Monique Arkesteijn

Alignment and theory in Corporate Real Estate alignment models

This paper deepens the understanding of Corporate Real Estate (CRE) alignment through a meta-study of twenty existing alignment models. A qualitative hermeneutic method interpreted the models and their articles. This holistic analysis found alignment to be more complex and pluralistic than the individual models assumed. Four dimensions operating simultaneously were evident – a multi-valent relationship, multiple alignment forms, multiple cognitive objects to align and alignment in multiple directions. Alignment theorisation had positive and negative aspects. Positive is that good science was evident and had improved over time. Negative is that model theorisation had occurred mostly in isolation and was constrained by simplifications required to make modelling tractable. The research makes a meta-theoretical contribution through a more complete theorisation of CRE alignment as a phenomenon. This addresses a disordered sense to prior theory thereby representing a major conceptual improvement. A new alignment model is not proposed; rather through developed understanding a basis is provided to examine alignment in both theorisation and practice.

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...

Smart campus tools - adding value to the university campus by measuring space use real-time

Purpose: The objective of corporate real estate management is to optimally attune corporate accommodation to organisational performance. At universities, the dynamic process to match supply and demand is often hindered by difficulties in the allocation and use of space. This is a challenge for the Dutch universities and perhaps also European universities, which own large and ageing real estate portfolio’s in need of (re)investment: how can universities invest their resources as effectively as possible and not in space that will be poorly used? The purpose of this paper is to explore the use of smart campus tools to improve space use on campus. Design/methodology/approach: First, a survey at 13 Dutch universities is conducted, consisting of a questionnaire and semi-structured interviews with Dutch campus managers. Then, semi-structured interviews are held with a number of parties in other industries to explore the use of smart tools in other contexts. Findings: The universities’ demand for smart tools is mainly directed at the automatic and continuous collection of real-time space use data for education spaces and giving students insight into the availability of study places on campus. The tools at the Dutch universities focus largely on effectiveness: helping their users in their search to find a space that supports their activities. In other industry sectors, the results suggest that the use of smart tools is more directed towards efficiency: maximizing the use of existing space or optimising the operations of the organisation. Originality/value: Although the use of smart tools in practice has gained significant momentum in the past few years, research on the subject is still sparse. By providing a framework for smart tools, as well as exploring the work done in theory and in practice, the authors hope to increase discussion and research on the subject from the perspective of corporate real estate.

Real estate portfolio decision making

In the Netherlands municipalities own a substantial number of buildings within their city which have been acquired to serve societal goals. However, some buildings might no longer serve these goals and could be sold or, conversely, buildings that could serve societal goals can be acquired. More than one decision maker decides which intervention to select, choosing the intervention that meets the different goals best is a multi-criteria group decision making problem. Multiple Criteria Decision Analysis (MCDA) methodologies enable the aggregation of the performance rating of alternatives on different criteria into an overall performance rating. Alternatives are rated on preference on each criterion. Given that criteria are properties by which to measure the portfolio’s performance on a goal MCDA approaches help to find the intervention that meets different goals best. A survey is carried out on models that help decision makers to align the real estate portfolio to the organizational objectives and to select the best performing portfolio. The methods did either 1) use (preference) scales to which mathematical operations do not apply or 2) not have a well-defined procedure for selecting the most preferred portfolio. See Barzilai (2007) for the requirements for these operations to be applicable. Binnekamp (2010) devised a Preference-Based Design (PBD) methodology using preference scales to which mathematical operations are applicable enabling group decision making. This paper describes how this methodology has been converted into a Preference-Based Portfolio Design (PBPD) methodology that 1) allows all decision makers to iteratively enter their criteria and preferences and 2) orders all possible portfolios based on the overall preference rating.

Analysing fourteen graphical representations of corporate real estate alignment models

Purpose This paper reports an analysis of the graphical representations of fourteen corporate real estate (CRE) models. It does this to establish the systematic, metatheoretical requirements for modelling CRE alignment which to date have been disguised in a multitude of models. Design/methodology/approach This metastudy of CRE alignment models used a qualitative hermeneutic method to inductively develop understanding of the models’ constituent parts. Several iterations of graphical and textual analysis were required to do this. Further deductive analysis sought to understand the individual models relative to this new understanding. Findings The analysis showed that a total of twelve components have been used to model CRE alignment. These are divided into four Building Blocks: Understanding corporate strategy; Understanding real estate performance; Making real estate strategy; and Implementing real estate strategy. While every model’s representation contained the four Building Blocks, few models contained ...

Strategic campus development at two European universities – From challenges explored in 2007 to visions, strategic aims and development plans for TU Delft and NTNU in 2017."

In June 2007 the “Competitive Campuses – The Challenge for European Universities” conference was arranged in Trondheim, Norway NTNU in conjunction with ETH Zurich and Sasaki Associates in Boston. The main focus was on the revitalization of the mono-functional campuses to new concepts that stimulate interaction and integration with the city. At that time two contradictory trends emerged: on the one hand the trend to create campus projects that reconcile and reintegrate large-scale institutions with the surrounding urban tissue into open, communicative structures, and on the other hand towards “gated-ness”, the increasing seclusion under the influence of efficiency, economy and social security. During the 2007 conference a group of 16 international experts addressed questions such as: ‘What kind of spatial organization promotes internal knowledge transfer and social interaction while simultaneously integrating with the surrounding urban environment? Which strategies are needed to create sustainable centres of knowledge that are flexible enough to respond to the fast changing demands of industry and society?’ This study investigates if the trends, major questions and the understanding of these challenges for campus development of European universities are relevant ten years later, and how these challenges and opportunities are used in urban and campus planning. Our main focus will be on strategic campus development. This is based on a view that buildings can be seen as functional frameworks for human activity, and thus, that ideas about university space should be reconsidered as activities and demands on performance changes (den Heijer 2011, Beckers et al., 2015). The landscape of learning, teaching and knowledge development is currently moving into new forms altering the needs for working spaces. The comparative study of the two universities in the Netherlands and Norway will be descriptive cases, and they both represent institutions having gone through major changes for campus development and management over the last 10 years. For analysing the case studies we have used a simplified theoretical framework addressing; challenges and opportunities, vision and main objectives, strategic aims and target goals and how these factors are implemented in real projects. The expected outcome will include analyses of how strategic goals and aims for the two institutions align with actual campus development projects and management in large and smaller scale.

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.

Improving CRE decision making at Oracle: Implementing the PAS procedure with a brute force approach

Purpose –Alignment of corporate real estate to a corporation’s business strategy is a long-standing issue. In the past multiple models have been developed to support this process, but research shows that they fall short on certain parts of the CRE alignment activity, often lack transparency and fail to choose the real estate strategy that delivers most value to the organisation. The Preference-based Accommodation Strategy (PAS) procedure has been proposed as a solution to these issues and first results in two pilots are positive. However, to optimise the results, a brute force approach should be implemented in the procedure. This paper reports on a pilot study wherein this PAS procedure 3.0 was tested and evaluated. Design/methodology/approach – A literature study is conducted to develop a theoretical basis for the implementation of a brute force approach in the PAS procedure. This procedure is implemented in a pilot study by building a mathematical model. During the pilot the users improved the reflection of their preferences in the model, in an iterative process of manually designing portfolio alternatives. A brute force approach is applied to the final model to yield the optimum portfolio alternative. The implementation of the brute force approach is evaluated and it is determined if the approach yields a higher preference rating than the stakeholders can achieve by manual design. Findings – The pilot study shows that the brute force approach is able to improve the results over the manual design and yields a 7% increase in the real estate alignment compared to the current portfolio. The evaluation results reveal that the implementation process results in acceptance of- and trust in the model. Moreover, the users are very positive about the PAS and indicate that the model better reflects their preferences than their current process. They even indicate that they want to incorporate the tool in their daily decision-making process. Research limitations/implications – This pilot study was less complex than previous pilots, therefore the PAS procedure 3.0 should be tested in more complex pilots to discover the boundaries of the brute force approach but to use it where possible. Also a search algorithm should be developed for pilots that are too complex for the brute force approach. Practical implications – This pilot study has shown that the PAS procedure 3.0 is able to improve the corporate real estate (CRE) decision-making process and hereby improve the corporate real estate (CRE) alignment. This will result in more added value of real estate to the businesses in which the tool is used.

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.

Smart tools on campus : a literature study connecting real estate management objectives and positioning technologies

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. Despite extensive research, existing approaches have not had much uptake in practice and fall short in a number of aspects (H 2011). The hypothesis in this paper is that indoor positioning technology enables us to accurately observe users and measure their behaviour real-time, which improves alignment in two ways: firstly, by improving the current match between supply and demand by giving end users access to this information to help them find vacant work places or their colleagues, and secondly by improving decision-making for the future match by delivering more accurate insight into space use. Reports suggest that significant improvements in space utilization are possible. In the UK, the average utilization for educational space is 27% (SMG 2006); the report suggests that an improvement of 3% (from 27% to 30%) can lead to 10% savings in costs and m2. The objective of this paper is to provide a framework in which existing research in indoor positioning is positioned in relation to the objectives in CREM. To the best of the authors’ knowledge such an overview does not exist. In the studied papers on positioning techniques the added value for real estate management is just briefly touched upon. Concepts such as better supporting user activities or reducing energy costs are shortly described as potential benefits of the technologies demonstrated in the papers, and almost never are these benefits quantified. In the literature five measurement objectives can be distinguished: measuring frequency, occupancy, location, movement and behaviour. Measuring frequency is the simplest, after which each subsequent objective becomes more complex. The first findings suggest a clear relationship between these measurement objectives and (1) the measurement method, such as Wi-Fi or Occupancy sensors and (2) the objectives in real estate management, such as supporting user activities and reducing m2 footprint. The framework presented in the paper provides a useful tool for both practitioners and researchers. For researchers, REM objectives that are not or only slightly touch upon provide a starting point for future research and applications. For practitioners, the framework provides useful information that can help them match their organisation’s objectives and priorities to the prevalent measurement methods.