Bringing corporate real estate business models into the 21st century

Abstract

Corporate real estate (CRE) groups are experiencing a transformation in the way they conduct business and are increasingly finding that ongoing success depends on changing their business model from the traditional mode to one more attuned to the 21st-century business environment. That change is being accomplished through various factors which are not necessarily new but produce an innovative result when deployed together. Beginning with defining (or re-defining) their business, these groups must approach their overall service delivery using a customer-centric business model with a clearly defined mission, objectives, business strategy and even a marketing plan. Adhering to the saying that ‘If it's not measured, it's not done’, they must put in place a clear set of performance metrics and give serious consideration to using a balanced scorecard. They must make an assessment of their operating model (including the organisational structure and outsourcing programme) and implement cross-functional best practice processes with a prime focus on eliminating ‘silos’. Finally, they must deploy the right infrastructure to support their operations by addressing such issues as technology and change management. Through these detailed planning and action steps, CRE groups can successfully achieve a new 21st-century business model that best supports their clients while enhancing their own value proposition.