0. 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
Barry Haynes

1. 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

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

3. Strategic thinking and alignment CREM1.
Performance measurement 2.
Current academic alignment models 3.
Tools

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

5. 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

6. 2. Strategy formulation Alignment remains questionable
Differences stakeholders
Nourse & Roulac, 1993

7. 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

8. 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

9. 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

10. 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

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

12. Discussion ?