The single most important factor in developing a best-in-class facilities management program is hiring and retaining the right people – and placing them in a structure designed to meet the future demands of the organization.  Assuming we all agree on that front – the logical next question becomes: How do you do this?  What should you do first?  Define a team structure, or hire the right people?  The reality, as I’m sure you know, is that you have to do both at the same time.

The fifth and final component of the Strategic Asset Management (SAM) framework, Organizational Structure, is the keystone element that ties the entire framework together to make the organization hum.  Whether you are a new leader inheriting a team or an incumbent leader exploring the need to transform an existing department, this article will help the facilities executive navigate organizational structure opportunities with five tips and tricks to move an department forward.

One – Understand current state

Someone, at some point, created the current organizational structure.  The vast majority of the time, this was done deliberately, with good reasoning and sound judgement.  It served a purpose.  It solved a problem.  And it probably still works relatively well.  It is critical to take the time to understand how and why things were done in the past and how they are working today.  Before exploring potential changes to a structure, ask and find answers to the following questions:

• Why was the current structure implemented?
• Was the current department structured to fit in neatly with other departments?  Have those relationships changed?
• Was the structure built around key people, processes or systems?  If so, what are they and are they still valid?
• What skillsets and capabilities exist today?  Are there any gaps as you look to the future?

Answering these questions will position you well to evolve from where you are – to where you need to go.

Two – Develop a compelling vision – a future state

Change is constant, if not accelerating.  Determining the trajectory of the organization as a whole is a key next step in shaping the future needs of the facilities department.  Once that trajectory is clear, it is possible to create an updated and compelling vision for the facilities department that aligns with, and supports, the bigger picture.

In a past role, I inherited a high-functioning facilities department that was structured appropriately around aggressive organizational growth – and the additional workload that comes with that growth.  When that growth slowed (and became stagnant), it radically changed our focus and required a very different vision and structure.  We had to adapt.  What worked in the past was not going to work into the future.

Key considerations:

• Does the organization need to prepare for scalable growth, stable operations or contraction?
• Is the organization trending towards insourcing or outsourcing?
• Is the organization trending towards centralization or decentralization?  Consistency or autonomy?
• Does the current facilities department have a clear purpose, mission, vision and guiding principles that align with corporate, or do these items need to be created or reinvented?
• What are the key objectives of the facilities team going forward?  Reducing capital and expense?  Improving level of service?  Addressing compliance issues?
• Will the future of the organization require new and different skillsets?

The answers to these questions will help shape the future vision of the department.  The vision should be simple and convincing – develop the right amount of support with internal and external leaders before launching.

Three – Determine core and support functions – build the org chart

A best-in-class facilities department requires access to expertise in many areas, including: maintenance operations, engineering, financial management, vendor management, project management, procurement/sourcing, analytics and reporting, Information Technology (IT) and Human Resources (HR).  When creating an organizational structure, one must first assess how much support is required in each of these areas and then determine what skillsets should be embedded in the facilities organizational structure versus leveraging other internal departments or external vendors/consultants to provide that expertise.  Critical, core functions should be embedded in the department, while non-critical support functions should be engaged from others as required.  There is no solid formula for this analysis as it is a unique challenge for the current state of any organization.  It must be customized.

Here are a few suggestions to help navigate this analysis:

• Capabilities required to manage and meet the core objectives of the department should be internalized.  If you are working to drive down expense – think carefully about building a capability around engineering, procurement and financial management.
• Capabilities that support the strategic advantage of the organization should be internalized.  If you are working to create a consistent brand from facility to facility – think about building process/program management capability
• Capabilities that are required, but only occasionally, should be outsourced.  If you operate a lot of parking ramps/garages – you probably don’t need a structural parking expert on staff.  Hire it out.
• If the organization requires a high level of branded and consistent customer service or an extremely fast response time, you’ll want to consider having that in-house.  Otherwise, outsource that function and build a top notch procurement and vendor management function.

Once you’ve determined the capabilities you need, focus on creating an organizational structure that has clearly defined job descriptions that are structured to align key responsibilities with the authority to make decisions that move the organization towards its vision.

Four – Create clarity and alignment for all stakeholders

Establishing a clearly defined and mutually understood vision is not a simple task.  An effective program needs to have a roadmap – a tool to help people understand the near and mid-term objectives and priorities that move you towards your long term vision.  Engage the team, and your “clients”, to help you develop this roadmap.  An effective roadmap should accomplish the following:

• Contain your mission, vision, core values and guiding principles.
• Differentiate the core day to day responsibilities of the department from the more strategic initiatives that move you forward.  Stated differently, the day to day “stuff” is core to what you do and doesn’t change from year to year, while your strategic initiatives have a start and end date with a defined objective and outcome.
• Don’t have more than 3-5 strategic initiatives in a given year.
• Ensure all teams involved in the strategic initiatives share the same priorities.
• Define a routine (monthly or quarterly meeting) to hold people and teams accountable for advancing each initiative.  Provide the right resources and eliminate roadblocks as necessary

It is extremely common for a team or department to have dozens of priorities – if this is allowed, the team will most likely accomplish none of them.  Keep the team focused and aligned on what’s most important.  Don’t stray from that focus.

Five – Build a culture of accountability

What matters most?  Results.  Building and maintaining a culture of accountability is critical for any organization.  Establish this culture early, and reinforce it often.  Here are ten steps to building and maintaining this culture (not mine, but they have served me well):

• Right person, right place, right time
• Clear understanding of what is expected
• Mutually understood consequences
• Detailed follow up plan
• Course correct when needed
• Be consistent
• Be involved
• Assume nothing
• Recognize performance
• If success doesn’t come, go back to step #1

Additional Considerations

Without support, a single leader will rarely be successful in driving change.  This includes building support up, down and across the organization.  Many books and articles are written around change leadership; here are a few points to summarize what you’ll read:

• Build support with key leaders – find and leverage advocates.
• Get your direct reports involved – let them develop the “how” associated with your vision.  Get them to take ownership.
• Identify your supporters and dissenters early.  Strategically influence your supporters to get others on board with the change.
• Don’t go too far too fast.  Using the analogy of a rubber band, if the leader is pulling the organization to far and too fast, it will break.  Make sure you take the time for the team to catch up.
• Watch for viruses – people that are indirectly influential in the department.  Those that are solid performers, yet both vocal and influential in a negative way.  Address these situations swiftly in ways that reinforce the new direction of the department.
• Keep it simple.  Repeat your vision over and over.  Motivate and empower staff.  Recognize behaviors that reinforce your vision.

What are you doing to drive organizational change in your multi-site facilities department?  Don’t be afraid to get support from the consulting world to help you define and implement your vision.  Engaging a 3rd party can be a great way to validate your vision and support your change management efforts.  EFS can help!