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Transcript of An overview of steps and tools for the corporate real estate strategy alignment process Rianne...
An overview of steps and tools for the corporate real estate strategy alignment process
Rianne Appel-Meulenbroek ([email protected])
Barry Haynes
Introduction
• CREM practitioners difficulties aligning strategy/activities to corporate strategy
• many different issues to deal with
• tools to make the right decisions
• CREM academics
• Alignment models at strategic level only + difficult (Heywood, 2011)
• Practical tools focused performance mg’t (e.g. Lindholm & Neonen, 2006)
overview steps + tools to achieve + implement aligned strategy
PAGE 2
Strategic thinking and alignment CREM
• Comparisons alignment models • Heywood (2011) 10 models• Ramakers (2008) 8 models
• Heywood 15 components (no complete model)
• Corporate strategy vs CRE strategy• Direct return: reducing costs• Indirect return: increase value • Increasing flexibility• Promoting marketing and sales• Increasing innovation• Increasing employee satisfaction • Increasing productivity
• Strategic thinking: a continuous process
PAGE 3
15 models (mostly 2000’s)
Exchange value
Use value
Strategic thinking and alignment CREM
PAGE 4
Strategic planning
Situational analysis* External analysis* Internal analysis* Directional analysis
Strategy formulation* Directional strategies* Adaptive strategies* Market entry strategies* Competitive strategies
Planning the implementation* Service delivery strategies* Support strategies* Action plans
Strategic momentum
* Managerial action* Strategy evaluation* Emergent learning* Re-initiate strategic thinking
Strategic thinking
* External orientation* Analyze data* Question assumptions* Generate new ideas
Current academic alignment models
Performance measurement
Tools
1.
2.
3.
1. Situational analysis
• Support current + flexibility for future
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Strategic planning
Situational analysis* External analysis* Internal analysis* Directional analysis
Strategy formulation* Directional strategies* Adaptive strategies* Market entry strategies* Competitive strategies
Planning the implementation* Service delivery strategies* Support strategies* Action plans
Strategic momentum
* Managerial action* Strategy evaluation* Emergent learning* Re-initiate strategic thinking
Strategic thinking
* External orientation* Analyze data* Question assumptions* Generate new ideas
Haynes, 2012
Situational analysis:•PESTEL•SWOT•Scenario planning
Situational analysis
• PESTEL: Political, Economic, Social, Technological, Environmental, Legislative
• SWOT: Strengths Weaknesses Opportunities Threats• Scenario planning:
• alternative futures thought through
• strategic options evaluated against these futures
• enhances evaluation + integration of information
• promotes contingency planning
PAGE 6
2. Strategy formulation
• Alignment remains questionable• Differences stakeholders
PAGE 7
Strategic planning
Situational analysis* External analysis* Internal analysis* Directional analysis
Strategy formulation* Directional strategies* Adaptive strategies* Market entry strategies* Competitive strategies
Planning the implementation* Service delivery strategies* Support strategies* Action plans
Strategic momentum
* Managerial action* Strategy evaluation* Emergent learning* Re-initiate strategic thinking
Strategic thinking
* External orientation* Analyze data* Question assumptions* Generate new ideas
Nourse & Roulac, 1993
3. Planning the implementation
• Real estate interventions:• Possible actions (lindholm, 2008)• Relevant CRE aspects (own work)
• Set up CREM department + competitor analysis• Exchange value actions: CREM language• Use value actions very tacit: location + workplace choices
• Cooperate with internal stakeholders to identify explicit goals discuss relevant CRE aspects
PAGE 8
Strategic planning
Situational analysis* External analysis* Internal analysis* Directional analysis
Strategy formulation* Directional strategies* Adaptive strategies* Market entry strategies* Competitive strategies
Planning the implementation* Service delivery strategies* Support strategies* Action plans
Strategic momentum
* Managerial action* Strategy evaluation* Emergent learning* Re-initiate strategic thinking
Strategic thinking
* External orientation* Analyze data* Question assumptions* Generate new ideas
3. Planning the implementation
PAGE 9
Control of environmental characteristics (floor + workplace)
Control of auditive/visual privacy
Control of indoor climate
Emission of/reservoir for harmful substances
Amount of glass in façade (building + floor)
Amount of glass in façade
Building form Representativeness
Aesthetics
Room/workplace layout Individual workplace layout
Floor layout Floor layout
Position of facilities
Accessibility
Building depth/width Building depth/width
Building layout + total amount of square meters
Building layout
3. Planning the implementation
• Setup CREM Department (not one optimal form)• Determines knowledge of primary process +
stakeholders
PAGE 10
Degree of centralisation
Concentration of activities
Scale/use of outsourcing
Management form
Reducing costs x Increasing value x x xIncreasing flexibility x x xIncreasing productivity x xPromoting Marketing & sales x
Frederix (2005)
Separate strategic + operational level
decentralised
centralised
Economies of scale/quality:Competitor analysis
Conclusion and recommendations
• Alignment studies focused on 1 phase strategic thinking map
12 tool-supported steps for CRE practitioners1. PESTEL analysis key drivers affecting your business
2. Converting drivers into key issues
3. SWOT analysis all CRE assets
4. Opportunities + threats for CREM alignment strategy
5. Scenario planning where business is volatile
6. Transform situational analysis into driving forces + prioritise
7. Determine CRE strategie(s)
8. Identify possible actions
9. Discuss relevant CRE aspects
10.Evaluate current CRE portfolio + identify interventions to increase alignment
11.Reconsider current setup CREM department for chosen CRE strategies
12.Perform competitor analysis
PAGE 11
Conclusions and recommendations
• Iterative process• maintain database specific information
• Strategic mindset instead of exact alignment
• Use thinking map early in process
• Further research:• Prioritising actions
• Proving added use value performance measurement of effectiveness
− Short term versus long term performance
PAGE 12