An integrated asset performance framework for operational buildings – preliminary results of focused group validations in Hong Kong and Australia

Abstract

Business performance is contingent upon effective use and management of all resources to enhance competitive advantage. However, whilst the resource value of finance, human resources and technology is widely recognized, that of the supporting physical asset (i.e. building or real estate) that houses these resources is not obvious to many corporate managers who see building-related expenses as a drain on profit. Operational buildings are at the same time, a physical asset, a functional facility, as well as a business resource. Literature on the subject suggests a wide range of views which tended to polarize towards either the measurement of the physical (technical) performance or the financial (cost) performance. Contemporary resource management supports the view that building assets are an essential resource just as human resource, technology; finance and knowledge are business resources needed to achieve corporate objectives. An integrated resource management approach views an optimum real estate or facility solution as one which is derived from consideration of all corporate resources to meet business needs. In this respect, the prime focus in measuring operational building performance must be viewed in the context of the relationship of building assets in relation to their contributions to business outcomes. This is the premise upon which an integrated asset performance framework for performance of operational buildings has been developed. The paper will explain the conceptual basis of an integrated asset performance framework and the preliminary results of two validation workshops conducted in Hong Kong and Australia.