In
1993, I had been offered a position in one of the Caribbean’s largest
architectural firms; but two things bothered me. First, they had made
their first offer prior my becoming a project coordinator in the
Jamaican Government service; and this was rescinded shortly after,
because the construction industry had contracted. Secondly, I
intuitively knew that the number facilities being constructed at the
time by financial institutions, was not sustainable. Unknowingly, my
environmental scanning had rightly detected a threat to the construction
industry, and my prospective job. Referring to the period, Economist
Wilberne Persaud described businesses as being “driven more by ego than
economics”. What would later transpire is an example of what can happen
when image precedes good business sense.
Despite
the perceived risk, I accepted the offer. The largest project in the
office was a building for a large financial institution, perhaps the
firm’s largest client. I was informed that the building was never
designed for the current site, but the client had changed the site prior
to completion of the drawings. Then, a director met a town planning
official at a cricket match, and was assured that approval could be
given for two additional floors. So, the director, without analysis,
gave instructions for the architects to add them. The design was
revised and building constructed. Shortly after completion, the
building and the institution’s financial assets were sold to other
financial institutions.
This
case study of a big business, serves to illustrate the risk of making
real estate decisions without reference to your strategic objectives,
because facility planning is an important business decision that needs
to precede image. According to the International Facility Management
Institute:
A
strategic facility plan is a … two –to-five year facilities plan
encompassing an entire portfolio of owned and/or leased space that sets
strategic facility goals based on the organization’s strategic business
objectives. The strategic facilities goals, in turn, determine
short-term tactical plans, including prioritization of, and funding for
annual facility related projects.
Every
decision made in business planning has a direct impact on an
organization’s real estate assets and needs. Strategic facility
planning involves four steps: understanding the values and goals of an
organization; analyzing its long-term objectives; planning short-term
measures to achieve them; and finally, implementing them. Long-term
needs should be reviewed annually, or earlier if necessary. Our
financial institution got caught up in what Persaud called an ‘edifice
complex’. So when the real estate market collapsed, so did they.
Let
us look at a good example of strategic planning. This example is a
500-seat church not far from the building previously referred to. In
1999, I was engaged as project manager for the construction of a
multi-purpose building to be attached to the church. Subsequently, I
was asked to head their building committee. We understood that there
were three major problems linked to the church’s rapidly expanding
congregation: the need for more space for Sunday services, Sunday
school, and parking. An alternate site was sought. Owners of the
adjacent property were not interested in selling, but a government
office beside them were.
The
church called all committees to participate in a SWOT analysis.
Subsequently, we prepared seven long-term objectives summarized by the
acronym “PERFECT”: the “F” standing for the facility objectives. Next,
each committee planned how to meet the objectives. The building
committee proposed that the existing property be used for the Sunday
school and youth ministry; the government office converted for Sunday
services; and, the owners of the lot between re-approached for sale of
the property to be used for additional parking. The government office
was purchased and converting to a 2,000-seat auditorium. The original
church used as proposed, and owners of the adjoining lot finally agreed
to sell their property; but, it will be converted to training
facilities: which, by that time, had outgrown the multi-purpose
building. All this took 14 years and is ongoing.
Let
us end by considering what happened to the architectural firm. When
businesses fail, especially large businesses, their stakeholders are
negatively impacted. The architectural firm had to downsize, making
most of its staff redundant. Strategic facility planning was needed to
determine how their facility could achieve a commensurate reduction in
overheads, such as electricity to power lighting and air-conditioning.
As for me, that which I feared had come upon me. I was made redundant.
However, the multi-purpose building was one of my first projects as a
new business; and, the path was charted for provision of strategic
facility planning services.
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