Facilities Management - Asset Management? What's the difference?

Alright, I've been meaning to make a post about this for a while, but, a question on FMforum.org prompted me to finally get around to it.

So many people that I speak with assume that since I work in 'Facilities Management' that I am an asset manager... or a space manager... but, I'm not. I'm a systems manager more than anything, but, as far as I know, that's not a commonly used term... or a term used at all. As a matter of fact, I think I might have just made it up.

Our lease management is done in conjunction with our space management, which is outsourced. Asset management is handled within each respective department as it best suits them.

I don't pline spaces, I don't run usage reports... I'm all MEPFP, baby. Sometimes I feel like I'm the only one. In my experience, this sort of thing is usually handled (if at all), by sending an in-house engineer or project manager to 2 day training course at a local software reseller. I'm not dissing the training that those places provide, it's simply an observation that they are learning differently than a person like myself who has obtained a multi-year degree.

What's the ideal way to manage facilities or spaces? Depends on your facility... but, that's not the topic for today.

I am going to define: facilities management, asset management & property management
not from my own perceptions, actually defining the words themselves, no matter how our postitions are forced to interpret them... I have italicized the definitions that I believe are most apt.

Facilities Management -

The co-ordination of many specialist disciplines to create the optimum working environment for staff. narains.com/glossary.htm

the outsourcing of utilities management, waste services and maintenance operations by industrial customers to a single supplier. The service provided may include operating technical installations, delegated management of maintenance operations, building upkeep, security and services.

Management of the organisation in operating and maintaining a completed project.

The management of facilities provided in a PFI project, eg cleaning, maintenance, security, catering.

Asset Management -

Process of deferring the day to day management of assets to a professional money management team, similar to a mutual fund however assets are not pooled with those of other investors. www.retirement-solutions.net/term.html

Asset management systems have evolved from maintenance management systems. Maintenance management systems use work orders for preventive and predictive maintenance, equipment recording and tracking, replacement parts inventory, and maintenance labor scheduling. The goal of asset management is to optimize asset use and manage all maintenance efforts involved in making assets as reliable, accurate, and efficient as possible. ... www.leanmean-manufacturing.com/glossary2.html

The timely and proper maintenance, location tracking and disposal of leased assets. www.leasingworld.co.uk/html/body_leasing_glossary.php

The process of managing demand and guiding acquisition, use and disposal of assets to make the most of their service delivery potential, and manage risks and costs over their entire life. www.deh.gov.au/parks/best-practice/reports/asset/glossary.html

Inventory tracking and record-keeping for all transactions related to furniture and equipment assets. www.heritagecalgary.com/architects_designers/resources/glossary.cfm

The term Asset Management has many industry-specific definitions. en.wikipedia.org/wiki/Asset_management

Property Management -

The range of functions concerned with looking after buildings, including collection of rents, payment of outgoings, maintenance including repair, provision of services, insurance and supervision of staff employed for services, together with negotiations with tenants or prospective tenants. The extent of and responsibility for management between landlord and tenant depend on terms of the lease(s). The landlord may delegate some or all of these functions to managing agents. narains.com/glossary.htm

The function of managing land and working, storage or living space within premises, and of acquiring a new facility or carrying out constructing, alterations, refurbishment and fit outs in order to fulfil an accommodation need. It also includes the functions of managing, maintaining, protecting and disposing of property. Includes buildings and land allotments either owned, rented or leased by the organisation, such as office blocks, repositories, and workshops. ... metadata.curtin.edu.au/manual/classification.html

The management of real estate, including collection of rents, maintenance of the property and upkeep of all accounting for another for compensation. www.hersheyhomes.com/FindAHome/Glossary.htm

A branch of the real estate business involving the marketing, operation, maintenance and day-to-day financing of rental properties. www.sanderco.com/Glossary%20Pages/P.htm

The operation of property as a business, including rental, rent collection, maintenance, etc. www.peakagents.ca/glossary/p21.htm

the act of looking after a property on behalf of its owner. www.apm.com.au/osbuyers/glossary.htm


Anonymous said...

Hi Melanie!
Thanks alot for your post! I'm just a student researching for an assignment on the differences between facility managment and asset management and came across your blog entry. I hope to work in the field of property management when I graduate!
THanks again!

Mistress of the Dorkness said...

I'm really glad if my post was some help to you! There tends to be some confusion and interchanging of these terms, so I hope I've provided something useful to you. :)

Good luck with your schooling. If you use autocad in the job you get, don't forget to sign up as a member of AUGI.com (if you aren't already) as a good technical resource.

Mistress of the Dorkness said...

When is Facilities Management Like an artichoke?

interesting way of putting it, but, it makes sense.

Mistress of the Dorkness said...

Also? Are you tired of the alphabet soup?
Check out this list of acronyms: