Operations management
Place
Introducing cream
3 alignment strategies:
1. The relationship between PEOPLE and their PLACES = PE&PL
2. The relationship between PEOPLE and their ( workplace ) PROCESSES = PE&PR
3. The relation ship between PLACES and the PROCESSES they accommodate=
PL&PR
What is cream?
CRE refers to all the buildings and land in use by organizations with the sole objective of
accommodating its core business.
It involves all activities relating to the planning, acquisition, management and disposal of
corporate real estate
It focuses on aligning corporate real estate with corporate strategies and obtaining added
value.
M = management.
It concerns the management of buildings and parcels of land at the disposal of private and
public organizations which are not primarily in the real estate business
Any organization who occupies space is in the real estate business and needs to manage it
properly
A = asset, It is an item of value owned. It represents value.
In financial accounting, an asset is an economic resources. Anything tangible and intangible
that can be owned or controlled to produce value and that is held by a company.
AM = asset management.
It ensures that the land and building of an organization is optimally structured om the best
corporate interest.
So what is cream?
CREAM contributes to organizational effectiveness though 3 key dimensions
1. Real estate as a financial asset ( people and place )
- Relates to the economic value
- Represented as a fixed asset on the balance sheet
2. Real estate as a physical asset ( place and process )
- Relates to the physical provision of land and buildings
- The buildings provide a physical envelope in which an organization
performs its core business activities
3. Real estate as a operational asset ( people and process)
- Relates to the space inside the building that has an operational value to an
organization
Functions of buildings:
1. Protective function
2. Domain or territorial function
3. Social function
, 4. Cultural function
5. Spatial organization of activities
6. Climate regulations
7. Symbolic function
8. Economic function
Identity through CRE
Step-by-step plan for branding by corporate real estate
Conceptual framework ( showing the possible role of real estate in corporate branding)
Step 1: Outline corporate brand values
Real estate and the workplace need to support the vision, brand & values of the
organization
Step 2: Develop corporate real estate strategies
Portfolio management ( real estate as an investment asset ), Location strategy ( well-
performing office locations ), Building strategy ( a building that meets your business
objectives) and workplace strategy ( a workplace strategy that fits the identity of the
company and of the employee)
Step 3: Create tactical plans and implements
Creating integrated solutions to business critical issues around real estate, people,
technology and work: Taking IT, HR and Facilities aspects into account
Implementing enduring real estate solutions and change management to deliver on
business objectives
Identify actions/ measure to translate corporate brand values into corporate real
estate strategies
Step 4: Evaluate success and measure performance
Monitor measurable outcomes and feedback: post occupancy analysis, conduct
brand values awareness campaign among internal and external stakeholders and
ongoing change management
Different roles
Demand and supply side
1. Demand: people and users ( the functional requirements imposed on the building by
users ) functionality
2. Supply: real estate ( the extent to which the building provides in the functional
requirements imposed on the building by users ) serviceability
, Diversity workforce
1. Different gender
2. Different age
3. Different generation
4. Different in physical and mental health
5. Different job functions
6. Etnic & cultural difference
7. Different FTE contracts
FTE = full-time equivalent ( 1 FTE = 40 hours / week )
- Indicates the workload
- Makes it comparable
- Measure involvement
0,5 FTE = 20 hours / week ( 2 x 0,5 = 1 FTE )
8. Different life – stage
9. Different roles
2 distinct roles:
- Role 1: representing the interests of the owners.
The organizational ovjectives are: Labour productivity, innovation power,
employee satisfaction, health & safety and efficiently
- Role 2: representing the interests, needs & requirements of the user ]
The organizational objectives are: physiological needs, safety needs,
social needs, self – esteem needs and self actualization
Relationship between them is Evidence-based decision-making
Decision making according to the AC – model: Accomodation choice-model, linking
decisions about: organization goals & objectives with organizational acconomodation
( real estate )
What do users want?
For example: lighting, indoor climate, privacy, opportunities to concentrate,
accessibility of the building and satisfaction with the organization.
The corporate identity model:
Corporate design Corporate behavior
slogans, logo, products, Indirect company, management
architecture, location and employee behavior.
Direct Indirect
Corporate identity
Property characteristic:
1. Push factors: factors that are experienced as negatieve, and which leads to wanting a
better location/ building eg bad access and no parking space
