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The Corporate Landlord The Corporate Landlord and Strategic Asset and Strategic Asset Management in the Management in the Public SectorPublic Sector
Jill FortuneJill Fortune
Senior Lecturer Senior Lecturer
Facilities Management Graduate Facilities Management Graduate CentreCentre
OverviewOverview
Public Sector Asset ManagementPublic Sector Asset Management– Guidance from GovernmentGuidance from Government– Evaluation of practice in local Evaluation of practice in local
authoritiesauthorities Survey of membersSurvey of members
– 'quick and dirty''quick and dirty' Opportunity to share practiceOpportunity to share practice
Guidance from Guidance from GovernmentGovernment
High Performing Property High Performing Property – route map to asset management excellenceroute map to asset management excellence– developed from OGC commissioned studydeveloped from OGC commissioned study
High Performing Property Implementation High Performing Property Implementation PlanPlan– delivering a transformed government estatedelivering a transformed government estate– a programme of changea programme of change
HPP: Areas for actionHPP: Areas for action
Recommendations for 10 areas of practice identified as 4 components:– Leadership and Integration
creating property champions property asset management boards integrated property strategies
– aligned with business and co-ordinated across departments
– Benchmarking and Standards developing standards and maturity matrix efficiency and effectiveness benchmarks – cross
government central, strategic coordination
HPP: Areas for ActionHPP: Areas for Action
– Skills and Capability skills profiling developing capabilities recognising asset management skills
– strategic and operational
– Review and Challenge asset management performance
scrutinised, challenged and reviewed use of benchmarks and standards self assessment – transparent
High Performing High Performing PropertyProperty a programme of change
– reduction in space required and occupied
– increased and improved space utlisation– improved procurement of fm contracts– improved procurement of leasehold
contracts linked to actions and key targets
within set timeframes, March 2007, 2009, 2011.
Evaluation of practice Evaluation of practice in local authoritiesin local authorities Evaluation of Corporate Capital and
Asset Planning in Local Authorities– report commissioned by Communities and
Local Government– 2001- 2007 evaluation of development and
implementation of corporate capital strategies and asset management plans in local authorities
– Why? assess impact of the policy initiative on effectiveness and efficiency of property and capital resources
Evaluation of Corporate Evaluation of Corporate Capital and Asset Capital and Asset Planning in Local Planning in Local AuthoritiesAuthorities What:
– questionnaire surveys of local authorities
– case studies from 36 local authorities– discussions with staff from Government
offices responsible for assessment of cc strategies and am plan documents
– discussion sessions at Inst. of Public Finance Asset Management Planning Network Events
Good PracticeGood Practice
Corporate Capital and Asset Planning in LA's
12 Good Practice Processes identifiedorganised under the following 5 headings:– Corporate Management
strategic leadership, cultural challenge, focus on strategic and effective property decision making
– Capacity Building developing first rate property management
service develop corporate approach to complex capital
programmes and project management tools
Good PracticeGood Practice
– Information and Evidence gather, store, maintain and update property
information (value, condition, suitability etc)
– Strategic Planning develop medium/long term property strategy
linked to business planning develop strategic approach to use of office space
including different ways of working
– Capital Programme develop corporate approach to option appraisal for
capital projects corporate approach to prioritisation of capital
projects (aligned with option appraisal results)
What are the desired What are the desired outcomes?outcomes? generating a capital
receipt rationalising
property holdings reducing level of
required maintenance
reducing annual revenue costs
improving facilities for service delivery
introducing new working practices
increasing space utilisation
increasing cross service working
increasing co-location/partnership working
compliance with DDA improving
accessibility extending the range
of services enhancing
sustainability
ConclusionsConclusions Areas of strength:
– effective and well resourced arrangements for property management
– ongoing collection of property data– ongoing process of property reviews– formal corporate approach to prioritisation of
capital expenditure Areas of weakness:
– project management systems/skills/capacity– performance management to drive continuous
improvement– medium/long term property strategy integrated
with authority wide medium term planning– formal approach to option appraisal
A quick and dirty survey!
Public sector office Public sector office space managementspace management
How is your organisations space managed:In house: 80%Outsourced: 12%Combination: 8%
Flexibility Flexibility
Flexibility of office space to meet changing user needs– Poor/Okay: 70%– Good/Excellent: 28%
Flexibility of occupational arrangements– Poor/Okay: 77%– Good/Excellent: 23%
Explanatory notes:Explanatory notes: Poor/Okay: Poor/Okay:
– Limitations due to Listed Building statusLimitations due to Listed Building status– Old small offices – but investment programme Old small offices – but investment programme
plannedplanned– Open plan and flexible but 'ownership' of space Open plan and flexible but 'ownership' of space
by directorates prevents corporate flexibilityby directorates prevents corporate flexibility– Lack of office space standards, staff resistance Lack of office space standards, staff resistance
to new ways of workingto new ways of working– Rating is 'okay' because we have surplus spaceRating is 'okay' because we have surplus space– New corporate standards approved, further New corporate standards approved, further
education of staff requirededucation of staff required
Barriers to implementation MBA in FM Barriers to implementation MBA in FM Dissertation '07Dissertation '07
Response Total
Response Percent
Organisational culture 82 75%
Resistance from employees 49 45%
Cost of implementation 35 32%
Health & safety requirements 20 18%
Resistance from line-managers 50 45%
Business processes 36 33%
Incompatibility with customer needs
16 15%
Resistance from senior-management
34 31%
Information technology 32 29%
Lack of support from other departments (e.g. HR)
21 19%
Uncertainties about the likely benefits
47 43%
Constraints of the property portfolio
27 25%
Nature of the work performed 30 27%
Lack of awareness about the potential benefits
47 43%
Other, please specify 4 4%
Total Respondents 110
Explanatory notes:Explanatory notes:
Good/Excellent:– Majority of offices refitted in recent
years, provide modern, open plan layouts, wireless IT, assists with flexibility of space and capacity
– 75% of offices refurbished and 95% of office staff now based in one location
– Temporary accommodation on three open floors makes management of internal moves straightforward
Space chargingSpace charging
Is it used: YES: 56% NO: 38%
Benefits: – Departments more aware of costs: 57%– Encouraged departments to give up space:
43%– Inc. recognition of using space efficiently:
57%– None: 29%
Space ChargingSpace Charging
Why is space charging not used?– space charging used previously and did not
work 25% other:
no benefits perceived combination of factors (not cited)
Understanding....... Understanding.......
What space departments occupy– Exc/Good: 67% Poor/Okay: 33%
The cost of occupation– Exc/Good: 75% Poor/Okay: 25%
Market value of office space– Exc/Good: 33% Poor/Okay: 67%
Understanding......Understanding......
Income per m2 produced– Good: 17% Okay: 8% Poor: 75%
User satisfaction – Exc/Good: 42% Okay/Poor: 58%
Performance of office space relative to other LA/Depts– Good: 42% Okay: 33% Poor: 25%
Space Management Space Management PracticesPractices What are the following space
management practices used in your organisation?
– Space Standards 67%– Home Working 67%– Standards for Storage 25%– Space allocated on need 25%– Delivering Shared services 42%
Relationship between Relationship between FM and other FM and other departmentsdepartments
very strong/strong
moderate weak very weak non-existent
Board of Directors 8% / 42% 25% 8% 17% 0%
HR/Personnel 0% / 17% 67% 17% 0% 0%
Finance 0% / 67% 25% 0% 8% 0%
IT 0% / 58% 33%
0% 8% 0%
Communications 0% / 25% 50% 0% 17% 8%
Skills and capabilitiesSkills and capabilities
Do you believe your organisation has the skills and capability in house to manage space effectively:
Yes: 91% No: 9%
Skills and capabilitiesSkills and capabilities Several very experience staff, staff being constantly trained.
We have a good understanding of the organisations needs and understand well the requirements of departments. There is room for improvement, but on the whole good understanding of space, costs, utilisation which are crucial
Where necessary external skills can be imported to provide support for specific issues eg space planning, external experts to assist with management of major refurbishment project
A central Corporate Landlord mechanism is proving to be relatively effective. The FM team have been strongly led, has a voice through the council's strategic asset management group. FM have taken the lead with the council's accommodation strategy, as well as operational matters around hard and soft FM
Skills and experience to deliver this service and the in depth knowledge of the portfolio
Skills and capabilitiesSkills and capabilities
The council has a wide skills base but does not have the structures in place to make the best use of its resources
We have recognised we need to significantly improve in this area. We have the skills and capability but we can restructure and are doing so to drive efficiency
XXX has recognised for several years it does not have in house skills and capacity and has established a 50-50 JVP
Discussion:Discussion:
How well are you doing in relation to developing a
medium to long term property strategy?
Thank youThank you