The 5th Annual Henry Stewart Briefing on:

Best Practice
Performance
Measurement
in Real Estate Usage

A Clear, Practical Guide on How to do Performance Measurement Properly for Corporate Real Estate Executives and Facilities Managers

Chair

Christopher Hedley
Director
IPD Occupiers

Speakers

Paul Bartlett
Senior Partner
SBS Business Solutions and
Chairman
Office Productivity Network

Nick Blakemore
Director, Performance Measurement Unit
PRUPIM

Paul Carder
Associate Director/Head of Business Development
IPD Occupiers and
Director
IPD Turning Point Programme

Peter Cook
Principal
pc-squared and
formerly General Manager, Property & Facilities
Scottish Water

Keith Jones
Director
Performent Consulting
formerly Director, Management Consultancy
DTZ and
a Local Government Chief Officer

Alan White
Director
Lenborough Consultants and
Chairman
RICS Facilities Management Faculty Board

Julian Lyon
Manager, European Real Estate
General Motors Worldwide Real Estate

Andrew Procter
Managing Director
Actium Consult

John Suyker
Director Europe, Strategic Property and Workplace Solutions
Johnson Controls

Melita Thomas
Partner
Remit Consulting

Chris J Webber
Business Director, Managed Environments – BT Workstyle
BT Global Services

Bernard Williams
Consultant
Bernard Williams Associates and
Managing Director
International Facilities and Property Information Ltd

Performance Measurement – The Fundamental Discipline
• What is performance measurement and why is it important?
• Why performance measurement is difficult for the occupier
• Building excellent analytical ability
Christopher Hedley
Director
IPD Occupiers

Quantifying the Contribution of Property to Corporate Performance
• Understanding the current and future strategic objectives of your business
• Translating those business objectives into clear, broadly based and simple business measures for property
• Getting the attention of the right people through effective reporting
• Be a champion and be seen to support the business!
Keith Jones
Director
Performent Consulting
formerly Director, Management Consultancy
DTZ and
a Local Government Chief Officer
and
Alan White
Director
Lenborough Consultants and
Chairman
RICS Facilities Management Faculty Board

Describing Real Estate Performance in the Language of the Boardroom and Creating Shareholder Value
• Motivation and alignment of a Global Corporate Real Estate Portfolio Improvement Programme with the corporate board directives and efficiency programmes
• Establish a global programme supported by the Business Units (BUs) and country management based on: credibility, proven practice, data retrieval and analysis for Business Decision Support for both BUs and board level
• Establishing credible corporate board level key targets and metrics: Balanced Scorecard, Key Performance Indicators, payback period, zero budget impact-variance
• Measuring results in financial improvements, process improvements and the Corporate Real Estate - Facilities Management position at both country and board level
• Creating shareholder value by extending a procurement-cost savings plan into a global business performance programme addressing corporate image, workplace performance, sales and service mobility and flexibility
John Suyker
Director Europe, Strategic Property and Workplace Solutions
Johnson Controls

Performance Measurement – More than Counting Costs: An Occupier’s Perspective on Qualitative Measures
Office relocation from ‘cheap’ space to ‘business’ space:
• Improving quality whilst managing cost
• Understanding the business drivers
• Mapping the activity chain
• Analysing the key success factors
• Anecdotal feedback versus empirical data
• ‘Proof of the pudding’
• Lessons learned
Julian Lyon
Manager, European Real Estate
General Motors Worldwide Real Estate

Effective Workplace Strategies, Utilisation and Procurement of Space through Total Cost Measurement
• What is the starting point in terms of measurement?
• How well organised are you in terms of property data?
• How does total cost mapping affect procurement?
• How does working culture cost/save you money?
• How do you facilitate change in working practice?
• How can workplace design directly impact total costs?
• How Ealing Council have saved £2m per annum on accommodation
• What are the findings of the latest Total Office Cost Survey?
Andrew Procter
Managing Director
Actium Consult

Measuring Performance by Reference to the Customer
A case study illustrating how a public sector landlord carries out a customer satisfaction survey with regard to property services and services charges.
• The principles of user satisfaction surveys
• The motives of the organisation conducting the survey, in this case the landlord
• The survey form
• How it is distributed
• How to analyse results
• Acting on conclusions
Bernard Williams
Consultant
Bernard Williams Associates and
Managing Director
International Facilities and Property Information Ltd

The Productive Office – Defining, Measuring and Benchmarking Productivity
• How a 5-10% increase in workforce productivity will exceed the entire cost of facilities
• Why measuring the contribution of the working environment to actual productivity is inherently difficult because of the range of other causal factors
• How the Office Productivity Network Index uses a balanced scorecard with answers rated to give an overall score together with a five section profile – the principles behind this tool and its application
• Benchmark performance and analyse portfolios through comparison to a database of over 40 offices
Paul Bartlett
Senior Partner
SBS Business Solutions and
Chairman

Office Productivity NetworkDefining, Collecting, Using and not Misinterpreting Property Key Performance Indicators
• Who defines the outputs?
• How do you collect the data?
• What level of detail should you go to?
• Who is your audience?
• Whose language are you using?
• What are you trying to achieve?
Peter Cook
Principal
pc-squared and
formerly General Manager, Property & Facilities
Scottish Water

What Can Be Learned from How the Property Investment Community Measures Performance
• What investors measure:
- The time weighted return formula
- Data requirements
- The complexity of income data
- Valuation frequency return differences
• How are the measures used
• The impact of performance measurement
Nick Blakemore
Director, Performance Measurement Unit
PRUPIM

The Balanced Scorecard Approach to Corporate Real Estate Performance Measurement
• Does anyone really have a ‘balanced’ scorecard?
• ‘Property’ is a sub-system of most organisations, not just an asset or cost
• People (human performance) and financial performance are also systems. How do you make any system work?
• The ‘scorecard’ should include all impacts on, and effects of, the property system
• Using the scorecard to drive performance
• Example from the IPD-delivered Office of Government Commerce Property Benchmarking Project
• Examples from UK PLC - ‘online tools are the way forward’
Paul Carder
Business Development Manager
IPD Occupiers and
Director
IPD Turning Point Programme

Measuring Performance in Service Level Agreements with Third Party Suppliers
• How can you ensure that your suppliers have the same goals as you?
• Do you need the same measures as you would use for the internal team, or do you need additional measures?
• How do you distinguish between the performance of the contract and the performance of the portfolio?
• Negotiating Service Level Agreements (SLAs) when engaging or renewing suppliers and outsourcing contracts
• What level of reporting should you require – how often and to what level?
• How can you create SLAs that are flexible enough to accommodate change over the life of the contract?
• How should you deal with failures to meet requirements as defined by the SLA?
Melita Thomas
Partner
Remit Consulting

The Impact of Property on Corporate Financial Performance
How to measure the impact of property on corporate financial performance as illustrated by:
• The under utilisation of corporate space - the way we work has changed
• The cost of churn - to Facilities, HR and the business
• The consideration of need for Agile Working
• How to measure workplace productivity
Chris J Webber
Business Director, Managed Environments – BT Workstyle
BT Global Services