Hans de Jonge

Impact of real estate interventions on organisational performance

Purpose – Real estate is increasingly used as a “fifth” resource to improve the performance of organisations by a positive image, cost reduction, increased employee satisfaction and increased labour productivity. A clear conceptual framework and standardised key performance indicators (KPIs) are needed to understand and monitor the effects of real estate interventions. This paper aims to explore the added value of real estate interventions to organisational performance, theoretically and empirically, including unforeseen positive and negative side‐effects.Design/methodology/approach – The conceptual framework was based on an extensive literature survey and has been empirically used in a survey among 47 Institues of Higher Professional Education in The Netherlands and additional in‐depth interviews at nine institutes. The effects of real estate interventions were studied by conducting time series analyses of changing organisational performance using several KPIs.Findings – The research has shown that real ...

Managing key resources and capabilities: pinpointing the added value of corporate real estate management

Up to the 1980s the corporate competitive advantage was primarily focused on adapting the corporation to the (changing) environment. In the last decades corporations have become more aware of their resources and capabilities, and of the benefits of managerial attention towards managing the corporate assets. The transition from a passive, reactive attitude towards a proactive service oriented organisation proves to be a difficult task. This paper analyses the transition and describes an effort to identify products and services contributing to the added value of corporate real estate management to the bottom line of the corporation.

The impact of evolving structures on managing corporate real estate

Managing corporate real estate is confronted with more problems than just the changing characteristics of real estate. While operating companies strive for more autonomy, corporate headquarters are increasingly struggling for a synergetic approach to corporate resources and capabilities. The authors argue that the impact of the corporate setting on the role and position of corporate real estate management is underestimated. This paper describes the effects of transisions in corporate structure and strategies and provides insight in a new perspective on managing corporate real estate.

Assessment Tools' Indicators for Sustainability in Universities: An Analytical Overview.

Purpose The purpose of this paper is to analyse 12 assessment tools of sustainability in universities and develop the structure and the contents of these tools to be more intelligible. The configuration of the tools reviewed highlight indicators that clearly communicate only the essential information. This paper explores how the theoretical concept of a sustainable university is translated into more measurable variables to support practitioners and academics in assessing sustainability in universities. Design/methodology/approach The main method for this paper was a desk study approach, which incorporated reviewing research papers, graduate theses, academic books, network platforms and websites. Findings The tools reviewed share similar traits in terms of criteria, sub-criteria and indicators. Five benchmarks are essential for a holistic framework: management; academia; environment; engagement and innovation. Practical implications This research can not only be used to improve existing assessment tools but also as a means to develop new tools tailored for universities that face a variety of challenges and lack the ability to measure their sustainability policies. Social implications Making higher education more sustainable through all the criteria mentioned influences students, as well as staff, to maintain a culture of sustainability. Originality/value This study contributes to the literature by simplifying and detailing the structure and contents of the tools in a way which indicators are shown, giving a full picture of these tools to enable universities to be more aware of the sustainability issues that affect them.

Private Investment in Hospitals: A Comparison of Three Healthcare Systems and Possible Implications for Real Estate Strategies

Objectives: This article explores lessons to be learned from three different healthcare systems and the possible implications for the management of healthcare real estate, in particular in connection to the Dutch system. It discusses similarities and differences among the different systems, in search of possible consequences on cost, financing, and design innovation. Background: To keep healthcare affordable in the future, the Dutch government is currently in the process of changing legislation to move from a centrally directed system to a so-called regulated market system. The deregulation of real estate investment that accompanies the new healthcare delivery system offers healthcare organizations new opportunities, but also more responsibility and greater risk in return on investment. Consequently, healthcare organizations must find new methods of financing. Private investment is one of the options. Methods: Three healthcare systems were analyzed on the basis of a literature review and document analysis, then schematized to show similarities and dissimilarities with regard to private investment in hospitals. Observations are based on a selection of recently published articles on private-sector financing and its implications for healthcare real estate decision making in the Netherlands, the United Kingdom, and Germany. Results: The strengths and weaknesses of three healthcare systems with differing proportions of private and public investment in hospitals were explored. Research revealed a gap between intended effects and actual effects with regard to quality and cost. Costly private finance does not necessarily lead to “value for money.” Transferring real estate decisions to private investors decreases the influence of the healthcare organization on future costs and quality. Conclusions: The three healthcare systems show substantial differences between public and private responsibilities. Less governmental involvement affords both opportunities and risks for hospitals. Private investment may lead to innovation, improved efficiency, and cost reduction, provided that the costs and benefits of decisions are not separated between different stakeholders. A missing link between infrastructure provision and healthcare delivery may impede design innovation and optimal adaptation to work processes and could lead to an inefficient allocation of risks and benefits.

Designing a preference-based accommodation strategy

Purpose – This paper aims to describe the development and test of such a design method to achieve alignment, which utilises the preference-based accommodation strategy (PAS) design procedure. One of the long-standing issues in the field of corporate real estate management is the alignment of an organisation’s real estate to its corporate strategy. A classification of alignment models shows that no model yet exists that is able to design a real estate portfolio and makes use of scales for direct measurement of added value/preference, and allows the aggregation of individual ratings into an overall performance rating. Design/methodology/approach – To perform the steps in the PAS design procedure, a mathematical model is designed and tested according to formal design principles. The PAS design procedure is iteratively repeated with the participants in a series of interviews and workshops. In the interviews, the participants determine their preferences and constraints as prescribed in the procedure; in the wo...

The locations of innovation described through thirty-nine tech-campuses

Purpose This paper aims to describe the different locations of campuses developed to stimulate innovation. The paper aims at supporting strategic decisions in the development of new and existing campuses and similar innovation-driven areas. Additionally, it aims to outline the key role of location for urban and regional competitiveness in the knowledge economy. Design/methodology/approach This paper tests an existing planning tool that proposes location and connectivity as key aspects to stimulate innovation in campus development. This tool is used to analyse and compare 39 campuses with different locations characteristics worldwide. Findings Findings describe five types of location characteristics in existing campuses developed to stimulate innovation. These characteristics are dynamic, and exhibit differences in connectivity aspects enabling more or less efficient access to amenities and knowledge networks. Research limitations/implications Empirical findings were used to revise and improve the planning tool. Further research exploring the relation between connectivity aspects and innovation processes is recommended. Practical implications This paper supports decision-makers of new and existing campuses struggling with location decisions, by outlining that campus’ connectivity is crucial regardless of whether the campus is in an inner-city or a peripheral setting. Improving campus connectivity may be an efficient way to spend the many public and private resources invested on campus development to stimulate innovation. Originality/value This paper provides a unique comparison of cases that can be useful to planners of existing campuses to benchmark their current locations in relation to their ambitions on innovation.

Campus development as catalyst for innovation

Purpose This paper aims to model the relationship between innovation and real estate, providing campus managers with a tool that illustrates how campus development stimulates innovation and that guides them to add value to their organisations. Design/methodology/approach The authors review previous research and build theory from the study of two cases. They shape a hypothesis by linking various theoretical concepts and by verifying it with empirical data to finally model how campus development stimulates innovation. Findings Findings suggest that campus development facilitates five conditions required to stimulate innovation through decisions and interventions over long-term periods. These findings acknowledge that location is key to explain campus development as a catalyst for innovation. In addition, this paper identifies potential issues in decision-making processes that can inhibit the facilitating role of real estate in innovation. Practical implications A framework clarifying the path to stimulate innovation through real estate will allow campus managers to steer their real estate strategies in line with this specific organisational goal and to better communicate how their decisions add value to their organisations. Social implications Findings advocate a more effective and efficient resource allocation for campus development in and around cities. Originality/value Until now, studies on stimulating innovation through real estate have focussed on workplace level. A core theoretical contribution of this paper is enlarging the application scope of CREM theories to the urban level involving multiple organisations.

Improving decision making in CRE alignment, by using a preference-based accommodation strategy design approach

Purpose One of the long-standing issues in the field of corporate real estate management is the alignment of an organisation’s real estate to its corporate strategy. To date, 14 models for corporate real estate (CRE) alignment have been made, as well as four comparative studies about CRE alignment. Some of the CRE alignment models indicate that they strive for maximum or optimum added value. However, because most models take a so-called procedural rationality approach, where the focus is not on the content of the decision but on the way that the decision is made, “how a CRE manager can select an (optimum) alternative” stays a black box. The purpose of this paper is to open the black box and offer a Preference-based Accommodation Strategy (PAS) design procedure that enables CRE managers to design a real estate portfolio, makes use of scales for direct measurement of added value/preference, and allows the aggregation of individual ratings into an overall performance rating. This procedure can be used as add-on to existing alignment models. Design/methodology/approach The objective of this paper is to test if participants are able to successfully perform the PAS procedure in practice. The PAS procedure is in essence a design methodology that aims to solve strategic portfolio design/decision-making problems. In accordance with problem-solving methodology, mathematical models are made for two pilot studies at the Delft University of Technology. This paper describes a second test of the proposed procedure for designing a real estate strategy. The application of real estate strategy design methods in practice is very context-dependent. Applying the PAS procedure to multiple context-dependent cases yields more valuable results than just applying it to one case. Findings The PAS design procedure enables CRE managers to select the (optimal) solution and thereby enhances CRE decision-making. The pilot study results reveal that, by completing the steps in the PAS procedure, the participants are able to express their preferences accordingly. They designed an alternative portfolio with substantially more added value, i.e. a higher overall preference score, than their current real estate portfolio. In addition, they evaluated the design method positively. Research limitations/implications The positive results suggest that designing a strategy by using the PAS design procedure is a suitable approach to alignment. Practical implications The PAS design procedure enables CRE managers to determine the added value of a real estate strategy and quickly and iteratively design many alternatives. Moreover, the PAS design method is generic, it can be used for a wide range of real estate portfolio types. Originality/value The PAS procedure is original because it considers CRE alignment as a combined design and decision problem. The use of operational design and problem-solving methodologies along with an iterative procedure, instead of empirical/statistical methods and procedures, is a novel approach to CRE alignment. The PAS procedure is tested in a second pilot study to provide an assessment of the methodology through the study by testing it under different conditions to the first study. The novelty of this pilot is also that it allowed testing the procedure in its purest form, as the problem structure did not require the additional use of linear programming.

What is Served for Breakfast? An empirical analysis of corporate real estate strategies and organizational culture

The quote Culture eats strategy for breakfast was made famous by Mark Field, president at Ford, in 2006 and has ever since been a guiding principle in management practice of corporations operating across the globe. General management profession has widely embraced culture as a key factor in strategy design. However, in corporate real estate (CRE) management it appears to be implicit within organizational differences at best or lacking proper consideration at worst. Analyzing the interrelationships between corporate real estate strategies and organizational culture is essential for delivering value to multinationals.This research empirically investigates the link between CRE strategies and organizational culture through quantitative analysis of data from a worldwide survey with 231 corporate real estate managers. The empirical analysis is based on two well-established frameworks in each of the constituent fields. The CRE strategies framework originates from the work of Nourse and Roulac (1993), further developed by Gibler and Lindholm (2012). It is particularly selected because it has been empirically tested with a similar pool of CRE managers. For the assignment of organizational culture we use the Competing Values Framework developed by Cameron and Quinn (1999, 2006). The choice of this framework is based on its extensive use across a wide variety of industry sectors.The findings indicate strong patterns of association between preferred strategies and cultural groupings based on the attributes of each culture. First, organizational culture effectiveness criteria emphasizing flexibility and discretion as opposed to those that focus on stability and control provide a clear dividing line in strategy preference of survey respondents. Strategies that have employees as their core target are prioritized by the ‘Clan’ and ‘Adhocracy’ cultures while Reducing real estate costs was the main concern among respondents identifying with ‘Market’ and ‘Hierarchy’ cultures. Second, compared to the previous ‘CRE Strategy’ survey of 2010 (Gibler and Lindholm 2012) there were very little changes in the importance that managers responding in 2016 place to CRE strategies in supporting core business. Third, expected outcomes were observed in the association of certain cultural profiles with particular industry sectors. Finally, factor analysis indicates two clearly distinguishable groupings based on the scope of each strategy namely real estate and non-real estate related.