Asset Optimisation | Turner & Townsend
consuming, costly, and an exercise that needs to be constantly repeated. A more efficient approach can involve the use of strategic modelling, using benchmarking data to form a view. Using this method, the current backlog and future liabilities for life cycle investment can be estimated.
3 Rank the portfolio With models completed, how
does an organisation decide which repair or planned improvement to prioritise? A building prioritisation methodology based on both a building’s performance and its importance to the business can help to direct attention. The ‘performance’ factor for a
comes to managing their property portfolio strategically. Often, they will not have a comprehensive body of useful data linked to the condition of their assets and won’t have detailed records of what they have invested historically. This creates risk to the organisation. One approach might be to carry out condition surveys for the entire portfolio, but it can take an organisation with a large portfolio years to collect the relevant data. Such a bottom up approach is time-
NIGEL HERBERT
l Nigel Herbert is responsible for leading Turner & Townsend’s asset optimisation proposition. He is a professional consultant who specialises in the provision of asset and facilities management technical advice. Experience gained over the past 20 years has involved advising a wide range of prestigious organisations bridging both the public and private sectors.
Nigel has also authored a number of technical articles, and is a recognised speaker.
global-opportunity.co.uk
building will vary from company to company. A supermarket chain will have different requirements to a bank or local authority; however, the approach is universally applicable. These are some of the factors that can be included in the measurement of performance, with weightings varied depending on the particular company; condition, cost of the space, energy consumption and suitability of design/layout. Similarly, ‘importance’ will be a weighted combination of factors which could include; profitability, revenue generation of the occupants or use, business criticality and risk factors.
Combining performance and importance will give every single building in the portfolio a ranking, which can then be used to inform decisions about where money is best invested, or where to focus further activity, or whether to dispose of the property.
4 Create a wish list
The next step is to consider the wish list of projects across the portfolio.
Furnish the person responsible for each part of the property portfolio with the ranking for each property. This should identify buildings that are in need of attention – and alert them to which ones are of lower priority. Then ask them for information about each project, which may range from replacing air handling units, to refurbishment or office moves. An important element at this stage is to drill down to find out why a
project is required. Is it down to life cycle replacements, to improve a building’s energy efficiency or to assist business expansion? Ranking projects against criteria to
determine their impact on alignment to core strategic objectives will ensure available funds are prioritised to maximise benefit.
5 Capital planning
Investment can now be focused on where it can bring the biggest business benefits. This is where a software solution comes in. Turner & Townsend has developed intelligent software that can rank the wish list of projects based on available funds and the prioritisation at a portfolio, building and project level. The outcome is a robust long-term
plan of recommended investment. For some organisations, this is a way of getting more from the same amount of expenditure, for others, it can be a way of cutting back whilst optimising positive outcomes for the business. In some cases, this really could be a way of getting more for less.
At the same time, the organisation is monitoring the condition of the portfolio and mitigating the risk from failures to business-critical parts of the portfolio.
6 Refine and re-prioritise The process outlined should
be considered an iterative one. Year-on-year, there will be more information, enabling a greater accuracy of modelling and the decision-making benefits can be further improved. Inevitably, the business drivers
and goals will change, and the property portfolio will need to support this evolution. Asset optimisation is a strategic tool for appreciating the potential magnitude of cost and risk associated with property and ensuring that available funds are directed to maximise benefit. It provides a holistic approach to supporting property and driving value in the long term.
GO
FURTHER INFORMATION For more information about asset optimisation please contact Nigel Herbert at nigel.herbert@
turntown.com
ISSUE 01 | GLOBAL OPPORTUNITY 2014 149
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