Added Value of Hospitality Management in the Evolution of Property and Facility Management

Research on business alignment in FM emphasizes the need for evidence-based reasoning regarding the added value of FM to organizational effectiveness in strengthening the strategic identity of FM (Price, 2002; Chotipanich, 2004; Chotipanich and Nut, 2008; Mak 2011). In the Netherlands, recent developments in new ways of working, and the requirements thereof in terms of FM products and services, have proven the ability of FM to evolve. In meeting the needs of new ways of working, Hospitality Management (HM) has become an integral part of the overall strategic identity of FM (Reijngoud, 2011). The current study reflects on the above-mentioned statements, and uses a case study approach to present evidence-based proof of the added value of HM in the evolution of property and facility management. The case study of Eneco – a large Dutch energy provider – traces the effects of a vision on overall sustainability that was adopted in 2008. This vision was translated and physically embodied in a new building and a new workplace concept with 1530 typologically diverse workplaces for 2300 employees (0.67 workplaces/employee). Bringing it all together is an integrated FM/HM strategy closely aligned to the organizational objectives in terms of sustainability, HRM, ICT and CRM (Customer Relation Management). Implementation of this strategy is recognized through its focus on three specific aspects: (i) user-behaviour, (ii) products and environment, and (iii) Facility services. By translating general and FM trends regarding these focus areas to a vision on the role and potential added value of HM in FM, an integrated approach that transcends the level of mere product provision and service delivery, was realized. Crucial in formulating this integrated approach were considerations regarding (i) the development of new FM and service delivery competencies, and (ii) the financial implications of the envisioned service contracts and products. As a result, these were benchmarked with current facility costs (NEN 2748, currently known as EN-15221) and integrated with three anticipated levels of experience on which the organization wants to accommodate all client (internal) and customer (external) needs and requirements. Knowledge of this case study contributes to a body of epistemological knowledge in FM education regarding the continued evolution of FM and the dynamic nature of its alignment with organizational objectives.