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This paper presents a new Value Adding Management (VAM) model that aims to support decision makers in identifying appropriate interventions in buildings, other facilities and services that add value to the organisation, to manage its implementation, and to measure the output and outcomes. The paper builds on value adding management theories and models that use the triplet input-throughput-output, a distinction between output, outcome and added value, and concepts, theories and data on the impact of interventions in corporate real estate and facility services, change management and performance measurement. Furthermore, input has been used from a cross-chapter analysis of a new book in which 23 authors from five different European countries present a state of the art of theory and research on 12 value parameters: satisfaction, image, culture, health and safety, productivity, adaptability, innovation, risk, cost, value of assets, sustainability and Corporate Social Responsibility. The new VAM model follows the steps from the well-known Plan-Do-Check-Act cycle, which are supported by various tools that were found in the literature or came to the fore in the state-of-the-art sections. In order to be able to select appropriate interventions in the Plan-phase, this paper includes a typology of typical interventions in corporate real estate and facility services that may add value to the organisation. The Check-phase is supported by an overview of ways to measure the 12 value parameters and related Key Performance Indicators. The new Value Adding Management model connects Corporate Real Estate Management (CREM) and Facilities Management (FM) with general business management in order to align CREM/FM interventions to the organizational context and organizational objectives. The VAM model opens the black box of input-throughput-output-outcome and is action oriented due to the connection to various management and measurement tools.
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Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Value Adding Management of buildings and facility services in four steps
Theo van der Voordt
Delft University of Technology – Faculty of Architecture, Dpt. of Management in the Built
Environment. E: D.J.M.vanderVoordt@tudelft.nl
Per Anker Jensen
Technical University of Denmark. E: pank@dtu.dk
Jan Gerard Hoendervanger
Hanze University of Applied Sciences, Groningen, Netherlands. E:
j.g.hoendervanger@pl.hanze.nl
Feike Bergsma
Saxion University of Applied Sciences, Deventer, Netherlands. E: f.h.j.bergsma@saxionl.nl
ABSTRACT
This paper presents a new Value Adding Management (VAM) model that aims to support
decision makers in identifying appropriate interventions in buildings, other facilities and
services that add value to the organisation, to manage its implementation, and to measure the
output and outcomes. The paper builds on value adding management theories and models that
use the triplet input-throughput-output, a distinction between output, outcome and added
value, and concepts, theories and data on the impact of interventions in corporate real estate
and facility services, change management and performance measurement. Furthermore, input
has been used from a cross-chapter analysis of a new book in which 23 authors from five
different European countries present a state of the art of theory and research on 12 value
parameters: satisfaction, image, culture, health and safety, productivity, adaptability,
innovation, risk, cost, value of assets, sustainability and Corporate Social Responsibility. The
new VAM model follows the steps from the well-known Plan-Do-Check-Act cycle, which
are supported by various tools that were found in the literature or came to the fore in the
state-of-the-art sections. In order to be able to select appropriate interventions in the Plan-
phase, this paper includes a typology of typical interventions in corporate real estate and
facility services that may add value to the organisation. The Check-phase is supported by an
overview of ways to measure the 12 value parameters and related Key Performance
Indicators. The new Value Adding Management model connects Corporate Real Estate
Management (CREM) and Facilities Management (FM) with general business management
in order to align CREM/FM interventions to the organizational context and organizational
objectives. The VAM model opens the black box of input-throughput-output-outcome and is
action oriented due to the connection to various management and measurement tools.
Keywords: Added value, FM, CREM, Plan-Do-Check-Act, Interventions, KPIs
Page 1 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
INTRODUCTION
If and how buildings, facilities and services can add value to an organisation is subject of
ongoing debates within research and practice in both the worlds of Corporate Real Estate
Management (CREM) and Facilities Management (FM).1, 2, 3, 4, 5, 6, 7, 8, 9 In 2009, a EuroFM
research group on “The Added Value of FM” started to review the academic knowledge on
the added value of FM. The body of knowledge was integrated in a first anthology on the
added value of FM in 2012.10 The driver behind this work was the perception that FM and
CREM have gradually shifted from primarily steering on cost reduction towards managing
facilities as a strategic resource to add value to the organisation and to contribute to its
overall performance. Since this first Anthology, various follow-up steps have been conducted
to further increase our understanding of the added value of FM and CREM (Table 1). The
findings showed that there still is confusion about the concept of added value and a lack of
tools to manage and measure the added value of corporate real estate and facility services.
This endorsed the need for a second anthology on adding value by FM and CREM. In this
second book, entitled Facilities Management and Corporate Real Estate Management as
Value Drivers: How to Manage and Measure Adding Value, 23 academics from 5 countries
and 13 practitioners from 6 countries share their insights and experiences with adding value
by Facilities Management (FM) and Corporate Real Estate Management (CREM).11
Table 1: Research on adding value – from book one to book two (selection)
Year
Action
Findings and reference
2012
First Anthology on The added value
of FM Concepts, findings,
perspectives.
Academic research on the meaning of added value and value
adding management. List of 50 definitions of added value,
classified into use/user/customer value, economic/financial/
exchange value, social value, relationship value, and
environmental value
12
2012
Setting the research agenda
Overview of relevant research topics found in various reports
and in the first Anthology on the added value of FM
13
2013
Workshop by Jensen, Van der Voordt
and Coenen to further discuss “How
to manage and measure different
value dimensions?”
Attendants interpreted added value in a different way and
found it difficult to operationalise added value in clear
dimensions, interventions and ways to measure.
2013
Exploration of how FM can add value
to organisations as well as to society.
Similarities and dissimilarities in conceptual frameworks on
the AV of FM and CREM and related stakeholders.
14
2014
Interviews with practitioners if/how
they apply the added value concept in
practice, what values are prioritised,
what interventions are implemented,
and how the outcomes are measured
User satisfaction, productivity and cost reduction were highly
prioritised. There is a need for a coherent definition of added
value and appropriate tools to measure different value
parameters.15
2015
Critical review of 21 papers from
EFMC 2013, EFMC 2014 and CIB
2014 on the added value of FM and
CREM
Good research to provide empirical evidence, with a focus on
the benefits of interventions for particular stakeholders. Lack
of integrated analysis including sacrifices (time, money,
risks), and which stakeholders benefits most and least of
particular interventions. Only few papers discussed the
implementation of change. Lack of before-after evaluations.
Insufficient building on former research. No consistency in
definitions and operationalisations.
16
2016
New book, entitled “Facilities
Management and Corporate Real
Estate Management as value drivers:
how to manage and measure adding
value”, edited by Per Anker Jensen
and Theo van der Voordt
Part I opens the black box of input -> throughput -> output ->
outcome -> impact/added value by discussing a taxonomy of
six types of interventions, the process of aligning facilities to
corporate strategies, and 12 value parameters. Part II presents
the state-of-the-art of concepts and research findings for each
value parameter and ways to manage and measure. Part III
presents a new Value Adding management model and ends
with reflections, conclusions and recommendations.
17
Page 2 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
This paper presents a Value Adding Management (VAM) model that was developed in part
III of the book.18 The VAM model is based on a review of the literature and a cross-chapter
analysis of part II of the new book and aims to support decision makers in identifying
appropriate interventions to add value to the organisation, how to manage its implementation,
and how to measure the output and outcomes.
VALUE ADDING MANAGEMENT MODEL
Terms like added value, adding value and value adding management are widely used in
business and management literature. The industrial consultant Carlo Scodanibbio19 calls
VAM the philosophy of the second industrial revolution and the guiding light for the year
2000 industries. In manufacturing related literature “Value Adding Management” or VAM is
often used in a way close to Lean Management with a focus on eliminating non-value adding
or “waste” activities. However, VAM is also seen as part of an overriding strategy, where the
corporate mission is what and VAM is how20 and “adding value” refers to why. The
development of a new Value Adding Management model started with a transition of the
what-how-why triplet into a simple process model according to the widely used triplet of
input-throughput-output and extended by outcome - impact/added value:
Input → Throughput → Output → Outcome → Impact = Added Value
In order to integrate VAM of buildings and facility services in business management and to
make the VAM model more instrumental and applicable as a decision-support and
management tool, this simple model has been extended to a more elaborated VAM model,
see Figure 1. Because the Plan-Do-Check-Act (PDCA) cycle – also known as the Deming
cycle - is widely applied to support total quality management, this cycle has been used as a
leading principle to elaborate the original, simple VAM model.
Figure 1: New Value Adding Management model21
The cyclic character emphasises that value adding management is or should be a continuous
process. Evaluation of realised output/outcome/added value may be a starting point for new
interventions.
Page 3 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
The VAM model corresponds with some main ideas behind the Accommodation-Choice
model22. This model has been developed to support decision-makers in creating a successful
accommodation policy or an improved work environment that fits with the organisational
objectives and internal and external constraints and balances the needs of all stakeholders The
Accommodation-Choice model suggests that each facilities change process should start with
identifying why an intervention might be needed and what conceptual choices regarding
facilities change are expected to optimally facilitate the organisational strategy and current
and future user profiles. It also stresses that all steps - from initiation to defining most
appropriate interventions, its implementation and after care - require continuous monitoring,
evaluation and coordination.
The VAM model also corresponds with the so-called logic model, also known as a logical
framework or program matrix and theory of change. The logic model has been developed in
the early seventies as a tool to evaluate the effectiveness of a program and includes four
components22, 23:
- Inputs: resources such as money, staff, equipment;
- Activities: the activities that are included in the program e.g. the development of
procedures or training programs;
- Outputs: what is produced, for instance documents or the number of people that were
trained;
- Outcomes/impacts: the changes or benefits that result from the program, e.g. increased
skills of knowledge.
However, what is missing here is a clear link with FM and CREM, a link with organisational
objectives is not explicitly mentioned.
The next sections present how current insights and tools can be used to support the four steps
of the PDCA-cycle.
Plan
The main actions in the Plan-phase are to identify the drivers to change i.e. to define if there
is a gap between the desired and actual performance of the organisation and the
accommodation, facilities and services, and to define which interventions may result in
improved performance. The Plan phase ends with clear decisions about which interventions
will be implemented and how to implement them. Box 1 presents a typology of six types of
CREM and FM interventions that may add value to an organisation:
1. Changing the physical environment (on different scale levels: portfolio, building, space)
2. Changing facilities services
3. Changing the interface with core business
4. Changing the supply chain
5. Changing the internal processes
6. Strategic advice and planning
Page 4 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Box 1: Typology of possible CREM and FM interventions to add value to an organisation25
1. Changing the physical environment
The physical environment includes buildings, internal and external spaces, technical services (installations),
indoor climate, fitting out, furniture, workplaces, technology, artwork and ambience. Typical examples of
changing the physical environment include:
Moving to another location (new or existing building)
New building
Rebuilding, refurbishment or adaptive re-use i.e. conversion to new functions
Changing workplace layout, e.g. conversion to an activity-based work setting
Changing appearance, e.g. to support corporate branding
2. Changing facilities services
In the European standard on FM taxonomy26 the facilities services are divided in a) demand related to Space &
Infrastructure (including space/accommodation, outdoors, cleaning, workspace and primary activities specific)
and b) demand related to People & Organisation (including HSSE (Health, Safety, Security and Environment),
Hospitality, ICT (Information and Communication Technology), Logistics, Business Support (Management
Support, and Organisation specific). The standardised facility products Space and Workplace are partly
overlapping with Changing the physical environment, but the physical environment basically concerns tangible
artefacts, while the facilities services mostly concerns intangible service activities.
3. Changing the interface with core business
When organisations reach a certain size and complexity, FM and CREM are typically established as separate
functions or departments. The interface between the core business and FM/CREM is defined specifically in each
organisation and is not static. If the FM/CREM function is successful, it will in many cases get the opportunity
to increase its area of responsibility. This is often part of a centralisation of the responsibility from several parts
of the core business organisation to the FM/CREM function, thereby creating opportunities for economies of
scale and better alignment of Building and Facility services (professional approach towards FM/CREM).
4. Changing the supply chain
FM is in most cases organised as a mixture of an in-house FM-function and a number of external providers of
facility services, which constitutes a FM supply chain. The situation is to some degree similar for CREM, but
the CREM supply chain is more project-related and mostly consists of consultants, designers and contractors.
Changes in the supply chain are primarily changes in the delivery process, but they often also have
consequences for the incentives for the different parties and the management of the mutual relationships
between the parties. The number of external providers varies a lot depending on the type of company and the
sourcing strategies. Outsourcing in FM has over the last decades been constantly increasing in most countries
and is a common way to achieve cost reductions and flexibility (or also professional support). Even though the
general trend is towards more outsourcing in most countries, there are also many examples of insourcing of
former outsourced services.
5. Changing the internal processes
What we deal with here is increasing the efficiency of operational processes within a specific organisation
without necessarily changing, neither the product, nor the supply chain. The organisation can be in-house or an
external provider. Within management theory and practice there are a number of concepts aimed at increasing
productivity and process efficiency, for instance Total Quality Management, Business Process Re-engineering,
Benchmarking and Lean Management. Typical elements in such concepts are eliminating waste, implementing
new technological solutions and optimising the work flow. Many companies conduct projects by using such
concepts and the FM function is often included in the project. Many provider companies also work
systematically with developing process innovations. This is also the case for some of the larger in-house
organisation. The use of advanced IT systems, FM Information Systems and the use of big data can be very
helpful here.
Page 5 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
6. Strategic Advice and Planning
Strategic advice and planning are essential elements in the strategic and tactical activities of FM and CREM.
The areas for strategic advice and planning can cover many different aspects and they will typically change over
time according to what is of strategic importance for the company. A typical area of strategic advice to top
management concerns the development of a long-term strategy for the corporate property portfolio. This
requires a profound and up to date understanding of the overall corporate strategy to identify the future demand
for property and close dialogue with evaluation of options, scenarios and proposals concerning the future supply
of property. Another typical area is investment planning and feasibility studies, which concerns decision support
on choosing between alternative options for fulfilling a need for changes in the capacity of space or similar. This
can for instance be whether the company should extend existing facilities, relocate, build new building, sell or
buy property, rent or rent out space.
End of box 1
It is important to define the objectives of intended interventions in a SMART way (Specific,
Measurable, Achievable, Relevant and Time-bound) and to define the conditions or
prerequisites that should be taken into account. It is also necessary to make a clear distinction
between the organisational strategy and the FM/CREM strategy. Both require a strategic
analysis and both may reveal drivers for change. If for example an organisation wants to
enhance innovation, it may seem obvious to invest in a new interior design that may stimulate
creativity and support exchange of knowledge. However, reducing real estate costs in order to
increase the R&D budget might be more effective. This example illustrates that there may be
different ways to use FM/CREM as a means to contribute to one or more organisational
goals.
Tools to identify the need for change, objectives and prerequisites
Analysing the context of value adding management may start with exploring the different
roles, interests and power of stakeholders involved, using stakeholder analysis. It is relevant
to make a distinction between external and internal stakeholders and end users.27 Furthermore
a SWOT analysis can be applied to analyse the need and direction for change. It is
recommended to conduct a SWOT analysis of both the organisation and the FM/CREM
processes and products to identify drivers for change within the domain of FM/CREM.
The value proposition model of Treacy and Wiersema28 may provide a useful starting point to
relate a corporate strategy to particular FM/CREM value parameters. According to this model
each organisation should make a fundamental strategic choice to focus on one out of three
different value propositions: product leadership, customer intimacy, or operational
excellence. This choice influences the selection of FM/CREM value drivers: product
leadership stresses the FM/CREM contribution to innovation, whereas customer intimacy
demands a focus on customer satisfaction; and operational excellence requires a productivity-
oriented approach.
Another framework to support the Plan-phase is the one by Nourse and Roulac29. They link
nine possible ‘driving forces’ behind a corporate strategy (e.g. market needs, technology,
return on investment) to 7 components of competitive advantage (e.g. attracting and retaining
customers, efficient business processes), 8 strategic accommodation choices (e.g. cost
reduction, support of human resources, value creation of real estate) and 14 operational
decisions (e.g. regarding the location, number of m2, ICT, ownership and risk management).
Page 6 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Tools to define required interventions and to select the most appropriate ones
In the second part of the Plan-phase, the main question is how to translate the strategic focus
and smart goals into appropriate and valuable FM/CREM interventions. To identify the most
appropriate interventions it is recommended to create a FM/CREM strategy map. This tool,
developed by Kaplan and Norton308, may help to identify critical success factors within
chains of means/ends, which are crucial for adding value as defined in the strategic focus.
The Balanced Scorecard31 is a widely used tool to link strategic analysis to critical success
factors and KPIs.
Strategic criteria are a prerequisite to select the most effective FM/CREM interventions, i.e.
the option(s) with highest benefits and lowest costs and risks. Decision support tools such as
business cases can be used to select the most appropriate interventions and to support
decision making processes.
Do
The Do-phase encompasses the implementation of the proposed interventions and
management of the change process. Decisions to be made include who should be involved in
the process and how, time schedules, how to cope with resistance to change, and how to cope
with the different needs of different stakeholders. According to the strategic management
model of Johnson et al.32 the purpose of the Do-phase is to put ‘strategy in action’. A major
challenge is to keep focus on the initial goals regarding adding specific values.
Implementation processes tend to develop their own dynamics, which can easily shift the
focus from long-term strategic organisational goals to short-term tactical and operational
goals of the participants.
Essential aspects of VAM are the strategic alignment between FM/CREM and the core
business, stakeholder management and relationship management. Aligning implies moving in
the same direction, supporting a common purpose, being synchronized in timing and
direction, being appropriate for the purpose and in a passive sense, the absence of conflict. 33
Figure 2 connects the terms alignment and added value to show that corporate real estate only
adds value when its supports the organisational objectives. It shows that alignment of the
accommodation and building related facilities and services requires a thorough understanding
of the organisational strategy and its structure, culture, primary processes and so on. When
the FM/CREM department develops its mission, vision and strategy, this should be done in
connection to the mission, vision and strategy of the organisation. FM/CREM interventions
should not only be checked on its impact on FM/CREM performance and organisational
performance, but also and in particular on its impact on attaining organisational goals and as
such on its adding value to the organisation.
Page 7 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Alignment
Mission
Vision
FM/CREM
objectives
Strategic, Tactical and
Operational choices
regarding
-
Products & services
-
Business processes
-
Staff
-
Structure
-
Shared values
-
Management style
Etc.
Organisational performance
FM/CREM performance
Strategic, Tactical and
Operational
Choices
regarding
-
Location
-
m2, total and per unit
-
Spatial lay-out
-
Interiror design
-
Technical services
-
Use of space
Etc.
Added Value by FM and CREM
by its contribution to attaining
organisational objectives
Figure 2: Connections between alignment and adding value34
Tools to support the implementation of change
Change management has evolved as a specialist discipline and has produced many different
tools. A tailor-made approach should be designed that fits with the characteristics of the
intervention (complexity, budget, risks, time frame), the goals, and the social/organisational
context. It is also in the Do-phase recommended to conduct a stakeholder analysis to define
who should be involved in the process, in what way, and what their interests are. These
stakeholders may or may not be the same as in the Plan-phase. The stakeholder analysis
should take into account how different stakeholders perceive change, for instance by using
the five-colours framework of De Caluwé and Vermaak35. This framework links five
different change paradigms to five different management process approaches. Since a change
approach has to fit with the expectations and needs of different participants and
characteristics and goals of the intervention, it is often wise to combine two or more
approaches. A blue-print approach to ensure that a refurbishment project will be finished in
time and within budget might for instance be combined with a red-print approach for
involving users effectively in the design process.
How to organise change successfully, how to involve the end users, and how to avoid or
reduce resistance to change is a major component of any change management approach.
According to Kreitner and Kinicki36 there is no universal strategy for dealing with resistance.
However, communication is always essential and should at least include four elements: 1)
inform employees about the change (‘what’), 2) inform employees about the rationale
underlying the change (‘why’), 3) organise meetings for answering questions that employees
may have, 4) let employees discuss how the change may affect them. The same principles
can be applied to other stakeholders.
Page 8 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Check
In the Check-phase the costs and benefits of the intervention(s) and its impact on the
performance of the organisation and its facilities has to be measured, both during the change
and ex-post, after the implementation of the intervention(s). To be able to measure whether
the performance has been improved, an ex-ante measurement before the intervention is
implemented is needed as well (baseline measurement). It is also necessary to evaluate if the
changed performance fits with the organisational strategy, mission, vison and objectives and
as such adds value to the organisation. For example, if an FM intervention results in a higher
ranking on “green buildings” but the organisation was fully satisfied with the original
ranking, this higher ranking does not add any value to the organisation. In case of an
organisational focus on product leadership, customer intimacy, and the need to cope with the
“War on talent”, cost reducing interventions that conflict with these prioritised values do not
add value in the end either, because the trade-off between benefits and costs will be negative.
However, in case of a focus on operational excellence and a good price the same cost
reducing interventions may be very appropriate.
Tools to check interventions on its aimed outcomes and impact
Table 2 presents a selection of possible interventions and tools to measure the output and
outcomes that came to the fore in part II of the new book. Usually various measuring tools
are combined in a so-called Post-Occupancy Evaluation (POE), also called evaluation of
buildings-in-use. 37, 38
Regarding KPIs, a distinction should be made between output indicators to measure
FM/CREM performance and outcome indicators to measure organisational performance.
Figure 3 shows examples of input -> output -> outcome -> added value chains to illustrate the
complexity of cause-effect relationships between interventions, FM/CREM performance,
organisational performance and added value.
For example, an outdated building or a building that cannot accommodate the growth of a
company may be a driver to move to another building (input in first example of Figure 3).
The move itself has to be managed and implemented (not shown in Figure 3). If the
appearance of the new building or an existing building that is adapted to the requirements of
this organisation fits better with the aimed image, this building can contribute to an improved
corporate identity (output). This may subsequently lead to an improved organisational
performance regarding an improved brand recognition and a higher market share. Finally, if
these positive outcomes support the organisational objectives and the benefits outweigh the
costs of moving and possible sacrifices such as longer travel distances for various staff
members, the intervention actually adds value to the organisation.
Assessing the added value of FM/CREM interventions should not only include ‘objective’
performance measurement and benchmarking, but also a ‘subjective’ evaluation whether the
improved performance really is perceived as adding value to the organisation, by the clients,
customers and end users, and society.
Page 9 of 16
Van der Voordt, T., Jensen, P.A., Hoendervanger, J.G. & Bergsma, F. (2016)
Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Table 2: Examples of interventions, assessment methods and KPIs39
Value
Interventions
Tools to measure impact
KPIs (Top 3)
Satisfaction
More suitable spatial layout.
More collaborative spaces.
Better indoor climate.
Employee surveys.
Interviews.
Walk-throughs.
Employee satisfaction with:
- Workplaces
- Collaborative space
- Indoor environment
Image
Move to a new location.
High quality surroundings.
Reorganisation of spatial layout.
Stakeholder surveys.
Group discussions.
Analysis of social media
Perceptions of Corporate
identity, Corporate value,
Corporate brand
Culture
More open settings to support
collaboration.
Shared desks/places.
New behavioural rules.
Employee surveys.
Observations.
Interviews.
Workshops.
Perceptions of
- Corporate culture
- Match between culture
and work environment
Health &
Safety
Higher level of personal control.
Ergonomic designed furniture.
Better indoor air quality
Capture and react on
complaints.
Workplace H&S assessment.
Sick leave.
Number of accidents.
% of satisfied employees.
Productivity
Higher level of transparency to
support collaboration.
Facilities for concentrated work.
Ergonomic furniture.
Observations.
Measuring time spent or
saved.
Employee surveys.
Output per employee.
Perceived support of:
- Individual productivity
- Team productivity
Adaptability
Surplus of spaces, load-bearing
capacity, installation capacity, and
facilities.
Removable and relocatable units
and building components.
Building performance
assessment, i.e. using Flex
2.0 or Flex 2.0 Light.
Observation of adaptations
of the building-in-use.
Weighted assessment values,
i.e. scores on scales of Flex
2.0 or Flex 2.0 Light.
Innovation
and Creativity
Better visibility and overhearing.
Different types of meeting spaces
and informal areas.
Virtual knowledge sharing ICT.
Spatial network analysis.
Social network analysis.
Logbooks on knowledge
sharing activities.
Level of enclosure/openness.
Average walking distance.
Diversity of workspaces and
meeting places.
Risk
Emergency and recovery plans.
Back-up supply systems.
Insurances.
Measuring time of business
interruptions.
Measuring risk expenses
Uptime of critical activities.
Total risk expenses.
Total insurance expenses.
Cost
Cost saving by
- Establishing FM department
- Process optimization
- Outsourcing
Accounting with an
appropriate cost structure.
Measuring space, number of
workstations and f.t.e.
Cost/m2, workstation or f.t.e
of Total FM, Space,
Workplace
Value of
Assets
Disposal of CRE.
Sale and lease back.
Improve owned CRE by adaptive
reuse.
Estimate annual potential
gross income and annual
operational expenses.
Market valuation.
Estimate cost of new
development.
Capitalization.
Market value.
Cost of new development.
Sustainability
Sustainability framework.
Reduction of energy
consumption.
Reduction of travel and transport
activities.
Critical success factors from
corporate strategy
Survey with multi-criteria
scoring methodology
Continuous review process.
Consumption of primary
energy and water.
C02 emissions.
Access to transport.
Corporate
Social
Responsibility
Employing challenged workers.
Promoting public transport.
Circular purchasing model.
Depends on corporate CSR
policy and target.
People: diversity of staff
Planet: Utilization of space
Profit: Total FM/CREM cost
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Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
6
(1), 42-56.
Figure 3: Examples of input -> output -> outcome -> added value chains40
A common way to evaluate KPIs is to conduct performance benchmarking internally or with
external partners. The benchmarking process can be carried out according to EN15221-7.41
Benchmarking is an important tool to control cost and to find areas of improvement in
FM/CREM, but can also be used to compare other outcomes such as customer satisfaction or
employee satisfaction.42
Act
The Act-phase is quite similar to the Plan-phase but starts from a different situation. Whereas
the Plan-phase may start with an analysis of changing internal or external circumstances or a
strategic analysis of the strengths and weaknesses of the organisation and FM/CREM
products and processes, these factors are already taken into account in the Act-phase. When
all objectives have been attained and maximum value has been added, the Act-phase may
include consolidation of the new situation, until new drivers to change come to the fore. If the
objectives are not sufficiently attained or not optimally, or if too many negative side effects
come to the fore, new interventions or broadening or strengthening of earlier interventions
should be considered. Another option is to reconsider the objectives. It may happen that the
aimed performance was not realistic and feasible within the current conditions. Moreover the
context or conditions of the original objectives may be changed, which might force the
organization to change its organizational and/or FM/CREM strategy. If new or revised
interventions have to be implemented, the Plan- and Do-phases start again.
Box 2 presents a case to briefly illustrate how the four steps can be applied in practice. In
addition to illustrate the PDCA-cycle, this case also illustrates that in practice many different
terms are used to express the aimed output and outcome of interventions in buildings,
facilities and services. None of the added values from the list of 12 value parameters in the
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Value Adding Management of buildings and facility services in four steps.
Corporate Real Estate Journal
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(1), 42-56.
new book and listed in Table 2 are mentioned here using the same terminology. However, in
terms of Table 2 the underlying aimed added values in this case are to improve teachers’
productivity and job satisfaction and to improve service quality and as such indirectly to
improve customer satisfaction and school image as well.
Box 2: Application of the VAM-model: implementation of a new concept for FM in schools43
Plan:
The driver to facilities change in this case was to relieve the managers and teachers in the school for spending
time on support activities and to concentrate on educational activities. The teachers and the managers in the
schools had for many years been more and more stressed by new demands and the management had turned into
jacks of all trades, who should handle all tasks in and around the school. This lead to a project testing the effect
of separating the activities into the core business of education and teaching the children and the activities
focused on creating the best supportive environment for the primary processesFacilities Management. The
intervention was to transfer the FM-related support staff at the schools to the FM department, who should be in
charge of and improve the services and allow the school staff to focus on their core business.
Do:
The FM department initiated a pilot project at one school where they created a professional service organisation
based on detailed knowledge about the needs of the schools. They established a service reception as the centre
of the contact between the school and the service organisation (actually a ‘front office’). The reception became a
service point where the school managers, teachers and students could receive the help and service they
demanded. The FM department trained the support staff to become service and customer oriented as part of the
FM team, which could supplement and replace each other. The tasks, which the FM department took over,
included guarding, building maintenance, cleaning, taking care of the external and internal environment,
administration, procurement, copying, messenger service, etc.
Check:
The evaluation of the case showed that the head master of the school had changed his time used on pedagogics
versus FM related activities from 60/40% to 85/15%. Furthermore, the status of the teachers had increased,
recruiting new teachers had become easier, student satisfaction had risen, and a better physical environment
with fewer complaints about environment and cleaning, reduced sickness, better service for the same money and
an improved maintenance of the buildings had been achieved. Formerly the support staff was a group with low
priority in the schools and by transfer to the FM department they were upgraded and offered more varied tasks.
The introduction of FM also had as a result that the schools got more positive instead of negative publicity in
the local press and the outside world.
Act:
Based on the results of the pilot project the municipality decided that the FM department should implement the
new FM concept in all schools in the municipality. Agreements were made with each school in which
responsibility and quality and amount service deliveries to the school in question were specified together with
agreed development goals.
End of box 2
CONCLUDING REMARKS AND FUTURE PERSPECTIVES
In this paper the simple input-throughput-output view on adding value by CREM and FM has
been elaborated into a more sophisticated Value Adding Management model to make the
VAM cycle more instrumental and applicable in practice. The model integrates available
tools in a clear step-by-step approach. Besides it makes a clear distinction between
FM/CREM performance (output) and the contribution of FM/CREM to organisational
performance (outcome). As such it may help to explore of various interventions in connection
to organisational objectives (added value).
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Corporate Real Estate Journal
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(1), 42-56.
In order to be able to define the added value of an intervention by FM/CREM, it is important
to measure the outcomes and impact of any intervention, ex-post and preferably also ex ante,
as input to a business case.44 Clear performance indicators make it possible to assess how
well people or facilities perform. The outcomes can provide the inspiration to achieve higher
levels of effectiveness, efficiency, quality, and competitiveness in an ever changing society.
As such, performance measurement is an important aid for making judgments and decisions,
which can help managers to answer five important questions: 1) where have we been; 2)
where are we now; 3) where do we want to go; 4) how are we going to get there; and 5) how
will we know that we got there.45 Besides the need to operationalise the various value
parameters in SMART performance indicators), performance measurement should be precise
about the performance of what, e.g. people, facilities, or services.
Apart from clear performance indicators, it is also important to be able to define the causes of
high or low performance, and to understand which changes are needed to improve a specific
kind of performance. De Vries et al.46 concluded that cause-effect relationships are difficult
to prove, due to the impact of many interrelated input factors, and the way interventions are
implemented. It is an ongoing challenge to further assess the 12 selected value parameters on
what we know, what we still need to know, and what Key Performance Indicators could be
applied to measure the different added values. An interesting next step could be to explore
the similarities and dissimilarities between various FM/CREM models and generic
management models and to integrate “the best of” into the new VAM model. This requires
intensive collaboration with other support functions and knowledge fields such as HR, ICT,
Finance, Marketing and PR. Another next step could be to connect the tools to measure
FM/CREM and organisational performance and related KPIs that are presented in Table 2
with other lists of KPIs such as the ones mentioned by Lindholm and Nenonen47 and Lavy et
al.48, 49. A third topic for future research is to further elaborate input -> output -> outcome ->
added value relationships, to explore which interventions add most value and why, and to
integrate current qualitative and quantitative data-collection methods to get clear and
evidence-based pictures.
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15) Van der Voordt, T. and Jensen, P.A. (2014), Adding value by FM: exploration of management
practice in the Netherlands and Denmark. EFMC 2014, Berlin, 4-6 June 2014.
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About the authors
Theo van der Voordt is associate professor in Corporate and Public Real Estate Management
(CREM/PREM) at the Department of Management in the Built Environment, Faculty of
Architecture, Delft University of Technology. His research focuses on workplace management,
performance measurement, health care real estate strategies, adaptive re-use as a means to cope
with vacancy, and how to add value by FM and CREM. E: D.J.M.vanderVoordt@tudelft.nl.
W: www.mbe.bk.tudelft.nl; www.tudelft.nl/djmvandervoordt; www.cfpb.nl.
Per Anker Jensen is professor in Facilities Management and head of the externally funded
Centre for Facilities Management Realdania Research, Technical University of Denmark.
Before he started an academic career he worked 20 years in practice as consultant, project
manager and facilities manager. He was member of the board of EuroFM and chairman of
EuroFM’s Research Network Group in 2007 and 2008. E: pank@man.dtu.dk. W:
www.cfm.dtu.dk, www.man.dtu.dk
Jan Gerard Hoendervanger is a senior researcher and lecturer at Hanze University of
Applied Sciences in Groningen, the Netherlands. His work focuses on Corporate Real Estate
Management and workplace innovation. He is co-author of a (Dutch) textbook that integrates
Facility Management and Real Estate Management approaches. His current PhD research
regards the psychological aspects of activity-based work environments. E:
j.g.hoendervanger@pl.hanze.nl;W: nl.linkedin.com/in/jangerardhoendervanger
Feike Bergsma is a senior lecturer Facility Management and researcher at the Hospitality
Business School of the Saxion University for Applied Sciences. He has over 18 years of
practical experience within the field of Facility Management and was as such responsible for
the introduction of innovative ways of working in educational buildings, the integration of
facility organizations, and the development of new service concepts.
E: F.J.H.Bergsma@saxionl.nl;
W: http://www.saxion.edu/site/about-saxion/research-centres/hospitality/
Page 16 of 16
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... The fundamental function of FM is to manage the buildings and support services to create the ambience that supports the strategic objectives of the organization (Irizarry et al., 2014). By this function, FM is responsible to ensure that the core process of the organization is supported to achieve optimum productivity at best value for money (van der Voordt et al., 2016). Typically, the functions of FM range from strategic, tactical to operational levels. ...
... Given that the core function of FM is to support and add value to the organization, Stage 3 is directed toward assessing the contribution of FM to the hospital which should be in relation to the goals established by the FM department. According to van der Voordt et al. (2016), the outcome measures should examine the impact of FM on the organization that meets the goals established as well as the added value parameters of FM such as surroundings and meeting stakeholders needs. The outcome measures are referred to as lagging indicators in the framework because they are determined after the FM process measures have been evaluated. ...
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Recently, there has been increasing pressure to change current performance measurement and management systems from control systems to those that support learning and continuous improvement. This change requires a specific corporate culture that supports the effective operation of performance measurement and management. This paper aims to clarify the relationship between corporate culture and performance measurement and management systems. Questionnaire survey data from Czech medium and large companies were collected and analyzed by Pearson’s chi-squared test to validate the proposed hypothesis. The research findings confirmed that performance measurement and management systems of companies that devoted sufficient energy and attention to performance-driven culture are more effectively developed. Analysis of different performance-driven culture attributes revealed which are the most important ones.
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This chapter presents the findings and discussions from the case studies interviews and the questionnaire survey. In line with the procedure of an exploratory sequential mixed methods adopted by the study, the results from the qualitative case study enquiries forms the basis for the questionnaire instrument of the second stage. The chapter is presented in two parts. Part I presents the findings and discussions from the case studies interviews. Part II presents the results of two strands of questionnaire survey (see Appendix B and C). Specifically part II presents the quantitative analysis on the investigations into performance measurement techniques, the result from the exploratory factor analysis and the proposed structural equation modelling to investigate the interactions between the performance dimensions established.
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This chapter explores and reviews performance measurement literature to understand the theoretical concepts and in particular identify the gaps in performance measurement literature. The chapter is presented in three parts. The first sections examines the concept of performance measurement generally and subsequently within the context of facilities management. The second part of the chapter deals with key performance indicators. In order to gain a broader knowledge of KPIs, a review of KPIs in construction and supply chains disciplines is conducted alongside KPIs in FM. Based on the integration of KPIs from the three disciplines, KPIs for the study are selected and presented.
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Facilities Management (FM) and Corporate Real Estate Management (CREM) are two closely related and relatively new management disciplines with developing international professions and increasing academic attention. From the outset both disciplines have had a strong focus on controlling and reducing costs for real estate, facilities and related services. In recent years there has been a shift towards putting more focus on how FM and CREM can add value to the organisation. This book is driven by the need to develop a widely accepted and easily applicable conceptual framework for adding value by FM and CREM. It presents state of the art theoretical knowledge and empirical evidence about the impact of buildings and facilities on twelve value parameters: four people related values (satisfaction, image, culture, health and safety), four process and product related values (productivity, adaptability, innovation and creativity, and risk), two economic values (cost, value of assets) and two societal values (sustainability and Corporate Social Responsibility). The book also discusses how to manage and measure these values and presents a new Value Adding Management model with four steps, corresponding the Plan-Do-Check-Act steps of the renowned Deming cycle. Each step is supported by various decision-support tools. The book is research based with a focus on guidance to practice. It offers a transdisciplinary approach, integrating academic knowledge from a variety of different fields with practical experience. It also includes twelve interviews with practitioners, shedding light as to how they manage adding value in practice. This is a much needed resource for practitioners, researchers and teachers in the field of FM and CREM, as well as students at both undergraduate and post-graduate levels. The book can be ordered at Routledge: https://www.routledge.com/Facilities-Management-and-Corporate-Real-Estate-Management-as-Value-Drivers/Jensen-Voordt/p/book/9781138907188
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Purpose: To present an integrated process model of adding value by Facilities Management (FM) and Corporate Real Estate Management (CREM) that is a generalisation of existing conceptual frameworks and aims to be a basis for management of added value in practice. Background: The growing research on the added value of FM and CREM over the last decade has resulted in the development of several conceptual frameworks and the collection of much empirical data in practice. However, the practical application of current knowledge has shown to be limited and difficult. The reasons seem to be that the different frameworks are too complex and lack of common terminology and clear operationalisations of intervention-impact relationships. Approach (Theory/Methodology): A generalised Value Adding Management process model is developed based on a common cause-effect model identified in existing conceptual frameworks combined with the basic process model of input → throughput → output. The proposed model consists of interventions as input, management of implementation as throughput and added value as output/outcome. Results and practical implications: The Value Adding Management model provides a simple framework which aims at supporting the practical management and measurement of added value. A typology with six types of FM/CREM interventions is developed from earlier research. The concept of Value Adding Management is investigated and the 12 most important added value parameters are identified. Research limitations: The process model still has to be tested on its empirical validity and practical applicability. This is being done and will be presented in a forthcoming book on how to manage and measure value adding by FM and CREM. Originality/value: The Value Adding Management process model condensates research in an original and simple model with the potential to make value adding management more applicable in practice.
Thesis
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In this thesis, the ideas and concepts of Corporate Real Estate Management (CREM) are examined in terms of the contribution they could make to the process of accommodation decision by using recent cases in Dutch hospitals. CREM can be defined as the management of the real estate portfolio of a corporation by aligning the portfolio and services with the needs of the core business in order to obtain maximum added value for the business and an optimal contribution to the overall performance of the organisation. This definition assumes that accommodation can add value to the organisation and contribute to its overall achievement. Elaborating on the added value of real estate in addition to quantifying these added values and making them applicable to hospital real estate management is therefore central to this study.
Thesis
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There is a growing need for performance management and performance measurement that not only covers all aspects of an organisation, but which can be applied to various situations in a changing internal and external environment. The changing organisational and external contexts, such as the increasing demand for talented knowledge workers and changing work patterns, have led to the development of new offices that can promote social networks and interaction among employees. This PhD research focuses on both themes i.e. performance measurement of workplace change. The aim of this research is to provide a conceptual framework that visualises the impact of workplace change on employees’ responses to the new work environment and to present guidelines on performance measurement of workplace change in different contexts. Two organisations in Thailand and one organisation in The Netherlands were selected to serve as case studies. The impact of culture was explored as a contextual background. Based on literature review an overview of performance measurement systems and measures has been developed. The impact of workplace change was examined using the work environment diagnosis instrument (WODI) questionnaire which evaluates employees’ responses to the changed work environment in three areas: employee satisfaction, perceived productivity support and prioritised aspects (Maarleveld, et al., 2009). The Organisational Culture Assessment Instrument (OCAI; Cameron and Quinn, 2006) was used to assess organisational culture. National culture was measured by using the Value Survey Module 94 (VSM94; Hofstede, 1997). These conceptual frameworks on performance measurement and employees’ appraisals of workplace change can be used as a reference to provide input for further improvement of performance measurement and performance management. Samenvatting Er is een groeiende behoefte aan een meer geïntegreerde benadering en onderbouwde methoden voor prestatiemanagement en prestatiemeting in een continu veranderende omgeving, intern en extern. Om efficiënter en effectiever gebruik te maken van huisvesting en andere faciliteiten zijn veel organisaties overgegaan op nieuwe manieren van werken in een meer open en flexibele werkomgeving met gedeeld gebruik van een variëteit aan werkplekken, afgestemd op verschillende activiteiten. Dit promotieonderzoek combineert beide thema’s. Het onderzoekt meetmethoden om de effecten van veranderingen in de werkomgeving op de prestaties van de betrokken organisatie te kunnen vaststellen. Het doel van dit onderzoek is om een conceptueel kader te ontwikkelen voor de invloeden van organisatiekenmerken, activiteitenpatronen en contextvariabelen op drijfveren voor verandering, implementatie van veranderingen, en de waardering van de medewerkers. Voorts beoogt het onderzoek om inzicht te geven in bestaande meetmethoden en richtlijnen te presenteren voor het meten van organisatieprestaties onder invloed van veranderingen in de werkomgeving, in verschillende contexten. In aanvulling op een uitgebreide literatuurstudie naar methoden en systemen voor prestatiemeting zijn drie case studies uitgevoerd: twee in Thailand en één in Nederland. Ten slotte is onderzocht welke prestatiemaatstaven uit de literatuur daadwerkelijk worden toegepast in de praktijk en in welke vorm. De waardering en beleving van de veranderingen op de werkvloer door de medeweerkers is onderzocht met behulp van het werkomgevingsdiagnose-instrument WODI (Maarleveld et al., 2009). De WODI-survey meet de reacties van de medewerkers op drie manieren: tevredenheid over de organisatie, werkprocessen en faciliteiten, gepercipieerde ondersteuning van de arbeidsproductiviteit door de werkomgeving, en de top drie van als meest belangrijk ervaren aspecten. De Organisational Culture Assessment Instrument (OCAI, Cameron en Quinn, 2006) is gebruikt om de organisatiecultuur te beoordelen. De nationale cultuur is gemeten met behulp van de Value Survey Module 94 ( VSM94; Hofstede, 1997). De conceptuele kaders voor prestatiemeting en medewerkerstevredenheid over ingrepen in de werkomgeving kunnen worden gebruikt voor verder bewustwording van relaties tussen ingrepen en effecten en mogelijkheden tot verbetering van prestatiemeting en performance management. Daarmee kan de studie bijdragen aan het inzetten van huisvesting als een strategisch asset en het vinden van een goed balans tussen sturen op kosten en baten c.q. het ondersteunen van de core business, op kostenefficiency en optimaal presteren van de organisatie.
Article
Recent deregulation of laws on hospital real estate in the Netherlands implies that healthcare institutions have more opportunities to make independent accommodation choices, but at the same time have themselves become responsible for the risks associated with the investment. In addition, accommodation costs have become an integral part of the costs of healthcare. This sheds new light on the alignment between the organisation of healthcare and accommodation: care institutions themselves bear the risk of recouping their investment in real estate and high accommodation costs lead to higher rates for healthcare compared to competing institutions.In this thesis, the ideas and concepts of Corporate Real Estate Management (CREM) are examined in terms of the contribution they could make to the process of accommodation decision by using recent cases in Dutch hospitals. CREM can be defined as the management of the real estate portfolio of a corporation by aligning the portfolio and services with the needs of the core business in order to obtain maximum added value for the business and an optimal contribution to the overall performance of the organisation. This definition assumes that accommodation can add value to the organisation and contribute to its overall achievement. Elaborating on the added value of real estate in addition to quantifying these added values and making them applicable to hospital real estate management is therefore central to this study. The added values determine the transition between the different phases in the cycle of the initiation, design, construction and occupancy of the accommodation. In addition, the added value of real estate functions as a common language between the disciplines involved in the design and construction of hospital accommodation, such as the healthcare institution, healthcare manager, real estate manager and architect.In four sub-studies (1) Context, (2) Management, (3) Value and, (4) Design several concepts that contribute to a more informed decision-making on accommodation aligned with the organisation of healthcare are made applicable by elaborating on, and connecting, existing conceptual frameworks. Conceptual models from different disciplines are aligned in order to achieve an integral approach by both organisation and accommodation management. In addition to the conclusions and recommendations of the separate studies (1-4), the final result is a toolbox (PART 5) that can be used to support a decision-making process that results in a better informed real estate strategy. The instruments are tested by an assessment of recently completed hospital construction projects.The context of hospital real estateThe context in which hospitals have to make long-term decisions on their investment in accommodation is determined by political, demographic, economic, social and technological factors. Hospitals need to determine their position in relation to these environmental factors on the one hand and the interests of their internal and external stakeholders on the other. Context-mapping (Figure 2) is an instrument to analyse these stakeholder interests, the factors relating to the external environment and sector-specific trends and scenarios.The analysis of the hospital sector shows that recent changes in the political context has led to hospitals having to determine their own strengths and opportunities, thereby also taking responsibility for the risks and threats in recouping their investment in accommodation. The transfer of responsibilities implies that the real estate-related risks are transferred too, which immediately has implications for the financial position of the organisation and the access to loans and venture capital. Organisations must maintain reasonable access to the financial markets at all times in order to be able to invest when necessary. Since the deregulation of investment decisions and the implementation of integrated rates in healthcare, hospitals have become more aware of their competitive position in the healthcare market as well as their position in the region. In addition, the influence of various external stakeholders has changed. The decrease of the government’s direct influence on investment decisions and the related capacity of healthcare institutions meant an increasing influence of health insurance companies in purchasing healthcare (capacity) and banks in the financing of accommodation investment. Consequences of the changing context of accommodation decisions for hospitals are: a new positioning of the hospital within the community with associated location choices; need for accommodation choices that contribute to labour-saving innovations; need to add value by real estate to the organisation and; possibilities for anticipating changes in the organisation of healthcare.Managing hospital real estateHow hospital real estate can be optimally aligned to organisational objectives is examined by paralleling existing conceptual models of CREM models that control the quality of the organisational processes. The basic conceptual model for this is an abstraction of the European Foundation for Quality Management (EFQM) model in four steps: (1) stakeholders’ objectives, (2) the organisation’s key issues for success, (3) managing the organisation’s structure and resources; (4) improvement of the primary process. The plan-do-check-act cycle as common ground in quality management is also included in this basic conceptual model.The meta-model (Figure 3) shows how the parallel management of organisation and accommodation in three sequential steps (context, value and management) results in the design of a process (4) and a building (8) in four steps of alignment between: (A) the outcomes for stakeholders (1) and the perspectives on real estate (5); (B) the organisation’s key issues for success (2) and the added value of real estate (6); (C) managing structure and resources (3) and managing real estate (7); (D) the primary process (4), and the design of the building (8).In the integrating framework, the steps at the level of the organisation are completed by the steps of the EFQM model. The strategic, financial, functional and physical perspectives on real estate (5) can be positioned parallel to the stakeholders’ objectives (1) that are described in the EFQM-INK model. In this way stakeholder management is part of the organisational management and is translated into real estate perspectives on CREM. The perspectives on real estate are translated into real estate added values (6) as the common language that in all phases of the real estate lifecycle can be assessed. This concept of adding value by real estate is connected to the key issues for success (2) that result from the demands and wishes of society, employees, customers and the organisation’s management at an organisational level. Both the key issues for success and the added values of real estate provide input into the change management process of the organisation (3) and its real estate (7). The organisation’s change management (3) is directed by leadership and is about policy & management of the resources, including human resources and real estate. In this part of the model, different resources for production have to be balanced against each other. This results in a process that has to be implemented in a physical environment.In this model, the Designing an Accommodation strategy (DAS)-Frame is the basis for real estate change management (7). In an iterative process a match is made between demand and supply, now and in the future, resulting in a building which can support organisational primary processes. Paralleling the management of accommodation with organisational change thus leads logically to a step-by-step plan for the transformation of the accommodation. Both the processes and the building are compared with the stakeholder demands and related perspectives on real estate.In addition, a five-point scale for all items in the integrating framework is developed for a triple assessment on the stage of development of the organisation and its accommodation decisions. This triple assessment of the organisation and accommodation shows where the organisation stands, how real estate is controlled and the pursued level of ambition with a corresponding focus on product, process, system, chain or society.Adding value through hospital real estateValue is defined in this study as the valued performance of a product or service that contributes to the achievement of the goals set by the stakeholders. As a consequence, value depends on the (subjective) assessment of the stakeholders. Added values of real estate have to be defined in advance (ex-ante) to pre-set the goals of the stakeholders in order to be able to test them afterwards (ex-post) in the design.The research into the added values of hospital real estate shows that the concept of adding value through real estate fits the practice of hospitals that have recently designed and constructed a new hospital building. Applying the added values of real estate from the CREM literature to the construction of new hospitals in the Netherlands has resulted in a sector-specific definition of the added values of hospital real estate and a categorisation into three clusters. The first cluster consists of user-values such as the promotion of organisational culture and patient and employee satisfaction. This cluster is followed by the more tactically oriented production-values such as improving productivity, reducing accommodation costs and the flexibility to adapt the physical environment to new healthcare processes. The third cluster consists of future- values, e.g. the image of the building, sustainability, real estate related risks and the opportunities to use the financial value of real estate for financing primary processes.In addition to defining the added values of hospital real estate, the value-impact- matrix (Table 3) has been developed that links nine types of added value (Table 2) to the interests and needs of the stakeholders by four perspectives on real estate: strategic, financial, functional and physical. The value-impact-matrix was developed to support the alignment between the organisation’s key issues for success, the added values of real estate and stakeholders different perspectives of real estate. This instrument makes it possible to highlight the added values of real estate from different perspectives on real estate (strategic, financial, functional and physical). Table 4 shows an example of possible connections between one of the values – patient satisfaction and healing environment – to four different perspectives.Hospital real estate design assessmentOnly those design decisions that are incorporated into the final design contribute to achieving the objectives set, so the translation of accommodation targets into the architectural design is a crucial step in achieving added value by real estate. In addition to defining these values in advance, applying added value as a framework also requires an assessment to measure these values in the design and use phase. Different analytical drawing techniques used in this part of the research show how the attainment of these values in the architectural design can be tested for different aspects of patient satisfaction. Pre-set values are visualised and different design solutions compared. In particular techniques that come from space syntax provide opportunities to study aspects of user-value in the architectural design drawings. The results are promising, despite the fact that PART 4 of the study is a first exploration of the possibilities of design-assessment. The graphs that can be produced seem to give good insight into the consequences of spatial design, although the analyses are still indicative and as yet unvalidated. More validating research is needed to examine the extent to which the results of the analyses are representative in the physical built environment of hospitals. This is possible by comparing the results of design assessment with measures of user experiences in actual buildings, e.g. by building-in- use studies or so-called Post-Occupancy Evaluations (POE).Toolbox to support value adding management & designOne of the results of this research is the design of a toolbox that can contribute to the decision-making regarding accommodation for hospitals. This toolbox provides a structure for the context, value, design and management of accommodation and is intended as a reference for the alignment between real estate and the organisation of healthcare. The instruments can be used independently of each other, but can also be combined. As such, the toolbox provides guidelines for the distribution of responsibilities and tasks between the hospital board, real estate manager, healthcare managers and architects in various phases of occupancy, initiative and design.Existing frameworks as the starting pointThe case studies demonstrate the usefulness of the conceptual models of CREM in matching accommodation for hospitals and the organisation of healthcare. The model for context-mapping provides a starting point for getting a grip on the position of real estate in the dynamic context of hospitals. The arrangement of different conceptual models in the meta-model and the link to the EFQM model as an abstract description of the organisation results in a roadmap in which the accommodation and organisation of healthcare can be coordinated iteratively. While the meta-model at the level of the CEO provides an overview and outline of the considerations to be made, the integrating framework is a comprehensive tool for real estate managers to further elaborate on these various steps. Generic values from the literature are discussed and translated into the sector-specific added value of hospital real estate. In addition, design assessment makes it possible to test various aspects of pre-set values already before the design is actually constructed.Transdisciplinary approach to accommodation and organisation of healthcareAnother important contribution made by this research to the scientific debate is making the link between existing CREM models and conceptual frameworks from quality management and spatial quality. The toolbox supports decisions on real estate for hospitals in making connections between existing knowledge from different disciplines. The addition to existing frameworks is therefore aimed at connecting the various disciplines, creating a new basis in which every professional such as real estate managers, healthcare managers, medical specialists and the hospital board can contribute to a better balance between accommodation and healthcare. On a conceptual level common principles from real estate management and the organisation of healthcare are aligned in the meta-model in four steps (context, value, manage, design). On a practical level the added values of real estate are to be regarded as a common language between the different disciplines.Focus on quality of organisation, accommodation and spatial designThe connection between the disciplines and conceptual models is found by looking at the quality of both the organisation, accommodation management and spatial design. First, quality models are used to conceptualise, characterise and describe the organisation and its processes. In addition, existing models from the CREM literature are positioned relative to each other by using two basic principles of quality management and in this way implicitly looking at the quality of the accommodation parallel to the organisation and its primary processes. How the added value of real estate can be connected to spatial quality is then examined. The classification of added value in user-value, production-value and future-value turns out to be a useful clustering. This opens a window to considering the added value of real estate as the realisation of quality, as perceived by the stakeholders. With this in mind, consciously managing and integrating the added values of real estate with a focus on the quality of the organisation, accommodation and spatial design can be seen as the answer to the main research question of this thesis.RecommendationsIn the dynamic context in which hospitals make real estate investments, the hospital board as central stakeholder is responsible for balancing the interests of the different stakeholders; the establishment of accommodation goals; the alignment of accommodation goals to the organisation’s mission and vision; and the assessment of whether all these goals are achieved in the design of the hospital building.An integrated development of organisational management and real estate management is recommended in order to align accommodation management to the vision, mission and goals of the hospital organisation.Managing hospital accommodation requires a balanced analysis of the potential added value of real estate. Important values include: user-values such as improving the organisational culture and satisfaction of patients and employees; production-values such as reducing accommodation costs and increasing productivity and use-flexibility; future-values such as reducing real estate risks and increasing financial possibilities, supporting the image of the organisation and sustainability.Managing hospital accommodation requires careful consideration of the interests, preferences and requirements of all stakeholders and perspectives on strategic choices, financial considerations, user perspective and the physical possibilities of real estate.Achieving added value from real estate requires the ex-ante formulation of accommodation targets and ex-post assessment of whether these objectives have been met. This assessment of accommodation goals in an architectural design demands pre-construction design research by floor plan analysis in which the values are made visible and measurable and as such part of the design decision process.
Book
The Handbook of Practical Program Evaluation provides tools for managers and evaluators to address questions about the performance of public and nonprofit programs. Neatly integrating authoritative, high-level information with practicality and readability, this guide gives you the tools and processes you need to analyze your program's operations and outcomes more accurately. This new fourth edition has been thoroughly updated and revised, with new coverage of the latest evaluation methods, including: Culturally responsive evaluation Adopting designs and tools to evaluate multi-service community change programs Using role playing to collect data Using cognitive interviewing to pre-test surveys Coding qualitative data You'll discover robust analysis methods that produce a more accurate picture of program results, and learn how to trace causality back to the source to see how much of the outcome can be directly attributed to the program. Written by award-winning experts at the top of the field, this book also contains contributions from the leading evaluation authorities among academics and practitioners to provide the most comprehensive, up-to-date reference on the topic. Valid and reliable data constitute the bedrock of accurate analysis, and since funding relies more heavily on program analysis than ever before, you cannot afford to rely on weak or outdated methods. This book gives you expert insight and leading edge tools that help you paint a more accurate picture of your program's processes and results, including: Obtaining valid, reliable, and credible performance data Engaging and working with stakeholders to design valuable evaluations and performance monitoring systems Assessing program outcomes and tracing desired outcomes to program activities Providing robust analyses of both quantitative and qualitative data Governmental bodies, foundations, individual donors, and other funding bodies are increasingly demanding information on the use of program funds and program results. The Handbook of Practical Program Evaluation shows you how to collect and present valid and reliable data about programs. © 2015 by Kathryn E. Newcomer and Harry P. Hatry, and Joseph S. Wholey. All rights reserved.
Article
Executives know that a company's measurement systems strongly affect employee behaviors. But the traditional financial performance measures that worked for the industrial era are out of sync with the skills organizations are trying to master. Frustrated by these inadequacies, some managers have abandoned financial measures like return on equity and earnings per share. "Make operational improvements, and the numbers will follow,"the argument goes. But managers want a balanced presentation of measures that will allow them to view the company from several perspectives at once. In this classic article from 1992, authors Robert Kaplan and David Norton propose an innovative solution. During a yearlong research project with 12 companies at the leading edge of performance management, the authors developed a "balanced scorecard;" a new performance measurement system that gives top managers a fast but comprehensive view of their business. The balanced scorecard includes financial measures that tell the results of actions already taken. And it complements those financial measures with three sets of operational measures related to customer satisfaction, internal processes, and the organization's ability to learn and improve-the activities that drive future financial performance. The balanced scorecard helps managers look at their businesses from four essential perspectives and answer Some important questions. First, How do customers see us? Second, What must we excel at? Third, Can we continue to improve and create value? And fourth, How do we appear to shareholders? By looking at all of these parameters, managers can determine whether improvements in one area have come at the expense of another. Armed with that knowledge, the authors say, executives can glean a complete picture of where the company stands-and where it's headed.