State Government Leaders Tackle Transformative Change in Real Estate and Facilities, According to Report from NASCA and McKinsey & Company
FOR IMMEDIATE RELEASE
LEXINGTON, Ky, Tuesday, Nov. 5, 2019 — Top state government leaders want to design buildings and spaces to improve the citizen experience and customer expectations but are stymied by a median deferred maintenance backlog of almost $200 million and shortage of technical skills required for large portfolio management according to new research by the National Association of State Chief Administrators (NASCA), an association dedicated to the governor’s top operational leaders, and McKinsey & Company, a strategic management consulting firm.
“The business of running state government operations: insights on real estate” highlights the high value at stake for government facilities. The first of three reports is based on an annual survey of state chief administrators officers (CAOs) on key issues affecting government operations.
“Solving deferred maintenance in most states may require states to evolve their practices to forward-looking sustainable portfolio strategy. An integrated approach can also reduce footprint cost, increase sustainability, adapt to global trends such as automation and AI and address workforce needs,” said Joseph “Jay” Truesdale, an Associate Partner at McKinsey & Company. “To achieve transformational change in real estate management, states must adopt more efficient and sustainable approaches.”
This national research looks closely at challenges states face regarding real estate and facilities, and it highlights opportunities and best practices including:
- getting ahead of deferred maintenance
- optimizing the state’s real estate portfolio and associated costs
- improving the performance of state-owned buildings
- providing great customer experience to enable the mission and improve productivity
“We spend most of our waking hours in our office or cubicle. But our workspace has often been considered an afterthought. We at DGS now recognize how important it is to get the workspace right. Creating better workspaces doesn’t have to mean we spend more; rather, being thoughtful about workspaces can improve recruitment and retention, foster collaboration and productivity, and promote wellness and sustainability all at once.” Said Dan Kim, NASCA President and Director of the Department of General Services for the State of California.
The state of California, Colorado, Nebraska, Oregon, and Washington are highlighted in the report for innovative facilities initiatives, such as creating energy-efficiency benchmarking and increasing flexible work arrangements.
Download the full report at www.nasca.org/research.
About the Reports
To provide a robust set of data and insights states can use to compare state practices and inform forward looking strategic decisions, the National Association of State Chief Administrators (NASCA) and McKinsey & Company partnered for a second year to produce the Business of Running State Government Operations survey on key issues affecting CAOs today. The survey results are published in three separate papers that focus on real estate, digital government, and risk.
The National Association of State Chief Administrators (NASCA) is the leading organization advancing professional development and best management solutions for the administrative functions of state government. The association provides state chief administrators with the opportunity to increase their knowledge of state government administration through education, networking and information exchange on state government trends, leading edge innovations, standards and best practices.
NASCA’s mission is to help state chief administrators and their teams strategically transform state government operations through the power of shared knowledge and thought leadership.
About McKinsey & Company
McKinsey & Company is the world’s leading strategic management consulting firm, deeply committed to helping institutions in the public, private, and social sectors achieve lasting success. For almost a century, McKinsey has served as the most trusted external adviser to governments and private sector companies in the United States and across the globe, helping them solve their most pressing problems, and enabling them to achieve distinctive, substantial, and lasting improvements in their performance. McKinsey’s governance as a private worldwide partnership ensures its independence and objectivity
National Association of State Chief Administrators
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