RC113 JulyAugust 2024 - Magazine - Page 42
CLOSING SHOT
MAXIMIZING
PUBLIC VALUE
by Jonathan Burbee
N GENERAL, the purpose of government, at all levels, including publicly funded sectors such as health, education and
crown corporations, is to provide services for the bene昀椀t
of the public. This work typically requires the support
of facilities management and real property teams as a
necessary enabling function. Institutional real property is
often designed and built with care and serves as a source of
pride and identity for the community. Typically, sod-turnings
and ribbon cuttings for construction projects provide tangible
evidence of action by public entities. However, beyond the
initial construction, it is imperative for public sector leaders, as guardians of public funds, to exercise judicious and
responsible 昀椀nancial stewardship of their investments.
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RENEW CANADA – JULY/AUGUST 2024
Beyond construction, it is imperative for the
public sector to exercise judicious and responsible
financial stewardship of their investments.
there is no time like the present to learn more about new
ways of working to get the best value for public funds.
Communicate Real property practitioners need to 昀椀nd a
way to articulate the value of public services being realized
through the provision of the particular asset to stakeholders.
The pandemic was a crisis that globally impacted human
health and the economy in many ways. It also changed how
public sector leaders and facilities practitioners used institutional real property. Given the signi昀椀cant costs associated
with constructing, maintaining, and operating real property
assets, it is imperative for public sector leaders, as guardians of public funds, to exercise judicious and responsible
management of their investments. Real property should be
viewed as an asset that contributes to an organization’s strategic goals, rather than merely liability and a cost centre that
drains resources. Three ways of approaching the challenge
include taking a portfolio approach, remaining open to innovation, and communicating di昀昀erently about public assets to
convey the value. Governments need buildings to e昀昀ectively
administer and support the needs of the public, but they
need the optimal scale and with good stewardship.
GOVERNMENT OF NOVA SCOTIA
Real property as assets, not just a cost centre
The reason that institutional assets need strong stewardship
is that the 昀椀nancial construct is di昀昀erent than other real
property classes such as commercial, residential, and industrial. In these other settings, the value proposition of the
acquisition and operating costs is often made in comparison
to market considerations. Institutional assets, while they
may of course be re-purposed for other public use, tend to
be held for the long term, often to the full life expectancy.
Public bene昀椀t derived from services delivered in e昀昀ective buildings is evident upon observation in a way that is
apparent in a 昀椀nancial statement. Another way in which the
built environment adds value to the organization is through
how buildings manifest community values. This message
can be positive or negative and can inspire or discourage the
public’s trust and con昀椀dence in the entity.
While it’s tempting to be distracted by the size of operational budget lines, real property should be viewed as a
valuable asset that contributes to an organization’s strategic
goals. So outcomes are realized, it helps to take the view
that the true value of buildings lies not in their physical
structures, but in the services and experiences they facilitate
for occupants and stakeholders. The pandemic also revealed
opportunities for optimization.
Here are three approaches public o昀케cials can use to
meet their professional obligations as stewards of critical,
resource-intensive physical assets in this time of change.
Consider the Portfolio The onus is on leaders to ruthlessly
and objectively examine the demand on facilities with a
view to optimization. On a portfolio scale, there may be a
need to consolidate locations of institutional facilities.
Create an environment that is open to innovation Occupations that make up the real property workforce from 昀椀elds
of building technicians, legal, administrators, procurement
and 昀椀nance experts are typically creative and collaborative
problem-solvers. Simultaneously, through necessity, especially in the public sector context, these same players must
be careful in the execution of their work. It is suggested that
Jon Burbee is the director of
Business Development for
Capital Planning at Gordian.
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