At first view, buildings may look the same. They can even have the same price. Yet, there are differences that make the one building less efficient and more costly to refurbish for the intended work processes than the other. The purchase price is the same, but the value for the user differs. Value creation with the learn/work environment must be balanced with the costs, risks and time involved in initiating, implementing and operating accommodation (Value engineering). It is about the relationship between intrinsic use value (mind, body, heart and built environment) and the market price.
Focus on people and their Behaviour instead of mainly on processes, procedures and structures of the organization, the Bricks & Bytes. Only when employees share the dream of the organization does synergy arise and become they intrinsically motivated to increase productivity and add (more) value.
Smart Management is when the focus of a learn/work environment is on increasing the benefits of the activities in that environment and less on cost reduction of the accommodation.
“Value engineering is about the needs and requirements of an organization as a whole and the individual user requirements of the employees/students in particular.”
Does the price of real estate equal the subjective worth attributed to it, or is the worth of the object the same as the (market) value? In ordinary language: is the worth of real estate similar to whatever you can get for it?
- Valuating – Process of determining the market price.
- Market price (value) – Estimate of the price the property can fetch on the market at this point in time.
- Price – Actual trade price in the market.
- Valuation -The ‘best’ estimate of the actual market price by an expert.
- Appraisal – Process of estimating the intrinsic value for an individual or a group of individuals.
- Intrinsic value (worth) – Personal (subjective) estimate of the intrinsic value by the party / parties concerned.
- Added value (value for money) – The independent simulation of the weighing process of the real estate players in determining their intrinsic value.
The price is the only thing that really exists, for it is the amount mentioned in the tender brochure or in the lease or sale contract. The value of real estate does not exist, for it is an individual and therefore subjective estimate.
“Don’t think of costs, think of value.
If the organizational goals are defined objectively and measurably and translated into the required learn/work environment performance, this limits risks and increases opportunities. The learn/work environment is a catalyst for people’s performance and therefore has a strategic impact. A holistic vision is important here, in which a conductor ensures that the various parts of the learn/work environment (Real Estate, FM, ICT) are coordinated in such a way that they optimally facilitate the most important capital of an organization, the employees. To this end, the conductor coordinates the periodic measurement and analysis of the performance of the learn/work environment. Keep in mind that what is important to measure is not necessarily easy to measure.
The learn/work environment is one of the critical secondary business processes. It requires integration and coherence with other business processes such as HRM, Finance and ICT and the associated systems, so that in addition to support for the primary process, the internal information provision and external accountability are in order.
Just as an annual formation and financial budget is made to be in control and to be able to steer, an accommodation budget can also be drawn up. The accommodation budget consists of the elements of the Six Pack monitoring system.
By definition and measurement agreements, the sub-budgets of departments and business units can be “added up” to form a consolidated accommodation section in the annual report.
As an organization, dare to think big, but start small. Experiment and gradually find out which form and speed of implementation best suits the organization.
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