How to renovate the SwedishMillion Homes Programme : The development of a value proposition for a renovation project

The Swedish Million Homes Programme, which had the construction of one millionaccommodations spread over whole Sweden from the years 1965 to 1975 as scope, is due to itsdeprived state in need of surrounding renovation measures. However, outgoing from complex marketconditions in which three major stakeholders: the housing companies, tenants and society areintegrated; renovation activities are so far carried out to a low extent.This report has the purpose to provide an understanding of the value that can be created by arenovation project of a Million Homes area towards the three different stakeholders and to therebyfacilitate future renovation projects of the Swedish Million Homes Programme. In order to fulfil thispurpose, the report established a value proposition for a renovation project towards the differentproject stakeholders. The research methodology in the study is both qualitative and quantitativebased on a case study at one of Sweden’s biggest construction companies and a literature andempirical investigation. Outgoing from the case study, value creation in a renovation project isdivided into the five areas (1) revenue increasing activities, (2) cost decreasing activities, (3) socialdevelopment, (4) tenant satisfaction and (5) partnering as project concept. Each of the areas isinvestigated regarding their value creation potential and the decisive factors that the value creationdepends on, under a literature and empirical study.Two value propositions are formulated in the report’s conclusion, which unfolds that the stakeholdersexpect a renovation project to be carried out differently. A discussion arises in the ending of thereport around these different expectations, suggesting that the Million Homes Programme will onlybe renovated in a surrounding fashion, which considers also the solution of environmental and socialchallenges, if a housing company benefits from social value creation. Outgoing from this discussion,future research is suggested, taking up the identified challenge of sharing created value between thestakeholders