Capabilities of the new strategic organization

Abstract

Purpose

The purpose of this study/paper is to highlight emerging themes in CRE capabilities and organizational models. The authors explain a Lean Six Sigma-based staffing optimization and integration methodology which ensures organizational design is aligned with enterprise requirements. The ultimate objective is a CRE organizational model that sets resourcing requirements for years ahead while yielding innovative new savings. These priorities set an archetypical precedent for emerging organizational models. The emerging organizational blueprint demonstrates a clear move away from the traditional CRE model by optimizing functional service delivery toward a model that drives business integration, strategy development and creative solution deployment.

Design/methodology/approach

Throughout numerous assessments of corporate CRE organizations in the past year, the authors have witnessed emerging themes in CRE priorities and the capabilities required for achieving those priorities. The authors have utilized a Lean Six Sigma-based staffing optimization and integration methodology which ensures that organizational design is aligned with enterprise requirements.

Findings

Whereas previous models were built to emphasize functional service delivery, the emerging model is structured to enable a core team to focus on developing strategic relationships and delivering strategic solutions. Functional service delivery is managed directly through a strategic partnership with an outsourced service provider. The emerging model suggests a small, centralized core leadership team. Careful governance and communication protocols must be developed to ensure the duplication and redundancy does not become an issue.

Originality/value

Lean Six Sigma has evolved into a business improvement system that has taken hold within many high-performing real estate and facility services – a methodology that emerged from mechanized manufacturing might seem ill-adapted to CRE organizational development. Yet, with guided implementation and disciplined use, we have observed that Lean Six Sigma yields high-impact results in service environments and even with non-technical areas like organization design. This is a unique vantage point that combines engineering technicality against cultural aspects of organizational development.

Citation

D. McCarty, T. and Gottschalk, D. (2014), "Capabilities of the new strategic organization", Journal of Corporate Real Estate, Vol. 16 No. 4, pp. 290-298. https://doi.org/10.1108/JCRE-02-2014-0003