1. How to align the organization of the CREM- department to strategy during a recession Thijs Ploumen Rianne Appel-Meulenbroek ( h.a.j.a.appel@tue.nl) Jos Smeets

2. Introduction Recession: reduce CRE costs instead of use value strategies New Ways of working to ↓m² Postponing maintenance / cheaper materials Align CREM organization to CRE strategy (like in business studies) Aim: provide CRE-managers with tool for evaluating organization CREM-department when applying CRE- strategy of cost reduction PAGE 1

3. Research approach Explorative study 1.literature research for relevant components organization CREM-department + CRE-strategy 2.interviews 8 CREM-departments (NL) + 4 large CRE advisors (JLL, C&W, CBRE, Redept)  links CRE strategies + organization CREM department 3.construct model to evaluate alignment; focus on cost reduction strategy PAGE 2

4. 1. Literature PAGE 3 CREM Organization Process- management Sourcing Centralization Organizational structure Company- culture Kämpf-Dern & Pfnür, 2014 - Evolution of CREM - Focus on activities - Important tasks - Org. structure - Position in macro structure - Central independent CREM - Reasons - Activities - Mg’t levels - Use strategic partners - Report performance - MIS - Insight corporate strategy - Network - Advisory function CREM - Specialised knowledge - Change needed - Impact on personnel - Future vision

5. 2. Interviews Large org’s CREM dep’t present Macro structure = division PAGE 4 Organization KPNPhilipsComp. 1ShellSchipholABNComp. 2RGD CREM dep’t since 201320072004200920102002N.a.2014 #FTE23.451116.6812.30092.0002.09323.00056.870851 SectorTelecom Consumer goods Techn.Oil & Gas Transport & Retail Financial services Gov’t agency Position CEO asset mg’ Cluster mg’r operations Property manager Building service manager Manager corporate fac. & RE Head of portfolio mg’t CEO CRECEO RE M² BVO650.000X120.000500.00037.000750.000430.0006.900.000

6. 2. Interviews CRE strategies PAGE 5

7. 3. Model for cost reduction Organizational structure (difference in opinions) Centralization Sourcing PAGE 6 controller - Evolution of CREM: controller operational - Focus on operational activities portfolio mg’t, rent/lease, maintenance - Important tasks: portfolio mg’t, rent/lease, maintenance functional (pro region) - Org. Structure: functional (pro region) above other comp divisions - Position in macro structure: above other comp divisions important - Central independent CREM: important cost reduction + efficiency - Reasons: cost reduction + efficiency rent/lease, aquis/disp., maintenance, FM, dev’t - Activities: rent/lease, aquis/disp., maintenance, FM, dev’t tactical + operational - Mg’t levels: tactical + operational yes - Use strategic partners: yes

8. 3. Model for cost reduction Process management Company culture PAGE 7 important - Change needed: important high - Impact on personnel: high joint supporting dep’t - Future vision: joint supporting dep’t important - Report performance: important important - MIS: important important - Insight corporate strategy: important important - Network: important important - Advisory function CREM: important averageimportance - Specialised knowledge: average importance

9. Conclusions and recommendations Not perfectly similar alignment, but many similarities Model makes CREM executives aware of things to consider when implementing a CRE-strategy Strategic plan for decision making process Pro-active attitude Further studies KS between support departments + its added value More cases + all strategies PAGE 8

10. Discussion ? PAGE 930-8-2015