomas, J. S. (2001): Customer Equity: Building and Managing Relationship as Assets. Harvard Business School Press. Bolton N. R.; Drew, J. H. (1991): A multistage model of customer assessment of service quality and valueǁ Journal of consumer research, 17, March, pp. 375-384. Corsten, H.; Gössinger, R. (2007): Dienstleistungsmanagement. 5., vollst. überarb. und wesentlich erw. München u.a: Oldenbourg. Corsten, H.; Gössinger, R. (2009): Produktionswirtschaft. Einführung in das industrielle Produktionsmanagement. 12., vollst. überarb. und erw. München: Oldenbourg. Dellmann, K.; Pedell, K. L. (1994): Controlling von Produktivität, Wirtschaftlichkeit und Ergebnis. Stuttgart: Schäffer-Poeschel. Drucker, P. F. (1954): The Practice of Management. New York, Harper and Row.

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Flemming, J. H.; Asplund, J. (2007): Human Sigma: Managing the Employee-Customer Encounter. Gallup Press. Fornell, C. (1992): A National Customer Satisfaction Barometer: The Swedish Experience. Journal of Marketing 56:1, pp. 1-18. Gerson, R.F. (1994): Measuring Customer Satisfaction, London. Grönroos, C.; Ojasalo, K. (2004): Service productivity. Towards a conceptualization of the transformation of inputs into economic results in services. Journal of Business Research 57, pp. 414-423. Hahn, C.H. (2002): Segmentspezifische Kundenzufriedenheitsanalyse, Wiesbaden. Herrmann, A.; Huber, F.; Gustafsson, A. (1997): From Value-Orientated Quality Improvement to Customer Satisfaction. A Case Study for Passenger Cars., in: Johnson;Herrmann;Huber;Gustafsson (1997), Customer Retention in the Automotive Industry. Quality, Satisfaction and Loyalty., p. 93-115. Howard, J.A.; Sheth, J.N. (1969): The Theory of Buyer Behaviour, New York. Johnston, R.; Jones, P. (2004): Service Productivity. Towards understanding the relationship between operational und customer productivity. International Journal of Productivity and Performance Management 53:3, pp. 201-213. Kotler, P.; Armstrong, G. (1996): Principles of Marketing, 7th edition, New Jersey: Prentice Hall Inc. Krueger, R. A. (1988). Focus groups: A practical guide for applied research. Newbury Park, CA: Sage. In Gall, M. D., Borg, W. R., and Gall, J. P. (1996). Educational Research. White Plains, NY: Longman Publishers USA. Mudrak, T.; van Wagenberg, A.; Wubben, E. (2005) Innovation process and innovativeness of facility management organizations. Facilities, Vol. 23-3/4, pp.103 - 118. Bain & Company (n.d.) Net Promoter System. available at: http://www.netpromotersystem.com [accessed 23 November 2013] Focus arrow (n.d.) Net Promoter Score. available at: http://www.focusarrow.com/net-promoterscore/ [accessed 11 November 2013] Parasuraman, A.; Zeithaml, V. A.; Berry, L.L. (1988): SERVQUAL: a Multiple Item Scale for Measuring Consumer Perceptions of Service Qualityǁ. Journal of Retailing, 64, Spring, pp. 2643. Pfeifer, P. E.; Bang, H. (2005): Non-parametric estimation of mean customer lifetime value. Journal of Interactive Marketing, 19:4 (2005), pp. 48-66. Phillips, L.W.; Chang, D.R.; Buzzell, R. D. (1983): Product Quality Cost Position and Business Performance: a Test of Some Key Hypothesis, Journal of Marketing, 47: pp. 26-43. Reichheld, F. F. (2003): The One Number You Need to Grow. Harvard Bus Review 2003 Sink, D. S. (1985): Productivity management. Planning, measurement and evaluation, control and improvement. New York; Toronto: J. Wiley. Thomas, J. S. (2001): A Methodology for Linking Customer Acquisition to Customer Retention. Journal of Marketing Research, Vol. 38 May, pp. 262-268. Vavra, T.G. (1997): Improving Your Measurement of Customer Satisfaction. A Guide to Creating, Conducting, Analyzing and Reporting Customer Satisfaction Measurement Programs, Milwaukee. Vavra, T.G. (2002): Customer Satisfaction Measurement Simplified. A Step-By-Step Guide for ISO 9001:2000 Certification, Milwaukee.

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Venkatesan, R.; Kumar, V. (2004): A customer lifetime value framework for customer selection and resource allocation strategy. Journal of Marketing, 68:4 (2004), pp. 106-125. Vuorinen, I; Järvinen, R.; Lehtinen, U. (1998): Content and measurement of productivity in the service sector: A conceptual analysis with an illustrative case from the insurance business. International Journal of Service Industry Management, Vol. 9:4, pp.377 – 396. Zeithaml, V.A.; Berry L.L.; Parasuraman, A. (1988): Communication and Control Processes in the Delivery of Service Quality. Journal of Marketing, 52, April, pp.358. Zeithaml, V.A.; Parasuraman, A.; Berry L.L. (1990): Delivering Quality Service - Balancing Customer Perceptions and Expectations (New York: The Free Press).

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SECTION SEVEN: FACILITIES INFORMATION MANAGEMENT SYSTEMS Introduction Facilities information management systems (FIMS) Prof. Dr. Torben Bernhold Fachhochschule Münster

Papers Sustainable Facilities Management through Building Information Modelling Giulia Carbonari and Keith Jones. Usage of Geographic Information Systems (GIS) and Building Information Models (BIM) in Facility Management at Botanischer Garten Berlin Prof. Dr.-Ing. Markus Kraemer and Benjamin Peris M.Sc.. FM Knowledge Modelling and Management by Means of Context Awareness and Augmented Reality Janek Götze, Christian-Andreas Schumann, Egon Müller and Michael May.

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Introduction FACILITIES INFORMATION MANAGEMENT SYSTEMS (FIMS) Prof. Dr. Torben Bernhold Fachhochschule Münster Creating and operating a sustainable built environment based on resource efficiency and ecological design is one of the major challenges in Facility Management. Therefore professionals generally seek to find a balance between the impact that buildings have on the environment, the benefit that buildings bring to society and the economic costs for owners/occupiers. One step to achieve the objective is to develop whole-life performance models that draw information from building performance monitoring systems linked to integrated databases that allow a building to be managed in a sustainable manner (Carbonari). In this context the University of Greenwich, the research project ArcoFaMa and the research project FMstar focus on Facilities Information Management Systems. The University of Greenwich uses Building Information Modelling (BIM) to support the sustainable facilities management of a multiuse commercial building. Currently BIM is not generally used in FM, but a lot of facility managers already see its potentials in making FM more efficient. The benefits of BIM are multifaceted, e.g. the function of a digital model is very useful. It contains an accurate representation of the building "as-built" and includes all the associated design, installation, commissioning, certification, operation, and management documentation to enable better maintenance management decisions. Moreover, if the BIM also gathers information of the building operation it is useful for facilities managers to understand the building structures. It also gives the opportunity to develop and test alternatives of operational interventions through intelligent modelling applications. (Carbonari) The project AcroFaMa studies the usage of geografic data (GIS) and BIM in FM, which contains significant economic benefits regarding various fields, e.g. in maintenance planning of technical property management. It can be used for previous analysis to avoid risks of disasters due to exact knowledge of geographic positions. The main objective of ArcoFaMa is to enable an easy-to-use integrated data processing of geographic data linked with multiple data sources, especially a standard Computer Aided Facility Management (CAFM) system. (Kraemer) The project FMstar highlights the access to data via mobile devices, which enable the efficient support of maintenance and approval processes in FM. The project contains the development of concepts and technologies for semantic modelling and linking of distributed life cycle data of industrial properties and their flexible and context-based presentation on mobile devices through Augmented Reality (AR). The project focuses on a mobile information system interacting with a FM-technician and the reduction of complexity to achieve a higher reactivity. The relevance is the determining criterion for the selection of provided information. Consequently, the interaction between the user and the system should be reduced to a minimum. This can be achieved by an automatic capturing of context information and its AR-based provision. (Götze)

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Sustainable Facilities Management through Building Information Modelling Giulia Carbonari University of Greenwich [email protected] Telephone +442083319108 Prof. Keith Jones University of Greenwich [email protected] ABSTRACT Building Information Modelling (BIM) is an approach to improving the efficiency of the building process and potentially providing the key data set needed by facilities managers to operate buildings in a more sustainable manner. Whilst the design/construction phase of BIM is well advanced, the facilities management phase is not. Although attempts to develop similar facilities management models have been tried before, they have failed because of the complexity of data analysis and the inadequacies of the available computing technologies. However, the BIM concept could overcome these problems and provide the basis for a new information model for sustainable building operation and management. This paper will present the initial stages of a three-year project to develop a BIM solution to support the sustainable facilities management of a multiuse commercial building. The paper summarises the theoretical application of BIM to facilities management and presents the results of a small questionnaire survey and stakeholder workshop to ascertain facilities managers understanding of, an attitudes towards, BIM. The paper concludes that, whilst BIM isn't currently widely used by facilities managers, they are aware of its development and its potential applications in facilities management. The paper also concludes that facilities managers generally perceive BIM to be a potential facilitator to their work rather than an inhibitor.

Keywords Facilities Management, Sustainability, BIM 1.

INTRODUCTION

In 2011, the UK business sector was responsible for approximately 174 Mt of CO2 (28.5% of the UK’s total) emissions (DECC, 2013), the vast majority of which resulted from the consumption of energy to provide space heating/cooling, lighting and other support services. Achieving a reduction in CO2 emissions in line with UK targets (80% by 2050) will require buildings to perform much more efficiently. Whilst improved energy performance of new buildings can be driven through green certification or changes to Building Regulations, the same instruments cannot easily be applied to existing buildings. Given the current rate of new building in the UK Commercial Building sector it is estimated that approximately 75% of the buildings that will exist in 2050 have already been built (Ravetz, 2008). Thus reducing the energy consumption

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from commercial buildings by 2050 will have to come primarily from extensive fabric retrofits to existing buildings; through more efficient operation of buildings; or a combination of both. This paper will focus on the improving the operational performance of commercial buildings. The performance of many buildings in use does not match their design expectations. Whilst some of the problems may be associated with poor commissioning or inappropriate design, others are attributed to a lack of understanding of how people actually use the buildings they occupy (Zieler et al, 2014) or the links between organisational structure, occupant behaviour and the energy-efficient design strategy (Christina et al, 2014). A study of green buildings in New Zealand identified the importance of the facilities manager in setting energy performance strategies and the need for improved operational level management tools to ensure the building’s energy-efficient performance in use (Zieler et al, 2014). This paper will examine the extent to which building information modelling (BIM) can provide the platform for the development of improved facilities management models and tools. Currently BIM comprise a set of tools that allow the implications of alternative building solutions to be evaluated prior to their adoption. The system effectively comprises a virtual model of a building which designers, constructors and clients can manipulate to explore a wider range of design solutions beyond those that would typically be available through CAD alone. Whilst BIM is currently being used at the design and construction phase of the building life cycle it has the potential to transform building operation and management through the provision of real time feedback on the performance of the building in use. Further, if building user attributes can be integrated into the BIM system this will allow occupant behaviour to be modelled in a way that informs facilities management solutions. This paper summarizes the initial phase of a study of how BIM could be used by facilities manager to operate buildings in more a sustainable way. The paper presents an analysis of the literature and identifies theoretical relationships between facilities management, sustainability and BIM. The paper also highlights potential barriers to BIM implementation and presents the findings from a small questionnaire survey that examined attitudes towards BIM amongst facilities managers. The paper suggests that BIM could become an enabling tool which facilities managers could use to support the sustainable management of buildings 2.

SUSTAINABLE BUILDINGS

Whilst there are numerous definitions of sustainability development, most of them embody the concept offered by Brundtland (1987) that “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. In applying this principle built environment professionals generally seek to find a balance between the impact a building has on the environment, the benefit that the building brings to society and the economic cost to the owner/occupier. To this end the Counseil International du Batiment (CIB) defined the goal of sustainable construction as “…creating and operating a healthy built environment based on resource efficiency and ecological design” (Kibert, 1994) and identified seven principles of sustainable construction: reduce resource consumption; reuse resources; use recyclable resources; protect nature; eliminate toxins; apply life-cycle costing; and focus on quality, which should drive every phase of the building life

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cycle. In recent years different countries have developed green building certification systems (e.g. BREEAM, LEED, DGNB etc.) that seek to ensure design and construction addresses the sustainability principles and, whilst these systems are beginning to have an impact on new buildings, they are not yet routinely applied to existing buildings. It is these buildings that pose a major challenge to both policy makers and built environment professionals as they seek to deliver a more sustainable built environment. Whilst sustainability covers a wide range of issues, climate change, and by association energy use and CO2 emissions, are currently perceived as the most critical issue that society needs to address. Adaptation of the existing built environment to meet changed weather patterns associated with inevitable climate change; and mitigation of future climate change through CO2 reduction targets are forcing built environment professionals to re-examine their approach to building management (Desai and Jones, 2012). Whilst considerable attention has been paid to reducing CO2 emissions from domestic buildings, very little research has focussed on understanding the drivers of energy use in commercial buildings. Indeed, one of the major challenges facing facilities managers is to develop whole-life performance models that draw information from building performance monitoring systems linked to integrated databases that allow a building to be managed in a sustainable manner (Ravetz, 2008). 3.

SUSTAINABLE FACILITIES MANAGEMENT

Businesses address energy use and CO2 reduction through their sustainable facilities management (SFM) strategy which integrates the operation of buildings (physical, technical, human and support systems) with the primary business objectives of the organisation. Regular monitoring of energy consumption informs adaptation; long term strategic objectives, linked to corporate social responsibility and primary business strategies drive mitigation (Desai et al, 2012). Adaptation and mitigation are also informed by the policy framework in which the business operates. Facilities managers, architects, engineers, building owners and users are responsible for assessing options, developing solutions and overseeing their implementation. However, whilst the broad principles that underpin a SFM strategy are known, it is less clear how such a strategy should be developed or implemented. Facility managers need to develop sustainable solutions that integrate people, place, technology, products, values and services together to achieve a more sustainable operating environment (Lee and Kang, 2013). Facilities managers also need to provide an “umbrella” service that ensures any new sustainable (e.g. energy, water, waste management etc) ways of working do not adversely affect the ability of primary business units to effectively perform their primary function (Nielsen et al, 2009). The components of a successful SFM strategy were investigated in the BIFM sustainability survey (2013). The survey identified health and safety, waste management and energy management, together with staff wellbeing and achieving KPIs as the most important aspects of a SFM strategy. The BIFM study also confirmed the generally held view that legislation/regulation, corporate image and organisational ethos were the main drivers behind the successful implementation of sustainability practices. Finally facilities mangers shave to be aware of the role that end-users play in the performance of buildings in use (Azizi et al, 2014). In particular facilities managers need to consider the comfort

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of occupants in any energy management strategy (Hodges, 2005) and integrate individual user’s behaviour (through user-centred approaches) into energy control systems to optimize a buildings energy performance in use (Zieler et al, 2014; Christina et al, 2014). If organizational, operational and end-user data can be effectively integrated into BIM then facilities managers could have a very powerful tool to help them manage their buildings more sustainably.

4.

CAD and BIM

Technology has played an integral role in the construction industry for the past 40 years. In 1973 the first 3D design tools were produced that allowed designers to create, manipulate and edit solid 3D models of building entities (Eastman et al. 2011). In the early 80s 3D modelling morphed into the first Computer Aided Design (CAD) systems that linked digital designs to construction documents and facilitated the first real-time electronic communication between the different stakeholders involved in a construction project (Day 2002). In the early 1990s objectoriented CAD (OOCAD) was developed which linked building graphics with non-graphical data about common building elements (e.g. doors, walls, windows etc.) thus simplifying building section drawings (Autodesk, 2002). The latest technological evolution that the industry has faced is the development of BIM. In BIM both the technical and functional aspects of a building element (e.g. materials, quantities, suppliers, warranties and maintenance procedures) are stored as attributes of a “smart" building object. This said, BIM is much more sophisticated than a collection of smart objects suggests. In 2008, Mervyn Richards and Mark Bew developed the BIM Maturity Diagram (Figure 1) in an attempt to explain the tools and techniques that are available or envisaged at the different levels and stages of BIM implementation. Level 0 BIM is effectively unmanaged CAD with minimal automated data exchange. Level 1 BIM envisages a managed environment where 2D or 3D CAD drawings provide a common data environment that has (ideally) standard data structures and formats but which supports little integration outside the dedicated application. Level 2 BIM seeks to integrate the 3D CAD environment with external tools and data that support time based scheduling and costing information. The relationship between data is generally managed through an enterprise resource planning system. Essentially this level is a practical realisation of the OOCAD models developed in the 1990s and is what the UK Government will require from all publically funded projects from 2016. Level 3 BIM envisages a fully open process where data integration between applications is managed by a collaborative model server. Level 3 BIM (iBIM or Integrated BIM) also extends the modelling regime into lifecycle management (potentially Level 4 BIM - Intelligent BIM) and it is at this phase that the facilities manager could potentially use BIM to better manage the operation of a building. However, if this is to be achieved new tools and models need to be developed that allow the facilities manager to draw on the information contained in the BIM hub. The hub will also need to contain operational specific data (non-building data) that facilities managers need to make strategic and operational decisions.

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Figure 1 BIM Maturrity Diagram m Source:hhttp://www.bimtaskgrooup.org/wp-content/uploads/2012/003/BIS-BIM M-strategy-R Report.pdf 5.

L LINKING BIM TO F FACILITIE ES MANAG GEMENT

Althouggh the beneffits of BIM are alreadyy being realiised at the ddesign and construction c n phase of the building life cyycle, very feew studies have h examined it potenntial applicaation at the operation and maiintenance phhase. One of the few buildings thatt have impleemented BIIM for facillities managgement is thhe Sydney Opera H House. Ann analysis oof the advanntages of B BIM (CRC Constructioon Innovatiion, 2007) identifieed: consistency of dataa; intelligencce of the moodel; multipple represenntations (2D D and 3D); operatioonal reports;; an integratted source oof informatioon for thirdd party softw ware applicaations; and integrateed queries ffor data minning to suppport what-iff scenarios aas those attrributes that would be most useful to the facility f manager. Of theese, Consisteency of datta: is probaably the moost immediiate useful attribute off a BIM FM M model. Having a digital moodel that conntains not only o an accuurate represeentation of the t building "as-built" but alsoo includes aall the assocciated designn, installatioon, commisssioning, ceertification, operation, and mannagement documentatio d on should enable e betteer maintenannce manageement decisions to be reachedd and ultimaately could support jusst-in-time m maintenancee planning aalong similaar lines to that useed in the auutomotive aand aerospacce industriees. Such a B BIM could also contaiin data on portablee assets, inccluding guaarantees andd maintenannces instrucctions etc., which w shouuld in turn support routine inspection annd statutoryy compliancce testing aand reportinng using thhird party softwaree. 218


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An intelligent FM BIM could also support data mining of what-if scenarios. The ability to drill down through data to establish performance patterns across temporal and spatial domains is something that would allow facilities managers to identify recurrent faults in psychical systems or underperformance across building attributes (e.g. space usage etc.). Further, if the BIM also gathered information about the operation (performance) of the building in use (e.g. energy use of buildings) it would allow facilities managers to better understand the buildings they were managing and would allow them to develop and test alternative operational interventions through intelligent modelling applications. Attaching intelligence to spaces within a BIM would allow alternate space management strategies to be evaluated and attaching end-user feedback would allow user behaviour to be integrated into building performance modelling. The examples given above are all consistent with the theory of integrated logistic support and through life business modelling applied to the sustainable management of building services outlined by John et al (2005). However, whilst BIM could offer the facilities manager many potential benefits; are facilities managers ready for BIM solutions? or is BIM another example of a solution looking for a problem? 6.

RESULTS OF THE QUESTIONNAIRE SURVEY AND BIM FM WORKSHOP

In order to understand how facilities managers are responding to the development of BIM a questionnaire survey was distributed to facilities mangers existing web base platforms. The questionnaire sought to identify the current level of use of BIM FM and to identify those aspects of BIM FM that were thought to be most useful to the profession at this time. The questionnaire contained contextual questions about the experience of the person completing the survey; the size of the organisation they worked for; the FM software that they used; their approach to building management (including gathering user feedback); and their use (or intention to use) BIM. The questionnaire was available for 40 days online between September and October 2013 through specialized groups on LinkedIn ( BIM” Construction Informatics, Sustainability & Green Building; BIM Experts; British Institute of Facilities Management; Facilities Management Association; Facilities Management Group; Facilities Management Professionals UK; Facility Management Knowledge Forum; Facility Management made in Italy; Royal Institution of Chartered Surveyors). Eighty four responses were received of which 55 were partially complete and 29 were fully complete. The questionnaire was accessible from all over the world and responses were received from several countries: the largest numbers were the United Kingdom (30 responses) and United States (18) and Italy (16 responses). Approximately 37% of the respondents were Facilities Managers, 15% Directors, 7% Project Managers and 7% Property Managers. All respondents had several years’ experience in their field. Most respondents (56%) routinely used facilities management software to help them manage their buildings. Software used ranged from central CAD systems through bespoke building maintenance systems to mobile devices. However, the majority of respondents (72%) didn't use BIM software. Further, those respondents who had used BIM had only used it for design and

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construction, and not for facilities management. Among those who don’t currently use BIM, 36% of respondents indicated that BIM will be used in future, both to remain competitive for public bids and to satisfy the UK Government Soft Landings 2016 requirements. To the question “which facilities management tasks can be assisted by using BIM?” respondents mainly concentrated on the strategic and building perspective: creating accurate description of the assets; developing preventative maintenance schedules; and tracking and maintaining lifecycle information about the building structure were identified as being the most useful (Figure 2). In addition to the predefined options to this question, respondents also listed other benefits in free text form. These included: commissioning and retro-commissioning activities; energy modelling; future remodelling; additions; expansions and replacement of systems at end of life; adequate preparation on maintenance activities; providing bill-of-quantities information on which to base maintenance investments; sustainability performance; and comments and advice on design. The answers to this question suggest that, although BIM isn't being widely used at present, there is a level of understanding and clear identification of potential applications that suggest that the facilities management profession are aware of BIM and of its potential to facilities management. Although the majority of respondents perceived BIM as a facilitator rather than a hindrance for their job, there were concerns associated with the integration of BIM with existing technology and CAFM systems; and with the potential implementation costs and training (Figure 3). Respondents were also asked how they thought BIM would affect their day-to-day work. Here respondents were equally divided between those who didn't think there would be substantial changes to their working practices (beyond reducing errors and improving efficiency) and those who did (more protocols and processes and longer work tracks). Finally, almost all the respondents believed that BIM will act as a facilitator, rather than an inhibitor to their work. Accurate preventative maintenance schedule Disaster planning and response to minimise safety risks Allocating, managing and tracking spaces

Very Useless

Measure how the building actual performance compares to design…

Useless

Tracking and maintaing lifecycle information about the building…

Useful

Neutral Very Useful

Create accurate description of the assets Assess the design's performance and effectiveness to the spacial… 0%

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Figure 2 Evaluation of potential BIM benefits

Legal issues Unknown technology Time

Very Insignificant Insignificant

Data management

Neutral Significant

Training

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Integration with current technology and CAFM systems Cost of implementation 0%

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Figure 3 Evaluation of BIM concerns A one day stakeholder workshop was held in January 2014 to explore practical problems associated with integrating BIM into FM services and to identify gaps in knowledge that need to be addressed. Attendance at the workshop was by invitation only and the audience was preselected to represent a knowledgeable (expert) and diverse stakeholder group representing FM service providers, clients, academia, UK Government, professional bodies and FM contractors. The meeting was held under “Chatham House Rules”. Twenty two people attended the workshop. Whilst the workshop confirmed many of the findings of the questionnaire survey (the potential, focus and practical issues associated with developing BIM FM solutions) it also identified the need to develop new tools and models that: address soft services; accommodates cultural and behavioural characteristics; are responsive to changes in business strategy (in particular the sustainability agenda); and can demonstrate added value to core business if BIM FM is to really have an impact on the facilities managers perform their functions. The challenge of developing these tools and models forms the next phase of the current research project. 7.

CONCLUSIONS

The results from the questionnaire addressed the potential acceptance of BIM by facilities managers. Respondents were generally aware of the topic and perceived BIM as a potentially useful tool for their work. Despite some doubts on how it could be integrated with existing CAFM software, and issues around training, facilities managers seem to be ready for its arrival and aware of its potential benefits to their work. The results of the questionnaire also confirm the range of potential applications that BIM FM could address, which include energy management 221


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and sustainability issues alongside the more obvious building management applications. In essence the questionnaire would seem to suggest that facilities managers are ready for the handover of Level 2 BIM models that will be generated over the next few years and, whilst they are unsure about how these models will be integrated with their existing systems, they do believe that these models will help them better manage the building. What were less certain from the questionnaire were attitudes toward Level 3 BIM. Whilst some respondents were aware of the potential of BIM to support whole life-cycle modelling, and the ability to integrate soft facilities management services into the model, the majority were not. This conclusion was reinforced in the stakeholder workshop where the need to develop new tools and models that supported integrated FM solutions (both hard and soft) was identified. The expert stakeholder group believed that the potential of BIM to provide facilities managers with an accurate "smart" model of their buildings will provide the basis for better building performance monitoring and control. The group also recognised that to realise this potential will require user behaviour to be modelled and integrated into BIM. This will be particularly relevant if BIM FM is to support sustainable facilities management. The next phase of this project will be to develop and test a series of BIM FM solutions to support the sustainable facilities management. REFERENCES Autodesk (2002). ‘Building Information Modelling’. Available online: http://images.autodesk.com/apac_sapac_main/files/4525081_BIM_WP_Rev5.pdf (Accessed 20 Feb 2014) Azizi, N., S., M, Wilkinson, S. and Fassman, E. (2014) ‘Management practice to achieve energy-efficient performance of green buildings in New Zealand’, Architectural Engineering and Design Management, Volume 10, Issue 1-2, pp 25-39 British Institute of Facilities Management (2013). ‘Sustainability in Facilities Management’ Report. Available online: http://www.sustainabilityinfm.org.uk/resources (Accessed 20 Feb 2014) Brundtland, G., H. (1987) ‘Our Common Future’, Oxford University Press. Christina, S., Dainty, A., Daniels, K. and Waterson P. (2014) ‘How organisational behaviour and attitudes can impact building energy use in the UK retail environment: a theoretical framework’, Architectural Engineering and Design Management, Volume 10, Issue 1-2, pp 164-179) CRC Construction Innovation (2007) ‘Adopting BIM for facilities management Solutions for managing the Sidney Opera House’. Available online: http://www.constructioninnovation.info/images/CRC_Dig_Model_Book_20070402_v2.pdf (Accessed 20 Feb 2014) Day, M. (2002). ‘Intelligent Architectural Modelling’. AEC Magazine. September 2002. June 27, 2007 DECC (2013) ‘ Statistical Release - 2012 UK Greenhouse Gas Emissions, Provisional Figures and 2011 UK Greenhouse Gas Emissions, Final Figures by Fuel Type and End-user’, Available online: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/193414/280313_g hg_national_statistics_release_2012_provisional.pdf (Accessed 20 Feb 2014) Desai, A. & Jones, K. G. (2012) ‘Facilities Manager’s attitudes towards adaptation and mitigation’, CIB W70 International Conference of Facilities Management, Cape Town. Eastman, C., Teicholz, P. Sacks, R. and Liston, K. (2011). ‘BIM Handbook: A Guide to Building Information Modelling for Owners, Managers, Designers, Engineers and Contractors’. 2nd ed. Hobeken, New Jersey, John Wiley & Sons.

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Hodges, C.P. (2005). ‘A facility manager’s approach to sustainability’. Journal of Facilities Management. 3 (4), pp 312-324 John G., Loy H., Clements-Croome D., Fairey V. and Neale K. (2005) ‘Contextual Prerequisites for the Application of ILS Principles to the Building Services Industry’, Journal of Engineering, Construction and Architectural Management. Vol 12(4) pp 307-328. Kibert, C. J. (1994) “Principles and a Model of Sustainable Construction” in Proceedings of the First International Conference on Sustainable Construction, 6 – 9 November 1994, Tampa, Florida, pp 1 – 9 Lee, S.Y. and Kang, M. (2013). ‘Innovation characteristics and intention to adopt sustainable facilities management practices’. Ergonomics. 56 (3), 480-491 Nielsen, S.B., Jensen, J.O. and Jensen, P.A. (2009). ‘Delivering Sustainable Facilities Management in Danish Housing Estates’. Proceedings of the CIMNE 2009 international conference on Sustainability Measurement and Modelling, Barcelona, Spain. Ravetx, J. (2008) ‘State of the Stock – What do we know about existing buildings and their future prospects?’, Energy Policy, Vol 36, pp4462-4470 Zeiler, W., Vissers, D., Maaijen, R. and Boxem, G. (2014) ‘Occupants’ behavioural impact on energy consumption: ‘human-in-the-loop’ comfort process control’, Architectural Engineering and Design Management, Volume 10, Issue 1-2, pp 108-130.

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Usage of Geographic Information Systems (GIS) and Building Information Models (BIM) in Facility Management at Botanic Garden Berlin Prof. Dr.-Ing Markus Krämer Hochschule für Technik und Wirtschaft Berlin [email protected] +49 30 5019 4236 M.Sc. Benjamin Peris Hochschule für Technik und Wirtschaft Berlin [email protected] +49 30 5019 3630

ABSTRACT The usage of geographic data and BIM in FM promises significant economic benefits, however their application in practice is still rare. This submission shows the most significant benefits of GIS and BIM application in FM based on a systematic analysis and an empiric survey done in the research project ArcoFaMa. Furthermore the implementation of an integration platform for Botanic Garden Berlin is described, which connects geographic data to heterogeneous data sources like Building Information Models via IFC standard and CAFM databases. Keywords Geographic data, CAFM, BIM, Integration, IFC 1 THE USAGE OF GEOGRAFIC DATA AND BIM IN FACILITY MANAGEMENT Using geographic data and Building Information Models (BIM) in Facility Management (FM) on an extended scope promises significant economic benefits regarding various fields, e.g. in maintenance planning of technical property management. Moreover it can be used for early watch applications to avoid risks of disasters due to exact knowledge of geographic positions. However, even if the benefits of using Geographic Information Systems (GIS) or a digital BIM in FM is well accepted, the application in practice is still rare. Some of the reasons are the significant efforts to gather geographic data and link them to FM specific alphanumeric data. Also, ongoing data management to keep geographic data up to date frequently exceed available workforce capacities. Especially at this point, missing interfaces between the numerous FM specific information systems used in FM’s daily business today have strong negative impact. The main objective of ArcoFaMa, a joint research project of Hochschule für Technik und Wirtschaft Berlin (HTW Berlin) and Beuth Hochschule für Technik Berlin, is to enable an easyto-use integrated data processing of geographic data linked with multiple data sources, especially a standard Computer Aided Facility Management (CAFM) system. In contrast to similar research

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projectss, which needs an exteensive pre-pphase to acquire geogrraphic data,, ArcoFaMaa aims on derivingg geographicc data from existing CA AD-drawinggs and otherr available ssources of thhe Botanic Garden Berlin. Bassed on thesee objectivess the follow wing researcch questionss should be answered by ArcooFaMa reseaarch project:  Whichh approachhes can be found to simplify thhe process of data aacquisition regarding geoggraphic data in FM?  Whichh FM businness processses will bennefit on usiing geograpphic data poositions on a broader scopee, even in day-by-day business? b  How will an inteegrated datta managem ment based on open sttandards wiill look likee to make geoggraphic data accessible, able to queery, maintainnable and liinkable to vvarious heterrogeneous inforrmation systtems and daata sources uused in FM?? Therefoore, within A ArcoFaMa pproject an inntegration pplatform is uunder devellopment whhich serves as an innformation hub for geeographic ppositions linnked to alpphanumeric data sourcces (e.g. a CAFM data base). By leavingg the linkedd data in theeir original shape, withhout migratiing it to a joint daata base, exxisting inforrmation systtems can sttill be usedd, without raaising efforrts of data management or needs of channging existinng applicatiions. The reesearch proj oject is fundded by the Institut für angewaandte Forscchung Berliin (IfaF). Inn addition tto Botanic Garden and Botanic m Berlin tw wo other tecchnology paartners join the projectt: Fell & Kernbach K Gm mbH with Museum respect tto GIS and Aviant GmbbH with resspect to CAF FM systemss. T THE INITIIAL SITUA ATION OF F BOTANIC C GARDEN N BERLIN 2 Botanic Garden andd Botanic Museum M Berrlin Dahlem m (BGBM, http://www.b h bgbm.org ) both look back onn 300 years of history. BGBM offfers an enoormously vaariety of plaants, that coount more t than 20,0000 types. N Not only a according to this nuumber of t types or itts large surrface, but a due to the well doocumented also s scientific plant coollections, B Botanic Garrden Berlinn is one of t largest and most important the b botanic garddens in thee world. It i an attrraction forr around is 3 300,000 to 500,000 vissitors each y year. Besidees competennt visitors, i interested inn special floowers and p plants or vissitors just seeeking for r recreation, B BGBM is allso visited b a great number off scientists by its extensive r regarding i internationa al netwoorks of r research acctivities.Withh a space o approx. 443 hectare ssubdivided of i park arreas, meaddows and in m mountain sites and a total F Figure 1: geoographic mapp of Botanic Garden Berlin

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amount of more thhan 17,000 ssqm of greeenhouse spaaces BGBM M is the ideal project ppartner for ArcoFaM Ma (figure 1). Just looking at the irrigation aand buildingg gravity draainage systeem, which is suppllied among others by 80,000 to 1130,000 m³ well waterr each year and storm tanks for house arreas with appprox. 1,0000 m3 storagge capacitiess (sufficient for two hott and rainlesss weeks), operatioon and mainntenance is a huge challlenge for BG GBM. Just to ggive an exam mple, big paarts of the ppipe networkk was impleemented starrting at 1899 with the premisee, that its tecchnical equipment, succh as hydrannts, inspectiion shafts annd block vaalves have to be innstalled hiddden for the guests and today (parttly) even foor the housee technicianns. For the outdoorr area 300 C CAD drawinngs exist, whhich were produced p bettween 20088 and 2010. The CAD data inccluded historical data seets, the illusstration of aaxis views aand accuratee measuringg positions of quitee a lot of relevant tecchnical equuipment. Fuurthermore, a lot of innformation from the ecologiccal perspecttive is provided. In recennt years BG GBM has laaunched extensive refuurbishment activities. Hence, H in 22006 until 2009 the Great Pavvillon (GP) w was topic of o an energeetic refurbishhment projeect, which fo focused on keepping the basic b historiical structuure of the buillding and aalso reducedd the poweer demand by 50%. The hhistoric dom me structuree made of steeel and glaass (60m / 29,5m / 29m) encompassed a base area of approx. 1,750 m2 andd a volume of 40,000 m3. Therefoore nearly the complete building b auttomation syystem was wer efficiennt heating repllaced. The high pow systtem consists of seven local ventillation and air conditionning equippment to control Figure 2: B BIM „Great P Pavillon“ mperature and air humidity. Besides tem redevelooping the building b sheell, both a brand b new heat h protecttion glazingg and special glazing bars streeamed by heated h wateer were buillt. Based onn this speciaal technologgy a blastinng heating frontagee, which taake effect too the interiior space, ccould be reealised. Thee new and extensive buildingg technologgy of the G GP, which comprise around 7000 data checkpoints, eenable the systemaatic controlliing, regulatiion and monnitoring of tthe technicaal facilities. Due to these refurrbishment projects p adeequate data of the buiilding serviices is also available within tthe project, including eexact positiions of equiipment in m most of the cases. Unffortunately there will be no acccess to a 33D BIM, whhich has beeen used paartly by the architects within w the wn BIM as refurbishment project of GP. Hence, the research teeam has deecided to crreate its ow shown iin figure 2. In this wayy, a test moddel will be developed ffor validatinng the interfface using IFC6 sttandard to ArcoFaMaa integration platform m. In conseequence, A ArcoFaMa inntegration platform m will accesss not only ooutdoor objeects, but alsso indoor eqquipment. Therefore, thhis BIM of GP will be successiively detaileed accordingg to the dem mands of thee project.

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M METHODO OLOGY / S SYSTEMA ATIC APPR ROACH To achieeve the already mentiioned projeect goals, ArcoFaM Ma followss the syystematic approach illustratedd in figure 3. The analyysis phase, which will be introducced below in detail, is already completed. Based onn the draft concept of ArcoFaaMa integrration platfform, the implemenntation of esssential com mponents, suuch as the NoSQL ddatabase forr integratingg heterogeneeous data, as well ass the interfacce to the staandard CAF FM system WaveFaciilities by Loy & H Hutz is sttill under developm ment (see chapter 4). The impleementation phase willl be finalizeed in May 22014 as plannned. The validationn of the inteegration plattform will bbe done by

field testts conducteed at Botanic Gardeen Berlin starting in April 2014. Thherefore tw wo pilot applicattions will bee used, whicch are descriibed in chappter 5. Figure 3: Systematic approach A ArcoFaMa

I IDENTIFIC CATION O OF USE CA ASES 3.1 The maain goal of the first steep in ArcoF FaMa projeect was to gget an overrview of alll fields of applicattion, where geographicc data and BIM B may be b useful inn FM organnizations. Thhe project team staarts by analyysing well eestablished standards inn FM, incluuding DIN E EN ISO 152221-1 until -5 and GEFMA 100. Each F FM business process ddescripted iin the standdards, each managed e offeredd FM produuct / service mentioned, has beenn analysed equipmeent (FM obbjects) and each accordinng to the folllowing basiic benefits oof using geoographic datta:  locatinng of equipm ment and obbjects,  route aand round trrip planningg,  distannce calculation betweenn objects,  radiuss research off objects / eqquipment,  route ooptimizationn regarding round tripss,  Zoom m functionaliity. For eachh identifiedd FM process or for eaach FM object, in whicch these baasic benefitss seems to make seense, separaate use casses has beenn defined. In parallel 300 CAD drawings oof Botanic Garden Berlin has been evaluaated in term ms of actuality, completeness and detailing. D Due to this analysiss the alreadyy defined usse cases, whhich dependds on geogrraphic data aavailable inn the CAD drawinggs has been prioritised.. This initiaal cataloguee of use cases were disscussed in workshops w with em mployees off Botanic G Garden andd experts of the technnology partnners involvved in the

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project. As a result, all use casse of the catalogue has bbeen condennsed to fourr clusters (cluster 1 to 4), whicch can be matched to alll relevant use cases listted in the caatalogue (according to ffigure 4).

Figure 4: use case cluusters of usinng geographic data in FM M

Cluster 1 „locatingg of (techniical) objectss“ covers alll use casess, in which individual or o a small number objects of the same kkind can be located by geographic data (homoogenous objject data). The clusster also inccludes use ccases with inndoor and ouutdoor objeects. The target group of cluster 1 are maiinly internall employees of FM orrganization,, which usee the functioonality in ttheir daily operatioonal businesss. In contrrast to clusteer 1 the use cases in cluuster 2 “ordder manageement” focuus on a bigger amount of objeccts (few to m many) of vaarious types (heterogeneeous objectss). This clusster comes aalong with a relatioonship to oorders (timee frame: daays to a few w weeks). FM objectss have to bbe always referencced by ordeer entities. D Differing froom cluster 1 the addreessees of theese use cases will be extended by contraactors (exteernal servicce providerss), which arre mainly rresponsible for order executioon (operatioonal businesss). In addiition to clusster 1, not oonly “locating objects”” but also route planning and radius searcch are important. With cluuster 3 “plaanning and coordinatioon” use casees were sum mmarised, w which focus on o tactical or strateegic planninng activitiess (time fram me quarters to years) innstead of opperational taasks. This cluster comes c alongg with visualisation off FM objects (planning items) as well w as referrencing to strategicc order mannagement (e.g. inspectioon plans of whole w manuufacturing plants). p fo clusteer “disaster managemeent/risk avoiidance” a faast reactivityy is essentiaal. All use In the fourth cases innclude fast locating off objects (seee cluster 11) and furthher functionnality, such as radius search oor retrieval oof local conditions to esstimate poteential risks iin case of diisaster. U USER SUR RVEY TO V VALIDATE E USE CAS SE CLUST TERS 3.2 The fouur identifiedd clusters seerve as basiic requiremeents to outlline the initial design cconcept of ArcoFaM Ma’s integrration platfoorm (chapteer 4) as weell as for thhe pilot applications. Inn order to validatee these identtified clusters, a surveyy asking diffferent comppanies whichh use geograaphic data in their FM businesss was condu ducted.

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Figure 5: Paarticipants of the survey

EF FMC 2014 Besside getting feedback reegarding thee assumed bennefits of using u geogrraphic dataa in each cluster, also evvidence abouut the actuaal usage of geoographic datta and GIS in practice should be gathhered. In tootal 118 com mpanies werre asked to atteend the suurvey and 25 compannies have actuually responnded on the questionnaaire, which is a fairly good response rate of appprox. 30%. Thee spectrum m of the analysed enterprises e com mprises the categories shown in figure 5. Thee position “oothers” inclludes furtheer property orgganisation (ee.g. real estaate investorss, housing soccieties) and non-properrty organisaation (e.g. airpports, publiic transportaation servicces, public autthorities).

In the ffirst part off the surveyy we find out, o that already 48% of all intervieweed companiies have already geographicc data in use in theeir daily businesss. But as sstated previiously, its usage u is limited to specific, individual ccases. Theree was no usage of geographiic data on a broader scoope. The mentionned use casses of the respondentts partly complem ment the alrready identiified use caases (e.g. positionning of aircrrafts at an aairport). Exccept one use casse, which uses u GPS coordinatess within service managemennt (which bbelongs to ccluster 2) all addiitional menttioned use cases matchh cluster 1.

Figure 6: Agreement tto the 4 Clussters

was asked. In the ssecond partt of the suurvey the agreement too the benefits of eachh cluster w Therefoore each individual benefit associatted to a clusster was reddrafted into a theses, which w were evaluateed in termss of agreem ment (two different d levvels) or dissagreement (again twoo different levels). The value oof percentagge in figure 6 shows thhe weighted average andd provides with w more than twoo-thirds of aagreement eevidence aboout the clustters definitioon. In clusster 2 (ordeer managem ment) more than five theeses are included (corespponding wiith designaated benefits). F For each oof these theesis again more than tw wo-thirds of the interviiewee conttinuously aagreed on (figuree 7). In case of optimizing o activityy sequencess / route pllanning of orders,, more than 80% agreed whereof Figgure 7: Agreement to the thesis of cluuster 2 "job controlliing"

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ment level (fully agreeement). Beecause of thhese high aagreement 40% sccore the higghest agreem values aand becausee cluster 2 encompasse e s all benefitts of clusterr 1, the projject team haas decided to conduuct the pilott applicationns with a usee case of cluuster 2. As a further reqquirement, tthe project team haas to keep inn mind, that almost 60% % of the inteerviewees raate searchingg FM objects inside a buildingg as critical. Furtherm more approxximately 500% of all responding companies evaluated instructiing externall service prroviders to llocate / idenntify FM obbjects as really time coonsuming. We idenntified nearrly the samee trend regaarding FM objects outsside the buiildings, butt with less importaance among the particippants. As a connclusion of the survey, it can be sttated that thhere is a cleaar interest of extending the usage of geogrraphic data in FM in daaily businesss. Another outcome off the surveyy is, that feattures such as radiuus search or route plannning have too encompasss not only F FM objects of one typee (e.g. fire protectioon flap), buut also of diffferent typess (heterogenneous objects) which caan be foundd indoor or outdoorr. 4

A ARCOFAM MA INTEG GRATION PLATFOR P RM AND PIILOT PRO OCESS

The ArccoFaMa appproach assum me that all iinformation resources oof the Botannic Garden Berlin B will be kept unchangedd and existinng informattion systemss can still bbe used. In oorder to achhieve this, the ArcooFaMa system architeccture (shownn in Figure 8) 8 offers thee integrationn platform, w which can be usedd either by web browssers, mobile devices oor using weeb services by any otther client applicattion, such ass CAFM sysstems.

F Figure 8: ArccoFaMa systeem architectuure

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4.1 INTEGRATION OF EXISTING DATA RESOURCES AND DATA PREPARATION An example of the data sources available via integration platform is the BoGART database of Botanic Garden, which uses Microsoft's DBMS7 SQLServer. The database contains nearly the complete collection of plants of Botanic Garden, which are already located using a grid network with coarse geographic locations. Figure 8 shows also the already mentioned CAD drawings and other file based recordings (such as Excel files). The extraction of spatial information from the CAD drawings (depicted by an arrow labeled with “import FME”) is done with a software called “Software Feature Manipulation Engine” (FME) offered by the software vendor SafeSoft. FME is an ETL8 tool, which is able to read various input formats, including Autocad DWG and DXF formats and convert them in various output formats. The extraction and transformation can be customized individually and single objects, their attributes or even complete CAD layers can be translated to the desired export formats. An important aspect of this research project is the use of complete open standards for integration, such as CityGML and IFC. CityGML is used to store and exchange 3D city models. The standard is available since April 2012 in version 2.0. CityGML has reached a rich level of details, which allows systematic modeling of nearly all kinds of objects within urban areas, even underground infrastructures. The CityGML standard of the Open Geospatial Consortium (OGC) is based on an XML-based format. The data model of CityGML is object-oriented. In order to manage the data and its complex data structures efficiently, a simple 1:1 mapping of object to table schemata is not possible. Regarding these performance issues, specialized database schemata and converters of 3DCityGML have been firstly developed for DBMS Oracle Spatial (cf. [Kol09], [NagSta08]). Another implementation of 3DCityGML based on PostgreSQL is done with the extension PostGIS (according to [Kun13]), which is actually used in the research project. First experiences with the PostgreSQL implementation, storing geographic data of CAD layers converted by FME software are available and are promising. The conversion and management of other layers will be happened gradually. For representing indoor objects (within building), a BIM of GP of Botanic Garden Berlin will be integrated as an example (see chapter 2). The model will be available as openBIM using IFC standard. It is generated using Revit software. Based on the well-established standard to exchange product data models (STEP), used in manufacturing industry, the association “Industry Alliance of Interoperability” (IAI, since 2010 buildingSMART) specified the Industry Foundation Classes (IFC) to cooperate and exchange building information models in AEC9 industry sector. The IFC standard is registered as ISO standard 16739 and is available in version IFC 4 by now. IFC 4 offers the “Basic FM Handover View”, which is able to transfer nearly all data from the planning and construction phase to FM. Within the project the free implementation of the BIMserver (formerly IFCserver) will be used, which already includes partly CityGML interfaces today. First analysis of using IFC in practice to exchange the data of BIM to CAFM has been done within the research initiative “ZukunftBau”, which was funded by the German

7

DBMS: Database Management System ETL comprises procedures for extraction, transformation and loading of data to data bases / data warehouses. 9 AEC: Architecture. Engineering, Construction 8

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government (Bundesamt für Bauwesen und Raumordnung, BBR). The result were encouraging10 and there are several ongoing activities, e.g. by GEFMA (research group “data exchange”). 4.2 STRUCTURE OF THE INTEGRATION PLATFORM The ArcoFaMa integration platform, which links existing data sources and the new data derived from CAD drawings to geographic locations will use a graph database as core component instead of a traditional, relational database. These NoSQL databases are more suitable in mapping complex, meshed up relationships. A critical aspect of this approach is handling metadata. All the metadata of any connected data source is stored in the graph database. The 0graph of metadata, using nodes, edges and properties, will be generated fairly automatically by importing the data schemata of the connected data sources. This graph of metadata will be used later to query the connected data sources and to analyze its data. In the first step graph structures of metadata are generate for each connected data source separately. In a second step these different graph structures will be linked using special connecting nodes, which have been developed within the project. Finally an integrated graph of all metadata, encompassing all kinds of data sources (even the once with different types of data models), will allow querying heterogeneous data, coming from different data sources. Queries can now seek the graph of metadata to find data or to aggregate values. The migration of source databases is not necessary anymore to query multiple sources, because the graph of metadata can handle sematic or structural differences of the source databases. Using this infrastructure enables ArcoFaMa integration platform to query existing databases such as BoGART and new databases such as City-DB, BIM Server or the database of the CAFM system WaveFM in a single step. Hence, it will be no problem anymore to select FM object located within buildings (served by the BIM-Server or CAFM database) or outside in the park (served by City-DB or BoGART) in one query for planning maintenance routes. The provision of such information can be used via web services, browser and mobile devices or even straight from the CAFM system. 4.3 PILOT PROCESS FOR THE TRIAL IN FIELD TEST In order to validate the described system architecture two pilot applications are being developed by the research project team. As an example of a FM business process the maintenance of FM objects will be used (see BPMN11 representation in figure 9). The first part of the maintenance process is handle by the first pilot application. It will focus on the internal FM-employees. Consequently the ArcoFaMa integration platform will be used directly by the standard CAFM system, in which maintenance planning will happen (see upper lane of figure 9). The ArcoFaMa integration platform offers additional services to the CAFM System, e.g. to extend the amount of maintenance objects already selected by the CAFM database by using a radius search. This radius search will including other types of objects, which are not yet part of the CAFM database such as geo-referenced objects from City DB and indoor object from BIMServer.

10

Hieke, S.; Liebich, T.; Weise, M.: Modellbasierter Datenaustausch von alphanumerischen Gebäudebestandsdaten (nach BFR GBestand) mit der produktneutralen Schnittstelle IFC, Endbericht Forschungsinitiative ZukunftBau, 2008. 11 BPMN: Business Process Model and Notation

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N process inn figure 9. The second part off the pilot prrocess is shoown in the llower lane oof the BPMN Both lannes are connnected usingg a link object with thee name “maintenance date” d (circle icon with an arrow w), which iss used in botth lanes. Thhis lane reprresents an exxternal service providerr who will execute the mainttenance ordders. The external seervice provvider get aaccess to ArcoFaMa A integratiion platform m using a web browsser applicattion on a mobile m deviice, such as a a tablet computeer (native m mobile apps are possiblee as well). W With the moobile devicee the servicee provider will dow wnload a m map of Botaanic Gardenn depicting locations of o the objects to be ppart of the maintennance order. In additionn a sequencee of object m may be show wn as a maiintenance rooute. After executinng the mainntenance acctivities thee service prrovider willl finalize hiis services orders by signing the prepareed maintenannce documeents. In a lasst step, whicch is again ppart of the uupper lane, the FM employee verifies thee documentss and close the mainteenance ordeers within thhe CAFM System..

Fiigure 9: BPM MN model off the pilot proocess

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5 CONCLUSION AND OUTLOOK Only an integrated data management of geo-referenced data and FM related technical data will justify the efforts of data acquisition and data management necessary to handle geographic data on a broader scope in FM. ArcoFaMa will contribute to achieve this objectives by reducing the efforts of data acquisition. Therefore the ETL-tool FME helps to derive geo data from existing sources (e.g. CAD drawings). Furthermore the ArcoFaMa integration platform enables an easyto-use access to geo-referenced objects from different applications, including a standard CAFM system or a web browser used in day-by-day business. The consequent usage of open standards (such as IFC and CityGML) offers the opportunity to use software products of various manufactures (e.g. other CAFM systems) and adapt the ArcoFaMa integration platform to existing IT environments. In addition this integrated data management of geo-spatial data will enable new use case scenarios in Facility Management or beyond. In case of Botanic Garden Berlin it is discussed to use the infrastructure to help visitors by planning visiting routes individually through the garden from the Alps to Caucasus or the Tropical Rainforest. Another interesting aspect is the integration of IFC data for operational purposes. The authors are sure, that the availability of BIM data and the exchange of it using IFC standard will be more important in future, since the BIM method will become more and more popular in planning and construction. REFERENCES Krämer, Markus; Sauer, Petra, (Krä 2013), „Integration von Geodaten und Daten des Facility Managements zur Verbesserung der Liegenschaftsverwaltung.“, Angewandte Forschung zur Stadt der Zukunft, Beuth-Hochschule Berlin, Logos Verlag Berlin GmbH, S. 49-52, ISBN 978-3-8325-3352-6. Hieke, S.; Liebich, T., Weise, M., (Hie 2008), „Modellbasierter Datenaustausch von alphanumerischen Gebäudebestandsdaten (nach BFR GBestand) mit der produktneutralen Schnittstelle IFC“, Endbericht Forschungsinitiative ZukunftBau, Berlin. Heuschkel, Steffen; Sauer, Petra; Herrmann, Frank (Heu 2010), „Management von Geo- und Standortdaten in Freizeitanlagen mit Oracle-Technologien.“, presented at DOAG-Konferenz, 12/13/2010, Nürnberg. Nagel, C.; Stadler, A. (NagSta 2008): Die Oracle-Schnittstelle des Berliner 3D-Stadtmodells, available at: http://www.3dcitydb.net/3dcitydb/fileadmin/downloaddata/Nagel_Stadler_31072008.pdf, (03/01/2014). Kolbe, T. ; König, G.; Nagel, C.; Stadler, A. (Kol 2009): Die 3D-Geo-Database for CityGML Version 2.0.1., available at: http://de.scribd.com/doc/50456198/2009-3DCityDB-Documentation-v2-0 (03/01/2014). Kunde, F. (Kund 2013): CityGML in PostGIS, available at: http://opus.kobv.de/ubp/volltexte/2013/6365/pdf/kunde_master.pdf (03/01/2014)

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FM Knowledge Modelling and Management by Means of Context Awareness and Augmented Reality Janek Götze University of Applied Sciences Zwickau [email protected] +49 375 536 3448 Daniel Ellmer University of Applied Sciences HTW Berlin [email protected] Philipp Salzmann University of Applied Sciences HTW Berlin [email protected] Christian-Andreas Schumann University of Applied Sciences Zwickau [email protected] Egon Müller Chemnitz University of Technology [email protected] Michael May University of Applied Sciences HTW Berlin [email protected] ABSTRACT One challenge for future IT systems in FM is the automatic processing of large heterogeneous and distributed data and their context-based utilization, e.g. in maintenance management. Regarding the user interface, the access via mobile devices constantly gains significance. Reasons are the increase of multi-functionality, the price decline and the benefit to access data at any time and any place. The lack of the intuitionally understandable presentation of data on mobile devices still represents a barrier for practical use. The search for information in menu bars, tables or PDF files on limited smartphone displays is too time-consuming and requires too much finger precision from a user perspective. The conceptual paper presents new approaches of information modelling and -supply, which enable the efficient support of maintenance and approval processes in FM. The ongoing research project FMstar, initiated for this purpose, develops concepts and technologies for semantic modelling and linking of distributed life cycle data of industrial properties and their flexible and context-based presentation on mobile devices, through Augmented Reality (AR). Three universities and four enterprises partake in this project, funded by the German Federal Ministry of Economics and Technology.

Keywords Facility Management, Augmented Reality, Context Awareness.

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I INTRODU UCTION 1 The rannge of taskks in Facilitty Managem ment coverss planning, execution and optim mization of support processes tto secure prrimary processes of a ccompany. A Amongst othhers, the maaintenance and the approval oof facilities are importaant fields off activity. W Work patternns, which aare carried out in tthese proceesses, are m marked by a high dem mand for infformation. Nowadays important informaation gets lost during thhe life cycle of a facilityy and is no llonger availlable for FM M-tasks. A sustainaable use of life cycle ddata is hindeered by the amount off data, the vvariety of daata format used byy the differennt partners, who are invvolved in thhe planning,, as well as by differennt usage of terminology. This iis often accoompanied byy an insufficcient reactivvity of the F FM-staff. t questionn how the realization of FM-taskks can be The ressearch projeect FMstar addresses the supporteed and impproved by m means of cuurrent Inform mation Com mmunicationn Technoloogy (ICT). Besides approachess to improvee the inform mation supplly, one focuus is mainly set on imprroving the Human--Computer Interaction (HCI), speecifically onn the basiss of mobilee devices. ((Figure 1) These approaches deal withh the conttext-based provision of informaation and graphical represenntation by m means of A Augmented R Reality. Thiis paper foccusses on aapproaches aassociated with thee context-baased provisioon of inform mation. Figure 1: O Overview FMsstar approach h

The conntext-basedd informatioon supply is concerneed with thhe question,, how onlyy relevant informaation can be provided too users. Thee relevance of informattion is definned by the R Relevance Theory, in particullar through a function of the proccessing effoort and posiitive cognitiive effect. The proocessing effo fort reflects the energy,, which the recipient neeeds to expend to com mprehend a specific piece of information and to utillize it. If innformation is particulaarly importaant in the 236


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current situation of the recipient, a positive cognitive effect will be achieved, which means the demand of information is satisfied. The higher the positive cognitive effect and lower the processing effort, the higher the relevance of a piece of information. (Wilson/Sperber 2002) Thus the relevance is highly dependent on the knowledge about the user’s situation. If the situation of the user is clear, the subjective and objective information demand can be determined and potentially relevant information be provided. The situation of the user can be specified by the context of the Human-Computer Interaction. According to Dey, context is „[…] any information that can be used to characterize the situation of an entity. An entity is a person, place, or object that is considered relevant to the interaction between a user and an application, including the user and applications themselves“ (Dey 2000). To describe this context information, various context factors exist. Koch identifies eight categories of context factors: User/person, activity/task, social environment, place, time, information/information sources, IT-environment/devices and the physical environment. (Koch 2010) In conversations between people, context-information is transferred implicitly, without being mentioned explicitly. In human-machine communication, context data must be collected and conveyed explicitly to be taken into consideration. Context sensors capture the parameter values of the context factors. The term context sensor, at this point, means an abstract service to determine a context value and can be represented by a sensor for air humidity, as well as a software service to determine the current task of an FM-technician. The use of this context information to specify the user’s situation is referred to as Context Awareness in the field of ICT. Vice versa, Context Adaption describes the ability to adapt the system behaviour on the basis of context information. (Sitou 2009) The adaption process refers to the provision of information, processing of functions or applications, or configuration of the user interface. (Koch 2010) 2 OBJECTIVE The objective of the mobile assistance system, which will be developed in the project FMstar, is to provide only relevant information concerning the FM-user’s scenario. Thus, the relevance is the determining criterion for the selection of provided information. Consequently, the interaction between the user and the system should be reduced to a minimum. This can be achieved by an automatic capturing of context information and its AR-based provision. Finally, a complexity reduction and a higher reactivity of the FM-staff will be accomplished. 3

APPROACH

3.1 Developing AR application scenarios In order to demonstrate the various possibilities of using AR technology in FM and especially maintenance management (MM) six application scenarios have been developed. They show how MM stakeholders can be assisted in their routine business. In the following, two of those scenarios are described in more detail. Scenario 1: Get familiar with technical equipment When technicians, owners, or operators are not yet familiar with the built environment and related equipment they need fundamental information on those systems. This information could be provided by FMstar. Technical data, schematic representations, drawings, instructions, etc. could easily be provided to the user. The information can be presented graphically, acoustically, or even in a haptic manner. As a major benefit those information cannot be overlooked thereby helping to prevent failures. This information can assist the user in better understanding the 237


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function of technical systems and their interrelations. In order to understand complex systems on a rather small display surface of a mobile device the user can navigate “inside” the virtual components. The schematic model of the equipment can be viewed from different angles. By overlaying the real system with the virtual one and by providing additional information on the system’s components the user easily understands their structure and function. In this way s/he is supported in his decision making process. Scenario 2: Equipment know-how across trades Technicians are supposed to understand trades outside their own special subjects. Only then they are in a position to solve problems that relate to more than one trade. By highlighting components on a mobile AR system, interconnected parts can be displayed across the respective trades. For instance, this filter function allows to locating a certain HVAC component that is controlled by a building automation system. Consequently, a technician is able to find a ventilation damper in a building without detailed know-how of HVAC systems and at the same time to check the function of the ICA (instrumentation, control and automation) system. Additional AR scenarios might be:    

3.2

Inspection and approval Troubleshooting Training Routine maintenance

User requirements on AR utilization in FM

As one of the initial steps within FMstar a user requirements analysis was conducted based on an online survey. 16 selected partners from different industries took part in the survey. The questionnaire was addressed to companies from the fields of maintenance, planning, and inspection/approval. The survey focussed on verifying the potential benefits of AR and the definition of application scenarios. Day-to-day work in maintenance, inspection and approval is characterized by a number of obstacles. In the survey the respondents addressed missing information to be the most serious problem when maintaining, commissioning or repairing technical installations. This concerns completeness, location and maintenance of relevant data. Consequently, we can find dysfunctional maintenance programmes due to the lack of information. The majority of respondents claimed user interfaces of current systems to be too complicated and not userfriendly enough. Furthermore, they stated that important information such as memos and notes are overlooked frequently resulting in unnecessary effort and cost. The assistant system to be developed within FMstar is intended to reduce or overcome the obstacles mentioned. The survey introduced the participants to various application scenarios, as mentioned in chapter 3.1. They rated both the frequency of appearances and possible benefits of these scenarios on a scale from 1 to 6 (1=best, 6=worst).

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Figure 2: F Frequency and d benefit of d different AR u user scenarioss

Figure 2 displays thhe corresponnding resultts. Obviouslly, the potenntial AR useers expect thhe biggest benefitss from the scenario “G Get familiaar with techhnical equiipment”. It turned outt that this scenarioo is the one that prevaills in most organisation o s. The potenntial benefitts of AR in education and trainning were cconsidered tto be ratherr low. An exxplanation ccould be thaat the particcipants are with orgganisations w which are not n much invvolved with education aand trainingg issues. As show wn in figuree 3 all respondents inddicated a high need forr graphical support esppecially in maintennance managgement. Maainly they rrequired thee display/ovverlay of eqquipment scchematics, facility data and insstructions. In I addition, photos are supposed too be displayyed but also taken and interlinkked with thee correspondding system ms or compoonents. In thhis way, worrk order maanagement (e.g. failure detectioon and docuumentation) can be impproved signiificantly. 44% off the compaanies statedd that they are alreadyy using moobile devicees with acceess to the Internett and/or WiF Fi if availabble. No onee did refuse future utilisation of m mobile technnologies in FM. Thhis is a major prerequiisite for succcessfully im mplementinng and explooiting FMsttar in FM practicee.

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Figure 3: The need for graphical assistance

Animated visualisation of complex work steps Take photos Show checklists Display connected components Show floor plans Redlining floor plans Show system diagrams Show instructions and notes Show facility data Select components and related data 0%

Inspection and approval

50%

100%

maintenance management

Furthermore, the survey showed that the majority of companies interviewed are already using CAFM technology (May 2012) or are familiar with its use. A substantial part of information needed for FMstar is already available in CAFM systems. That’s why the respondents support the idea to integrate AR with CAFM and related data bases, which actually will be part of the FMstar prototype development. In summary, the survey was able to reveal information deficits in current maintenance and inspection/approval processes and to point out potential benefits of AR application scenarios in FM.

3.3 Information modelling concerning context adaption For capturing of context information during a Human-Computer Interaction the following approach was chosen. First, context factors were identified, which describe the usage situation, and classified into context categories (figure 4). In the following, these factors were integrated in a model for context-based information provision for FM processes by means of a mobile ARapplication. This represents the current state of context adaption within the project FMstar. The future work steps will be the description of existing interdependencies between context factors and their weighting and modelling in a context model. Context factor identification and description The selection of the context factors was based on a top-down process analysis of the usage situation “mobile maintenance”. The factors were classified into four context categories. Context sensors capture the present parameter values of the context factors. A context model transforms the set of context parameter values into an information demand. This will be converted into an information request and transferred to an information resource system. In FMstar this is represented by a semantic database (figure 4, eResources), providing an extensive base of information for industrial facilities. After determining the relevant information the result will be provided to the user. In the project this is realised by transforming the data into an AR-image.

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whether the information demand is satisfied or a modificattion of the Afterwaards the userr decides w context parameters will be necessary. From a current prrospective tthere is noo mandatoryy sequence of consideered contexxt factors. Implem mentation alggorithm migght start witth factors w with the highhest filter effect or witth the first availablle factor parrameter. Thee descriptioon of the moodel for conttext-based iinformation provision starts w with the proccess-related context cateegory at thee right hand--under quaddrant in figuure 4. This categoryy stands forr the determ mination of pparticularly tthe objectivve informatiion demand in a work context.. The user’ss role assiggns basic reesponsibilitiies and infoormation acccess. By means m of a process model, the current tassk leads to aactivities, linked docum ments, objeccts (e.g. a ccomponent of a faccility), (IT-)) tools or uutilities. Addditionally, nnecessary ppersonnel suupport can bbe linked. These pprocess-relatted context factors cann be specifieed by persoonnel contexxt factors. T The set of basic coonfigurationns within a user profille could moodify the A AR-image onn the mobiile device. Occupattional qualiification givves hints ffor the perm missibility oof an activvity, especiaally when considerring event-ddriven processes e.g. inn trouble shhooting. Furrthermore, tthe experiennce of the user reggarding a speecific activiity can be uttilised to filtter probablyy known infformation. Figure 4: Model of context-based c d information provision

Afterwaards, the coontext factoors of locatiion and envvironment reduce the informationn demand accordinng to the acctual work eenvironmennt (figure 4). This appliies among others o to thee location, the real view sectioon of the user’s tablet computer oor the deteccted distance to relevannt objects. The anaalysis of thee environmeent includess existing objects, peopple (staff) aand parametters of the physicall environmeent but also available IT T environmeent (e.g. servvices) or doocuments. Contextt parameter values of thhe current ssession willl be recordeed in a timee context (depicted as “sessionn t0, t1”). Thhey will be available foor future adaptions of tthe informattion demandd, to learn from thee user’s behhaviour.

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Examp ple of a conttext-based informatioon provision n based on AR The folllowing exaample of co ontext-basedd informatio on provisio on using AR R in a main ntenance processs helps to understand u the t potentiaal of contex xt awarenesss. A techniician wantss to start with onne of his or her h tasks, noted n in the schedule. The T inspectiion of a cooolant installaation for the prooduction of company X is schedduled. The task is parrt of a proccess model for the maintennance. The related process leads tto informatiion on the facility, f to bbe inspected, about necessaary documennts, but also o essential aauxiliaries as a well as to ools. Initial assistance could c be to proviide all neceessary tools/auxiliaries before exeecuting the task t and to provide naavigation to the ffacility. For this set of o informati tion, an AR R-based info formation prrovision is not yet requiredd. In front of the facility, the vview section n of the tab blet compuuter determ mines the relevantt informatioon by recog gnizing the rreal visible objects. Th he evaluatioon of the disstance to the faciility allows a differentiated depictiion of data by b using information laayers. For instance, i detailedd informatioon will just be visible by closely focusing on a componnent of the facility. Animattions, colouuring or sim mply labellinng can be su uperimposeed by textuaal informatiion such as objecct attributess (3 bar in figure 5), ddepending on o the required qualityy of supportt for the techniciian. Docum ments linked with this taask can be requested r an nd updated. This exxample preseents only a small sectioon of potenttial contextss, which couuld be incorrporated in a sysstem interacction betweeen a FM-tecchnician and d a mobile informationn system. However, H it is suittable to dem monstrate th he potential of context- based inforrmation proovision by means m of AR. Figu ure 5: Examp ple of a AR-b ased assisten nce system forr FM- techniccians

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REFERENCES Dey, A. K. (2000), Providing Architectural Support for Building Context-Aware Applications, Georgia Institute of Technology, Atlanta. May, M.; Williams, G. (Eds.) (2012), The Facility Manager's Guide to Information Technology – An International Collaboration, International Facility Management Association, Houston. Koch, O. (2010), Kontextorientierte Informationsversorgung in medizinischen Behandlungsprozessen, Vieweg + Teubner, Wiesbaden. Sitou, W. O. (2009), Requirements Engineering kontextsensitiver Anwendungen. Institut für Informatik der Technischen Universität München, München. Wilson, D.; Sperber, D. (2002), “Relevance Theory”, Horn, L., Ward, G. L., Handbook of Pragmatics, Blackwell, Oxford, S. 251.

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Introduction EuroFM RESEARCH WORKSHOPS Prof Keith Alexander Chairman, EuroFM Research Network Centre for Facilities Management, Manchester, UK [email protected]

Once again this year, EuroFM has provided an opportunity for a broader range of research papers to be presented and discussed as part of the overall programme for the annual research symposium. The workshops have been organised in response to requests by members of the research network for an opportunity for discussion of more theoretical and methodological issues associated with FM research. They provide an opportunity for the presentation of research in progress to provide invaluable feedback for the further development of results and findings. The workshops also provide an important opportunity to support the development of academic staff and for exchange amongst registered postgraduate students. All papers included in the workshops responded to the general call for papers for the 13th EuroFM Research Symposium and went through the same double-blind refereeing process as all papers in this publication. The research workshops, this year locally hosted by HTW University, comprise three parallel sessions to discuss theoretical research, research in progress and contributions from elsewhere in the world. In addition there will be another open session for registered postgraduate students to share experience and to identify ways in which EuroFM might provide more effective support for their needs and requirements. The papers in the Advancing knowledge in FM workshop focus on the improvement of scientific enquiry in FM. Papers in thematic workshops present ongoing research to generate discussion about the conduct of current work. The Postgraduate Research workshop presents research being conducted as part of a programme of study for higher degree, at different stages of development. A further objective of the workshops is the opportunity to meet researchers, academic staff and research students of local Universities and to encourage their involvement in future activities in the network. This year we welcome the opportunity to hear more of relevant work being undertaken by researchers in Germany. We are sure that the contribution will strengthen our understanding of the development of FM in Europe.

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SECTION EIGHT: ADVANCING KNOWLEDGE IN FACILITIES MANAGEMENT Introduction Advancing knowledge in Facilities Management Keith Alexander Centre for Facilities Management, Manchester, UK

Papers Knowledge Map of Facilities Management Suvi Nenonen, Göran Lindahl and Per Anker Jensen. Analysis of FM research subjects: A quantitative investigation of academic facility management publications between 2006 and 2012 Christian Coenen and Viola Läuppi. Competencies for Multi-, Inter and Transdisciplinary Research in Facilities Management Research Suvi Nenonen and Göran Lindahl

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Introduction ADVANCING KNOWLEDGE IN FACILITIES MANAGEMENT Prof Keith Alexander Centre for Facilities Management, Manchester, UK The European FM research community, driven by the dictates of academic performance and scientific enquiry, has tended to focus on developing FM as a body of knowledge. For example, Junghans and Olsson (2014) discuss FM as an academic discipline and provide an overview of the state-of-the art of the field as currently framed. Following this trend, the papers in this section address Facilities Management as a discipline, primarily using reviews of literature in the field to identify a knowledge base (Nenonen and Lindahl), methodologies (Coenen and Läuppi) and competencies and skills (Nenonen et al) to inform further research. Although the papers argue for it to be considered as a management discipline, much of the analysis shows that, on the whole, FM as a research area it is treated more as a field of management engineering. Each of the papers are based on narrowly defined literature reviews with a focus on journals with a bias towards property and (built) asset management issues. Although other commentators argue for deeper coverage of these issues, a growing counter movement argues that FM is essentially a business service discipline and needs to engage with relevant research in social science, service marketing and anthropology. Unpublished work by Alexander and by Nelson and Tammo (forthcoming), as part of a project called ‘Back to the Future’ to celebrate EuroFM’s 25 year history, has revisited the portfolio of work published in EuroFM conferences since 1990, including the twelve prior Research Symposia. The work reflects on the contribution to EuroFM objectives and assesses the extent to which the research efforts have advanced knowledge. Conclusions suggest stagnation rather that evolution and call into question the extent to which the field has advanced. Discussion at the symposium should focus on a debate about more effective ways of advancing knowledge in FM. The current research approach could also be seen to delimit the contribution that this research is able to make to EuroFMs overall objectives. For some, refocussing attention on creating a community of knowledge, rather than on defining a body of knowledge offers a better way forward. In the context of EuroFM, there should be more focus on creating a cycle of theory, action and reflection that helps us analyse our efforts in order to improve our ideas. Previous usability research offers a framework (Alexander et al, 2013) for producing knowledge in the context of use and action, to more directly address EuroFM’s mission and objectives. References: Alexander, K, et al (2013), ‘Usability: managing facilities for social outcomes’, CIB World Congress, Brisbane; Alexander, K and Price I Managing Organizational Ecologies: space, management and organisation, New York: Routledge. Junghans, A, editor, (2014), ‘Facilities management research in Europe ‘, Special issue, Facilities, Vol. 32 Iss: 1/2; Junghans, A, and Olsson, N O E, (2014) "Discussion of facilities management as an academic discipline", Facilities, Vol. 32 Iss: 1/2, pp.67 – 79;

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Knowledge Map of Facilities Management Suvi Nenonen Aalto University suvi.nenonen @aalto.fi +358 505 985 342 Per Anker Jensen Technical University of Denmark [email protected] Göran Lindahl Chalmers University of Technology [email protected] ABSTRACT Purpose This paper aims to draft a knowledge map of the fragmented and multidisciplinary research of and relevant to Facilities Management (FM). The Facilities Management knowledge map indicates what knowledge, methods and theory can be found in Facilities Management research. Knowledge mapping is a step in creating an inventory of knowledge (i.e. the knowledge base) and developing/improving the processes of knowledge sharing in research, education and practice. Theory Knowledge mapping and the knowledge map are discussed in terms of knowledge management and as connected to the facilities management profession, research and education. The knowledge map aims to contrast perspectives on how to map interdisciplinary research. Design/methodology/approach The Facilities Management Knowledge Map is based on a classification of 83 articles, including volume 2013 of Facilities (40 articles) and of the Journal of Facilities Management (21 articles) and all volumes (2010-2013) of the International Journal of Facility Management (22 articles), except 2013, issue 3. Findings. The Facilities Management knowledge map integrates eight different disciplines. Management is still the dominant discipline followed by engineering. Originality/value. Based on the knowledge map, both the research community and FMpractitioners can develop new models for identifying knowledge needs and gaps and improve knowledge sharing and knowledge flow and thus the fulfilment of their mission and goals. The knowledge map can also help in organizing research activities and analysing of the related flow and impact of knowledge

Keywords Facilities management, Knowledge management, Knowledge mapping, Knowledge map, Disciplines, Interdisciplinary 1 INTRODUCTION Facilities Management, FM, is developing towards an academic discipline in its own right with a focus on creating new knowledge that develops and supports the competences needed by professionals within FM. To succeed in this, FM has to be a multidisciplinary and applied

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research field. As a professional management discipline, Facilities Management has developed since around 1980, starting in large corporations in the USA, and it is today a global profession, particularly in more developed countries. Facilities management has in the last decades gone through a paradigm shift from a narrow technical focus towards a broader management focus (Andersen et al. 2012). Scientific inquiry in the field of Facilities Management, FM, will increasingly be found at the boundaries of traditional disciplines. The study of complex systems, such as integration between several disciplines such as management, technology and facilities, requires an approach that crosses disciplinary boundaries. FM research has its roots at the beginning of the 21st century and it is discussed from the perspectives of different disciplines, a development also seen in other socio-technical fields such as work organization, sociology of work, development of evidence-based research in health care, etc. (Nenonen and Lindahl 2012). This paper aims to draft a knowledge map of the fragmented and multidisciplinary research of and relevant to Facilities Management. The Facilities Management knowledge map indicates what knowledge, methods and theory can be found in Facilities Management research. FM in general integrates knowledge from civil engineering, architectural planning and business management. Knowledge mapping is a step in creating an inventory of knowledge (i.e. the knowledge base), identifying knowledge needs and gaps and developing/improving the processes of knowledge sharing in research, education and practice (Tandukar 2005). The paper presents an introduction based on the fields of FM and knowledge management, thereafter follows a section with findings from the a recent study, after which comes a conclusion pointing to relevant and crucial issues for knowledge management and development within the field of FM. 2 KNOWLEDGE MANAGEMENT, KNOWLEDGE MAPPING AND THE KNOWLEDGE MAP 2. 1 Concepts Research interest in knowledge management has grown rapidly. A large amount of research on knowledge management is conducted in academic and industrial communities (Suyeon et al 2003). The terms knowledge, knowledge mapping and knowledge map need to be defined. Knowledge is a set of data and information, to which expert opinion and experience is added, resulting in a valuable asset which can be used or applied to aid decision-making. Knowledge may be explicit and/or tacit, individual and/or collective. Knowledge mapping is an on-going quest within an organisation to survey, audit and synthesise the knowledge within an organisation. Auditing knowledge within an organisation identifies a knowledge gap and classifies, sorts and identifies the knowledge flow within the organisation. Synthesis is the ultimate stage in knowledge mapping where the processes, people and knowledge mapping tools are cleverly linked to each other and the relationships between them are elucidated. However, the absence of knowledge management approaches in the organisation, arguably, causes deficiency of structured and purposive knowledge mapping (Yasin and Egbu, 2011). According to Tandukar (2005), a Knowledge Map describes what knowledge is used in a process and how it flows around the process. It is the basis for determining knowledge commonality, or areas where similar knowledge is used across multiple processes. It describes who has what knowledge (tacit), where the knowledge resides (infrastructure), and how the knowledge is transferred or disseminated (social). The process of making the knowledge map is as important as the final product because it is impossible to create a single map that would meet the needs of every situation. The knowledge map is a navigation aid to

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explicit (codified) information and tacit knowledge, showing the importance and the relationships between knowledge stores and the dynamics of knowledge utilization. 2. 2 Facilities management and knowledge mapping According to Ventovuori et al. (2007), FM gradually became accepted as a service profession within the property and construction industries during the early 1980s. Nevertheless, academic research, publications and theoretical investigation into FM did not start until the 1990s (Price and Akhalghi, 1999). The first comprehensive review, evaluation and classification of academic research that has been published in the field of Facilities Management was conducted in a European context in 2007 by Ventovuori et al. Qualitative data was gathered from academic papers published in FM-related journals (i.e. Facilities, the Journal of Facilities Management, and the Nordic Journal of Surveying and Real Estate Research – Special Series) and in conjunction with academic conferences (i.e. the European Research Symposium in Facilities Management and the CIB W70 Symposium) between 1996–2005. In this study, the research papers were classified according to the FM topics examined in them, the type of research performed and the reporting of data-gathering methods used in the study, the background of the authors, the research field, and the research sector. The evaluation of the academic papers indicated that the reporting of the methods used, data collection and limitations is inadequate in many academic papers. However, to draw valid conclusions and align FM research, methodological issues should be clearly delineated in research papers. In order to progress, the FM discipline must increasingly employ hypothesis testing and more robust data analysis techniques. Ventovuori et al. (2007) added a further remark that many papers could have been developed into pure research papers by referring to the existing body of knowledge. Then again, they also put forward the mitigating observation that “this is characteristic of a completely new or emerging area of research”. The need for knowledge management has been identified both in practice and in research on Facilities Management, for instance by Pathirage et al. (2012), who study the knowledge management practices in facilities organizations by using an intellectual capital framework. Another study was undertaken by Jensen (2009), who claims that one of the problems in the building industry is the limited degree of learning from experiences of use and operation of existing buildings. The development of professional FM can be seen as the missing link to bridge the gap between building operation and building design. He presents a typology of knowledge transfer mechanisms from building operation to building design based on a combination of knowledge push of requirements from building operation and knowledge pull from building design. The typology is further developed in Jensen (2012a), including knowledge pull of performance validation from FM and knowledge push from building construction. Knowledge transfer mechanisms have recently been studied more generally by Zuo et al. (2013). However, these studies of knowledge management practices and knowledge transfer mechanisms are concerned with how knowledge is managed, while knowledge mapping is concerned with which knowledge is used or the characteristics of this knowledge. The interest in knowledge management and knowledge mapping is global. E.g. the literature review and survey interviews amongst facilities managers in Malaysia reveal that it is crucial to identify knowledge assets in an organisation very early on (Yasin and Egbu 2011). Through knowledge mapping, expected benefits can be fully exploited. Facilities managers in Malaysia realise the importance of their knowledge rich organisations being mapped. This is

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to ensure that they do well in the competitive business environment and gain recognition of their important role in supporting the prime activities of the clients’ organisations. Thus cultural differences and maturity of markets need to be considered as well when reflecting such results from the point of view of the European context. Pullen et al. (2009) continue that a lot could be learned from anthropologists always describing their own perspective. Extrapolation of strengths and weaknesses, in other words, needs to be in the sight of FM researchers. Alexander (2008) has noted: “FM research should respond to the need for real world, people-centred and action-oriented concepts and tools so that facility managers can act as “reflective practitioners”. Jensen (2012a) points out that Facilities Management research in the different Nordic countries has developed based on local conditions and opportunities. According to Pullen et al. (2009), facilities can be seen as business resources serving organizational goals. FM studies and specifically the usability studies seem to fill this gap because they study buildings and their effects from the perspective of the built environment. In the last two decades, there have been studies claiming that science is becoming ever more interdisciplinary. Science maps are used e.g. to investigate whether science is becoming more interdisciplinary. Porter and Rafols (2009) claim that interdisciplinary research is developing but in small steps — drawing citations mainly from neighbouring fields and only modestly increasing the connections to distant cognitive areas. An identified challenge in FM research, either in a multi-, inter- or a trans-disciplinary approach, is to manage both collaboration between fields of research and collaboration with the business life and other third parties in order to bring the results into practice. Another challenge is related to the interpretation of research results: the problems solved may well be complex but the industry and persons in practice might still articulate and interpret the results from the perspective of mono-disciplinarity. The research process, furthermore, varies depending on different approaches. It is always demanding to collaborate with representatives from a variety of disciplines, as there is the obvious risk of being considered weak and fragmented due to lacking research rigidity. One major challenge is, therefore, to design the research in such a way that a common language can be found. The common goal has to be shared by all representatives but the ways to achieve it can be designed differently, depending on the relevance of conducting the research in a multi-, inter- or trans-disciplinary way. In order to develop FM research and to manage the integration of methods, the research community has to engage in a discourse concerning the development of a possible FM methodology. As no method or approach is complete, the FM field will have to develop its own variety of research approaches and do that in a very conscious way. As it is not likely that specific FM research methods will develop, the capability to manage multi- and transdisciplinary approaches will be one determinant of quality within the FM research, focusing on people and spaces and how these relate both socially, economically and technically. This brings FM in the field of mixed methods approaches. Emphasis needs to be placed on the interdisciplinary nature of making patterns, as well as the collaborative construction of knowledge (Nenonen and Lindahl 2012). Doleman and Brooks (2011) have used grounded theory analysis to test the supposition of a Facility management Knowledge construct in a three-phase study focusing on analysing international tertiary Facility Management courses, critiquing course content through

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linguistic analysis to extract the knowledge categories. They identified: 24 most common Facility Management knowledge categories: Management, Business, Product, Environment, Facilities, Organisation, Systems, Organisational, Change, Analysis, Financial, Customer, Planning, Quality, Interior, Marketing, Development, Communication, Process, Materials, Service, Skills, Research and Design. Jensen (2012b) claims that in research FM has to be a multidisciplinary and applied research field – it integrates Strategic Management, Change Management, Sourcing Theory and Service Innovation, Organisational Economics, Value/Supply Chain Management and Performance Management, Sustainability, Environmental Management and Real Estate Management, including Space Management. 3 FACILITIES MANAGEMENT KNOWLEDGE MAP Processes of knowledge mapping have been discussed by various authors such as Kim et al. (2003), Egbu (2006), Ebner et.al (2006),Yang (2007), Grey et al (2009). The approaches towards knowledge mapping could be classified into three main categories: 1) gathering and capturing knowledge, 2) analysing knowledge and 3) linking the knowledge. Beyond the three activities of knowledge mapping, Kim et al. (2003) suggest that knowledge map validation should be included. Our study was exploratory with a focus on gathering and analysing knowledge from recent FM research with the aim to create an overview of the disciplines and theories that characterise the FM body of knowledge. 3.1 Sample Various knowledge types in 83 articles from academic journals were detected. They include volume 2013 of Facilities (40 articles) and of the Journal of Facilities Management (21 articles) and all volumes (2010-2013) of the International Journal of Facility Management (22 articles), excluding 2013, issue 3, which was published just after the data analysis and includes conference papers for World Workplace 2013. The sample does not cover all Facilities Management perspectives such as building maintenance, refurbishment or strategic asset management, which are published in Built Environment journals. The analysed papers represented Facilities Management studies geographically in the following way: 25 papers were from Europe, 22 from Asia, 19 from North America, 12 from Australia and New Zealand, 4 from Africa and one from South America. 3.2 Method The articles were analysed by a thorough scrutiny of the abstracts, supplemented by a screening of each full article to understand the use of theory and methodology, etc. For each article the following general information was collected:  Authors  Title  Country (categorized by first authors)  Purpose (as stated in the abstract)  Keywords (as stated)  Paper type (Conceptual, Empirical, Other). The articles were categorized according to the  Object of study (one main object for each article)  Focus of the paper (one main focus area for each article)  Theory (one or a combination of two theories for each article)

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Basic discipline(s) (two disciplines for each article – one was also possible but not relevant) Disciplinarity (Mono-, Multi-, Inter-, Trans-)

The categorization of the subject, focus, theory and basic discipline(s) was done inductively without predefined categories, but more general groupings were made based on the detailed categorisation. The more detailed categorization of the research was done deductively based on a model called ‘research onion’ (Saunders et al., 2012) in a slightly adapted version with the following parameters and categories:  Philosophy (Positivism, Interpretism, Pragmatism)  Approach (Deduction, Abduction and Induction)  Methodological choice (Quantitative, Qualitative, Mixed method)  Strategy (Survey, Archival, Case study, Literature study, Combinations)  Time horizon (Cross-sectional, Longitudinal  Techniques and procedures (No predefined categories). 4 RESULTS 4.1 Background analysis When analysing the papers by paper type, there were 17 conceptual papers and 63 empirical papers. One of the papers was opinion paper and two were more based on practice. The research philosophy mostly applied was interpretism (n=33), positivism was dominant in 27 papers, and pragmatism was applied in 23 articles. Articles characterised by interpretism were often based on analyses of subjective and qualitative data for instance based on interviews, while articles applying positivism typically calculated and/or analyses quantitative data, and articles characterised by pragmatism often developed normative models and decision support frameworks. Inductive approach was most used in the articles (n= 61). Deductive approach was used in 19 articles, while only two was seen to use a combination with abductive approach. The objects of the research were grouped into 6 different types as shown in Table 1. Most papers concerned specific processes or activities such as cleaning, construction and refurbishment (n=27), specific facility or industry types such as education, healthcare and shopping (n=22), specific building or asset types such as green buildings, historic buildings and real estate (n=15) or specific space types such as a psychiatric milieu, a workplace and outdoors (n=13). Some papers concerned specific equipment types such as ICT, building automation and air conditioning (n=5), and one paper was HR-related. Object Facility/industry type Process/activity type Equipment type Space type Buildings/assets HR‐related Total

Table 1 Subjects of research Facilities JFM 9 8 10 10 1 1 9 1 11 1 0 0 40 21

IJFM 4 7 3 3 4 1 22

Total 22 27 5 13 16 1 83

The focus of the research was grouped into 5 different areas as shown in Table 2. Most papers had a management process related focus such as decision making, procurement and design process (n=26), a performance-related focus on output such as building performance, energy performance and FM service performance (n=23), or an impact-related focus on outcome like design impact, FM service impact and stakeholder perceptions (n=23). A 252


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number of papers had focused on special considerations such as accessibility, design features and maintenance (n=9), and two papers gave research overviews. Table 2 Focus of research Focus Facilities JFM Impact‐related 16 5 Performance‐related 7 2 Management process related 11 9 Special considerations 4 5 Research overview 2 0 Total 40 21

IJFM 2 14 6 0 0 22

Total 23 23 26 9 2 83

The research strategy was in 4 cases archival research. Surveys were used in 27 papers, 27 papers were based on case studies and a literature study was the basis of 14 papers. Additionally, two papers had both survey and case studies. The methods were mostly mixed methods (n=34). When a paper had only one method, it was qualitative in nature in 23 papers and quantitative in 25 papers. It was possible to find mentions about the time perspective from 71 papers: most of the studies were cross-sectional (n=57) and only 14 represented longitudinal studies.

4.2 Analysis of Disciplines and Theories In relation to disciplines, there were no mono-disciplinary studies, and thus all studies combined knowledge from two or more disciplines. Almost all were categorized as interdisciplinary, but 3 papers concerning space management, workplace management and safety management, respectively, were seen as trans-disciplinary. The most common combination was by far without comparison management and engineering (n=35), but combinations of management and psychology (n=9) and architecture and health (n=8) were also quite frequent. Altogether nine basic disciplines were present as shown in Table 3. The field of sustainability and environment is included as part of management and engineering. Basic disciplines Architecture Economy Engineering Health Informatics Management Organisation Psychology Sociology Total

Table 3 Basic Disciplines Facilities JFM 15 1 1 7 22 10 9 1 0 0 25 17 0 0 7 4 1 0 80 40

IJFM 2 2 8 1 1 10 4 3 1 32

Total 18 10 40 11 1 52 4 14 2 152

For each paper the most important theory was chosen, and these were then grouped as shown in Table 4. The most common group of theories was related to performance management (n=11), including Post-Occupancy Evaluations (POE). Theories related to green buildings, energy and sustainable FM (n=11), value management/engineering/theory (n=9), environment-behaviour (n=8) and risk and safety (n=7), and design-related theories (n=6) 253


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were also quite commonly applied. A number of other theories were only used once or a few times.

Table 4 Theories Theory Facilities JFM Performance Management, incl. POE 6 4 Green buildings, energy and sustainable FM 5 Value management/engineering/theory 8 1 Environment‐Behaviour 7 1 Risk and safety 1 5 Design‐related theories 6 0 Cost and valuation 3 Sourcing and bidding 3 Decision process and support 1 1 Service management and quality 2 1 Human factors 1 Workplace and space management Lean management and partnering 2 Hygiene 1 Industrial management 1 Knowledge Management Leadership theory Profession Systems thinking Urban FM 1 Total 40 21

IJFM 4 6 1 0 1 1 2 3 1 1 1 1 22

Total 14 11 9 8 7 6 4 3 3 3 3 3 2 1 1 1 1 1 1 1 83

4.3 Summary of Results Based on Table 3 but with the inclusion of environment as a new basic discipline and reducing both engineering and management correspondingly and including informatics in engineering and organization in sociology, we reach a consolidated overview of basic disciplines as shown in Table 5. Table 5 Disciplines mostly applied to FM Facilities JFM IJFM Basic disciplines Architecture 15 1 2 Economy 1 7 2 Engineering, incl. informatics 17 10 3 Environment 5 0 6 Health 9 1 1 Management 20 17 4 Psychology 7 4 3 Sociology/organisation 1 0 5 Total 70 40 20

Total 18 10 30 11 11 41 14 6 130

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The results are illustrated in the spider diagram in Figure 1, providing a knowledge map of FM with the frequency of the 8 basic disciplines. Figure 1 The Facilities Management Knowledge Map Architecture 50 Psychology

40

Engineering

30 20 10 Management

Environment

0

Economy

Frequency of discipline

Health Sociology

Table 5 and Figure 1 show that Management is still the dominant discipline followed by Engineering. The remaining 6 disciplines have much lower frequency. It might be surprising for some that Economy has considerable lower frequency than Psychology, but a reason might be that Economy often is incorporated in Management and Engineering. It might also be surprising that (Sociology/organisation) has the without comparison lowest frequency, but a reason might be that particularly Organisation often is incorporated in Management. However, the overall picture confirms that FM basically is a management discipline, but also more specifically that FM as a research area is dominantly a Management Engineering discipline. 5 CONCLUSIONS The Facilities Management knowledge map provides a broad overview of current research and enables to understand the set of contexts within which the research exists. Based on the knowledge map it is also possible to discover unknown synergies and it can be used for communication purposes in the field of Facilities Management research. Both the research community and FM practitioners can develop new models for identifying knowledge needs and gaps and to improve knowledge sharing and knowledge flow and thus the fulfilment of their mission and goals. A knowledge map can also help in organizing research activities and analysing of the related flow and impact of knowledge. The overall picture from our study of the disciplines that FM is based on, confirms that FM basically is a management discipline, but also more specifically that FM as a research area is dominantly a Management Engineering discipline. The Facilities Management knowledge map provides information about the main areas upon which research has focused on so far. It is likely that it also points to an area where the research in the near future will be conducted. The management aspect of course also signals the focus on service management and FM organization being viewed as services rather than delivery of engineered products. 255


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The field of FM is likely to need to develop a view on the knowledge base not only from thematic or factual perspectives but also from a perspective encompassing the basis for service delivery, namely knowledge about clients’ needs. This would best be illustrated in the future by also looking more into the areas of sociology and psychology. Comparing and analysing of the Facilities Management knowledge map with knowledge maps in different fields would also increase the validity of the current work. The lack of empirical validation of this knowledge map is a weakness of this paper, although the map is presented for starting generic discussion rather than as final research. When integrating FM perspectives on a communal level, new challenges and issues can be identified. One such area could be the issue related to participation, which is also relevant for the emerging area of evidence-based design. How do we develop evidence-based designs from an FM perspective and what kind of approach is needed for a design that is tested and proven – perhaps evidence-based services? Subsequent research should demonstrate whether the knowledge map covers relevant perspectives and how it could be applied in different industry settings, including follow-up evaluations. Related to this question, it would be interesting to match a knowledge map with adequate information technology applications. In conclusion, it thus seems that the knowledge map shows the steps to be taken towards new Facilities Management research territory. REFERENCES Alexander, K. (2008), Usability: philosophy and concepts. In Alexander K (ed.) (2008): Usability of Workplaces. Phase 2. CIB W111 Research Report. Rotterdam, CIB Report 316. Andersen, P., Rasmussen, B. and Jensen, P.A. (2012), Future trends and challenges for FM in the Nordic Countries, In: Facilities Management Research in the Nordic Countries: Past, Present and Future. Eds. Jensen, P., A. and Balslev Nielsen, S. Lyngby: Polyteknisk Boghandel og Forlag, 2012, pp. 310-320. Doleman, R. and Brooks, D.J. (2011), A strategy to articulate the facility management knowledge categories within the built environment. The Proceedings of the 4th Australian Security and Intelligence Conference. Ebner, S., Khan, A., Shademani, R., Compernolle, B.M., Lansang, M.A. and Lippman, M. (2006), Knowledge mapping as a technique to support knowledge translation, Bulletin of the World Health Organisation, 84 (8), pp. 636-642. Egbu, C. (2006), The Role of Knowledge Communication and Knowledge Mapping in a sustainable Urban Environment, Output of and EPSRC supported study – EP/C009649/1, Glasgow Caledonian University, Glasgow, UK. Grey, D. (1999), Knowledge mapping: a practical overview, http://kmguru.tblog.com/post/98920 (site accessed on September 11, 2013). Jensen, P.A. (2011), Facilities Management research in the Nordic Countries. EuroFM Insight, Issue 18, July 2011. Jensen, P.A. (2012a), Knowledge Transfer from Facilities Management to Building Projects: A Typology of Transfer Mechanisms. Architectural Engineering and Design Management, 8: 170–179. Jensen, P. A. (2012b), Facilities Management – Academic Identity. Centre for Facilities Management – Realdania Research. Technical University of Denmark. Kim, S., Suh, E. and Hwang, H. (2003), Building the knowledge map: an industrial case study, Journal of Knowledge Management, 7(2), pp. 34-55. Nenonen, S. and Lindahl, G. (2012), Interdisciplinary Approaches, Obstacles and Possibilities – Experiences from Facilities Management Research. Proceedings of EFMC 23rd - 25th of May, 2012 Copenhagen, pp. 263-274.

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Pathirage C., Haigh R., Amaratunga D. and Baldry D. (2008), Knowledge management practices in facilities organisations: a case study. Journal of Facilities Management 6(1), pp. 5–22. Porter, A.L., & Rafols, I. (2009). Is Science Becoming more Interdisciplinary? Measuring and Mapping Six Research Fields over Time, Scientometrics, 81(3), pp. 719-745. Price, I., & Akhlaghi, F. (1999), New patterns in facilities management: Industry best practice and new organisational theory, Facilities, 17(5/6), pp. 159–166. Pullen, W.R., Van der Voordt, T.J.M. and Hanekamp, J. (2009), Input for the 2015 FM research and action agenda, Proceedings EFMC 2009 Research Symposium, Amsterdam, The Netherlands. Saunders, M.N.K., Lewis, P. and Thornhill, A. (2012), Research Methods for Business Students (6th edition). Harlow: Pearson. Suyeon Kim, Euiho Suh, Hyunseok Hwang, (2003), Building the knowledge map: an industrial case study, Journal of Knowledge Management, Vol. 7 Iss: 2, pp. 34 – 45 Tandukar, D. (2005), Knowledge mapping. http://ezinearticles.com/?KnowledgeMapping&id=9077. (Site accessed 10.10.2013). Ventovuori, T., Lehtonen, T., Salonen, A. and Nenonen, S., (2007), A review and classification of academic research in facilities management. Facilities, 25 (5/6), pp. 227237. Zuo, M., Zhao, D. and Gao, P. (2013), Models for Describing Knowledge Transfer Mechanisms. Scientific Journal of Management Science and Engineering, 3(3). Yang, J. B. (2007), Developing a knowledge map for construction scheduling using a novel approach, Automation in Construction, 16, pp. 806-815. Yasin, F. and Egbu, C. (2011), Critical steps to knowledge mapping in facilities management organisation In: Egbu, C. and Lou, E.C.W. (Eds.) Proceedings of 27th Annual ARCOM Conference, 5-7th September 2011, Bristol, UK, Association of Researchers in Construction Management, pp. 603-612.

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Analysis of FM research subjects: a quantitative investigation of academic facility management publications between 2006 and 2012 Christian Coenen and Viola Läuppi Institute of Facility Management, Zurich University of Applied Sciences E Mail: [email protected]

ABSTRACT Background and Purpose: In other fields of research, meta-literature reviews are a common way of obtaining an overview of the covered content and key subjects of the discipline. In FM however, there are only a very few approaches for gaining an insight about key developments of the field. The purpose of this paper is to provide a comprehensive overview and analysis of the main subject areas of international academic facility management publications. Design/methodology/approach: This paper is based on a quantitative literature review. Data was gathered from academic papers published in FM journals (Facilities and Journal of Facilities Management) between 2006 and 2012. Findings: Almost 400 articles were classified into the 10 FM subject areas defined in EN 15221-1 (2006). The analysis and presentation of results shows that more than 70 percent of these articles fall within the areas of accommodation issues, technical infrastructure, and other support services. Only 15 percent of the research publications were based solely on quantitative data collection. Limitations: Only two of the journals were selected, although other outlets in fields such as engineering, architecture, and management also publish FM-related papers. Originality/value: In addition to a comprehensive presentation of results in relation to subject areas, this study also provides evidence of the development of topics between 2006 and 2012 and the balance of qualitative vs. quantitative methodologies. Practical Implications: The authors offer recommendations to FM authors and editors and present implications with regard to the future of the scientific FM discipline.

Keywords Facilities Management, Publications, Analysis, Qualitative Data, Quantitative Data.

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1 INTRODUCTION The discipline of FM is growing in importance and is now seen as a key business sector, based on its economic importance and the number of jobs it has created. The steady growth of FM has also led to an increase in the demand for independent, high-quality, and evidencebased knowledge in this field. The FM literature is driven by a rapidly growing population of FM scholars and the loose-knit system of publication outlets that has emerged to publish their works. Such knowledge enables facility managers to make informed decisions about comprehensive assets and resource-intensive services. The international FM community is endeavouring to express this relevance through publications in research journals, thereby providing the FM community with the most important findings from research and practice. Regular reporting on topical content and projects can be found in a number of peer-reviewed research publications. Although there has been considerable publication activity in recent years, less attention has been directed to a systematic categorization of these scientific publications. There is no overarching transparency about the subject areas in which the recent published content is located and how the diversity of topics has developed in recent years. As far as we could ascertain, the only classification in the field of FM dates back several years and covers the period between 1996 and 2005 (Ventovuori, Lehtonen, Salonen and Nenonen, 2007). This suggests a need for further and more current investigations in order to obtain a structured overview of scientific FM publication activities within the last decade. Therefore, the primary objective in this meta-study is to provide a comprehensive overview of the main subject areas in international scientific FM publications since 2006. The subsequent sub-goals of this research can be described as follows:   

Which topics have been covered in scientific peer-reviewed FM publications since 2006? What kind of research methodology was employed in the research field? What implications can be derived from the findings?

Accordingly, emphasis is given to the value of a comprehensive analysis of the current state of FM literature for both academia and practitioners who need to understand the intellectual pillars of FM and the progression of the field. 2 PREVIOUS RESEARCH AND STARTING POINT In other fields of research, such as services marketing and international business, metaliterature reviews are a common way of obtaining a clear overview of the covered content and key contributors of the discipline. Most of these studies have determined the state of the field according to ratings by experts or authors (Fisk, Brown and Bitner, 1993; Inkpen and Beamish, 1994; Zeithaml, 2000; Grove, Fisk and John, 2003). Some of the reviews have researched topics in specific journals (Furrer and Sollberger, 2007; Pilkington and Chai, 2008), while others have determined research agendas using quantitative measures such as citation analysis (Kunz and Hogreve, 2011). As mentioned, the only previous noteworthy publication that the authors could identify in the field of FM dates back to 2007 in an article in Facilities (Ventovuori et al., 2007). In their article, the Finnish group of authors reported on research that covered publications within the period from 1996 to 2005. The authors used an inductive approach to categorize the various publications of two scientific journals – Journal of Facilities Management and Facilities – and two conference proceedings – CIB W70 and EFMC. In total, the authors categorized 584 publications within these 10 years, which represents an average of 58 publications per year. According to their work, the following key FM topics could be identified in the literature: technical issues, performance measurement, procurement, workplace, sustainability, and general trends in FM. The authors summarized their category findings by stating that “the empirical research papers published were most often classified under the topic FM general. 259


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This is quite logical, because this kind of research is needed to gain an understanding of the content and position of the new discipline and profession” (Ventovuori et al., 2007, p. 232). They also noted that the number of technical and performance papers was relatively equal and, together, these two categories comprised one-third of all the papers. The most common type of research performed was exploratory studies. The number of hypothesis-testing papers was relatively low, with only 26 papers (9.1 percent of the total) falling into this category. According to the authors, there were no methodology reviews. In the period between 1996 and 2005, case studies accounted for over 60 percent of the data gathered, and surveys accounted for up to 25 percent. Under the topic of FM general, surveys were defined as the most common data-gathering method (Ventovuori et al., 2007). The authors concluded that previous studies were rarely cited and that the research method or data gathering was often not described. They proposed that “to link practice and research more tightly, more papers should be related to the prior body of knowledge and previous research” (Ventovuori et al., 2007, p. 234). 3

RESEARCH METHOD AND ANALYSIS

3.1

Selection of Publications

Based on the findings of the Finnish authors, and also with regard to our above-mentioned research goals, we conducted an analysis of key scientific publications in Facility Management in order to provide an extensive overview of relevant FM publications. The secondary data analysis approach was applied to published FM research, because it provides a rigorous way to analyse and summarize the results of the previously published studies (Vartanian, 2011). Criteria for selection of the publications were as follows:   

Specific FM focus: Key FM topics are covered without overlapping with neighboring disciplines. Peer-reviewed: Specific scientific quality can be assumed. No works-in-progress: Only output-based publications that describe completed research are included.

Considering these key criteria, we selected the two most prominent scientific journals in the field – Journal of Facilities Management and Facilities – and excluded other publications from the analysis. Both journals cover the multidisciplinary topics of people, property and process management as stated by EuroFM as key foundations of FM. Both journals can be considered as strategic level journals for Heads of Facilities. In addition, Facilities is a CIB Encouraged Journal. Other potential journals from the built environment like e.g. Journal of Corporate Real Estate, Property Management or Engineering, Construction and Architectural Management were not included in the data analysis, because they show significant overlap with neighboring disciplines such as construction, architecture or engineering. Apart from the fact that conference presentations and corresponding proceedings are not generally considered as regular scientific publications, another reason for not including conference proceedings of CIB W70 and EFMC is the fact that the relevant and high-quality research content of these conferences typically appears (after a certain time gap) as scientific, peer-reviewed articles in one of the two selected journals.

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As Table 1 shows, we identified a total of 399 research publications (that is, an average of 57 publications per year over the seven-year period), which is similar to the figure that Ventovuori et al. (2007) found in their study.

Table 1: Overview of selected journal publications

3.2

Year

Facilities

Journal of FM

Total

2006

39

15

54

2007

40

20

60

2008

35

20

55

2009

36

21

57

2010

39

20

59

2011

38

19

57

2012

37

20

57

Total

264

135

399

Selection of Topics and Coding Procedure

The current research does not leave the Finnish findings about topics unaccounted for, even though we perceived the given category framework as too narrow. At approximately the same time as the Finnish publication (Ventovuori et al., 2007), a common and well-accepted EN norm (15221) was published that defines facility management and key terminology in this field. In our research approach, therefore, we used the EN norm to deductively categorize the published scientific work between 2006 and 2012. According to the EN norm, the scope of FM is split into two key parts and described as follows (EN 2006, p. 12ff.): 1. Space and Infrastructure  Accommodation  Workplace  Technical Infrastructure  Cleaning  Other Space and Infrastructure 2. People and Organization  Health, safety and security  Hospitality  ICT  Logistics  Other Support Services

In addition to categorizing the nearly 400 publications according to the EN norm topic categories, we also observed and documented the corresponding authors’ names, publication year, type of article, and research methodology. The selected articles were analysed and categorized according to the EN norm terminology. Appendices B.2. and B.3 of EN norm 15221 (2006, p. 12ff.) were used as a code book in coding the selected publications. These appendices describe in detail the scope of the respective categories. Proper coding was achieved by thoroughly reading the abstracts and, if necessary, the entire publication. Each 261


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publicattion was thhen matched to one o f the 10 ab bove-mentio oned sub-toopics of Sp pace and Infrastruucture and People and d Organizatiion. Likewiise, the documentationn and catego orization regardinng the choosen researcch methodoology of ev very publiccation was conducted. In this content analysis approach, a th he authors were able to determiine the keyywords in order o to determiine the mosst importantt content off the writing g. When thee coding out utput was deebatable, the authhors discusssed the result and agreeed on an accceptable solution.

4 RESULTS S This secction descriibes the outccomes of thhe quantitatiive analysis of the journ rnal papers in i focus. This seection onlyy describess the puree results without w anaalyzing them em for reaasons or justificaations. The analysis is provided p inn the discusssion section n. The 3999 research publications p s were writtten by 672 different au uthors. Sevventy percen nt of the publicattions were published by b 57 perceent of the au uthors. A to otal of 540 writers (that is, 80 percent) (co)authorred only on ne publicatioon, while 20 2 percent (132 authorss) participatted in at least tw wo articles. 4.1

Key Topics

During the publicaation period d 2006–20122, the distribution of reesearch pubblications acccording to the toopic scope of o the EN norm can be described as a shown in n Figure 1. 30,0% 25,0%

Namings in %

20,0% 15,0% 10,0% 5,0% 0,0%

Figure 1: Key topics according to the t scope of EN E norm

In categgorizing thee key topicss, the authorrs analyzed d the publicaation titles and created d a word cloud thhat represennts the key y terms of aall 399 pub blication tittles. The sizze of the words w in Figure 2 reflects thhe frequenccy with whhich they arre mentioneed in the puublication tiitles. By

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leaving out terms like facilityy, facilities aand manag gement, it beecomes appparent that the t most frequenntly mentionned terms in nclude buildding, constru uction, main ntenance annd performa ance.

Figure 2: Word W cloud representing thee frequency off used termino ology in publiication titles 4.2

Type of Publlication

The twoo journals inn focus have a commonn categorizaation of pub blication typpes, as descrribed below1. The authorr of each pu ublication chhooses the type t when submitting s tthe manuscrript to the edittor. Researcch paper. This T categorry covers paapers that report on an ny type of rresearch und dertaken by the author(s). The researrch may innvolve the constructio on or testinng of a model m or framew work, action research, teesting of daata, market research orr surveys, em mpirical, sccientific, or cliniccal researchh. Viewpooint. Any paaper whose content is ddependent on o the autho or’s opinionn and interp pretation should bbe includedd in this cateegory; this aalso includees journalisttic pieces. Techniccal paper. Describes D an nd evaluatess technical products, p prrocesses or services. Concepptual paper.. Papers thaat are not bbased on reesearch, butt do develoop hypothesses. The papers are likely to be discurrsive and w will cover ph hilosophical discussionns and com mparative w and thinking. studies of others’ work Case sttudy. Case studies describe actuaal interventiions or experiences wiithin organiizations. They m may be subjeective and do d not generrally report on research h. A descripption of a leegal case or a hyppothetical case study ussed as a teaaching exerccise would also a fit into this categorry. Literatuure review. It is expeccted that alll types of paper p cite any a relevannt literature, so this categoryy should onnly be used d if the mainn purpose of o the paperr is to annootate and/or critique the literrature in a particular subject areea. This cou uld include a selectivee bibliograp phy that providees advice onn informatio on sources, or a more comprehens c sive attemppt to cover the t main contribuutors to the developmeent of a topicc and explo ore their diffferent viewss. Generaal review. This T categorry covers tthose paperrs that prov vide an oveerview or historical h examination of som me conceptt, techniquee, or phenom menon. Thee papers aree likely to be b more descripttive or instrructional (“h how to”) thaan discursiv ve.

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77,4%

8,0%

8% 4,8

4,5%

2,8%

1,3%

1,3% %

Figure 3: Disttribution of pu ublication type 1

Source: E-Mail correspondence wiith Emma Steeele, Editor of Emerald Grou up Publishing on April 15th h, 2013.

More thhan three-quuarters of th he almost 4 00 publicattions were categorized c as research h papers, while oonly 8 perceent were cattegorized caase studies. Fewer than n 5 percent of the publlications were caategorized as a conceptuaal papers orr literature reviews (seee Figure 3). 4.3

Timeline

When w we split thee time perio od of seven years into two separate time winndows of 3– –4 years (that is,, 2006–20099 and 2010–2012), wee only deteccted a few abnormalitie a es between the two time peeriods. Mostt key topics are represeented in a more m or less balanced w way in both periods. Howeveer, key topics like ICT and Healthh, Safety & Security sig gnificantly ggrew in imp portance in termss of the num mber of publications (seee Figure 4)).

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30% O Other Support Services Accommodattion

25%

2006 - 2009

20%

Workplace

15%

Techn nical Infrastru ucture

10%

5%

Logistics O Other Space and a Infrastructure Hospitality Cleaning

0% 0%

5%

Health h, safety and security s T ICT

10%

15% %

20% %

25% %

30% %

2010 - 2012 2 Figure 4: Publication ns regarding kkey topics in period p 2006–2 2009 and 20100–2012.

4.4 Research Methodolog M gy nt) of all thhe published d papers caan be assignned to a qu ualitative Almost two-thirds (64 percen methoddology. Whiile 21 perceent cover quualitative as a well as quantitative methodolog gy, only 15 percent deal excclusively wiith quantitaative method dology. 100% 15%

90% 80%

21%

70% 60% 50% 40%

64%

30% 20% 10% 0% Quantiitative

Qualita ative and Qu uantitative Qualita ative Figure 5: Research methodology

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As can be seen in Figure 6, at least two research methodologies were represented in all publication types. Unsurprisingly, the most heterogeneous methodology field can be found in research papers and technical papers. Case studies and conceptual papers have the highest degree of qualitative methodology. Since research papers are by far the most present publication type (see Figure 3) and make up almost 80% of all papers analyzed, it can be stated that over half of these papers (57 %) base their findings solely on qualitative data, while almost one out of five papers use only quantitative data.

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

6%

18%

9%

11%

20%

11%

20% 20%

25% 94%

89%

91%

80%

89% 60%

57%

Qualitative

Qualitative and Quantitative

Quantitative

Figure 6: Research methodology per publication type 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

17%

11%

22%

19% 25%

58%

14%

Qualitative

25%

22%

15% 20%

20%

70%

20%

58%

71%

60%

9%

7%

27%

32%

64%

61%

33%

22%

75% 56%

Qualitative and Quantitative

67%

Quantitative

Figure 7: Research methodology per key topic

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5 DISCUSSION AND IMPLICATIONS The presented research results provide some interesting insights into the evolving field of FM research. This section discusses the key findings and provides some implications for this field.  Key Topics: With respect to the various fields of interest, it is apparent that the key topic “Other Support Services” is by far the most published area. This field covers articles about HRM, financial reporting, marketing, procurement, project management, and quality management. These areas mostly represent strategic tasks that have to be addressed by the general management with regards to FM. Ventovuori et al. (2007) found that most papers were in the field of “FM general”, and our results confirm this for the time period of 2006–2012. To the extent that these publications reflect the dynamics and evolution of the FM field as a whole, the following important question about the future of the FM field can be raised: “Is the FM field likely to concentrate toward an overriding paradigm or to fragment itself into numerous subfields?” A tendency towards one dominant direction could indicate that the FM literature has not yet reached its full maturity and is still evolving. In any case, further research is needed to gain more insight into this question.  Type of publication: On one hand, it seems clear that the vast majority of papers (77.4 percent) are categorized within the publication type research paper as scientific research journals have been analysed. On the other hand, it can be assumed that the authors of the submitted publications are not fully aware of the range of various publication types and are therefore too hasty to categorize their publication as research papers. For example, the above-discussed publication by Ventovuori et al. (2007) who focused on an analysis of FM publications between 1996 and 2005, was categorized by the Finnish authors as a research paper. As the only meta-literature review during the time period in focus, it entirely fulfils the criteria for being categorized as a literature review. Therefore, in the future, categorization of the publication type should be communicated more carefully by editors and selected more carefully by authors to make sure that the categorization is appropriate. There is a clear need for more diversity within the publication types.  Time line: While most of the 10 key topics are distributed fairly equally along the time line of seven years, ICT and Health, Safety & Security significantly gained importance with regard to the number of publications. There are several reasons for this. Legal specifications and safety regulations have attracted increasing attention in the FM field, which means that the increase in publication output seems plausible. Likewise, for a field like information and communication technology (ICT), seven years is quite a long period with a number of innovative modifications that enable facility managers to better service the needs of clients, customers, and users. Consequently, the publication activity in this topic is above average within the last three-year period.  Research methodology:

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To assess the methodological state of the FM literature, it was useful to study the relative importance of conceptual and empirical papers and the relative importance of qualitative and quantitative studies. Thirty-six percent of the analysed publications involve quantitative methodology. Within the research paper category, the quota of quantitative methodology is even higher, at 43 percent. Due to the above-described different methodological approaches in assessing the quantitative and qualitative methodology in use, it is not possible to directly compare the results of Ventovuori et al. (2007) with those of the present study. Nevertheless, it should be noted that the Finnish authors assessed 53 percent (that is, 308 empirical papers), of which 64 percent involved qualitative methodology, such as case study or action research. Therefore, the quantitative share of approximately one-third of the research paper category remains stable compared to the 1996–2005 time window. There is no doubt that qualitative and quantitative methodology both have great relevance for scientifically discovering and exploring the field of FM. Both methodologies have their raison d’être for scientific progress in the FM field, but one might expect that after the period of “Crawling Out” with a majority of qualitative and normative research, the number of quantitative approaches increases during the “Scurrying About” and “Walking Erect” periods (Fisk et al., 1993). According to the present findings, however, this is not the case. While some progress has been made to further explore the field of FM, there still seems to be a lack of best available scientific evidence that facilitates managerial decisions and organizational practices. This could also be one reason for the apparently intense discussion and justification of the FM community about the strategic relevance (Ware and Carder, 2012; White, 2013) and the value of FM (Jensen, van der Voordt and Coenen, 2012; Coenen, Alexander and Kok, 2013). In order to progress, the FM discipline should continue to increasingly employ hypothesis testing and more valid data analysis techniques. Limitations This study has certain limitations. One limitation is the number of selected journals. We selected only two of the journals, although other outlets in fields such as engineering, architecture, and management also publish FM-related papers. Conference proceedings, books, and dissertations are also important sources of FM research. The large amount of FM publications made it virtually impossible to include all such publications in the analysis. Future research along these lines should attempt to include other academic publications from neighbouring scientific fields. However, we are confident that the selection of these FM journals makes the results valid and reliable. One important question that the scope of this paper did not allow to be answered is: “What are the major theoretical developments that have occurred in the field?” From a theoretical point of view, it would have been interesting to investigate what kind of theories have been generated and whether these are the most likely to advance the FM knowledge base. Future research should act on this suggestion and emphasize the theoretical developments and applied frameworks within the FM research field.

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6 CONCLUSION FM has undoubtedly become more significant within the business community during the last two decades and the common European norm was a substantial step in getting a common understanding of this heterogeneous field. On the other hand, it must also be stated that, with regard to the scientific maturity of the discipline, FM can still be considered to be in an evolving state. Therefore, as a rather adolescent scientific discipline, FM remains in search of evidence for itself and for the primary activities. As an interdisciplinary research field, FM covers disciplines such as built environment, engineering, and management. The various researchers of these disciplines always have a choice regarding whether to aim to be published in an FM-specific publication or to submit their research work to a journal that focuses on a specific field of interest, such as architecture or management. To become more attractive for potential authors, the discussed FM journals should strive to improve their journal impact factors by stressing scientifically sound research work. Insights from this study and implications can serve as a basis for the improvement of research in FM. Additionally; the results should encourage an open discussion regarding the current state and future needs of FM research. Such discussion could result in more rigour in the FM discipline and, consequently, a better understanding of FM and FM research.

REFERENCES Coenen, C., Alexander, K. and Kok, H. (2013), “Facility Management Value Dimensions from a Demand Perspective”, Journal of Facilities Management, 11, 4, 339-353. EN European Norm (2006), Facility management - part 1: Terms and definitions, EN 152211, BSI, UK. Fisk, R., Brown, S. and Bitner, M. (1993), “Tracking the evolution of the services marketing literature”, Journal of Retailing, 1, 61-103. Furrer, O. and Sollberger, P. (2007), “The dynamics and evolution of the service marketing literature: 1993–2003”, Service Business, 1, 2, 93–117. Grove, S. J., Fisk, R. P. and John, J. (2003), “The future of services marketing: Forecasts from ten services experts”, Journal of Services Marketing, 17, 2, 107–121. Inkpen A. and Beamish, P. (1994), “An analysis of twenty-five years of research in the Journal of International Business Studies”, Journal of International Business Studies, 25, 703–713. Jensen, P. A., van der Voordt, T. and Coenen, C. (2012), The Added Value of Facilities Management, Polyteknisk Forlag, Lyngby. Kunz, W. and Hogreve, J. (2011), “Toward a deeper understanding of service marketing: The past, the present, and the future”, International Journal of Research in Marketing, 28, 231247. Pilkington, A. and Chai, K.-H. (2008), “Research themes, concepts and relationships: A study of International Journal of Service Industry Management (1990–2005)”, International Journal of Service Industry Management, 19, 1, 83–110. Vartanian, T. P. (2011), Secondary data analysis, New York/Oxford. Ventovuori, T., Lehtonen, T., Salonen, A. and Nenonen, S. (2007), “A review and classification of academic research in facilities management”, Facilities, 25, 5/6, 227-237.

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White, A., D. (2013), “Strategic facilities management, 1st edition, RICS Professional Guidance, Global”, available at: http://www.i-fm.net/documents/RICS-Strategic-FMGuidance-Note%2011_13.pdf (accessed November 11 2013). Ware, J., P. and Carder, P. (2012), “Raising the Bar: Enhancing the Strategic Role of Facilities Management, RICS Research”, available at: http://www.joinricsineurope.eu/uploads/files/17503RICSRaisingtheBarReport1_1.pdf (accessed November 12 2013). Zeithaml, V. (2000), “Service Quality, Profitability, and the Economic Worth of Customers: What We Know and What We Need to Learn”, Journal of the Academy of Marketing Science, 28, 1, 67-85.

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Competencies for Multi-, Inter- and Transdisciplinary Research in Facilities Management Research Suvi Nenonen Aalto University, Finland [email protected] +358 505 985 342 Göran Lindahl Chalmers University of Technology, Sweden [email protected] ABSTRACT Purpose The purpose of this paper is to map the skills and competencies needed in multi-, inter- and interdisciplinary research of facilities management. Design/methodology/approach – This paper is based on literature review in terms of multi-, inter- and transdisicplinary research in facilities management. Additionally interviews with researchers in interdisciplinary research projects in the field of facilities management were conducted. Findings –The results reflect the findings of the literature review, which point out that competencies in connection communication, collaboration and continuous learning are essential. The results provide guidance and support for research community in developing the integrated research approach to the field of facilities management. Research limitations/implications – This research offers insights into the characteristics of research where more than one discipline is needed. One limitation of this paper is the small amount of interviewees. The longitudinal study during the research process could provide data also from development of competence and capability. Originality/value – This paper helps researchers to identify the challenges of integration of different disciplines. The results can be used also in educational purposes in terms of training researchers towards future research challenges. Keywords Facilities Management Research, Multidisciplinary, Interdisciplinary, Transdisicplinary, Competences

1 INTRODUCTION Integration is a concept used in connection with facilities management profession to point to the need and possibilities related to complementing professional skills and knowledge. Integrated facilities management can refer e.g. to the proportion of diverse services, integration of variety of networks, integration of strategic, tactic and operational processes. Facility management (or facilities management or FM) has been defined by IFMA (International Facilities Management Association) an integrated multidisciplinary, interdisciplinary field devoted to the coordination of space, infrastructure, people and organization, often associated with the administration of office blocks, arenas, schools, 271


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convention centers, shopping complexes, hospitals, hotels, etc. The latest definition is: Facility management is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology (Anon. 2014). What does this integration mean for facilities management research? How can a multidisciplinary and interdisciplinary field be investigated in a coherent and methodically reliable way? Facilities Management studies, and specifically the usability studies, have focused on buildings and their effects from the perspective of the built environment thus stepping right into a multidisciplinary area of both research, practices and users. Facilities management research has its roots in the beginning of the 21st century and the starting point was a discussion if facilities management is a discipline or not (Wagenberg 1997). By now Junghans and Olsson (2014) states that based on recent developments in the field, facilities management meets several of the criteria that qualify a subject as an academic discipline. However an identified challenge in FM research, whether in a multi-, inter- or a trans-disciplinary approach, is to manage both collaboration between fields of research and collaboration with the business life and other third parties in order to bring the results into practice (Nenonen and Lindahl 2012). In order to develop FM research and to manage the integration of methods, the research community has to engage in a discourse concerning the development of a possible FM methodology. As no method or approach is complete, the FM field will have to develop its own variety of research approaches and do that in a very conscious way. As it is not likely that specific FM research methods will develop, the capability to manage multi- and trans-disciplinary approaches will be one determinant of quality within the FM research, focusing on people and spaces and how these relate socially, economically and technically. This brings FM in the field of mixed methods approaches. However, a mixed methods approach without a conscious methodological approach of over several research projects will not support the development of the FM discipline research. Emphasis instead needs to be placed on the interdisciplinary nature of making patterns, as well as the collaborative construction of knowledge (Nenonen and Lindahl 2012). This paper aims to answer questions concerning what kind of competences are needed in order to respond to demands on research integrating different disciplines. This is done by applying the concepts of multi-, inter- and transdisicplinary research to facilities management research as well as by collecting and analyzing qualitative empirical data. 2 MULTI – INTER – TRANSDISCIPLINARITY AND FACILITIES MANAGEMENT RESEARCH Terminology in connection with more than one discipline is not quite consistent. E.g. Klein (2006) provides a taxonomy of interdisciplinarity and he offers a synthesis of discussions on “the genus Interdisciplinarity”, including multidisciplinarity, interdisciplinarity and transdisciplinarity. Multidisciplinarity is distinctly different from Interdisciplinarity because of the relationship that the disciplines share. Within a multidisciplinary relationship this cooperation may be mutual and cumulative but not interactive (Augsburg 2005). The variety of studies in facilities management needs support from several scientific approaches. The multidisciplinary approach targets the theoretical and methodological development of facilities management. The starting point is often situated in technical sciences, building performance and built environment. Additionally some studies of facilities management lean on business sciences. However also the humanities: the psychological, social, cultural-historical and socio-economic dimensions to human actions are needed to complement the field of facilities management. A multidisciplinary theory may be based also on the following disciplines: psychology, cognitive science, socio-psychology, aesthetics,

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design research, communications research, media sciences (information and communication technologies), art history, ethnology, cultural anthropology, sociology, economics, consumer economics, environmental sciences, work sciences, physiology, chemistry, physics, information technology and computer science. In order to have a visual tool to position the relevant disciplines and methods beyond diverse disciplines, Nenonen and Lindahl (2012) presented a three-dimensional prism of different disciplines, an application of a model developed by Anttila (1999). A research environment in general includes also subenvironments: the human, social, cultural, technical, economical and natural environments. In the prism model the research object can be positioned in the three-dimensional prism and it can be moved around in order to position the research object among different disciplines (Figure 1). Figure 1 A three-dimensional prism of different disciplines

Human being Psycho-physical environment Nature Natural environment

Culture Environment of artefacts RESEARCH OBJECT

Technology Technological environment

Economy Economical environment

Community Social environment

Interdisciplinarity blends the practices and assumptions of each discipline involved. (Augsburg 2005). The most widely cited definition of interdisciplinarity is that used the Organisation for Economic Cooperation and Development (OECD) (see e.g. Madsen, 2012): Interdisciplinary - an adjective describing the interaction among two or more different disciplines. This interaction may range from simple communication of ideas to the mutual integration of organizing concepts, methodology, procedures, epistemology, terminology, data, and organization of research and education in a fairly large field. An interdisciplinary group consists of persons trained in different fields of knowledge (disciplines) with different concepts, methods, and data and terms organized into a common effort on a common problem with continuous intercommunication among the participants from different disciplines. Alexander (2008) has noted: “FM research should respond to the need for real world, peoplecentred and action-oriented concepts and tools so that facility managers can act as reflective practitioners.” This statement relates to the disciplines of human and organisational behaviour within business and economic studies. Jensen (2011) also points out that Facilities Management research in the Nordic countries has developed based on local conditions and opportunities. The business environment in cultural context seems to be relevant both in practice and research. The previous approaches can be identified also from the statement by Pullen et al. (2009): “Facilities can be seen as business resources serving organizational goals.” In the last two decades, there have been studies claiming that science in general is becoming ever more interdisciplinary. Porter and Rafols (2009) claim that interdisciplinary

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research is developing but in small steps — drawing citations mainly from neighbouring fields and only modestly increasing the connections to distant cognitive areas. Additionally Nenonen and Lindahl (2012) state that in order to develop facilities management research the FM research community have to be more skilled in integrating methods. In Facilities Management research the interdisciplinary nature has been identified e.g. through the development of the Facilities Management knowledge map (Nenonen et al 2014, forthcoming). The knowledge map provides a broad overview of current research and enables understanding of the set of contexts within which the research exists. The FM Knowledge Map confirms that FM basically is a management discipline, but also more specifically that FM as a research area is dominantly a Management Engineering discipline. The management aspect signals the focus on service management and FM organizations being viewed as services rather than delivery of engineered products. A visualization of the approach to interdisciplinary workplace management research is the design workplace discipline clock. The idea behind this visualisation is a philosophical statement by Wilenius (1972). He stated that the phenomena can be viewed as thoroughly investigated after approaching it from 12 different perspectives. If one sets the research object workplace into the middle of the workplace discipline clock, one can form different kind of research designs with research questions and methods suitable for understanding the phenomena as a complex system (Figure 2).

Figure 2 12 different approaches to workplace

Individual Sustainable Producable Technological

12 11

Physical 1

10 Work‐ place

9

Material

3

8

4 7

Societal

Symbolic

2

Historical Economical

5 6

Servicable

Organisa onal

According to Lattuca (2001), transdisciplinary, the greatest degree of synthesis is “the application of theories, concepts, or methods across disciplines with the intent of developing an overarching synthesis”. However, there seem to be different interpretations of transdisciplinarity and of the dividing lines between inter- and transdisciplinarity. According

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to Rosenfield (1992 transdisciplinarity is a process by which researchers work jointly develop and use “a shared conceptual framework, drawing together discipline-specific theories, concepts, and approaches to address a common problem”. This is supported by Stokols et al., who highlight (2003) that Rosenfield’s requirement that participants in transdisciplinary research develop a shared conceptual framework, which integrates and transcends their respective disciplinary perspectives, is a stringent criterion for scientific collaboration. In terms of transdisicplinary facilities management research the research fields and topics like sustainability, added value and sustainability (Junghans 2011) is a representative of this approach. These research fields have succeeded combine two or more distinct academic fields. The research is based on new language or theory that is broader than any one discipline. The intention to develop fully synthesized methods and shared publications, probably using at least some new concepts developed for translation across traditional lines can be identified within these research fields. European collaboration among diverse researcher with different backgrounds has taken place in many years. In terms of collaboration one can also discuss about transdisicplinary actions in FM research in Switzerland, where the research has been driven collaboratively by the Institute of FM and the industry. The focus is on application, e.g. management tools, benchmarking systems or the relationship of FM services, organisational outcomes, and customer satisfaction (Widlinger et al. 2014). The development of facilities management research have included experience of multi-, interand transdisicplinary research. The interesting question is how the researchers experience the research work within the field of facilities management – especially in terms of competencies. 4 RESEARCH The qualitative approach of this paper was conducted by interviewing doctoral and post doctoral researchers in two different two year long research projects, which combined the fields of architecture, psychology, real estate management and physics. The interviews were open and explorative and structured around four primary topics: the researchers background, ambition in research context, and the step-by-step description of the phases taken in competence development in the context of two interdisciplinary and complex projects they were involved with. Working with inductive and deductive qualitative content analysis the interviews were analyzed in terms of competence mapping. The researchers identified the key terms, which deemed to be relevant and important to the research question from the transcripts of interviews. The key phrases connected to key terms were then identified. In the last step of analysis the phrases were reduced and created by placing phrases with the same focus together in a cluster. The main competences identified were categorized to three main clusters: communication, collaboration and continuous learning. 5 RESULTS 5.1. Communication Communication and sharing was found extremely important both internally and externally. The results indicate that disciplinary boundaries are most thoroughly transcended when

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members of disparate fields develop a common language that facilitates a shared conceptual framework. This level of collaboration has the most potential for originality, but occurs least often because developing a common language is a long and socially embedded processes. Second to the shared understanding and semiotic challenges an important competence is the ability, skill and will to work with collaborative digital platforms. As a reference one interviewee mentioned science 2.0 approach, which is developed by applying Web 2.0 approaches to scientific research (Anon. 2007). Web 2.0 is about conversations, about participation in the flow of information. Web 2.0 uses many new approaches for dealing with information including wikis, weblogs etc. These often require the active participation of users. In practice this means that the shared digital platforms for the research documentation, communication and collaboration are important tools, which need to be set up as early as possible. The external communication is connected with building of identities. The interest of the interdisciplinary research is usually high, but the challenge is to find the channels and forums to disseminate the results. This is discussed also in the following section about collaboration. 5.2. Collaboration Interdisciplinary studies involve researchers in a process with an objective to connect and integrate several academic schools of thought, professions, or technologies - along with their specific perspectives - in the pursuit of a common task. The connection and integration demands time in the early phase of research process. The focus can nor be identified or kept if there has not been enough time to develop the common understanding in the beginning of the research process. The former knowledge about different fields of research is essential to share, communicate and understand. Respect for the scientific process was identified as an important corner stone of collaboration. Researchers made progress by using the scientific methods and comparing different interpretations of data to the research object also in the larger context, which often lie at the frontiers and boundaries of science. Additionally the respect for variety of research forums and societies is important: what are the forums of disseminate the results, what are the ways to deliver them. However it was discussed that here is a traditional rivalry between disciplines and also that most of the universities have disciplinary-based traditions. Such traditions have consequences and affect e.g. the possibilities to disseminate the results. The results of an interdisciplinary project, however, should not be less published and disseminated due to the lack of relevant forums. 5.3 Continuous learning Learning from mistakes was described as training during the process. This competence is easy to achieve if there is trust between the individuals. In order to validate interpretations of results and reliable explanations researchers need to understand different methodological research designs with respect to the research traditions coming from different disciplines. This understanding demands internationalization of more or less new fields and is a learning process as such. Management of interdisciplinary research projects is also an important part of the successful process and demands skills both in leadership and management. The time management aspect was identified as an important task for research management. In comparison of mono disciplinary process the weight of time use is different: the orientation and design phase takes more time in the beginning of the process than traditionally experienced. The most important first task for management in interdisciplinary research is to integrate the working team in the early phase of the project. The manager need to take care of and facilitate also about the “social clue” within the research group – the co-ordination, identification of synergies and encouraging of different disciplines to co-creation processes are as important as looking for the quality of the research. The challenge is that there are no specific criteria and means to

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evaluatee the interdisciplinary projects p in comparison n with tradittional discippline based projects and outtcomes. To sum m up the threee main clu usters of com mpetencies with sub co ompetenciees can be deeveloped during tthe process. From com mmunicationn one can sh hift to collab boration andd based on the built trust onne can movee forward to o continuouss learning (F Figure 3). Figure 3 Developm ment of com mpetences w within the intterdisciplinaary researchh process

C Continuous learning

Communic cation

Collabortio n

The conntinuous leaarning is alsso co-learninng and can be transform med to co-ccreation. 6 CONCLUSION NS mpetencies of multi-, interi and trransdisicpliinary researrch need to be respond d to four The com differennt challengees. They are: • Communication challeenge in connnection with h developin ng the comm mon languag ge. • Collaboratiion challeng ge in connecction with trrust building. • Interpretation challeng ge in internaal learning within w the reesearch grouup and proccess. xternal audiience to learrn more • Disseminattion challenge in providding possibiilities for ex too – not onnly disciplin ne-based finndings but the t findings which coulld not have been reached witthout collab boration bettween discip plines. The quuestion is, if i the identtified comppetences or challengess are differrent in the field of facilitiees managem ment researcch compareed to other fields of reesearch. Thhe response is most likely nno - the com mpetencies are a most likkely similar in all areas, where ther ere is more than t one disciplinne relevantt and/or applicable in the processs. Howeveer the empir irical data provides p issues, which are important to reflect on in the transformattion of faciilities manaagement researchh. Alexandeer (2008) e.g. states thhat the task k for facilitiies managem ment researrch is to approacch more tow wards facilitties manageement and so ocial constrruction. A limitaation of thiss study is in n the small data, which h naturally effects e to thhe generalizzation of the resuults. Additioonally the projects p wheere the interrviewed researchers actted were deefined to be interrdisciplinaryy. The amou unt of diverrse projects could have been addedd more perspectives to the ddata. The intteresting ressearch topicc, as a conttinuity of th his study could be to focus on cycles c of competence devellopment: th he backgroound facto ors like ed ducation annd experience are h or enablers for compettence develo opment. assuminngly either hindrances The traansformation towards more multti-, inter an nd transdiscciplinary w ways of con nducting researchh as well ass using a co oherent mixxed methodss indicate th he ways in which the research r

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process is a process of co-creation and co-learning. It is important to develop skills of listening and dialogue, increase the trust and develop step by step the criteria for valid and reliable rich research. REFERENCES Anon. (2007), What’s Science 2.0? http://www.spreadingscience.com/ourapproach/what-isscience-20/ (site accessed on 22-01-2013). Anon. (2014), What is FM. www.ifma.org/know-base/browse/what-is-fm- (site accessed on 02-02-2014). Alexander, K. (2008), Usability: philosophy and concepts. In Alexander K (ed.) (2008): Usability of Workplaces. Phase 2. CIB W111 Research Report. Rotterdam, CIB Report 316. Anttila, P. (1999), Tutkimisen taito ja tiedon hankinta, Akatiimi Oy, Hamina. Augsburg, Tanya (2009), Becoming Interdisciplinary: An Introduction to Interdisciplinary Studies. Dubuque: Kendall/Hunt. Jensen, P.A. (2011), Facilities Management research in the Nordic Countries. EuroFM Insight, Issue 18, July 2011. Junghans, A. (2011) European FM Research Agenda. In Jensen P.A. and Balslev Nielsen, S. (Eds.) Facilities Management Research in Nordic Countries – Past, Present and Future. Polyteknisk Forlag. Copenhagen. Pp. 325-339. Junghans, A, and Olsson, N.O.E (2014) Discussion of facilities management as an academic discipline. Facilities, Vol. 32 Iss: 1/2, pp.67 – 79. Klein, J. T. (2006), Afterword: The emergent literature on interdisciplinary and ransdisciplinary research evaluation. Research Evaluation, Vol.15 Iss:1, pp.75-80. Lattuca, L. R. (2001), Creating interdisciplinarity: Interdisciplinary research and teaching among college and university faculty. Vanderbilt University Press. Madsen, D. (2012), Interdisciplinarity in the information field. Proceedings of the 75th ASIS&T Annual Meeting. Baltimore., 49 1-6. Nenonen, S. and Lindahl, G. (2012), Interdisciplinary Approaches, Obstacles and Possibilities – Experiences from Facilities Management Research. Proceedings of EFMC 23rd - 25th of May, 2012 Copenhagen, pp. 263-274. Nenonen, S., Jensen, P.A and Lindahl, G. (2014), Knowledge Map of Facilities Management, forthcoming in EFMC 2014 proceedings. Porter A.L. and Rafols, I. (2009), Is science becoming more interdisciplinary? Measuring and mapping six research fields over time. Scientometrics, Vol.81, pp. 719–745. Pullen, W.R., Van der Voordt, T.J.M. and Hanekamp, J. (2009), Input for the 2015 FM research and action agenda, Proceedings EFMC 2009 Research Symposium, Amsterdam, The Netherlands Rosenfield, P. L. (1992). The potential of transdisciplinary research for sustaining and extending linkages between the health and social sciences. Social Science & Medicine, Vol. 35, Iss. 11), pp. 1343-1357. Stokols, D., Fuqua, J., Gress, J., Harvey, R., Phillips, K., Baezconde-Garbanati, L., and Trochim, W. (2003), Evaluating transdisciplinary science. Nicotine & Tobacco Research, 5, pp. 5-21. Wagenberg, A.F. (1997), Facility Management as a profession and academic field. International Journal of Facilities Management, Vol.1, pp.3-10. Wilenius, R. (1972) Tietoisuus ja yhteiskunta. Jyväskylä:Gummerus. Windlinger, L., Hofer, S. Coenen, C. Honegger, F., von Felten, D., Kofler,A. and Wehrmüller, T. (2014) FM research in Switzerland, Facilities, Vol. 32 Iss: 1/2, pp.18 – 26.

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SECTION NINE: HIGHER EDUCATION FACILITIES MANAGEMENT Introduction Higher education facilities management Mark Mobach Hanze UAS Groningen, The Hague UAS University of Groningen, Wageningen University

Papers Academic Identities and Spatial Narratives Kaisa Airo A new way of working: the case of a multipurpose office room in Laurea UAS Pauliina Nurkka and Marjo Pääskyvuori. Reporting Sustainability in Facility Management Andrea Pelzeter.

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Introduction HIGHER EDUCATION FACILITIES MANAGEMENT Mark P. Mobach Hanze UAS Groningen, The Hague UAS University of Groningen, Wageningen University The facilities in higher education seem before major changes. Enabling technologies allow students and staff to communicate differently. As in new ways of working, technology in higher education also allows for time and place independency. There may be a risk that the university socially disassembles and the tying together of students and staff in universities may be a serious future challenge for facility managers. How will scholars disseminate knowledge when there is no one to teach? In this context, it is important to understand what the meaning of a university is. There are many related questions yet to be explored. Is the university solely a place to disseminate knowledge? Is the university disappearing, just as the developments at the cd-outlets have shown us and from which many public libraries are currently suffering in several European countries? What is the role of the e-reader? What will happen if authors of study books make links to film in their books explaining their theories and ideas, allowing other scholars to add film footage and refine or disapprove with the theory? What about TED talks, the Khan Academy, and the concept of the flipped class room? Perhaps this all stimulates profound emancipation of students. Our students will meet digitally with the best professors in the world making us smarter by the day. But it also illuminates questions such as with what facilities a university preserves its social glue with mutual contact and understanding between staff and students, how teachers keep their students motivated if they do not meet, and to what extent spatial dimensions still have any relevance for contemporary universities? Most of us also know that this description of enabling technologies is only a partial truth. On one side, the university as we know it, with fixed spatial units and fixed time schedules may be slowly disappearing. On the other however, we are not yet sure if university facilities are indeed disappearing or if it only is a figment in the imagination of futurologists, a technology-driven utopia with hardly any realism. Overly optimistic expectations neglect the fact that the university is also a social system. A place were young people meet and need to meet because they can learn from each other and from their teachers as well as it is a place to make new friends. The university is not only a place to learn and sit in class quietly. Neither is it only a webpage on which you can source new knowledge digitally, it is part of a complex social network of students. The contribution of Kaisa investigates how the professional identity of the university employees impacts their experience of the workplace. By reflecting identities and using narratives she will demonstrate that the physical workplace has a role in enforcing or deconstructing the professional identity of university employees, and in addition, that the experience of the workplace is a culturally constructed complex process. Nurkka and Pääskyvuori focus on designing a multi-purpose office through learning by developing. In the design process FM-students were partly involved in the design and introduction of a new multi-purpose office for twenty staff members. The researchers reported positive results with respect to satisfaction with the work and atmosphere, communication practices, and the 280


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functionality of the new office; reported problems were interruptions in concentration. Pelzeter contends by taking the perspective of sustainability. She has argued that sustainability reports in the FM sector are becoming more widespread and that half of the studied reports had a systematisation of the contents. Consequently, FM-specific content can already be found in part in the current sustainability reports of FM-companies.

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Academic Identities and Spatial Narratives Kaisa Airo Phd. Student Aalto University, Finland [email protected] +358503539413 ABSTRACT Purpose: This research investigates how the professional identity of the university employees impacts their experience of the workplace Theory: The research is based on theory of social constructionism and uses the concepts of identity work and place identity, which refer to the constructed rather than static definition of identity and place. Methodology: The responses of the employees were examined with a narrative interviews and analysis. The narratives were gathered with 16 open interviews conducted in a Finnish university after moving from the old university main building to a recently built business park Findings: The results suggest that the experience of the workplace is drawn from the employees’ philosophical ideal about the role of the research and the academia. Accordingly, this ideal is constructed through the narratives that are derived from the users’ academic identity. Thus, the physical workplace functions as a reflection of their role as an employee of the university. This concludes that 1) physical workplace has a role in enforcing or deconstructing the professional identity and vice versa and 2) the experience of the workplace is culturally constructed complex process, in which the identity work is in substantial role. Originality/value. This is important to acknowledge when designing, renovating and relocating the workplace in a campus or in any other organization.

Keywords: Identity work, Workplace, Narrative Analysis, User Experience 1 INTRODUCTION This research investigates how the professional identity of the university employees impacts their experience of the physical workplace. Professional identity and workplace and -space are not commonly connected either in the organizational research or in the research about built environment. In fact, built environment research seems to focus on physical and aesthetical themes and organizational studies on abstract functions of social behavior or the business logic of the organization (Airo, 2014). However built spaces are also storytellers, that: “communicate values, beliefs and feelings using vocabularies of construction materials” (Yanow, 1998). Thus built spaces also function as part of users’ identity work by reflecting professional identity (Meerwarth, 2008) using e.g. physical artifacts (Elsbach, 2004). Furthermore experience of the workspace and -place is often derived from employees’ identity work, which is partly reflected to and from the spatial features of organizational space (Elsbach and Pratt, 2008). As identity work is closely connected to physical form, it should be studied in a more extensive manner (Hancock and Spicer, 2011). In this research the concept of identity is seen from social constructionist view, in which identity is constructed through identitywork (Sveningsson and Alvesson, 2003). From this perspective identity is an ongoing process, in which the notion of self is constructed from personal history, ideals and values, which are then reflected to physical artifacts, namely, in this case, the spatial features of workplace. As organizational and cultural spaces are

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analyzed from various perspectives (e.g. Foucault, 1979; Lefebvre, 1974; Markus and Cameron, 2002, 2006; Clegg and Kornberger, 2006; Dale and Burrell, 2003, 2008 etc.), this research does not only examine the experience of space and identity but also how this spatial identity is constructed through stories. This is done by taking a narrative perspective in analyzing the relationship of identity and the workplace. 2 IDENTITY AND NARRATIVES Identity has been defined in multiple ways from several theoretical perspectives. In social constructionist tradition identity is seen as an ‘interactional accomplishment’ (Cerulo, 1997) or a ‘casting and recasting of our “selves” through discursive practice’ (Musson and Duberley, 2006). Identity is maintained and constructed with identity work process, which Sveningsson and Alvesson (2003) locate to social and discursive context. The emphasis of their formal conceptualization of identity work is on the self or ‘internal’ aspect of identity. According to Sveningsson and Alvesson (2003): “people ‘strive to shape their personal identities’“. However these ‘personal identities’ are not treated as a-social matters. For example Watson (2008) gives more analytical power to the concept of identity work by incorporating it to more explicit recognition, that whenever identity work is done there is an element of working on the ‘external’ identity of the person. According to Bucholtz and Hall (2005), any given construction of identity may be in part deliberate and intentional. Identity is partly habitual and hence often less than fully conscious. It is in part an outcome of interactional negotiation and contestation, in part an outcome of others’ perceptions and representations. It is constructed through larger ideological processes and material structures that may become relevant to interaction. From the narrative perspective, both methodologically and theoretically identity is constructed through the narratives people deploy about themselves. According to Bamberg’s (1997) positioning theory, identity is constructed by combining the structural (the story) and the performance (the telling) in three different levels. Bamberg’s positioning theory combined structural (‘the story’) and performance (‘the telling’) approaches to examine positioning on three different levels: First, they encourage looking at how is the characters’ relation to one another (the story). Secondly, they claim that it is important to see how the speaker is in connection to the audience (the telling) and thirdly how narrator positions him/herself. In other words: how does he/she elaborate the stories of “the self”. LaPoint (2010) outlines a theoretical and methodological approach to career identity as coconstructed, socially situated and performed in interaction. In this research, rather than conceptualizing academic identity as something static that individuals have, identity is perceived as La Point describes it: a process that is co-constructed in interaction between the audience and the narrator. Additionally this research conceptualizes the material structures, the workspace, as part of the identity work.

3

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Identity is thus constructed in an interactive process which is formed in relation to the others, the self, and the physical world. Devine-Wright and Clayton (2010) claim that: “Environmentally-relevant identities vary not only in geographical but also in behavioral specificity”. Place identity and environmental identity can be differentiated by their geographical scope, but there are other ways of describing the difference: place identities

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should involve more specific, localized experiences, and thus more specific memories and possibly other differences in cognitive structure.” Environment and identity are then constructed both from the premises of personal and geographical location and history. Identity is produced in the stories of the self but also in the stories and the history of the environment. According to Wells and Baldwin (2012) identity and value of the environment are not derived just from the factual, objective features of the space or an object. In fact, identity of the environment may be established from the implicit networks of stories related to vast body of phenomena, such as the value of organization, or notions of cultural constructions. Hancock and Spicer (2011) introduce the concept of identityscape – a spatially bounded site oriented towards the production of economically viable modes of identity. This transformation process goes in both ways. Identity, organizational structure and architectural features are bound together in numerous ways. Space is thus fundamental in shaping a sense of workplace identity (Elsbach, 2004). Elsbach and Pratt (2008), for example, see that “physical environments play a major role in facilitating and constraining organizational action” and in building a certain work identity. They state that “choosing objects and their arrangements in professional organizational work settings is one of the most difficult tasks a manager faces” as these decisions reflect much about the organizational culture. The research on organizational spaces is fragmented partly because the definition of “the space” is ambiguous (Taylor and Spicer, 2007). This problem is partly due to the lack of philosophical definition of space and its’ combination to the academic field of management theories (Cairns, 2003). This applies also to the concept of “workplace” as it can be seen as a physical place but also a social and abstract function of the place in which working takes place. Workplaces are both social constructions and physical entities which are connected to social behavior. Beard and Price (2010) have made a distinction between the physical workspace and social workplace by emphasizing the fact that workspace is the physical space and: “Workplace in short is workspace plus culture”. According to Rapoport (2005) work environments should be designed to respond to and support the work culture. Vischer claims that the work culture should be and is made visible in the physical constructs of the office (Vischer, 2008). Cultural and personal issues are then interconnected with the user experience and behavior in and about built environment (e.g. Erickson 2004; Yakhlef, 2004). In this research the concept of workplace is used, when referring to both physical and organizational place. The concept of workspace is used when referring to physical settings of workplace. However, when reporting the results the concepts are used based on informants’ answers. Thus when he/she is talking about workspace, the concept is used regardless of the academic definition. 4 METHODOLOGY The “identity work” and the narratives of the place are in a substantial role in preserving the “old” and making of the “new” (Markus and Cameron, 2002). Thus this research discusses how the employees of the university who have worked in old university main building experience the new workplace which is situated in the newly built business park. The aim of the research is to describe the relationship between identity work and academic workplace. Research questions are: 1. How are the spatial issues of a workplace present in the narratives employees deploy about their work? 2. What kind of professional identities arise from the narratives of space? 3. How does this affect the experience of the workplace?

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This is studied by adopting a narrative perspective by looking at the stories the employees of the university department deploy about the workplace, -space and its’ history. The results are categorized to explicit and implicit narratives which are then discussed. 4.1 Narrative analysis Narrative analysis was developed by Labov (1965), who claimed that the mental processes and verbal output are always constructed in a form of a narrative, a story. Thus, analyzing the structure of the narratives people present may reveal something possibly hidden about their experience of the subject. Rymes et al. (2010) explain that in the narrative analysis, it is important to recognize that the narratives in themselves are not a portal to experience. At least, narrative is not a direct portal. Rather, narrative, in any form and by necessity, always involves narrating to someone and in some context. This means that the narrative analysis is depended on speech acts which are inevitably relative to the event of speaking, the context, the meaning, and the subjective descriptions (Rymes, 2010). In other words, the narrative analysis is concerned about the positioning of events, things and subjects, rather than the stories themselves. 4.2 Narrative data collection The academic identities and spatial narratives were explored by interviewing 16 employees ( 3 professors and 13 employees) of the Department of Real Estate, Planning and Geoinformatics. Due to the renovation, they had relocated from the old traditional university main building to the newly built business park. The participants were reached via email lists of the department. In addition, the researcher approached the interviewees face to face in the department, while visiting the office. Out of approximately 80 employees, 7 replied via email and the rest of the participants volunteered while asked face to face at the office. Narrative interviews are flexible and semi-structured. They allow the informants to chat informally in hope of getting as rich data as possible. In addition, the questions are mostly kept open ended and flexible. Questions such as “tell me a story about x or describe your feeling towards y?” are emphasized. Questions about details are asked only when necessary, as the idea of the interviews is to let the informants describe their way of positioning themselves as freely as possible (Smiths and Sparks, 2008).

4.3 The process of Narrative Analysis The research design in this study is adopted from the definition of identity work of Watson (2003), Sveningsson and Alvesson (2008). That is as the identity work has seen as an internal and external process, the narratives are also analyzed from explicit and implicit point of view. Explicit structures refer to content specific factors (e.g. “functional issues” or “aesthetic issues”) and implicit structures (e.g. as “background ideals” or “identity construction”) to contextual factors of the stories. Narrative analysis concentrated on both common and different meanings around the office, place, space, heritage, beauty etc. Explicit narratives referred to the straight reply such as: “What was your first memory of the place?” or “It was when I came here for the entrance exams and the place was huge”Explicit narrative of this sentence is that the subject first saw the place when he started his studies and the place was huge. Implicit narratives are about the contextual positioning, such as how the subject describes him/herself in relation to the question asked. How does he/she justify and explain the events and actions taking place in his/her story. For example in the example above, he/she refers coming to the campus first as a student, and referring to the idea that he/she was small as the place was big. 285


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4.4 Thee buildings: past and present p The maain buildingg of the Helssinki Univeersity of Tecchnology (F Figure 1 left ft.) was desiigned by Alvar A Aalto. The building was w construccted in 196 65, and it represents r a typical fu unctional style. Itt is situatedd approximaately 10 killometers fro om Helsink ki city centeer and 2 killometers from thhe technology cluster of companiies such ass Nokia Heeadquarters. In the six xties, the buildingg and the whole w campu us area weree constructeed due to th he need of thhe growing number of technnical studeents, who had h earlier been locateed in the center c of H Helsinki in multiple m locationns. At the time, t the caampus areaa was uniqu ue in the Fiinnish landsscape, since it was entirelyy designed for f the univ versity and student purrposes and barely cateered other forms f of usage, such as prrivate (otheer than studdent) housiing or busiiness. The office settiings are concenttrating on private p and shared room ms. The oth her areas comprise leccture halls, lobbies, adminisstrative spacces etc. The new w location of o the Depaartment of R Real Estate, Planning an nd Geoinforrmatics in Business B Park (Figure 1 righht) is situatted approxim mately one and a half kilometers from the old o main buildingg in Otaniem mi, Espoo. It is locatedd near the teechnology cluster, c whiich is built about a 10 kilometters from Helsinki city c centerr. It consissts of fou ur buildinggs and housees 1200 workplaaces. The offices o are either openn-plan soluttions or a combination c n of open plan p and encloseed space. Thhe departmeent was thee first user of o the office spaces inn the fourth and the fifth flooor. They were w not allo owed to maake changess to the layo out of interiior design. Most of the inteerviewed em mployees were sitting iin the open plan locatiion apart froom secretarries who shared a room. Tw wo professorrs and two rresearchers were w workin ng in privatte rooms. Figure 1 The mainn building of o the Helsinnki University of Techn nology and The Busineess Park

5 RESULTS S plicit Narraatives of Fu unctionalityy, Aestheticcs and Sym mbolism 5.1 Exp Explicitt narrativess of functio onality, aestthetics and symbolism m could be recognized d. These themes were preseent in each interview, but their content c diffeered and thheir meanin ng partly overlappped. For exxample, “th he order of things” is both b a funcctional and a symbolicc theme. Symbollic issues can c be conssidered impplicit, since they are su ubjective annd open to various interpreetations. Hoowever, in this study, th they are categorized as explicit naarratives, sin nce they were exxplicitly toldd. Almost all of the interviewee i es agreed thhat the new business park is a “beetter” workspace in terms oof functionnality and usability than the old o universsity main building. The air conditiooning, ergonnomics, cleanliness andd even the open o plan office o solutioon was mosstly seen as betteer for workking than the t shared and privatte rooms th he employeees had in the old buildingg. On the other o hand, the businesss park wass seen as a mass produuct article, soulless, s neutral and clinicaal. Accordin ngly, the loccation and the t traffic arrangement a nts were seeen worse

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than in the campus district. These functional themes were normally continued with symbolic explanations of what kind “messages” does the functional form give to the guests, students or employees. For example, the functional theme of location was often explained with a symbolic explanation. ”Well, for me it was somehow easy to identify with the old campus. Like the first time I heard about BES I was kind of surprised to hear that it’s in the third floor of the Sähkötalo building seeing that the Department of Construction is right here and it’s supposed to be a research unit at that Department. And the same thing in Helsinki, a university unit can be somewhere in the middle of nowhere and not near [the corresponding Department] in any way” Researcher, male, Real Estate Business. This is basically a new house so that, no offense, the main building is, like, if you are in there an outside visitor might get a feeling that you are somehow a part of the core operations but if you were in the middle of nowhere from the main building in a house that is also a bit worse for wear, I’d probably feel like that it’d be rather degrading. Researcher, female, Real Estate Business These are examples of how location becomes a symbolic message related to categorization: what exists where and how organizational structure and the brand are connected to physical appearance. It was commonly thought that the all the sub-departments of a certain department should be located in the same building or at least close to one another. In other words, location is both a functional and a symbolic issue. Secondly, the question of aesthetics is often connected to question of symbolics: it smelled bad you know and it was shabby and impractical, there was basically nothing positive apart from its location, as the location was excellent: a short trip to the bus stop, to the cafeteria, it was easy to tell people to come to the main building but its usability was a catastrophe, like, for actual work, as it smelled bad in there. Researcher, female, Real estate business for me what matters is functionality, whether it’s more or less ugly is not so important; of course if the premises are embarrassing, for example at the HUT, the paint was peeling on the walls, now that’s embarrassing, if you have visitors, it sends a message that we’re not doing any actual work in here. Researcher, female, Real Estate Business It was commonly stated that the functionality is the only important aspect in workspace, but as it was almost always complemented with issues such as “It was embarrassing”, one can conclude that functionality and/or aesthetics are always connected to symbolic issues. Additionally, it is interesting to ask, why something is considered “embarrassing”. Saying that the old main building was embarrassing for visitors can be perceived from three perspectives: It is a) embarrassing since it is not taken care of, b) embarrassing because it is old, or c) embarrassing because it does not embrace the “value” university should embrace. As the employee went on: You have to believe that this corresponds to the standards of the modern society but I don’t really have that [feeling].” Researcher, female, Real Estate Business It has to be asked though, what kinds of spaces are seen as valuable and what are no, and whyt? As the participant claimed, that she was “embarrassed” to meet clients in the old facilities, it needs to be questioned; why she, among others, felt that the spatial arrangements were not presentable to guests? Is it purely a question of aesthetics or is it a question of not agreeing with old narratives of the university? In fact, when looking at the purely architectural features of each building, it is quite impossible to say what they symbolize,

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unless one is not aware of their historical background. Soon, this became evident also in the comments of the same participant: I’m not thinking of the historical value, like post-graduate students that have been sweating in this room for a hundred years now, I don’t… ” Researcher, female, Real Estate Business. Although she denied the value of history, in her own case, she did underline the fact that the main building had historical value. The old building was not that practical, but it was cozy and beautiful. There is this image of the desks of the old professors, the workspace and to imagine working there, in these historical premises, that is the psychological history Researcher, female Geomatics For working this is fine. I don’t care, this is good. For image…. I am not sure… academic way, it is unique, it should be unique and this is not the way I think it should be. Professor, male Real Estate Business Based on the interviews the business park was a symbol of modern times, adulthood, business, efficiency and capitalism as the old main building was seen as a symbol of tradition, good taste, warmth, beauty and knowledge. On the other hand, it was also seen outmoded, dysfunctional, dirty and even unhealthy. These explicit narratives however did not seem to fully explain the subjects’ experience of both places. Actually, it almost seemed that explicit narratives are constructed in order to give rational explanations to something that is implicit to begin with. For example, when employees described the current working conditions they often began with disclaimers, such as “Well to speak strictly from the functional point of view” or “well I do not have anything interesting to say, everything works just fine” as if they were trying to say that the functional issues are not very interesting. This of course did not mean that they would have said that functional issues were not important, it was more about saying that there is nothing more to them that meets the eye. Accordingly, why analyze something one can simply observe. 5.2 Implicit Narratives of Identity and Ideals Identity and ideals are categorized as implicit narratives, since 1) they were not asked or answered straightforwardly and 2) they seemed to restrict and govern the explicit stories told by the interviewee. In other words, the implicit narratives were taken for granted, as they were not explicitly told, but on the other hand, they acted as the status quo for individuals to argue about their perception of space. Identity claims were quite typical in the beginning of almost every interview. People tend to position themselves in a certain context every time they start to speak. Looking into these positioning frames often reveals their ideal of the circumstances or their idea of themselves as employees of university. For example, most of the subjects expressed that they are not qualified to answer questions related to their workspace. The interesting aspect was the explanations that differed drastically, for example the following ones: I am not a part of the relocation process, so I might not be the perfect subject for your study. The professor of Real Estate Business I have not worked in this department long enough, so I do not know whether I am a good subject for your study Researcher, female, Geomatics I am a secretary, so I don’t actually work in an academic context Secretary, female My answers will be the same as the other secretaries, so I suppose you do not need my participations to your research Secretary (who eventually declined to take part) I am not an architect so I am not qualified to answer questions related to the aesthetics Researcher, male, Real Estate Business

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This might imply that either they felt that they did not know or understand, what the research was about, or had different expectations, did not feel to be a part of the spatial processes or simply were reluctant to take part in the research. Either way, the similarities of identity narratives “not qualified for saying anything” and differences in justification “because I am not part of the process, I am a secretary, I have not worked here long enough” were apparent. It gave presumptions to the conclusion that the employees needed to perform identity positioning before saying anything about the space. The question is what kind of identity positioning was performed and what kind of ideals they reflected. 5.3 The Ideal role of academia and the reflection of identity to the academic space The research on real estate and especially real estate business is connected to business discourse and culture by definition. At the same time, the academic ideal endorses the idea of independency and tradition. That is, scientific knowledge should be derived from independent sources, which do not have subjective motives, such as economic or personal benefit. On the other hand, the social motive of research and especially applied research in general is to produce applicable results for the given actors of the context. These two factors behind scientific research may contradict from time to time. This underlying debate could be seen in the way the employees constructed their identity, ideals, and spatial experience. For instance the relationship between the subject of academic work and the spatial arrangements of the workplace were seen connected in most of the interviewees: It was a rather horrible working space when for example I was writing my dissertation about corporate real estate management, about how the work space should support your work. And you feel like the shoemaker's children go barefoot as the premises really did not support your work. Researcher, female, Real Estate Business In addition to the motive of academic work, there were differences between how to conduct academic work. These ontological and epistemological ideals could also be seen in the way researchers described their identity in relation to space. The pragmatic, positivistic and phenomenological paradigms could be recognized. For instance from a pragmatic view, the subject said something like: I didn’t really think about anything, for me this is a business park, so it’s a modern office space, but there’s nothing architecturally exceptional that would make you think ‘wow, this is a spectacular hall or an amazing solution’, there’s nothing like that, this building is a mass product but there’s nothing wrong with that. Researcher, female, Real Estate Business Sure the main building was a nice place in my opinion but it’s for practical reasons; the connections are better there and, ok, maybe, this is an okay location for me but I think that ending up in the Sähkötalo building or somewhere that would be the worst. Researcher, male, Real Estate Business These excerpts were linked to pragmatic category, since they did not elaborate any deeper meaning to space as functional issues overrule other aspects of spatial thinking. Very similar, but slightly different were the positivistic views: I’m mainly interested in that it’s working, for me it’s more important that it’s warm enough for me and that the air conditioning is just right and it’s nothing to be ashamed of, like, there is nothing negative about this, I feel that this is quite neutral. Researcher, female, Real Estate Business This view emphasized the idea of symbolics, that is, there are views that idolize symbolics, but in the end it is the most obvious things that matter. In addition, she defined the academic ideal from a pragmatic point of view, saying that all that can be measured and objectively observed is all that really matters.

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The interesting point was that in fact many “real estate-researchers” wanted to emphasize the so called positivistic discourse in the academic identity, as a counterforce to the more phenomenological perspective to spaces which for example would object to the idea of “mass product architecture”, architecture that does not encompass a meaning. It was a bit of a researcher’s sanctum and what I really liked was that there were lab specimen on display that made it a bit of a --------researcher’s space, I really had this romantic notion of the academic life, and, really, although I myself would perhaps want to work as an academic in the main building of the University of Helsinki or somewhere like that where everything is made of bronze and there are these torso statues everywhere, I must say that the main building represented it to me more than this soulless business park” Research Assistant, male, Real Estate Business There is always this certain feel of history in there; I don’t know how to describe it: when you go someplace, you get this feeling that it’s pretty exquisite in there; whether it’s the colors or the architecture or something old hanging on the walls. Researcher, Female, Geomatics The excerpts above portray the classical and the most commonly used positioning of academic identity. They illustrate the traditional material symbols of academia, such as “the old statues”, “the researcher’s sanctum” and “lab specimen” etc. Accordingly, the old age was considered to be a part of academic tradition: Then, often people hype about a certain thing that ten years from now is not so important and if you make some really trendy choices, they get old really fast, so that it doesn’t make sense to destroy the history, but of course if they come up with something really sensible, then they may want to choose something like that. Researcher, male, Real Estate Business. I think the old space needs to be respected for the sake of heritage. It holds these stories and values, which cannot be reinvented in a new space. Researcher, male, real estate business Although the old main building of the HUT does not portray the classical architecture of universities, as it is modern compared to buildings such as the University of Helsinki built in the 19th century over 130 years before the HUT main building, it still is older and it was often seen to be “closer” to the academic identity than the new business park. This provokes question of relativity. Is being “older” only value for a (academic) building? That is, if something is new, it does not yet hold any stories or value. I want to go back to the old building. It could be more practical, but you cannot change anything, which I think is good… history must be preserved. I think this building (business park) incorporates everything that has changed in the world and in the university. And not in a good way. This building symbolizes how, how should I put it, the discursive change in thinking, to the direction in which university fits to the business park. You surely understand. Professor, female, Geomatics In addition to the ideas and ideals of the space, the notion, that the space actually changes the behavioral and ideological structures of organization was presented. no, I find it good that this department had to [move], as it had been somewhat conservative,, I think it’s good to make a change like that, to shake things up, put people in a different environment, sit in a different location and maybe with different people; new things may be created and people start noticing, the premises may be different and function differently. Researcher, female, Geomatics,

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Saying that “the department was conservative” and “the new space will shake things up”, implies to two confronting narratives. First of all, the juxtaposition of the old-and the new and also the idea that being old and coming to something new would in fact change the social structure and the behavior of people. The interview did not reveal what would exactly change. In any case, this is an example on how the subjects experience the analogy between the identity, action and space. The phenomenological and traditional views and the pragmatic and business-centered views seemed to overrule the conversations. They could be identified even within the same conversation. However, the identity work could be seen mostly emerge, when talking about the meaning of space. One of the subjects brought up her experience of the old Helsinki University, when she entered the lobby for the first time: It was grand to enter, it made me feel that I was entering an honorable environment, as I respected education and it reflected to that, I felt that it would be really great to get in, to study there. Researcher, female, Geomatics She underlines the fact that the environment was respectful in the same way the education is respectful. Although she made the assumption, that the “old” university building is honorable, she did not provide any concrete examples on how and why is the “old” environment somehow more respectful than some other. Accordingly, she made an analogical reference to the space, its symbolic value and her own feelings toward the space as “it would be great to get in” in other words, it would be great to be part of this environment, to represent similar issues, as the space represents, such as “honor” and “dignity”. Of course, the reason for starting to study is the actual content of the subject, but that was something she did not mention. She talked more about the representations of given organizations and their spaces, rather than the subject (mathematics) she was actually starting to study at that time. …but it’s not that I personally would feel like this but I would not like others to think… I don’t care, but what matters is that what others think. Researcher, female, Real Estate Business This assumption was supported by the small differences between the staff of Geomatics and the staff of Real Estate Business. Geomatics as an academic subject is closer to the basic sciences, as it is more concerned about modeling spatial issues than Real Estate Business which is more concerned in applying these models to the business. The informants from the department of Geomatics more often used metaphors of the tradition of university, such as: I want to keep my books close, I am very fond of my literature, thus I do not see myself in this ‘paperless’ business park in an open plan office, it would be a disaster for me. The Professor, male, Geomatics They were also a bit more skeptical about the new premises, although the arguments to this direction differed between subjects. 6 DISCUSSION Functional issues such as air conditioning or equipment of the new workplace were seen as self-evident, important, but not very interesting issues in the workplace. The perception of the new workplace was more interconnected with the ways the subjects described their role in the academia and the role of academia in the whole society. The narratives could be divided into explicit narratives which described the straight-forward observations about the environment and into implicit narratives which explained the explicit narratives with descriptions of identity. Subjects’ personal history in relation to the building did not matter as much as their personal perspective to the academia and to the architecture. That is, people who had similar backgrounds in the university did not necessarily agree with the value of the history and the spatial arrangements. It was more about their personal view, their own values and ideals about university, than the time and events they had experienced within the university.

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The professional identities arose from the quotes as implicit narratives the employees deployed in order to explain the explicit narratives about the functionality and symbolics of the space. These implicit narratives could be categorized into two groups, in which the first represented those who saw their place in the university to endorse the tradition of the research, independently from the business, and those who saw the economical and practical issues as the reason for the university to exist in the first place. For the first group, the business park was not an adequate place for academic work and for the second group it was perfect. The fact that everyone was satisfied with the functional issues implies, that it is actually their identity and ideal that governs their experience of the space, not the space itself. Additionally, the academic identities were connected to ontological and epistemological ideals of functional, positivistic and phenomenological views that could be seen in the way researchers described their identity in relation to space. Since everyone was more or less satisfied with the functional and aesthetic issues of the workplace, the implicit issues derived from their professional identity played a significant role in their experience about the space: the pragmatic, positivistic, phenomenological and traditional paradigms, in which the pragmatic and positivistic groups emphasized the functionality, but also wanted to underline the fact that symbolism of spaces is an irrelevant factor in their workplace experience. Phenomenological and traditional groups often drew analogies between the ideal of academia and were concerned of the representations of space. As a matter of fact, many of them were even ready to spent time in non-functional and “ugly” space, if it represented the idea of “academic way of being”, whatever that might be. Additionally, it was not all that clear what is the difference between functionality, aesthetics, heritage and symbolism, since they are all interconnected. For instance, many thought, that the new business park is “beautiful” since it is clean and light, but their perceptions of beauty were connected to the appearance that represents a different history or a certain style. Accordingly, the new business park cannot have a history and it is not seen as representative of a certain style or era. Therefore, it cannot be “beautiful”. This concludes that for instance “beauty” is not just a question of a concrete architectural feature such as building material or layout. It is connected with various other factors, and thus aesthetics, or functional issues for that matter, cannot exist individually without other cultural references. Subsequently, the experience of the space, affected by the abovementioned, cannot be measured without the complex contextual issues. As identity is partly constructed in relation to materialistic issues such as space, consequently the experience of the space is constructed in relation to abstract factors such as the identity. 7 CONCLUSION Professional identity and ideals are connected to the experience of space and vice versa. Thus, workplace identities should not be underestimated in study of space which cannot be seen as a neutral physical setting, since it always represents some cultural values. On the other hand, the relationship between identity and space is an ongoing process which is iterative by nature. Spaces also guide the construction of identity and vice versa. For instance, at the time the old main building was built, it must have been seen as “too modern” for university. In other words, history, identity and the stories of the places are been constructed all the time. To conclude: It is important to understand that spaces are used and experienced in a complex way, including not just the functional features, but also the history and personal perception of the history and the self. In addition, it is important to acknowledge the multidisciplinary theory of built environment which emphasizes the physical, social, and mental aspects of places and spaces. After all, they form a fundamental part of constructing and deconstructing identities which are present in any perception and reflection we experience both in the abstract world of organizations and in the physical world of the environment in which we act.

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Musson, G. and Duberley, J. (2007), “‘Change, Change or Be Exchanged: The Discourse of Participation and the Manufacture of Identity’”, Journal of Management Studies, Vol. 44, No. 1, pp. 143–64. Rapoport, A. (2005), Culture, architecture, and design. Chicago: Locke Science Publishing. Rymes, B. (2010), “Why and why not? Narrative approaches in the social sciences”, Narrative Inquiry, Vol. 20, No. 2, pp. 371–374. Smith, B. and Sparkes A.C. (2008), “Changing bodies, changing narratives and the consequences of tellability: a case study of becoming disabled through sport”, Sociology of Health and Illness, Vol. 30, No. 2, pp. 217–236. Sveningsson, S. and Alvesson, M. (2003), “Managing Managerial Identities: 0rganizational Fragmentation, Discourse and Identity Struggle”, Human Relations, Vol. 56. No. 10, pp. 1163–93. Taylor, S. and Spicer, A. (2007), “Time for space: A narrative review of research on organizational spaces” International Journal of Management Reviews, Vol. 9, No. 4, pp. 325–346. Watson, T.J. (2008) “Managing Identity: Identity Work, Personal Predicaments and Structural Circumstances”, Organization, Vol. 9, No. 1, pp. 121-143. Wells, J. C. and Baldwin, E. D. (2012), “Historic preservation, significance, and age value: A comparative phenomenology of historic Charleston and the nearby new-urbanist community of I'On”, Journal of Environmental Psychology, Vol. 32, No. 4, pp. 384-400. Vischer, J. C. (2008), “Towards a user-centred theory of the built environment”, Building Research and Information, Vol.36, No. 3, pp. 231-240. Vischer, J. C. (2005). Space meets status: Designing workplace performance. London: Routledge. Yakhlef, A. (2004), “Global Brands as Embodied ‘Generic Spaces’: The Example of Branded Chain Hotels”, Space and Culture, Vol. 7, No. 3, pp. 237-248. Yanow, D. (1998), “Space stories: Studying museum buildings as organizational spaces while reflecting on interpretive methods and their narration”, Journal of Management Inquiry, Vol. 7, No. 3, pp. 215-239.

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Designing a multi-purpose office through Learning by Developing Pauliina Nurkka Laurea University of Applied Sciences [email protected] +358 468 567 885 Marjo Pääskyvuori Laurea University of Applied Sciences [email protected] ABSTRACT The ways of learning and teaching have changed from traditional teacher-led teaching towards student-centred learning during the last decades. In Finland, Laurea University of Applied Sciences has created a pedagogical model called Learning by Developing (LbD) to support an integrated learning, research and regional development process. The new ways of working and studying have set new needs for working environments as well. The purpose of this project was to design a multi-purpose office for personnel to support working according to the pedagogic model. The paper presents a design process. Several data collection, analysis and development methods were utilized in designing a new office. A research strategy was a case study. The process was integrated into the education of facility management students through the pedagogical model. The process proceeded in the following steps: defining an objective, a preliminary study by students, interior design, implementation and analysing user feedback. A theoretical background consists of the concepts of the new ways of working at university facilities. From an educational perspective, LbD model produced authentic research and learning experiences for students. As a result, a new multi-purpose office was designed and introduced as a working space for twenty staff members. The office was evaluated by the users. The quantity and the quality of positive experiences provided a solid foundation for further design processes. More students are expected to study at the campus in a few years, which most certainly leads to new facility-related projects. Keywords Learning by Developing, Multi-purpose office, New ways of working, Design process 1 INTRODUCTION A background to the project lies in the changing environment of higher education. The ways of learning and teaching have changed from traditional teacher-led teaching to studentcentred learning. Teachers are more coaches than traditional information suppliers while students are active actors and learners. The new ways of learning, teaching and working have set new needs for studying and working environments as well. According to the Finnish legislation the universities of applied sciences “shall provide higher education for professional expert jobs based on the requirements of working life and its development; support the professional growth of individuals; and carry out applied research and development that serves polytechnic education, supports the world of work and regional development, and takes the industrial structure of the region into account (Polytechnics Act 351/2003, Amendment 564/200912). Due to requirements for pedagogical training, applied research, and regional development, Laurea University of Applied Sciences (later Laurea 12

http://www.finlex.fi/en/laki/kaannokset/2003/en20030351.pdf

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UAS) created a pedagogical model called Learning by Developing (later LbD, LbD model). The model aims to produce new practices, competence and collaboration between lecturers, students and experts from industry. It is essential that the creation of new knowledge becomes explicit as skills. Graduates have competence in professional doing and scientific knowing. As an action model, LbD outlines the nature of research at the University of Applied Sciences. (Raij 2007.) According to Vyakarnam et al (2008, 19), LbD melds together the main functions of universities of applied sciences: professional education (learning) and teaching based on research (developing). In the pedagogical strategy of Laurea13, the LbD process is defined as the core process, which provides the core of Laurea’s pedagogical philosophy. The model has been in development for over a decade, from the project-related learning towards student-oriented research, development and innovation (RDI) activities, which are increasingly integrated with learning. In the LbD process (eg. Raij 2007; Vyakarnan et al. 2008), there is always an authentic need for an LbD project. In addition to authenticity, other essential elements in the model are partnership, creativity, experiential learning and research. This paper describes the design process of a new multi-purpose office for working at Laurea UAS Leppävaara campus in Espoo, Finland. The project was integrated in an educational process through LbD principles. Facility management students were playing an important role as researchers and developers. The methodology, results, and conclusions are discussed in the paper. 2 NEW WAYS OF WORKING AT UNIVERSITY FACILITIES Information and communication technology (later ICT) has developed wildly during the last two decades. Technology enables multi-purpose work. Work can be done where ever and whenever, alone or together. Multi-purpose work increases the meaning of a physical working environment and sets new demands to it. Digital premises, social media tools, communication tools or video negotiation premises are significant to the success of working. (Hietanen at al, 2011, 7-8.) The general trends and trends in pedagogics particularly, as well as the Finnish education legislation, create the above-mentioned circumstances also at university facilities. Although the work has developed, physical premises have necessarily not. The growth of an environmental consciousness also sets need for the versatility of premises. A facility is always an investment and it is expected that the utilization rate of premises is high. The offices designed for individual work are giving way for multiform solutions. In the future, the crucial question is: are the offices designed for the needs of yesterday´s or tomorrow´s. (Hietanen et al, 2011, 10-11.) A possibility to choose a working space facilitates work satisfaction. Facilities also direct operations and create experiences. The culture of the organisation has to support the flexible use of the premises. (Haapamäki, Nenonen, Vartiainen, 2011, 13.) Of course, this principle concerns university facilities, where modern working methods are used. 2.1 Multi-purpose office The working day of experts consists of different tasks. Peaceful and quiet space is needed for the tasks, which require concentrating. Group work space is needed for the tasks, which require cooperation. Open spaces are needed for discussions and breaks. (Haapamäki et 13

http://www.laurea.fi/en/information_on_Laurea/Strategy/Documents/Pedagogical_strategy_l ow_res_01092011.pdf

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al.,2011, 3.) A multi-purpose office is a new, flexible space concept to fulfill the different needs. (Hongisto et al, 2012, 46.) Ergonomics is an important design criterion for a multi-purpose office space, stemming for maximizing human resource efficiency through a high-quality environment. The ergonomics describes a design that is created specifically to fit human dimensions and respond to functional requirements. Crucial to the success of any ergonomics plan is the adjustability of furniture and equipment in the workspace. (Rondeau, Brown, Lapides, 2006, 375.) According to the occupation rate measurement by Opetushallitus, a Finnish organization for Education Administration, workers spend about 40 per cent of their working hours at their working stations. Teamwork, interaction and mobility have increased. Due to this, offices are empty for the most of the days. Space utilization can be intensified by designing offices according to different employee profiles. The integrated use of premises requires a change in attitudes and the ways of actions of the workers. (Hietanen, 2011, 37.) According to Nenonen (2012), A multi-purpose office is composed of different types of zones. The zones affect cooperation and concentration in different ways. A multi-purpose office gives the opportunity to choose the working station according to the different situations. Figure 1 Multi-purpose office zones (Nenonen 2012, adopted from Ehrlich and Bitter). COOPERATION Better A zone for an open interaction Weaker A zone for short visits Weaker



  

A zone for concentrati on and cooperatio n A zone for an intensive individual work

CONCENTRATION Better

In an open interaction area, there can be sofa groups, armchairs and tables, which make unplanned meetings possible. People can meet each other’s and communicate informally. People can take a break, sit down and relax. The zone for open interaction can be for example a hall, an exhibition space, a box or a café. In a zone for concentration and cooperation, the conditions for brainstorming and innovating are ideal. There can be small or big meeting rooms or project rooms, as well as video conferencing areas. A zone for intensive and individual work can be an open work station in a quiet work area, a closed office room for quiet working or a closed but shared office room. Also a library or a social area can belong to this zone. A zone for short visits may include touch down desks, vendor machines, coat racks, walking routes, copying areas, archives, warehouses and post boxes. Communication is easy but concentration may be more difficult. 297


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2.2 The New ways of working in LbD model As a result of the LbD model, lecturers´ roles have been strategically redeveloped. The abilities, roles and activities of the staff are developed in the context of the LbD model in a way that best facilitates students’ learning. The staff’s attitude to students is equality and collegiality. Laurea’s lecturers act as educators, professional growth coaches, researchers and developers, network experts, regional developers and experts in their fields. The activities are characterised by stronger links to the professional world and a network-based way of working within Laurea and with stakeholders. (Learning by Developing (LbD) Strategy.) To work properly from the personnel´s point of view, LbD model requires flexible, multipurpose workspace. During the LbD process there is a need for interaction between students and teachers, as well as industry representatives. There is a need for open interaction with colleagues and management, for cooperation with colleagues, students and other partners, the short visits of students, and for individual intensive work. The facilities have to support all the forms of interaction. From the management point of view, open communication channels are essential. The students need to reach the personnel easily and informally. 3

DESIGN PROCESS AND METHODOLOGY

The purpose of the process was to design a new multi-purpose office for teachers, managers and other staff members to support working according to the LbD model. The design process and methods used in each of the process phases are described in this chapter. The phases, methods and roles of the actors are illustrated in a figure 2. The research strategy is a qualitative case study (Robson 1995, 40). The authors are working in the organization and, later during the project, also in the new office. Another author is in a management position; another one is working as a senior lecturer. The authors documented the process in order to evaluate it and get data for future processes. Pedagogical model involved students in the design process as researchers. Both authors moved to the new office room during the process, which made them genuine users with their own opinions as well.

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Figure 2 The desiggn process of o a new muulti-purpose office.

Need d and objective

Prelim minary reseearch

Interiorr design

•D Defining an objective bbased on needs •M Managemen nt, senior leecturer of faacility mana agement

• LLitterature rreview, occuupation rate e survey, ob bservation, hhalf sstructured q questionnai re, blueprin nts • SStudents, se enior lectureer

•G Group intervview, quest ionnaire, bllueprints, acction plan •M Managemen nt, senior leecturer, inte erior designe ers

•A Alteration w work (surfacce material, furniture, lighting), feeedback and aadjustmentss • FFacility management peersonnel, in nterior desig gners, supppliers and Implemeentation d decorators

Usser experiences

• EEmail surveyy •M Managemen nt

3.1 Defining an objectivee A projeect was oriiginated fro om a needd to get mo ore space for f studentss at the un niversity premisees. The num mber of the students at the campuss had increaased duringg the past feew years and thee way of sttudying thrrough autheentic workiing life pro ojects had sset need fo or group workingg classes annd meeting rooms for sstudents. Att the same time t the new w ways of working w had beeen adopted among thee personnel of Laurea UAS. The work of un university peersonnel consisteed of differrent tasks. There T was uusually no need n for an individual office tablee during the most of a woorking day. Furthermorre, a need for a new type of ann office space was recogniized. The maanagement estimated e th hat four oldd offices neeeded to be refurbishedd to the wo orkspace for studdents. Staff members from f these w were to be placed in one o old offi fice room orriginally plannedd for twelvee occupantss. These tw welve ones were w to stay y in the rooom. The nu umber of personnnel needing a place in a new roo m was abo out twenty. The existinng office ro oom was furnisheed with bigg, individuaal tables andd numerous cabinets. There was no space to t guide studentss in the offi fice. The areea was 185 m2. A mullti-purpose office withh various zo ones was 299


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seen as an obvious possibility to develop. The management decided it to be done as an LbD project, which meant that students took an active role in a preliminary research. When students are involved in a design process, the objective has to be clear and justified. Students tend to question the objectives set by teachers. With a clear one, it is easier to motivate the students to work hard for the result. Furthermore, management has to be committed and available for the questions of students or teachers. 3.2 Preliminary study by facility management students A group of 2nd year facility management students started the project with literature review in the themes new ways of working, effective work environment, workplace design and ergonomics. Based on the findings, the students redefined the objective: what was the current space nееd of the staff of the higher education institution? The goal was also to оffеr nеw sоlutiоns for dеsigning a wоrkplаcе. (Bui et al, 2012.) Defining the goal by the student researchers themselves was essential for motivation. Next, the students surveyed the occupation rates of the offices by systematic observations at certain times of the days to collect data on a staff presence in the offices. Through this method, the students also got an insight of the conditions and the challenges of the current work spaces. Further on, the students continued the research with a questionnaire about the usage of the work stations and attitudes towards the new ways of working. 34 of 75 lecturers at the campus filled in the questionnaire form. Based on the answers, an average staff member spent 4.8 hours of their daily work time (eight hours) in the office rooms. Around 58 % of the respondents used their working stations every day and 41 % three to four days per week. Generally the staff’s opinion of their current work environment was satisfactory. 79% replied positively on a question “Do you feel comfortable in your office?” The major reasons for dissatisfaction were related to the old-fashioned design of the current workplaces, which did not stimulate or anyhow inspire for efficient, productive work. Other concerns were related to the issues with HVAC (heating, ventilation and air conditioning). (Bui et al, 2012.) The lecturers were also asked of the extra need for meeting rooms to guide the students. Most of the lecturers were in need of this type of a space. To find out an interest in the new trends of working, the lecturers were asked opinions about a hot-desk as a workstation. Apparently, a big percentage had a negative feeling about implementing this trend into their working life and only 20 % of the respondents considered this as a positive idea and a good change in a routine work. The students also found out that there was no need to the private offices. Lecturers felt comfortable to work together in the same room with their colleagues. The last survey question covered the issue of an own workstation need. According to the result, the lecturers did not seem enthusiastic about implementing rational changes in the work environment and 76% of the respondents emphasised the importance of having a private workstation. (Bui et al, 2012.) The method was found to be effective for collecting information on the different characteristics, attitudes, opinions and motives of the people. Based on the research, the students concluded that the staff should be working in a comfortable and productive environment with ergonomic and adjustable furniture. The students draw various blueprints to illustrate the possible layouts of a new multi-purpose office. They also suggested furniture acquisitions and calculated a cost for the suggested furniture. The senior lecturer was guiding the students during the whole process. She communicated the phases of the process with the management. The management followed the presentations of the students and received the final reports in order to decide the continuum of the project. Though the personnel was quite satisfied with the current working conditions and the attitude towards a new multi-purpose office with hot-desks was expected to be a challenge, the need

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to use the office space more efficiently was still existing. Furthermore, the decision was made to continue the process towards implementation. The design process could have stopped at an early stage without the research help of the students. There was one part-time facility manager at the campus, whose limited time resources could have been an obstacle to the realisation of the preliminary study. However, the study was relevant to get the personnel involved in the process from the beginning. Even though there were several methods used, they were quite traditional ones. Interviews and questionnaires could have been replaced with more user-oriented methods like personas, customer journeys or other design methods. Nevertheless, the students achieved results, which could be utilized in further steps. 3.3 Interior design An outsourced interior design was a natural continuum to finalize the project, since neither the staff nor students had the competence to finalize the design. Two interior designers conducted a group interview with the staff to be fitted in a new multi-purpose office. People could tell their wishes and fears towards new working conditions. After the discussion, the personnel could also fill in the questionnaire anonymously about their expectations, needs and facts concerning the way of working. Based on the analysis of the results, there were enough people willing to settle down in a new type of an office. Four teachers did not want to move to this multi-purpose office, because of which they were offered a desk in a more traditional office. On the other hand, some teachers wanted to move in a new room even though they had a desk in remaining offices. The designers suggested a room layout with an action plan of furniture acquisitions, surface materials and alterations. Essential elements were: adjustable and various furniture to allow working in various positions (several different hot desks, chairs and sofas), a room for silent working, small meeting rooms, kitchen facilities and a big dining table, a new floor material to prevent noise, a joint library area and personal cabinets. Four zones could be demonstrated. The incredulous attitudes seemed to develop towards positive expectations when the opinions were genuinely asked and respected. One could see enthusiasm among the personnel towards the change. The process was decided to be finalized with furniture acquisitions and alteration work during the summer break of the university. The outsourced design service was worth the cost. The process was fast and the designers were professionals in aesthetics, ergonomics and the functional aspects of space design. The most valuable insight to be considered also in later processes is to let the staff express their hopes and fears and thus get more involved in designing their working surroundings. 3.4 Implementation The alterations were carried as planned. The facility manager of the campus supervised the work. The project was supposed to be ready when the staff came back from the summer break in the middle of August, but several furniture acquisitions were late. It took an extra month more until the room was ready, which set challenges to organise the work at the beginning of the academic year. Finally, twenty teachers and other staff members could settle down in the new office, where nobody had their own tables or chairs but the atmosphere and functionality had risen even to a higher level than expected. The delays in the delivery of the furniture were the biggest failures of the entire process. Delivery schedules have to be estimated carefully in future projects. 3.5 Analysing user experiences The user experiences were gathered four months after the move through an email survey. The management sent an email to all the inhabitants of the new space. The personnel were asked to give open feedback (1-3 sentences each) about the experiences, success factors and challenges. Some example themes were presented.

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The evvaluation reesulted in terms of atmospherre and welll-being, coommunicatiion and functionnality. The authentic user survey rreplies (orig ginally in En nglish) outlline the experiences in a Figgure 3. Figure 3 The user experiences e s of a multi--purpose off ffice.

Atm mospheere and well‐beeing

•“Rel axed atmosph here where I ffeel like at ho me. How wever it might be a problem m as I sometim mes feel that I spend too lo ong time at work due to thee cosy and hom mely office roo om” •“Brigght, open space, gathers pe eople togetheer also from otheer rooms” •“Thee design of the e room is esth hetic and its innspires me in m my work” •“Harrmony in colors and light crreates a peaceeful workking atmosphere and acousstically the rooom is very plea sant.”

Co ommuniication

•“It’s great to finally have a working communnity. Not just sit alone in a small room.” •“I lovve the fact that there is alw ways someonee with whoom I can talk iff I need help o or opinion” •“I geet new ideas h how to do effe ective way myy work” •“I feeel like I am aw ware what is h happening as com munication iss very open in our office rooom” •“I beelong to a team which was formed aboutt at the samee time when w we moved to this space, beeing togeether in one sp pace has enha anced the inteeraction withhin the team vvery much, it is crucially impportant” •”enaables easy app proach to a bo oss” •”as aa new staff member I hear more and lea rn faster” •”hel p is close” •”redduces email m management” •“bei ng in the sam me space with staff memberrs who do not bbelong to ourr team is positive”

FFunction nality

•”erggonomics is taken care of, iff only I remem mbered to takee care of it” •“Goood to have a lot of different furniture to accoommodate diffferent needs and situationss” •“Verry different ap pproaches by people to how w they use tthe room (som me people havve all meetinggs and convversations the ere, others tak ke even phonee calls into a meeeting room), I am not sure e what would work bestt, I think we arre still getting used to this aand lookking for good w ways to use th he room.” •“Diffferent types o of working stations” •”no extra papers when there are not own taables whe re to collect tthem” •”thee office room ssuits also for ssmall meetinggs and the sma ll meeting roo oms are ok” •”beccause of interruptions several times duriing a day, conccentrating is sometimes difficult” •”sepparate phone box could be needed” •“I thhink there has been some confusion, at leeast in the begi nning, about the purpose o of these arranngements.“

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Based oon the repllies, the reaality seemss to be sim milar to the theories off the new ways w of workingg and a muulti-purpose office. In tthe new offfice people choose theeir working stations accordinng to their current neeeds and theey seem to o be more satisfied s wiith their wo ork. The perceived problem ms concerneed mainly th the interrup ptions in concentrationn. Neverthelless, the quantityy and the quality q of th he positive experiencees provide a solid fouundation forr further facility developmeent projectss. In these projects, special atteention has to be paid d to the behaviooural aspectts, like find ding ways tto prevent problems p in n concentraation or prep pare the code off conduct. 4 S RESULTS Initiallyy, the new ways of working werre to be pro omoted at the t campus within thiss design processs. As a resullt, a new mu ulti-purposee office wass designed and a introduuced as a wo orkspace for twennty staff meembers. Part of the proccess was caarried out by y facility maanagement students as an L LbD project. Four zonees (Figure 44) could be recognised d in the new w office: a zone z for open innteraction (sofas, arm mchairs, annd a dining g table), a zone for concentration and cooperaation (meeting rooms, a sofa grooup), a zone for short visits (prinnters, coat racks, a kitchen) and a zonee for intensiive individuual work (a silent room m). Figure 4 Different zones in a multi-purpo m ose office.

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The peersonnel aree satisfied with the aatmospheree, the comm munication practices and the functionnality of thhe new officce. The offfice is used d for what it i was plannned: multi--purpose functionns. Studentss and workiing life parrtners visit the t room fo or guidance and meetin ngs. The new offfice contribuutes to the new n ways oof working and, a thereby y, also the oorganisation n culture of Laurrea UAS. 5 SIONS CONCLUS Designiing a multi--purpose offfice throughh Learning by b Develop ping was a ccomprehenssive case to impplement thee LbD mo odel. The process offfered auth hentic reseaarch and learning experiennces to faciility manag gement studdents in theiir own field d of study. A All the elem ments of the moodel, authennticity, creaativity, expperiential leearning, paartnership aand researcch, were present to some exxtent. Origin nally, there was a custo omer, Laureea UAS, whho was interrested in the resuult of the prroject. The framework enabled freeedom and creativity. The studen nts learnt from eeach other´s and personnel´s exxperiences throughou ut the proccess. The students cooperaated with seeveral stakeeholders butt instead off designing for the perrsonnel, co--creation approacch could be adopted in n the future projects. Users should be even m more in the centre c of the proccess. A reseearch reportt was drawnn up accordiing to the prrinciples off scientific research. r In addittion, severaal research tasks t were conducted during the process butt the metho ods were quite trraditional. Some S of theese could bee replaced with w versatile service design methods. In b designedd to last lon nger for a sttudent – onne or a few students the futuure, the proccess could be could coontinue in the t later phaases of the pprocess as facility f manaagement intternees. As a reesult for thee whole organization, a new cultu ure was creaated at the ccampus in terms t of ways of working. The person nnel from oold offices seem to bee interestedd in the new w office model. Quite manny of them visit the offfice regulaarly; after all, it is eassy to pop up u in the office aand have a chat c or a cu up of coffeee with a colleague. How wever, som me seem to be b afraid of the ppossibility that t all the offices o wouuld be desig gned the sam me way. Thhe value of the user experiennces collectted may be essential inn motivating g the suspiccious ones. Yet, more students are expected to stuudy at the caampus in a few years, which most certainly lleads to new w spacerelated developmennt projects: both officees and classrrooms. The dessign processs can be reepeated throough Learn ning by Dev veloping. A research approach a should bbe planned more careffully to helpp to identify y and demon nstrate the eeffectivenesss of the project..

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REFERENCES Bui, D, Guscina, O, Molnar, E, Wangmo, N (2012), “Efficient and organized future workplace design”. Student report for the course A0134 Workplace management, Laurea University of Applied Sciences, 6.12.2012. Haapamäki, J., Nenonen, S., Vartiainen, M. (2011), ”Uudet työnteon tavat haastavat kehittämään työympäristöjä”, Käyttäjälähtöiset tilat: Uutta ajattelua tilojen suunnitteluun, Tekes, Helsinki, 12-18. Hietanen, P., Mikkonen, V., Nenonen, S., Nissinen, S. (2011), ”Tilojen käyttö muuttuu – uudistuvatko suunnittelu ja toteutus”, Käyttäjälähtöiset tilat: Uutta ajattelua tilojen suunnitteluun, Tekes, Helsinki, 7-11. Hongisto,V., Haapakangas, A., Koskela, H. Keränen, J., Maula, H., Helenius, R., Nenonen, S., Hyrkkänen, U., Rasila, H., Sandberg, E, and Hyönä, J (2012), Käyttäjälähtöiset toimistotilat, tilaratkaisut, sisäympäristö ja tuottavuus, Toti-hankkeen loppuraportti, Työterveyslaitos, Helsinki. Nenonen, S. (2012), ”Näkökulmia monitilatoimistoon”, Available at: http://www.slideshare.net/Tekesslide/nkkulmia-monitilatoimistoon-nenonenaalto-2442012 (accessed 15 of January 2014). Raij, K. (2007), Learning by Developing, Laurea Publications A58, Helsinki. Robson, C. (1995), Real world research, A resource for social scientists and practionerresearchers, Blackwell, Oxford. Rondeau, E.P., Brown, R.K., Lapides, P. D. (2006), Facility Management. Wiley & Sons, New Jersey. Työterveyslaitos (2012), ”Monitilatoimisto suunnitellaan työn, tekijän ja organisaation mukaan, Tiedote 50/2012”, Available at: http://www.ttl.fi/fi/tiedotteet/Sivut/tiedote50_2012.aspx (accessed 15.1.2014). Vyakarnam, S, Illes, K, Kolmos, A and Madritsch, T (2008), Making a difference. A report on Learning by Developing – Innovation in Higher Education at Laurea University of Applied Sciences, Laurea publications B26, Helsinki.

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Reporting Sustainability in Facility Management Dr. Andrea Pelzeter Berlin School of Economics and Law [email protected] +4930 30877-2230

ABSTRACT Purpose This report investigated the status quo of sustainability reporting in Facility Management (FM) service providers operating in Germany. The aim is to determine in which form, according to which taxonomy and which content sustainability has thus far been reported on in FM. Theory Regarding taxonomy, sustainability reporting in accordance with Global Reporting Initiative Construction and Real Estate Sector Supplement (GRI CRESS) was taken as a basis. The investigation of the contents focussed upon the reflection of the sustainability criteria established by GEFMA German Facility Management Association e.V, which will be available from 2014 onwards in the form of guidelines and certification. Methodology The objects of the examination were those sustainability reports available on the Internet in the 2012 “Lünendonk List” of those FM services providers listed as being the top 25 in Germany. Findings 10 out of 25 companies publish their own independent sustainability report; a further 4 integrate their sustainability reporting in their annual reports. The taxonomy of GRI was used in 7 of the reports. Of the 24 GEFMA criteria, 21 were addressed in terms of content, of those 13 only seldom. 3 of the criteria have so far not been a subject of the sustainability reporting of FM service providers. Value The status quo of the sustainability reporting of FM service companies in Germany can serve as a starting point for international comparisons. Companies which are preparing a sustainability report can gain from this report an overview of the activities of the Top 25 FM service providers in Germany. Synergies between the sustainability reporting according to GRI and sustainability certification according to GEFMA are given, but only in partial areas.

Keywords Facility Management, sustainability sustainability certificate

report, Global

Reporting

Initiative,

GEFMA

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1 INTRODUCTION Sustainable economic activity has developed into a challenge that covers all sectors of the economy. In the field of Facility Management (FM) there is also a growing expectation that it is not merely expertise regarding the costs and quality-optimised performance of Facility Services that is purchased by way of a corresponding contract, but that a contribution towards the sustainability balance of the FM customer is being made at the same time (Nousiainen, Junnila, 2008, p. 266f.; Kummert, May, Pelzeter 2013a, p. 1; BIFM 2013). The reaction to this has been an increasing desire on the part of the FM service providers to systematically communicate the sustainability of their facility services. So far, two approaches had been available to them for such systematisation: the assessment system for sustainable buildings or reporting on the sustainability of the company itself, e.g. in accordance with the certifiable taxonomies of the Global Reporting Initiative GRI. In view of the fact, however, that neither a building nor the totality of a company’s activities allow one to draw conclusions pursuant the quality of the Facility Services performed for a specific customer, the GEFMA (German Facility Management Association e.V.) has developed a taxonomy of its own in its working group “Sustainability.” The 24 criteria listed therein for sustainable Facility Services form interfaces to both the buildings being managed and to company policy (Pelzeter 2013b, p. 33). The certification of the sustainability of the Facility Services performed – on the basis of the respective contract with reference to a specific building – is also planned. There will therefore be from 2014 onwards an additional possibility for those active in the FM sector to communicate the sustainability of their Facility Services. This paper, however, exclusively investigates the present communication in the context of sustainability reports. Accordingly, the sustainability reporting forms the theoretical background to the investigation. Sustainable development was defined by the Brundtland Report of the World Commission on Environment and Development (WECD) in the year 1987 as follows: “Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.” (Rottke, Landgraf, 2012, p. 29). In this work sustainability– as the result of sustainable development - is to be understood in terms of the three-dimensional model, consisting of the economic, the ecological and the social dimensions (Kopfmüller, 2007, p. 16). Sustainability reports are normally prepared for a great variety of stakeholders. They are intended to make the current state of sustainability development visible in terms of company activities, both within the company and outside it. Lauesen distinguishes between primary and secondary stakeholders (Lauesen 2013a, p. 1892ff; Lauesen 2013b, p. 2114ff). Primary stakeholders are shareholders and investors, as well as employees, customers and suppliers, as well as government bodies and local authorities. Secondary stakeholders are citizens of the community, real-estate owners, media representatives, interest groups and non-government organizations (NGOs). According to Coenen and others, FM customers can be further differentiated in terms of client (contract), customer (specifies delivery) and end-users (Coenen and others 2012, p. 79f). Each stakeholder has specific expectations of FM, respectively on the reporting (Clarkson, 1995, p. 101ff). As a help towards appropriately satisfying these multiple expectations in sustainability reports, recommendations are made in the international standards, or in international initiatives, on the contents of the reports.  AA 1000 (Account Ability). This standard is intended to help improve the credibility and quality of sustainability reports.  ISO 26000 (Guidance on Social Responsibility). A guideline adopted in September 2010, that is intended to promote a uniform understanding of social responsibility and is to be applicable for all sorts of organisations regardless of size and location.

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 GRI (Global Reporting Initiative). A guideline on the preparation of sustainability reports that is especially suitable for large international concerns. It contains concrete proposals on the use of (core) indicators in the dimensions ecology, economy, social life / society (for details see Ch. 4). Further variance in sustainability reporting can also be found in terms of the types of reports. They can be published as reports on corporate social responsibility (CSR), as part of the general business report or as a concrete sustainability report. Even separate reports on environmental management, e.g. in keeping with ISO 14001, cover a part of the dimensions of sustainability. The latter type, however, has not been integrated in the present investigation. The aim of sustainability reports can also vary. By their publication they can exert a feedback effect on the management in the sense of a control system (Henry and Journeault 2010). At the same time companies can pursue their marketing objectives with the publication in that they can thereby present themselves as sustainable and trustworthy (Belz and Peattie, 2009). 2 RESEARCH QUESTION From a scientific standpoint the status quo of sustainability reporting in the German FM branch is not documented. For this reason a quantitative and qualitative report is required particularly regarding the specific depiction of sustainability in Facility Services. From a practical standpoint, companies which have not yet prepared a sustainability report will find it interesting to learn what is currently customary in the FM branch.  Question 1: How widespread is the compilation of sustainability reports currently in the FM sector?  Question 2: What is the contents structure of these reports?  Question 3: Which FM-specific contents are already present in the reports today? The 25 largest FM-services providers according to the Lünendonk List 2012 (collected data from the year 2011, see Table 1, Lünendonk 2012) have been taken as a basis upon which to reflect the status quo in the FM sector. Lünendonk is the leading company in Germany that prepares rankings for the FM branch. This ranking list is published each year in August. It sorts the FM-companies according to the turnover they generate in Germany. The object of this investigation is the sustainability reports of those "Top 25" that had been published by July 2013. The group of FM companies has a joint turnover of about 11 billion euros, which accounts for approx. 19% of the turnover of 57.5 billion euros attributable to the FM market in Germany (Lünendonk 2012, p. 2). The remaining 81% of turnover is generated by many smaller companies. To this extent the Top 25 businesses on the Lünendonk List cannot be taken, in terms of their size, as being representative of the branch as a whole. Nevertheless, since sustainability reporting is typical for large companies (over 70% of the 100 largest companies per nation report on sustainability in the Americas, Europe and Asia Pacific, KPMG 2013) but untypical for the small and medium-sized businesses (Sweeney, 2007), the FM companies shown in Table 1 can be regarded as representative for the development of sustainability reports in the FM branch. 1 2 3

Table 1: Leading Facility Management Businesses in Germany in the Year 2011 According to the Lünendonk List 2012 Bilfinger 14 ISS Strabag 15 Götz Dussmann 16 Lattemann

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Compass Wisag Hochtief Sodexo Cofely Vinci Gegenbauer Klüh Piepenbrock Kötter

17 18 19 20 21 22 23 24 25

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RGM Johnson controls Dorfner Clemens Kleine Sauter Schubert Dr. Sasse WIS Bockholdt

The reports discovered by internet research were classified according to their structural incorporation (separate sustainability report or a part of the annual report) and orientation towards the existing reporting taxonomy of the Global Reporting Initiative (GRI) and were also reviewed for containing FM-specific topics. Such topics were defined as FM-specific that are defined more closely in the sustainability assessment of the GEFMA (further details in chapter 4). 3 RESEARCH TEAM The investigation was carried out by the author at the Berlin School of Economics and Law at the Department of Cooperative Studies. The fact that the author is also the leader of the GEFMA working group “Sustainability” enabled access to the criteria drawn up in the course of the years 2012 and 2013 for the assessment of sustainability in the FM sector even before the publication thereof in 2014. 4 EXISTING STANDARDS So far there is no obligation in Germany to publish sustainability reports, but this question has been repeatedly discussed (UN Global Compact 2013, p. 33). On a worldwide level a growing number of legal requirements in this area can nevertheless be observed (UNEP et al. 2013, p. 9). Overall, sustainability reporting in the real estate sector is on the increase (Stibbe, Voigtländer 2013, p. 8). In addition, a trend towards the integration of commercial and sustainability reports may be observed (James 2013, p. 15). The Global Reporting Initiative GRI has created, by way of an international, consensus-oriented dialogue with a wide variety of stakeholders, a recognised framework for sustainability reporting (O´Dwyer and Owen, 2008, p. 384ff.; Castelo 2013): which is referred to by various non-profit making, public and also political institutions such as UN Global Compact, the Federal Ministry of the Environment (BMU 2009), the German Council for Sustainable Development in the context of the German Sustainability Codex (Rat für Nachhaltige Entwicklung - Council for Sustainable Development 2012) or by ZIA (Zentraler Immobilien Ausschuss e.V. - German Real Estate Foundation, Mösle 2013, p.12). GRI requires a balanced, comparable and exact system of reporting (Hoffmann 2011, p. 76f.) on the following topics:  Company profile  Economic performance indicators  Environmental performance indicators  Social performance indicators  Labor practices and decent work performance indicators  Human rights 309


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 Society  Product responsibility The complementary criteria of the Real Estate Sector Supplement (CRESS), especially developed for the real estate sector, are assigned to the above-mentioned topics. One of the CRESS-criteria enquires about the nature and number of sustainability certifications for buildings managed by the company. In Germany the following systems for the certification of the sustainability of buildings are common: DGNB German Sustainable Building Council Seal of Approval, LEED Leadership in Energy and Environmental Design (developed in the USA) and BREEAM BRE Environmental Assessment Method (developed in the UK). It is in particular the respective system variants for existing buildings that allow one to draw conclusions pursuant to the sustainability-oriented actions of the FM. The key figures collected there regarding e.g. the consumption of resources by the facility during its useful life do not, however, reveal anything about the activities of the FM employees concerning the continuous improvement of the environmental and social impacts of a building in the context of the respective contractual conditions. In order to fill this void in the systematic measurement of sustainability in the FM sector (Pelzeter, May 2012, p. 38), 24 criteria have been developed by members of GEFMA. These have been sub-divided into the categories Environment, Economy, Society, FM Organisation and Facility Services, cf. Table 2. Table 2: GEFMA Sustainability criteria

Category Ecological Quality

Economic Quality Socio-Cultural Quality Quality of the FM Organisation

1 2 3 4 5 6 7 8 9 10 11 12 13

Services, depending on the commission (optional)

14 15 16 17 18 19 20

Criterion Energy Management Water Management Waste Disposal Management Disaster Management Utility Costs Management User Contentment Management Complaints Management Legal Conformity Indoor Air and Drinking Water Quality Building Security Management Work Safety Management (FM employees) Real Estate Management Strategy Human Resources Concept, Deployment, Organisation Workflow Organisation / Processes Documentation and Reporting Procurement Space Allocation Operation Maintenance Projects in Technical Facility Management (Modernisation / Restoration / Refurbishment 310


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Cleaning External Areas incl. Winter Services Catering Security

In most of the criteria the question of the sustainability-oriented quality of conception, realisation, control and renewed optimisation of the respective processes (Plan-Do-CheckAct-Cycle) is addressed. Also the utilisation of specific sustainability measures with regard to the individual services is monitored. Behind the keyword legal conformity lays the identification of all relevant legal regulations as well as the documented and systematic realisation thereof verified by audits. It is the legal regulations pursuant to safety that are at the centre of attention hereby, but not the prevention of criminal acts – as is striven for in e.g. internal regulations under the motto “Corporate Governance”. Regarding the question defined in the above, these GEFMA-criteria have been taken as the basis for the analysis of the contents of the sustainability reports from FM service providers. 5 RESEARCH METHODS For the period from May to July 2013 the homepages of all top 25 companies from the Lünendonk List were searched using the keywords “Nachhaltigkeit” (German), Sustainability, Corporate Social Responsibility and CSR. If this search did not lead to an independent sustainability report, then the annual company report was analysed. Statements pursuant to sustainability activities on the homepage were not taken into account. In the case of FM service providers that are part of a larger group of companies, the sustainability report usually covered the business activities of the entire group. This was the case with 5 of the reports examined: these reports have been integrated into the analysis. The use of GRI as a taxonomy for reporting is usually elucidated by the companies at the beginning or the end of the report by way of assigning individual statements or chapters to the GRI-criteria. The content analysis was carried out with the aid of a keywords matrix based on the GEFMA-criteria catalogue. The respective statements pursuant to the keyword in question and where they were found in the report of the individual company were noted herein. A statement in the sustainability or annual company report was registered as being thematically in accordance with the GEFMA criteria in the case that factual information had been available that contained a reference to sustainability (specific measures, processes, targets, success). The mere naming of a concept without any link to activities of the company was not deemed sufficient for this. A review extending beyond the thematic allocation, e.g. pursuant to a complete agreement between the statements and the GEFMA criteria profiles did not follow. 6 FINDINGS Of the 25 FM service providers on the Lünendonk List 14 companies had, by mid-July 2013, published a report that exclusively (10 reports) or in the context of the company’s annual reporting (4 reports) dealt with the question of sustainability in the company. Question 1 may thus be answered as follows:  Answer 1: The compilation of sustainability reports in the FM sector is becoming more widespread: significantly more than half (56%) of the companies investigated can point to a corresponding report.

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Pursuant to the question as to the structure of the reports it was reviewed whether reference to the taxonomy according to GRI had been made. This was the case in 7 out of 14 reports, exactly half of them. By way of comparison: world-wide the Initiative Global Real Estate Sustainability Benchmark established a percentage of 34% for the reports according to GRI (GRESB 2013, p. 20).  Answer 2: The systematisation of the contents of the reports according to GRI had been undertaken in half of the reports found (7 out of 14 reports). The analyses of matches between current report contents and those criteria recently defined by GEFMA for sustainable FM resulted, depending upon the criterion, in a widely varying picture, cf. Figure 1. “Energy Management” was reported on most frequently. This accords with the results of other investigations (Business and the Environment 2010, p.8; GRESB 2013, p. 20). The topic of “Work Safety Management” – with reference to the FM-employees - and the sustainability of the “Human Resources Concept” is also touched upon in the majority of cases (in 9 out of 14 reports). These are followed by two further criteria from the environmental sector in the shape of “Water” and “Waste Disposal Management”. Other criteria frequently integrated (8 matches) as “Real Estate Management Strategy”, “Workflow Organisation/Processes” and “Procurement” belong to the topics covered by the FM Organisation. Not mentioned at all from a sustainability point of view were the criteria “Disaster Management”, “Indoor Air and Drinking Water Quality” as well as “Technical Facility Management Projects” (e.g. regarding modernisation). A report on sustainability activities in specific services is implemented in part (between one and five matches): this rather seldom referencing is to be attributed in part to the fact that individual Facility Services are not reported on in detail in group annual reports.  Answer 3: FM-specific content – according to GEFMA criteria for sustainability in FM – is already to be found in part in the current sustainability reports of FM-companies. Matches are to be found particularly in the fields of “Environmental Quality” and “Quality of the FMOrganisation”. “Work Safety Management” is a further topic frequently to be found in the current reports (in 9 out of 14 reports).

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Figuree 1: Integratioon of GEFM MA-Sustainabbility Criteriaa in Sustainab bility Reportts (As of 7/2013) of th he Top 25 FM M-companiees in German ny

7 CONCLUS SION One m may deduce from thesse results tthat sustain nability rep ports are aattaining increasing importaance in the FM sector: if more thhan half off the 25 FM M companiees that geneerate the most tuurnover in Germany G pu ublish such a report, oth hers will fo ollow their eexample. Reporting accordinng to GRI would seem m to suggeest itself, bu ut is not without w alterrnative: hallf of the reports demonstraated sustain nability by way of in ndividually determinedd criteria or o report content. The facct that the GEFMA G critteria orienteed towards the sustainability of FFacility Serv vices are already being addrressed in cu urrent sustaiinability rep porting allo ows one to conclude th hat there ment of Faccility Serviices for in ndividual may bee possible synergies between thhe assessm propertiies or custoomers and company-sspecific susstainability reporting. T There is, however, h clearly no absolutee congruencce between the reportin ng topics in keeping wiith the GRII and the GEFMA A criteria. This T means that the twoo systems can be used as mutuallyy supplemen ntary for commuunication onn sustainabillity in FM. With thhe present description d of o the statuss quo in susstainability reporting oof FM busin nesses in Germanny researchers can now w draw botth a quantittative and a formal andd contents-oriented comparrison to other branchess, especiallyy in the serrvice sector. Further reesearch should take accountt of future developmen nts. The quuestion as to t why so little l attentiion has so far f been paid, inn the reportting, to indiividual topiics such as cost-beneffit managem ment would also be worth taaking a closser look at. The geeneralisationn of the results of thee investigation is limited by thee restriction n of the numberr of reports analysed to t the top 225 of the FM companiies. Here, aan extension of the would be revealinng. It woulld also be desirable, beyond thee boundariees of the thematic t integrattion of criteria, to analy yse a possibble conform mity in the deetails pursuaant to the GEFMAG 313


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criteria. This would be realisable after the conclusion of the pilot phase of the GEFMA certification. ACKNOWLEDGMENTS Tips from the anonymous experts provided valuable advice for the clear structuring and an internationally understandable presentation of this paper. REFERENCES Belz, F.-M. / Peattie, K. (2009), Sustainability Marketing: a Global Perspective. Glasgow. BIFM British Institute of Facilities Management (2013), Sustainability in Facilities Management Report 2013, available at (registration necessary): www.bifm.org.uk(accessed 28 October 2013). BMU Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit (Ed.) 2009, Nachhaltigkeitsberichterstattung – Empfehlungen für eine gute Unternehmenspraxis, Berlin (online available at: http://www.bmu.de/fileadmin/bmuimport/files/pdfs/allgemein/application/pdf/ broschuere_csr_nachhaltigkeitsberichterstattung.pdf, accessed 28 October 2013). Business and the Environment (2010), Tracking Sustainability, Sept 2010, p. 8-9, additional information available at: http://www.ireuse.com/upload/ireuse_FSDM_Surveyreport.pdf (accessed 28 October 2013). Castelo, B. M. (2013), Sustainability Reporting Guidelines, Encyclopedia of Corporate Social Responsibility, pp. 2389-2395. Clarkson, M. B. E. (1995), A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance, in: The Academy of Management Review, Vol. 20, No. 1 (Jan., 1995), pp. 92-117, Published by: Academy of Management, Stable URL: http://www.jstor.org/stable/258888. Accessed: 14 June 2013 Coenen, Ch./Alexander, K./Kok, Herman (2012), “FM as a value network: exploring relationships amongst key FM stakeholders” in: Jensen, P. A./van der Voordt, Th./ Coenen Ch. (Ed.) The added value of Facilities Management – Concepts, findings and perspectives, Polyteknisk Verlag, Lungby, Denmark, pp. 75-91. Global Reporting Initiative (2006), GRI 2006 - RG Leitfaden zur Nachhaltigkeitsberichterstattung, available at: https://www.globalreporting.org/resourcelibrary/German-G3-Reporting-Guidelines.pdf (accessed 18 October 2013). GRESB Global Real Estate Sustainability Benchmark (2013): 2013 GRESB Report, Amsterdam NL. Henry, J.-F. / Journeault, M. (2010), Eco-control: The influence of management control systems on environmental and economic performance, in: Accounting, Organisations and Society, vol. 35, no. 1, pp. 63-80. Hoffmann, T. (2011), Unternehmerische Nachhaltigkeitsberichterstattung –eine Analyse des GRI G3.1-Berichtsrahmens, Lohmar. James, M. L. (2013), „Reporting of Sustainability Efforts – a Case Exploring Issues, Benefits and Challenges“, Proceedings of the International Academy for Case Studies, Volume 20 Number 1, New Orleans, pp. 15-16. Kopfmüller, J. (2007), Auf dem Weg zu einem integrativen Nachhaltigkeitskonzept, in: Ökologisches Wirtschaften 1/2007, pp. 16-18.

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KPMG (2013), The KPMG Survey of Corporate Responsibility Reporting 2013, available at: http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/corporateresponsibility/Documents/corporate-responsibility-reporting-survey-2013-exec-summary.pdf (accessed 6th January 2014) Kummert, K./May, M./Pelzeter, A. (2013), Nachhaltiges Facility Management, Springer Verlag, Berlin Heidelberg. Lauesen, L. M. (2013a), Primary stakeholders, in: Encyclopedia of Corporate Social Responsibility, Springer Berlin Heidelberg, pp. 1892-1898. Lauesen, L. M. (2013b), Secondary stakeholders, in: Encyclopedia of Corporate Social Responsibility, Springer Berlin Heidelberg, pp. 2114-2119. Lünendonk (2012), Lünendonk-Liste: Führende Facility-Service-Unternehmen in Deutschland, accessible at: http://luenendonk.de/wpcontent/uploads/2012/07/LUE_PI_WP_Liste_2012_f0207126.pdf (acessed 19 October 2013) Mösle, P. (2013), Leitfaden zur Einführung von Nachhaltigkeitsmessungen im Immobilienportfolio, ZIA Zentraler Immobilien Ausschuss e.V. (Ed.), Berlin. Nousiainen, M. / Junnila, S. (2008), End-user requirements for green facility management, Journal of Facilities Management, Vol. 6, No. 4, 2008, pp. 266-278. O´Dwyer, B./Owen, D. L. (2008): Corporate Social Responsibility, the reporting and assurance dimension. In: Crane, A. et al, The Oxford Handbook of Corporate Social Responsibility, Chapter 17, Oxford University Press, New York, pp. 384-409. Pelzeter, A./May, M. (2012), “Key Performance Indicators for Sustainability in Facility Management” Proceedings EFMC'2012, Copenhagen (24-25 May 2012) S. 37-43. (ISBN 978-3-00-038361-8) Pelzeter, A. (2013a), „Nachhaltigkeit und Facility Management – Was darf man von der künftigen GEFMA-Richtlinie zur Nachhaltigkeit im FM erwarten?“, Facility Management, 1/2013, p. 33-34. Pelzeter, A. (2013b), Sustainability in Facility Management, Hauser, G./Lützkendorf, T./Eßig, N. (Ed.): Implementing Sustainability – Barriers and Chances, Book of Abstracts, sb13 Sustainable Building Conference, Munich April 24-26, 2013, Fraunhofer IRB Verlag 2013, p. 287-288. Rat für Nachhaltige Entwicklung (2012), The German Sustainability Code (GSC), available at: http://www.nachhaltigkeitsrat.de/uploads/media/RNE_The_German_Sustainability_Code_G SC_text_No_41_January_2012.pdf (accessed 28 October 2013). Rottke, N./Landgraf, D. (2010), Ökonomie vs. Ökologie – Nachhaltigkeit in der Immobilienwirtschaft, Köln 2010. Stibbe, R./Voigtländer, M. (2013), Corporate Social Responsibility in der Immobilienbranche, available at: http://www.iwkoeln.de/de/studien/iwtrends/beitrag/rosemarie-stibbe-michael-voigtlaender-corporate-social-responsibility-in-derimmobilienbranche-119298 (accessed 28 October 2013). Sweeney, L. (2007): Corporate Social Responsibility in Ireland: Barriers and Opportunities Experienced by SMEs When Undertaking CSR, Corporate Governance, Vol. 7: pp. 516-523. United Nations Environment Programme (UNEP), et al. (2013) Carrots and sticks Sustainability reporting policies worldwide – today’s best practice, tomorrow’s trends, available at: http://www.upj.de/fileadmin/user_upload/MAINdateien/Aktuelles/Nachrichten/carrots_sticks_2013.pdf (accessed 19 December 2013) UN Global Compact (2013), Jahrbuch 2011, available at: http://www.globalcompact.de/sites/default/files/themen/publikation/yearbook_2011.pdf (accessed 18 October 2013). 315


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SECTION TEN: FACILITIES MANAGEMENT RESEARCH WORLD Introduction Facilities Management Research World Per Anker Jensen Centre for Facilities Management – Realdania Research Technical University of Denmark

Papers Strategic FM Procurement: an issue of aligning services to business needs Akarapong Katchamart and Danny Shiem-Shen Then. Post Occupancy Evaluation for Improving of Main Dormitories (Choeng Doi) Tanut Waroonkun and Supuck Prugsiganont Facility Management in West- and Eastern Europe Alex Redlein and Michael Zobl.

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Introduction FM Research World Per Anker Jensen Centre for Facilities Management – Realdania Research, Technical University of Denmark BACKGROUND FM is an international profession and discipline, but it develops differently in different countries around the world. The start of FM took place in the USA, but was quickly followed by countries in Europe. FM has spread fast around the globe particularly in the English speaking countries, but increasingly also in several Asian countries. In Europe the strongest development has been in Western and Northern countries, but FM is becoming increasingly important in Southern and Eastern European countries as well. This development first of all concerns FM as a professional discipline and industry, but it can also be seen in the development of academic FM research and education with a certain delay. This international development is reflected by the papers in this session. The first paper is based on case studies from two European and two Asian countries. The second paper concerns a study from one Asian country and the third paper is a study based on data from several Western and Eastern European countries. THE THREE PAPERS In the first paper: “Strategic FM Procurement: an issue of aligning services to business needs”, Katchamart and Then focus on the interdependence between business need and strategic decision on FM procurement model. This interdependence underpins the reason behind strategic decision on FM procurement. The study is theoretically based on asset specificity and empirically on 7 case studies from Denmark, Hong Kong, Thailand and The Netherlands. The result is an identification of four types of core business characteristics that impacts on FM services and provision based on the degree of criticality to business continuity. In the second paper: “Post Occupancy Evaluation for Improving of Main Dormitories (Choeng Doi) Chiang Mai University”, Waroonkun and Prugsiganont focus on on evaluating how well dormitories at a university in Thailand meet student housing satisfaction at present and how to improve its environment with optimal building solutions. Student satisfaction was assessed through a Post Occupancy Evaluation questionnaire with eight main criteria of evaluating building aspects. The statistical analysis of the sample group revealed that building efficiency is the most significant factor influencing resident satisfaction. In the third paper: “Facility Management in West- and Eastern Europe”, Redlein and Zobl focus on areas of cost savings and increase of productivity for departments on the demand side of FM. The paper is based on mixed methodology using both qualitative and quantitative data from different European countries such as Austria, Germany, Bulgaria and Romania. The study shows that companies in Austria and Romania with an own FM department tend to achieve savings within more facility services in contrast to companies without an own FM department. An own FM department also leads to higher annual savings.

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Strategic FM Procurement: an issue of aligning services to business needs Akarapong Katchamart Centre for Facilities Management, DTU Management Engineering [email protected]

+669 4810 6767 Danny Then Shiem-shin The Hong Kong Polytechnic Univeridity [email protected] +852 2766 4558 ABSTRACT Purpose – To illustrate the interdependence between business need and strategic decision on facilities management (FM) procurement model. This interdependence underpins the reason behind strategic decision on FM procurement. It would assist decision makers on FM services procurement that fulfills business needs and enriches business outcomes. Design/methodology/approach – By a systematic review of FM-related literature, this research structures and investigates on three aspects of this interdependence between business delivery and FM services: 1. What characteristics of core business impact on FM service and provision? 2. What are the interconnections between business support and FM procurement decisions? and 3. What are the available FM services procurement options? Findings – There are four types of core business characteristics that impacts on FM services and provision based on the degree of criticality to business continuity. Each type of core business needs determines decisions on FM procurement which vary with the degree of collaborative relationship between decision makers and FM service providers. The degree of collaborative relationship encapsulates the number of communication channels, stakeholders’ involved, direction of data transfer and nature of data exchange. Consequently, the collaboration among parties involved determines the form and format of FM procurement model. Research limitations/implications – This approach can be used as a decision-making framework for management to assess its FM services procurement decision, and to justify the needs of FM provision and services. On the other hand, an FM organization can use it as a self-evaluation tool to evaluate its FM procurement and degree of alignment of its current offering with core business needs. As the approach is based on a limited number of detailed case studies, further empirical verification of various types of organizations and contexts will be needed. Originality/value Although this proposed approach is formulated within the context of FM procurement, its applications can be applied to other organizational support functions, for instance human resource (HR), information technology (IT) and finance services. Keywords: Business need, Business support, Alignment, Strategic FM procurement, FM procurement strategy.

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1.

INTRODUCTION Michael Porter´s organizational value chain (Porter, 1980) divides business units into two building blocks: (1) Primary activities are organizational core competencies that possess the competitive advantage to surpass their business competitors. They create the monetary value to the organization. (2) Support activities are an organizational non-core competency that supports the operation and production of the primary activities. They create the non– monetary value. The only monetary value contribution is cost reduction. FM is the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities, (CEN, 2010). Regarded as a non-organizational core competence and a non-critical function, FM activities are likely to be performed and contracted out to third parties who hold specialized knowledge and expertise. This managerial perspective confines the boundary of FM´s scope, role and function as their added value creation is only limited to achieving prescribed service levels at the lowest cost. As a result, other potential added value aspects from FM are being neglected. This research intends to unfold the unarticulated notions of added value of FM. A better understanding of added value opportunities from FM services provision will broaden existing corporate management´s perceptions of its abilities and utilities. The research deployed the asset specificity theory as an overarching framework by comparative analysis of FM literature with empirical findings from FM practices in selected case studies. The practical implication of this research is to illustrate the interdependence between business need and strategic decision on FM procurement. This interdependence underpins the reason behind strategic decision on FM procurement. It helps corporate management to make the decision on which FM functions should be outsourced and/or kept in-house, and under what circumstances the most effective and efficient collaborative relationship between FM organizations and their clients can be achieved. 2. OVERVIEW OF ASSET SPECIFICITY

Coase (1937) raised the question of what drives organizational form, and largely developed the theoretical framework referred to as transaction cost economy (TCE). The essence is that “economizing on transaction costs would determine the organization of economic activity, and the division of activity between firms and markets” (Milgrom and Roberts, 1992, p. 51). He proposed that a firm will replace the market provision when the costs of transacting within the firm are less than the costs of transacting through the market. The manner in which a transaction is organized depends on particular attributes of the transaction. Most TCE researchers (Williamson, 1979, 1981, 1985, 1996) discuss three critical transaction attributes: (1) Asset specificity; (2) Uncertainty; and (3) Frequency. Asset specificity is argued to be the most important factor in determining the choice of governance, namely hierarchy or market. Asset specificity was described as the ‘specialized ability’ by Marshall (1949, p. 172) in the transaction relationship that is required for particular functions and requirements. Williamson (1985, p. 95) defines asset specificity as ‘the degree to which an asset can be redeployed to alternative uses by alternative users without sacrifice of productive value’. TCE suggests that asset-specific investments should only be deployed on the expectation of substantial cost savings and/or value-adding advantages, but it also posits that asset specificity increases the hazards of opportunism and the transaction costs necessary to safeguard against the risk of opportunistic expropriation (Heide and Stump 1995; Parkhe 1993). Based on the level of asset specificity, firms will formulate an appropriate governance structure, with inter-firm relationship performance expected to be maximsed when

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opportunistic behavior incentivized by asset specificity is reduced (David and Han 2004; Lui et al. 2009; Rindfleisch and Heide 1997). De Vita et al. (2011) explain the usage of asset specificity as a core concept of TCE (also commonly referred to as transaction cost theory, TCT), which is still seen as the dominant theoretical framework for studying organizational boundary choices (Geyskens et al. 2006). In particular, asset specificity has become a key construct in research into make-or-buy decisions (Espino-Rodríguez et al. 2008) and the performance of buyer–supplier relationships (Artz 1999; Haugland 1999; Heide and Miner 1992; Heide and Stump 1995; Lui et al. 2006, 2009). 2.1

Seven Dimensions of Asset Specificity

Asset specificity consists of seven dimensions: Their characteristics are described below. Human asset specificity refers to the degree to which skills, knowledge and experience of a firm’s personnel are specific to the requirements of dealing with other firms (Zaheer and Venkatraman, 1995). It encompasses any unique knowledge or skills that suppliers develop through training, and represents specialized know-how or experience specific to a particular employer/employee relationship (Lamminmaki, 2005). Site asset specificity refers to the transaction relationship when the buyer and the supplier are in close proximity to a buyer or seller in terms of site, location and facility production. This aims to reduce inventory and other related processing costs. (Joskow, 1988; Lamminmaki, 2005; Morill and Morill 2003; Williamson, 1983). Physical asset specificity refers to investments in physical assets that are tailored to a specific transaction and have few alternative uses, owing to their specific characteristics (Joskow 1988; Morill and Morill 2003). Comparing with human asset specificity it is more tangible to measure and assess the uniqueness of equipment and tools required by the supplier for the purpose of the transactional relationship (Klein and Roth 1990; Heide and Stump 1995; Walker and Poppo 1991). Dedicated asset specificity refers to assets that are of general purpose as opposed to specialized uses (physical asset specificity), but which have been made for a particular transactional agreement that is likely to entail a long-term relationship (De Vita et al. 2011). Lamminmaki (2005) provides an example from the hotel industry as a hotel might expand its facilities on the assumption that delegates from a neighboring conference venue will use its facilities. Brand asset specificity refers to organizational reputation. For instance, a supplier could find himself in a position enabling him to directly or indirectly cause damage to the client’s reputation (Gatignon and Anderson 1988; Lamminmaki 2005; Lohtia et al. 1994). A buyersupplier relationship involving activities which have a direct and great impact on the overall business performance and brand reputation could be considered as high brand asset specificity. Temporal asset specificity refers to the matching of timing and co-ordination required by a transactional relationship between a buyer and a supplier. This concerns investment where timing and coordination of activities is critical, i.e. timing and coordination represent the high temporal asset (Lamminmaki 2005). An unsuccessful coordinating will lead to the failure of business outcome. Procedural asset specificity refers to organizational business processes, routines and workflows (De Vita et al. 2011). This type of asset specificity is common in service industry. The transactional relationship will be high when buyers heavily rely on suppliers who 320


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customize their work process to a particular buyer´s business process. It is difficult to replace once created or to redeploy without value reduction. These seven dimensions of asset specificity form distinct and interrelated, rather than substituted and isolated, dimensions of the construct. The interconnection of the asset specificity dimensions indicates that simply investigating one dimension of the construct may be inadequate. For example, physical, procedural and site specificity involve the allocation of staff with specialist knowledge and skills or specially trained personnel to perform the activity i.e. human asset specificity (Lamminmaki 2005). Site specificity may be highly correlated to temporal asset specificity to ensure smooth and zero downtime delivery of services, which enables the brand asset specificity in service industries where just-in-time delivery is a core activity of business operations. Similarly, temporal specificity may require the supplier and/or the buyer to assign specialized staff (human asset specificity) and customize existing operating process (procedural asset specificity) to meet the needs and requirements of the transactional relationship. 3. VALUE ADDED BY FM IN RELATION TO ASSET SPECIFICITY The key supportive role of FM to the core business involves managing facilities resources, support services and the working environment for both the short and long term (Then and Tan 2013, Chotipanich 2004; Tay and Oui 2001). In order to deliver facilities services or facilities products and/or add value to the client organization, FM needs to align the organization´s primary processes with facilities processes (CEN 2010, Then, 2003; Then and Tan, 2006). In order to align FM processes closely with its core business processes, FM organizations have to be involved in the strategic decision making process. However, FM is generally perceived among clients, customers and end-users as a back office function. This paper discusses asset specificity from FM activities and their performance that add value to the core business and surroundings, based on FM-related specialized abilities. The nature of the transactions between an FM organization (supply side) with its client (demand side) can be explained by asset specificity which describes the extent to which a given FM product or service is tailored to a client’s specific needs and requirements based on their “specialized abilities” in terms of the nature of the core business, customer type, primary activities, business needs and requirements. This paper proposes that the degree of asset specificity of FM services can also be implied as the degree of value added undertaken by an FM service provider to its host organization. The added value perceived by its host organization will be reflected in the adopted structure of FM´s scope, role and function within the organization. The appropriate FM provision is characterized by varying degrees of asset specificity depending on the complexity and customization of the FM products offering in terms of workplace solutions, service delivering, managerial skill sets, labor and workforce. The following presents seven types of asset specificity from FM-related specialized abilities that add value to the core business and surroundings: 

Human asset specificity represents specialized know-how or experience specific to particular FM organizations and their clients. It is acquired from both the prior work experience and emerging knowhow from performing a current job. It has limited relevance to other task situations and organizations.



Site asset specificity refers to reducing the commuting distance between the demand side and supply side. The supply side encompasses FM organizations from both in321


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house and service providers and sources of facilities and facility services. The proximity between both sides creates the cost advantage through the reduction of redundant information processes, transaction cost and real estate cost. 

Physical asset specificity can be seen as customized infrastructure, workspaces and FM services. FM organizations play a critical role to its client´s core business because their bespoke facility services and infrastructure are critical to the organization’s performance and business outcomes in terms of increasing customer satisfaction, employee productivity and organization´s revenue.



Dedicated asset specificity is contrary to physical asset specificity in that FM organizations offer a range of standardized FM services and provision. Organizations can benefit from dedicated asset specificity by optimizing economies of scope and scale. Economies of scale are offered by large investments in capacity which, although they are not bespoke, present problems in finding another buyer who wants to use the spare capacity (Finch, 1996). Economies of scope are offered by FM operations and management systems that encompass an entire FM supply chain, for instance the concept of TFM.



Brand asset specificity refers to FM practices that support the corporate culture, enhance the corporate reputation and help organizations to attract and retain potential talented employees. This brand asset specificity is aligned with the current organizational cultural strategy aimed at increasing the organizational capacity and capability.. Temporal asset specificity refers to added values created from time-sensitive FM applicability. It can be practiced in FM services and provision by just-in-time inventory practice that helps corporation to avoid and minimize the cost of inventory holding. Procedural asset specificity includes systems and practice of the client’s organization for which the FM organization’s processes and practices must integrate with their client´s work processes.





4. EXEMPLARY CASE STUDIES The case studies selection criterion is to maximize variations that aim to highlight the potential applications and capability of the asset specificity for the various contexts and circumstances in organizations from public, private and state-owned sectors. The data collection was carried out by semi-structured interviews with stakeholders from both the demand side and supply side spanning strategic, tactical and operational levels. The main interview theme focuses on an aligning of perception from the demand side (client, business units and end users) and implementation from the supply side (external service providers) on added value from FM services and provision to core business and surroundings, through their FM procurement strategy.

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LEGO

LEGO is a Danish toys manufacturing company. LEGO wants its FM operation and practices to align with its corporate culture (i.e. human asset specificity). Most of the FM products are performed by in-house staff. FM department wants to deliver its FM products in a timely manner according to its client’s, customers’ and end users’ needs with the least costs of inventory holding (i.e. temporal asset specificity). LEGO’s ownership strategy is to lease real estate for not more than 10 years because of flexibility and uncertainties of market price. The flexibility of FM product can be also classified as temporal asset specificity from the FM organization to LEGO. 4.2 Mærsk Mærsk´s core business is oil and gas exploration, retail store, container tower, container shipping and related businesses. Mærsk aims to focus only on its core business and assigns the support service tasks to professional service providers. Mærsk’s real estate and FM strategy is to rent all buildings and outsourcing to capable FM providers to perform Mærsk´s facility support services. Mærsk requires the stripped down and standardized FM services that support the operation of primary activities with a low rate of operational downtime. Mærsk has adopted a Total FM (TFM) sourcing arrangement by contracting out FM support services to a single FM provider (Johnson Controls Inc. (JCI)) at a global level. JCI´s specialized ability is dedicated asset specificity because Mærsk´s core business benefits from economies of scope and scale of a service provider who possesses the managerial capacity and operational capability. 4.3

PTT Public Company Limited (PTT)

PTT is a Thai state-owned energy company. Previously, subsidiary companies of PTT rented office spaces separately around Bangkok and contracted out FM services individually. To consolidate the amount of workplace and standardized FM practices among its subsidiary companies and to reduce the FM operating and administrative costs, ENCO was established as a semi-autonomous company responsible for managing FM services and provision for the new office campus. One single centralized location is considered as site asset specificity to PTT´s subsidiary companies. At the initial phase of organizational re-structuring, there was a shortage of FM knowledge, expertise and workforces, so ENCO heavily relies on external FM professional skills, both managerial expertise and technical skills from its main service provider; CBRE. ENCO currently needs to employ human asset specificity from CBRE. This office campus is intended to be a multi-tenants office for subsidiaries companies by sharing the common area and FM services. PTT can benefit from economies of scope and scale of shared service which can be classified as dedicated asset specificity. 4.4

PTTEP (PTT Exploration and Production)

PTT Exploration and Production (PTTEP) is a subsidiary of PTT. PTTEP had experienced leaks of confidential information from temporary FM workers causing security problems and loss of business opportunities. PTTEP thus relies on trusted employees– especially blue collar workers at the operational level who are have access to all areas. The challenge in managing the FM workforce is a high rate of FM staff turnover because the operational FM job comprises only routine tasks, with low pay, fringe benefits and job security. In order to decrease the churn rate of FM employees, attracting and retaining trusted and skilled workers and increasing employee loyalty are critical. The FM department initiated collaboration between PTT´s HR and service providers. PTTEP offers above average fringe benefits to FM blue collar workers and treats them as internal PTTEP ´s employees. In this respect, the requirements of a given type of FM workforce are considered as a human asset specificity. In

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cases of contractor termination and vendor switching, PTTEP will continue to hire the incumbent FM staffs but selects the new service providers to supervise them. This collaborative initiative can also be seen as brand asset specificity. It increases PTT’s reputation as PTTEP´s host organization remains one of the most attractive workplaces in Thailand. 4.5

Hong Kong Science and Technology Parks (HKSTP)

HKSTPC (Hong Kong Science and Technology Parks Corporation) manages and provides purpose-built R&D office spaces, advanced laboratories and technical support services for technology-oriented start-up companies and multinational corporations. This brand asset specificity enables and brands Hong Kong’s position as a regional technology hub. The single office campus is dedicated as site asset specificity to tenants. FM processes are embedded with tenant´s activities because technology-savvy tenants demand the most reliable FM services and provisions to ensure reliably delivery of their operations and activities. This arrangement can be considered as procedural asset specificity. In order to manage and organize the world class facility hub, the FM organization in collaboration with a service provider (ISS) initiated a facilities manager trainee program that aims to develop and cultivate FM practitioners who have the appropriate FM knowledge ranging from technical to managerial skills. The exchange of knowledge between internal FM knowledge and external FM provider operational expertise can be perceived as human asset specificity. 4.6

Dutch central government

The Dutch central government had to reduce operating costs and staffing levels in thirteen government departments. Each of them had its own FM organization, provision arrangement and practices. It caused redundancy and non-standardized FM products and practices within the Dutch state agency. The Dutch central government commenced an organizational merger which led to the consolidation from thirteen business units into one centralized unit. FM as a support function from each public department was amalgamated into one single department and reports directly to the central department. This can be a source of added value by service standardization, consolidation of common functions across the multiple organizations, economies of scale and scope, reduction of the redundant information processes and transaction cost reduction. This demonstrates a case based on dedicated asset specificity. 4.7

Thai central government

Previously 35 state agencies rented and leased their own workplaces spreading across Bangkok greater area. The Thai central government then initiated an office campus project as a state property management project by offering office space to government agencies at the right budget. The Thai central government established Dhanarak Asset Development (DAD) as the independent subsidiary company of the central government for managing FM provision and services for the government office complex. This centralized location can be considered as site asset specificity. DAD can increase its negotiation power for procurement of FM services. The Thai government can benefit from economies of scale and scope which is based on dedicated asset specificity. 5

DISCUSSION

Chotipanich (2004) pinpoints two main basic factors that impact the choices of facilities and services needs in organizational decision making process: first, internal factors, such as organizational characteristics, facilities features and business sector and second, external factors, such as economic, social, environment, legislation and regulation, FM market context

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and local culture and context. These factors define the characteristics of decision making behavior and the primary stakeholders who are involved in the decision making process. Asset specificity theory adds another external determinant factor that justifies FM´s scope, role and function in the given organization: FM-related specialized abilities. It is considered as the above the line contribution or offering from FM organizations. It can be connoted as the value added from FM provisions and services to the organization´s core business. This paper formulates four value adding positions and their associated characteristics of FMrelated specialized abilities that add value to the core business and surroundings. Each of them has a particular characteristic of collaborative relationships between the FM organizations and their stakeholders. This also explains the rationales and actions behind the strategic decision making on the what, and why of outsourced FM support functions. In order to deliver the right specialized abilities to the demand side this paper argues that each type of collaborative relationship requires different groups of primary stakeholders as follows:  FM-related specialized abilities that support the operation of the organizational primary activities running more effectively and efficiently with a cost advantage. This type of FM-related specialized ability is relevant to dedicated asset specificity that corporations could benefit from achieving economies of scope and/or scale. FM organizations need to collaborate with senior management of the given organization. It is the conventional spot-market relationship with a cost–sensitive contractual agreement. However, the involvement of the FM organization is only at the operational level. FM services and provisions are required as a commodity, which has no significant difference among different FM providers.  FM-related specialized abilities that enable the organizational capacity and capability with the specific organization´s demands. In this category, the FM organizations and their demand side establish one-off decisions and implementations responding to current organizational demands. The FM organizations offer cutting-edge practices, performance framework, processes and managerial expertise that enable organizational productivity, business profitability, operational efficiency and effectiveness and also end user satisfaction. This includes three asset specificities: brand, site and temporal asset specificity. FM organizations need to collaborate with one or more of the business unit directors and senior management of the client’s organization at the operational and tactical levels. The FM providers and their host organizations mutually share economic risks and benefits. Cost reduction still plays a key role in the decision making process.  FM-related specialized abilities that ensure the operation and performance continuity of primary activities continuing to operate normally and without interruption. FM organizations offer FM services and provisions focusing on operational reliability and minimizing the operation downtime. Corporations rely on FM knowledge, workforce, skills and expertise that are aligned with the host organization’s business processes. This covers two asset specificities: procedural and human asset specific. The FM organizations need to be highly collaborative and engage with a board of business units’ directors, particularly production. Under this arrangement, the FM organizations and their host organizations share mutual risks, benefits, trust and a committed relationship. The

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FM organizations and their clients’ relationships move from a spot market-driven relationship towards becoming the preferred partners. The FM working processes are embedded into the organizations´ primary activities. Facilities managers play a key role from tactical to strategic levels.  FM-related specialized abilities that enhance operational performance and business outcomes of the core business. In this category, the FM performances immediately and directly impact the end users’ perceptions and satisfactions. Their service specifications are highly customized by end users’ requirements in order to enhance the end users´ satisfaction and productivity. Any downtimes will immediately impact on the organizational operations and outcomes. The FM organization co-creates and customizes the FM services and provision specification with all relevant stakeholders with involvement from client, business units and end users. This type of FM-related specialized ability is relevant to physical asset specificity that highly customizes infrastructure, workspace and FM services to FM´s stakeholders. The FM organization needs to collaborate with the end users of the client’s organization. The roles and responsibilities of FM shift away from supportive roles to becoming part of an organizational core functions. The facilities manager can engage in the client’s organization´s decision making process. From the above discussions, FM-related specialized abilities involved with procedural, human and physical asset specificities should be kept in-house unless corporations need to find the most optimal way to fulfill their needs from the demand side with FM-related specialized abilities from external suppliers. Such corporations tend to outsource or out-task FM provision and services to external service providers who hold particular skills and expertise. Each of them requires a specific managerial approach. For example, FM activities that provide dedicated asset specificity with cost advantage may not need to engage in strategic decision as much as physical asset specificity that enhances organizational performance and outcomes. In cases when a corporate decision on FM procurement provision is made by senior management to take advantage of purely cost advantage (i.e. dedicated asset specificity), other stakeholder groups including FM organizations may be excluded from the decision making process. 6

CONCLUSION

The above value adding poistions can also be applied to create a constructive dialogue between both demand and supply sides to converge and align FM´s offerings with core business´s expectations. From the supply side, FM organizations can use the proposed FM specialized abilities to develop their capacity, capability, competency and resource to supply core business´s needs and requirements. From the demand side, clients can use the proposed value adding positions to define and manipulate the role of service providers in relation to FM potential contributions. For further development a larger sample size of empirical data is need to be investigated in order to validate this exploratory paper.

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Milgrom P. and Roberts J. (1992), Economics, Organization and Management, Prentice Hall, New York, NY. Morill, C. and Morill, J. (2003), “Internal auditors and the external audit: a transaction cost perspective”, Managerial Auditing Journal, Vol. 18, pp. 490–504. Lamminmaki, D. (2005), “Why do hotels outsource? An investigation using asset specificity”, International Journal of Contemporary Hospitality Management, Vol. 17, pp. 516–528. Parkhe, A. (1993), “Strategic alliance structuring: a game theoretic and transaction cost examination of interfirm cooperation”, Academy of Management Journal, Vol. 36, pp. 794– 829. Porter, M.E. (1980), Competitive Strategy, Free Press, New York, NY. Rindfleisch, A. and Heide, J.B. (1997), “Transaction cost analysis: past, present, and future”, Journal of Marketing, 61, pp. 30–54. Tay, L. and Oui, Joseph, T.L. (2001), “Facilities management: a “Jack of all trade”?, Facilities, Vol. 19 No. 10, pp. 357-362. Then, D. S. S. (2003), “Integrated resources management structure for facilities provision and management”, Journal of Performance of Constructed Facilities, Vol. 17, No. 1, pp. 34-42. Then, D. S. S. and Tan, T. H. (2006), “Aligning facilities management performance to business needs – an exploratory model linking FM performance to business performance”, Proceedings of Trondheim CIBW70 International Symposium – Changing users demands in buildings, Trondheim, Norway, Edited by Haugen, T.I., Mourn, A. and Brochner, J, 12-14 June, 2006, 340-349. Then, D. S. S. and Tan, T. H. (2013), Facilities Management and the Business of Managing Assets. Routledge, 2013. Walker, G. and Poppo, L. (1991), “Profit centres, single source supplies, and transaction costs”, Administrative Science Quarterly, Vol. 36, pp. 66–87. Williamson, O.E. (1979), “Transaction cost economics: the governance of contractual relations”, Journal of Law and Economics, Vol. 22, pp. 233–261. Williamson, O.E. (1981), “The economics of Organization: The Transaction Cost Approach”, The American Journal of Sociology, Vol. 87, No. 3 (Nov., 1981) pp. 548–577. Williamson, O.E. (1983), “Credible commitments: using hostages to support exchange”, American Economic Review, Vol. 73, pp. 519–540. Williamson, O.E. (1985), The Economic Institutions of Capitalism, Free Press, New York, NY. Williamson, O.E. (1996), The Mechanisms of Governance, Oxford University Press, New York, NY. Zaheer, A. and Venkatraman, N. (1995), “Relational governance as an interorganizational strategy: an empirical test of the role of trust in economic exchange”, Strategic Management Journal, Vol. 16, pp. 373–392.

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Post Occupancy Evaluation for Improving of Main Dormitories (Choeng Doi) Assistant Professor Dr. Tanut Waroonkun Faculty of Architecture Chiang Mai University, Chiang Mai, Thailand [email protected] 66 84 378 0429 Supuck Prugsiganont Faculty of Architecture Chiang Mai University, Chiang Mai, Thailand [email protected] Abstract Objective: In 2007 Chiangmai University Administration decided to refurbish Choeng Doi dormitories and provide the conditions that met with student satisfaction levels and conformed to the Living and Learning Concept (LLC). This paper focuses on an evaluation of the success of this undertaking and the viability of the POE theory in producing building guidelines that would result in a living and learning environment. Methodology: Van der Voordt’s eight criteria of building evaluation were adopted as the key tools for the research methodology. Randomly selected students who resided in Choeng Doi dormitory during 2009 (Choeng Doi women’s dormitory 1-9 and men’s dormitory 2-7) were chosen for a questionnaire survey. The data collection process involved 152 students and was repeated, as a basis of comparison, by interviewing an additional 30 students. The research output was statistically analyzed and used to explore the level of student satisfaction and the relevance of the POE theory in creating improvement guidelines that result in a Living and Learning environment. Results: On assessment of the results using the POE theory it is clear that the overall levels of building efficiency and student satisfaction are below the standards acceptable to CMU for student accommodation and considerable improvement is required. Conclusion: The POE theory is appropriate as a building assessment gauge for student dormitories in Chiang Mai University. However, POE alone is inadequate for the production of a Living and Learning environment. To produce more comprehensive restoration guidelines that would create such an environment, a behavioral study and additional research is required. Keywords: Choeng Doi Dormitories, Post Occupancy Evaluation, Living and Learning 1 Introduction Chiang Mai University founded on January 24th 1965 was the first university built in the Northern region of Thailand. Initially there were only three faculties but now there are twenty faculties and one college, totaling 29,048 students at both undergraduate and postgraduate levels (Office of the Higher Education Commission, 2008). For the majority of students attending the university, Chiang Mai is not their hometown (Student Development Division, 2009). Consequently, the university decided to construct halls of residence. Choeng Doi, the first campus dormitories to be constructed, are 3 to 4 storey buildings, comprising 6 males dormitories and 9 female dormitories (Chiang Mai University Student Welfare Division, 2003) as shown in figure 1-3. The Choeng Doi dormitories have similar floor plans and can be arranged into 4 groups (shown in table 1)

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Table 1: shows the Choeng Doi dormitories by grouping and gender Group

Dormitory number - male

Dormitory number - female

A

3

4,9

B

4

5,6

C

5,6

1,7,8

D

7

2,3

E

2

-

1.1 Problems and solutions affecting Choeng Doi dormitories After 45 years the dormitories are becoming dilapidated and require renovation and modernization, adapting to the current behavior patterns of students (as shown in figure 4). The University wanted the dormitories to be not only regular accommodation but also an environment for education and the development of social skills. Therefore Chiang Mai University administration decided to upgrade the existing buildings by integrating the social welfare and student halls to create a complex called the Living and Learning Center. Through the course of their life, the dormitories have not been assessed. Therefore, the researchers decided on the Post Occupancy Evaluation (POE) method of Van der Voordt (2004) as the main approach to surveying the satisfaction of students who reside in the dormitories. Statistical analysis of the data collected from the POE would then be used for suggesting improvements to the dormitories’ facilities. 2 Proposal of the study The proposal of the study is listed as followed: 1. To assess the building’s function using the Post Occupancy Evaluation theory. 2. To introduce the Living and Learning approach into the existing building of Choeng Doi dormitories. 3. To suggest improvement-guidelines for the Choeng Doi Dormitory that conforms to the LLC approach and student’s behavior. 3 Research Question Is the POE theory sufficient to assess the existing buildings and to create an improvement guideline that can promote a Living and Learning environment for Cheong Doi dormitory? 4 Student Dormitory as a Living and Learning Center The Office of the Higher Education Commission supports the Living and Learning concept as the main approach to the adaptation of the design of the students’ dormitories because the concept encourages student development. Chaowanapreecha (1984), Grimm (1993) and Kelly (2006) discovered a significant decrease in the number of first year students vacating dormitories that had adopted the Living and Learning concept. Grimm (1993) and Inthya (2003) have categorized the Living and Learning concept into five major elements listed as follows: 1. The need for creative activities in various fields, such as academic group discussion.

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2. The requireement of sttaff or studdents to be active in the t center iin order to provide consultationn and guidaance for studdents. boration; 3. An arrangeement of thee physical eenvironmentt which enccourages stuudent collab such as liviing room an nd recreationn room. ourses that are a not a paart of the academic 4. An inclusioon of intereesting activiities and co curriculum; such as co ooking and ddancing. back mechaanism. 5. The creatioon of a feedb

Figuree1: dorm 3 men andd dorm 4&9 women n

Figure2: ddorm 4 men and dorrm 5&6 women

Figure3: dorm m 5&6 men and dorm m 1,7,8 women number 1 – bathroom number 2 – living g area number 3 – hallwaay and staircase

Figure 4-6 6: residential hall downstaiirs facilities an nd student’s rooom

5 Post Occup pancy Evalluation Post Occcupancy Evaluation (P POE) is thee process off evaluating g buildings iin a system matic and rigorouus manner affter they haave been buiilt and occu upied for some time (Prrieser, 1988 8). POE mainly focuses on the functio on and physsical setting g of the building. The pattern of POE P has been deeveloped in the United States of A America sincce the 1960ss. The PO OE method is i usually conducted c bby collecting g data from m the buildinng’s occupaants, via questionnnaires, to determine levels of saatisfaction and opinions toward tthe function n of the built ennvironment (Turid Horg gen and Sheeila Sheridaan, 1996).

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Vischer (2001), Watson&Thomson (2004) agreed that POE method is the universal standard. Preiser (1989) also stated that POE is an important tool in renovation and refurbishment of existing buildings. Wener (1994) also stated that the POE method is appropriate for academic research due to its procedure and clarity of data collection and is accepted by the British Council for Offices (BCO). This method not only allows students who stay at Choeng Doi dormitories as participants to evaluate the building’s functions via the questionnaire but also helps identify which function of the building needs design improvement. In order to assess the Choeng Doi dormitory eight POE criteria from Van der Voordt (2004) were adopted because these criteria evaluate and cover every section of the building as shown in table 2. Table 2: Show the eight Criteria of Evaluation and the Building Aspects are as follows: number

Criteria

1

Accessibility

2

Building Efficiency

3

Explanation

Example

Dormitory can be accessed easily

There are clear entrances and exits

Percentage or proportion of building’s rentable area

The room arrangement on each floor is not too crowded and the number of rooms is not excessive.

Area sufficient

The area is sufficient to the needs of the students

Sufficient parking area

4

Area flexibility

The area is flexible to the needs of the students

Each usable section can support students’ recreation activities

5

Area allocation

The facilities in the dormitories is allocated

Each service section is allocated to the function and to support students’ activities

6

Security

Dormitory provides strict security

Fire safety management, security guard, and surveillance cameras

7

Privacy

Privacy in the living area of the dormitory

Students can perform activities without being annoyed from outside environment

8

Physical appropriateness

Appropriate cleanliness, sufficient lighting and no sound disturbance

No noise disturbance in the student’s sleeping quarters

6 Post Occupancy Evaluation for assessing accommodation POE theory is the first systematic procedure to assess building performance from the user’s point of view (Preiser & Nasar, 2008). Preiser (1969) assessed Virginia tech dormitory and the results showed an error rate 3-5%, he concluded that the rating scale (the method to collect data) creates quality profiles. Subsequently this theory was adopted to assess many types of buildings such as hospitals, shopping malls and office buildings. The theory became popular worldwide after Preiser, Rabinowitz & White (1988) published the first POE textbook. POE theory became popular in Asia during the year 2000. Several research studies were conducted using POE to evaluate housing accommodation and public buildings.

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Kaya & Erkip (2001) examined and evaluated the effects of floor height and perception of room size. However, the conclusion did not include improvement guidelines. The research results showed only students’ satisfaction toward dormitory room. Huy (2008) assessed the subsidized Dong Da apartment in Vietnam. The research results included a review of user satisfaction and recommendation guidelines. From the many studies conducted, some results showed only the overall satisfaction levels whereas others displayed satisfaction levels and provided suggestions for improvement. 7

Research Methods The research was performed according to the following procedures: 1. Review of literature and research concerning the Living and Learning concept and Post Occupancy Evaluation theories. 2. First stage collection of data, conducted by questionnaire, from 152 randomly selected residents of Cheong Doi dormitory. Selection utilized purposive sampling at reliability 0.8(Yamane, 1973; Huy, 2008 and Paphakorn, 1995). 3. Statistical analysis of data from the questionnaire. 4. Second stage collection of data from 30 more students as a basis of corroboration of first stage analysis. 5. Evaluation of the two stages of collected data, to produce improvement guidelines. 6. Analysis of the improvement guidelines in the context of producing a Living and Learning environment.

Review LL concept and POE theory and develop questionnai

First stage, collect data from 152 students who reside in Choeng Doi dormitory

Statistical analysis

Second stage, interview 30 students, this stage corroborates and to confirm the relevant of the first stage

Data analysis

Guidelines for the improvement of Choeng Doi Dormitory

Analyze improvement guideline if it could create the LL environment

Diagram1: research methodology diagram

8 Data Analysis Results The student’s satisfaction towards each facility was moderate to low. The level of students’ satisfaction towards the dormitories on the ground floor and upper floor level is shown in table3. Table 3: Satisfaction levels of ground floor level and upper floor level according to POE criteria. level of rating scale: 5 – very satisfied, 4-satisfied, 3-average, 2-poor, 1- unacceptable POE criteria lower floor Security Building efficiency Overall satisfaction

Student’s Satisfaction Level ( x ) 2.50 2.90 2.90

S.D. 0.50 0.32 0.47

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13th EuroFM Research Symposium Area allocation Physical appropriateness Area sufficient Privacy Accessibility Area flexibility

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0.58 0.41

3.05 3.07 3.12 2.99

0.60 0.60 0.44 0.66

Table 3 (continue): Satisfaction levels of ground floor level and upper floor level according to POE POE criteria Upper floor Security Overall satisfaction Accessibility Building efficiency Physical appropriateness Area sufficient Privacy Area flexibility Area allocation

Student’s Satisfaction Level ( x )

S.D.

2.32 2.68 2.78 2.85 2.91

0.57 0.52 0.58 0.39 0.50

2.95 3.00 3.10 3.12

0.61 0.45 0.48 0.33

Prugsiganont, S. and Waroonkul, T. (2011) analysed satisfaction levels towards the whole building and found that the POE criteria with the lowest levels of satisfaction were the security system, area allocation and overall satisfaction. Correlation analysis (calculated from the statistical analysis of the mean ( x ) of students’ satisfaction level) was used to discover the most influential POE criteria toward student’s satisfaction. The results showed that Building Efficiency with a statistically significant correlation value closer to one (one being the highest) is the most influential criteria toward student’s satisfaction. The correlation analysis values of ground floor and upper floor level of Choeng Doi dormitories are shown in table 4. Table 4: Correlation value of building efficiency on ground floor and upper floor level Highest value is 1.00 with statistical significance Facilities lower floor TV room Reading room Living room Restroom Dining room Parking area Garbage disposal area Upper floor Bedroom Restroom Computer room

Correlation value 0.72 0.72 0.70 0.70 0.63 0.48 0.37 0.83 0.81 0.73

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Conseqquently, anyy improvem ment to thee dormitory y and its facilities f m must start from fr the standpooint of Building Efficiency and c orrespond to t Post Occcupancy Evaaluation theeory and the Liviing and Leaarning conceept. Other bbuilding asp pects can bee improved later. Regresssion analyssis determiined whichh facility of the dormitory shhould be first f for improveement. The r-square vaalues defineed which faacilities - on n the groundd and upperr floors needed the utmost improvemeent, as show wn in tables 5. Taable 5: Regression analysis value of each faciility on grou und floor annd upper flo oor Facilitiees Lower floor f TV room m Living room r Dining room r Upper floor f Bedroom m Restroom m Computter room

R--square (%)) 68 65 65 81 78 65

8 A Analysis of Choeng C Do oi Dormitorry Improveement Meth hods Wener (1994) stateed that dataa confirmatiion is needeed to finalizze the data aanalysis in the t POE processs. Thereforee, a second stage of daata collectio on involving g the intervview of a fu urther 30 studentss was condducted to co orroborate tthe first staage of data analysis. The interviiew was designeed upon thee analysis reesults not aan open inteerview. An A improvem ment guidelline was then creeated upon confirmatio on of the ressults. Table 6 shows the percentagge of studen nts in the sample group who were in an undergraduuate program m. Table 6: thee percentage of students in i undergradu uate program m Undergraduate proogram Freshmen juniors seniors sophomores

Percentag ge 80 10 6.7 3.3

The firsst and secoond stage of data colleecting weree analyzed. The resultts from thee second stage off data collecction were similar s to thhe first stagee analysis reesults. Only ly POE criteeria with a Standdard Deviatiion (S.D.) value v equivvalent 3.0 or o lower (the highest iss 5.0 lowesst is 1.0) were seelected for satisfaction s level analyssis (Prugsig ganont, 2011 1). The ressults from statistical analysis annd interview w indicate that Buildiing Efficien ncy and Physicaal appropriaateness are the t most inffluential criiteria effecting studentt satisfaction n levels. The im mprovementt guideliness were prooduced usin ng the resu ults from the analysiis (both statisticcal and interrview). Taable 7 show ws the impro ovement guidelines of each facilitty of the buildingg. Tablee 7: Show thee improvemeent guideline of each facility of the buuilding Plan numberr Facilitty Sugggestions Lower ffloor level 1.

Dining room

- Alloccate more areaa for dining ro oom - Replaace and add m more furniture - Increease the cleanlliness standard d - Preveent stray dogss. - Improve the internnet signal

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2

Living rooom

- impro ove for open-aair and light for f all times - replaaced the damagged and worn n-out furnitu ure - installl book shelvees - impro ove internet siign

3

TV room

- openn plan and largger television

4

Reading room

5

a Parking area

8

Restroom m

7

Garbage

8

Security

9

Safety

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- replaace and repair the damaged furniture - allocate more areaa for versatile activities a - impro ove the light iin the room deecorating with bright color succh cream and white - adjust the furnituree matching with various o utilization aand reading bo ooks such as types of installiing lamps andd every table should s provid de equipment ffor laptop utilization - set ru ules to preventt disturbance in the reading g room - This area should bbe under or beh hind the buildin ng - sufficcient parking area - securrity should be provide - increase size and nnumber of resstroom to 4 rooms - installl additional s anitary wares - repaiir worn out utiility - proviide separate tyype of rubbish h bin on each floor - garbaage disposal aarea should be completely closed and locate neear the main sttreet - Security guards a - Proviide fire prevenntion system and surveilllance cameraa

Upper ffloor 1

Bedroom

2

Restroom m

3

Computerr room

- installl more corriddor lights - replaace worn out ffurniture - proviide bookshelvves over the reeading table - adjusst reading areaa for more priv vacy - impro ove internet siignal - installl air-conditiooning system such s as fan and veentilation ductt fan - increase the restrooom size - replaace and repair damage sanitary wares - proviide the waitingg area or lock ker room area - impro ove ventilatioon system - installl more lights and provide cleaning c schedu ule - comb bine computerr room and reaading room - installl more compuuters - replaace part of thee computer roo om with glass wall w - replaace damaged aand worn out furniture f - proviide photocopyy machine , prrinter and scanneer - impro ove internet siignal - installl air-conditioon system - installl ventilation ffan - proviide the accuraate cleaning scchedule

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9 Conclusion The eight criteria from Van der Voordt‘s POE theory are relevant for an assessment of Choeng Doi dormitories. The theory displayed accurate results with little error and allowed assessment of every aspect of the buildings. The results showed low levels of student satisfaction towards every facility in the building due to the age of the buildings. Guidelines for improvement were produced using results from the analysis. However, refurbishment of the building could not be accomplished purely as a logical outcome of Van der Voordt’s framework. POE alone is inadequate for the production of a Living and Learning environment. To produce more comprehensive restoration guidelines that would create such an environment, behavioral studies and additional research are required. Several procedures were neglected such as staff interview, one-on-one interview and behavioral research. To create a Living and Learning environment further research is required. 10 Further studies This paper focuses on an evaluation of the viability of the POE theory in production building guidelines that would produce a Living and Learning environment. The results displayed the level of students’ satisfaction toward every facility of the buildings. The POE approach made the study more standardized with less error. Thus, in order to make the study more novelty, further research especially a behavioral research is required. The results from this study should be compared with similar studies. 11

References

Chiang Mai University Student Welfare Division. (2003), Introduction of Student Residential Halls, Chiang Mai University Student Welfare Division the Office of Vice Chancellor, Chiang Mai University. Chowanapreecha, H (1984), A survey of student role orientation as perceived by students in teachers college, A master thesis Chulalongkorn University. Kaya, N. and Erkip, F (2001), Satisfaction in a dormitory building: The effects of floor height on the perception of room size and crowding, Environ. Behav., 33, 33-53, DOI: 10.1177/00139160121972855. Grimm, James C (1993), Residential Alternatives in Student Hosing and Residential Life: A Handbook for Professionals Committed to student Development Goals, San Francisco : Jossey – Bass Publishers. Horgen, T and Sheridan, S (1996), Post-occupancy evaluation of facilities: a participatory approach to programming and design, Facilities Volume 14 Number 7/8 July/August, 1996 pp 16-25, MCB University Press, ISBN 0263-2772. Huy, Nguyen Q (2008), Post-Occupancy Evaluation of Subsidized Apartments in Vietnam: A Case of Dong Da Apartment Complex in Hue, A master thesis The Graduated School Chiang Mai University 2008. Inthya, I (2003), Comparative of Khon Kean University Student’s Living Between University Dormitory and Private Dormitory, A Master Thesis Chulalongkorn University. Jarudull, D (2002), An Improvement of Design of Multi Unit Chenag Wattana Residence for Judge, A master thesis Chulalongkorn University. Kelley, S.B., Rishi, R.S. & Leigh, A.M (2006), Criteria for Promoting Living – Learning Center Student Success, 2006 American Society for Engineering Education. Office of the Higher Education Comission (2008), Annual Report of Students Wellfare (2008), The Office of Vice Chancellor, Chiang Mai University.

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Preiser, W.F.E and Nasar, J.L (2008), Assessing Building Performance: It Evolution from Post-occupancy Evaluation, Archnet-IJAR, International Journal of Architectural ResearchVolume 2. Preiser, W.F.E (1994), Building evaluation: conceptual basic, benefits and user, Journal of Architectural and Planning Research 11 (2). Preiser, W.F.E (1989), Advances in Post-occupancy Evaluation: Knowledge, methods and applications, in: Van Hoodgaleem, H., Prak, N.L. & Van der Voordt, D.J.M, H.B.R. Preiser, W.F.E (1969), Behavioral Design Criteria in Student Housing, In H. Sanoff and S.Cohn (eds.), Proceedings of the First Environmental Design Research Association Conference, North Carolina State University, Raleigh, North Calorina, USA. Preiser, W. F. E., Rabinowitz, H. Z. & White, E. T (1988), Post Occupancy Evaluation, New York: Van Nostrand Reinhold. Prugsiganont, S. and Waroonkul, T (2011), Post Occupancy-Evaluation for Improvement of Cheang Doi Residential Halls to Living and Learing Center, Art and Architecture Journal Naresuan University, 1(2), 42-53. Student Development Division (2009), Student Development Division, The Office of Vice Chancellor, Chiang Mai University. Suwantada, P (1995), A Study of Housing Demand for Khonkaen University Students Residence. A master thesis, Chulalongkorn University. Van der Voordt, T. J. M (2004), An Integral tool for Diagnostic Evaluation of Non-territorial offices. In: B, Martens and A.G. Keul (eds), Designing Social Innovation. Planning, Buliding, Evaluating. Bottingen: Hogrefe &Huber Publishers, 241-250. Visher, J (2001), Post-occupancy Evaluation: A Multifaceted Tools for Building Improvement, learning from our buildings: a state-of-the-practice summary of postoccupancy evaluation, Washington DC, National Academy Press. Wener , E.R (1994), Post Occupancy Evaluation Procedure: Instruments and Instructions for Use. Developed with assistance , The National Institute of Corrections under Grant Number 92J-OIGHQ3. Yamane, T (1973), Statistic An Introduction Analysis. New York. Longman. ISBN10: 0060473134.

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Facility Management in West- and Eastern Europe Alexander Redlein Vienna University of Technology, IFM [email protected] Michael Zobl Vienna University of Technology, IFM [email protected] ABSTRACT Facility Management (FM) coordinates a wide range of facility services and the management of which can contribute to the success or partial failure of an organizations business in different countries. Since 2005 the Vienna University of Technology analyze the demand side of FM on a yearly basis in different European countries such as Austria, Germany, Bulgaria and Romania. The goal is to determine the value added of the use of FM respectively FM departments and the parameters influencing the magnitude with the help of scientific models and methods. Areas of savings and increase of productivity, and reasons for these effects are derivate directly from a statistical sounded sample. The populations for the surveys were the Top 500 companies in the different countries (ranking is sales driven). The research is based on the Mixed Method Approach and the Mixed Model Research.

Keywords Facility Management, value added, mixed method approach, statistical analysis 1 INTRODUCTION Facility Management (FM) is a key function in managing facility services and working environment to support the core business of the organization. A lot of companies have recognized FM as an important management strategy capable to reduce costs of facilities (Chotipanich, 2004). A discussion is taking place about the added value of FM as a function within organizations and the services they provide. A clear expression of this is the large number of FM-related studies that have been conducted focusing on different aspects of FM and their added value for primary processes, quality, time, risk and relationship quality (Kok et al., 2011). An article by Pathirage et al. focused on knowledge management in FM. Two articles (Chau et al., 2003, Hui et al., 2008) are focused on value enhancements of refurbishment and therefore on economical value. Other studies focused on the importance of organizational issues in the value adding process. Improving productivity and decreasing costs turned out to be the most discussed areas of adding value by corporate real estate management. Some authors raised the issue of flexibility as a significant aspect that can add value to corporate business (Jensen et al., 2012a). Wauters (2005) is focusing more on benchmarking than on added value and provides examples of combining cost benchmarking with indicators for user satisfaction, performance and service quality (Jensen et al., 2012b). Jensen et al. developed the FM Value Map which was presented at the research symposium during EFMC 2009. The FM Value Map is a conceptual framework to understand and explain the different ways that FM can create value for a core business as well as the surroundings for the benefits of multiple stakeholders: owners, staff, costumer and society. The aim of this research was to select exemplary cases of FM adding value in the companies and to find convincing ways to present them to make FM interesting for managers (Jensen, 2010). An article by Appel-Meulenbroek (2010) is about added value of facilities by

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knowledge sharing through co-presence in open plan office areas (Jensen et al., 2012a). According to different publications it is possible to save between 10 and 30% of the costs of buildings through the (efficient) use of FM. In most cases, figures about the economic effects/benefits of FM are based on the study of a single company or the data presented is not specified in detail. In both cases, data cannot be used for a general proof of the economic efficiency/value added of FM (Zechel et al., 2005, Scharer, 2002). The figures are also subject to large variations. Therefore there is a need to determine the value added of the use of FM respectively FM departments and the parameters influencing the magnitude with the help of scientific models and methods. Since 2005 the Vienna University of Technology (TU Vienna) analyze the demand side of FM on a yearly basis in different European countries such as Austria, Germany, Bulgaria, Romania Turkey and the Netherlands (companies were selected randomly). The researches have been based on a (standardized) questionnaire survey. One of the attempts to prove the profitability and efficiency of FM was performed by Susanne Hauk in “Wirtschaftlichkeit von Facility Management” (Hauk, 2007). Another research project at the TU Vienna analyzed if there is a difference whether a separate FM department has been established or not. The author’s also defined additional parameters that have influence on the efficiency of FM. Examples for these parameters are: areas of cost saving and availability of cost and building data and usage of CAFM (Computer Aided Facility Management). The study proved that companies with an own FM department tend to achieve savings within more Facility Services (Redlein and Sustr, 2008). This research paper shows further results of the actual surveys. The authors used statistical models to prove if there is an (significant) correlation between different variables/parameters. 2 METHODOLOGY AND STATISTICS In literature, three major research paradigms to collect the required data can be found: Quantitative Research Method, Qualitative Research Method and Mixed Research. Both, quantitative and qualitative methods have particular lacks of strength. So the authors used the research method “Mixed Research”. The Mixed Research is a general type of research in which quantitative and qualitative methods, techniques, or other paradigm characteristics are mixed in an overall study. The two major types are the Mixed Method Research/Approach and the Mixed Model Research (Johnson and Christensen, 2007). The Mixed Method Approach combines quantitative surveys with qualitative data collection methods e.g. personal interviews, expert groups, focus groups with professionals and content analysis (Jensen et al., 2012a). The researcher uses the qualitative research paradigm for one phase of the study and the quantitative research paradigm for another phase of the study (Johnson and Christensen, 2007). Its logic of inquiry includes the use of induction (discovery of patterns), deduction (testing of theories and hypotheses) and abduction (uncovering and relying on the best of a set of explanations for understanding one’s results). Taking a mixed position allows researchers to mix and match design components that offer the best chance of answering their specific questions (Johnson and Onwuegbuzie, 2004). Based on the Mixed Method Research, the studies include quantitative and qualitative research phases. The qualitative studies (literature review, brainstorming, expert interviews and group discussions) were used primarily for the collection of the potential benefits and efficiency/value added of FM and the parameters influencing the magnitude of the effects. Based on the quantitative studies (facility management surveys since 2005) the results of the qualitative studies were analyzed and validated. Each year the results of the previous studies and expert’s interviews (qualitative step) are used to optimize the new questionnaire. Then the survey is carried out (quantitative step). Questions are rephrased if necessary, added or deleted (Hizgilov and

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Redlein, 2011). Also the Mixed Model Research was used. The qualitative and quantitative approaches are mixed within a research phase. The questionnaire included summated rating scales (quantitative data collection) and open-ended questions for qualitative data collection (Johnson and Onwuegbuzie, 2004). The standardized questionnaire for the survey with closed and opened questions was subdivided into the main areas:  the general part (which includes for example questions about the industry of the company, number of employees, turnover, number of sites)  the part about FM organization (questions about the availability of a FM department, number of employees and the position in the hierarchy of the company etc.)  value added (e.g. cost drivers and savings through the introduction of FM, increase of productivity through the use of FM)  the way of service provision (number of external service providers etc.)  IT support (e.g. used IT systems for example ERP and CAFM systems, areas of IT support)  Sustainability (e.g. what contribution can FM deliver to sustainability, CSR) In the questionnaire/survey productivity was defined as: Increase in productivity = More output with the same input e.g. staff; respectively increase of output per unit of input. Depending on the answers there are up to about forty questions. The populations for the surveys were the Top 500 companies (ranking is sales driven) in the different countries. These companies were selected randomly in each country. Interviewees were the internal Facility Managers or the persons responsible for all FM tasks according to the European Norm EN 15221-1. Tools for the surveys were phone and/or E-Mail and personal face-to-face interviews. The phone interviews with the Facility Managers respectively the persons responsible for all FM tasks of the different companies were carried out by one researcher, thus the manner of questioning was always the same. This was done to secure the data quality. To ensure the plausibility and validity of the data the results of the different research steps were compared with each other and with other studies in this research field. The data (answers) were entered in a MS Access database and afterwards exported into statistical programs and analyzed and evaluated. As mentioned before the questionnaire included also questions with open answering possibilities. That means that answers need to be reviewed, if necessary renamed and afterwards clustered to make findings comparable. The renaming and clustering was double checked to ensure correctness. In addition, the results are validated by questioning the outliers, retracements and changes in trends. Additional points were validated through internet research. SPSS is used to evaluate the data and to set up statistical models. An equivalent test was used for comparing the average performance of two groups to verify if there is a difference between two populations on the basis of the random sample from these populations (Dodge, 2008). The basis of statistics is parameter estimation, i.e., when an attempt is made to estimate the parameters (mean and standard deviation) of a population from a random sample. Most statistical techniques rely on the underlying distribution being of a particular type, such as the normal distribution, for inferences made from the relevant statistical tests to be valid. Where the underlying data is non-normal a different set of statistical techniques, the nonparametric statistics, can be fruitfully applied to understand data. These techniques are distribution-free since they make no assumptions about the underlying distribution of the data (Boslaugh and Watters, 2008).

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Most commonly used nonparametric procedures are the median test, the Mann-Whitney U test, the Wilcoxon Test, the Kruskal-Wallis test and the Friedman test. Because of the nonnormal distribution of the data the authors used the Wilcoxon Test to verify if there is a difference between two populations on the basis of the random samples from these populations (Dodge, 2008). The Wilcoxon Test can be used as a nonparametric replacement or substitute for the t-Test. Most nonparametric methods use statistics, such as the median, that are resistant to outliers and skewness. If the data are measurements at the ordinal level in the first place, as with sets of rank, or nominal data, a nonparametric test is obligatory (Kinnear and Gray, 2008). 3

RESULTS

3.1 General Facts (Organization of FM) Figure 1 shows the portion of companies with an own FM department in Austria, Germany, Bulgaria and Romania. In the last years the portion of companies with an own FM department is growing. The slight decrease of companies with an own FM department in Austria from 2011 to 2012 can be explained by the random sample. In 2012 more small companies participated in the Austrian survey. Statistical models support the hypothesis that this decrease of the percentage of FM departments is due to the change of the random sample. For example the statistical test shows that with an increasing number of office employees there’s an increasing tendency towards an own FM department within the company. However, the share of companies with an own FM department is on a high level. Especially in Bulgaria there was a huge increase in the portion of companies with an own FM department from 2007 to 2008. This trend can also be found in Romania. The importance of FM departments is underlined by its organizational integration within the company’s hierarchy. The bandwidth of FM departments organizational integrated as staff unit ranges from 19% in Germany to 35% in Austria. The share of FM departments integrated as line function ranges from 33% in Bulgaria to 67% in Romania. The increased awareness for FM is also evident in the rise of companies having a description of tasks for the FM area. Most of the surveyed companies (75% or more) in the different countries had a task description. Companies having a description of tasks for the FM department frequently have assigned the tasks to specific persons. Even FM does not equal outsourcing, outsourcing is an important method within FM. The most outsourced facility services are cleaning, winter service, waste management, technical maintenance and heating/ventilation/air conditioning. Figure 1 Portion of companies with an own FM department (Austria, Germany, Bulgaria, Romania)

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Portion of companies with an own FM department 100% 90%

79%

80% 70%

68%

80%

85%

87%

90%

87% 70%

75%

73% 55%

60% 50% 40%

35%

30% 20% 10% 0%

3.2 Value Drivers Value as a concept has different meanings and usages (Jensen et al., 2012b). In the past added value was seen as a combination of price and quality. Nowadays added value is considered as a complex concept that can be studied from different perspectives (Kok et al., 2011). The concept of value has become popular in some of the literature on management. An example is Porter’s theory on value chains, which relates to exchange value. Another example is the strategic thinking by Teece about non-tradable assets like knowledge, brands and service concepts, which relate to use value (Jensen et al., 2012b). There appears to be broad consensus about added value being the ratio between benefits and sacrifices for the costumer. Risk is also mentioned as a separate aspect. The assessment of and decision about added value involves a trade-off and a choice between different criteria – benefits, costs and risks – which in themselves are difficult to compare (Kok et al., 2011). Whereas some years ago the main purpose of FM was cost savings, nowadays purposes and demands of FM have changed. Aspects like the improvement of the market position became more and more important. Moreover, qualitative aspects like higher satisfaction of the employees which result in higher motivation and productivity are also consequences of the introduction of FM. It is still not possible to quantify all benefit effects. While the cost savings and the productivity improvement can be calculated, the strategic competitive advantage is only decidable (Hauk, 2007). In our studies value added of FM includes cost savings and increase in productivity on the one side and on the other side cost drivers (Mierl, 2012). Cost drivers require differentiated cost planning and cost control. They are measures of cost causation and resource use and output (Leidig, 2004). The biggest cost drivers of the surveyed countries (number of mentions) include areas such as energy, maintenance/repair, safety, cleaning and launching new software. The most relevant areas of cost savings (number of mentions) were areas such as energy, cleaning, maintenance/repair and personnel. Savings were mainly possibly through new type of contract, rates, technical upgrade, reorganization and utilization of synergies. The most named areas in which an increase in productivity could be observed (number of answers) are: administration, personnel, safety, maintenance/repair and data. Reasons for an increase in 343


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productivity are: process optimization, work utilization, utilization of synergies and personnel/employee workload optimization. Based on the data several hypotheses concerning savings through the use of FM could be validated. One hypothesis is that companies with an own FM department tend to have a higher number of facility services with savings (areas of cost savings) than companies without an own FM department. An own FM department allows better management of facility services (e.g. cleaning, maintenance/repair) and guarantees the best realization of an optimal real estate management. As a result, economic optimizations in different facility services can be performed (Hauk, 2007). The number of facility services with savings (areas of cost savings) was analyzed in detail. As a hypothesis it was stated that the existence of a FM department (yes/no) has an influence on the number of facility services with savings. In detail, the Wilcoxon Test was used for comparing the average performance of two groups to verify if there is a difference between two populations on the basis of the random samples from these populations (Dodge, 2008). The data for Romania 2013 and Austria 2012 will be considered. The null hypothesis (H0) states that, in the population, the two medians are equal, which means that there is “no effect”. The alternative hypothesis (H1) states that there is a difference between the two medians, which means that there is an “effect”. The Wilcoxon Test is said to show significance if the p-value is less than the significance level (p < 0.05). Then the null hypothesis (H0) is rejected and the alternative hypothesis (H1) is supported (Kinnear and Gray, 2008). The null hypothesis is: H0 = Companies with an own FM department tend to the same number of facility services with savings than those without an own FM department. The alternative hypothesis is: H1 = Companies with an own FM department tend to have a higher number of facility services with savings than those without an own FM department. Tested Variable(s): Number of facility services with savings (number of nominations, e.g. energy, cleaning, maintenance/repair) for Austria 2012 and Romania 2013 Variable of Grouping: FM department (yes/no) for Austria 2012 and Romania 2013 Table 1 Number of Facility Services with Savings – FM department

Number of facility services with savings ‐ FM department Austria 2012 Romania 2013 FM Without FM FM Without FM department department department department N 63 8 10 1 Mean* 1.86 .88 1.70 1.00 Median* 2.00 1.00 2.00 1.00 Std. Deviation* .998 .641 .674 ‐ → validated with 0.000000025466 → p ‐ value H1 → validated with 0.011412 → H1 * FM services with savings (number of mentions) 344


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The significant results (p < 0.05) of the test show that there is a difference between the two medians, which means that there is an effect (H1). Companies with an own FM department tend to have more areas of cost saving than companies without an own FM department. An own FM department manages the different facility services better. In addition, through the central management of facility services synergies between the different services can be used. This model proves that an own FM department allows better management of facility services and therefore economic optimization and cost savings in different facility services such as cleaning or maintenance/repair can be performed. Another hypothesis is that companies with an own FM department tend to have higher annual savings than companies without an own FM department. The null hypothesis is: H0 = Companies with an own FM department tend to have the same annual savings than those without an own FM department. The alternative hypothesis is: H1 = Companies with an own FM department tend to have higher annual savings than companies without an own FM department. Tested Variable(s): Annual Savings (%) for Austria 2012 and Romania 2013 Variable of Grouping: FM department (yes/no) for Austria 2012 and Romania 2013 Table 2 Annual Savings – FM department

Annual Savings (%) ‐ FM department Austria 2012 Romania 2013 FM Without FM FM Without FM department department department department N 43 3 7 1 Mean* 12.26 .67 16.00 15.00 Median* 10.00 .00 15.00 15.00 Minimum* .00 .00 5.00 15.00 Maximum* 30.00 2.00 30.00 15.00 Std. Deviation* 8.098 1.155 8.485 ‐ → validated with 0.000000028316 → p ‐ value H1 → validated with 0.011513 → H1 * Annual Savings through FM (%) The significant results show that there is an effect (H1). Companies with an own FM department tend to have higher annual savings than companies without an own FM department. An own FM department guarantees the best realization of an optimal real estate management. The expert knowledge of an optimal management makes it possible to achieve savings through the use of FM. For example, clearly arranged real estate documents, contracts and floor plans at one central place help to identify cost saving potentials (Redlein et al., 2007).

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4 CONCLUSION AND NEXT STEPS The share of companies with an own FM department is on a high level all over Europe. FM is a very important tool to achieve an increase in (annual) savings and productivity. According to the statistical analysis based on the data of the studies an own FM department had positive effects on annual savings, such as energy and cleaning. FM also leads to an increase in productivity. Most named areas were administration, personnel and maintenance/repair. The study proved that companies in Austria and Romania with an own FM department tend to achieve savings within more facility services in contrast to companies without an own FM department. An own FM department also leads to higher annual savings. In both cases the Wilcoxon Test shows a significant result. That means that there is a (statistical) significant difference between the two groups (FM department yes/no) and the tested variables (annual savings, facility services with savings). Further studies can include an investigation of “soft factors” and more detailed analyses of different industries and/or countries are possible to gather more information and an expansion of the data. In addition, a comparison of this study with similar ones from other countries would help to gather more information about this research field. REFERENCES Boslaugh, S., Watters, P. A. (2008): Statistics in a Nutshell. O’Reilly Media: Sebastopol. Chau, K. W., Wong, S. K., Leung, A. Y., Yiu, C. Y. (2003): Estimating the value enhancement effects of refurbishment. In: Facilities, Vol. 21, No. 1/2, pp. 13-19. Chotipanich, S. (2004): Positioning facility management. In: Facilities, Vol. 22, No. 13/14, pp. 364-372. Dodge, Y. (2008): The Concise Encyclopedia of Statistics. Springer Verlag: Berlin, Heidelberg. Hauk, S. (2007): Wirtschaftlichkeit von Facility Management. Dissertation, TU Wien. Hizgilov, T., Redlein, A. (2011): Einsparungspotenziale, Produktivitätssteigerungen und Kostentreiber im Facility Management. In: Journal für Facility Management, Vol. 3, pp. 1825. Hui, E. C. M., Wong, J. T. Y., Wan, J. K. M. (2008): The evidence of value enhancement resulting from rehabilitation. In: Facilities, Vol. 26, No. 1/2, pp. 16-32. Jensen, P. A. (2010): The Facilities Management Value Map: a conceptual framework. In: Facilities, Vol. 28, No. 3/4, pp. 175-188. Jensen, P. A., van der Voordt, T., Coenen, C., von Felten, D., Lindholm, A.-L., Nielsen, S. B., Riratanaphong, C., Pfenninger, M. (2012a): In search for the added value of FM: What we know and what we need to learn. In: Facilities, Vol. 30, No. 5, pp. 199-217. Jensen, P. A., van der Voordt, T., Coenen, C. (2012b): The added value of Facilities Management: Concepts, Findings and Perspectives. Polyteknisk Forlag, Lyngby. Johnson, B., Christensen, L. (2007): Educational Research: Quantitative, Qualitative and Mixed Approaches. SAGE Publications, Thousand Oaks, 3th edition. Johnson, R. B., Onwuegbuzie, A. J. (2004): Mixed Method Research: A research paradigm whose time has come: In: Educational Researcher, Vol. 33, No. 7, pp. 14-26. Kinnear, P., Gray C. (2008): SPSS 15 made simple. Psychology Press, New York. Kok, H. B., Mobach, M. P., Omta, O. S. W. F. (2011): The added value of facility management in the educational environment. In: Journal of Facilities Management, Vol. 9, Issue 4, pp. 249-265. Leidig, G. (2004): Prozesskosten-Management. Arbeitskreis Klein- und Mittelbetriebe (AKM) Eschborn. http://www.rkw-

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kompetenzzentrum.de/fileadmin/media/Dokumente/Publikationen/2004_FB_ProzesskostenManagement.pdf (accessed on 07.01.2014) Mierl, M. (2012): Trends und Status Quo 2011 im Facility Management im Vergleich mit 2010. Master Thesis, TU Wien. Redlein, A., Schauerhuber, M., Hauk, S. (2007): Parameters for an economic efficient implementation of FM. In: 6th EuroFM Research Symposium, Zurich, Switzerland, 26 and 27 June 2007, Conference Papers, pp. 109-116. Redlein, A., Sustr, F. (2008): Economic Effective Implementation of FM. Research Paper, TU Wien. Scharer, M. (2002): Wirtschaftlichkeitsanalyse von CAFM Systemen. Diplomarbeit, WU Wien. Zechel, P., Bächle, A., Balck, H., Felix, P., Flecker, G., Friedrichs, K., Geertsma, C., Henzelmann, T., Hovestadt, L., Hovestadt, V., Janecek, M., Mende, W. and Neumann, G. (2000): Facility Management in der Praxis: Herausforderung in Gegenwart und Zukunft. Expert Verlag: Renningen.

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SECTION ELEVEN: RESEARCH IN PROGRESS Introduction Research in Progress Keith Alexander Centre for Facilities Management, Manchester, UK

Papers Safety and Security matters in FM Daniel Haas and Stefan Jäschke. Facilities Management Approach For Achieving Sustainability in Commercial Buildings in Nigeria. Olayinka Olaniyi, Andrew Smith, Champika Liyanage and Akintola Akintoye. Facilities Planning Promoting Efficient Space Use at Hospital Buildings Emma Zijlstra, Mark P. Mobach, Cees P. van der Schans and Mariët Hagedoorn.

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Introduction Research in Progress Keith Alexander Centre for Facilities Management, Manchester, UK This section includes papers that describe research in progress and provides the opportunity to discuss research at an exploratory stage. The authors are researchers at an early stage of their career and inclusion of these papers provides the opportunity for discussion of their ideas and interests. We hope that they will benefit from the advice and support offered. EuroFM wishes to encourage their future involvement in the research network, which offers the promise of their commitment to continue to contribute as the next generation of FM researchers. Research by Haas explores ways in which FM can contribute to an organization’s effectiveness in dealing with safety and security issues. The paper proposes the use of risk management techniques to manage these issues in the context of organisations. Early conclusions suggest that FMers should act as moderators to encourage better understanding amongst different stakeholders. Oliniyi sets out to determine the extent of sustainable facilities management practice in the management of commercial buildings in Nigeria. He seeks to identify barriers to it, in order to develop a solution model that will identify ways of overcoming these barriers. Ultimately this will suggest sustainable methods by which facility managers in Nigeria can effectively manage commercial properties. Early findings have identified the commitment of senior managers as a major driver in achieving of sustainable FM. Zijlstra explores if facilities planning can improve the level of space utilization and the speed of care delivery at a diagnostic outpatient clinic. By comparing planned and actual space use. End user characteristics.

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Safety and Security in FM: achieving effectiveness Daniel Haas Institute of Facility Management, Zurich University of Applied Sciences [email protected] +41 58 934 54 97 Prof. Dr.-Ing. Stefan Jäschke Institute of Facility Management, Zurich University of Applied Sciences [email protected]

ABSTRACT Safety & Security (S&S) issues are increasingly part of the Facilities Management (FM) business. Rightfully as they are part of the scope of FM according to EN 15221-1:2006. However, there seems to be lack of scientific research addressing S&S in the FM community. Today, the S&S field has no clear agreement on their strategy and structure, whereby the conventional collaboration with the different stakeholders appears to be uncoordinated and complicated. Besides FM these stakeholders are: clients, different service providers, public authorities and insurance companies with their own perspectives and understanding of S&S requirements. This leads to the research question: “How could FM contribute to an organization’s effectiveness dealing with Safety & Security matters?” To identify and explore the tapped potential of involving FM regarding a company’s demand for S&S a total of 4 expert interviews, 9 problem centred interviews, as well as 3 group discussions with different stakeholders in German speaking countries were conducted. Interpretation and thematic coding have been used to analyse the interviews afterwards. The main finding is that FM should, especially when dealing with S&S matters, retain a generalist role and function and act as a moderator to compensate the identified principal lack of understanding between the different stakeholders. Thereby an integration of the topic to holistic Risk Management is important. Though FM’s position in companies is favourably to create and maintain awareness for S&S matters which are essential for the effectiveness of all measures.

Keywords Facilities Management, Safety, Security, Risk Management, Awareness

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1 INTRODUCTION The day to day business of Facility Management (FM) is made up of a wide range of services and responsibilities. A definition of the scope of services which could belong to the FM service portfolio is made by the CEN European Committee for Standardization (2006) in the standard EN 15221-1. Safety and security (S&S) services, as typical support services are thereby allocated to the scope of FM, as it has become a more and more important issue for organisations (Erben & Romeike, 2006). The scope in terms of “health, safety and security” thereby comprises, that the “client demand for a safe environment (health, safety and security) is satisfied by services that protect from external dangers or internal risks as well as the health and well-being of the people” (CEN European Committee for Standardization, 2006, p. 14). The business serves different understandings of the terms safety and security, depending on business field and country. However, in regard to the German speaking countries, safety comprises all hazards and threats to personnel and assets, which occur undeliberate. Security addresses all hazards and threats to personnel and assets, which are occurring deliberately. The field of S&S therefore covers lots of hazards, e.g. intrusion and burglary, fire safety, fraud, and many more. Nevertheless, the role and responsibility of FM, dealing with these matters is not yet defined. As S&S itself is a wide field, it requires specialized subject matter expertise knowledge. But S&S matters influence and affect all services and processes in an organisation and therefore needs to be effectively integrated in to the whole environment. This leads to an enterprise risk management (ERM) system. Implementing an ERM to a company’s organization is a complex task in which FM plays a major role. So far FM departments and FM service provider are covering S&S tasks. Unfortunately the necessary skills and expertise to perform these tasks are depending on the company’s core business. Types of services and their extent can differ. Standardisation for S&S tasks regarding FM cannot be made unlike in other subjects of FM. However, a general understanding of S&S is necessary for FM to effectively manage services. An adequate common understanding would also help educational institutions to offer a suitable educational program which covers the issue of S&S. The awareness of individuals in a company is a crucial part of creating and ensuring a safe and secure environment (Loos, 2010). Technical and constructional measures are well developed and are designed to be flexible. Organisational measures, especially the awareness in contrast are hard to plan and assess. “Awareness requires effort, whereby the return on security invest regarding Awareness hardly provable, because of undetermined measurability” (Helisch & Pokoyski, 2009, p. 12, translated by the author). However, if S&S measures are not accepted and their significance is not understood, the measures will not have the required effectiveness (Sack, 2010). Generating and maintaining awareness for S&S can capture a wide scope of tasks as shown by Talaei-Khoei, Ray, Parameshwara, & Lewis, (2012). How FM can cover these tasks is not clear and need to be investigated. This paper therefore analyses the current situation and presents a broad insight to the current state of the art. By outlining the value FM can contribute, the future role of FM in the field of S&S can be defined.

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2 MANAGING RISK, SAFETY AND SECURITY IN THEORY To put the right S&S measures in place, companies more and more have to assess the complex environment they are acting in. Combined with limited resources and saving targets this is becoming an increasingly complex task, especially for the Security Manager. Global factors, economic and strategic targets combined with local laws and regulations need to be considered when assessing the different hazards of terrorism, war, political riots, as well as natural catastrophes, robberies, property damage, work safety, fire and so forth. (Ohder, et al., 1999). Terminology and understanding differs in every field of business. As there can be many varied and different hazards a company has to deal with and it is often not possible to measure how secure or safe a situation is, it is recommended to consolidate all the topics within a risk management system. There are several frameworks showing how to create and implement a risk management system. The Committee of Sponsoring Organizations of the Treadway Commission (2012) called COSO describes the model of an Enterprise Risk Management (ERM). Nevertheless, implementation of risks arising from S&S matters are frequently not treated as often than other risks – in theory and business. To establish a basis for a better integration of these matters the terminology will be summarised in the following section, as there are often many different terminologies used in business. Risk management and its understanding Bernstein (1996) describes risk management as a matter of every individual and the whole society. Wealth and well-being are important factors as well as public safety and any kind of decision making. Risk management thereby is about defining “…what may happen in the future and to choose among alternatives…” (1996, p. 2). Assessing risk has a long tradition but has been transformed over hundreds of years. Bernstein (1996) describes the beginnings of assessing risk in gambling. It thereby always was primarily about fates and odds. “The most addictive forms of gambling seem to be the pure games of chance played at the casinos…” where the focus is always on winning and the opportunities the risk provides. (1996, p. 13). But “risk and time are opposite sides of the same coin” whilst “…time transforms risk, and the nature of risk is shaped by the time horizon…” (1996, p. 15). That counts for the assessed risk itself and for the way of assessing risks. The risk may change over a period of time caused by a changing environment and incidents and over the time the way of understanding risks may also change. Depending on the field of business the understanding of risk and the way of assessing the risk differs in many ways. However, “risk management has become a main part of the organization’s activities and its main aim is to help all other management activities to reach the organization’s aims directly and efficiently.” (Tchankova, 2002, S. 290). Dictionaries and Guidelines often define risk as an effect of uncertainty14, which might be positive or negative. Risk assessment in today’s perception is therefore rather focussing on the negative effect than on the opportunity and chance of risk taking.15 Anyways, “managing risk is at the core of managing any financial organization; it is too important a responsibility for a firm’s managers to delegate” (Coleman, 2011, p. 1). To assess risks, different tools and methods are available. Depending on the company and their risks, appropriate tools can be chosen. To assess risks of financial activities statistic assessment tools and calculations are used, as also shown by the Basel II standard16. Value of confidence levels, based on a broad and extensive data base are helping to assess the risk. 14

Compare: ISO copyright office (2009), Borghesi & Gaudenzi (2013), Bibliographisches Institut GmbH (2013) and others 15 Compare: Bibliographisches Institut GmbH (2013) 16 Source: (Basel Committee on Banking Supervision, 2013)

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Risks reegarding S& &S cannot be assessedd based on a broad an nd extensivee data base. Causal chains oof incidentss are serving g too many scenarios. Therefore, to assess rissks regardin ng S&S, the riskk impact/proobability chaart is used177:

Figure 1: The risk impact/probab bility chart, acccording to Mind Tools Ltd ((2013)

Howeveer, the risk impact/pro obability chhart is just one tool fo or assessingg risk. As Coleman C (2011) describes, “managing g risk is abbout making g the tacticcal and straategic decisions to control those riskss that shoulld be controolled and to o exploit th hose opporttunities thatt can be exploiteed” (2001, p. p 1), which h is also acccording to Bernstein B (1996), whoo connected the risk to fatess and oddss. To justiffy decisionns on S&S matters, this t tool iss not sufficcient. A compreehensive inteegration to a company’’s organisattion is required. Integraated safety and security Caused by a ratherr subjective risk assessm ment, using g the risk im mpact/probabbility chart creating acceptaance for deccisions and d S&S meaasures is a further cru ucial issue. Sack (2010) Loos (2010), Ohder, et al. a (1999), Cisco C System ms Inc., (20 007) and oth hers describbe the imporrtance of b understanding for the whole environmennt. Dependiing on the company, ttheir core business, businesss locations,, and so fortth, every coompany is acting in a different envvironment and faces differennt threats. The T individ dual assessm ment of alll hazards can thereforre turn out to be a complexx and time consuming process. Colemaan (2011) comprises c the t contentss of risk management m t in “Manaage People““(p. 57), “Managge Process” and “M Manage Tecchnology, Infrastructu I ure, and D Data” (p. 61) 6 and “Understand the Business” B (p p. 62). Sennnwald (2011 1) mentions similar skiills and con ntents on being a Security Director. Furthermor F re, it is no ot only abo out the rissk managerr or the departm ment where comprehen nsive knowleedge and un nderstandin ng is requireed. Cisco sttates “… it’s eveery employeee’s responssibility, from m the executive suite to the manu nufacturing floor, to put secuurity first and a keep it top of minnd.” (Cisco Systems In nc., 2007, SS. 1). Everry single person needs to understand u and a accept the necessiity and the properties of the meaasures – technicaally, construuctional and d organizatiional. If peo ople do not understandd the necesssity for a measuree they will not accept it. (Sack, 22010). To make m peoplle understannd seems to o be the most chhallenging taask of today y’s risk mannagement when w dealing g with S&SS matters. Undersstanding, aw wareness and a acceptaance Chen & Medlin (20008) are describing thee human facctor as the weakest w linkk when dealing with informaation securrity matterss, which iss causing many secu urity threatts (2008, p. p 362). Motivatting the diff fferent stakeeholders inteernally and d externally of an organnization is the t most 17

Similarr to threat asseessment of Cotts, Roper, & Payant (2010, p. 260)

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unexplored area in the field of S&S and risk management. However, in the field of safety lots of rules and regulations are used to control a certain work safety for any kind of activities. Still work safety accidents in Switzerland are costing insurance companies and organisations over four billion CHF each year18. Awareness programs and tools are therefore getting more and more important as the lack of understanding and acceptance seems to provide great potential for improvement. Awareness research reveals plenty of standardized tools. Talaei-Khoei, Ray, Parameshwara, & Lewis (2012) provide a deeper insight about a framework for awareness maintenance and presenting the categories “... awareness obtainment, context representation, context analysis, and awareness utilization.” (Talaei-Khoei, Ray, Parameshwara, & Lewis, 2012, S. 202). However this framework cannot be understood as standardization, it is a guideline what can be used for all sorts of awareness programs. Thereby especially to obtain or teach awareness is a challenging issue. For that purpose Chen & Medlin (2008) describe “... the differing effects of cultural dimensions into the learning process.” (2008, p. 360). Cultural dimensions can be another important matter for awareness programs. However, to create a successful and appropriate awareness program, first the decisions need to be reasonable. Courtney, Lovallo, & Clarke (2013) are therefore presenting a chart to diagnose a decision. According to this diagnosis the Delphi Method, as well as the similaritybased forecasting are appropriate to decide on S&S matters (2013, p. 67). Similarity-based forecasting is based in an extensive dataset, which cannot be expected to be available for every scenario. The Delphi Method in contrast is appropriate to also include the risk impact/probability chart. However, the method goes far beyond the chart and involves lots of stakeholders and expertise. Looking at all the different stakeholders involved in a company’s activities, Cisco’s (2007) statement needs to be extended to a broader sense of a relationship network. In the sense of FM, S&S matters do not only comprise employees as internal stakeholders, but also about externals. FM is dealing with different service providers, contractors and within several hierarchical levels in an organization. Johnston, Clark, & Shulver (2012) are describing “a customer, whether a business, a consumer or a user of public services, will not simply be involved in a single supply network but several; ...” (2012, S. 134). Therefore it is not sufficient for the use in FM to implement awareness in every employees mind; it must be implemented in every involved stakeholder’s mind. However, standardization is thereby not a promising approach as Helisch & Pokoyski (2009) are describing. Generating and maintaining awareness for safety and security is defined by its individuality which is needed for an effective development. Appropriate tools and methods for the field of S&S are not yet known. 3 METHODOLOGY The qualitative study follows a comparative research design with a flexible strategy. To achieve the objectives and answer the research question, as described below, it was necessary to compare perspectives, opinions, mind-sets but also experiences of different involved stakeholders. In order to meet these requirements it was necessary to collect the data on a qualitative basis and use a comparative analysis afterwards. To gather all the data the design includes multiple qualitative data collection techniques. The chosen methods and tools were enabling the researcher to adapt appropriately to participants’ mind-sets and understandings and to grasp the field of risk management and S&S out of different perspectives. Research questions To enter the business of S&S from a FM perspective, different questions could be raised. However, for a first step it was seen as important to investigate what untapped potential the 18

http://www.suva.ch/startseite-suva/die-suva-suva/unfallstatistik-uvg-suva.htm

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FM serves. As mentioned above, FM is already covering different S&S tasks and services. However, it is not known, how the FM should be involved to a company’s organisation, when dealing with S&S matters. This leads to the research question: “How could FM contribute to an organization’s effectiveness dealing with Safety & Security matters?” Sampling As Wilson (2010) states, “One of the potential problems with a comparative design is ensuring that the variable in your study is interpreted the same way by your chosen groups. This can be particularly problematic when comparing groups across distinctly different cultures.” (2010, p. 113). This problem was seen serious for this study, especially as it was intended to involve as much perspectives and business backgrounds as possible. To counteract this uncertainty, it was essential that all participants have a certain level of expertise and experiences to be able to be part of the interviews and discussions. Expert interviews The expert interviews were conducted to get a better understanding of the field of business, the different perspectives and the needs of the different stakeholders. To be selected as an expert in the field a practical experience over several years in the particular field of business was required. Relevant business fields were defined as: • FM in an organisation with a great demand for S&S, • S&S consultant with a strong connection to the field of FM based in experiences, • S&S consultant in the private business with a holistic overview • S&S consultant in the role of a public authority with a holistic overview By involving private business and public authorities, as well as exploring the perspectives of service providers and consultants, the whole field of S&S could be comprised. In-depth interviews For the main interviews the participants were selected purposively as well. The sample population had to comprise the broad field of the determined groups of actors of service providers, consultants and users. For the sample the groups where defined as follows: Service providers are the group offering concrete S&S services scoping a certain period of time. The services can comprise personnel services but also technical, constructional and conceptual design. Consultants offer their services in a broader context and are needed to a certain point in time. The consultative service comprises as well conceptual advice, but also auditing, QM, and so forth. Thereby also fraud, spying and investigative topics are covered. Users are company internal personnel dealing with S&S matters and their effectives in the company’s organization and environment. Users in that context are not part of the company’s core business. In each group three participants with a consolidated knowledge in their particular field of business and relating the group specific S&S matters were interviewed. To ensure applicability to FM in generally the participants were chosen from a wide range of businesses based in Switzerland and Germany. Thereby organizations in a national and global context were considered. Group discussions As the last part of data collection three group discussions with operational personnel of companies’ core business (end-users) were conducted. Therefore three groups of interest were defined:   

Companies which are highly S&S oriented and now public accessibility Companies with a high S&S orientation and public accessibility Companies with an average need for S&S measures

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To ensure applicability the group discussions were conducted in Switzerland and Germany with three to five employees, acting in the company’s core business with a consolidated knowledge about the company’s activities and their field of business. Participants in a group were thereby out of the same or a similar business area, with comparable practical experiences and responsibilities. Data collection All interviews were semi-structured according to Robson (2011). To further adapt to the interviewee’s field of business, open-ended but straight forward questions were used. All interviews were seen as “extensions of ordinary conversations” (Rubin & Rubin, 2012, p. 12) and the capability to adapt to changing realities was a major requirement for the interviewer and all participants. Questions contained in the interview guide were validated by experts of the authors’ organization. For all interviews the same interview guideline was used. The questions for the group discussion were as well the same for all of the three. All interviews and group discussions were conducted face-to-face. Therefore also not-spoken answers and the atmosphere were included to the whole study. For interviewing and discussions participants were met at different places, their offices, and the author’s office or at a neutral place. Data analysis The data analysis is following an inductive approach. Concrete decision on how to analyse the data was made during data collection and follows the guidance of Saunders, Lewis, & Thornhill (2009). To divide the data into categories for thematic coding the process of Robson (2011) was used. To analyse the interviews and group discussions the first expert interview was transcribed completely. According to Robson (2011), the interviewee’s logic and the literature a matrix was created and completed with the residual interviews. For the main interview series further key aspects were added and the interviews were partially transcribed. For categorising the data the matrices were grouped to codes and themes according to Robson (2011). The statements, experiences and perspectives were directly or paraphrased included to the matrix. The completed matrix was generalized afterwards to ensure confidentiality. The final step of comparing insights and opinions the transformed data of the matrices were used and analysed to the results, described in the following chapter. 4 RESULTS AND DISCUSSION To answer the research question the insights of both interview series and the group discussions need to be compared and discussed. Analysing the interview data was challenging in the sense that the estimation of S&S matters and their importance was particularly completely different. Discussing these results depends on perspectives, knowledge and experiences. When dealing with S&S matters it is also discussing about being safe. Emotional factors based on certain experiences can influence the perspective of necessity and effectiveness of measures. However, FM need to create an environment that makes employees, customers and the public feels well and safe according to EN 15221-1 (CEN European Committee for Standardization, 2006). FM is not that much known in the field of S&S and is still seen as a house keeper or building cleaner. During the discussions S&S matters were always located in the scope of FM. This insight leads to the main result of this study: FM has a central responsibility when dealing with S&S matters. In order to create an environment which supports the company’s core business in the best way FM has to meet several requirements. Factual roles of FM differ again strongly in every interview and discussion. Currently FM is taking over different roles and responsibilities, depending on the company’s strategy. But according to corporate and social responsibility in a company, FM

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was always seen in a generalist function with a comprehensive knowledge qualified to function as a moderator, coordinator and interpreter between all involved stakeholders. Positioned in that functions FM obviously has great potential to improve the overall service quality in S&S. In single examples FM had a much greater responsibility and was carrying out lots of services. However, functioning as an S&S service provider wasn’t seen as a competence of FM in general, even as FM service provider often are offering S&S services. This result also reflects the contents of risk management according to Coleman (2011) and Sennwald (2011). However, as FM interfaces with almost all people, departments and processes, the greatest potential of improving service quality is in using FM’s comprehensive knowledge and scope. Positioned as a moderator, coordinator and interpreter and functioning as a bridge for the different stakeholders, as seen in Fehler! Verweisquelle konnte nicht gefunden werden., FM can directly influence the effectiveness. By mediating communication and all expectations the whole process of conceptualising and implementing S&S measures can be optimized. Especially on the level of organizational measures FM is in a great position to create and maintain awareness and acceptance for the overall situation and all measures, which is mandatory to keep up functionality of all measures. Adapting, organising and conducting the awareness program according to Loos (2010) and Talaei-Khoei, Ray, Parameshwara, & Lewis (2012), the FM serves great untapped potential. Therefore the core value FM has in S&S is the extensive knowledge about the company itself, the setting, all needs and wants, as well as all interdependencies. Using this background FM is able to reduce the overall effort by moderating perspectives and coordinating stakeholders. Technical and constructional measures are available for any situation, the greatest potential for improvement lies in organizational measures as people will not accept measures unless they understand the value of the measure (Sack, 2010). Also knowledge and expertise were mentioned as an important factor for effectiveness when dealing with S&S matters. Particularly S&S service providers, designers, but also consultants set a certain level of knowledge and expertise as a mandatory factor for effective collaboration. Coherences of all different processes and S&S matters can get vast complex, as it is also described by Ohder, et al. (1999). Comprehensive knowledge about the company, their processes and organization, as well as about S&S measures and tools are simplifying the whole venture measurably in cost, time and effort. If the knowledge and expertise is not there, conceptualization and implementation is getting complicated. Furthermore, a lack of knowledge and expertise also hinders the maintenance of the implemented measures. Thus ensuring a certain level of service quality becomes difficult. The matter of outsourcing S&S services and FM was another important factor mentioned in all interviews. Individual beliefs were again different what follows economic as well as subjective reasoning. Service providers are rather focusing on outsourcing and enquire experts, whereby consultants and customers are more split. Personal experiences and quality expectations lead to different statements. But there seems to be an agreement on a certain saving potential, outsourcing might have. Measures have to be economically efficient but inappropriate savings can have serious consequences. Over all, the focus needs to be on achieving the best solution for a company’s matters, which reflects the overall FM objective according to EN 15221-1 (CEN European Committee for Standardization, 2006). 5 CONCLUSION S&S matters are a serious topic of today’s FM, as it has become for every organisation. Pursuing FM’s objectives is increasingly influenced by these matters – also in Switzerland. Nevertheless, in practice the understanding of FM’s role and responsibility in that sense

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differs. There is no distinct agreement in the field of FM companies, educational institutions, and S&S business or on the customer side. However, due to the potential high complexity of S&S matters, the core value FM can deliver in terms of these matters is the management. Single services may be allocated, conceptualized and controlled by the FM on a service level but there is no one-fits-all solution. Certain services and tasks can be easily carried out by the FM in the one company setting, but maybe not in another. It is mandatory to assess every situation individually and decide what needs to be done in each case. Therefore a rather general and broad field of knowledge is required to adapt to the particular situation appropriately. The part of managing is already a serious task. In terms of a risk management or S&S management companies are already managing all risks, hazards and measures. In doing so S&S matters are mostly handled separately and are not integrated to a company’s organization and culture. However, to achieve a safe and secure environment every single person has to support the all measures. It is therefore also important to involve everybody when conceptualizing any kind of measures, as measures can influence processes, habits and well-being which are directly linked to performance. Getting everybody involved sounds complex and costly. And indeed the initial effort is assessed as extensive. Nevertheless, involving people right from the beginning is the first step of creating awareness. It is also not necessary to involve everybody directly with the process of conceptualizing the measures. But asking different departments for their opinion and suggestions, at least the ones which are affected, will help to avoid unexpected interdependencies, improve the direct effectiveness, raise awareness and creates acceptance. Getting all the individual stakeholders together, internally and externally, is a fundamental task of FM. Stakeholders can be as different as different locations and their environment. However, those stakeholders might be necessary for the company’s core business and all processes to function as an economical enterprise. Therefore coordination between the different stakeholders in that network of relationships is mandatory to raise the understanding for objectives, strategies and values. Also S&S terminology or technical terms of other businesses can cause misunderstandings. Communication with the stakeholders should be coordinated and the different perspectives moderated so that the whole process of achieving S&S can be optimized in cost and effectiveness by FM. The added value of FM can therefore be summarized as     

Improve effectiveness of S&S measures Improve effectiveness of communication and collaboration Decrease cost Create and maintain awareness Align the corporate culture to the strategic objectives and all physical and regulatory factors

Finally, S&S matters are important for FM. Depending on the individual situation different measures are required, which may not be easy to assess. But a proper review of all S&S measures is important for efficiency and effectiveness as well as the acceptance by all the people influenced and affected by these measures. In this network of relationships FM has the responsibility to moderate and coordinate in order to achieve the company’s objectives and support the company’s core business in the best way. However, depending on the knowledge and individuals expertise FM can also carry out different services in the field of S&S, but a general statement about the required background and expertise is not possible cause of the variety of situations. The focus has to be on integrating S&S to a company’s effective and comprehensive risk management.

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ACKNOWLEDGEMENTS The Author wants to thank all participants of interviews and group discussions as well as all companies for sharing information, knowledge and expertise. Very special thanks go to the Institute for Facility Management and the Zurich University of Applied Sciences for supporting the idea behind that research. FIGURES Figure 1: The risk impact/probability chart, according to Mind Tools Ltd (2013) REFERENCES Basel Committee on Banking Supervision. (June 2013). Publications: Bank for International Settlements. Von Bank for International Settlements: http://www.bis.org/bcbs/implementation/l2_ch.pdf abgerufen Bernstein, P. L. (1996). Against the gods: The remarkable story of risk. New York: John Wiley & Sons, Inc. Bibliographisches Institut GmbH. (2013). Duden online. Abgerufen am 27. 06 2013 von Duden: http://www.duden.de/rechtschreibung/Risiko Borghesi, A., & Gaudenzi, B. (2013). Risk Management: How to Assess, Transfer and Communicate Critical Risks. Verona: Springer-Verlag Italia. CEN European Committee for Standardization. (2006). Facility Managent - 15221 Part 1: Terms and Definitions. Brussels: CEN European Committee for Standardization. Chen, C. C., & Medlin, B. D. (2008). A cross-cultural investigation of situational information security awareness programs. Information Management & Computer Security, 4(16), pp. 360-376. Cisco Systems Inc. (2007). Cisco Systems Inc. Abgerufen am 19. 03 2013 von Cisco Security Awareness: Creating an effective security culture through awareness: http://www.cisco.com/web/about/security/cspo/docs/SecurityAwarenessProgram.pdf Coleman, T. S. (2011, July). Research Foundation Publications CFA Institute. Retrieved from A Practical Guide to Risk Management: http://www.cfapubs.org/toc/rf/2011/2011/3 COSO Committee of Sponsoring Organizations of the Treadway Commission. (2012). COSO - Enterprise Risk Management - Integrated Framework. Abgerufen am 2. 7 2013 von COSO Committee of Sponsoring Organizations of the Treadway Commission: http://www.coso.org/publications/erm/coso_erm_executivesummary.pdf Cotts, D. G., Roper, K. O., & Payant, R. P. (2010). The Facility Management Handbook. New York: American Management Association AMA. Courtney, H., Lovallo, D., & Clarke, C. (2013, November). Deciding How to Decide. Harvard Business Review, 91(12), pp. 63-70. Cowell, F. A., & Cruces, G. (2004). Perceptions of Inequality and Risk. Research on Economic Inequality(12), S. 97-133. Erben, R., & Romeike, F. (2006). Alleine auf stürmischer See: Risikomanagement für Einsteiger. Weinheim: WILEY-VCH Verlag GmbH & Co. KGaA. Helisch, M., & Pokoyski, D. (2009). Security Awareness: Neue Wege zur MitarbeiterSensibilisierung. Wiesbaden: Vieweg+Teubner Verlag. ISO copyright office. (2009). ISO 31000: Risk management - Principles and guidelines. Geneva: ISO copyright office. Johnston, R., Clark, G., & Shulver, M. (2012). Service Operations Management: Improving Service Delivery (Fourth edition Ausg.). Essex: Pearson Education Limited. Loos, A. (2010). Awareness im Sicherheitsbereich. Stuttgart: Steinbeis-Hochschule Berlin.

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Mind Tools Ltd. (2013). Risk Impact/Probability Chart: Mind Tools. Von Mind Tools Essential skills for an excellent career: http://www.mindtools.com/pages/article/newPPM_78.htm abgerufen Ohder, C. (., Beisel, W. G., Feuerlein, H., Hirschmann, H.-P., Kuhlmey, M., Pfeiffer, W., . . . Washausen, J. (1999). Unternehmensschutz: Praxishandbuch. Stuttgart: Richard Boorberg Verlag GmbH & Co KG. Robson, C. (2011). Real World Research (Vol. III). West Sussex: John Wiley & Sons Ltd. Rubin, H. J., & Rubin, I. S. (2012). Qualitative Interviewing: The Art of Hearing Data. Thousand Oaks: SAGE Publication, Inc. Sack, D. K. (2010). Corporate Security - Standort-Security. Stuttgart: Steinbeis-Hochschule Berlin. Saunders, M., Lewis, P., & Thornhill, A. (2009). Research Methods for Businiess Students (5. ed.). Essex: Pearson Education Limited. Sennwald, C. A. (2011). Effective Security Management (Bd. fifth edition). Burlington: Elsevier Inc. Talaei-Khoei, A., Ray, P., Parameshwara, N., & Lewis, L. (2012). A framework for awareness maintanence. Journal of Network and Computer Applications(35), S. 199210. Tchankova, L. (3. November 2002). Risk identification - basic stage in risk management. Environmental Management and Health(13), S. 290-297. Wilson, J. (2010). Essentials Of Business Research: A Guide To Doing Your Research Project. London: SAGE Publications Ltd.

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Facilities Management Approach For Achieving Sustainability in Commercial Buildings in Nigeria. Olayinka Oluseyi Olaniyi University of Central Lancashire, Preston, UK [email protected] +2347031180425 Andrew Smith University of Central Lancashire, Preston, UK [email protected] Champika Liyanage University of Central Lancashire, Preston, UK [email protected] Akintola Akintoye University of Central Lancashire, Preston, UK [email protected] Abstract The purpose of this research is to determine the extent of sustainable facilities management (FM) practice in the management of commercial buildings in Nigeria and identify barriers to it, in order to develop a solution model that will proffer ways of overcoming these barriers and ultimately determine sustainable methods by which facility managers in Nigeria can effectively manage commercial properties. This study is a work in progress and it presents a theoretical review on the extent of sustainable FM in developed countries, especially the United Kingdom (UK), and comparing it with the development of sustainable FM in developing countries and Nigeria in particular. Nigeria has a history of unsustainable building practices, mismanagement of buildings and poor maintenance culture with no consideration for its impact on the environment. Findings reveal the three main barriers to sustainable FM practice in corporate organisations in Nigeria, as lack of training and tools, lack of relevant laws and regulation, and lack of knowledge and awareness. Nevertheless, there remains the urgent need to investigate barriers of sustainable FM practice in the management of commercial buildings in Nigeria. Keywords: Sustainability, Sustainable facilities management, Nigeria. 1. Introduction Sustainable development has been defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED 1987). According to Brandon and Lombardi, (2005) sustainability is about leaving the environment in at least the same state by a generation and leaving it in a better state for newer generations to come.

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The race towards sustainability has shown the role of buildings as an agent of decay on the natural environment, bringing fresh challenges for building engineers to devise new ways of reducing the use of natural resources, making use of renewable materials and minimising waste. This has created the need for sustainable FM, which has been seen to be vital in the longest phase of the life-cycle of a building, where severe impact on the environment occurs (Alnaser et al, 2008; Mora et al, 2011). Buildings are the main physical assets of any nation; they are created for providing shelter and enhancing people’s quality of life (Lam et al, 2010). If these buildings are not properly planned and maintained, they will become liabilities (Wood 2006). In the UK, from the year 2002, 50% of all annual construction activities were exclusively for building maintenance (Lam et al, 2010). However, this is not the case in Nigeria, where there is poor maintenance culture and values (Iyagba, 2005). Commercial buildings in Nigeria have a record of poor performance operations, poor maintenance and mismanagement (Abigo et al, 2012). In the past two decades, the emphasis has been on the development of new properties, with little attention paid to the maintenance of the existing stock and the future maintenance needs of the proposed ones (Odediran et al, 2012). These problems form the basis of this study. This paper argues that an integration of sustainable FM practice is required to promote the development and preservation of sustainable buildings with suitable environmental initiatives and practices within Nigeria. 2. Research Methodology This study reviews existing literature on how developed countries have benefited from the development of sustainable FM in the management of buildings in order to identify ways by which Nigeria can adopt sustainable practices in the management of commercial buildings to achieve sustainability. The study also reviews existing literature on sustainable FM in Nigeria, so as to determine the extent of sustainable FM in Nigeria. 3. Sustainable FM Practice in Developed Countries Facilities management in the United States has been established for over 30 years (Wiggins 2010) and the International Facility Management Association (IFMA) is the world's largest and most widely recognized international association for facilities management professionals, supporting more than 23,000 members in 85 countries (IFMA n.d.). The FM market spread to Europe with the establishment of Euro FM in 1990 and the British Institute of Facilities Management (BIFM) in 1993 (Shah, 2007). In the UK, FM is one of the fastest growing professions with a market worth of £106.3 billion and an anticipated annual growth of between 2% and 3% up to the year 2012 (Elmualim et al, 2008; Shah 2007). Developed countries, particularly in Europe, have applied research focus to sustainable FM, although this is arguably still in its infancy. In Finland, for example, a case study (Aaltonen et al, 2013) showed that relatively light changes to FM service processes achieved extensive environmental benefits. In the case study building, they found that FM had direct or indirect (operational) influence on 82% of the green building certification (LEED) points achieved by the building. However, even in developed countries, it seems that action towards sustainable facilities management is, at times, minimal. According to Nielsen (2012), the term sustainable FM is unknown in Denmark but there may be greater awareness in the UK and other countries.

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According to Elmualim et al, (2012), facilities managers have a great role to play in advancing the sustainability agenda in the built environment through the practice of sustainable FM. In the UK, the concept of sustainable FM has developed and grown in parallel with the all-embracing theory of sustainable development and the growing appreciation for climate change (Shah, 2007). According to the study carried out by Elmualim et al, (2008), facilities managers are now aligning their practice with the sustainability agenda along its three strands, economic, environmental and social. However, they are constrained by time, lack of knowledge of the basic information necessary to implement sustainability policies and lack of senior management commitment to the sustainability agenda. According to Elmualim (2012) the main driver for sustainable FM in the UK, is the formulation of legislation. These pieces of legislation, according to KPMG, (2008) make organisations conform to stipulated regulations and, in the process, drive the compliance of sustainable practices by facilities managers. These laws incorporate sustainable policies that involve waste management, recycling, energy management, carbon footprint and health and safety (Shah, 2007). In other developed countries, such as Japan, New Zealand, Hong Kong, Singapore and South Africa, FM has been successfully developed and established. It is recognised in these countries as an activity that can achieve more effective management of buildings, its services and associated workforce, in support of the strategic objectives of an organisation (Kamaruzzaman and Zawawi, 2010). According to Shah (2007) FM in Australia is one of the fast growing industries with an annual turnover of more than AUD$60 billion. 4. Sustainable FM in Nigeria In developing countries such as Malaysia, the development of FM started in the second half of the 1990s. Now Malaysia has put great focus and emphasis on the development of FM particularly in the public sector (Kamaruzzaman and Zawawi, 2010). In Uganda, a study was carried out in order to project the growth of FM, which concluded that the FM industry in Uganda, though not officially recognised, exists in a capacity to grow steadily in line with the economy (Natukunda et al, 2013). Sustainability in terms of environmental impact of various industries, especially the oil and petrochemical industry in Nigeria, has been well documented, (Odeyemi and Ogunseitan, 1985; Olokesusi, 1992; Osuji et al, 2006; Agbalagba et al, 2012). However, sustainability in FM, in the country is yet to be embraced, as its growth has been slow, awareness is low and also there is little literature on the subject (Adewunmi et al, 2012). Literature that is available tends to focus on environmental issues in sustainability (Kadiri, 2006; Adewunmi et al, 2012), with little focus on the economic and social aspects. Existing literature includes Abigo et al, (2012) and Adewunmi et al, (2012), on sustainable FM in the management of public buildings in Nigeria and on the development of a sustainable approach to corporate FM in Nigeria. Adewunmi et al, (2012) emphasised environmental sustainability in their study involving the use of questionnaires and interviews of FM professionals, regarding key themes including environmental awareness, performance of ecologically sustainable development activities and strategic management. Their results showed that FM only minimally addresses sustainability in Nigeria. Abigo et al (2012) undertook a comparative study of sustainable FM in the UK and Nigeria and found that the top three barriers to sustainable practice in Nigeria are lack of regulations

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or legislation; lack of sustainable policies and lack of awareness. They proposed a framework for embedding sustainable FM in public buildings in Nigeria, based on six phases: (1) public awareness; (2) training and education; (3) creating legislation; (4) public organisations developing written sustainability policies; (5) incorporating sustainable practices in the management of public buildings and; (6) enforcing regulations/legislation. A study was also carried out by Ikediashi et al, (2012) on assessing the level of commitment and barriers to sustainable FM practice by facilities managers within corporate organisations in Nigeria. This study revealed the three main barriers to sustainable FM practice. These are lack of training and tools, lack of relevant laws and regulation, and lack of knowledge and awareness. The study also identified the commitment of senior management personnel, as a major driver to the course of sustainable FM within organisations in Nigeria. Nevertheless, there remains the urgent need to investigate barriers of sustainable FM practice in the management of commercial buildings in Nigeria. Commercial buildings, being the economic powerhouse of the nation, serving the whole of the country in respect of imports and locally manufactured goods; contributing more than 70% of the national economic output (Research Unit, 2011). 5. Conclusion Although barriers to sustainable FM within corporate organisations have been identified, there remains the need to identify barriers to sustainable FM practice in the management of commercial buildings. The extent of sustainable FM in commercial buildings in Nigeria has not yet been determined. However, the findings so far, identify commitment of senior management personnel, as a major driver to the course of sustainable FM. This study is a work in progress and therefore, continuous effort will be made to determine the extent of sustainable practices in the management of commercial buildings and identify barriers to sustainable FM in commercial buildings in Nigeria. This will be achieved by a pilot study, followed by questionnaire survey of qualified professionals in the various institutes in Nigerian, as well as stakeholders and building users. References Aaltonen, A., Määttänen, E., Kyrö, R., Sarasoja, A. (2013), “Facilities management driving green building certification: a case from Finland”, Facilities, 31, 7/8, pp. 328-342. Abigo. A., Madgwick. D., Gidado. K. and Okonji. S. (2012). Embedding Sustainable Facilities Management in the Management of Public Buildings in Nigeria. EPPM 2012, University of Brighton, Brighton, UK, 10-11 September 2012. Viewed http://www.ppml.url.tw/EPPM/conferences/2012/downioad/SESSON5_B/35%20E139.pdf [Accessed 26 January 2013]. Adewunmi. Y., Omirin. M., and Koleoso. H. (2012). "Developing a sustainable approach to corporate FM in Nigeria". Facilities, 30, 9/10, 350 – 373. Agbalagba. E.O, Avwiri. G.O. and Ononugbo. C.P. (2012). Activity concentration and radiological impact assessment of 226 Ra, 228 Ra and 40 K in drinking waters from (OML) 30, 58 and 61 oil fields and host communities in Niger Delta region of Nigeria Journal of Environmental Radioactivity, 1- 4. Alnaser. N.W., R. Flanagan, Alnaser W.E. (2008). ‘Potential of making—over to sustainable buildings in the Kingdom of Bahrain’. Energy and Buildings, 40, 1304–1323. Brandon, P. and Lombardi, P. (2005). Evaluating Sustainable Development. Blackwell Science, UK.

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Elmualim. A., Valle. R. and Kwawu. W. (2012). Discerning policy and drivers for sustainable facilities management practice. Journal of Sustainable Built Environment, 116–25. Elmualim, A.A., Czwakiel, A., Valle, C.R., Ludlow, G. and Shah, S. (2008). Barriers for implementing sustainable facilities management. In: World sustainable building conference, 21–25, Melbourne, Australia. IFMA (n.d.), “International Facility Management Association: Definition of Facility Management”, Viewed from: http://www.ifma.org/about/aboutifma/history#sthash.UAeyxW1Y.dpuf. Accessed on 27/10/2013. Ikediashi, D. I., Ogunlana, S. O., Oladokun, M. G. and Adewuyi, T. (2012). Assessing the level of commitment and barriers to sustainable facilities management practice: A case of Nigeria. Original Research Article. International Journal of Sustainable Built Environment, 1, 2, 167-176. Iyagba, R. O. A. (2005). The Menace of Sick Buildings: A Challenge to all for its Prevention and Treatment. Nigeria: University of Lagos Press. Kadiri, K.O. (2006), “Planning sustainable and livable cities in Nigeria”, Research Journal of Social Sciences, 1, 1, pp. 40-50. Kamaruzzaman. S. N. and Zawawi. E. A. (2010). Development of facilities management in Malaysia. Journal of Facilities Management, 8, 1, 75-81. KPMG, (2008). KPMG International Survey of Corporate Responsibility Reporting 2008, Amstelveen. Lam, E.W.M, Chan, A.P.C, and Chan, D.W.M. (2010). “Benchmarking success of building maintenance projects”. Facilities, 28, No. 5/6, pp. 290-305. Mora. R., Bitsuamlak. G. and Horvat. M. (2011). Integrated life-cycle design of building enclosures. Building and Environment, 46, 1469-1479. Natukunda, C. M., Pitt, M. and Nabil, A. (2013). Understanding the Outsourcing of Facilities Management Services in Uganda. Journal of Corporate Real Estate, 15, 2, 150-158. Nielsen, S.B. (2012), “Claims of sustainable FM: Exploring current practices”, Jensen, P.A., Nielsen, S.B. (Eds.), Facilities management research in the Nordic countries: Past, present and future, Polyteknisk Forlag, Lyngby, pp. 121-132. Odediran. S., Opatunji. O. and Eghenure. F. (2012). Maintenance of Residential Buildings: Users’ Practices in Nigeria. Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 3, 3, 261-265. Odeyemi. O and Ogunseitan. A. O. (1985). Petroleum Industry and its Pollution Potential in Nigeria, Oil & Petrochemical Pollution, 2, 223-229. Olokesusi. F. (1992). Environmental Impact Assessment in Nigeria; Current Situation and Directions for the Future. Journal of Environmental Management, 35, 163-171. Osuji. L.C., Onojake. C.M. (2006).Field reconnaissance and estimation of petroleum hydrocarbon and heavy metal contents of soils affected by the Ebocha-8 oil spillage in Niger Delta, Nigeria. Journal of Environmental Management 79, 133–139. Shah. S. (2007). Sustainable Practice for the Facilities Manager. Blackwell Publishing, Oxford UK. Research Unit (2011) Alitheia Capital http://www.thealitheia.com/newsletters/Alitheia%20Capital%20REInsight%20%20October%202011.pdf. Accessed on 22/2/13. WCED (1987). “Report of the World Commission on Environment and Development: Our Common Future”, Document A/42/427, WCED. Available at: http://www.undocuments.net/wced-ocf.htm (Accessed 24 February 2014). Wiggins, J. M. (2010). Facilities Manager’s Desk Reference. Wiley-Blackwell, West Sussex, Wood (2006). The role of existing buildings in the sustainability agenda. Facilities, 24(1–2): 61–67.

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Facilities Planning Promoting Efficient Space Use at Hospital Buildings Emma Zijlstra Hanze University of Applied Sciences Groningen, Groningen, The Netherlands [email protected] Telephone +31 (0) 50 595 2672 Mark P. Mobach Hanze University of Applied Sciences Groningen, Groningen, The Netherlands The Hague University of Applied Sciences, The Hague, The Netherlands University of Groningen, Groningen, The Netherlands Wageningen University, Wageningen, The Netherlands [email protected] Cees P. van der Schans Hanze University of Applied Sciences, Groningen, The Netherlands University Medical Center Groningen, Department of Rehabilitation Medicine, Groningen, The Netherlands [email protected] Mariët Hagedoorn University of Groningen, University Medical Center Groningen, Department of Health Psychology, Groningen, The Netherlands [email protected] ABSTRACT Purpose – Due to an increasing demand for care delivery and emerging new health care technologies facility managers are frequently confronted with changing spatial demands of end-users. The purpose of this study is to explore if facilities planning at a diagnostic outpatient clinic can increase the level of space utilization and the speed of care delivery. Design / methodology/ approach – The current study was made in the context of discovery and exemplification. The influence of facilities planning, by means of resource allocation and patient categorization, on the actual use of facilities was investigated. A comparison was made between the planned and the actual space utilization level of a scanning room. In a time study the actual utilization times of 55 patient examinations were compared with the planned times. Moreover, the nature of activities was registered by a multidimensional work sampling method. Findings – This study showed that the actual space utilization level deviated from the planned utilization level. In this case the actual fluorodeoxyglucose (FDG) whole-body examinations on a positron emission tomography-computed tomography (PET-CT) scanner took less time than planned and, in addition, the weight of patients significantly influenced the actual examination times. Patients with a heavy body weight took more time than patients with low weight. Moreover, this study showed that employees only spend 47% of their activities on care-related activities. Practical implications – This current study has shown that facility management research (FMR) allows facility managers to improve their insight in the efficiency of space use, and, in addition, to refine the spatial planning systems in hospital settings. Firstly, in facilities planning the planned space utilization should be compared with the actual space utilization periodically. Secondly, information on the properties of end-users, in this case the weight of 366


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the scanned patients, allows for better planning. Thirdly, the nature of activities should be taken into account to determine the optimal organisation of care delivery. With FMR the gap between planned and actual space use can be reduced, information on the properties of end users allows for better planning, and a reduction of non-care-related activities better meets the needs for increasing demand for care delivery; all promoting efficient space use at hospital buildings. Originality / value – The results of this study showed that it can be cost-effective to compare facilities planning with the actual spatial use, include end-user properties, and collect information about the nature of activities before reconstructing a building.

Keywords Cost Reduction, Diagnostic Imaging, Facilities Planning, Reconstruction, Space Utilization 1 INTRODUCTION The central function of a hospital is to provide patient care (Vissers and Beech, 2005). Nowadays, Dutch hospitals have the challenge to decrease costs owing to health care cuts while the quality of patient care has to improve. Delivering high quality care in a consistent and efficient manner can be accomplished by operational improvements (McLaughlin and Hays, 2008). Due to an increasing demand for care delivery and emerging new health care technologies facility managers are frequently confronted with changing spatial demands of end-users. Facility managers of Dutch hospitals invested more than 1.6 billion euros in buildings and ground in 2010 (Heumen and Brouwers, 2011). According to Vissers and Beech (2005) services have to be modernized in such a way that hospitals can make more intensive and efficient use of existing health care resources. This paper argues that these improvements can also be realised with well-considered space allocation and optimization in the organisation of activities. According to Vermeulen et al. (2009) diagnostic resources in healthcare, such as scanners, are central to the clinical pathways of patients. Therefore long waiting times to access diagnostic resources are directly felt as bottlenecks for healthcare processes. Typically, simply increasing capacity results in lower waiting costs but also in higher service and space costs. Even more important, when an examination is delayed and patients have to wait, patients can face substantial risks of complications or even death (Wang, 2004). This particularly applies for patients who undergo a positron emission tomography (PET) scan. According to Boellaard et al. (2010) the most common PET examinations are for detecting, staging, re-staging as well as for assessments of therapy response of oncology patients. Because in the Netherlands the cause of death by cancer is relatively still growing, it seems evident that waiting times for patients need to be reduced to a minimum (Hoogenboezem and Garssen, 2009). Consequently, it was pre-supposed here that efficient space planning for scanners is vital for speed of care delivery and the health and well-being of patients. The management of the diagnostic outpatient clinic reported increased access times for examinations above the pre-defined requirement of 5 working days and even considered to purchase a new camera (expectedly leading to a reconstruction). In this study it is explored if facilities planning can increase the level of space utilization and the speed of care delivery at the scan room (location 5, figure 1) of the diagnostic outpatient clinic. This outpatient clinic performs scans on a PET camera, so-called the mCT 64 slices (figure 1). At this outpatient clinic patients arrived at the reception desk where they were registered (1). After registering, the patient waited in the waiting area (2) until they were picked up by diagnostic staff. Diagnostic staff administered radioactive substance to the patients in one of the two preparation rooms (3) and brought the patient to the relaxation room where the radioactive substance can localize to specific organs or cellular receptors of the patient (4). When this

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exposurre time elappsed, the paatient was ppicked up from f the rellaxation rooom and enttered the scanninng room (5)). The patien nt took placce on the camera and diagnostic w workers staarted the scan. W When the scaan was finisshed, the pattient left thee scanning room r and thhe outpatien nt clinic. The maanagement of the diaagnostic ouutpatient clinic reporteed congesttion; camerra space utilizatiion was believed to be the cause oof a lack off space capaacity. Thereefore this stu udy will exploree the space planning p off the cameraa and the acctivities surrrounding thhe camera (location ( 5, figure 1). Fig gure 3 Facilitty layout of diagnostic d clinic

2 3 1

1 = Reeception desk 2 = Waaiting area 3 = Preeparation

5

3

4

2 FACILITIIES PLANN NING Tompkiins, White,, Bozer, an nd Tanchooco (2010, p. 6) defi fined that ‘‘facilities planning p determiines how an a activity’s tangible fixed assets best sup pport achievving the activity’s a objectivve’. Accordding to Roper, Kim andd Lee (2009) a ‘strateg gic facility planning id dentifies the typee, quantity and location ns of spacees needed by y the organization andd contains tw wo main componnents – thee first being g an in-deppth analysiss of existin ng facilitiess, and the other o an achievaable and afffordable plaan to meet tthe organization’s need ds’ (p. 3). T The main objective o for the outpatient clinic c of thiis study is tto examine patients wiithin 5 work rking days from f the momennt the application for the scan is knnown. According to Mango and Shapiro (2001)) the flow of o patients th hrough a hoospital is lim mited by the weaakest link in i the heallth care proocess within n the hospital. For exxample, if too few workerss or too few w cameras are a availablee at the outp patient cliniic, patients hhave to waiit longer before they can be b examineed at the cclinic. Thiss problem will turn iinto delay for the consecuutive patiennts. Therefo ore, developping an effficient process is impoortant. An efficient processs in the heaalthcare indu ustry contexxt means a process thaat reduces ccosts and im mproves quality (Cayirli annd Veral, 2003). 2 For tthat reason n it is impo ortant to ideentify the potential p bottleneecks and allleviate theem by balaancing the process, p sm moothing deemand and control capacityy (Mango and Shapirro, 2001). M Mango and d Shapiro (2001) conttend that when w the problem m becomes clear, c it is usually u posssible to elim minate these problems bby applying g a better planninng. Accordinng to Cayirlli and Veraal (2003) a well-design w ned planningg creates the ability to increease the utilization of expensive employees and equipm ment-based medical reesources. Facilityy managers are often reesponsible ffor space alllocation wh hich providdes a framew work for space pplanning (W Wiggins, 201 10). Conseqquently it iss important to considerr the issue of o space utilizatiion from thee facility maanagement pperspectivee. Cayirli and Veral (2003) ( statee that in a hoospital the reconciliatio r on of demannd and supp ply leads to betteer utilized resources (personnel ( and equipm ment) and minimized waiting times for 368


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internal customers (referring specialists) and external customers (patients). According to Green, Savin, and Wang (2006) medical imaging facilities are accessed by a wide range of patients, both inside and outside the hospital. On the supply side an operation has resources. Resources of a service are the facilitating goods, employee labour and capital (Fitzsimmons and Fitzsimmons, 2006). Resources have capacity, which means that a resource has the ability to generate production. Production can be measured in healthcare in terms of the number of patients per unit of time (Vissers and Beech, 2005). By using the experiences of customers (internal and external) the usability of the built environment can be improved (Fronczek-Munter, 2012) in order to achieve goals with effectiveness, efficiency and satisfaction (ISO, 1998). Matching fluctuating demand with available capacity is one of the most significant challenges for managers in any service industry (Jack, Bedics, and McCary, 2006). Roper et al. (2009) state that an analysis of existing facility assets is critical in order to plan and react to changing facility needs. The inability of matching demand with available capacity can have serious consequences in the healthcare industry, like denying or limiting patients (Naylor, 1991). Therefore the challenge for facilities planning is to increase space utilization and increase the speed of care delivery in order to make full use of the existing facility. Subsequently, these operational performances will be further elaborated. 2.1 Space utilization The allocation of limited capacity of resources among several customer types is a critical decision encountered by many service firms (Ayvaz and Huh, 2010). Fitting the organizational structure into a building structure is covered by space planning (Wiggins, 2010). According to Naylor (1991) every healthcare system in every country, no matter how rich the country is, has to ration medical services because resources that have to be allocated are always limited. Therefore the utilization level of an outpatient clinic is important. Utilization of available resources is an issue of administrators because they have to deal every day with the capacity management challenges (Jack and Powers, 2009). Space is one of these essential resources of an organization. Space can easily be under-utilized which is expensive because space is expensive to buy, costly to maintain but also slow to dispose of (Wiggins, 2010). The key role of the facility manager is to translate business data into a set of requirements for workspace and its infrastructure (Finch, 2012). Finch (2012) states that an understanding of the current space is critical for a successful space planning to achieve a match between supply and demand. A lot of research focused on the occupancy rate of hospital beds or the utilization of outpatient clinics where patients have direct contact with a physician. However, there is a gap in research regarding space utilization of outpatient clinics that perform PET scans. According to Green et al. (2006) diagnostic-imaging equipment is very expensive and therefore hospital managers have the need to keep these machines fully utilized by examining patients. Machine capacity refers to the hours the machine is used. The following formula is a measurement for machine utilization (Schönsleben, 2007). actual output maximum possible output The aim of the outpatient clinic in this study was to achieve a space utilization level of 70%. According to Wiggins (2010) no organization achieves a 100% utilization level of spaces, but a space utilization level of 85% is generally found acceptable (taken into account holiday, sickness or absence on business). Therefore, this study will measure space utilization by dividing the actual space utilization in minutes by the maximum available time in minutes during one week (taken into account current opening hours and quality check moments). 369


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Several studies assessed how the properties of end-users can influence the allocation of resources. Although various patient types exist, the majority of studies assume patients are homogeneous and are scheduled on a first in first out (FIFO) method (Caryirli and Veral, 2003). When patients were homogeneous, for instance, they all had the same disease, the same degree of illness, and the same response to therapy (Litvak, 2000). According to Vissers and Beech (2005) a planning is more manageable when the patients were categorized. The underlying assumption is that the patient population can be classified into groups based on examination time characteristics (Cayirli and Veral, 2003). Therefore, the challenge for a healthcare system is to create a naturally variable group of patients into a homogeneous group in order to achieve higher efficiency (Litvak, 2000). According to Vissers and Beech (2005) patients have to be grouped according to their utilization of resources. This means that patients in the same group have a similar length of stay and require on average the same amount of nursing and operating time, regardless of disease, illness, and response to therapy. Studies focused on PET-scans discuss whether the individual weight of the patient can influence the quality of images, depending on the amount of radioactive dose and the type of camera (Willowson et al., 2012). This study will explore whether the individual weight of patients can also influence the utilization of resources. The physical properties of Dutch residents changed over the last 30 years. In the Netherlands the population of overweight people has increased over the last 30 years. In the period 20092011 over 6.5 million people were moderately or severely overweight in the Netherlands. This amount equals a share of 41 per cent (Groot and Bruggink, 2012). According to Kuper and Kuper (2009) worldwide even more people are overweight than underweight. This physical change of Dutch residents will increase the overall demands of health care and it is likely that it will affect the ways in which health care is delivered and the spaces are used. Willowson et al. (2012) categorized patients based on individual weight and showed that weight influences the amount of dose which is required for qualitative images on a mCT scanner. Optimization of the injected dose minimizes patient discomfort and can increase throughput of patients (Lartizien et al, 2001). Therefore, this study will explore whether the current space utilization can potentially be increased and how this can be influenced by the individual weight of the patients.

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2.2 Speed of care delivery When an examination for a PET scan is delayed, patients can face substantial risks of complication or even death (Wang, 2004); especially in the current case study of oncology patients. Therefore speed of care delivery is an important performance objective. Delays often occur in health care and the only solution almost seems to be adding capacity (Van der Voort, Van Merode, and Berden, 2010). Many health care practices are in state of disarray because the appointment books are overfilled. According to Vermeulen et al. (2009) short waiting times of local resources are important to achieve a high hospital-wide patient throughput. Because diagnostic resources are literally central in the clinical pathways of many patients it is immediately a bottleneck for health care processes in a hospital when long waiting times occur. According to Murray and Berwick (2003, p.1036) the major barriers to perform efficiently are psychological; ‘the fear of change and the lack of confidence that existing resources can meet the demand for care’. This can be empirically improved by the fact that the length of waiting lists remains steady at a given number of weeks or months. When supply is absolutely insufficient the waiting list will grow. Fast response to the customer is important but speed inside the operation is also important (Slack et al., 2004). Internal speed is for example caused by speedy decision making or speedy movement of materials. By decreasing internal throughput times waiting times will reduce. Groover (2007) relates this to the workers performance. He states that when manual work takes place and the worker performance increases, the time to accomplish the work cycles decreases. According to Groover (2007) it is important to accomplish only productive work by minimizing the non-value-adding activities. According to Kanawaty (1992) three main categories can be distinguished for non-productive activities: (1) poor design of the product or service, (2) inefficient methods (poor work layout and interruptions), and (3) the human factor (Kanawaty, 1992). Examples of a poor design of the product or service are quality standards that are more stringent than necessary. The second category reflects for example the inefficient layout that requires excess movements of materials, long set-up times between batches of work, workers waiting for work or inefficient material handling. The third category refers to non-productive activities of humans like absenteeism, workers spending too much time socializing, inadequate training of workers, or workers that work slowly (Kanawaty, 1992). However, the working climate of personnel is also an important indicator for efficiency (Vissers and Beech, 2005). Groover (2007) states that several studies confirmed the fact that rest breaks increases the overall productivity of the worker during the shifts. More work is accomplished and fewer mistakes are made at the end of the day. Hence, it is important to explore whether the nature of activities can influence the speed of care delivery. Consequently, it was pre-supposed here that a high frequency of care-related activities would positively influence the speed of care delivery. 3 METHODS The current study was made in the context of discovery and exemplification. A comparison was made between the planned and the actual space utilization level of a scanning room by performing direct observations in order to assess if the current space utilization can potentially be increased. Individual patient weights were collected from the patients who have been examined on the mCT camera in order to assess whether the speed of care delivery can be improved. Moreover, the nature of activities was also studied by applying the multidimensional work sampling method to assess whether the current employees can examine more patients in order to increase the speed of care delivery and space utilization. All data were acquired on the mCT 64 slices PET/CT camera.

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3.1 Time study Space utilization was continuously observed during one week whereby the observer used a timekeeping device to record the time it takes to accomplish an examination (location 5, figure 1). For this study the set-up time, cool-down time, scanning room time, and scan time were observed (figure 2). The set-up time was the observed time interval between the moment the patient placed a first step into the scanning room (T0) and the moment the nuclear worker pushed a button on the self-controller to start the scan (T1). Cool-down time was the time interval between the moment the clock of the scan time on the computer stopped (T2) and the moment the patient placed a first step out of the scanning room (T3). The scanning room time was the time interval between the moment of arrival in the scanning room (T0) and the moment the patient left the scanning room (T3). Scan time was the time interval between the start of the scan by the nuclear worker (T1) and the time the scan was finished (T2). T

T1 Set-up time

Figure 2 Lead time scanning room

Scan time

T

T Cool down

Scanning room time These different times were observed per patient. During the time study the type of examination was also registered in order to find out whether there is a correlation between the times and the type of examinations. Next to the type of examinations the weight of patients was also registered in order to find out whether there is a correlation between the time and weight of end-users. This information was used to assess if the facilities can be planned more efficiently to increase the speed of care delivery. The data on time and patient weight were assumed to be ordinal. Comparison was made with descriptive statistics. For calculating the correlation the Spearman Rank Correlation analysis was used. 3.2 Multidimensional work sampling method Next to space utilization, the nature of activities of diagnostic staff was measured by applying the multidimensional work sampling method (MDWS) which consisted of 501 observed frequencies. Work sampling is a statistical technique for determining the proportions of time spent on predefined categories of activity. To be able to define realistic activities, the categories were inductively defined and discussed with the involved diagnostic staff and management. During these discussions employees were also informed about the design and the objectives of the study. A distinction was made between ‘care-related activities’ and ‘other activities’ (table 1).

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Table 7 Work Sampling Activity Classification Care-related activities Prepare patient Scan patient Bring / pick up patient Data processing Reading patient record

Other activities Quality control Administration / computer work Clean-up / prepare material Discussion Phone call Waiting Walking around Own time Absent Other Go to other camera

Activities were categorized care-related when the activity contained a direct relation with patients. For reliable results the observations were made at random times during one workweek. Therefore the so-called re-pipip was used. This is a pager which sounded at randomly generated times to remind the observer to record the activities at that time. The observer used the pager as a tool to define the random times when to observe the diagnostic staff to assess whether the current nature of activities can influence the speed of care delivery. 4 RESULTS 4.1 Space utilization During the measurement week one examination was cancelled. In total 56 examinations were planned and 55 examinations were being held. The planned utilization and actual utilization were calculated in comparison with the available scan room time (table 2). The available time represents the total time the scanning room can examine patients during one week. Table 8 Planned times versus actual times (in hours)

Available time hh:mm:ss (%)

Planned utilization hh:mm:ss (%) (n = 55)

43:30:00 (100%)

37:45:00 (86.8 %)

43:30:00 (100%)

37:45:00 (86.8 % )

Set-up time (T0 – T1) Scan time (T1 – T2) Cool down time (T2 – T3) Scan-room time (T0 – T3)

Actual utilization hh:mm:ss (%) (n = 56) 05:27:00 (12.5% ) 21:34:00 (49.6%) 03:16:00 (7.5%) 30:17:00 (69.6%)

The table shows that the planned utilization time is approximately 30 hours during one week (69.6%). The actual utilization time can be divided in the set-up time that takes over 5 hours (12.5%), the scan time that takes well over 21 hours (49.6%), and the cool-down time that takes well over 3 hours (7.5%). In comparison with the planned utilization time the space is not utilized for well over 7 hours during one week, and on top of this, in comparison with the available time the space is not utilized for approximately 13 hours during one week. These results show that the actual space utilization is lower than the planned space utilization.

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In order to refine the difference between planned and actual time the properties of end-users are studied. The focus of this study was on fluorodeoxyglucose (FDG) whole-body examinations because in this outpatient clinic the majority (59%) of examinations are FDG wholebody examinations. An FDG whole-body examination takes 7 or 8 camera positions. For adult patients weighing 60 kg or less it takes one minute per position. When adults weighing between 60 kg and 90 kg it take two minutes per position and when adults weighing 90 kg or more it takes three minutes per position. Table 3 Correlation weight and actual scan times (in minutes)

Correlati on coefficien t 0.881** (N=22)

Actual scan time patients ≤ 60 kg

Actual scan Actual scan time time patients 60 patients ≥ 90 kg – 90 kg

FDG 8.40 17.00 25.25 wholebody (N= 5, SD= 1.52) (N= 13, SD= (N= 4, SD= 2.22) without CT 2.48) FDG 0.553* 22.00 26.55 34.00 wholebody (N=13) (N= 1, SD= ø) (N= 11, SD= (N= 1, SD= ø) with CT 3.42) FDG 0.607** 10.67 21.38 27.00 wholebody (N=35) (N= 6, SD= 5.72) (N= 24, SD= (N= 5, SD= 4.36) (total) 5.65) Notes: * p