FM_LCC

Life Cycle Costs

Determining and increasing values

Real estate is not only a big-ticket item – it ties up a large amount of capital and generates costs. In this context, value
management is as important as ever. A calculation alone does not add value – and certainly says nothing about how
necessary cost reduction goals can be met. This requires strategies that enhance the property’s strengths and diminish
any weaknesses. Increasingly, management decisions are based on calculating the value proposition of business units. Because of its scale, this applies particularly to real-estate business. But the prerequisite for successful value management is, of course, that the factors determining value are known. Transparency is essential – because you can only manage what you can measure.

Identifying drivers
Value management creates this transparency by analyzing the factors that determine value: the so-called value drivers.
Life-cycle costs are an example: During the utilization phase of the building, they add up to many times the initial investment. If these costs are analyzed on a value driver tree, it becomes clear that renovation investments have to be shown in detail – that is, broken down by trade and by system.

Value-oriented property management
Findings from value-oriented analysis of the current situation can be used as a basis for developing strategies and goaloriented systems for implementation in operational practice. And it is precisely in this critical area of transfer to practice that we see our specialist role in facility management. Together with strategists, engineers and controllers, we develop valuefocused strategies, implement them – and monitor their success. We do this at every level – from operational detail to the strategy statement. Thus making an active contribution to the value management of your property.

What we do for you:
We develop strategies to favorably influence the value of your property through strategic building management.

  • Select methods, determine costs, and calculate value drivers (analysis).
  • Help shape your property portfolio from the management perspective by carrying out value-focused goal definition, identifying operational drivers and designing action programs.
  • Establish planning systems, introduce reporting mechanisms, agree goals and incentive models, and carry out training.
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