I am indebted to Dr. Johan R. Edelheim of Southern Cross University Lismore, for the foundation of these slides.

Dr Johan R. Edelheim (PhD)Lecturer, Hotel and Resort Management

Southern Cross University, Coffs Harbour CampusPersonal researcher page:

http://works.bepress.com/johan_edelheim/

Aims: Describe what facility management is and

argue its importance in the management of a hospitality facility;

Identify the relationships between facilities and risk management and hospitality management;

Describe what risk management is and argue its importance in the management of a hospitality facility;

Use case study methodology at an introductory level to analyse risk in a hospitality facility;

Essential readings: Reading 1.1; Jones, C & Jowett, V ((1998). ‘The Concept and

Scope of Facility management ‘in Managing Facilities (pp. 1 – 21), Oxford; Butterworth-Heinemann.

Reading 1.2; Langston, C & Lauge-Kristensen, R. (2002). ‘Strategic facility management’ in Strategic Management of Built Facilities (pp. 15 – 21), Oxford: Elsevier Butterworth-Heinemann.

Reading 1.3; Huyton, J. & Baker, S. (2001a). ‘Use of case studies’ and ‘Case Study 15 - I’ll Huff and I’ll Puff and I’ll Blow Your House Down’ in Case Studies in Rooms Operations and Management (pp. 4 – 8 and 50 -51), Melbourne: Hospitality Press.

Additional readings Jones, C & Jowett, V (1998), ‘The strategic planning role ‘in Managing

Facilities (pp. 22 – 49), Oxford; Butterworth-Heinemann Losekoot, E., van Wezel, R. & Wood, R. (2001), ‘Conceptualising and

operationalising the research interface between facilities management and hospitality management’.

Ransley, J. (2004a) ‘Concepts ‘ in Ransley, J. & Ingram, H. eds. Developing Hospitality Properties & Facilities 2nd Ed (pp. 3 – 22), Oxford: Elsevier Butterworth-Heinemann

Okoroh, M.I.; Jones, C.; & Ilozor, B.D. (2002), ‘FM application in the hospitality sector’ Facilities; 20, 7/8

Tangibles / intangibles Facilities ranging from highly visible

to totally invisible Compare with a theatre Matrix 2 Changes in the FM role from the

past to the present

The hardware: Building Servicescape Location

The software: Furnishings, fixtures and fittings Operational equipment Building equipment

Operative FM – often seen narrowly as a person in charge of maintenance – reactive

Tactic FM – measure and control facilities and equipment, search for new solutions, coordinate needs of other departments

Strategic FM – Part of executive team, closer related to financial controller than to maintenance team, Knows and foresees future areas of expansion/contraction in the industry - proactive

Strong focus on own work-area – blindness to bigger picture

Pipeline problem-solving approach How should FM be planned in order to:

offer guests an enjoyable environment; facilitate efficient work conditions for the

staff at the premises; be safe to reside within; and finally stay ‘invisible’ by functioning as they are

planned to function?

Risks occur in the normal course of business. Every hospitality enterprise is exposed to risk as a part of their normal business process. Indeed, the acceptance of specific risks is often necessary to the meeting of objectives.

The reason why you learn about risks in the same unit as you learn about facilities is because the most tangible risks you will experience are related to your facilities.

Even less tangible risks such as law suits and loss of money through fraud can in many cases be traced back to facilities related risks.

The main aim of this module of the unit is therefore to highlight where risks appear and to give you a framework to manage the diverse risks that you might encounter in your work.

Risk mgmt is NOT insurance Risk mgmt is not crisis management Risk can be assessed Risk can be ignored!

Risks to: The building – Physical assets The operations / money – Financial assets The personnel & customers – Human assets The brand, reputation -Non-physical assets

Brainstorm a list of ‘tangibles’ which a typical hospitality facility provides. Think of a situation where a ‘tangible’ has negatively impinged on your enjoyment and satisfaction at a hospitality facility.

What is the difference between operations and tactics? What is the difference between tactics and strategies? Give examples of the three levels of FM and suggest how much time, for example, a GM of a hospitality enterprise should spend on each of these levels per week at work.

From reading 1.3 (HANDOUT); Given the short time before the storm hits, now only 45 minutes, what factors should Laurie consider in formulating instructions to his management team and staff?