Failing to plan - planning to fail : how early phase planning can improve buildingsʼ lifetime value creation

Abstract

Purpose: How do early phase planning of Real Estate (RE) and Facilities Management (FM) create value for owners and users of commercial and public sector buildings? Design/methodology/approach: The data were collected in Norway in 2015 through a national online survey (N = 837). The sample gives a good picture of Norwegian owners’ and even users on tactical level (customer) perspectives on RE and FM. The data have been analysed through descriptive statistics and exploratory factor analysis. The hypotheses have been tested through analyses of correlations and OLS linear regressions. Findings: Exploratory factor analysis made it possible to establish seven composite variables (constructs). Based on these seven constructs, six hypotheses were derived and tested. Obstacles and Financials have no significant effect on buildings’ perceived usability. The most important factors during early phase planning that influence buildings’ perceived usability and lifetime value creation are measures promoting Environment and LCC, FM, Adaptability and Image. Research limitations/implications: Further empirical and preferably, comparative studies are needed to establish whether the findings can be generalized. The study has shown that a building’s usability and lifetime value creation is largely determined by decisions made during early phase planning. Whether organizations are able to implement successful FM during a building’s use phase is partly also determined during early phase planning. Thus, moderate investments in early phase planning can be very profitable.