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Core Competencies for Federal Facilities Asset Management

In 1990, C.K. Prahalad and Gary Hamel introduced the concept of core competencies as a significant component of effective management. They defined “core competency” as an area of specialized expertise that is the result of harmonizing complex streams of technology and work activity (Prahalad and Hamel, 1990). As the concept has evolved, so has its definition, and it is now variously thought of as “the sum of learning across individual skill sets and individual organizational units” (Hamel and Prahalad, 1994); “aggregates of capabilities, where synergy is created that has sustainable value and broad applicability” (Gallon et al., 1995); and “a combination of complementary skills and knowledge bases embedded in a group or team that results in the ability to execute one or more critical processes to a world class standard” (Coyne et al., 1997).

In this study, the committee has defined core competencies as an organization’s essential areas of expertise and the skills base required for achieving its missions. The operational unit for which core competencies are being defined here is the facilities asset management division. The mission is specific to the organization (department or agency) for which the facilities asset management division provides support. Within the division, a facilities asset manager’s competencies include any skill, knowledge, behavior, or other personal characteristic that is essential for performing the required functions.

To help identify the core competencies required by such divisions through 2020 and beyond, the committee (1) reviewed relevant articles, publications, and reports; (2) conducted interviews and discussions with representatives of facility management professional organizations and reviewed organizational information; (3) reviewed higher education and professional development programs; and (4) interviewed federal staff. The information it gathered is summarized below.



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3 Core Competencies for Federal Facilities Asset Management In 1990, C.K. Prahalad and Gary Hamel introduced the concept of core com- petencies as a significant component of effective management. They defined “core competency” as an area of specialized expertise that is the result of harmonizing complex streams of technology and work activity (Prahalad and Hamel, 1990). As the concept has evolved, so has its definition, and it is now variously thought of as “the sum of learning across individual skill sets and individual organizational units” (Hamel and Prahalad, 1994); “aggregates of capabilities, where synergy is created that has sustainable value and broad applicability” (Gallon et al., 1995); and “a combination of complementary skills and knowledge bases embedded in a group or team that results in the ability to execute one or more critical processes to a world class standard” (Coyne et al., 1997). In this study, the committee has defined core competencies as an organiza- tion’s essential areas of expertise and the skills base required for achieving its missions. The operational unit for which core competencies are being defined here is the facilities asset management division. The mission is specific to the organi- zation (department or agency) for which the facilities asset management division provides support. Within the division, a facilities asset manager’s competencies include any skill, knowledge, behavior, or other personal characteristic that is essential for performing the required functions. To help identify the core competencies required by such divisions through 2020 and beyond, the committee (1) reviewed relevant articles, publications, and reports; (2) conducted interviews and discussions with representatives of facility management professional organizations and reviewed organizational informa- tion; (3) reviewed higher education and professional development programs; and (4) interviewed federal staff. The information it gathered is summarized below. 

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT FACILITIES MANAgEMENT COMPETENCIES LITERATURE The committee’s literature search centered on facilities management at a strategic level, where the practitioners would be considered as having professional standing. A common theme is that facilities asset management is evolving as a business management discipline and will not remain rooted in operational and cost-centric issues (Price, 2004; Rodgers, 2004). Markus and Cameron (2002) characterized the competencies of facilities management as follows: • Operational maintenance. A technical function concerned with maintain- ing the practical utility of the physical infrastructure to ensure that it sup- ports the core activity of an organization. • Financial control. An economic function concerned with ensuring the efficient use of physical resources by controlling costs. • Change management. A strategic function concerned with the forward planning of physical infrastructure resources to support organizational development and reduce risk. • User interfacing. A social function concerned with ensuring that the physi- cal infrastructure of work meets the legitimate needs of users within their organizational role. • Adocacy. A professional function that includes social responsibility for people in the workplace. Others predict that facilities asset management divisions will be staffed by knowledge workers, who are able to assimilate business, people, processes, and property knowledge in order to develop innovative facilities solutions (Nutt and McLennan, 2000). In this model, a resource-based approach described as “four trails to the future” provides a framework for evaluating the tensions that occur at the interfaces between the trails (Figure 3.1). A report by the Center for Construction Industry Studies (CCIS) found that the categories of knowledge and skills needed to manage work on projects from the owner’s side have changed dramatically (CCIS, 1999) (Table 3.1). Additional competencies identified in the literature can be categorized as follows: • Strategic management and business knowledge (Lopes, 1996; Hinks, 2001; Cotts and Rondeau, 2004). • Service management (Rodgers, 2004). • Human resources and people management (McGregor, 2000). • Performance measurement (PCA, 2000). • Procurement strategies (Price and Akhlaghi, 1999).

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT The Human Resource Trail The Finance Resource Trail PEOPLE BUSINESS • time flexibility • property investment • place flexibility • managing prop. assets • location variable The Professional Interface • managing facility costs EFFECTIVE COST CONTROL DEPLOYMENT The The Investment Skills Interface Interface The Business Information Interface The Information Resource Trail The Physical Resource Trail PROPERTY KNOWLEDGE • better investment • knowledge creation • knowledge utilization • physical modification The Property EFFECTIVE KNOWLEDGE Information Interface UTILIZATION MANAGEMENT The Task Interface FIGURE 3.1 The resource model of strategic facilities management. SOURCE: Nutt (2000). fig 3-1 replacement Another paradigm for facilities asset management divisions focuses on the need to be informed by clients to be able to deliver customer satisfaction and achieve best value for the resources expended. In Total Facilities Management (Atkins and Brooks, 2005), the authors list the key attributes for facilities manag- ers as follows: • Understanding the organization, its culture, and its customers and their needs. • Understanding and specifying service requirements and targets. • Brokering services among stakeholders. • Managing risk. • Managing contractors and monitoring their performance. • Benchmarking the performance of outsourced service(s). • Developing, with service providers, strategies for delivering service(s). • Understanding strategic planning. • Safeguarding public funds, where relevant.

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0 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT TABLE 3.1 Knowledge and Skills Required for Facilities Asset Management Divisions Category of Knowledge Skill Set Business Writing and managing contracts Negotiating Managing budgets and schedules Communication Coordinating/liaising Managing conflict Cultivating broad network of relationships Influence Mentoring Motivating Managing change Managerial Building teams Delegating Gaining political awareness/seeing the big picture Problem solving Continuously analyzing options/innovations Planning Considering all sides of issues, risk management Technical Understanding entire construction process Having multidisciplined knowledge of several areas of engineering Having information technology skills SOURCE: Adapted from CCIS (1999). • Developing in-house skills through education, training, and continuing professional development. FACILITIES MANAgEMENT COMPETENCIES IDENTIFIED BY PROFESSIONAL ASSOCIATIONS The committee also reviewed materials related to core competencies for facilities asset management published by professional associations, including the International Facility Management Association (IFMA), the Association of Higher Education Facilities Officers (APPA),1 the Building Owners and Man- agers Association (BOMA), the Institute of Real Estate Management (IREM), 1This organization was formerly called the Association of Physical Plant Administrators (APPA). When the name was changed to Association of Higher Education Facilities Officers, the acronym APPA was kept. See Web site at .

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT the Association of Facility Engineers (AFE), the British Institute of Facilities Management (BIFM), the Royal Institute of Chartered Surveyors (RICS), and the Facility Management Association of Australia (FMAA). Table 3.2 summarizes the definitions of facilities management from three international organizations and their related core competencies. TABLE 3.2 Facilities Asset Management Competencies IFMA BIFM FMAA Facility management is “a Facility management Facility management is “a profession that encompasses is “the integration of business practice that optimizes multiple disciplines to ensure multidisciplinary activities people, process, assets, and the functionality of the work within the built environment work environment to support environment by integrating and the management of their the delivery of an organization’s people, place, processes and impact upon people and the business objectives.” technology.” workplace.” Core competencies Core competencies Competency standards Leadership and Understanding business Use organizational management organizations understanding to manage Human and environmental Managing people facilities factors Managing premises Develop strategic facility Planning and project Managing services response management Managing the work Manage risk Operations and environment Manage facility portfolio maintenance Managing resources Improve facility performance Finance Manage the delivery of Real estate services Communication Manage projects Quality assessment and Manage financial innovation performance Technology Arrange and implement procurement /sourcing Facilitate communication Manage workplace relationships Manage change Focus Focus Focus Multidisciplinary Multidisciplinary activities Driven by business objectives profession Relationship between Coordinating management Functionality of the work built environment and function environment workplace Supporting business function Integration of resources Relationship between (people, place, and people and the technology) and workplace processes SOURCE: Then (2004).

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT Interviews with representatives of other professional facilities management organizations yielded similar insights into competencies. Looking at similar data, Warren and Heng (2005, p. 12) concluded that such similarities [bode] well for the continuing growth of the [facilities management] profession globally as a single discipline and for its recognition as a valuable contributor to organization’s profitability [sic]. The skills also reveal the very broad basis of facilities management practice, emphasizing the need for practitioners to obtain specific qualifications to enhance their knowledge and ability to perform in this competitive business discipline. REVIEW OF EDUCATIONAL AND PROFESSIONAL DEVELOPMENT PROgRAMS The committee also identified colleges and universities offering degrees and professional certifications in facilities management. The research included U.S. institutions and some international universities recognized by IFMA. Not all universities identified as providing facilities management courses were evaluated and included in the results. The committee’s research into educational programs in this country was conducted by reviewing information made available on the Web sites of facilities management programs and in academic syllabi. Where Web sites did not provide adequate course details, follow-up interviews were conducted. From this research, the committee developed a matrix summarizing competencies by institution and program. Table 3.3 lists core competency courses currently available in facilities man- agement educational programs. The programs include those that award B.S. and M.S. degrees and certificate programs. Check marks indicate that the educational program offers a course whose title generally reflects the listed competency or that the primary content of the course is similar to the corresponding competency. An argument can be made that the educational programs cover more competencies than are identified in the table. Some programs may in fact cover most or all of the listed competencies. For simplicity, however, the table is limited to primary course titles and objectives. IDEAS OF FEDERAL AgENCIESS ON COMPETENCIES REQUIRED FOR FACILITIES MANAgEMENT The committee also focused on the culture and needs of existing federal facilities asset management divisions. Briefings and interviews were held with representatives from the Department of Energy (DOE) and the Department of Defense (DoD), the General Services Administration (GSA), the U.S. Coast Guard (USCG), the Naval Facilities Engineering Command (NAVFAC), and the

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT TABLE 3.3 Core Competencies Based on Current Facility Management Educational Programs Quality, Innovation, Performance Measurement Building Systems/Const. Materialsb Project Management/Const. Mgmt. Cost Estimating/Quantity Takeoffs FM Intro/Fundamentals/Theories Human & Environmental Factors Strategic Planning/Organization Human Resource Management Space Planning/Interior Design Contracting and Procurement Leadership/Ind. Effectiveness Office and Furniture Design Future Issues/Trends in FM Operations & Maintenance Risk/Business Continuity a Energy Mgmt. and Utilities Environmental Issues/IAQ Code Compliance/Safety Construction Documents Finance and Accounting Marketing Management General Administration Asset Management Planning & Design Communication Technology - IT Real Estate Ethics/Law Leasing Associations • • • • • • • • • • • • IFMA • • • • • • APPA • • • • • • • • • • • • • • • • BOMI • • • • • • • • • • • • • • • • • • • • • • • RICS • • • • • • • • IREM B.S. degree programs • • • • • • • • • • • • • • • Brigham Young • • • • • • • Ferris State • • • • • • • • Cornell (also M.S. deg.) • • • • • • • • • • Wentworth Institute of Tech. • • • • • North Dakota State University M.S. degree programs • • • • • • • • • • Georgia Tech • • • • • • Texas A&M • • • • • • • Arizona State University - FMRI Certificate programs • • • • • • • • • • • • • • • • • George Mason • • • • • • • • • • • UC Berkeley • • • • • • • • • • • • UC Irvine • • • • • • • • • • • • • • University of Washington International programs • • • • • • • • • • Hong Kong Polytechnic • • • • • • FHS Kufstein Bild. (Austria) • • • • • • • Hanze University (Netherlands) Several universities offer FM specialties within the Building Surveying curriculum (Leeds, UWE, Reading, Manchester, University College, etc.) United Kingdom (Various) Textbooks APPA FM Manual c • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • The FM Handbook d NOTE: Bullets indicate only core competency course title and primary content. Additional competen- cies may be covered in each course but are not designated in the matrix. Other topics include engineer- ing systems processes, sustainability, CADD, building safety, EH&S, benchmarking, cost estimating, property development, public FM. aIncludes disaster recovery and emergency preparedness planning. bMay include design, evaluation, operation and maintenance of HVAC, MEP, FL&S, security, con- veying, structural, and waterproofing systems. IFMA-recognized programs. cAPPA, Facilities Management: A Manual for Plant Administration, 2nd Ed., 1989. Table 3-3 reduced to column widrth (6 x 9 inch format) dD. Cotts, The Facility Management Handbook, New York: AMACOM, 1999. the text has been elarged from 3.7 points to 4.4 points At this size the bullets show up better than check marks

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT U.S. Army Corps of Engineers (USACE). Emerging from these discussions were three issues of critical importance: • Defining the skill sets needed to build leaders. • Developing a flexible model for facilities asset management divisions to meet differing organizational missions (one size does not fit all). • Identifying requisite business skills and general competencies. Further discussions revolved around the future of facilities management as a profession and the skills that would be possessed by an ideal facilities asset manager. When comments amassed in the interviews were carefully considered, they seemed to suggest that a good federal facilities asset manager would have the following attributes: • A financial perspective and understanding the time value of money, facili- ties, and other resources. • Leadership abilities and initiative and ability to manage risk and measure performance. • Understanding of customer requirements. • Good decision-making capability and ability to plan and to focus on outcomes. • Understanding of budgeting and allocation of resources. • People and communication skills. • A technical background in, or understanding of, building systems. • Ability to translate technical issues into business requirements. • Ability to assess and value real estate. • Technological savvy. • Program and project management skills. One of the more established and comprehensive federal government edu- cational programs evaluated was prepared for the facilities engineering (FE) career field by the Defense Acquisition University (DAU). The DAU provides assignment-specific continuing education courses for military and civilian acquisi- tion personnel within the DoD. Its mission is to provide federal workers with the tools and knowledge to make smart business decisions. The DAU’s development of the FE courses involved the identification of competencies, performance outcomes, learning objectives, and assessments. The learning objectives of the intermediate level, FE 201, include these: • Program management, • Contracting, • Design and construction, • Financial laws, regulations, and procedures,

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT • Real estate acquisition, management, and disposal, • Environmental requirements, • Comprehensive and project planning, • Managing sustainment, • Restoration and modernization, and • Contingency engineering processes. The advanced course, FE 301 (not yet implemented) (Baecher et al., 2005), identifies competencies required of federal facilities asset managers, who must be able to • Contrast approaches to FE and the facilities life cycle across the military services, both in concept and in practice. • Assess strategies for real estate acquisition and disposal. • Defend a funding and resource strategy to support FE-related mission requirements. • Judge the adequacy of specific program documentation, including docu- mentation for acquisition baseline, risk management plan, budget esti- mates, acquisition plan, total ownership cost for the FE life cycle, antiter- rorism force protection, including commercial best practices to support the facilities life cycle. • Distinguish among common cost, schedule, and quality risks; select appro- priate risk handling options and metrics. • Defend an acquisition plan that supports an FE mission requirement. • Adapt non-DoD government and industry best practices for inclusion in DoD FE. • Evaluate total ownership cost (TOC) for the FE life cycle in an acquisition strategy. • Develop effective controls to manage variations from baseline plans for cost, schedule, and quality in facilities life-cycle activities. • Evaluate responses to external interventions in facilities life-cycle activi- ties, including those by local stakeholders, congressional delegations, the public, and others. LEADERSHIP SKILLS One of the critical issues identified by federal staff was defining the skill sets needed to build leaders. Building leadership skills has also been identified as a key ingredient for a successful transformation of all federal programs and practices (Figure 3.2). Testifying before Congress in 2005, David Walker, comptroller of the United States, identified committed, persistent, consistent leadership as a transforma- tional factor in meeting 21st century challenges. He also said that leadership

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT Transformation High-Performance Current State Organizations Hierarchical Summary of Key Flatter and more horizontal Stovepipe Practices Matrixes Process and output- √ Committed, Result-oriented oriented persistent, and Extremely focused Recycle behavior consistent Leveling technology Inward focused leadership Sharing knowledge Avoiding technology √ Strategic planning Managing risk Hoarding knowledge √ Organization alignment Forming partnerships √ Integrated performance Avoiding risk Employee empowerment management systems Protecting risk √ Modern human capital Employee direction approaches √ Effective communications Leadership Focus Management Focus √ Employee involvement FIGURE 3.2 Cultural change and key practices for meeting 21st century challenges. SOURCE: Adapted from GAO (2005). new 3-2 must set the direction, pace, and tone for the transformation and should provide sustained and focused attention over the long term (GAO, 2005). The Office of Personnel Management (OPM) has developed a set of execu- tive core qualifications (ECQs) that are required for entry to the Senior Executive Service. The ECQs are used by many departments and agencies in selecting per- sonnel for management and executive positions, then managing their performance and developing their leadership. The ECQs are intended to define the competen- cies needed to build a federal corporate culture that motivates for results, serves customers, and builds successful teams and coalitions within and outside the organization (OPM, 2007). The ECQs defined by OPM include these: • Leading change. The ability to bring about strategic change, both within and outside the organization, to meet organizational goals, and to estab- lish an organizational vision and implement it in a continuously changing environment. • Leading people. The ability to guide people to meet the organization's

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT vision, mission, and goals and to provide an inclusive workplace that fosters professional development, facilitates cooperation and teamwork, and supports constructive resolution of conflicts. • Results drien. The ability to meet organizational goals and customer expectations and to make decisions that produce high-quality results by applying technical knowledge, analyzing problems, and calculating risks. • Business acumen. The ability to manage human, financial, and information resources strategically. • Building coalitions. The ability to build coalitions internally and with other federal agencies, state and local governments, nonprofit and private sector entities, foreign governments, or international organizations to achieve common goals. To fulfill the core qualifications, executives must have a set of fundamental com- petencies as well as competencies in particular areas (Table 3.4) The committee also reviewed leadership competency models developed for the U.S. Army, a military organization, and the National Aeronautics and Space Administration (NASA), a civilian agency. Technical Report 1148, Competency TABLE 3.4 OPM’s Fundamental Competencies and Executive Core Qualifications Fundamental Leading Leading Results Business Building Competency Change People Driven Acumen Coalitions Interpersonal Creativity Conflict Accountability Financial Partnering skills and management management innovation Oral External Leveraging Customer service Human Political communication awareness diversity capital savvy management Integrity/ Flexibility Developing Decisiveness Technology Influencing, honesty others management negotiating Written Resilience Team Entrepreneurship communication building Continual Strategic Problem solving learning thinking Public service Vision Technical motivation credibility

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT Based Future Leadership Requirements, describes a competency framework for leadership requirements for the future Army (Horey, 2004). The authors defined a competency as “a cluster of knowledges, skills, abilities, and other characteristics (KSAOs) that underlies effective individual behavior leading to organizational success.” On page 2, Horey and his colleagues noted that “competencies, if well defined and comprehensive, should provide individuals and organizational processes with the roadmap that identifies successful per- formance of leadership duties and responsibilities.” They compared leadership models from the USCG, the Army (USA), the Marine Corps (USMC), the Air Force (USAF), the Navy (USN), and the OPM (EQC) and synthesized their findings as shown in Table 3.5. The constructs that appear in three or more frameworks of the various orga- nizations are these: • Performing/executing/accomplishing the mission, • Vision/planning/preparing, • Problem solving/decision making, • Human resources management, • Process/continuous improvement, • Motivating/leading people, • Influencing/negotiating, • Communicating, • Teamwork/team building, • Building/developing partnerships, • Interpersonal skills, • Accountability/service motivation, • Values, • Learning (including components of adaptability, flexibility, awareness), • Technical proficiency, • Driving transformation/leading change, • Strategic thinking, • Diversity management, • Mentoring/developing people, and • Physical/health/endurance. Based on this research, Horey et al. developed a core leadership competency framework for the Army with eight core competencies, as follows (p. viii): • Leading others to success. • Exemplifying sound values and behaviors. • Vitalizing a positive climate. • Ensuring a shared understanding. • Reinforcing growth in others.

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TABLE 3.5 Comparison of Service Framework Constructs for Leadership Competencies USCG USA USMC USAF USN ECQ Performance Executing: operations Accomplish tasks Driving execution Accomplishing mission Results driven Influencing others Influencing Influencing and Influencing and Influencing and negotiating negotiating negotiating Working with others Motivating Leading people and Leading people; Leading people teams working with people Management and Improving Initiative Driving continuous Continuous process improvement improvement improvement Effective Communicating Keep Marines informed Fostering effective Oral/written Oral/written communication communication communication communication Develop vision and Planning; preparing Creating/demonstrating Vision Vision implement vision Decision making; Conceptual; DM Make sound decisions Exercising sound Problem solving; Problem solving; problem solving judgment decisive decisive Group dynamics Building; developing Train team Fostering teamwork Team building Team building Self-awareness; Learning Know self and improve Assessing self Continual learning learning Technical proficiency Technical Technical proficiency Technical credibility Technical credibility Aligning values 7 values LDRSHIP 7 values Leading by example Integrity Integrity, honesty NOTE: DM, diversity management; LDRSHIP, loyalty, duty, respect, selfless service, honor, integrity, and personal courage.  SOURCE: Horey et al. (2004).

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0 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT • Arming self to lead. • Guiding successful outcomes. • Extending influence. NASA has also developed a leadership model that defines dimensions— highest level elements—for senior leaders: • Personal effectiveness, • Competency in particular disciplines, • Managing information and knowledge, • Business acumen, • Leading and managing others, and • Working internationally. Similar to OPM’s EQC model, the NASA model identifies a series of com- TABLE 3.6 NASA’s Competencies for Senior Leaders Managing Information Leading and Personal Discipline and Business Managing Working Effectiveness Competency Knowledge Acumen Others Internationally Cognitive Understanding Awareness Organizational Leading and Cross-cultural skills of discipline and use of culture managing relationships information change technology Relating to Safety Knowledge Organizational Leading and International others management strategy managing organizations Personal Maintain Internal and Leading and capabilities credibility external managing and awareness work characteristics Communication Business and advocacy development Business management Customer, stakeholder, and partner relationships SOURCE: NASA (2007).

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT petencies required to fulfill each trait. Competencies are defined as measurable skills, knowledge, or personal characteristics that have been demonstrated to be essential to effective leadership in NASA (Table 3.6). SUMMARY The committee identified several consistent themes from its research: • Facilities asset management encompasses people, places, technologies, processes, and knowledge. • Facilities asset management divisions must integrate functions and resources to align them with the mission of the organization. • The operating environment for facilities asset management is dynamic and requires the capacity to innovate. • The skills base for facilities asset management divisions should include an appropriate balance of technical, business, and behavioral capabilities and enterprise knowledge. • Leadership capabilities require wide-ranging management skills, behav- iors, and values that allow an individual to make effective decisions, influ- ence others, and lead them to success. Of all the stakeholders involved in funding, programming, designing, con- structing, operating, and maintaining facilities, the facilities asset management division is the only one involved throughout all phases, serving as the dominant player throughout the operations and maintenance phase, which accounts for 90 percent of the life cycle and facility investments (Figure 3.3). Facilities asset management divisions are responsible for a wide range of functions, all using different technologies and involving different operational units (construction, design, energy, engineering, electrical, environmental, fire, forestry, historic preservation, IT, janitorial, landscaping, maintenance, mechanical, park- ing, power, safety, sanitary, security, space, traffic, and others). This diversity means that such divisions must serve as “connected integrators” of diverse stake- holders, functions, and services across the life cycle of facilities. Facilities asset management divisions must also have people with capacity for strategic thinking and planning that leads to alignment of the facilities portfolio with the organization’s missions. In a dynamic operating environment, these divisions must be able to innovate across traditional functional lines and processes to address changing requirements and to take advantage of opportunities as they arise. REQUIRED CORE COMPETENCIES Based on its literature review, briefings, interviews, current geopolitical and socioeconomic trends, and the experience and knowledge of its members, the

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT FIGURE 3.3 Stakeholders’ involvement in various phases of a facility’s life cycle, as estimated by the committee.

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT committee concluded that three areas of expertise are essential for federal facilities asset management divisions through 2020 and beyond, as follows: • Integrating people, processes, places, and technologies by using a life- cycle approach to facilities asset management; • Aligning the facilities portfolio with organizational missions and available resources; and • Innovating across traditional functional lines and processes to address changing requirements and opportunities. The required skills base includes a balance of technical, business, and behavioral capabilities and enterprise knowledge. Technical capabilities such as engineering and architecture provide the foundation and expertise for life- cycle asset management and include knowledge of facilities-related systems, their operation and maintenance; acquisition and project management processes; regulations and procedures; and technologies and analytical capabilities. Business capabilities focus on strategic planning and resource management to advance an organization’s missions. Behavioral capabilities involve the leadership, communi- cation, negotiation, and change management skills required to integrate functions, people, and processes across traditional lines and the capacity to innovate within a dynamic operating environment. Enterprise knowledge includes an understand- ing of the facilities portfolio and how to align it with the organization’s missions; an understanding of the organization’s culture, policy framework, and financial constraints; agency inter- and intradependencies; and the workforce’s capabilities and skills. Facilities asset managers will require technical skills, enterprise knowl- edge, behaviors, and other personal characteristics that allow them to work in a team-oriented environment and to support achievement of a life-cycle approach for facilities asset management. Together, the three essential areas of expertise and the skills base make up the core competencies for federal facilities asset manage- ment divisions through 2020 and beyond. IDENTIFYINg CORE COMPETENCIES FOR FACILITIES ASSET MANAgEMENT DIVISIONS To develop its essential areas of expertise and skills base, each facilities asset management division must first identify the functions it needs to perform in sup- port of its organization’s current and future missions. For example, the facilities asset management division within DOE may focus on operations, maintenance, cleanup, and disposal of facilities; that same division within the Office of the Architect of the Capitol may focus on space management and historic preservation issues; and the Public Buildings Service of the GSA may prioritize real estate, leasing, and contracts/acquisition/disposal. Some similarities across facilities asset management divisions will surface, but the unique aspects of each organiza-

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT TABLE 3.7 Examples of Functions and Skills That Might Be Required to Support an Organization’s Missions Technical Business Behavioral Enterprise Knowledge Operations and Strategic planning Leadership Mission maintenance Asset management Teamwork/team Vision Planning and design Finance and building Strategic direction Building systems accounting Interpersonal Values Project management Contract monitoring relationships Culture/trust Construction Procurement Mentoring/coaching Systems Code compliance Real estate Negotiating Processes Cost estimating Acquisition and Critical thinking Resource allocation Space planning leasing Communication Environmental health Business lexicon Change management and safety Risk management Quality and Energy management Contingency planning innovation FM technology Ethics/law Future issues/trending Sustainability Marketing Performance Commissioning Human resources measurement Security Professional Benchmarking Life-cycle analyses development Organizational planning NOTE: FM, facilities management. tion will become apparent only after a careful analysis of its current and future functional requirements. Examples of the types of functions and skills that may be required are shown in Table 3.7. Once the required functions are identified, it should be determined if the divi- sion is structured to enable effective life-cycle facilities asset management or if some reorganization is required to better support a life-cycle approach. The next step is to look at the individuals who will collectively be responsible for facilities asset management and as a group will need the knowledge, skills, abilities, and behaviors to fulfill the required core competencies. Facilities asset management divisions will need to ask and answer the following questions: • What skills are possessed by the facilities asset managers who currently work in the facilities asset management division? Are these skills acces- sible/available in sufficient quantity for effective facilities asset manage- ment? What skills are found in people who are eligible to retire within 5 years? • Is there a gap between the current skills base and the skills required for effective facilities asset management in 2020? • What steps should be taken to close the skill gaps? What skills and capa- bilities are best acquired through new hires? Which by contracting out?

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT Which by training of current staff? Which through a recognized career path? The steps to be taken to close skills gaps will depend on the skills at issue and will require a comprehensive workforce development strategy. For example, technical skills might best be acquired by hiring recent college graduates with degrees in facilities management, architecture, engineering, business administra- tion, public administration, or related fields. In contrast, business skills might be strengthened by hiring experienced professionals from private companies, which value individuals with financial and risk management skills. Or, to acquire leadership skills, experienced military engineering officers who have undergone leadership training might be hired. Enterprise knowledge might be best developed by providing an in-house career path that fosters the professional development of current and new employees through a variety of strategies over time. A compre- hensive strategy for workforce development is the subject of Chapter 4. REFERENCES Atkins, B., and A. Brooks. 2005. Total Facilities Management. Oxford, England: Blackwell Publishing. Baecher, G., J. Dean, et al. 2005. Competencies—FE 301 Facilities Engineering Level III. Draft. Fort Belvoir, Va.: Defense Acquisition University. CCIS (Center for Construction Industry Studies). 1999. Owner/Contractor Organizational Changes, Phase II Report. Austin: University of Texas Press. Cotts, D., and E.P. Rondeau. 2004. The Facility Manager’s Guide to Finance and Budgeting. New York: AMACOM. Coyne, K.P., S.J.D, Hall, and P.G. Gorman. 1997. “Is your core competence a mirage?” McKinsey Quarterly 1: 40-54. Gallon, M., H.M. Stillman, and D. Coates. 1995. “Putting core competency thinking into practice.” Research Technology Management 38 (3): 20-29. GAO (Government Accountability Office). 2005. 21st Century Challenges: Transforming Govern- ment to Meet Current and Emerging Challenges. Testimony of David Walker. Available online at . Hamel, G., and C.K. Prahalad. 1994. Competing for the Future. Cambridge, Mass.: Harvard Business School Press. Hinks, J. 2001. “All FM is non-core, but is some FM less core than others? A discussion on realizing the strategic potential of FM.” FMLink white paper. Horey, J. 2004. Technical Report 1148, Competency Based Future Leadership Requirements. Arling- ton, Va.: U.S. Army Research Institute for the Behavioral and Social Sciences. Lopes, J.L.R. 1996. “Corporate real estate management features.” Facilities 14 (7/8). Markus, T.A., and D. Cameron. 2002. The Words Between the Spaces: Buildings and Language. London, England: Routledge. McGregor, W. 2000. “Preparing for an uncertain future,” Facilities 18 (10/11/12). Nutt, B., and P. McLennan. 2000. Facilities Management: A Strategy for Success. Oxford, England: Chandos Publishing. Nutt, B. 2000. “Four competing futures for facility management.” Facilities 18 (3/4).

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 CORE COMPETENCIES FOR FEDERAL FACILITIES ASSET MANAGEMENT OPM (Office of Personnel Management). 2007. Ensuring the federal government has an effective civilian workforce. Available online at . Prahalad, C.K., and Gary Hamel. 1990. “The core competence of the corporation.” Harvard Business Review 68 (3): 79-91. Price, I. 2004. “Business critical FM.” Facilities 22 (13/14). Price, I., and Akhlaghi, F. 1999. “New patterns in facilities management: Industry best practice and new organisational theory.” Facilities 22 (13/14). PCA (Property Council of Australia). 2000. Unleashing Corporate Property—Getting Ahead of the Pack. Rodgers, P.A. 2004. “Performance matters: How the high performance business unit leverages facilities management effectiveness.” Journal of Facilities Management 2(4). Then, Danny Shiem-shin. 2004. The Future of Professional Facility Management Education in the Asia-Pacific Region. New World Order in Facility Management Conference, Hong Kong. Warren, Clive, and Sherman Heng. 2005. FM Education: Are We Meeting Industry Needs? Pacific Rim Real Estate Society Conference, Melbourne, Australia.