DETERMINING THE DYNAMIC APPROACH OF FM SERVICE DELIVERY IN UK SHOPPING CENTRES

PRESENTED BYZAIRUL MUSAz.n.musa@2007.ljmu.ac.ukLiverpool John Moores UniversityByrom Street, Liverpool L3 2BDUnited Kingdom

SUPERVISORS : PROF. MICHAEL PITT MATTHEW TUCKER

ERES CONFERENCE 2009STOCKHOLM, SWEDEN

OUTLINE OF PRESENTATION

1. Research Background2. Research Problems3. Research Questions4. Research Aim and

objectives5. Research Methodology6. Contribution to

Knowledge

ERES CONFERENCE 2009STOCKHOLM, SWEDEN

RESEARCH BACKGROUND

• What is facilities management?– FM is the integration and alignment of non-core services,

including those relating to premises, required to operate and maintain a business to fully support the core objective of the organisation (Tucker and Pitt, 2008)

• Although FM services are non-core in nature, if manage correctly, they should have a strategic importance to adding value to an organisations core business delivery.

WHAT IS THE BUSINESS OF SHOPPING CENTRES?

CORE BUSINESS

• Retail Property Investment

NON-CORE BUSINESS– Cleaning services– Housekeeping operations– Maintenance and

engineering– Health and Safety– Waste management– Car park management– Security– Landscaping– etc.

£

SUPPORTING

SHOPPING CENTRE MANAGEMENTFacilities management services

OWNERS

Contractors

Property Manager

Letting Agent

Marketing/Leasingspace

Potential Tenants

Centre ManagementTeams

Operating & Managing

Tenant MixFacilitiesProperty

SHOPPING CENTRE MANAGEMENT

• Single contract*• Bundled/Multiple

contract• Integrated • Total contract

* Many shopping centres currently operate their facilities management services through single source contract.

FACILITIES MANAGEMENT SERVICE DELIVERY IN SHOPPING CENTRES

IN-HOUSE• Totally operates by

centre management teams

OUTSOURCE

ISSUES: EXISTING MANAGEMENT APPROACH

1. Strategic issue• With the traditional ‘managing agent’ led method in the retail shopping centre

coming under pressure, Cant (2005) suggests that there is a significant opportunity to consider change the way centre infrastructure is managed and service delivered.

2. Losing business focus• It seems that management of shopping centres are towards to property-led

approach rather than business or customer-led approach (Howard, 1997)

3. Customer un-satisfaction• Willis (2003) reports that many investors of shopping centres are now finding that

they are not getting the level of FM service anticipated, and at cost originally sought. Retailers also feel they are not finding that their service charges necessarily equate to the level and quality expected.

4. Not cost effective option• ...by keeping all activities in- house apparently it’s not very cost effective option

and also relatively static and standard fashion (Cant, 2005)

RESEARCH PROBLEMS

• This study has identified key research problems with FM service delivery in UK shopping centres.1. There has been little research on current

management system in UK shopping centres.2. There is lack of studies on FM in shopping

centres. 3. There is lack of studies on the trends of FM

service delivery in shopping centres.

RESEARCH QUESTIONS

MAIN RESEARCH QUESTION• How the dynamic approach

of FM service delivery can be determined and add value to the management of shopping centres?

SPECIFIC RESEARCH QUESTIONS

1. What is the management system in UK shopping centres?

2. What is the trend of FM service delivery in UK shopping centres?

3. How to determine the best approach of FM service delivery for UK shopping centres?

4. How this approach can be an added value to the management of shopping centres?

RESEARCH AIM AND OBJECTIVES

AIM• To seek and determine the

dynamic approach of FM service delivery in UK shopping centres.

OBJECTIVES1. To examine the management

system in UK shopping centres.2. To evaluate the approaches of

FM service delivery in UK shopping centres.

3. To determine the dynamic model of FM service delivery in UK shopping centres.

4. To define the added value to the shopping centre management.

RESEARCH METHODOLOGY

1. Literature review

2. Questionnaire3. Structured

interviews

Analytical Hierarchy Process

(Decision Making Analysis )

In-depth interviews

Dynamic model of FM

service delivery

Define the criteria Determine the approach Define the added value

PHASE 1 PHASE 2 PHASE 3

Dynamic criteriaAdded value

Dynam

ic approach

CONTRIBUTION TO KNOWLEDGE

• Most of the previous research on facilities management are relates to the commercial office building, medical, hotel, educational and industrial. This research has potential to bridge the gap to the existing research and also contributes to the knowledge on theoretical development in facilities management with regards to shopping centres.

THANK YOU