Year in Review: IFMA FY17 Annual Report July 1, 2016 – June 30, 2017 The 2017 fiscal year was a time of global change, the continued elevation of FM and strategic realignment for the International Facility Management Association (IFMA). As the facility management industry has become more strategic, IFMA has adapted, championing international standards and providing the largest unified global community to create shared solutions. In addition to expanding and improving IFMA’s world-class products and services, the landmark collaboration with the Royal Institution of Chartered Surveyors (RICS) continues to highlight the strategic value of the FM profession among adjacent industry sectors. FINANCIAL STANDING (pre-audit) Total revenues for FY17 were US$16.1 million, up US$2.2 million (16 percent) from the previous year. Total expenses for the fiscal year were US$16.6 million, up US$2.1 million (14.5 percent). Direct expenses associated with the delivery of products and services were US$10 million, and indirect operational expenses were US$6.5 million. The net impact on income from operations was negative US$437,000, US$77,500 better than budget and an improvement of US$117,000 over fiscal year 2016. At fiscal year-end, revenues from conferences and exhibitions stood at US$5.4 million (33.4 percent of total revenue), up US$894,000 from the prior year. Professional development revenues stood at US$4.5 million (27.7 percent of total revenues), up US$363,000 from the prior year. Rounding out the major revenue business units, membership revenue was at US$4.7 million (29 percent of total revenue), up US$752,000 from prior year. Total assets grew 6.6 percent to US$9 million. Refer to the Statement of Financial Activities (figure 1, p. 16) and the Statement of Financial Position (figure 2, p. 17) for additional details. MEMBERSHIP A total of 7,575 new members joined IFMA during the 2017 fiscal year. IFMA members (30 percent of whom reside outside of the United States) are part of a network of 134 chapters throughout the world across more than 100 countries. Membership numbers increased by 4.2 percent over FY16. We also increased first-year member retention rates by 9 percent since implementing a new member orientation program. In FY17, IFMA’s Environmental Stewardship, Utilities and Sustainability Community continued to update pieces within the IFMA Foundation’s Sustainability How-to Guide Series, first published in 2009. Updated guides include: Carbon footprint, Engaging occupants in your sustainability programs: strategies for success, Measuring and monitoring, Green building rating systems and Global green cleaning. Authors presented webinars for members on each of the newly updated guides throughout the year. In FY16, IFMA’s Board of Directors unanimously approved the recommendation of the Councils Committee to adopt the following new structure for components which staff implemented in FY17: • Chapters, to help connect members within specific geographical areas • Councils, to help connect members who practice FM in similar industry sectors or facility types • Communities, to help connect members who share an interest in an FM sub-topic, regardless of location or industry During 2016-17, IFMA’s chapter networks expanded. A new student chapter, Oklahoma University, was formally chartered in January 2016. Fifteen councils and six communities continued to serve niche FM audiences along industry verticals and topic-specific horizontals. In March 2017, staff initiated a membership retention campaign targeting former members with lapse dates within the past three years, which directly resulted in more than 140 renewals. Additionally, in May 2017, IFMA exhibited at the Offshore Technology Conference (the largest oil and gas expo in the world) for the first time to expand awareness of FM among the energy production audience. We gained many high-quality leads from our participation and are establishing new recruitment strategies within this market for FY18. Lastly, in June 2017, staff initiated a redesign of the IFMA membership brochure, which will premiere at World Workplace in October 2017. EDUCATION AND CREDENTIALS In FY17, IFMA embarked on a transition to move the certificate-based credential programs (Facility Management Professional™ (FMP®) and Sustainability Facility Professional® (SFP®)), the Facility Management Learning System® (FMLS®), all continuing education courses and the Essentials of Facility Management series to a new platform shared by IFMA and RICS at www.fm.training. The shared platform allows us to house, market and maintain professional development products in one place, making a convenient one-stop-shop for FMs to achieve credentials, professional qualifications and find FM-focused training resources. Additionally, IFMA’s research team completed the first portion of a major research project that revealed a positive return on investment for facility managers investing in achieving IFMA credentials, such as the Certified Facility Manager® (CFM®), FMP and SFP. The research report, titled “Evaluating the Value: IFMA Facility Management Credentials,” details an average five-year return on investment of IFMA credentials of 15:1. (For more information on the study, refer to page 7 of this report.) The International Credentials Commission (ICC) completed an update to the facility management Global Job Task Analysis (GJTA) and performance standards in FY17. The job task analysis is a comprehensive research study that helps identify the knowledge areas, skills and abilities required to perform a job role competently. In comparison to the 2011 GJTA results, the number of competency areas is unchanged but the organization of content has been revised. Additionally, newer or expanded responsibilities and expectations, such as that of involvement with change management or data collection and information management, were included among the new content. For example, the broader term Risk Management has become a competency area with three sub-competencies: risk identification and planning; emergency preparedness, response and recover; and facility resilience and business continuity. The results of the GJTA will be used to update the CFM Exam in FY18 and will serve as a baseline to update the FMP, SFP and other educational materials. Additional 2016-17 developments in IFMA education and credentials • Conducted two qualified train-the-trainer programs for IFMA credentials in FY17: one at World Workplace San Diego with 16 participants (nine for FMP and seven for CFM) and one for the FMP in Dubai, United Arab Emirates, in March 2017 with 12 participants. • Brought major professional development marketing and communication initiatives in house. • Launched the suite of credentials and professional qualifications for recognition in FM campaign jointly with RICS. Number of IFMA credential holders: 11,409* • CFM: 2,701 • RCFM: 431 • FMP: 7,498 • SFP: 779 Additionally, IFMA issued a total of 4,855 Essentials of Facility Management program modules. (“Issued” means access to the program and does not equate to credits completed or earned.) Number of IFMA qualified instructors: 61* • Essentials of FM Instructors: 59 • CFM instructors: 37 • FMP instructors: 39 • SFP instructors: 9 *as of fiscal year end EVENTS FY17 was a year of tremendous expansion for IFMA events, including rebranding existing regional conferences to become part of the World Workplace event series and a record 10 conferences. World Workplace Europe 2017 Conference and Expo May 30-June 1, 2017 | Stockholm, Sweden World Workplace Asia 2017 Conference and Expo May 9-10, 2017 | Hong Kong Facility Fusion Canada 2017 Conference and Expo May 17-18, 2017 | Montreal, Quebec, Canada World Workplace Forum Middle East 2017 May 18, 2017 | Dubai, United Arab Emirates Facility Fusion U.S. 2017 Conference and Expo April 5-7, 2017 | Las Vegas, Nevada, USA SAME-IFMA FM Workshop Feb. 9-10, 2017 | San Antonio, Texas, USA World Workplace India 2016 Conference and Expo Nov. 4-5, 2016 | Bangalore, Karnataka, India World Workplace 2016 Conference and Expo Oct. 5-7, 2016 | San Diego, California, USA World Workplace Asia 2016 Conference and Expo Oct. 20-21, 2016 | Shanghai, China Advocacy Day and Public Policy Forum 2016 Sept. 6-7, 2016 | Washington, D.C., USA Attendance for the 10 events totaled nearly 8,000, and while some attendees choose to participate in multiple events, there is not high crossover among the conferences. Participation ranged from 75 attendees at Advocacy Day (the event’s largest turnout in 5 years) to 4,660 attendees at World Workplace in San Diego. We had record-breaking attendance and a sold-out expo at the FM Workshop, held in partnership with the Society for American Military Engineers (SAME). Traditionally a biennial event, demand for this year’s workshop was so high that IFMA and SAME will host it every year moving forward. In addition, Facility Fusion Canada was the highest-attended to date since the inaugural 2014 conference with more than 300 attendees and the largest number of exhibitors. In 2017, IFMA launched two new events with support from RICS: The World Workplace Middle East Forum and World Workplace Europe Conference and Expo (relaunched as a standalone conference in lieu of the EFMC event). Attendees gave extremely positive feedback for both and communicated their excitement for next year. World Workplace Europe debuted a new marketplace for more targeted networking between attendees and vendors, and we plan to implement this concept in all World Workplace conferences outside North America moving forward. IFMA held two World Workplace Asia events this fiscal year: one in Shanghai in October 2016 and one in Hong Kong the following May to coincide with the local chapter’s anniversary. The Hong Kong event co-located with HOFEX, a food and hospitality tradeshow, and attendees benefited from access to the massive HOFEX exhibition. Despite a time of significant change, IFMA’s conferences spanned more countries than in any prior year and are poised for continued success in FY18. RESEARCH The FY17 fiscal year culminated with the establishment of the FM Research and Benchmarking Institute (RBI). The RBI is a standalone, tax deductible, tax exempt 501(c)(3) entity charged with centralizing research efforts of both the IFMA Foundation and the association under one umbrella. The increased productivity and refinement of targeted and tactical FM research supporting both applied and academic facility managers is pivotal to supporting the industry. The RBI’s mission is to “Provide global leadership in advancing the facility management profession and improving the built environment through academic and applied research and benchmarking studies.” The institute is guided by a board comprised of leaders from IFMA, the IFMA Foundation and RICS, and committees formed to support selected initiatives. The RBI seeks to strategically collaborate with companies, individuals and organizations that believe in the RBI mission and support generation of research products, benchmark data, research symposia and tools that benefit facility managers. Working with IFMA’s web team, the RBI launched a new website, research.ifma.org, in April 2017. The institute also welcomed its first Founding Circle Member: JLL. In FY17, the RBI published a report on the return on investment (ROI) of attaining IFMA credentials from an employee perspective. The results, gathered over 10 years, are positive, informative and make the case for the future of FM as a career. Also in FY17, the first joint research effort with RICS resulted in publication of Raising the Bar 2, which offers in-depth perspectives on what FM currently is and is not. Existing and new research reports commissioned late 2016 and early 2017 will be available beginning in FY18, including: • Updated operations and maintenance benchmark report (targeted for release in September 2017). The research team increased data validation to confirm responses after preliminary data indicated that the new results were significantly higher than in past reports. • A second ROI report, slated for release in December 2017, examines the benefits to companies that hire IFMA credentialed employees. The goal is to examine the direct and indirect benefits of having IFMA credentialed/certified employees with specific supporting case studies. Thirty-one companies voiced interest in participating. • Best practices/good practices – a knowledge translation examination (late February 2018) examines how the C-suite designs, validates, implements and evaluates best/good practices, as well as how facility managers are charged with implementation. • The RBI will work with RICS again in FY18 on Raising the Bar 3, which will include a focus on standards. In addition, the RBI is negotiating sponsorship for an update of the 2010 space and project management benchmark report and the 2013 healthcare benchmark report. Toward the end of the fiscal year, the RBI began reviewing possible updates to or replacement of the existing IFMA benchmark exchange (BEX) platform, which is unsustainable in its current format. Requirements for a future platform include accessibility to multiple benchmark databases, an easily navigable user interface, custom reports, and simple, accurate data uploads. In addition to robust FM research products and services, the RBI will continue to support internal IFMA market research, including member profile and event attendee surveys. Addressing member feedback, IFMA research developed an application program interface to: • decrease the amount of time needed to answer selected sections of future surveys; • refine IFMA member profile data; and • increase completion rates on research-based questions (particularly demographics). Looking forward, the RBI will focus on: • developing a strategic plan; • increasing collaboration with other associations on joint projects benefiting IFMA members; • increasing sponsorship in multiple areas; • examining the possibility of developing a new benchmarking platform supporting evolving benchmark efforts for multiple FM topics; • identifying new FM areas in which to pursue research product development; • supporting a research symposium benefiting IFMA members; • reviewing pricing models to support future efforts; and • evaluating development of a facility assessment tool. STANDARDS IFMA continues our goal of advancing the FM profession through involvement in international standards activities. Our current focus continues to be on the FM management systems standard, the purpose of which is to provide specific requirements for individual organizations to establish and manage a management system standard for the practice of FM. The goal is “for an organization to be able to demonstrate that it has a robust process through which to design, manage and improve its integrated facility management system.” Overview of IFMA involvement • Since 2012 IFMA has been the administrator for the U.S. Technical Advisory Group to the International Organization for Standardization Technical Committee 267 (ISO TC 267) on behalf of the American National Standards Institute (ANSI). The committee’s purpose is to develop international consensus standards for facility management and requires participation through a national standards body (ANSI for the U.S.). ISO TC 267 is comprised of 27 participating and 16 observing countries. • The U.S. holds the convener position for “ISO 41001 Facility Management – Management system standard requirements with guidance for use.” IFMA past chair James P. Whittaker serves as convener. ISO 41001 is currently in Draft International Standard phase. The estimated timeline for this standard to be published is early 2018. • ISO published two standards in April 2017: “ISO 41011 Facility Management – Vocabulary” and “ISO 41012 Facility Management – Guidance on strategic sourcing and the development of agreements.” • As part of the outreach efforts to promote the various FM standards activities, FMJ has published a series of articles showcasing the benefits of FM standards in achieving business objectives, and FMJ electronically published a special standalone Standards edition in March. • The team is developing a strategy for how to integrate standards educational content into the Knowledge Library to increase standards adoption and awareness. • IFMA presented on standards activity at World Workplace 2016, Facility Fusion 2017 and World FM Day 2017. CONTENT CREATION FMJ magazine In FY17, FMJ transitioned from the communications team to the content creation team. As part of the updated organizational structure in March, the magazine is managed by a new editor, Jocelyn Kerr, who was hired in July 2017. Strategy planning is in motion to refine and build on FMJ’s digital readership growth since it was made an open-access publication in FY16. This includes further developing content-sharing relationships, implementing social media marketing strategies and enhancing the magazine’s global reputation as an industry-leading forum for FM thought leadership. To continue increasing awareness of the magazine, FMJ launched a new member spotlight in the Extended section of the digital version of the magazine. Working with membership and councils, this Components in Focus section highlights chapter events and awards, and presents new member profiles. The response has been positive and creates increased opportunities to engage with members via social media. This new feature adds to FMJ’s commitment to provide IFMA stakeholder-focused content, which also includes regular submissions from councils, committees and alliance partners specifically targeted to help the FM community perform more efficiently and productively. Since IFMA’s Board of Directors unanimously approved a motion to make the digital magazine an open-access resource in FY16, digital viewership in the first three issues of FY17 increased 140 percent over FY16. This increase in digital viewership is expected to continue increasing as FMJ leverages social media to expand the magazine’s reach. At the close of FY17, FMJ’s Twitter page had 6,070 followers, an increase of 20.5 percent over the prior year. The FMJ Facebook page ended the fiscal year with 1,639 likes, a year-over-year increase of 9.9 percent. Knowledge Library In FY17, IFMA completely redesigned the Knowledge Library to increase accessibility, performance and ease-of-use, and launched the Knowledge Pass subscription service at World Workplace in October 2016. The Knowledge Library saw incredible growth in Content Expert participation, submissions from external authors and new voices in FM, as well as an increase in new users and downloads. While still a relatively new service available to IFMA members and FMs, the Knowledge Library has gained considerable traction as a go-to resource for FM students and practitioners. The team has orchestrated content partnerships and alliances with several organizations, groups and authors (such as ISSA and the Health Care Institute) to increase content offerings and expand the number of topics available to users. Additional 2016-17 developments in the IFMA Knowledge Library • Hosted a content commission to increase Knowledge Pass content offerings • Launched the Authors Corner, a platform for authors to promote their works at World Workplace • Added health care to the list of content topics offered in the Knowledge Library, as well as FM content from RICS • Revised and streamlined the content submission process to better expedite review and publication • Enhanced filter and sort functionality to offer the ability to sort by access level, competency, difficulty, vetted status, content type and title/keyword • Updated all help and support documentation to reflect the processes and features of version 2 • Completed major speed and performance upgrades The Knowledge Library acquired 1,418 new users in the fiscal year, bringing the total number of Knowledge Library users to 2,375. • Knowledge Pass subscribers: 298 • Total pieces published: 837 (as of Aug. 22) • Total content downloads: 75,009 (up 52,197 for the year) MARKETING AND COMMUNICATIONS In FY17, the marketing and communications team launched a branded campaign in support of the IFMA-RICS collaboration. Named “define.fm,” the campaign serves to promote awareness of the collaboration and its significance to the FM industry. Working with an external agency, IFMA and RICS created a significant presence for define.fm at World Workplace in San Diego — from branded collateral, a dedicated interactive space in the convention center, and banners around the city (at the airport, on bicycle rickshaws and even on a plane flying over the welcome reception), to town halls, information sessions by collaboration ambassadors and special keynote session presentations. The campaign also included the launch of a define.fm website and social media accounts to continue opportunities for engagement beyond the event. Overall, staff revisited IFMA’s communication channels to increase opportunities for two-way exchange with members. In response to members’ expressed desire for greater visibility into the IFMA-RICS collaboration, the team supported virtual and in-person town halls between IFMA executives, board members and component leaders, as well as a collaboration communications task force and the launch of a monthly update newsletter. Notable face-to-face dialogs included a Fellows Task Force meeting in January, a large chapter meeting at IFMA’s Houston Service Center of Excellence in March and a town hall at Facility Fusion Las Vegas. In addition, we completed a redesign of The WIRE member newsletter and archives to improve ease of access to information. IFMA’s marketing team and strategies changed significantly during the 2016-17 fiscal year. The department now has three team leads who provide dedicated marketing support for IFMA’s primary product areas (membership, professional development and events). The team is shifting to a greater emphasis on communicating IFMA’s value proposition by demonstrating success stories and connecting these with stated needs based on member and market insights. Finally, IFMA’s websites are now managed within the communications team to improve the consistency of information and user experience across all IFMA-hosted web properties. Social media IFMA’s social media presence is managed by the communications team (working closely with marketing). Year-over-year participation in IFMA’s social channels continued to increase, closing FY17 with: • LinkedIn: 58,705 group members (up 14 percent) • Twitter: 19,444 followers (up 10 percent) • Facebook: 6,811 likes (up 13 percent) • YouTube: 782 subscribers (up 30 percent) IFMA increased reach and interaction among these audiences due in part to successful experimentation with Facebook live videos, notably on the expo floor at Facility Fusion Las Vegas and on World FM Day in May. In FY18 we will continue to refine both strategy and process to ensure that we focus resources on activities that foster engagement and meaningful interactions with both members and prospects. Public relations IFMA’s public relations and external communication efforts delivered a robust year of news coverage, delivering millions of impressions across written and multimedia platforms. Bolstered by the global interest in the landmark IFMA-RICS collaboration, external message campaigns were particularly successful in proximity to IFMA’s World Workplace Conference and Expo, held in San Diego. Public relations message campaigns are designed to increase awareness of FM and IFMA efforts to support the FM industry. Three key narratives helped drive outward-facing messages this year: 1) FM unification: The FM industry has long suffered from fragmentation of protocols, standards and even the very definition of what FM is. IFMA is helping to create, for the first time, a suite of consistent practice standards and guidance that will support a globally unified FM industry. 2) FM integration: IFMA is seeking complete integration of FM into the larger built environment conversation, recognizing the valuable role FM plays in the effective application of the built environment to meet organizational goals. 3) FM career pipeline: Despite the growing level of importance within organizations, there are challenges to the recruitment and training of new FM professionals in the marketplace. IFMA is helping to build awareness of FM as a viable and exciting career choice. GOVERNMENT RELATIONS During the 2017 fiscal year, IFMA’s External Affairs program built on the success it achieved in the final days of the 2016 U.S. legislative session. Two critical pieces of legislation were signed into law by President Obama. H.R. 4465, the Federal Asset Sale and Transfer Act, and H.R. 6451, the Federal Property Management Reform Act, are significant because they recognize the life-cycle cost of facility ownership, adopt industry best practices and will reduce waste across the federal real estate portfolio. These were key federal legislative priorities for IFMA, both for educating decision makers and stakeholders on the role and impact of effective FM and for supporting sound public policy. IFMA’s Government Affairs Committee hosted its Advocacy Day and Public Policy Forum in Washington, D.C. Despite a hectic and evolving legislative schedule, chapter leaders from across the country participated firsthand in the legislative process by meeting with elected officials, key staff and administration decision-makers. IFMA’s FM advocates successfully voiced their support for H.R. 4465 and H.R. 6451, while encouraging policy makers to give FM a voice in deciding which federal buildings to keep and which to strategically dispose of. Also in the U.S., IFMA’s State Monitoring Programs are helping to ensure that FM professionals are effectively engaging in public policy at a state and local level. IFMA’s advocacy efforts expanded at the state and local level, including Minnesota, Washington, New York, Georgia, Texas, Colorado and — with particular issues impacting FM — in Pennsylvania, Maryland, Illinois and North Carolina. In Europe, IFMA has supported the adoption of an amendment to EU Heating and Cooling Strategy referencing the impact of effective FM in reducing energy use, an amendment to Energy Performance of Buildings Directive on use of facility management along with design and construction to reduce energy use and sustain savings, and continues working to establish a public-sector FM training scheme. ORGANIZATIONAL GROWTH Continuing the groundwork laid in FY16, IFMA’s Board of Directors and executive leadership adopted an agile strategy in FY17 to ensure the organization’s long-term sustainability within the rapidly growing marketplace. Launched in FY16, the IFMA-RICS collaboration gained traction across multiple product and service areas as outlined in other sections of this report, including increased membership. In addition, the collaboration continues to serve as a bridge to further socialize the value of strategic FM among professions at other stages of the built environment life cycle — from conception through recommissioning — and highlight the strength of IFMA’s credentials, such as the CFM, globally. In addition to launching the FM Research and Benchmarking Institute, IFMA supported an initiative focused on the exponentially increasing role of technology in shaping facility operations. From an Internet of Things online discussion forum launched in January 2017, a new group formed in the spring: the Built Environment Technology Association (BETA). BETA’s purpose is to enable the built environment industry to adopt and apply technology more effectively, and to help those who manage the built environment provide data to the C-suite for better decision making. Designed with a corporate membership model, BETA will foster collaborative relationships with companies, vendors and trade organizations; host in-person and virtual think tanks; commission research; and produce educational and training products for these transformative technologies. IFMA’s web team assisted in launching BETA’s website, www.smartbeta.tech, in June. To better serve IFMA’s global membership, in FY17 we expanded our distributed service model. In addition to the North American Service Center of Excellence in Houston, Texas, and IFMA China located in Shanghai, IFMA welcomed a new director of IFMA India: Mahender Singh. Singh brings more than 25 years of experience in facilities, corporate real estate, facilities operations, turn-around management, business development, finance and general administration. IFMA also hired Lara Paeman as Director, IFMA Europe. Leveraging her broad experience in workplace strategy, business and business consulting in Belgium, the Netherlands, France, Spain and the United Kingdom, Paemen offers practical knowledge and a progressive vision that is suited to the exciting potential in the European facility management market. In addition to these staff expansions, IFMA established three regional advisory boards: • Americas Regional Board (North America, South America) Global liaison: First Vice Chair Bill O’Neill, CFM • Asia-Pacific Regional Board (Asia, India, Oceania) Global liaison: Second Vice Chair Graham Tier, CFM, FMP, MRICS • Europe/Middle East/Africa (EMEA) Regional Board (Europe, Middle East, Africa) Global liaison: Board member Peter Ankerstjerne, MBA, COP, FRICS, IFMA Fellow Flowing into IFMA’s global board, the regional boards provide input into the organizational direction by providing regional insights, visibility and support. The regional boards’ goals include supporting IFMA’s efforts to improve communication with members and aligning with the association’s strategic direction. Regional board key objectives: • Cascade the global strategy to the various regions • Gain market insights and intelligence into regional challenges • Develop plans to meet the regional requirements to advance the FM profession • Provide feedback to align programs and events with the global programs and objectives • Introduce IFMA to a global audience • Create valuable networking opportunities and events for members and other built environment professionals • Raise the profile of FM in the region and act as ambassadors for the profession • Assist in defining FM for the region, including required training and standards • Participate in regional stakeholders’ engagement sessions in public and private sectors to provide an FM perspective To better meet the organization’s current needs and future direction, IFMA re-aligned the staff structure in March 2017. The revised structure supports increased alignment of product teams and supporting operational areas, creating a more agile environment for innovation and increased efficiencies. As part of the re-alignment, we launched business functional teams, which serve to increase focus on specific product and service areas across the formal reporting structure. YEAR IN REVIEW IFMA is dedicated to our global mission of advancing the professional discipline of facility management worldwide. We accomplish this by empowering members to participate in a global FM community and equipping them with the knowledge and experience that can only be found in a community of global scope. On behalf of the board of directors and staff, thank you for your contributions to the world’s leading organization for facility management and related industry professionals. Sincerely, Tony Keane, CAE President and Chief Executive Officer Maureen Ehrenberg, FRICS, CRE Chair, 2016-17 Board of Directors
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