Week 1 & 2 Added Value of the housing process
The presented models in this lecture includes parameters and strategies for how FM can add value
with many similarities and a trend towards convergence. Stakeholder relationships and relationship
management are seen as crucial in adding value, which for instance is expressed in the concepts FM
Value Network and Value Adding Management. Besides adding value for the core business of
organisations it is becoming increasingly important for FM to add value for society, for instance in
terms of sustainability and corporate social responsibility. All models include at least three
parameters for Process with many overlaps; the differences can partly be seen as different degrees of
subdividing. Controlling cost is no longer sufficient. In periods of expansion and with strong demand
for new generations of a limited number of highly skilled professionals from the creative class, it is
for many companies more important to attract and retain employees. Providing attractive
workplaces with excellent services has become increasingly important as a primary requirement for
FM. This forces FM to focus on how facilities can be managed to add value to the core business.
Added Value of FM and CREM (process of the built environment)
“Improving the performance of the organisation regarding people, primary and supporting processes,
the economy and the surroundings (e.g. sustainability, corporate social responsibility) related to”
- Time, Costs and Risks
The Added Value is the perceived trade-off between the benefits and sacrifices of FM and CREM, i.e.
between on one side their contributions to improving the performance of the organisation regarding
people, primary and supporting processes, the economy and the surroundings, and on the other side
the costs, time and risks connected with achieving these benefits.
CREM focuses on alignment of real estate to corporate needs and objectives, incorporating the needs
and wishes of shareholders and different stakeholders at strategic, tactical and operational levels.
The difference in scope between FM and CREM is that CREM has its focus on real estate as physical
and economical assets utilized by an organization, while FM has a wider service focus including
demands related to space and infrastructure as well as people and organisation. The perspective of
Business to Business Marketing (B2B Marketing) is the awareness that the establishment and
sustainability of profitable long-term customer relationships pose a central challenge to business in
general and marketing in particular. The concept of relationship marketing implies that the individual
transaction with customers is replaced by a focus on long-term business relationships.
The comparison of the three basic perspectives of FM, CREM and B2B marketing show that they
provide both overlapping and complementary focus areas. FM and CREM has a strong focus on the
physical assets. FM and B2B marketing both have a strong focus on services, which is not so much a
focus area in CREM. All three perspectives share a focus on stakeholders and relationship
management. Comparisons of the added value parameters of the conceptual models from FM and
CREM show many similarities and a trend towards convergence. It is particularly noticeable that the
recent models from CREM like the FM Value Map include “Environmental sustainability” as a
parameter. However, the basic structures of the models are different, which can be related to CREM
being transaction and project oriented, while FM is more service and process oriented. Relationship
management is an essential aspect of FM and a careful management of stakeholders and relations is
a prerequisite for FM to add value. The different conceptual models are important tools to analyse
and demonstrate how FM and real estate can add value. Tool that can help to develop management
,concepts, which can guide facilities managers to develop strategies and relationships that enhances
the implementation of value adding activities.
FM-Value Map: how to reach added Value?
The FM-Value Map includes a basic process model based on input-throughput-output. In the FM
Value Map the process mode specifically refers to process in FM and not to the core business, with
input being FM resources, throughput being FM processes and output being FM provisions. The logic
of the FM Value Map is that the FM provisions as outputs can lead to different types of impacts
(outcome/ add value parameters) on core business and on the surroundings. The distinction between
FM as a suport function to a core business is a functional part of a good deal of the existing theory in
FM (EN15221).
Different ways to add value to oraganisations goals
Overview of possibilities of added value by real estate or housing
Real estate interventions can be connected to competitive advantage, profitability and productivity
in a positive or negative way. In combination with the level of financial
resources and the scale of real estate portfolios, this may have a significant impact on the continuity
of an organisation. Real estate interventions are to be tailor-made to suit organisations, their
objectives and the people concerned. The role of real estate is expected to receive more
consideration in the future, as well as its impact on costs,
benefits and side-effects and, as such, on the continuity of organisations.
The added value of real estate is the extent to which the real estate contributes to the realisation of
organisational goals and performance of the organisation, from the perspective of various
stakeholders. There are nine possible effects of real estate that can add value to the organisation in
three ways: contribution to 1) higher productivity, 2) greater profitability, and 3) better
distinctiveness. Sustainability can be added and various values from specific sectors such as healing
environment (care sector) and support new ways of learning (education). The model shows that
housing choices depend on the internal and external context. The internal context relates, inter alia,
to the structure and culture of the organisation and the organization goals. The external context, for
example, concerns the labor market, the economic and political climate and developments
elsewhere in the world. The model positions housing at the input side and considered real estate and
other facilities as one of the five business assets of the organisation, in addition to capital, people,
, knowledge / information and technology. Investment in housing must therefore be well-balanced
against investments in other assets.
Green influence on performance
The presented models in this lecture includes parameters and strategies for how FM can add value
with many similarities and a trend towards convergence. Stakeholder relationships and relationship
management are seen as crucial in adding value, which for instance is expressed in the concepts FM
Value Network and Value Adding Management. Besides adding value for the core business of
organisations it is becoming increasingly important for FM to add value for society, for instance in
terms of sustainability and corporate social responsibility. All models include at least three
parameters for Process with many overlaps; the differences can partly be seen as different degrees of
subdividing. Controlling cost is no longer sufficient. In periods of expansion and with strong demand
for new generations of a limited number of highly skilled professionals from the creative class, it is
for many companies more important to attract and retain employees. Providing attractive
workplaces with excellent services has become increasingly important as a primary requirement for
FM. This forces FM to focus on how facilities can be managed to add value to the core business.
Added Value of FM and CREM (process of the built environment)
“Improving the performance of the organisation regarding people, primary and supporting processes,
the economy and the surroundings (e.g. sustainability, corporate social responsibility) related to”
- Time, Costs and Risks
The Added Value is the perceived trade-off between the benefits and sacrifices of FM and CREM, i.e.
between on one side their contributions to improving the performance of the organisation regarding
people, primary and supporting processes, the economy and the surroundings, and on the other side
the costs, time and risks connected with achieving these benefits.
CREM focuses on alignment of real estate to corporate needs and objectives, incorporating the needs
and wishes of shareholders and different stakeholders at strategic, tactical and operational levels.
The difference in scope between FM and CREM is that CREM has its focus on real estate as physical
and economical assets utilized by an organization, while FM has a wider service focus including
demands related to space and infrastructure as well as people and organisation. The perspective of
Business to Business Marketing (B2B Marketing) is the awareness that the establishment and
sustainability of profitable long-term customer relationships pose a central challenge to business in
general and marketing in particular. The concept of relationship marketing implies that the individual
transaction with customers is replaced by a focus on long-term business relationships.
The comparison of the three basic perspectives of FM, CREM and B2B marketing show that they
provide both overlapping and complementary focus areas. FM and CREM has a strong focus on the
physical assets. FM and B2B marketing both have a strong focus on services, which is not so much a
focus area in CREM. All three perspectives share a focus on stakeholders and relationship
management. Comparisons of the added value parameters of the conceptual models from FM and
CREM show many similarities and a trend towards convergence. It is particularly noticeable that the
recent models from CREM like the FM Value Map include “Environmental sustainability” as a
parameter. However, the basic structures of the models are different, which can be related to CREM
being transaction and project oriented, while FM is more service and process oriented. Relationship
management is an essential aspect of FM and a careful management of stakeholders and relations is
a prerequisite for FM to add value. The different conceptual models are important tools to analyse
and demonstrate how FM and real estate can add value. Tool that can help to develop management
,concepts, which can guide facilities managers to develop strategies and relationships that enhances
the implementation of value adding activities.
FM-Value Map: how to reach added Value?
The FM-Value Map includes a basic process model based on input-throughput-output. In the FM
Value Map the process mode specifically refers to process in FM and not to the core business, with
input being FM resources, throughput being FM processes and output being FM provisions. The logic
of the FM Value Map is that the FM provisions as outputs can lead to different types of impacts
(outcome/ add value parameters) on core business and on the surroundings. The distinction between
FM as a suport function to a core business is a functional part of a good deal of the existing theory in
FM (EN15221).
Different ways to add value to oraganisations goals
Overview of possibilities of added value by real estate or housing
Real estate interventions can be connected to competitive advantage, profitability and productivity
in a positive or negative way. In combination with the level of financial
resources and the scale of real estate portfolios, this may have a significant impact on the continuity
of an organisation. Real estate interventions are to be tailor-made to suit organisations, their
objectives and the people concerned. The role of real estate is expected to receive more
consideration in the future, as well as its impact on costs,
benefits and side-effects and, as such, on the continuity of organisations.
The added value of real estate is the extent to which the real estate contributes to the realisation of
organisational goals and performance of the organisation, from the perspective of various
stakeholders. There are nine possible effects of real estate that can add value to the organisation in
three ways: contribution to 1) higher productivity, 2) greater profitability, and 3) better
distinctiveness. Sustainability can be added and various values from specific sectors such as healing
environment (care sector) and support new ways of learning (education). The model shows that
housing choices depend on the internal and external context. The internal context relates, inter alia,
to the structure and culture of the organisation and the organization goals. The external context, for
example, concerns the labor market, the economic and political climate and developments
elsewhere in the world. The model positions housing at the input side and considered real estate and
other facilities as one of the five business assets of the organisation, in addition to capital, people,
, knowledge / information and technology. Investment in housing must therefore be well-balanced
against investments in other assets.
Green influence on performance
