Transforming corporate real estate from a decentralised to centralised model

Abstract

This paper shows that by applying a unified corporate real estate (CRE) framework to a regionally managed portfolio, combined global consistency with local flexibility transforms real estate into a strategic enabler of enterprise value. Global enterprises are increasingly recognising that a decentralised CRE model — while once beneficial for regional nuance — can lead to inconsistent decision making, fragmented data, duplicative costs and missed strategic opportunities. To remain competitive, companies are transitioning toward a global integrated CRE platform that aligns real estate with enterprise strategy, drives efficiency and enhances value delivery, but achieving this shift requires more than structural redesign. It requires a focused plan to be executed including: (1) developing a roadmap that defines, prioritises and organises crucial factors for change; (2) a defined changed management process; and (3) a process to centralise portfolio strategy to drive global goals and impact regional sensitivities. One company (The Company) one of the world’s largest consumer products companies, in response to shifting global demands, cost pressures and changing workplace expectations, embarked on a strategic transformation to centralise its CRE function. Transitioning from a regional model to a unified, strategy-driven organisation, The Company aimed to unlock operational efficiencies, elevate portfolio performance, and ensure alignment with its broader business objectives. This paper aims to provide an overview of The Company’s journey and to highlight the key outcomes and results The Company is currently enjoying. It also aims to describe and highlight key activities and frameworks other CRE organisations can employ to enjoy similar outcomes and benefits. For each of the sections described, we will provide a brief overview on why having the element is key to the initiative’s success, and key actions required to enjoy similar outcomes. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.