The Leader - January/February 2009 - (Page 39)

measures. “We are beginning to see that some of the ideas about getting your business controls in order, such as cutting back on energy usage, trimming back on space, repositioning your portfolio, those kinds of things are getting even more traction. In the past, during that indecisive period, they didn’t.” Farrell predicts a huge shift in corporations as CEOs and CFOs change. “New people move companies in new directions,” he explains. “The savvy internal CRE will be open to that change – especially those 20-30-year veterans.” New CEOs and CFOs want simple, actionable solutions. “With the pressure that most CEOs are under, they don’t have time to get engaged and offer their buy-in,” he says. “If you want to make your job more valuable, you need to anticipate changes and come in with solutions.” Farrell says there are three major independent issues going on that will have longterm effects on corporate real estate and workplace strategy. “First, changing demographics are changing the way we are working,” he began. “One age group, which worked a certain way, is staging out of the work force, and the new generation coming in works very differently from the last.” These changing demographics are changing the way workplaces are designed, to better fit the way people work. Collaborative spaces, heads-down working spaces, and leading-edge technologies are being designed into new and remodeled workspaces. The rise in the use of sustainable products and strategies in the workforce is the second major issue. The push to provide a more environmentally sustainable workplace is “just undeniable. The old pushback that it was too expensive has been proven false,” he says. “Add to that, healthy buildings increase a company’s ability to attract younger workers.” And the third issue, the world economic crisis and the resulting corporate cutbacks, portfolio changes, and changed strategies will affect the industry for a long time to come. “The net effect is there will be less space needed,” he predicts. “Even before the recession, 40 percent of space was unoccupied. The work force today is out selling, working from home, working from Starbucks or wherever.” The space that will be required will take on an even more sustainable influence: We’ll use less space and make it more efficient. Navigating the “No in the Middle” “These days, new corporate real estate people aren’t just CRE experts anymore,” Farrell says. “Their key trait is being able to manage relationships, gain support and get initiatives done.” New CEOs and CFOs want simple, actionable solutions. The real talent is getting the edict from the C-Suite implemented through the ‘no in the middle’ of the company hierarchy, he says. “The C-Suite can order the business to operate in a new way, but the culture of the company is in the middle – these people are the protectors of the culture of ‘how things have always been,’ ” he says. Getting buy-in from the C-Suite is necessary for change, he continues, but it’s not sufficient to get through that no in the middle – and ultimately to implement the change. “What you need is to get an advocate from the middle level that believes in the solution,” he advises. “To get that advocate, demonstrate proof of a success and that advocate in the middle can help sell the success.” The second part is engaging the people ‘in the middle’ in the solution. “Give them ownership,” he says. “If they are told they need to overcome a challenge and the leadership gives them a meaningful part in the solution, it helps them achieve a greater appreciation for the project.” Moving Forward “This couldn’t be a better time to be a real estate professional,” Farrell enthuses. “If you understand your company, the reality is they need your help now more than ever. Companies are looking for leadership from real estate, and now is the time to step up.” 2 0 0 9 th e le ade r 39 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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