Property Asset Management Event
We recently spoke and exhibited at Local Authority Property 2016. Our focus was on providing helpful insights to organisations facing the challenges posed by Strategic Asset Management.
Strategic Property Asset Management requires both short and long-term plans to manage your property portfolio. It is crucial to align them to your business strategy.
Here’s the crux: you can’t manage what you can’t measure. So what exactly are you managing and what does success look like? What is the Value Add of physical space in a digital world?
Three stages of property asset measurement
1. How we used to manage and measure the estate
Management meant tracking key financials and legal requirements. This involved property portfolio management of risks and essential services and stakeholder reporting. It follows from the mindset when going to work meant the place, not the verb.
Measurement meant people carrying out labour intensive recording and reporting with rudimentary management and limited use of technology. It offered long-term reporting horizons.
2. How have we progressed over the last 10 years?
Management now involves a high value, flagship property portfolio where values are key to the balance sheet strength and shareholder reporting. Property portfolios are perceived as a key source of accessible value. We move to a less “fixed”, more “flexible” view of property as an asset.
Measurement involves enterprise systems with silos of data from suppliers who use web based solutions. They usually do rely on more trusted data from established standards. Medium term reporting horizons are used, typically around measuring space utilisation.
However, facilities managers, estates, finance and HR managers have very different points of view and use different sources of data to create their view. The same insights are rarely discovered on the different systems by different departments.
3. What about the next 10 years?
Management will mean the movement of property off the balance sheet and a shift from work being considered as a place, to work as a verb. The need for property is changing dramatically. The VALUE ADD of physical space is being re-evaluated, questioned and “measured”.
Measurement will reflect productivity as key. New KPIs are being introduced. Could this mean your Internet connection and Wi-Fi signal are critical success factors? Or is the development of your people, via your HR platform key? Are carbon commitments or flexible meeting rooms via Leesman Index the KPI?
The data exists to enable you to measure as much as you want. Consideration will also need to be given to how you measure productivity and the risks associated with a much more mobile workforce.
All of this means moving toward short-term reporting horizons.
CDS credentials (links below to CDS case studies/pages)
We provide services and support for the Government Property Unit’s ePIMS platform, essential as the single source of the truth, supporting programmes like One Public Estate, Find Me Some Government Space and The Way We Work (TW3).
Our expertise led to Asset Factory, a SaaS product, available via G-Cloud, developed to help organisations manage the value, costs, risks and performance of their property, people and supply chain assets. Clients include the Cabinet Office and Royal Mail.