Relating Physical and Service Performance in Local Government Community Facilities - Essay Example

A B S T R A C T Facility management has evolved a lot since the late 1980s and is no more restricted to the management of the property. Globalizationand competition has increased the pressure on firms to reduce costs on non-core activities. At the same time, services cannot be compromised upon because in the environment of intense competition, service becomes the differentiating factor. It plays a strategic role in business organizations. Information technology and management skills are essential for the successful implementation of the FM. FM remains a supporting function but it cannot be ignored because it enhances competitive advantage. It leverages the economies of scale and is based on real needs. The factors critical to FM in an organization include organizational characteristics, facilities feature, business sector, culture and contexts. FM is no more restricted to business units but is greatly needed in the education sector, medical and health care sector and in care homes which are highly service oriented and case specific. It is also used in “smart” homes using technology to enhance facilities and support services. In the case of care homes, the stay of the service users is long term and hence the need for individualized service is even more pronounced. Consumers are vulnerable and their choice of home is more serious and complex than choosing other consumer goods in care homes. FM has a long way to go and can contribute in giving a strategic direction to any organization. It requires a professional approach with a trained facilities manager having different skills. It is usually the non-core activities that need to be addressed professionally. These activities, despite being non-core functions are in alignment with the core objectives and business goals. While its focus remains the workplace, the facilities extended are beyond the space that is provided. The FM function has to fit with the nature and demand of the organization. It provides better infrastructure and logistics support to the business unit. The support services are given priority based on the key role they play in support of the key business activities. FM works as a key strategic function in reducing risks and gaining advantages for the organization of facility resource issues. The most important element that matters at the end is customer satisfaction – what the business unit is achieving in relation to the expectations of the customer. Aligning the management of facilities with the institutional strategic aims and objectives goes beyond the role of providing space as the need arises. While there has been tightening of resources, there has been an increasing demand for effective and accountable services (Brackertz, 2006). Facilities are needed to provide services to the community in a timely and appropriate manner. Linkage Community Trust (Linkage), a registered charity, providing high quality education, care and employment services to people with learning difficulties and other disabilities, runs Residential Care Homes. To enable the people to realize their full potential, to maximize their independence and integrate within their local community, Linkage feels that facilities should be enhanced at the Care Homes. This paper will evaluate the feasibility of outsourcing catering and ground maintenance demonstrating strategic facility management. Property is regarded as an asset and if properly managed can add strategic value to the organization. Competition in the business sector has also resulted in pressure on the organizations to reduce expenditure on non-core activities. Economic requirements of facilities have led to the development of Facilities Management (FM) discipline (Sohet & Lavy, 2004). This has a posed a challenge for those responsible for the management of the properties and provision of services. Advanced information technology provides greater data-processing capacities applicable at all stages – from design to operations and maintenance. Facilities Management has gained a foothold in the property and construction industry since the late 1980s but as a profession it still suffers from identity crisis (Tay & Ooi, 2001). FM does not have a strategic orientation argue some authors but it does play a strategic role in business organizations. Some are of the opinion that FM enhances a firm’s competitive advantage. Over the years however the profession has evolved and service providers have entered the arena. Organizations now seek to provide a complete infrastructure for business by embracing other working environment components like IT, finance and human resources. It is evident that the focus of FM is the workplace, which implies that it is not limited to commercial office buildings. It encompasses a broad range of workplaces like medical, educational and industrial workplaces. FM is applicable to any organization that occupies space for work. The key factors involved in strategic FM are demonstrated in the figure below: Source: Tay & Ooi, 2001 Facility Management covers a wide range of facility services and the management of which can contribute to the success or failure of an organization’s business (Chotipanich, 2004). FM helps to manage facility resources, support services and working environment to support the core business of an organization. The facilities and the services are prioritized differently across different businesses. This makes it essential to fit the FM function to the nature and demand of the organization. The services provided should fit and respond to the actual characteristics, needs and constraints of a particular organization. Thus FM is the support function coordinating physical resources and workplace, providing support services to users, and process of works to support the core business of the organization. FM has been defined as the management of infrastructure resources and services to support and sustain the operational strategy of an organisation over time (Nutt cited by Chotipanich, 2004). FM supports and sustains the operations work and activities of the organization and their staff and helps to manage work environment and support services. FM is the management of the organization’s facility resources and support services at both operational level and the strategic level. Even though the primary function of FM is operational function which is concerned with short-term results on a day-to-day level, at the strategic level issues like property asset portfolio management, strategic property decision, and facility planning and development, are involved which are related to policy and strategic plan of the organization. At a national level, the strategic objective of FM is to provide better infrastructure and logistics support to business and public endeavors of all kinds and across all sectors (Nutt, 2000). At the local level, its objective is to provide support to the operations of the organization, their working groups, project teams and individuals. Strategic approach lies in making decisions in changing, uncertain, unpredictable and competitive circumstances. FM is an organization specific function based on real business need. It deals with the diversity of facility, organization, business sector, surrounding environment and context, and circumstance (Chotipanich, 2004). Hence standard solutions and practices cannot be applied to the diverse contexts. Facility Managers have the responsibility not just to select the services at random but ensure those services that are essential and hence there can be no universal approach to managing facilities. If FM is based on case specific basis, it can lead to an appropriate FM practice and arrangement. Different authors suggest different factors that are critical to FM in an organization. The four key factors that have been identified by Chotipanich are organizational characteristics, facility features, business sector, and culture and context. Source: (Chotipanich, 2004) Organizational characteristics hold importance because even within the same industry, the needs or different organizations may vary. It depends to a large extent on how the organization has evolved in managing its allocation of managerial responsibilities. The support services are given priority based on the key role they play in support of key business activities. FM works as a key strategic function in reducing risks and gaining advantages for the organization of facility resource issues. FM should be able to contribute to the competitive advantage of the firm. Facilities could be of different types and this requires a strategic approach is selecting and operating it an efficient manner. Maintenance functions are crucial to facilities in organizations like hospitals and nuclear plant. It has also been observed that legal, cultural, environmental, and social contexts give rise to different sets of regional and national priorities regarding FM practice and arrangement. Aligning FM function to the core business function is crucial for effective strategic FM. This could practically close the gap between the business demands and the delivery of facility solutions. FM requires multiple skills and the frequent involvement of professionals from different professional disciplines and background. This profession requires surveyors, architects, maintenance engineers, office managers, catering managers, and human resource managers for delivery of the full range of facilities service in the organization (Tay & Ooi, 2001). FM as a discipline is not yet clear on its goals and objectives. It should be seen as a resource contributing to competitive advantage of the firm. There should be a clear focus of the roles and responsibilities. Efficient managers are essential who can demonstrate their capability to handle the issues that arise. FM is dependent on management and technical knowledge arising from other fields but FM managers need to be equipped with knowledge and skills specific to FM. This requires proper training and he should be willing to take responsibility for the strategic management of the workplace. Despite the concept of FM being in existence for a considerable period of time, it has been subject to discussions and arguments. The definition of FM differs across organizations and authors. Price (2004) states that FM industry and even the internal FM departments see themselves as “commodities” and have thus fallen into a system of discourse and disagreements. FM now faces a challenge of integrating the management of the people and the business process of an organization with the physical infrastructure to enhance performance. Opinions differ and some see it merely as a support rather than a true enabler of business. FM can be viewed as a core competence only in a business that conceives itself as running a facility. The concept of FM is applicable not just to the business organizations but has lately been of significance to institutions that provide Care services to the aged, the disabled and the physically or mentally challenged people of the society. It is increasingly being used in nursing homes and Residential Care Homes, by real estate developers who have introduced the concept of “smart” homes using technology to enhance facilities and support services. The earliest “smart” housing units have been in UK since 1997. A Smart Home is an application of Intelligent Building concept which provides a comfortable and productive environment through automated control systems such as fire safety, security and lighting management (Chapman & McCartney, 2002). Such buildings maximize the efficiency of the occupants and allow effective management of resources with minimum life-time costs. Such a concept is service-oriented and people focused. The aged care industry is also a mature industry where major changes have taken place as a part of globalization in every field. These care homes provide support that range from traditionally classified as health care to that designated in many welfare systems as “social care” (Reed, Klein, Cook & Stanley, 2003). Residents make a home in the facility and their stay is unusually long term. Their care is broad and addresses wider issues of quality of life. This implies that care is not restricted to physical ailments and care. The National Care Standards Commission established by the Department of Health) in 2002 in the UK has the powers to regulate and inspect care to national standards as defined in the care Homes Regulations (Department of Health, 2001a) and National Minimum Standards (Department of Health, 2002b, cited by Reed et al.). The application of FM techniques had just started in 2000 in the health care sector. NHS in UK too established the facilities management through applications within the secondary health-care or acute sector (Featherstone & Baldry, 2000). This was done with a view to add value and support to the delivery of community health care through coordination and integration of different initiatives and drivers. Community FM is an emergent term that identifies the role facilities and its management plays in community life. Recently the private sector has started playing a great role in providing community facilities. Hence to ensure appropriate delivery of services, “Urban FM” has been suggested that could enable community management to be totally externalized to professional service providers (Heywood & Smith, 2006). In the local government authorities (LGA) sector it is considered best management practice to align the real estate function with the organization’s overall aims and objectives (Brackertz & Kenley, 2002). Economic, political and demographic pressures have led to a dramatic change in the structures in which the care homes operate. The provision of services has clearly gained importance and is moving from the existing models to meet the needs of the changing population in different ways. According to Reed et al., as far as care homes are concerned, consumers are vulnerable and their choice of home is more serious and complex than choosing other consumer goods. A study by Price Waterhouse in 1997 stated that consumer interest and preferences regarding various housing options in later life must be measured because differences in attitudes influence the effective demand for seniors housing (Lee & Gibler, 2004). The demand varies with age, financial resources, health and housing service preferences. Even though this study was dedicated to the seniors in Korea, it does demonstrate that too a large extent the individual perception influences services required. This could be applicable in any nation although culture has some influence. Studies have also shown that improved living standards have increased the societal demands for various services (Kim, Kim & Kim 2003). Thus it is essential to understand the consumers’ perception attitudes, opinions, and preferences. In the UK the three elements that are essential to run a good home include policy and strategy, people management and processes (Reed et al.,). Six elements that focus on services for residents include quality of information available to residents, assessment and planning, health-care services, physical environment, catering services, and interest and activities available to the residents. The most important element that matters is customer satisfaction – what the home is achieving in relation to the expectations of the customer. Feasibility study for outsourcing catering and ground maintenance at Linkage The available literature gives sufficient knowledge of the place of FM in the business organization, in the social organization, the barriers and the demands of such services. Based on the above, a study has been carried out to determine the feasibility of outsourcing catering and ground maintenance. It is essential to gain an understanding of the requirements at Linkage. The main aim of Linkage is to enable people with learning difficulties and disabilities to realize their full potential. They offer residential provision to the students who enroll. The vast majority of the residents in their Residential Care Homes are graduates from Linkage. The challenge before the Trust is to provide services to the users which could maximize their independence and help them integrate within the local community. Part of the infrastructure towards this end has been the design and development of purpose built flats which would give the residents a feel of living in their own tenanted accommodation. The purpose behind this is to enable the residents to make an informed choice – to continue to live in Residential Care Homes or to move into their own tenanted accommodation. This requires provision of support services. They have developed landscaped gardens, Café, Bowling Greens which also help to provide employment opportunities, work experience and specialist training for individuals with learning disabilities. Thus they have different establishments which include the Linkage Community Trust, the Residential Care Homes, and the Employment Service. Linkage does have Finance department, Resource Department and a Human Resource Department but to be able to provide support services, facilities management has posed a challenge. The Trust is working on the possibilities of outsourcing certain services. To determine whether to outsource certain activities and which activities to outsource requires segregating the core and non-core activities within any organization. In UK aged care, residential care and other forms of care services are under government regulations. This requires certain standards to be maintained. Studies have revealed that the elements of service which demands the highest attention in UK care homes is catering (Reed et al.,). People have also expressed the desire to decorate their rooms according to their choice rather than those of the company. In this context the step that Linkage has taken in providing residential apartments is greatly appreciated as it gives them greater freedom to live the life of their choice. These findings have helped Linkage to explore the possibilities of outsourcing these activities. The feasibility report requires assessment of the external and internal environment and then take a decision on the strategic direction in alignment with the goals of the organization. External environment Competition Service industry in UK is booming and apart from local government authorities, private institutions have come into the business of providing care. It ranges from care for the seniors, care for the mentally challenged, and care for those with learning disabilities. Many care homes are finding opportunities to provide services which are both cost effective and efficient thereby enhancing relationships with clients. It is essential to improve upon the services which would help to attain the objectives of the Trust. Finance: The most pressing challenge for any Trust is to ensure proper utilization of resources and ensure the management strategies and principles are in place. The European Social Fund (ESF) provides funding for Linkage. `The ESF is one in four Structural Funds designed to strengthen economic and social cohesion in the European Union. In addition, The Learning and Skills Council (LSC) provide funding to Linkage. Linkage Community Trust also organizes charity shows to raise funds from time to time. In 2006, they raised £4000, half of which was shared by BBC’s ‘Go for Gold Appeal’ (ELDC, 2006). Funds and donations keep pouring in from various sources. The parent of a service user treks to Mount Everest to raise funds; Lincolnshire Mark Masons grant £1000 every year. At Linkage, finance is only a support service and not the main element in the Resource Department. Targets are set and budgets are always under pressure. Thus there is a need to adopt flexibility and adaptability in order to respond promptly to the changing demands of the clients. Buying equipments and facilities are becoming costly. Any capital investment should be avoided to achieve economies of scale. It is costly to operate and maintain equipments hence al financing decisions should be taken accordingly. Client Expectation: Linkage students and other service users have varying degree of learning difficulties, from moderate to severe. The service users have difficulties like Down’s syndrome, Autism, Asperger syndrome, Williams syndrome, Fragile X syndrome, speech and language difficulties, visual impairment, hearing impairment, epilepsy or physical disabilities. Thus the diverse demands of the clients have to be attended, which is challenging. The new service delivery options have to be taken into account which includes diverse diet options depending on the disability of the service user. To remain competitive and fulfill the aims and objectives of the Trust and the varying expectations of the service users, it would be worthwhile to consider outsourcing catering. Space Utilization: Through partnership with local housing authority and registered social landlords, service users have been provided the option to experience their own tenanted accommodation, with support from the Linkage Community Support Service. Since Linkage does not own the building it is important to contract out the maintenance and grounds services. This should include housekeeping, landscaping, snowplowing, vending/food service, office equipment etc. Internal environment: Facility design: Facility Management has become a strategic issue which is beyond the day to day requirements. These involve strategic decisions and require efficient management planning. Since the ultimate goal is to give a feel of independence to the service users with learning disabilities, the core function is to make them comfortable. This requires concentration on vocational and work experience opportunities, and a comprehensive and progressive program which would help the service users to develop social and independent living skills, basic education and key skills. The Resource Department within Linkage has three elements – business services, information technology and the Estates Department. The business services team takes care of maintenance, insurance, catering, and domestic arrangements. They are also responsible to manage all of Linkage vehicles. To meet client expectations, this team is also responsible for accommodation upgradation, and addition of safety measures. The estates department is a small team but is responsible for the ground maintenance of all of the properties of Linkage including grounds and gardens, refurbishment and extensions. They take the help of outside contractors but are under pressure as clients expectations keep changing. Management issues: Decisions have to be taken to allow for fuller utilization of staff and which also has to be in line with their talents. They provide the right opportunity for people who are able to work with the local community. At the same time, the management has to focus not just on the needs of the people with learning difficulties but also on the needs of businesses, offering advice, support and training services. Thus, the staff has to be involved in fulfilling the developmental needs of the service users which is the core function of the organization. Other functions like building maintenance catering, grounds and gardens upkeep are support functions and can be handled through contract services, which would leave the staff to focus on client needs. With each coming year there is increasing complexity in management of issues as demands keep changing in the ever changing environment. Planning objectives: Facility management requires the right allocation of resources like people and money to enhance the service to the clients. The purpose of outsourcing catering is to maximize the client experience and reduce pressure on the staff that would then be able to attend to the core functions of the Trust. The physical environment and catering are two of the six important elements in UK care homes that are considered critical to the success of the home. Client interaction revealed that they require upgradation in services. Linkage Community Trust strives to know the needs of the clients and aims to provide all support essential to give them independence. This is challenging in view of the fact that the clients are people with learning disabilities and difficulties. Linkage values collaborative partnerships and involves the staff, the service users and the community. They have a dedicated team and they recognize the services of the staff. Goals Linkage’s mission is to be the first choice for inclusive and life-long education, care and employment services, enabling people with learning difficulties and other disabilities to fully realize their potential. At the same time, it has become essential to develop systems and practices which help to deliver better services. This requires the right allocation of resources to develop and strengthen service through FM. The organizational structure should be client focused and the operational activities must align with strategic goals. Recommendations for future direction and action FM is applicable to any organization that occupies space for work. Linkage has facilities in Toynton, Grimsby, Scremby, Lincoln and Mablethorpe. Linkage was quick to recognize the need for appropriate support to people with learning disabilities and difficulties. Since its inception, its core functions have not been altered - to help such people realize their full potential. FM lends support to the core function of an organization which is why Linkage would greatly benefit by strategic FM. The FM function would have to fit the nature and demand of the Trust. FM helps to manage the work environment and is a function based on real needs of the customers or the service users. Since it is need based, standard services and practices cannot be applied. The role of a Facility manager is one of great responsibility. They have to ensure that services are not just provided at random but are in harmony with the needs of the service users. FM requires a clear focus on the roles and responsibilities of the people. Those responsible for the management of the properties and provision of services are faced with a continuous challenge to upgrade and maintain services. Thus the most important task for Linkage to undertake is to appoint a Facilities Manager to evaluate the Trust and its activities. The Facilities Manager would have to first determine whether any long-range strategic planning has been done in the past. An assessment of the core and non-core activities would have to be determined which would also mean to understand the type of activity that is carried on at Linkage. To minimize confusion, it is advisable to appoint or promote manager from within the staff already familiar with the working at Linkage. This would ensure continuity while enhancing services. An assessment of the internal and external factors suggests that funding is not an issue at Linkage and competition has to be tackled. Staff are dedicated and experienced. The IT element in Linkage is very strong and IT supports in FM right from design to operations and maintenance. Intranet at Linkage is used to enhance service delivery and the service users have access the internet too. The Resource Department is well equipped but some changes could enhance the service delivery system. Contacts were made with the end users to determine their needs and it was felt that they would greatly benefit. A facility support group was formed consisting of major internal facility customers. It is felt to cater to the diverse tastes and demands of the varied service users it would be beneficial to outsource catering which would leave the existing staff to focus on the core objectives of the Trust. It becomes essential to determine how to make the facility operation cost effective and efficient. To outsource catering the following steps need to be taken. Rates have to be taken from different service providers and their service records have to be determined. Each of the homes could have system by which the service users could input their requirements for the week. Since all of them have access to computers and internet, they could order the meal of their choice online. Since one of the objectives of the Trust is to ensure independence and informed decision, this could be a great step ahead in that direction. By ordering the meal of their choice, they could get a feel of their own home and fulfill their requirements according to their need and taste. This would be a break from the usual meals shared by all. It would also help release the staff who are now involved in trying to cater to individual taste buds. They would now be able to concentrate on core functions. As far as grounds maintenance is concerned, while Linkage does have a strong business services team but they have too much of responsibilities on them. The properties of Linkage are widespread and properties today require much more than normal care. To create an ambience of harmony it is essential that experience extra care if taken of the grounds and other services. For instance, if service users prefer to stay in their own tenanted accommodation, all services would be required as a normal home. This would not be possible to deliver through the regular staff at Linkage. The team could concentrate on policy decisions and planning regarding expansion, or even plan the services to be enhanced but the actual delivery of services should be left to outsiders. The supervision should rest with the business team to ensure efficient service. Safety should be the responsibility of the team and should not be outsourced. The team is already saddled with the responsibility of maintenance and management of the Linkage vehicles. Ground maintenance services should include gardens and open areas, landscaping, building system maintenance which includes water, electricity and air conditioning, and housekeeping. These are not the main functions of Linkage but support services. At the same time, these are integral to the success of the Linkage and its mission and hence cannot be undermined. Thus the facilities manager should schedule a meeting with service providers in each of these areas to review the service level expectations and the contract costs. The facilities manager can take the assistance of the various automated system in place to attract rates and take decisions. Technology plays a very important role in the delivery of these services. It also assists in streamlining the process of contracts and service agreements. As far as ground maintenance is concerned, it is not very important to involve the end users but for catering the facilities manager should consider the client preferences in ordering and implementation. Facility management has come a long way since the late 1980s. It keeps evolving at every stage and the process is streamlined. It is now considered a strategic function and not an operational function. Strategic decisions have to be taken at the management level in alignment with the goals and objectives of an organization. As far as Linkage is concerned, it has the benefit of a dedicated and supporting staff, wide service area, information technology widely used by the service users and the staff, and a small but vibrant estates team. FM does require a dedicated manager to give it a professional touch and should not be merely taken as an added service. It is now increasingly being recognized as a professional discipline which has a client-focus approach. It requires multiple skills and helps to reduce costs while enhancing the delivery of service. FM in the future is going to further evolve as more and more companies are coming to recognize its importance and significance in enhancing the competitive advantage. FM is reliant on management and technological knowledge. While the focus is the workplace, the scope has traveled beyond the space. It encompasses a lot of services and activities to enhance the user experience and hence has to be accepted as a recognized business discipline. References: Brackertz, N., (2006), Relating physical and service performance in local government community facilities, Facilities Vol. 24 No. 7/8, 2006 pp. 280-291 Brackertz, N., & Kenley, R., (2002), Service delivery approach to measuring facility performance, Facilities, Vol. 20 No. 3/4 pp. 127-135 Chapman, K., & McCartney, K., (2002),Smart Homes for people with restricted mobility, Property Management, Vol. 20. No. 2 pp. 153-166 Chotipanich, S., (2004), Positioning facility management, Facilities Volume 22 · Number 13/14 · 2004 · pp. 364–372 ELDC (2006), Linkage Community Trust is Chairman’s Charity for the year, < http://www.e-lindsey.gov.uk/News/linkage-20072006.cfm> 25 May 2007 Featherstone, P., & Baldry, D., (2000), The value of the facilities management function in the UK NHS community health-care sector, Facilities, Volume 18 . 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