Anita Menzies, Commercial Property Management Division Manager discusses Benefits Management for commercial properties.
If you are new to the principles of Benefits Management, then first you need to understand how Benefits Management fits into the cycle of managing commercial property. The idea of a benefit is that it is a clearly measurable improvement from an outcome perceived as an advantage.
- Measurable – monetary and non-monetary
- Meaningful – a direct relationship between the achievement measure and benefit result
- Attributable – a reasonable claim that the benefit measure results are due to the management
- Aligned – benefits are in line with the strategic outcomes
Generally benefits have the following attributes:
- Someone benefited;
- There is a clear gain;
- Is attributable and noticeable.
It is important to understand that benefits are not just financial, because while benefits can be quantified financially, there are instances that are difficult to attribute financial value benefits gained for the environment, or benefits gained for community betterment. These benefits are known as non-monetary.
Managing a commercial property with a focus on Benefits Management, means the management service is able to demonstrate value addition through some measurable modes of improvement. Benefits Management focuses on the process which allows the realisation of benefits. When it comes to managing commercial property with the objective of adding value, understanding, managing, and realising benefit is an absolute priority. This is the very reason why, when managing commercial property a focus on Benefits Management is required.
Realising benefits require a well identified scope of investment and investment related decision making. The objectives, outputs and requirements of management need to be properly identified, and the scope of Benefits Management needs to be well identified with expected results clearly defined. The expected result needs to be in line with the scope of investment.
The approach for managing and delivering benefits requires understanding the strategic and economic needs that are unique to the property and investment objectives. Strategic and economic needs must be properly identified. Benefits will then need to be analysed to show what is needed to achieve the identified strategic and economic needs. Next it is all about having a viable plan on how to deliver any identified requirements, and finally, the benefits need to be monitored, evaluated and reported on.
A robust Benefits Management strategy allows for proper management of outcomes and a quantitative indication of the value added through commercial property management. Strategy is all about setting out the process by which benefits will be identified, managed and successfully realised.
- Think about the processes to govern benefits
- Set the expected standard
- Outline Accountability and responsibility
When managing commercial property, focusing on benefits management is important, because:
- The value generated from an existing property can be optimised;
- Increases efficiency and effectiveness of the property owner’s investment strategy;
- Allows property owners to achieve their investment objectives; and
- Management of the property will be within its own required strategy and priority.
In today’s environment, a commercial property investment strategy must include the assurance that finances and projects within a portfolio of commercial property are managed with the target of value addition.
To truly add value, the strategic and economic needs of commercial property must be managed towards the outcome of benefits. A commercial property manager with knowledge on how to focus on Benefits Management is an absolute must, and fundamental to make any commercial property based investment a truly positive investment. Feel free to contact us on the below form to discuss the Benefits Management of your commercial property.
B.Arch.s / LLB (Auckland), Law prof. New Zealand Council of Legal Education Certification
Division Manager – Commercial Property Management