Ed Baldwin 10 th February 2009

1. NHS Facilities Management NetworkWorkshop: Facilities strategy (Soft FM); Strategic Asset Management and Estate rationalisation. Ed Baldwin 10th February 2009

2. HOW TO GET IMPROVED PERFORMANCE FROM YOUR BUILT ASSETS |Ed Baldwin

3. As economic pressures continue to grow on all organisations, property is increasingly being seen as a strategic enabler- moving away from the view of it as an inherent overhead of doing business.Property needs to be integral to the business planning process and its efficiency and effectiveness needs to be measured in the same way as other business resources. |Ed Baldwin

4. Built Asset : Focus upon Life Cycle Performance |Ed Baldwin

5. 1. Maintain and/or improve the existing property portfolio to a required operational standard.2. Operational standard being the required level of functional performance ( work place conditions, service availability, and asset protection). 3. Compliance with statutory requirements ( safe, accessible workplace environments). “Taking control of the governance needs to optimise performance of your built assets. Base Requirements |Ed Baldwin

6. Realign Your Assets To Business Performance Assets are not just bricks and mortar but are required to generate business efficiency . The key is having an understanding of where the clinical service business revenues are coming from or services being provided, both now and in the future. Understand the nature of different asset types and how they support the business and Benchmark the asset performance and readjust to fit the business need. Flexibility to meet future demand risk |Ed Baldwin

7. Performance measures therefore also need to be meaningful and appropriate and linked to the organisations strategic objectives, targets and plans and can be a catalyst for change.However you will need to get buy in and not create your own performance “cottage” industry. |Ed Baldwin

8. Recommended to consider the following KPI’s; • Fit with the Strategic Asset Management Plan. • Captures customer perception. • Meets governance needs i.e. statutory compliance. • Use of space – an opportunity cost. • Fit for purpose. • Income to Asset Value Ratio. • Supply Chain Performance. • Sustainability/ Energy . |Ed Baldwin

9. Opportunities • Aim to rationalise the number of suppliers and drive productivity from performance based service level agreements and incentives to reduce waste. • Were seeing a high number of recently acquired or merged businesses examining their collective built assets for opportunities to reduce costs through aggregating or shared serviced service supply • Category management- good lessons learnt from the retail sector on reducing operational expenditure through use of category management. By looking at your assets in categories of use or income you can link costs directly to revenue. Each category can then be run as a mini business with its own performance measurements and targets.. You can then work closely with suppliers to identify efficiencies and improve performance. |Ed Baldwin

10. Knowledge Management • You will need a clear understanding of what you have. • Knowledge is power • This is a pre requisite for any property professional wanting to be in control of their built assets. • Asset Register • Improve upon data collection re built asset performance to create value for the business. |Ed Baldwin