This chapter presents a theory about the added value of buildings, workplaces, facilities and services. Traditionally, value is mainly associated with financial parameters. This chapter presents a more holistic approach. It explains the meaning of value and discusses different value types and value parameters. It shows that prioritized values depend on culture, time, context, and who is involved. Furthermore, it presents a Value Adding Facilities and Corporate Real Estate Management process model. This VAM model guides decision makers through the process of adding value in four steps, from identification of performance gaps, objectives for improvement and selection of appropriate interventions to its implementation and a check on whether the objectives have been attained, what value has been added to whom, and which Key Performance Indicators are most appropriate to measure the added value by FM and CREM. Next, the chapter shows how this VAM theory is or can be applied in workplace studies and practice.@en

Purpose: This paper aims to explore the added value of healthy workplaces for employees and organizations, in particular regarding employee satisfaction, labour productivity and facility cost. Design/methodology/approach: The paper is based on a narrative review of journal papers and other sources covering the fields of building research, corporate real estate management, facilities management, environmental psychology and ergonomics. Findings: The review supports the assumption of positive impacts of appropriate building characteristics on health, satisfaction and productivity. Correlations between these impacts are still underexposed. Data on cost and economic benefits of healthy workplace characteristics is limited, and mainly regard reduced sickness absence. The discussed papers indicate that investing in healthy work environments is cost-effective. Originality/value: The findings contribute to a better understanding of the complex relationships between physical characteristics of the environment and health, satisfaction, productivity and costs. These insights can be used to assess work environments on these topics, and to identify appropriate interventions in value-adding management of buildings and facilities.

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Purpose: This paper aims to investigate how facilities management (FM) and corporate real estate management (CREM) can add value to organisations by contributing to improved productivity of knowledge workers, and to explore interrelationships between productivity, employee satisfaction and other value parameters. Design/methodology/approach: This is a literature research of possible contributions of FM and CREM to improved labour productivity in relation to five activity areas of FM/CREM (portfolio management, project management, space and workplace management, property management and service management) and a first exploration of interrelationships between productivity and other value parameters. Findings: The findings indicate that FM and CREM most directly can contribute to productivity by space and workplace management that supports different types of work and organisational activities. Portfolio and project management can mostly contribute by providing appropriate locations, adjacency relations between different parts of the organisation and supporting process flow and logistics. Property management can contribute to productivity by ensuring business continuity and comfortable indoor climate. Service management can contribute by relieving staff from trivial tasks by efficient services and by providing exiting experiences. Productivity shows to be mainly positively related to satisfaction; insights into interrelationships with other value parameters are still limited. Practical implications: The results can be used to obtain a deeper understanding of how FM and CREM can add value to organisations by contributing to improved labour productivity. Practitioners can find inspiration on how to contribute to labour productivity and additional benefits within specific activity areas of FM and CREM. The exploration of interrelationships between productivity and other values can be used as input to a future research agenda. Originality/value: The paper adds new insights to the growing body of knowledge about how FM/CREM can contribute to increased labour productivity and how other value parameters may be interrelated with productivity.

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Purpose: The purpose of this paper is to present an empirical-based typology of facilities management (FM) and corporate real estate management (CREM) interventions that can add value to the core business of organisations and possibly the wider society. The typology is explained, elaborated and discussed with the aim to reach a deeper understanding of value adding management in the context of FM and CREM. Design/methodology/approach: The paper is based on FM and CREM literature, a survey with 15 expert interviews from six different European countries and cases with examples of interventions from earlier research. Findings: The typology consists of six types of interventions, some mainly product-related, some mainly process-related and some that can be both. Each type is underpinned by examples from a case company and from interviews. Research limitations/implications: The number of interviews is limited. The typology with related interventions is not necessarily complete. However, the typology is regarded to include the most important interventions in the current state of practice of FM and CREM. Practical implications: The typology provides an overview of the different ways FM and CREM can add value. The cases and examples can be used as inspiration for developing specific interventions in practice. Originality/value: The typology is the first to provide a classification of FM and CREM interventions. By integrating findings from interviews and case studies, this typology contributes to a better understanding and practicing of value adding management.

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Purpose: This paper aims to explore the impact of buildings on the creation of healthy workplaces (HWs) and end users’ physical and mental health and well-being. The paper presents available research on the impact of workplace layout, interior design, indoor climate and “green” offices. It ends with reflections on the main lessons learned, gaps in our current knowledge and suggestions for further research. Design/methodology/approach: A literature research has been conducted of all papers in four corporate real estate management and facilities management-oriented journals from 2008 to 2017 that discuss health and well-being and related topics such as satisfaction, productivity and creativity. Findings: A conceptual model to analyse impact factors for HWs covers the influence of many different variables. Most papers only discuss a particular influencing factor, mainly plants and indoor climate. Various papers show that the spatial layout, in particular the level of openness and opportunities for communication, concentration and privacy and interior design have an important impact on user satisfaction, perceived productivity support and creativity. These factors may have a positive impact on HWs as well and can also be benefits of HWs. Practical implications: The paper identifies, which factors are important to consider for creating HWs and potential benefits of HWs. Originality/value: This paper discusses the role of CREM and FM in creating HWs and reflects on the available knowledge, current omissions and the need for transdisciplinary follow-up research.

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Purpose: The purpose of this paper is to present a process model of value-adding corporate real estate and facilities management and indicators that can be used to measure and benchmark workplace performance and the added value of workplace interventions for an organisation. Design/methodology/approach: The paper compares the performance measurement and benchmarking theory with current practice and data from different work environments. The paper builds on two books on adding value through buildings, facilities and services, both edited and co-authored by the authors of this paper. The books were based on literature reviews, interviews with practitioners, cross-border studies of performance measurement and benchmarking and in-depth analyses of various value parameters by experts from different countries. In addition, theory and empirical examples of benchmarking have been included. Findings: The paper presents 12 value parameters that are seen as relevant in measuring and benchmarking of workplace performance: four people-oriented, four business processes-related, two economic and two social parameters. Because not all values can be easily expressed in monetary units, various other ways of measuring are presented that can help to monitor and to benchmark workplace performance. The 12 values and ways to measure can be used to support a more integrated business case approach that goes beyond “dollar-metrics” and spreadsheet-based decision-making. Both quantitative and qualitative performance indicators, including hard and soft factors, are needed to define the trade-off between the costs and benefits of interventions in corporate real estate, facilities and services and to cope with the interests and needs of different stakeholders. Practical implications: To add value to an organisation, workplaces have to provide value for money by a positive trade-off between the benefits, i.e. support of the organisational objectives and the primary processes and the costs, time and risks connected with achieving these benefits. Widely used indicators to measure the costs are the investment costs, running costs and total cost of occupancy. These metrics are primarily connected to efficiency, i.e. to optimal use of the resources of a firm, but much less to effectiveness and benefits such as user satisfaction, productivity, health and well-being. Originality/value: The paper links performance measurement and benchmarking to value-adding corporate real estate and facilities management and presents new ways to measure and benchmark the performance of buildings, facilities and services in connection to organisational performance.

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Model in four steps on how to add value to the organisation by interventions in buildings, facilities and services.@en

This paper aims to present a process model of value adding corporate real estate and facilities management and to discuss which indicators can be used to measure and benchmark workplace performance.

In order to add value to the organisation, the work environment has to provide value for money by a positive trade-off between the benefits i.e. support of the organisational objectives and the primary processes, and the costs, time and risks connected with achieving these benefits. Widely used indicators to measure the costs are the investment costs, running costs, and the Total Cost of Occupancy. These metrics are primarily connected to efficiency i.e. to optimally use the resources of a firm, but much less to effectiveness and benefits such as user satisfaction, productivity and well-being.

The paper compares performance measurement and benchmarking theory with empiric data from different work environments. The paper mostly builds on two books on adding value through buildings, facilities and services, both edited and co-authored by the authors of this paper. The books were based on literature reviews, interviews with practitioners, cross-border studies of performance measurement and benchmarking, and in-depth analyses of various value parameters by experts from various countries. In addition, theory and empirical examples of benchmarking have been included in the paper.

The paper presents 12 value parameters that may be relevant in measuring and benchmarking of workplace performance: four people oriented parameters, four business processes related values, two economic parameters and two social indicators. Because not all values can be easily expressed in monetary units, various other ways of measuring are presented that can help to monitor and to benchmark workplace performance. The findings can be used as input to a more integrated business case approach that goes beyond “dollar-metrics” and spreadsheet based decision-making. Applying both quantitative and qualitative performance indicators and including both hard and soft factors is needed to define the trade-off between the costs and benefits of interventions in corporate real estate, facilities and services, and to cope with the interests and needs of different stakeholders.

The paper links performance measurement and benchmarking to value adding corporate real estate and facilities management and presents new ways to measure and benchmark the performance of buildings, facilities and services in connection to organisational performance.
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This paper presents a new Value Adding Management (VAM) model that aims to support decision makers in identifying appropriate interventions in buildings, other facilities and services that add value to the organisation, to manage its implementation, and to measure the output and outcomes. The paper builds on value adding management theories and models that use the triplet input-throughput-output, a distinction between output, outcome and added value, and concepts, theories and data on the impact of interventions in corporate real estate and facility services, change management and performance measurement. Furthermore, input has been used from a cross-chapter analysis of a new book in which 23 authors from five different European countries present a state of the art of theory and research on 12 value parameters: satisfaction, image, culture, health and safety, productivity, adaptability, innovation, risk, cost, value of assets, sustainability and Corporate Social Responsibility. The new VAM model follows the steps from the well-known Plan-Do-Check-Act cycle, which are supported by various tools that were found in the literature or came to the fore in the state-of-the-art sections. In order to be able to select appropriate interventions in the Plan-phase, this paper includes a typology of typical interventions in corporate real estate and facility services that may add value to the organisation. The Check-phase is supported by an overview of ways to measure the 12 value parameters and related Key Performance Indicators. The new Value Adding Management model connects Corporate Real Estate Management (CREM) and Facilities Management (FM) with general business management in order to align CREM/FM interventions to the organizational context and organizational objectives. The VAM model opens the black box of input-throughput-output-outcome and is action oriented due to the connection to various management and measurement tools. @en

Purpose: To present an integrated process model of adding value by Facilities Management (FM) and Corporate Real Estate Management (CREM) that is a generalisation of existing conceptual frameworks and aims to be a basis for management of added value in practice.
Background: The growing research on the added value of FM and CREM over the last decade has resulted in the development of several conceptual frameworks and the collection of much empirical data in practice. However, the practical application of current knowledge has shown to be limited and difficult. The reasons seem to be that the different frameworks are too complex and lack of common terminology and clear operationalisations of intervention-impact relationships.
Approach (Theory/Methodology): A generalised Value Adding Management process model is developed based on a common cause-effect model identified in existing conceptual frameworks combined with the basic process model of input → throughput → output. The proposed model consists of interventions as input, management of implementation as throughput and added value as output/outcome.
Results and practical implications: The Value Adding Management model provides a simple framework which aims at supporting the practical management and measurement of added value. A typology with six types of FM/CREM interventions is developed from earlier research. The concept of Value Adding Management is investigated and the 12 most important added value parameters are identified.
Research limitations: The process model still has to be tested on its empirical validity and practical applicability. This is being done and will be presented in a forthcoming book on how to manage and measure value adding by FM and CREM.
Originality/value: The Value Adding Management process model condensates research in an original and simple model with the potential to make value adding management more applicable in practice.@en

This conference paper presents a new Value Adding Management model that aims to support decision makers in identifying appropriate interventions to add value to the organisation, to manage its implementation, and to measure the output and outcomes. The paper builds on value adding management theories and models including the triplet input-throughput-output, a distinction between output, outcome and added value, the Plan-Do-Act-Check cycle, change management and performance measurement. The paper is based on a literature review and a cross-chapter analysis of a book, where authors from different European countries present a state of the art of theory and research on 12 value parameters, how to manage and measure each value, and to discuss the costs and benefits of typical FM and CREM interventions to enhance satisfaction, image, culture, health and safety, productivity, adaptability, innovation, risk, cost, value of assets, sustainability and Corporate Social Responsibility. The new Value Adding Management model follows the steps from the well-known Plan-Do-Check-Act cycle. The four steps are supported by various tools that were found in the literature or came to the fore in the state-of-the-art sections of the 12 value parameters. Furthermore an overview is presented of ways to measure the 12 value parameters and related Key Performance Indicators.@en

This chapter explains the third part of the generalised Value Adding Management model, i.e. “Added Value” or “Outcome”, in a FM and CREM context. It gives an overview of the different added value parameters that have been included in various studies on the added value of FM and CREM and presents the results from our recent research on how FM and CREM practitioners in Denmark and the Netherlands prioritize added value parameters. Based on literature and our recent research we have made a selection of 12 added value parameters, which form the basis for the chapters in part II. The chapter is finished by showing how added value can be measured according to the literature and how it is measured in practice.@en

The economy of developed countries is strongly based on the productivity of knowledge workers, both quantitatively and qualitatively. Measuring the productivity of knowledge workers can be quite a challenge, let alone measuring the specific impact of the building, facilities and services on labour productivity. Research has shown that occupant surveys are an effective and cost efficient method to gain insight into the impact of these factors on (perceived) labour productivity. More objective measures, such as the amount of absenteeism, can complement the more subjective outcomes. Various studies show that physical conditions such as the indoor climate and greenery, spatial layout, ergonomics and aesthetics can have a substantial effect on the productivity of knowledge
workers. In particular the support of conducting focused work, concentration and communication is essential. It is therefore recommended to at least measure the extent to which people perceive the work environment as supportive to these activities.
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This chapter connects the simple Value Adding Management (VAM) model from chapter 1 to the Plan-Do-Check-Act cycle, also known as the Deming cycle. The Plan-phase is related to the input part of the VAM-model. It includes a strategic analysis to identify the drivers to change, to define the organisational and related FM/CREM objectives, and to explore internal and external conditions. Furthermore strategic choices have to be made of interventions that are expected to add most value to the organisation. The Do-phase regards the throughput part and is called ‘strategy-inaction’. Its focus is on the implementation of change and change management. The Check-phase elaborates the output/outcome part of the VAM model. In includes a check whether the interventions have resulted in improved performance of FM and CREM (output), whether the output improves organisational performance (outcome), whether the outcome fits with the organisational objectives and as such adds value to the organisation, and what side effects (positive or negative) have come to the fore. This step includes performance measurement and evaluation of appropriate KPIs. The findings form the basis for the Act-phase, where decisions on further actions are considered, e.g. extend the current interventions, reconsider other interventions, or redefine the organisational objectives.@en

Buildings, facilities and services can have a substantial influence on health and safety (H&S). Ergonomic furniture may help to prevent or reduce complaints of the arm, neck and/or shoulder. Insufficient lighting, too much noise, and unhealthy indoor air may result in work fatigue, head ache, irritation of eyes, nose or throat, and increased blood pressure. Hazardous materials, harmful substances and radiation may lead to severe diseases. Slippery floors and stairs may cause fall accidents. In plants, ill-considered production processes and unthoughtful designed machines may even kill people. So H&S are relevant values by itself, but also have an impact on other values such as productivity, employee satisfaction, Corporate Social Responsibility, sustainability, profitability and risk. This chapter discusses the responsibility of FM and CREM managers and presents a state of the art of FM/CREM related research on H&S, with a focus on the indoor climate and workplace layout. It also presents the benefits and costs of various interventions to improve H&S. The chapter ends with examples of input KPIs to measure H&S characteristics of the supply side, output KPIs to measure the actual and perceived impact of facilities on health and safety of the end users, and suggestions for further research.@en

This final chapter reflects on the comprehensive analyses of how to manage and measure 12 different value parameters that were presented in chapter 4-16. Furthermore it links the findings to the background and purpose of this book (chapter 1) and the input-throughput-output components of the Value Adding Management model (chapter 2-4). A cross-chapter analysis of the State of the Art sections for each value parameter shows that much theoretical and empirical work has been conducted to operationalise the 12 value parameters, to develop ways to measure and manage performance and added value, and to collect evidence about input-output/outcome relationships. The overview of appropriate interventions, ways to measure its impact, and a shortlist of Key Performance Indicators per value parameter (chapter 17) can be used to support decision makers in selecting appropriate interventions to solve current problems and to add value to the organisation. The cross-chapter analysis also shows that it is difficult to quantify cause-effect relationships, due to the many factors that affect organisational performance and adding value by FM and CREM. In addition to the impact of interventions in buildings, facilities and services, the way interventions are implemented play an important role as well. The internal context (e.g. leadership, staff, culture, resources) and the external context (e.g. legislation, labour market, benchmark with competitors) may also affect the relationship between facilities and organisational performance. Further research is still needed to disentangle the complex relationships between input factors and organisational outcomes, and to develop new ways to measure the outcomes, for instance by using sensors and apps, narratives, longitudinal observations, focus group discussions, and ‘big data’.@en

This chapter explains the throughput part of the generalised Value Adding Management model, i.e. “Management” or “Implementation”, in a FM and CREM context. It introduces the concept of Value Adding Management and presents various conceptual models and research findings on strategic alignment between FM/CREM and core business. Furthermore it explores the topics stakeholder management and relationship management. Stakeholder management and relationship management are closely related. A distinction is made between stakeholder management as related to management of multiple stakeholders, and relationship management concerning a dyadic relationship between two parties. The chapter finishes with a presentation of some results from recent research into the current practice of adding management.@en

This chapter explains the first part of the generalised Value Adding Management model, i.e. “Intervention” or “Decision on type of change”, in a FM and CREM context. The chapter presents a typology with 6 types of FM and CREM interventions concerning the physical environment, facilities services, interface with core business, supply chain, internal processes, and strategic advice and planning. All types of interventions are explained based on literature and with examples from practice. The examples both include text boxes with small cases and interventions from interviews with practitioners from Denmark and the Netherlands, where the interventions are related to the prioritized values and KPIs mentioned by the interviewees.@en

Chapter 1 explains the background and purpose of the book and gives an overview of the structure with three different parts. The current book is a follow up to a book on the same topic published in 2012 by the same research group. It aims to integrate the two related disciplines Facilities Management (FM) and Corporate Real Estate Management (CREM) and to discuss how to manage and measure added value in FM and CREM practice. The most important conceptual frameworks from earlier research are briefly summarised and analysed. Chapter 1 finishes by the presentation of a generalised “Value Adding Management Model”, which condenses a common underlying causeeffect model in the earlier frameworks and follows the triplet of input-throughput-output. This new
model provides the overall framework for the book, which is explained further in the following chapters in part I.
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