Added value of CREM and FM

Transcription

1 Added value of CREM and FM Source: clarktalkblog.com Dr. Sc. Vitalija Danivska

2 On today s agenda Added value and terminology Different frameworks for understanding the added value RE strategies to add value Workplace management Coursework task give out and strategic brief Source:

3 After today you will : Learn differences between FM & CREM Familiarize with RE strategies to add value Learn about the role of workplace management

4 How can we add value to organizations? 1 scope 2 definitions FM CREM 4

5 FM CREM Occupants Shareholder value Coordinating physical space with the people and work of the organization to ensure efficient and cost effective environment Aligning RE to the needs of the core business process to improve overall performance of the organization in order to maximize the shareholder value 5

6 CREM vs FM Aspect Perspective Physical assets Operational costs Services Marketing Stakeholders Economy FM X XX X X CREM XX X X X X Investments and life cycle costs Jensen, P.A., Sarasoja, A.L., Van der Voordt, T. & Coenen, C. (2013), How can Facilities Management add value to organisations as well as to society? Conference paper. Brisbane, Australia: CIB World Building Congress, 5-9 May

7 Configurations of stakeholders - owning, using, administrating and operating Owning Using Administr ating Operating 7

8 Exercise adding value to organisations 1. Go to: 2. Answer the question! 8

9 Frameworks for capturing added value 9

10 Glatte, T. (2013), The importance of Corporate Real Estate Management in overall Corporate Strategies, CoreNet Global. 10

11 FM Value Map (Jensen et al., 2008) 11

12 Impacts on core business Satisfaction (customers, end users, owners) Cost (operational cost, staff turnover, capital investments) Productivity (efficiency, low staff absence and effectiveness) Reliability (business continuity, security, safety) Adaptation (foresight, flexibility, responsiveness) Culture (organizational identity, corporate image, brand) Van der Voordt, T., Jensen, P.A. (2014), Adding value by FM: an exploration of management practice in the Netherlands and Denmark, 13 th EuroFM Research Symposium 12

13 Impacts on surroundings Economical (income, commerce, tax) Social (employment, education, integration) Spatial (architectural expression, landscaping, townscaping) Environmental (resource consumption, pollution, environmental sustainability) 13

14 FM and CREM added value (Sarasoja, 2008) 14

15 8 Real Estate Strategies (Sarasoja) (1/2) Value Marketing and sales Innovations Employee satisfaction 15

16 8 Real Estate Strategies (Sarasoja) (2/2) Environmental sustainability Productivity Flexibility Costs 16

17 The full FM circle - is the ideal situation for holistic thinking Plan (need, prognoses, strategies) Decide (buy, rent, build) Operate (utility, administration, maintenance, service) Build (new, retrofit, extend) Adapted from: Balslev Nielsen, S. (2016) presentation at CFM Nordic conference 17

18 How do we measure the value then? Indicators in four areas: Financial indicators Costs and expenditures associated with operation and maintenance, energy, building functions, real estate etc. Physical indicators Physical shape and conditions of the facility, buildings, systems, components Functional indicators The way facility and buildings function, building appropriateness through space adequacy, parking, etc. Survey-based indicators Respondent s opinions in qualitative nature Source: Riratanaphong (2014) 18

19 Corporate real estate performance measures from six perspectives Stakeholder perception Employee satisfaction with work environment Customer satisfaction with facilities Community & wellbeing Financial health Value of property, plant, equipment Organisational development Quality of facilities Accommodation usage CRE unit quality Performance measures Quality of indoor environment Safe environment Location success factors Ratio of office space to common areas Provision of amenities Survey rating Number of complaints Performance measures Business return on RE assets Real estate return on investment Real estate return on equity Sales or revenue per square meter Space per unit (euro) of revenue Return on property management Performance measures Physical condition of facilities Suitability of premises Square meter per employee Effective utilization of space Time used in project versus time budgeted for the project Money spent on project versus money budgeted on the project Source: Riratanaphong (2014) 19

20 Corporate real estate performance measures from six perspectives Productivity Employee productivity Strategic involvement Environmental responsibility Resource use Waste Cost efficiency Occupancy costs Operating costs (building and FM) Performance measures Productivity Absentee rates by buildings CRE involved in corporate strategic planning CRE integrated with HR strategies Performance measures Energy consumption Number of energy audits, amount of garbage Contaminated sites management Performance measures Total occupancy cost per employee Occupancy cost as a percentage of total operating expense Occupancy cost as a percentage of operating revenue by building or business unit Total operating expenditures versus budget including: general administration, capital expenditures, moves, adds, rearrangements, facility/property services, other business services (mail, copy centres, security, reception) Facility management costs (environment, working conditions, quality) Source: Riratanaphong (2014) 20

21 Exercise 21

22 How (tools & methods) would you implement these strategies? Enabling flexibility Increasing productivity Encouraging innovation Enhancing wellbeing 22

23 Applying RE strategies (1/2) RE strategy Tools and methods Enabling flexibility Percent of leased space relative to total space Length of lease terms Use of virtual and flexible workspaces Remote work Flexible schedules Multipurpose spaces Increasing productivity Decreased distances for employee commuting Decreased time wasted by interrupting 23

24 Applying RE strategies (2/2) RE strategy Encouraging innovation & collaboration Enhancing well-being Tools and methods Shared spaces Collaborative teams Alternative work environments Increased number and variety of meeting spaces Quality of indoor environment Suitable workspace size and shape Ergonomics IT solutions and wireless infrastructure 24

25 25

26 Workplaces & management 26

27 Workplace/office development Organisations & management Physical space 27

28 Old school offices Cell Hive Hive Den 28

29 20 th century offices 29

30 Modern offices 30

31 Half of managers are away from their desks Average time spent on activity All workplaces Employees Managers all Managers (top level) Meeting discussiong (with at least one colleague standing next to the desk Phone call Regular working activities No info with regard to the activities of the user Conference call Conversation with the colleagues of the room In meeting/discussion (elsewhere in the office, short absence) User not in the building Adopted from: WCO (Workplace Consulting Organisation) Guide to Utilisation & Occupancy Studies Oseland et al. 2013

32 However, not the case in real life Meeting space utilization rates: Extra Small (1-2 people) 73% Small (3-7 people) 64% Large rooms (8-12 people) 54% Extra large (13+ people) 44% (Knoll, Metrics of Distributed work) Individual conventional workspaces have average of 45% peak utilization rate. 32

33 From 8 am to 4 pm. At office Fixed equipment Time as a measurement Flexitime from 7am to 7pm Either office or home if agreed Movable equipment, mostly office use Measuring time and performance Totally flexible working times Multilocational, place doesn t matter Equipment for mobile working Results as a measurement What has changed then?

34 Changing demand for space New ways of working New organisational structures No NEED for offices or shops, or.. We need spaces for humans to flourish Most companies are small Slumbers, A. (2017) 34

35 Landlords as rent collectors Managing the space Physical space dumb Physical space alone is not attractive User experience defines brand Landlords as service providers Managing the solutions that supports working Physical space smart Adding digital layer and services Brand defines value Where does it lead? Slumbers, A. (2017)

36 Facilities Management Managing the space Work Place Management? Curators of user experience Single location(s) Mostly at the office, remotely full days if agreed Time management Control Multi locational Freedom to select the location. Office, home, third places, etc. Results based management Responsibility Where does it lead?

37 Future offices 37

38 Providing attractive workplace Supporting user activities Stimulating innovations & collaboration Increasing flexibility Improving quality of place 38

39 Workplace-as-a-Service Community services (networking, events, education) Personal services (wellbeing, transportation) Experience-based offering Physical space (flexible options) FM services (cleaning; security; catering; support reception) Business services (consulting, development, marketing) Community-based offering Product-based offering Source: Danivska (2018)

40 From ownership to access Source: CBRE

41 Source: Workplace strategy connecting people side of the business with the place side 41

42 To sum up.. There are multiple strategies how RE can add value Increased attention to supporting user activities To get the maximum, collaboration is needed!!! Understand the needs of business, customers and end users 42