Boundary Spanning: CRE Organization Challenges

by CoyDavidson on May 24, 2012

Boundary Spanning: A New CRE Paradigm

Chris Zlocki, Managing Director of Strategy & Innovation for Colliers International recently published a white paper on Boundary Spanning: CRE Organization Challenges based on survey results from corporate real estate executives.

Eighty-six percent of senior executives interviewed for a Center for Creative Leadership (CCL)® study believe it is extremely important for them to work effectively across boundaries, yet only seven percent believe they are currently successful at doing so.

Real estate is a key operational business area, instrumental in improving global and regional business performance. In the fall of 2011, Colliers International surveyed its global Corporate Solutions clients about the challenges CRE executives face in managing their real estate organizations, processes and portfolios, across the five types of boundary described by the CCL.

Summary Findings

  • Corporate real estate leaders face steep challenges in managing global business organizations in today’s environment.
  • There are opportunities to improve delivery and business effectiveness across all parts of the organization.
  • The majority of collaboration is regional, not global.
  • Regional sensitivities in structure and real estate transaction process, and communication and time variances are the most challenging areas for geographic boundary spanning.
  • Collaboration occurs most in the Transaction Management process, and least across Strategic Planning functions.
  • Centralized CRE organizational structure is overwhelmingly preferred over any other model.
  • Respondents were very satisfied with the delivery of Transaction Management services by their service provider.
  • There is significant room for improvement in the delivery of global Facilities and Project Management services provided by third-party vendors.
  • CRE leaders and their organization(s) report equally (eighteen percent) to the CEO, CFO and COO. Nearly half stated that they report to a myriad of other leaders including HR, IT, Manufacturing, Planning and Procurement.
  • Thirty-six percent of real estate services sourcing is led by procurement; followed by the real estate department at twenty-seven percent, and finance at eighteen percent.

You can view the full report here.

CI Whitepaper Boundary Spanning 2012

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