1 / 32

ERES 2011 Eindhoven

ERES 2011 Eindhoven. Structuring-clustering-visualizing – What are the tasks of a “Value Manager”? A methodology to analyze management jobs in real estate Dr. Annette Kämpf-Dern TU Darmstadt, Department of Law and Economics Chair of Real Estate Management and Construction Management

ronia
Download Presentation

ERES 2011 Eindhoven

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ERES 2011Eindhoven Structuring-clustering-visualizing – What are the tasks of a “Value Manager”?A methodology to analyze management jobs in real estate Dr. Annette Kämpf-Dern TU Darmstadt, Department of Law and Economics Chair of Real Estate Management and Construction Management 16.06.2011

  2. Agenda Problem & Approach – Job names don't tell enough Methodology – Structuring – clustering – visualizing Results – Selected job profiles Outlook – Job profiles are fundamental for success

  3. Value creation in REM requiresspecialization jobnamesdon‘ttellenoughExampleofstrategicmanagement firm (AuM: € 1 Billion) Strategic Real Estate Management (Assetsunder Management: Circa € 1 Billion) Depot Bank Funds Accounting Strategic RE Management: Effectiveandefficientstructure Interdisciplinarythinkingandacting Experienced & qualifiedpersonnel Ongoingcommunication assure Analyticexpertise & steering High qualityfiduciarydecisions Effectiveassetmanagement RE-Controlling/Portfoliomgmt. (3 MA) Controlling/PFM Data Analysis Valuation/ Contract-Contr. 1 MA Special Topics Valuation Transactions Value Management (Economical) 3 MA Refurbishments/Projects Value Management (Technical) 2 MA MF-System Maintaining Source: Participatingcompany, Kämpf-Dern (2010), p. 358 Letting ObjectAdm. Invoices Which tasks, responsibilities, qualifications, earnings are associated with the job of a “Value Manager”?

  4. Websurvey to find out81 respondentsfrom 6 differentlyorientedcompanies # of Websurvey-responds per company Type ofcompany Real Estate Stock Company: 44 % RE Funds / RE Fund Service provider: 31 % Asset Manager (Service provider): 25 % n=81 Source: Kämpf-Dern (2010), p. 359

  5. Focus: RE Asset Management# ofresponds per function1 n=81 Source: Kämpf-Dern (2010), p. 362 1. Based on functionalnames, qualificationandresponsibilitieslisted

  6. Questionnairerequiresconcretizeddifferentiationofgeneralmanagementtasks, …… but analyzed „classically“ Detailedwebsurveyquestions … … areanalyzed „classically“ A) Plan Research & analyze A), B) Plan strategy & prepare Operate G) Operate F) Report &controlperformance Control Organize C), D), E) Consult, decide, organize G) Implement Steer/coordinate &controloperations Levels: Company, portfolio, object, measure

  7. 280 taskscouldbechosen – structuredby 4 blocks, 42 topics, 7 phasesExcerptfromwebsurvey 7 Phases Blocks: • Target systemsituational, marketandobjectinformation • Real estatetopics • Financial topics • Administration, accounting, reporting, riskmanagement 4 Blocks with 42 Topics 280 Tasks Source: Kämpf-Dern (2010), p. 456 ff. 73 respondents could result in 20.440 possible data points. Problem: Some chose 15 tasks, others 120 – How to calibrate and get an impression on focal points per job?

  8. Agenda Problem & Approach– Job names don't tell enough Methodology – Structuring – clustering – visualizing Results – Selected job profiles Outlook – Job profiles are fundamental for success

  9. Investment Decisions &Controlling Service Providers Investment Planning &Portfolio Target Setting InvestmentResultsControlling Advising REIM &Organizing Implementation Accounting & Reporting Portfolio Decisions & Controlling Service Providers Portfolio Planning &Object Target Setting PortfolioResultsControlling Advising REPM &Organizing Implementation Object Decisions & Controlling Service Providers Object Planning &Measures TargetSetting ObjectResultsControlling Advising REAM &Organizing Implementation Measures/Action Decisions & Controlling Service Providers Action Planning Action ResultsControlling 5-Step-Methodology toidentifyandvisualizejobclusters in Real Estate Management (REM)Overview 2) Organize 5) Account& Report Step 1: Use an overallframework Step 2: Organizetaskswithinframework Mgmt.phases: 4) Control 1) Plan Plan Organize Imlement Control Operate Mgmt. Phase 3) Implement/Steer Functional Levels Level Rechnungswesen und Reporting 111F 112F 113F 311F 312F/T 313F 314F REIM Structuring REIM G11 G12 G13 LC Phase REPM 121R 122R 124R G31 G32 G33 G34 REPM G1R 321F/R 323F 134F Step 3: Weighandnormalizetasks Step 4: Buildjobclusters G3R 322F/T/R 324F/R G14 REAM 211F 212F 213F Target-oriented coordination and value-management Target-oriented coordination and value-management REAM/SOM 333F 334F Clustering 412F 413F 421F/T/N 423F/T/N OOM PrM/REFM 422F/T/N/R 424F Step 5: Visualizeclusters G41 G42 G43 G44 G4R&5R 221R 222F/R 223F 214R 515F/T Core Processes RES Visualizing G2R G5 233F 234F 525T/N/R G21 G22 G23 G24 50 Life Cycle (LC) Groups 20 Functional Groups

  10. Step 1: Structurethetasks (I)In REM 5 Functional Levels canbedistinguished RE InvestmentManagement(REIM) • Real Estate Management (REM): • Planning/Developing, • Organizing, • Implementing/steering, and • Controlling • lower management activities or • real estate core processes Strategic REM Real EstatePortfoliomanagement(REPM) Real Estate Asset Management (REAM)(Strategic Object Management) Property- & Real Estate Facility Management(PrM & REFM)(Operative Object Management) Operative REM Conception/Supply Usage/Operation Recovery Real Estate Activities(Core Processes in Life Cycle Phases) Source: Furtherdevelopedfrom Kämpf-Dern (2010), p. 20

  11. Investment Decisions &Controlling Service Providers Investment Planning &Portfolio Target Setting InvestmentResultsControlling Advising REIM &Organizing Implementation Accounting & Reporting Portfolio Decisions & Controlling Service Providers Portfolio Planning &Object Target Setting PortfolioResultsControlling Advising REPM &Organizing Implementation Object Decisions & Controlling Service Providers Object Planning &Measures TargetSetting ObjectResultsControlling Advising REAM &Organizing Implementation Measures/Action Decisions & Controlling Service Providers Action Planning Action ResultsControlling Step 1: Structure the tasks (II):All management levels have to perform planning, organizing, steering and controlling tasks (marked: REAM) 2) Organize 5) Account& Report Functional Levels Mgmt.phases: 4) Control 1) Plan 3) Implement/Steer REIM REIM REPM REPM REAM Target-oriented coordination and value-management Target-oriented coordination and value-management REAM/SOM OOM PrM/REFM Core Processes RES Source:,Furtherdevelopedfrom Kämpf-Dern (2010), p. 309 But: Functional levels ≠ job designs  What are typical / reasonable combinations for jobs?

  12. Step 1: Structurethetasks (III)Eachtaskismatchedwith a managementlevelanda lifecyclephase (LC-phase) Plan Organize Imlement Control Operate Mgmt. Phase Level LC Phase Source:, Kämpf-Dern (2010), p. 307f.

  13. Step 2: Group taskswithinstructuretofacilitateanalysis – Lessdetailed, but betterto handle50 Life Cycle Groups combinelevel, lifecycle & managementphase Plan Organize Imlement Control Operate Mgmt. Phase Level 111F 112F 113F 311F 312F/T 313F 314F G11 G12 G13 LC Phase 121R 122R 124R G31 G32 G33 G34 G1R 321F/R 323F 134F G3R 322F/T/R 324F/R G14 211F 212F 213F 333F 334F 412F 413F 421F/T/N 423F/T/N 422F/T/N/R 424F G41 G42 G43 G44 G4R&5R 221R 222F/R 223F 214R 515F/T G5 G2R 233F 234F 525T/N/R G21 G22 G23 G24 50 Life Cycle (LC) Groups 20 Functional Groups Focus: F=Financial, T=Technical, N=User, R=Accounting/Reporting

  14. Step 3 (I): Givegroupsweights (addingupto 100%)Here: 20 functionalgroups (combining LC-Phases) with 5 % each All 20 groups (G2R and G3R counttogether) get 5% each. M-Phases 1) Plan • Analyze • Plan & prepare 2) Organize • Consult • Decide • Organize 3) Implement • Steer/coordinate • Controloperations • (Operate) 4) Control • Controlperformance 5) Account& Report M-Levels G11 5,0% G12 5,0% G13 5,0% G145,0% G1R5,0% 25,0% Investment G235,0% G215,0% G225,0% G24 5,0% Portfolio 23,0% G2R3,0% G335,0% 22,0% Strat. Objekt G3R 2,0% G315,0% G325,0% G345,0% G435,0% 25,0% Oper. Objekt G4R&5R5,0% G415,0% G425,0% G445,0% G55,0% 5,0% RES  20,0% 20,0% 25,0% 20,0% 15,0% 100% Equal weights signify that a job is maximal broad / shows no focus on levels or phases Source:, Kämpf-Dern (2010), p. 309.

  15. Step 3 (II): Normalize individual answers so thateachperson‘ssumaddsupto 100%Example 1) Plan • Analyze • Plan & prepare 4) Control • Controlperformance 5) Account& Report M-Phases M-Levels Investment 17,9 17,9 % 35,7 % 35,7 % Portfolio 82,1 10,7 %  35,7 % 35,7 % 28,6 % 100 % Percentages are visualized by area of rectangle – proportional distribution of 100 % = “Variwide Diagram”

  16. Step 4: Cluster jobsby (normalized) LC-%agesForinternallyhomogenous, externallydistinguishedclustersthe Ward method was used (similarresultswithAverageLinkage M.) Analysis based on 50 „lifecyclegroups“ (insteadof 280 tasksor 20 „functionalgroups“) Source:, Kämpf-Dern workingnotes

  17. Step 5: Visualizeusing „Variwide“-DiagramExplanation Variwideand Interpretation (usingdata „over all“) M-Phases 1) Plan • Analyze • Plan & prepare 2) Organize • Consult • Decide • Organize 3) Implement • Steer/coordinate • Controloperations • (Operate) 4) Control • Controlperformance 5) Account& Report M-Levels 4,0 2,9 3,4 2,2 15,4 Investment 2,9 2,7 4,0 6,4 5,0 4,3 Portfolio 20,0 6,7 (F 3,7, T 3,0) 2,0 9,0 28,6 Strat. Objekt 9,4 (F 1,7, N 2,7, T 5,0) 6,9 1,8 31,3 8,8 (F 3,0, N 2,5, T 3,4) Oper. Objekt 9,0 (F 3,0, N 2,4, T 3,6) 4,7 2,7 4,7 1,4 RES  28,3 22,4 24,4 16,7 8,1 100 Source: Websurvey (n = 73), Kämpf-Dern (2010), p. 376 On average, 73 asked REM-managerscheckmarked 36% of operative (management) tasks; Methodcouldbeusedforeach individual, but clustersarewhatinterestsmost.

  18. Agenda Problem & Approach– Job names don't tell enough Methodology – Structuring – clustering – visualizing Results – Selected job profiles Outlook – Job profiles are fundamental for success

  19. Result: VisuallydifferentiablejobprofilesSignificantdifferences – Example: Clusters withmostparticipants Cluster 5: Portfolio-/Asset Manager (n=11) Cluster 1: StrategistandDecisionMaker (objectlevel) (n=10) Cluster 6: Asset Manager, focused on technicalstrategy (n=10) Cluster 4: Object Manager (n=15) Source:, Kämpf-Dern (2010), p. 373

  20. Cluster 5: Portfolio-/Assetmanager, planningandcontrollingwithhighlystrategicfocus (I)Example * Standard deviation> average Source: Websurvey (n = 11) Source:, Kämpf-Dern (2010), p. 504

  21. - Backup – Cluster 5: Portfolio-/Assetmanager, planningandcontrollingwithhighlystrategicfocus (II) Major tasksofcluster 5 Source:, Kämpf-Dern (2010), p. 504

  22. Cluster 6: Strategic-technicalassetmanager (I) Exampleofmore operative organising, implementingandoperatingpredominantlytechnicaltasks Source: Websurvey (n = 12) Source:, Kämpf-Dern (2010), p. 509

  23. Agenda Problem & Approach– Job names don't tell enough Methodology – Structuring – clustering – visualizing Results – Selected job profiles Outlook – Job profiles are fundamental for success

  24. Job Profilesarebaseforfurtherresearchtosteerimportantcompany- & HR-developmentmeasures • Based on jobprofilesfurtherresearchcanbedoneto find out, differentiateanddecide on • qualificationcharacteristics (knowledge, skills, abilities, yearsofexperience, …) • bestfittingrecruitingmeasures • relevant performancemetrics • adequatecompensation • furthertrainingandeducation • correlationbetweenthenamedparameters • companycorecompetencesandareasofdevelopment • a supportingcompanycultureandfinally • a promisingstrategicorientationofthecompany (resource-basedapproach). In a professional service business where (nearly) everything depends on the peoplegood knowledge about their job designis a major base for success!

  25. I am happy to answer your questionsContact Data Dr. Annette Kämpf-Dern Bereichsleiterin Immobilienmanagement & Projektentwicklung Tel.: +49 (6151) 16-5264 Fax: +49 (6151) 16-4417 Email: kaempf-dern@bwl.tu-darmstadt.de

  26. Agenda Problem & Approach– Job names don't tell enough Methodology – Structuring – clustering – visualizing Results – Job profiles Outlook – … Backups Further job profiles (evtl.)

  27. Step 2: Grouping – 1st approachGroupingof Life Cycle phasesusingfactoranalysis … Base Plausible? … resulted in 6 clear factors – but hard to visualize and only partly plausible

  28. Investment-/Unternehmens-Ebene Portfolio-Ebene Objekt-Ebene Resultsaredifficulttointerpretortocompare – maybemethodandvisualization not optimal?First approach: Visualizationoffactoranalysisresults Anlageorientiertes IM = Return-oriented REM (ROREM) Immobilienmanagement-fokus Invest-Entscheidungen& DL-Controlling Investment-Planung &Portfolio-Vorgaben Ergebnis-controlling Beratung REIM &Umsetzungsvorb. Rechnungswesen und Reporting Konzept/Beschaffung& Verwertung F2 REIM Portfolio- Entscheidungen & DL-Controlling Portfolio-Planung &Objekt-Vorgaben Ergebnis-controlling Beratung REPM &Umsetzungsvorb. Konzept/Beschaffung& Verwertung REPM F3 Objekt-Entscheidungen& DL-Controlling Objekt-Planung &Maßnahmen-Vorgaben Ergebnis-controlling Konzept/Beschaffung& Verwertung F6 Zielorientierte Koordination und Wertschöpfung Target-oriented coordination and value-management Beratung REAM &Umsetzungsvorb. REAM/SOM F5 Maßn.-Entscheidungen& DL-Controlling F4 Maßnahmen- Entwicklung Ergebnis-controlling OOM Betrieb F1 RES

  29. Clu1: Objektstrategen & -entscheider * bedeutet: Standardabweichung > Mittelwert Quelle: Websurvey (n =10)

  30. Cluster 11: Letting Manager (n=3) with 62% of operational (management) tasksExample * bedeutet: Standardabweichung > Mittelwert Quelle: Websurvey (n = 3)

  31. Major tasksof CLU11 aregettinginformation on theobjectand all lettingtasks (management & ops)

More Related