How to align the organization of the CREM- department to strategy during a recession Thijs Ploumen...
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How to align the organization of the CREM-department to strategy during a recession Thijs Ploumen Rianne Appel-Meulenbroek ([email protected]) Jos Smeets
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Transcript of How to align the organization of the CREM- department to strategy during a recession Thijs Ploumen...
How to align the organization of the CREM-department to strategy during a recession
Thijs Ploumen
Rianne Appel-Meulenbroek ([email protected])
Jos Smeets
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 2
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 3
1. Literature
PAGE 4
CREM Organization
Process-management
SourcingCentralizationOrganizational
structureCompany-
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
2. Interviews
• Large org’s• CREM dep’t present• Macro structure = division
PAGE 5
Organization KPN Philips Comp. 1 Shell Schiphol ABN Comp. 2 RGD
CREM dep’t since 2013 2007 2004 2009 2010 2002 N.a. 2014
#FTE 23.451 116.681 2.300 92.000 2.093 23.000 56.870 851
Sector Telecom Consumer goods Techn. Oil & Gas Transport
& RetailFinancial services
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 CRE CEO RE
M² BVO 650.000 X 120.000 500.000 37.000 750.000 430.000 6.900.000
2. Interviews
• CRE strategies
PAGE 6
3. Model for cost reduction
• Organizational structure (difference in opinions)
• Centralization
• Sourcing
PAGE 7
- Evolution of CREM: controllercontroller- Focus on operationaloperational activities- Important tasks: portfolio mg’t, rent/lease, maintenanceportfolio mg’t, rent/lease, maintenance- Org. Structure: functional (pro region)functional (pro region)
- Position in macro structure: above other comp divisionsabove other comp divisions- Central independent CREM: importantimportant
- Reasons: cost reduction + efficiencycost reduction + efficiency- Activities: rent/lease, aquis/disp., maintenance, FM, dev’trent/lease, aquis/disp., maintenance, FM, dev’t- Mg’t levels: tactical + operationaltactical + operational- Use strategic partners: yesyes
3. Model for cost reduction
• Process management
• Company culture
PAGE 8
- Change needed: importantimportant- Impact on personnel: highhigh- Future vision: joint supporting dep’tjoint supporting dep’t
- Report performance: importantimportant- MIS: importantimportant- Insight corporate strategy: importantimportant- Network: importantimportant- Advisory function CREM: importantimportant- Specialised knowledge: averageaverage importanceimportance
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 9
Discussion
?PAGE 1019-04-23
