Corporate real estate asset management: aligned vision

Abstract

Purpose: This paper aims to evaluate the relationship between corporate strategy and CRE strategy.Design/methodology/approach: The paper will identify, and evaluate, a number of components that collectively form the CRE strategy. Linkages between the business environment, the aims and objectives of the organisation and the real estate solution will be explored. Findings:The paper will illustrate the alignment of the CRE strategy to the corporate strategy through the development of a CRE alignment model. The model will demonstrate that only when optimum alignment is achieved can the CRE strategy deliver added value and enhanced organisational performance.Practical Implications: CRE managers can use the model to evaluate the alignment of their CRE strategy with their corporate strategy.

An investigation into how corporate real estate in the financial services industry can add value through alignment and methods of performance measurement

“…These statements confirm there are many measurements of CRE but businesses tend to focus on the physical property such as cost and space rather than business orientated performance like productivity of the workforce, suggesting that research should look to establish additional performance measurements of intangibles as opposed to the physical space (Haynes, 2012). CoreNet 2020's (Portfolio Optimisation and Location Strategy, p6) article foresees that: "Portfolio optimization will be measured based on agreed-upon productivity metrics.…”

“…It is proposed that it is this strategic alignment that leads to enhanced organisational performance (McDonagh & Nichols, 2009;O'Mara, 1999;Roulac, 2001;Nourse & Roulac, 1993;Heyward, 2011;Appel-Meulenbroek, Brown, M.G, & Ramakers, 2010;Scheffer, Singer, & Meerwijk, 2006;Singer, Bossink, & Putte, 2007;Haynes, 2012).…”

“…The proposed components being planet, position, purpose, procurement, place, paradigm, processes and people to produce performance and productivity. However, Haynes (2012) acknowledges the need to operationalize such a model. The first part of this paper will evaluate literature that links CRE and performance.…”

“…Clearly there is a need for some form of unifying model. Haynes (2012) presents his own "10 P" CRE alignment model as a theoretical framework for understanding the linkages between corporate and CRE strategy, See Figure 1. The proposed components being planet, position, purpose, procurement, place, paradigm, processes and people to produce performance and productivity.…”

University campuses in spatial transformation

“…Models in the fields of FM and corporate real estate management (CREM) (Joroff et al, 1993;Lopes, 1997;Krumm, 1999;Lindholm and Nenonen, 2006;Lindholm, 2008;Jensen, 2010;Heywood, 2011;Haynes, 2012, Coenen et al, 2013 have so far been mainly based on more static approaches such as balanced scorecard (Kaplan and Norton, 1992), resulting in rather static management models and principles that are needed but inadequate to reflect the dynamic, agile, networked environment of today. In initial observations (Rytkönen and Nenonen, 2013;Rytkönen, 2014), a business model tool taking a more dynamic view than balanced scorecard, the Business Model Canvas (Osterwalder et al, 2010), has been considered a valid framework for observing spatial development projects.…”