Practice vs theory: short-term financials trumps long-term value creation

Abstract

Purpose The aim of this paper is to present findings from the research project “Oscar – Value for Owners and Users of Buildings” and investigate two research questions: What in early-phase planning of real estate projects and facilities management creates value for owners and users of buildings? Do respondents in private enterprises, public administrations and hybrid organizations have different priorities during early-phase planning of buildings and facilities management concerning which factors creates value for owners and users of buildings? Design/methodology/approach This study is based on a national survey (N = 837) among Norwegian owners and users of buildings where the respondents report their emphasis on economic, social, environmental and physical aspects during early-phase planning of buildings. The data have been analysed through descriptive statistics, ranking of means and one-way ANOVA supplemented with bootstrapping. Findings Many Norwegian owners and users of buildings emphasize short-term financials and seem to overlook recent research concerning what creates long-term value such as life-cycle planning and the buildings’ elasticity, flexibility, generality. Respondents employed by private enterprises seem to have shorter time horizon than respondents employed by hybrid organizations and public administrations. Research limitations/implications Further empirical research in Norway and preferably also in other countries, based on surveys with large random samples of respondents is needed to establish whether it is possible to generalize this study’s findings. Practical implications Increased emphasis during early-phase planning of buildings on aspects creating long-term value can significantly increase the buildings’ value creation for owners and users. This article indicates some attention areas and possible strategies during early-phase planning to improve the long-term value creation for owners and users. Originality/value This is an empirical study (national survey) with particular emphasis on how early-phase planning of buildings can contribute to value creation for users and owners during the buildings’ use phase.

Concepts of social sustainability based on social infrastructure and quality of life

“…Design of buildings and Quality of life of social infrastructure during early phase of planning is therefore important. Boge and Temeljotov Salaj (2017) found that emphasis on thinking about social infrastructure during the early phase design of the built environment significantly increases the later value of the building or built environment, for users and for the entire community. Salaj et al (2018) present the opportunities for facilities management (FM) on the level of participating more actively in the development of new area to help building a competitive and healthy area with high quality for residence, business and spare time.…”

Integrating energy and environmental management systems to enable facilities to qualify for carbon funds

“…FM is a compound discipline that incorporates multiple principles to ensure the functionality of the built environment by integrating the people, places, processes and technologies. 16,18 Although there are indications that the main motivations for organisations’ adoption of FM are primarily economic, 19,20 the environmental and energy aspects should not be overlooked upon its implementation. Thus, according to Nutt, 21 sustainability and viability should be present in all the axes of FM.…”

FM and clinical employees' involvement in the design of eight Norwegian hospital projects

“…However, as mentioned by several researchers, relevant KPI's at the operative level are about not only technical measures relevant for the maintenance planning and predicting annual operational costs but also service measures as well like responsiveness, professionalism and competence (Amos et al, 2020;Lai and Yuen, 2020;Lai and Man, 2018;Lavy et al, 2014). Boge and Salaj (2017) describe the benchmarking process of the FM department of one Norwegian hospital. The FM department participates in a national benchmarking process run by the Real Estate and Facilities Management network (Nfn).…”

“…Boge and Salaj (2017) describe the benchmarking process of the FM department of one Norwegian hospital. The FM department participates in a national benchmarking process run by the Real Estate and Facilities Management network (Nfn).…”