Rianne Appel-Meulenbroek (h.a.j.a.appel@tue.nl) Barry Haynes An overview of steps and tools for the corporate real estate strategy alignment process Rianne Appel-Meulenbroek (h.a.j.a.appel@tue.nl) 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

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 15 models (mostly 2000’s) Exchange value Use value

Strategic thinking and alignment CREM 1. Performance measurement 2. Current academic alignment models 3. Tools

1. Situational analysis Support current + flexibility for future PESTEL SWOT Scenario planning Haynes, 2012

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

2. Strategy formulation Alignment remains questionable Differences stakeholders 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

3. Planning the implementation Structural Aspects Exchange value Use value Organisational costs Organisational flexibility Value of assets Employee satisfaction Organisational productivity Organisational innovation Marketing and sales Building orientation + expanding possibilities Building location and orientation X   Building age Construction type Detailing of elements and connections Minimal connection of elements Building height + volume Floor height Spatial characteristics and flexible elements Fixation/mobility of elements Standardisation of elements (building + floor) Standardisation of elements Materials, forms and colours (building + floor + workplace) Material properties (e.g. reflection, insulation) Construction characteristics and details x Grid dimension + free spanning distance Ergonomics of workplace Materials, finishing 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 Position of facilities Accessibility Building depth/width Building layout + total amount of square meters Building layout 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 Position of facilities Accessibility 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   Degree of centralisation Concentration of activities Scale/use of outsourcing Management form Reducing costs x Increasing value Increasing flexibility Increasing productivity Promoting Marketing & sales Frederix (2005) decentralised centralised Separate strategic + operational level Economies of scale/quality: Competitor analysis

Conclusion and recommendations Alignment studies focused on 1 phase  strategic thinking map 12 tool-supported steps for CRE practitioners PESTEL analysis  key drivers affecting your business Converting drivers into key issues SWOT analysis all CRE assets Opportunities + threats for CREM alignment strategy Scenario planning where business is volatile Transform situational analysis into driving forces + prioritise Determine CRE strategie(s) Identify possible actions Discuss relevant CRE aspects Evaluate current CRE portfolio + identify interventions to increase alignment Reconsider current setup CREM department for chosen CRE strategies Perform competitor analysis

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

Discussion ? 23-4-2017