The Leader - January/February 2009 - (Page 34)

executiVe p R o f il e Whirlpool’s Lee Utke: Staying Ahead of the Economic Curve By RichaRd Kadzis hese are tough times economically – almost unparalleled from the standpoint of anyone’s ability to grasp the true nature of the global credit and investment-bank crises, never mind finding a clear way out of it all. Is it safe to say that the importance of getting – and staying – ahead of the curve has never been more pressing? It’s becoming a hard point to argue, whether it’s the macroeconomy or corporate real estate (CRE). The value of being proactive is more than a cliché, as Lee R. Utke, MCR, of Whirlpool Corp. can attest. Utke, Director of Global Corporate Real Estate for the world’s largest appliance manufacturer, knows that being ahead of the curve in good times means you’re more likely to be able to manage effectively in more challenging times. In fact, Whirlpool is proving that a large global industrial player can still be agile. A key reason is the $20-billion company’s business model. Utke’s aligning of CRE to the model is another key. It starts with a long-term view and planning horizon. “Deal with it (CRE asset and portfolio T management) three to five, even 10 years, in advance,” he strongly advised during an interview held before the recent CoreNet Global Summit in Orlando. “Don’t overreact to the short term; maintain a long-term view, too.” ‘Going long,’ as CRE people describe it, is now a key question with the global economy in recession and commercial property and investment markets following the downturn’s so-called ‘knock-on effects.’ a Vested strategic View There’s going to be a natural proclivity to adopting the so-called ‘value protection’ mentality. But Utke would take the position that it’s also important to sustain a ‘value creation’ mentality to ensure CRE remains focused on strategic issues, not just day-today survival. Utke has the ear of senior management and the business units, so that retaining a ‘seat at the table’ is one of several key ways that he keeps the strategic focus alive, even in the face of a downturn. While CRE is centralized, Whirlpool organized itself around four different regions long ago. “We’re regionally managed as a corporation,” Utke related. The organizational design offers intrinsic agility and risk reduction, starting with the ability to leverage different geographic markets in different ways including product design and cost structures. “This allows us to shift production from one location to another to take advantage of variables like currency swings,” Utke offered as another example. “Remaining a low-cost producer is still a big factor. At the same time, we work hard not to be a commodity.” He acknowledges, “Now, it’s become very challenging globally. The ability to address the consumer slowdown is a challenge for us and others.” Within this climate, strategic locations are taking precedence over non-critical facilities for a growing number of multinational companies, Whirlpool included. “Today, we’re working to identify key areas to maintain growth and curtail inefficiency,” Utke said in emphasizing an ongoing “rightsizing” approach. A flexible portfolio plan is a centerpiece because “it provides windows of opportunity for management to make changes to maximize value, whether or not to hold an asset,” he added. 2 0 0 9 th e le ade R 34 januaRy / feBRuaRy

Table of Contents Feed for the Digital Edition of The Leader - January/February 2009

The Leader - January/February 2009 Contents Leadership Message from the CEO Real Estate in the News Mergers and Aquisitions Assessing Green Building Performance Measuring Space You Actually Use Global Trends in Sustainable Real Estate Whirlpool’s Lee Utke Northmarq’s Kevin Farrell Plastics: Hoping for Resiliency in Resins Regional Profile: Heartland Holding Strong Industry Profile: Ascendas Brings New Age Business Space to Asia-Pac Industry Tracker From the Applied Research Center Discovery Forum Findings Capital Corner Career Development Young Leader Economic Development in the News Learning Spotlight Connect With CoreNet Global Index of Advertisers A Look Ahead In our Next Issue Calendar of Seminars

The Leader - January/February 2009

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