The implementation of Service Governance in Real Estate develops through three fundamental phases, designed to transform the management of properties and associated services into an efficient, measurable and value-oriented process.
The three steps are: Sustain, which involves defining strategic value objectives related to the quality of spaces, environmental sustainability and people's well-being. Design, which focuses service contracts on measurable performance, rewarding actual results rather than activities carried out. Plan, which uses data and smart technologies to monitor properties and ensure interventions that improve the user experience, safety and comfort.
The starting point for effective Service Governance is undoubtedly the Sustain phase: a crucial moment when the company's strategic objectives are aligned with the available resources to make spending not only controllable but, above all, measurable in terms of value produced. Without this step, any investment or operating budget risks becoming a mere execution of expenditure, disconnected from concrete results and measurable impacts on the business and overall sustainability.
The planning phase is often the most complex and fragmented. Strategic objectives are often disconnected from the operating budget and resources are allocated based on cost centres rather than purpose or expected impact. This traditional management approach merely allows spending to occur without governing it, thus failing to generate real value or contribute to the company's long-term objectives.
The most advanced companies integrate asset management with three macro-objectives of measurable sustainability: economic, environmental and social. These objectives must be clearly defined and based on verifiable expenditure drivers, such as reducing per capita electricity consumption or increasing the average occupancy of company properties. Only in this way is it possible to transform expenditure into an investment that produces a tangible and measurable impact.
This is where the objectives-services matrix of Service Governance comes into play: every euro spent is attributed to one or more traceable KPIs, going beyond the traditional budget-based approach. This system enables resources to be allocated according to expected impact. For instance, the fit-out of new spaces could be suspended if there is no growth in occupancy. This directly links expenditure to measurable results, promoting informed and sustainable decision-making. In summary, the Sustain phase is essential for achieving measurable governance. It enables precise tracking of the effects of investments, ensuring control over the value produced by the use of company resources.