EMBRACING WORKPLACE TO MOVE FM FORWARD - In partnership with March 2018 - BIFM
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EMBRACING WORKPLACE TO MOVE FM FORWARD FOREWORD The past ten years have seen some of the This knowledge report comprehensively greatest socioeconomic shifts in modern explores the relationship between FM and memory. With a global recession, the rise workplace. We hope you find it of value, and of digital technologies, disruptive business we openly encourage your response. We models and political uncertainty, it is fair to say would very much like to hear your thoughts – that the only constant is change. get in touch at research@bifm.org.uk As a profession, facilities management is no different and this year marks BIFM’s 25th anniversary. Over the years we have seen our profession grow and blossom, but it has not been without its challenges. As an industry that grew from the outsourcing of non-core business functions FMs today comprise a key profession with the combined capacity to deliver major productive benefit; but too often the function is regarded as being of more operational than strategic importance. BIFM wants that to change. We see workplace as a clear opportunity for the industry to raise both its voice and its game; but this does not mean turning away from FM, or its value as a profession. It does mean recognising and exploring the potential combined value of workplace and FM, particularly in the knowledge economy. We are foregrounding workplace because we can achieve an overall uplift to our profession if we can help FMs develop the necessary interconnector skills of a workplace professional and educate the corporate world to demand them. Stephen Roots Chairman BIFM © 2018 BIFM | PAGE 2
EMBRACING WORKPLACE TO MOVE FM FORWARD CONTENTS ABOUT THIS REPORT������������������������������������������������������������������������������������������������������������������������������������� 4 SUMMARY����������������������������������������������������������������������������������������������������������������������������������������������������� 5 INTRODUCTION�������������������������������������������������������������������������������������������������������������������������������������������10 OVERVIEW OF THE RESEARCH�������������������������������������������������������������������������������������������������������������������11 WHAT IS WORKPLACE����������������������������������������������������������������������������������������������������������������������������������12 THE WORKPLACE EQUALISER��������������������������������������������������������������������������������������������������������������������17 PLACEMAKING: THE POWER OF PLACE������������������������������������������������������������������������������������������������������18 WHY IS WORKPLACE IMPORTANT?���������������������������������������������������������������������������������������������������������������19 CONVEYING THE IMPORTANCE OF WORKPLACE��������������������������������������������������������������������������������������� 22 WORKPLACE HAS ‘CORE’ VALUE �������������������������������������������������������������������������������������������������������������� 24 WHAT DOES WORKPLACE MEAN FOR FM?��������������������������������������������������������������������������������������������������� 26 BACK TO THE FUTURE – A BRIEF HISTORY OF FM AND WORKPLACE���������������������������������������������������������� 30 ENDNOTES���������������������������������������������������������������������������������������������������������������������������������������������������31 © 2018 BIFM | PAGE 3
EMBRACING WORKPLACE TO MOVE FM FORWARD ABOUT THIS REPORT ABOUT THE AUTHORS This knowledge report was written by Dr James For more information about 3edges and Pinder and Ian Ellison, Directors of 3edges Workplace Matters, visit www.3edges.co.uk Workplace Ltd. 3edges helps organisations of all shapes and sizes unlock workplace advantage through action-led consultancy, research and a broad range of education, learning and developmental approaches. James is an applied researcher with a longstanding interest in the workplace. Following a degree in building surveying, his doctorate explored the relationship between workplace design, perceptions and cost. JAMES PINDER IAN ELLISON BSC(HONS) PHD BSC(HONS) MBA CBIFM FHEA He is an experienced evaluator, adept at providing organisations with new insights and communicating those insights in engaging and understandable ways. Ian joined Sheffield Hallam University as a senior lecturer following ten years in both in-house and service provider facilities management roles. Since then his engaging, provocative and personable approach has led to a wide range of workplace, leadership ACKNOWLEDGEMENTS and change related commissions, always with We would like to express our gratitude to the education and advocacy at their core. His 600 plus people who participated in either ongoing research explores what matters to the interviews or online survey – our research people about workplace. and this knowledge report would not have been possible without their time, thoughts Reflecting our commitment to learning, and ideas. We would also like to acknowledge 3edges hosts the regular Workplace Matters the valuable contribution that Jill Fortune and podcast, and co-created the Workplace Pete Andrews made to this research and the Leadership Manifesto with workplace author valuable feedback from our peer-reviewers. and strategist Neil Usher. Finally, thanks to Neil Usher for contributing his ‘6Es’ model to this report. © 2018 BIFM | PAGE 4
EMBRACING WORKPLACE TO MOVE FM FORWARD SUMMARY Recent years have seen a growing interest The overall aim of this report is to raise awareness in workplace, as some of the world’s most and understanding of workplace amongst FM influential and successful companies have used practitioners, and to encourage them to think workplace as a tool for competitive advantage. about what workplace means for them. The term ‘workplace’ has always been part of the facilities management (FM) vocabulary, This report builds upon research carried out however, like FM itself, the term means different on behalf of the British Institute of Facilities things to different people. Management (BIFM) in 2017, which included interviews with FM and workplace practitioners, This report therefore explores what ‘workplace’ and an online survey of BIFM members. is, why it’s important, and what opportunities and challenges workplace presents for the FM profession. This report explores what ‘workplace’ is, why it’s important, and what opportunities and challenges workplace presents for the FM profession © 2018 BIFM | PAGE 5
EMBRACING WORKPLACE TO MOVE FM FORWARD WHAT IS WORKPLACE? For some people workplace brings to mind Any workplace can therefore be seen a physical setting (usually a building) where to comprise these three overlapping people carry out their work; for others, components. It’s the overlapping nature workplace is more about culture. These of these components that’s really critical different perspectives of workplace are – because one component will inevitably wrapped up in our notions of ‘work’ as either impact on the others. ‘somewhere you go’ or ‘something you do’, Although an organisation’s culture, notions that are shaped by our professional workspace and technology can be (and background, education and upbringing. often are) changed independently of each other, they are interlinked, so if a disconnect Over two-thirds of BIFM members who occurs problems will arise. responded to our survey indicated that they The value of workplace is in viewing see workplace as being more about the space, culture and technology together cultural than the physical environment. – appreciating the impact that one The research also revealed more nuanced component can have on another, for perspectives in which workplace is seen as better or worse. an amalgamation of the physical and the cultural environments, where there is more This underlines the need to view workplace of an emphasis on service and experience. more holistically, something that rarely happens in organisations. The components The reality is that physical space and culture of workplace – as outlined here – have are intrinsically linked: a sense of place comes traditionally been considered separately, and through the meaning people bring to it. Physical often managed in silos. However, the problem space shapes organisational culture, and with managing the workplace this way is self- organisational culture shapes space. We also evident: decisions made unilaterally in one know that technology plays a key role in work – it domain may (and often do) have a negative always has done. Technology can therefore be impact on another domain. considered a third component of workplace, alongside physical space and culture. The value of workplace is in viewing space, culture and technology together – appreciating the impact that one component can have on another, for better or worse © 2018 BIFM | PAGE 6
EMBRACING WORKPLACE TO MOVE FM FORWARD WHY IS WORKPLACE IMPORTANT? The idea that workplace can be a lever for At an individual level workplace can impact strategic advantage is by no means new, on people functionally (influencing whether but it’s one that many senior leadership or not they can work effectively) and teams still fail to act upon. Workplace very symbolically (affecting how they feel about often gets taken for granted. Despite the their work and/or organisation). centrality of workplace to individual and Workplace is important at an organisational organisational activity, in many organisations level because it can, amongst other things, the management of workplace continues to be used to project an organisation’s be seen as ‘non-core’. Non-core activities are purpose and brand, attract and retain typically perceived to be less valuable than talent, or initiate change. core activities, which make them a more likely target for economy-focused challenges and Progressive organisations recognise this cost-cutting. and invest in their people, technology and workspace. For these organisations workplace However, decades of research have shown is core to what they are about. that that each component of workplace is important at both an individual (personal/ employee) level and organisational (company/ business) level. © 2018 BIFM | PAGE 7
EMBRACING WORKPLACE TO MOVE FM FORWARD WHAT DOES WORKPLACE MEAN FOR FM? Workplace played a fundamental role in the There is an opportunity to embrace early development of FM and, despite the workplace as a way to realise a more relationship weakening in the intervening business-relevant version of FM. For people years, has the potential to play a critical role in outside of FM, the term ‘workplace’ is more its future. However, that role is by no means evocative than ‘facilities management’. inevitable because as well as presenting Whereas FM is often concerned with the opportunities, workplace also poses a number means (the supply of operational services), of challenges for the FM profession. workplace implicitly focuses on the ends (enabling strategic business performance). Some people see workplace as a vehicle for In the same way that some organisations use raising the profile of an FM profession that workplace to attract and retain talent, the has for decades struggled to get ‘a seat at language of workplace might be a useful the top table’ and has repeatedly been told vehicle for FM to communicate with and to be ‘more strategic’. This is understandable appeal to a broader and younger audience. given that many of the FMs who responded However, if some facilities managers still see to the research felt that their work wasn’t workplace solely in terms of the physical valued, understood or respected. The environment, there is a risk of FM just paying research found that FM still has problems lip service to workplace rather than genuinely with its identity and status. understanding and embracing it. Workplace played a fundamental role in the early development of FM and, despite the relationship weakening in the intervening years, has the potential to play a critical role in its future © 2018 BIFM | PAGE 8
EMBRACING WORKPLACE TO MOVE FM FORWARD There is evidence to suggest that FM is There was a feeling that if FM is to assume a beginning to recognise a potential workplace workplace leadership role the profession as related remit beyond its traditional physical a whole will need new skills and be better at domain – seeing the role of FM as being more speaking the language of business. about enabling work than managing space. The FM profession has an opportunity The research highlights an opportunity for FM to be proactive and lead by example by to assume a unifying or leadership role, bringing demonstrating value through action, together the different elements of workplace for instance by putting an emphasis on management that have traditionally operated ‘placemaking’ in organisations and adopting in silos. the role of ‘enabler’. A potential risk for the FM profession is that if There was a strong sentiment that it doesn’t assume the workplace leadership management of the workplace needs to role someone else will, thereby relegating be better integrated – particularly in terms FM to the role of building manager, divorced of the relationships between FM, HR and IT from the core business. functions. FM was seen to have the breadth of knowledge and experience to fulfil a unifying role in the workplace, however assuming a leadership role also creates challenges for the FM profession. If some facilities managers still see workplace solely in terms of the physical environment, there is a risk of FM just paying lip service to workplace rather than genuinely understanding and embracing it © 2018 BIFM | PAGE 9
EMBRACING WORKPLACE TO MOVE FM FORWARD INTRODUCTION Some of the most influential and successful This report builds upon research carried out companies in the world see workplace as a on behalf of the BIFM in 2017. The research tool for business advantage. For instance, the sought to explore the current state of the four largest American technology companies FM profession and the potential challenges – Google, Apple, Facebook and Amazon – all and opportunities facing it in the future. The invest heavily in their workplaces and regularly relationship between FM and workplace was a make media headlines with their high-profile key focus of the research because of the central projects. These and other leading organisations role it had played in The Stoddart Review’s have acknowledged that workplace is high 2016 report, ‘The Workplace Advantage’, for on their business agenda and see it as a way which BIFM acted as host organisation2. of improving their business performance, employee experience and brand value. As well as the 2017 research this report will draw upon other sources of information and While the scale and nature of the investment the informed opinion of the authors. The by the big technology companies may seem overall aim of this report is to raise awareness far removed from the day-to-day reality of most and understanding of workplace amongst FM other organisations, it’s difficult to refute that practitioners, and to encourage readers to think they have raised the profile of workplace and about what workplace means for them. Each legitimised interest in it. As The Economist noted section therefore contains ‘thinking tools’ for last year: “Other industries would be wise to take readers to use and a summary of key messages. time to watch how tech firms are structuring their work environments.”1 It’s also clear that the growing interest in workplace presents opportunities and challenges for a facilities Some of the most management (FM) profession that has struggled influential and successful to gain recognition outside of the FM industry. companies in the world The purpose of this report is to highlight the see workplace as tool for opportunities and challenges that workplace presents for FM by exploring the relationship business advantage between FM and workplace – and considering how this relationship could change in the future. The term ‘workplace’ has always been part of the FM vocabulary, however like FM itself the term means different things to different people, which can be confusing. This report will look to articulate what ‘workplace’ is, why it’s important, and what a better understanding of workplace means for FM and its practitioners. © 2018 BIFM | PAGE 10
EMBRACING WORKPLACE TO MOVE FM FORWARD OVERVIEW OF THE RESEARCH The research canvassed the opinions of BIFM Reviewing previous research and members, views of FMs who aren’t BIFM publications about the FM profession and members and people from other disciplines the FM industry, in order to help inform who work in and around the FM industry the design of the data collection and – for instance, workplace consultants, provide context to the findings. architects and real estate professionals3. Telephone interviews with 78 people, The research was conducted between April including 28 BIFM members and 50 and July 2017 and involved: industry professionals working in and Analysing anonymised BIFM membership around the FM and workplace industries. data, in order to create a demographic An online survey of BIFM members, which profile of BIFM membership and a yielded 550 responses. The profile of baseline against which to compare the respondents was broadly similar to BIFM’s survey data. membership as whole. The purpose of this report is to highlight the opportunities and challenges that workplace presents for FM by exploring the relationship between FM and workplace – and considering how this relationship could change in the future © 2018 BIFM | PAGE 11
EMBRACING WORKPLACE TO MOVE FM FORWARD WHAT IS WORKPLACE? The word ‘workplace’ is used frequently in “a place or premises in which industrial or everyday conversations and in the news and manufacturing processes are carried out” 4. So, media. However, if you were to ask people as with workplace, there are multiple notions of – your friends, family or colleagues – what work: it’s about activity (and therefore culture) workplace means to them, it’s likely that you’d but it’s also about location (in a physical space). receive a range of different responses. For some people workplace brings to mind the physical We can see these different perspectives setting (usually a building or workspace) in two well-known workplace assessment where people carry out their work; for others, tools. For example, Leesman5, the workplace workplace has more cultural relevance – it’s the benchmarking firm, frame workplace as the social setting or community of people doing physical work environment, seeking to measure the work. its impact on organisational experience. Their survey questions (and resulting data) are all These different perspectives are wrapped up in about the physical aspects of workplace and our notions of ‘work’ itself. Work as ‘something its impact on employees’ ability to carry out you do, not somewhere you go’ has become their work. In contrast, Great Place to Work6 see a popular phrase, but we still say things like workplace in terms of the cultural phenomena ‘I’m going to work’ - because many of us still of trust between colleagues and employee regularly do just that. The enduring notion engagement. Their survey questions explore of ‘work’ as a fixed location appears to have the non-physical aspects of workplace. Neither roots in our industrial past, with ‘works’ being approach is wrong, but they are two different ways of seeing and assessing workplace. RESPONDENTS’ VIEWS ON WORKPLACE © 2018 BIFM | PAGE 12
EMBRACING WORKPLACE TO MOVE FM FORWARD These contrasting perspectives of workplace “The place that people do their best work” were also reflected in the responses of BIFM members. When survey respondents were “Somewhere you do something that you asked to indicate their position on workplace, get paid for” there was a broad spectrum of responses “The physical environment that employees between the two extremes. The fact that are located in and their workstation” over two-thirds of respondents positioned themselves towards workplace being about These definitions are interesting because ‘how people work’ suggests that, for many of they also highlight how some people define them, workplace is becoming more about the workplace more narrowly in terms of office cultural than the physical environment. environments, whereas others see workplace more broadly to include a wider variety of However, it’s clear that some people still physical settings, corporate or otherwise. see workplace primarily in terms of physical settings, a fact echoed in the comments made The research also revealed more nuanced during the interview research. For instance, perspectives in which workplace is seen as workplace was defined as: an amalgamation of the physical and the cultural environments. For instance, some “A physical environment where you go people defined workplace as a service, to connect to others. Not necessarily with an emphasis on meeting the needs employer space” of ‘customers’ rather than simply providing “Anywhere you work – not a desk” workspace for ‘users’. Serviced office space epitomised this perspective of workplace. Other interviewees saw workplace more as a curated experience, citing hotels and co- working spaces as examples7. DIFFERENT PERSPECTIVES ON WORKPLACE © 2018 BIFM | PAGE 13
EMBRACING WORKPLACE TO MOVE FM FORWARD Ultimately, the way that we view workplace developments in technology have served to is shaped by our professional background, shape our built environment and our culture, education and even upbringing. These in turn and vice versa. Just think about the impact influence what we consider to be significant that the smartphone has had on the way we in the world around us. For instance, if you are live and work. Technology can therefore be from a built environment profession, your view considered the third component of workplace, of workplace is more likely to include some sort alongside physical space and culture. Any of physical element. But if your background workplace – whether it be an office, shop, is more people/employee focused, you may factory, school or hospital – will comprise these be more predisposed to see the workplace in three overlapping components. terms of organisational climate or culture. THE THREE OVERLAPPING COMPONENTS However, whether your view of workplace OF WORKPLACE is orientated towards the physical or the cultural, the reality is that physical space and culture are intrinsically linked: a sense of place comes through the meaning we bring to it. Winston Churchill, the then British Prime Minister, seemed to be implicitly aware of this when he declared that “we shape our buildings, and afterwards our buildings shape us”, during a discussion of how to rebuild the House of Commons following its bombing in the blitz8. So, even if our professional biases tell us otherwise, we should be thinking of workplaces as an amalgamation of physical space and culture. Whilst physical space and culture are important, we mustn’t neglect the key role that technology plays in work – and always has done. Throughout human history Whilst physical space and culture are important, we mustn’t neglect the key role that technology plays in work – and always has done © 2018 BIFM | PAGE 14
EMBRACING WORKPLACE TO MOVE FM FORWARD It’s the overlapping nature of these These examples are useful because they components that’s really critical – because underline the need to view workplace one component of workplace will inevitably holistically, something that rarely happens impact on the others. For instance, a physical in organisations. Physical space has workspace that is designed to be flexible, with traditionally been the domain of estates a range of different work settings, will not be and FM departments; culture has been utilised to its full potential if an organisation’s the preoccupation of leadership teams culture constrains choice and autonomy, and more recently some HR functions; and and/or its information technology doesn’t depending on context technology has been enable people to work wherever, whenever the responsibility of operations and/or IT and however they need to. Equally, having departments. However, the problem with the technological capability to work in a managing the workplace in this way is self- distributed, flexible way is largely pointless evident: decisions made unilaterally in one without the cultural elements in place to allow domain may (and often do) have a negative people to take advantage of it. impact on another domain. This is an issue that we return to later, when we consider what workplace means for FM. Whether your view of workplace is orientated towards the physical or the social, the reality is that physical space and culture are intrinsically linked: a sense of place comes through the meaning we bring to it © 2018 BIFM | PAGE 15
EMBRACING WORKPLACE TO MOVE FM FORWARD KEY MESSAGES Workspace does not equal workplace. Workplaces need to be viewed Workplaces also comprise cultural and holistically to ensure that their technological components as well as spatial, cultural and technological physical space components are aligned Workplaces are more than just about offices – they include a diverse range of work settings. All work happens somewhere. © 2018 BIFM | PAGE 16
EMBRACING WORKPLACE TO MOVE FM FORWARD THE WORKPLACE EQUALISER We use a series of ‘thinking tools’ to help structure conversations about workplace. One such tool is the ‘workplace equaliser’, illustrated below. The equaliser suggests that the three components of workplace exist on continua, which can be used to understand the relative positions of each component of an organisation’s workplace and determine how well they are aligned with each other. Thinking about workplace in this way is Workspace exists on a continuum useful because it underlines the need to between fixed (very limited choice of work view the three components of workplace settings and limited sharing) and flexible (a together. Although an organisation’s wider choice of work settings and a greater culture, workspace (physical space), degree of sharing and/or mobility) and technology can be (and often are) Technology exists on a continuum changed independently of each other, between constraining (poor functionality they are interlinked, so if a disconnect and often limited choice) and enabling occurs problems will arise. This thinking (technology that reflects and supports tool is therefore a great way of framing different user needs) discussions about the need for change in the workplace. Try using this tool to appraise you own workplace, by asking yourself the The labels on the continuum may vary following questions: depending on context and the type of work being carried out. For example, the Where would you position your workplace equaliser above was developed workplace on each part of the for office workplaces and suggests that: equaliser? Are the labels appropriate and, if not, Culture exists on a continuum what should they be? between traditional (embodying How well aligned are the different principles such as presenteeism, aspects of the workplace? hierarchy and status) and progressive How might your workplace need to (embodying principles such as trust, change, and who are the key people choice, flexibility and empowerment) you need to talk to about this? © 2018 BIFM | PAGE 17
EMBRACING WORKPLACE TO MOVE FM FORWARD PLACEMAKING: THE POWER OF PLACE “First life, then spaces, then buildings. A broader notion of place identity The other way around never works” shines through in an approach called Jan Gehl, Life Between Buildings ‘placemaking’. Place in built environment terms has its roots in urban planning and The relationship between people, space design. During the 1960s and particularly and place has for centuries been a in the USA, top down and rigid planning preoccupation of philosophers, sociologists, solutions favoured for example transport historians, geographers and many other routes, automobiles and shopping centres academic disciplines. We tend to forget over people. In essence, design decisions this when we focus on the traditional remit began eroding human scale communities. of FM, however stepping beyond our usual sources of knowledge can often help us In reaction to this, urban activists such as Jane see things differently. Jacobs and behaviourists such as William H Whyte began challenging these then growing For instance, one short sentence from conventional wisdoms. They foregrounded eminent human geographer Yi-Fu Tuan an approach called ‘placemaking’, both as a shows just how intertwined space and place process and a philosophy, to collaboratively are through our cultural interpretations. Tuan reimagine public spaces as the heart of explains, “What begins as undifferentiated communities. For our FM and workplace space becomes place as we get to know discussion, it is placemaking that “creates the it better and endow it with value”23. For cornerstones of mental association and gives Tuan, space is freedom, openness and even such places the patina of affection” 25 through sometimes threat, whereas place is stability the lived experiences of everyone inhabiting and security. It’s interesting to reflect on this and using their workplace. proposition in relation to the new workspace solutions we seek to implement, the cultural So, from ideas like these we can begin to change challenges we consequently face, and appreciate both how interlinked space the outcomes by which we measure success. and place are, and also the psychological importance of them, according to how We can frame how people feel about they are perceived. We are responsible for workplace and the value it has in terms the workplaces we conceive, as much as of the psychological concept of place we are individually and collectively affected identity. This helps us further understand by our working lives within and as we move the important symbolic role it holds, through them. beyond the mere functional. Studies24 have shown that “When place identity is higher, Where is your current focus – do employees report more engagement in you focus on space as a function their work, more communication with (to be managed and controlled), their peers, and a stronger connection or place as an asset (to enable to the company”. The leadership role in communities of people)? understanding and helping people realise place identity cannot be underestimated. © 2018 BIFM | PAGE 18
EMBRACING WORKPLACE TO MOVE FM FORWARD WHY IS WORKPLACE IMPORTANT? For many organisations, workplace is a key part found an association between organisational of what defines them. Culture – the way people climate and corporate performance, across do what they do – is intrinsic to organisations a range of sectors9. Physical space has been because they are, fundamentally, groups found to impact on people both positively and or communities of people with a purpose. negatively, in a multitude of ways10. The same Physical workspace is where organisational goes for technology11. However, the value of activity takes place, both ‘on site’ and off-site, workplace is in viewing these components because everything happens somewhere. holistically and systemically – appreciating And technology, in its various guises, enables the impact that one component can have on organisations to carry out work activities another, for better or worse. that they would otherwise be unable to do. However, despite the centrality of workplace The importance of workplace can be to organisational activity, in many organisations articulated in both individual and organisational the management of workplace is deemed ‘non- terms. At an individual level workplace can be core’. As a result, workplace very often gets seen to play two key roles. On the one hand, it taken for granted. impacts the way people function, influencing whether or not they can work effectively. On Over the years much has been written about the other hand, workplace has a less tangible the importance of the cultural, physical and (but no less important) symbolic impact on technological components of workplace – people, affecting how they feel about their although these components have tended to work and/or organisation, including the degree be considered separately. For instance, whereas to which they feel valued and trusted. This researchers in the built environment have symbolism is one of the reasons why workplace tended to focus on the impact that physical is often such an emotive issue. space has on people and organisations, those working in business and management fields have been preoccupied with culture and organisational climate. Similarly, technology has its own body of research. It’s rare for these domains of knowledge to overlap. The importance However, what is clear from decades of research is that each component of workplace of workplace can is important. Researchers have consistently be articulated in both individual and organisational terms © 2018 BIFM | PAGE 19
EMBRACING WORKPLACE TO MOVE FM FORWARD At an organisational level the idea that them may not be as clear-cut as we might first workplace can be a lever for strategic assume15. The second reason concerns the advantage is by no means new, but it’s one that difficulty of objectively measuring productivity, many senior leadership teams still fail to act particularly in knowledge-based organisations, upon. A recent report by Leesman, based on and the fact that such measures tend to be data from over 2,000 workplaces, concluded context specific. “… that organisations are not getting what they should from their corporate workplaces.” The difficulty in making a connection between workplace and productivity could be used The report pointed to a range of reasons for this as reason for not investing in workplace (i.e. situation, including poorly informed decisions you can’t manage what you can’t measure). about the physical, cultural and technological However, the reality is that productivity – aspects of workplace. For instance, there’s however it might be measured – is only one often an assumption that new workspaces will of many reasons why workplace is important. automatically yield performance improvements As the Stoddart Workplace Advantage irrespective of culture and technology12. report found in 2016: “…all roads lead back to workplace – whether in projecting Any discussion of the importance of workplace brand values, reflecting purpose, changing eventually leads to the issue of productivity. behaviours or underpinning employee The word ‘productivity’ is now ingrained engagement.” in the language of business and work13, although some influential economists have Different authors have encapsulated the begun questioning the concept14. The notion importance of workplace in different ways. For of productivity can be problematic for two instance, architectural practice DEGW (1971- reasons. The first is the need to distinguish 2009) popularised the three ‘E’s of efficiency, between productivity at an organisational effectiveness and expression, a model that has (enterprise) level and productivity at an recently been developed further by workplace individual (employee) level – the link between strategist and author Neil Usher in his recent book ‘The Elemental Workplace’16. This new model is included in this report for you to use. Productivity – however it might be measured – is only one of many reasons why workplace is important © 2018 BIFM | PAGE 20
EMBRACING WORKPLACE TO MOVE FM FORWARD KEY MESSAGES Many organisations fail to recognise ‘Productivity’ is a nebulous and how important workplace is – they overused concept that requires take it for granted careful and specific consideration Workplaces are not neutral – they The importance of workplace can have a positive or negative impact on be framed in terms of six factors: people and organisations efficiency, effectiveness, expression, environment, ether and energy © 2018 BIFM | PAGE 21
EMBRACING WORKPLACE TO MOVE FM FORWARD CONVEYING THE IMPORTANCE OF WORKPLACE The six-factor framework below is from Neil commitment and advocacy. Done badly, it can Usher’s ‘The Elemental Workplace’ and is based push people away. Expression is much deeper on the three factors of workplace strategy – an idea than simply the flagpoles on the lawn efficiency, effectiveness and expression – made - it extends to all aspects of the workplace, famous by architectural practice DEGW. Three including the services provided and the additional factors have been added to the behaviours of those providing them. original three: environment, ether and energy. Environment concerns the impact that Whilst these six factors are presented as distinct, workplace has on society and our planet. in reality they influence each other, both The impact that a workplace has on the positively and negatively. environment helps to shape peoples’ perceptions of an organisation and can Efficiency is about achieving economical demonstrate and encourage collective and/or flexible use of space and ensuring commitment to our planet. Strategies for everyone takes the cost of space and its mitigating the environmental impact of services seriously. It can be measured in terms workplace include the use of sustainable of spatial efficiency (the amount of space construction materials, ethical sourcing policies occupied, the density to which it is occupied, and reducing energy performance in-use. and the degree of utilisation) or cost efficiency (the aggregated cost per unit of space and Ether is the digital space that organisations cost per person). Efficiency must be factored exist in. Online – ‘in the ether’ – workplace into workplace decisions because it impacts on is held accountable for what it does and an organisation’s bottom line - but efficiency says through the stories that people tell needs to be balanced with the other factors about it, especially on social media. Peoples’ below. experiences of their workplace are part of the digital personality and brand of an organisation. Effectiveness is the degree to which the Alongside expression and environment, workplace enables its occupants to perform at ether is where workplace can make a major their best. It goes hand in hand with efficiency, contribution to advocacy and the reputation of but push efficiency too far and effectiveness an organisation by showing how it cares for and will be negatively impacted – and vice versa. values its people. A great (or terrible) workplace Effectiveness can be harder to measure in is rarely a secret. some contexts; however, this doesn’t mean it is less important – a trap many organisations Energy is about the power of workplaces fall into. An effective workplace is simple and to inspire, energise and motivate people. intuitive to use, allows its occupants to work A great workplace can boost the energy together or alone, creates the opportunity of an organisation through its functionality, for connection, inspires and motivates, and amenities, technology and services. It can enables learning and development. promote behavioural choices that enhance personal welfare. Equally, a poor workplace Expression is about the symbolic role of can consume an organisation, negatively workplace. Workplaces reflect and represent impacting on performance and engagement. their organisations. Done well, a workplace The idea of energy extends beyond wellbeing draws people in, reinforces purpose as it is directly related to the other five factors, and mission, and creates loyalty, pride, particularly effectiveness. © 2018 BIFM | PAGE 22
EMBRACING WORKPLACE TO MOVE FM FORWARD The six factors can be used as a thinking tool to Try using this tool to appraise your own stimulate discussion and debate about what’s organisation’s approach to workplace. really important to an organisation, and to Consider the following questions: highlight gaps in awareness. Most organisations consider some of the six factors when making How does your workplace measure decisions about their workplace, but few up to the six factors – what are its organisations consider them all. How much strengths and weaknesses? more valuable could our workplaces become if How do you currently measure the they did? performance and impact of your workplace? Which of the factors do you have useful information about? Which of the factors reflect your organisation’s priorities? Is this a sustainable approach? Overall, is your workplace impacting your people and your organisation positively or negatively? Does workplace appear to be core to your organisation’s success? © 2018 BIFM | PAGE 23
EMBRACING WORKPLACE TO MOVE FM FORWARD WORKPLACE HAS ‘CORE’ VALUE It would be hard to work in FM and be unaware keep FM ‘in its place’ – away from leadership of the terms ‘core’ and ‘non-core’. They are teams, and with a largely operational remit. typically used to distinguish between activities We can see the impact of this in the research that are central to an organisation’s business data, where there was a strong sense that FM and those that are considered peripheral. needed to up its game and be more strategic. Non-core has become part of the language used to describe FM and has therefore become Yet we only need to turn to, as one example, ingrained in FM’s culture. It is also a key part of a modern hospital and the reality of infection the mechanism through which the FM industry control, to upend any notion of keeping core grows through outsourcing. (healthcare) and non-core (for our FM purposes the healthcare environment) functions distinct. The argument goes something like this: Managing infection control is so integral to FM, in its non-core capacity, supports an healthcare, and the challenge so significant and organisation’s core business functions. But, pervasive, that the boundaries of core and non- from an FM service provider perspective, core begin to blur. The distinction becomes a client’s non-core FM is its core business, too black and white. By keeping functions apart because they specialise in it. So, the business that need to be working together, it can hinder sense to outsource FM becomes doubly rather than help. convincing – an organisation can focus on its business priorities, and FM can be delivered by So where does this core and non-core the experts. rhetoric come from? And by returning to first principles, can we reconsider it? In ‘back to the future’ (below) we explain how the birth Whilst the ‘non-core’ narrative of FM was underpinned by new strategic helps the FM industry grow, it also management theory. We can use two such theories here to explore and reconsider the serves to keep FM ‘in its place’ – core/non-core relationship. away from leadership teams The first theory is a famous strategic management tool from Michael Porter. However, there is also a less comfortable The ‘value chain’ was designed to consider counterpoint to this position. Whilst it helps strategic capability. Almost always shown FM grow, some would say that the core/ diagrammatically it shows two types of non-core language has inadvertently become organisational activity. Primary activities are judgmental, even divisive. Non-core is typically directly related to the creation or delivery of perceived to be less valuable than core, which the product or services. Support activities makes it a more likely target for economy- enable this to happen. The premise of course focused challenges and cost-cutting. is that they are all essential to success, but all require careful consideration of cost and value. The overall outcome of both of these elements is that whilst the ‘non-core’ narrative helps the FM industry grow, it also serves to © 2018 BIFM | PAGE 24
EMBRACING WORKPLACE TO MOVE FM FORWARD MICHAEL PORTER’S VALUE CHAIN (1985) This is where the second theory comes challenging economic times. Colleagues into play. In 1990, Prahalad and Hamel became customers as service providers wrote an influential article about ‘core emerged with new capabilities that allowed competencies’: the collective things that them to package-up and deliver into distinguish an organisation in a marketplace. organisations functions that had previously All organisations have different attributes, in been delivered in-house – FM included. the form of knowledge, skills and techniques, but competencies that provide significant So, if FM is cast as non-core, what about business advantage and are hard to imitate workplace? An organisation cannot exist add the most strategic value. Such core independently of its culture, because competencies are to be nurtured and an organisation is – put simply – people protected. According to this theory, other with purpose. Furthermore, people in an competencies are deemed non-core and organisation are always working with something can legitimately be considered for alternative (technology), somewhere (in physical space). delivery methods, such as outsourcing. From this perspective, we can consider workplace as core - integral to all activities, both In hindsight, when you look at these theories primary and support. Progressive organisations together, it is easy to see how support recognise this and invest in their people, functions, including FM, became conflated technology and workspace. with non-core, for better and for worse. By the early 1990s the notion of ‘core competencies’ drove businesses to divest themselves of non-core activities during © 2018 BIFM | PAGE 25
EMBRACING WORKPLACE TO MOVE FM FORWARD WHAT DOES WORKPLACE MEAN FOR FM? One of the key objectives of the research was However, it’s also understandable given that to explore the relationship between FM and many of the FMs who responded to our survey workplace. It’s often forgotten or ignored felt that their work wasn’t valued, understood that workplace played a fundamental role or respected. in the early development of FM and, despite the relationship weakening in the intervening The research found that FM continues to have years, workplace has the potential to play a problems with its identity and status. People critical role in its future. However, that role is from outside of the profession (and many by no means inevitable. As well as presenting of those within it) saw FM as being primarily opportunities, workplace also poses a number operational, associating it with ‘low value’ work, of challenges for FM. irrespective of how necessary such work might be for the health, compliance and functionality It’s clear that some people see workplace of the organisation. Describing the FM as a vehicle for raising the profile of an FM profession as ‘operational’ is not to diminish the profession that has for decades struggled to value of (and need for) the work being carried get ‘a seat at the top table’ and has repeatedly out. Indeed, many FM practitioners old and been told that its route to the boardroom will new are tremendously proud of what they do, come from being ‘more strategic’. This line and the role they play in organisations17. But, if of thinking is pervasive in the profession, with the research findings are in any way reflective of seventy-nine percent of survey respondents the views of the broader FM profession, there is agreeing that “FM needs to be more strategic”. a clear desire for FM to raise its profile. OPPORTUNITIES AND CHALLENGES THAT WORKPLACE PRESENTS FOR FM Opportunities Challenges FM will need to collaborate more FM will need to collaborate more with other workplace functions with other workplace functions The potential for FM to be a unifying FMs will require new skills and function for workplace provision competencies Workplace is a vehicle for raising The risk of FM being side-lined in a FM’s profile (status) workplace ‘turf war’ Workplace can provide FM with FM will need to be better at clarity of purpose (identity) speaking the language of business Workplace is a way of FM attracting Accepting that workplace does not and retaining talent equal workspace (and buildings) © 2018 BIFM | PAGE 26
EMBRACING WORKPLACE TO MOVE FM FORWARD It would be hard to disagree that, for people Putting more of an emphasis on workplace may outside of FM, the term ‘workplace’ is more also better reflect the work of the many BIFM evocative than ‘facilities management’. Anyone members who work ‘client side’ and are ultimately in FM who has ever tried to explain what they engaged in managing at least the physical do knows this. Again, this isn’t to belittle or component of workplace. In the words of one FM, devalue FM but there is an opportunity to embrace workplace as a way to realise a more “Workplace is FM’s way of helping the business business-relevant version of FM. Whereas FM is to understand the value of its services.” often concerned with the means (the supply However, as we have explained above, because of operational services), workplace implicitly some facilities managers still see workplace solely focuses on the ends (enabling strategic business in terms of the physical environment, there is a risk performance). The archetypal view of FM could of FM just paying lip service to workplace rather be summed up, as one participant explained, as than genuinely understanding and embracing it. “… all the essential stuff that is really The challenge here is that reimagining FM’s remit important that no-one else wants to do. will require a substantial shift in mindset for some Not desperately sexy.”18 facilities managers. It will also require them to collaborate more with their counterparts in other In contrast, articles about workplace appear organisational functions19, and more broadly within frequently in the mainstream media and the workplace supply chain. prominent business publications such as the Harvard Business Review. There is evidence to suggest that FM is beginning to recognise a potential workplace-related remit The current profile of FM also directly impacts beyond its traditional physical domain. The majority the recruitment and retention of talent into of BIFM members in the research saw the role the profession. It’s telling (but not surprising) of FM as being more about enabling work than that only six percent of survey respondents said managing space. This points to an opportunity that they had always planned to work in FM. for FM to assume a unifying or leadership role, Despite a range of positive initiatives, FM has bringing together the different elements of yet to become a career of choice for school workplace management that have traditionally leavers or graduates, which means that there is operated in silos. That’s not to suggest that FM a lack of younger, educated people entering an should become directly responsible for the cultural ageing profession. In the same way that some and technological components of workplace, organisations use workplace to attract and retain but the research showed a strong sentiment talent, the language of workplace might be a that management of the workplace needs to be useful vehicle for FM to communicate with and better integrated – particularly in terms of the appeal to a broader and younger audience. relationships between FM, HR and IT functions20. For people outside of FM, the term ‘workplace’ is more evocative than ‘facilities management’. Anyone in FM who has ever tried to explain what they do knows this © 2018 BIFM | PAGE 27
EMBRACING WORKPLACE TO MOVE FM FORWARD FM was seen to have the breadth of knowledge and experience to fulfil a unifying role in the workplace, however assuming a The majority of BIFM members leadership role also creates another challenge in the research saw the role of for the FM profession. FM as being more about enabling In the words of one BIFM member work than managing space “The challenge is many people in FM do not talk the language of their own organisations, nor do they really understand and such training is clearly essential if the people how FM can support and improve the working in the FM industry are to have the organisation’s corporate objectives.” necessary skills to do their jobs effectively. But as the American futurist Daniel Burrus points out, Hence, a potential risk for the FM profession “You train people for performance. You educate is that if it doesn’t become better at speaking people for understanding.” Training, he argued, the language of business, other professions “does not provide the depth needed for creative will assume the workplace leadership role and problem solving and innovation”. A leadership relegate FM to the role of building manager. As role in workplace will demand such skills because one respondent argued: it will involve thinking more holistically about the different components of workplace and how “FM must take the lead and join the dots!” they interact. There was also a feeling that if FM is to assume a workplace leadership role the profession as whole will need to be better educated. The FM industry has traditionally put more of an emphasis on training rather than education, HOW RESPONDENTS SEE THE ROLE OF FM © 2018 BIFM | PAGE 28
EMBRACING WORKPLACE TO MOVE FM FORWARD Assuming a leadership function in workplace FM waits for the world to change around it, does not mean waiting for organisational resulting in a situation where facilities managers restructuring or the appointment of a ‘chief become more marginalised, divorced from the workplace officer’. The FM profession has core business. However, such an outcome is by an opportunity to be proactive and lead by no means certain: in the words of management example by demonstrating value through philosopher Charles Handy, “The future is not action, for instance by putting an emphasis on inevitable. We can influence it, if we know what placemaking in the workplace and adopting we want it to be.” 21 the role of ‘enabler’. The alternative is that KEY MESSAGES Workplace is an opportunity to raise Workplace challenges ‘traditional’ the profile of FM by demonstrating notions of FM as being solely about business impact buildings and associated services Workplace is a way of enhancing the Assuming a workplace leadership FM profession’s identity and status, role will involve proactive action and and attracting new talent into FM leading by example © 2018 BIFM | PAGE 29
EMBRACING WORKPLACE TO MOVE FM FORWARD BACK TO THE FUTURE – A BRIEF HISTORY OF FM AND WORKPLACE Ever wondered why it’s so challenging to get to the back bench in terms of importance. FM and workspace on to the agenda at board level? Surely there’s more to it than core and Now, let’s fast forward to the birth of FM. non-core rhetoric? The problem has its roots Pinning down very early use of the term FM is in two influential developments in the history tricky, but one line of evidence concludes that of workplace and FM. it was coined in response to the introduction of increasingly sophisticated office systems The first clue to the relative devaluing of furniture and the computer terminal in the workplace in many organisations stems from 1970s. The 1980s are regarded as the early the Hawthorne Works experiments that years of ‘facility management’. FM’s growth took place in the 1920s, almost a century was promoted by newly formed professional ago. The Western Electric factory complex bodies, driven by turbulent economic in Illinois played host to many social science conditions and government outsourcing, experiments, producing huge volumes of underpinned by new strategic management data. But one particular study that took place theory, and fuelled by client organisations in the relay test assembly room stands out seeking to restructure to increase their in terms of its influence. A group of female performance and profitability. production line workers were being studied by male researchers, who were initially exploring Initially there were two competing notions the impact of different workspace conditions, of FM. One use was to describe outsourcing such as lighting and temperature levels, on (primarily of computing, but also other office worker productivity. services). The other focused on the workplace, and offices in particular. So even at this early We might expect some lighting levels or stage we can see evidence of FM as “expert temperatures to be more conducive to higher workplace management, with or without productivity than others. However, somewhat IT” 22 alongside FM as service outsourcing. counterintuitively, the studies revealed Again, though we can see a fork in the that whatever the conditions, employee road: as the FM industry has grown through productivity remained high. The only variable the outsourcing and commoditisation of that seemed to make a difference was the operational services, the FM profession has amount of attention the female workers inadvertently drifted away from workplace. received from the researchers. This led one of the researchers, Australian psychologist Elton So, armed with the wisdom of hindsight, Mayo, to conclude that ‘human’ factors were by raising FM’s awareness of our modern far more important than ‘environmental’ ones. conception of workplace as multifaceted (and with a remit far wider than that of For many, this was a seminal step in the birth corporate offices) can we capitalise on the of the human relations movement. But it can opportunity to revisit FM’s own original also be seen as a fork in the road: by choosing intent? Is a workplace focus an opportunity to embrace the value of ‘human’ factors, to acknowledge the value in all forks in the workspace inadvertently became devalued, historical road, including those less travelled? subsequently relegated by many organisations © 2018 BIFM | PAGE 30
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