The Leader - January/February 2009 - (Page 35)

Self-Funded Model “We look at the real estate portfolio as an asset to help manage the business,” he outlined. “As we shift operations around the world, we generate cash flow for the company by being proactive vs. reactive.” There’s an intense focus on financial metrics delivered by Utke’s “very lean” internal team of nine and leveraged by its global partnership with Jones Lang LaSalle’s team of 5 – 10 FTE’s. As part of the model, Utke, who reports to the Treasurer as part of the CFO organization, meets with senior management regularly to inform and support key portfolio, location and other decisions. The recurring due diligence is based on a long-term commitment to flexibility. It’s at once immediate in its effect and forward facing by design, to the degree where Whirlpool has successfully minimized exposure to “ “ “ “ “ “ “ PhotograPhy by eric bowleS Results, trust, reliable delivery and ultimately consistent performance are why CRE has kept its C-Suite and business unit seat at the table during and before Utke’s tenure. vacancy risks on a global scale. “We’ve never had a significant vacancy longer than six months,” is how Utke illustrated the model’s effectiveness. “Most of the time, we’re near zero (vacancy).” The net effect is two-fold: “good solutions and sound delivery,” Utke continued. He credits an “insightful senior management team” not taking “a parochial view,” adding, “We’ve looked out over time more.” Another big way that Whirlpool differentiates itself from many other corporate enterprises is its capital procurement model. The company actively works in the capital markets to ensure capacity for new projects, a model Utke developed thanks in part to a career track including financial experience. Of course, CRE drives the capital procurement model, although it’s more difficult than ever to find investors due to the now seriously-constrained capital markets, he concedes. Nonetheless, CRE garnered sufficient capital in 2006, prior to when the property and investment markets began to soften. “I don’t know of any other major corporation that goes out and procures capital for multiple projects under one umbrella to provide flexibility” on a wide scale instead of a ‘one-off’ or project-by-project basis, he contended. “Limited capital,” he conjectured, “and how to best spend it to drive asset preservation,” is another way to characterize today’s climate of uncertainty. “Current times are making the model more challenging, so finding it (funding) now has even more merit” for well-managed organizations, Utke observed. While the same structure to fund capital remains in place, there are “some different participants” than before 2 0 0 9 th e le ade r 35 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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