CoreNet Global’s Corporate Real Estate 2020 research project analyzed the current and future state of the industry. It focused on the future business environment and to collect and distribute best practices, tools and studies to meet future business needs effectively. This article focuses on Enterprise Leadership. A second article appears on FMLink, Portfolio Optimization & Asset Management. The remaining articles may be found on the CoreNet Global Web site through the following links:
By 2020, the corporate real estate (CRE) leader will evolve from a subject matter specialist to a strategic partner with a broad knowledge of business strategies. He or she will display a mastery of the core functions of the CRE role while demonstrating an ability to add value to the enterprise by identifying potential synergies and efficiencies across the organization.
Bold Statements
- By 2020, senior leaders will evolve from subject matter specialists focused on execution to integrators, change agents and strategists who are viewed internally as an essential, equal partner to and for the business.
- Senior leaders will be competent in the core business and possess a skill set that is diversified, cross-functional and focused on customer relationship and process management. They will advocate sustainability and corporate social responsibility goals.
- Senior leaders will champion the integration of leading-edge technology into real estate/workplace operations and into the workplace itself to support increased employee productivity and an enhanced employee experience.
- Senior leaders will be able to measure the impact of workplace infrastructure on business units and the enterprise.
- Senior leaders will champion change in the supply side of the service industry, including more innovative partnerships and the seamless integration of internal and external resources globally.
- In support of a global, mobile work force, senior leaders will lead the development of improved corporate solutions that elevate the brand, promote the culture and assure employee engagement, particularly for client-facing space.
Multi-disciplined Skill Sets
In this respect, the CRE leader of 2020 will demonstrate a diverse set of skills beyond basic transaction management to better enable access and opportunities to influence strategy with other group leaders to gain status as an equal partner in a collaborative role, also shaping and advocating their company’s sustainability and corporate social responsibility agenda. As he or she naturally assumes a larger, more collaborative role in the corporate structure, the CRE leader of 2020 will capitalize on a diversified skill set to focus on customer relationship and process management. Further, he or she will leverage knowledge of the expectations and regulations of the mature and emerging markets in which the company operates.
This domain is a watershed that clearly overarches the other seven. Partnering with Key Support Functions is primary among them because CRE will leverage its collaborative relationships with IT and HR to proactively advocate for the adoption of emerging technologies and, of course, for work enablement.
There is a Workplace Strategy and Portfolio Optimization emphasis overlapping with the leadership role. As evolving technology increasingly encourages mobility in the work force, CRE leaders will focus on optimizing costs while driving employee productivity by designing collaborative, flexible workspaces that are adapted to the specific needs of the work force and reinforce the organization’s culture and values.
Technology Tools also touches on Enterprise Leadership. As CRE leaders integrate technology to achieve effective workplace solutions, it is incumbent upon leaders to demonstrably measure the impact of such enhancements on various phases of workplace productivity to align workplace design initiatives with overall corporate strategies.
Alignment is critical to attaining leadership status, as are reliable performance metrics. Whether measuring the impact of workplace infrastructure on productivity or the enterprise, there remains much room for growth and a tremendous opportunity for CRE to assume leadership to drive innovation in this area. Increasing CRE’s value within the corporate environment requires advancing our conversations from cost alone to both cost and value. Measuring the impact of workplace infrastructure on business units and the enterprise is fundamental to that progression.
Delivering on a Global Scale
CRE leaders will continue to face headcount and cost constraints because of persistent global recessionary conditions, so that outsourcing and service delivery models become ingrained in the CRE leader’s repertoire. In this environment, CRE leaders will be further incentivized to leverage increasingly strategic and collaborative relationships with supply-side service providers to champion initiatives that senior leaders have.
The CRE leader of 2020 will embrace this vital collaborative role in his/her company, from which he/she is able to manage process, strategy and transaction. He or she will also gain a deeper appreciation for the effect of policy implementation on infrastructure and will leverage this knowledge and these skills to actively promote the culture, brand and employee engagement of its organization, ultimately connecting the CRE leader directly to the key business drivers that corporations are prioritizing most of all.
ENTERPRISE LEADERSHIP RECOMMENDATIONS
To best prepare for 2020, CRE leaders must:
