What does top management expect from Facility Managers during recession?
If this recession goes on like this the senior management will want facility managers to cut costs and add value simultaneously.
The trick to doing that is to focus on corporate outcomes, not on faciltiy operations outcomes. Facility Managers have to have business acumen, they have to understand the financials, and have to know how to manage relationships internally.
Some examples on: How add value while cutting costs?
• Facility Managers have to optimize to the fullest when it comes to space. Getting rid of unnecessary space is the fastest way to cut facility-operational costs. But cutting down too much space could leave the corporation ill-positioned when the economy rebounds. A lot of corporates are concerned that they’re going to cut too much. There has to be some flex in how you manage your property portfolio.
In past downturns, corporate facilities were managed to balance “value creation” strategies to improve operational efficiency with “value protection” measures to cut costs. Greater use of alternative work strategies such as hotelling or telecommuting helped to maintain this balance because they achieved both goals.
• Corporates continue to emphasize measures to reduce their environmental impact, but Facility Managers are more sensitive to costs than, say, a couple of years ago. The idea of paying a green premium is harder to sell; so is the cost to get LEED (Leadership in Energy and Environmental Design) standard certified, though LEED remains the touchstone for green building initiatives. Instead, there’s a new focus on energy efficiency.
• In the 1991-92 “depression,” as the Urban Land Institute called that downturn, one telecom took the opportunity to buy property at 50 cents on the dollar. The same thing may happen in this recession period too, with corporates willing to own a higher percentage of their space than in the past, when the industry average was about 60 percent leased space.
Hope this info is useful….I look forward to give you more related information….
Happy Facilities Management,
Team FacilitiesDesk
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