real estate future proofing
44% of real estate managers were unclear on forecasting their CO2 emissions. Most organisations in the
same study did not believe 2050 carbon reduction commitments are achievable. However, the simple fact of the matter is that they are not if approaches and practices remain the same.
Benchmarking efficiency
Managing an estate requires a vigilance to ensure costs are understood, while resources and space are maximised. To achieve this consistently over the long term, this requires a robust process which captures real estate metrics, according to industry definitions, to enable cost, space, resource and environmental performance measurement as well as peer and wider industry comparisons. Our research has found that most
corporate real estate managers and facilities managers are unhappy with their current ‘performance dashboards’ – the metrics used to measure real estate performance. There is a view that often metrics are not aligned with strategy; what is required in performance measurement is clarity of purpose and not more data. The point was argued strongly at last
month’s IPD Occupiers conference by Professor Andy Neely of University of Cambridge who told delegates corporate real estate teams are increasingly “drowning in data and thirsting for insight”. He continued: “I don’t think
measurement should be used as a control system. It’s much better when it’s used as a learning system. What the data should
give is more insight into what is going on within my organisation – so we can see how to make things better.” Indeed, lack of data is rarely the issue
these days as we monitor increasingly specific activities. The real problem is that data sets are often fragmented, two- dimensional, and under-interpreted. The net result is that most organisations don’t feel they are getting the most from the effort invested in measurement activity. Information systems have created a
sophisticated capability, but when we work with occupiers helping them align measurement to strategy there is often found to be a disconnect between strategy, measurement and reward. Performance measurement systems are often rigid, whilst strategy needs to be increasingly flexible.
Demand value for money from your suppliers
Don’t sit on the fence: The need to save money should not be an excuse for people to cut corners and do less, less well. Instead, what is needed – out of necessity – is a reinvention the way businesses and individuals are supported in the workplace, with real estate solutions for the long term.
Economic crisis often sees a flurry of outsourcing activity, and this has been no different; Capgemini suggests that business process outsourcing will continue to rise by 14% per annum. Increasing outsourcing will lead to increasing dependence on supply organisations to deliver value. This will require developed relationship management skills, supporting management processes, such as performance measurement and collaborative planning and learning activities. However, the respective roles of
procurement and real estate in managing the supplier base are unclear in many cases. We will be conducting research during 2010 to look at the potential
positive and negative consequences of the use of performance measurement on supplier relationships. This is a critical area for real estate’s stature within the organisation going forward – the workplace is not a commodity. The process of benchmarking, in the
widest sense, forces occupiers to re-think expectations of their workplace. Giving customers exactly what they want is often the most efficient solution: if a building, an estate or a business park is transformed into a ‘place’ it will perform better; if employees like their workplace, so to will employers. With the increasing need to provide
data for compliance purposes it is easy to see data as a burden, rather than an asset. However, having the right information, including data on the external environment, will be essential for corporate real estate and facilities managers to adapt to the multi-faceted opportunities and challenges they will face going forwards, and demonstrate their value to their organisation. The need to save money should not be
an excuse for people to cut corners and do less, less well. Instead, what is needed – out of necessity – is a reinvention the way businesses and individuals are supported in the workplace, with real estate solutions for the long term.
About the author
Glenn Corney is a director at IPD Occupiers, a leading independent provider of property performance measurement for corporate real estate and facilities management. He is also a member of PM Select’s Editorial Advisory Board.
12 l Property Management Select l july/august 2010 l
www.pm-select.co.uk
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