FACILITIES MANAGEMENT & BUSINESS MODELS: HOW WILL I BECOME BETTER?

Posted: January 19, 2016 in Uncategorized

Business models cannot materialize without appreciating the concepts of facilities management which is continuous improvement through constant adaptation and empowerment. Facilities management and business models are two different terms; however, similar, simply because these two refer to the entirety of the company and how will it be successful. It was once discussed and made realized to us by Mr. Louie San Juan that “facilities management is everything and pertains to the company itself!” Likewise, the business model of the organization becomes the guideline in distinguishing the company in its own unique way.

 

First, let us relate the business model to facilities management. The business model serves as the guiding principle of how an organization should operate. As Joan Magretta (2002) noted in her article entitled Why Business Models Matter:

“A business model’s great strength as a planning tool is that it focuses attention on how all the elements of the system fit into a working whole.”

As reflected in the line “how all the elements of the system fit into a working whole”, business models observe the full picture of the business. In relation to facilities management, business models similarly look into all aspects of the company: the products/services it provides, its available resources, the market and consumers, the industry and the competition, etc.

 

Second, business models of the companies create differentiation – competitive advantage, from which the company is identified for its “trademark” of doing things. As Chris Zook and James Allen (2011) conversed in their article entitled The Great Repeatable Business Model:

“The power of repeatable model lies in the way it turns the sources of differentiation into routines, behaviours, and activity systems that everyone in the organization can understand and follow…”

The statement above show how repeatable business model works. It is about focusing on the company’s competitive advantage and its continuous improvement. Making it materialize for the organization, means adapting and incorporating it to the culture of the company.

 

Lastly, an effective business model is not created and implemented by CEOs alone; rather, it is realized and achieved through the collective effort of all the members in an organization. As Chris Zook and James Allen (2011) discussed in their article entitled The Great Repeatable Business Model:

“When people in an organization deeply understand the sources of its differentiation, they move in the same direction quickly and effectively, learning and improving the business model as they go.”

Human resource is one of the most important factors in running a business. Without the appropriate talent, the CEOs’ 3 boxes as discussed by Vijay Govindarajan and Chris Temble in the article entitled The CEO’s Role in Business Model Reinvention (“Manage the present, selectively forget the past, create the future”) will not materialize. Hence, by empowering your employees, letting them grow by knowing what their purpose and contribution to the organization gives them a sense of importance to what they are doing for themselves and the company. This will eventually result to the success of the firm.

 

To sum it up, business models cannot materialize without appreciating the concepts of facilities management which is continuous improvement through constant adaptation and empowerment. This is through: (1) looking into all aspects of the company and making it work; (2) realizing company’s differentiation by integrating it to the philosophy of the company; and (3) empowering the people which comprises the organization. No matter how good the business model nor the CEO of the firm, it will not materialize, if employees do not appreciate it and implementation is not observed accordingly. Likewise, the practice of facilities management can only be observed by knowing what and for whom the company stands for. In the end, both the facilities management and the business model make everyone thinks: “How will I become better?”

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