Comments for IntelligentCRE http://intelligentcre.com Aligning Real Estate with Corporate Strategy Fri, 05 Sep 2008 07:01:00 +0000 http://wordpress.org/?v=2.0.4 Comment on An Uncoordinated Effort: Two Units Compete for the Same Asset by Generic xanax. http://intelligentcre.com/2007/07/09/an-uncoordinated-effort-two-units-compete-for-the-same-asset/rory-johnson/#comment-563 Thu, 14 Aug 2008 18:19:08 +0000 http://intelligentcre.com/2007/07/09/an-uncoordinated-effort-two-units-compete-for-the-same-asset/rory-johnson/#comment-563 <strong>2mg xanax order....</strong> Buy xanax. Xanax no prior rx needed. Xanax. Xanax side effects. Titel auteur datum xanax medication bmnwbbuk.... 2mg xanax order….

Buy xanax. Xanax no prior rx needed. Xanax. Xanax side effects. Titel auteur datum xanax medication bmnwbbuk….

]]> Comment on The Logical Reason to Centralize Corporate Real Estate by Jacob Cynamon http://intelligentcre.com/2007/10/12/the-logical-reason-to-centralize-corporate-real-estate/rory-johnson/#comment-10 Wed, 17 Oct 2007 20:47:59 +0000 http://intelligentcre.com/2007/10/12/the-logical-reason-to-centralize-corporate-real-estate/rory-johnson/#comment-10 Rory, you're right and you are wrong. I wholeheartedly believe that there can be an efficiency gained by isolating and defining real estate processes and decision-making capacities - operations managers, for instance, should be focusing on operations rather than being forced to wear multiple hats and dilute their value to the organization. However, it is worthwhile to distinguish between "specialization" and "centralization". The former is the means by which you place dedicated experts into roles for which they are well-suited; the latter relates to creating a single source or well-defined hubs of decision-making capacity. Specialization is valuable because it puts the right people at the helm of the real estate strategy and execution - whether this is through internal resources or an external firm is peripheral. Centralization, on the other hand, may actually reduce efficiencies - rather than ensuring best-in-class decision makers, you have the potential of creating an averaging effect across your real estate decisions. The team at corporate HQ may understand the ins and outs of workplace integration, but not be intimately familiar with the local office market on the other side of the world - in essence, potentially creating a situation of penny-wise but pound-foolish. All told, a great post to get decision makers thinking. Rory, you’re right and you are wrong.

I wholeheartedly believe that there can be an efficiency gained by isolating and defining real estate processes and decision-making capacities - operations managers, for instance, should be focusing on operations rather than being forced to wear multiple hats and dilute their value to the organization.

However, it is worthwhile to distinguish between “specialization” and “centralization”. The former is the means by which you place dedicated experts into roles for which they are well-suited; the latter relates to creating a single source or well-defined hubs of decision-making capacity. Specialization is valuable because it puts the right people at the helm of the real estate strategy and execution - whether this is through internal resources or an external firm is peripheral. Centralization, on the other hand, may actually reduce efficiencies - rather than ensuring best-in-class decision makers, you have the potential of creating an averaging effect across your real estate decisions. The team at corporate HQ may understand the ins and outs of workplace integration, but not be intimately familiar with the local office market on the other side of the world - in essence, potentially creating a situation of penny-wise but pound-foolish.

All told, a great post to get decision makers thinking.

]]> Comment on An Uncoordinated Effort: Two Units Compete for the Same Asset by IntelligentCRE : The Logical Reason to Centralize Corporate Real Estate http://intelligentcre.com/2007/07/09/an-uncoordinated-effort-two-units-compete-for-the-same-asset/rory-johnson/#comment-9 Fri, 12 Oct 2007 20:50:37 +0000 http://intelligentcre.com/2007/07/09/an-uncoordinated-effort-two-units-compete-for-the-same-asset/rory-johnson/#comment-9 [...] The question becomes whether the centralization effort is worth the reward.  In my previous post An Uncoordinated Effort this was clearly the case.  Under less extreme circumstances, the benefits can include accountability, synergy and economies-of-scale. McDonald’s for example, operates owned and franchised stores.  But the franchisees don’t secure the convenient intersection locations for their restaurants, how could they, they lack the expertise and capacity to do so.  Instead, McDonald’s has regional real estate teams.  Accountability resides with those who are set up to manage real estate, not operating managers who are set up to oversee operations. [...] […] The question becomes whether the centralization effort is worth the reward.  In my previous post An Uncoordinated Effort this was clearly the case.  Under less extreme circumstances, the benefits can include accountability, synergy and economies-of-scale. McDonald’s for example, operates owned and franchised stores.  But the franchisees don’t secure the convenient intersection locations for their restaurants, how could they, they lack the expertise and capacity to do so.  Instead, McDonald’s has regional real estate teams.  Accountability resides with those who are set up to manage real estate, not operating managers who are set up to oversee operations. […]

]]> Comment on In Sync: Real Estate and Corporate Strategy by Michael Jordan http://intelligentcre.com/2007/07/13/in-sync-real-estate-and-corporate-strategy/rory-johnson/#comment-4 Wed, 29 Aug 2007 15:05:29 +0000 http://intelligentcre.com/2007/07/13/in-sync-real-estate-and-corporate-strategy/rory-johnson/#comment-4 I don't think the story in this article is a very good example of aligning real estate and corporate strategy. The main point I got from the article is that they did a better job at thinking big picture about the CRE financial strategy...one element of strategy, of course, but still a support function. Aligning real estate to business strategy would be evidenced by better integration in core, not support, functions such as using real estate to access markets. Just my opinion.... I don’t think the story in this article is a very good example of aligning real estate and corporate strategy. The main point I got from the article is that they did a better job at thinking big picture about the CRE financial strategy…one element of strategy, of course, but still a support function. Aligning real estate to business strategy would be evidenced by better integration in core, not support, functions such as using real estate to access markets. Just my opinion….

]]> Comment on The Greater Sucker Theory and Consequences for Tenants by GoNyMets62 http://intelligentcre.com/2007/08/12/the-greater-sucker-theory-and-consequences-for-tenants/rory-johnson/#comment-3 Fri, 17 Aug 2007 21:23:20 +0000 http://intelligentcre.com/2007/08/12/the-greater-sucker-theory-and-consequences-for-tenants/rory-johnson/#comment-3 Well, looks like Blackstone, after Steve Schwarzman took it public, revealed the tripling of net profits for the company. Kind of off topic too, I found a website that actually maps out Schwarzman's many connections throughout the business world. It's actually pretty interesting. http://www.newsvisual.com/newsvisual/2007/08/steve-schwarzma.html Well, looks like Blackstone, after Steve Schwarzman took it public, revealed the tripling of net profits for the company. Kind of off topic too, I found a website that actually maps out Schwarzman’s many connections throughout the business world. It’s actually pretty interesting.
http://www.newsvisual.com/newsvisual/2007/08/steve-schwarzma.html

]]> Comment on Corporate Real Estate Service Providers: Two Faces are Not Better than One by J. Thompson http://intelligentcre.com/2007/07/31/corporate-real-estate-service-providers-two-faces-are-not-better-than-one/rory-johnson/#comment-2 Tue, 31 Jul 2007 17:13:51 +0000 http://intelligentcre.com/2007/07/31/corporate-real-estate-service-providers-two-faces-are-not-better-than-one/rory-johnson/#comment-2 Well said. I have worked with conflicted service providers in the past and had suspicions, especially when we toured and looked at buildings in the market. Keep up the good work! Well said. I have worked with conflicted service providers in the past and had suspicions, especially when we toured and looked at buildings in the market. Keep up the good work!

]]>