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Strategic alignment of CRE. Rianne Appel-Meulenbroek M. Gordon Brown Yvette Ramakers. Contents. Introduction Strategic thinking Alignment of strategies The Dutch care sector Conclusions & recommendations. Introduction. Growing complexity organisations tuning business functions
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Strategic alignment of CRE Rianne Appel-Meulenbroek M. Gordon Brown Yvette Ramakers
Contents Introduction Strategic thinking Alignment of strategies The Dutch care sector Conclusions & recommendations
Introduction • Growing complexity organisations tuning business functions • CREM from financial burden to alignment with organisational strategy • studies on alignment use different strategies and terms • focus on alignment mechanism • Placement in strategic thinking theories
Strategic thinking • Stratēgōs = a general • Field professionalised • 1950s: longe range planning of demand • 1960/70s: evolved into strategic planning (due to increase volatility of org’s) • 1980s: evolved into strategic management (realisation need continuous evaluation/adjustment) • Focus on new theories, even 10 schools of thought (Mintzberg, Ahlstrand& Lampel, 1998) • Strategic thinking map as synthesis (Swayne, Duncan & Ginger, 2006)
Alignment of strategies • 8 studies in 3 different journals • The Journal of Real Estate Research • Nourse and Roulac (1993) • Roulac (2001) • Lindholm, Gibler and Leväinen (2006) • Journal of CRE • Acoba and Foster (2002) • Osgood (2004) • Scheffer, Singer and Van Meerwijk (2006) • Journal of Propery Investment and Finance • Krumm and De Vries (2003)
Alignment of strategies • Driving forces theory (Tregoe & zimmerman, 1980) • Products offered • Market needs • Technology • Production capacity • Method of sale • Method of distribution • Natural resource • Size/growth • Return/profit.
Alignment of strategies • 7 CRE strategies (Lindholm, Gibler & Levainen, 2006) • Increase value of assets • Promote marketing and sales • Increase innovations • Increase employee satisfaction • Increase productivity • Increase flexibility • Reduce costs.
Alignment of strategies • Cover entire 1st step of strategy formulation • Indicate alignment each pair (Nourse & Roulac also strength of each pair) • BUT based on intuition: • Why alignment? • What determines strength? 1 sector : Dutch care sector
The Dutch care sector Currently 50% thinks about changing • Rapid changes competitiveness • Desk research + interviews 20 experts • Care institutions (7) • Consultants (10) • Independent organisations (3)
The Dutch care sector also for past strategy of ‘products offered’
The Dutch care sector A mechanism?? • Size/growth has no alignment space is basic need for growth • Employee satisfaction with CRE seems unimportant true in a service sector?? • Debate whether ‘increase value’ should be a strategy
Conclusions and recommendations • Alignment mechanism is complex • Models still depend on expert knowledge (strategic CREM necessary) • More insight necessary for CREM to prove their added value • Recommendations: • Continue alignment along strategic thinking map • Change in mechanism for different sectors / name of department