The Leader - March/April 2009 - (Page 20) THE EVOLVING STATE OF PORTFOLIO PLANNING: A CRITICAL DISCIPLINE FOR UNCERTAIN TIMES costs), as opposed to employee productivity or talent retention motives. Initiatives that enhance core business revenue generation, such as retail repositioning, de novo roll out of business networks and hospital/clinic reinvestment, came in second place. Initiatives that address a business event that created a major impact on the portfolio (merger, acquisition, business process outsourcing) came in third. It is important to note that these are the top policies and initiatives for organizations that have already established a robust portfolio planning capability. For organizations that do not have an organization clearly accountable for portfolio management, priority actions will include developing the roles, infrastructure, and mandate for the portfolio planning team (see text box). 2 3 Based on heightened interest in this topic, CoreNet Global is developing a Strategy and Portfolio Management Community, which will be launched at the CoreNet Global Dallas Summit in April 2009. The Community will re-create the open, content-rich, peer-to-peer environment members of the Portfolio Research Consortium enjoyed. It will be focused on further advancing the discipline, and provide a forum for leading practitioners to inspire each other. If you are interested, please join us in Dallas. 2 About the Authors Sven Pole is a Senior Managing Director with CB Richard Ellis’ Global Corporate Services group. Sven designs and implements integrated real estate service solutions on behalf of corporate occupiers. He brings twenty-five years of experience consulting to and working with commercial real estate investors and users. Matt Werner is a Senior Managing Director with CB Richard Ellis’ Global Corporate Services group. He designs and implements integrated real estate service solutions on behalf of corporations and healthcare institutions. He brings 15 years of experience in transforming organizations, optimizing real estate portfolios, and reducing occupancy operating costs. Allison Hoiberg is a Managing Director with CB Richard Ellis’ Global Corporate Services group. She brings 10 years of consulting experience specializing in occupancy cost reduction, risk assessment, location analysis, and development options. Conclusion As the global economy tries to find equilibrium, and companies race to react to new market conditions, corporate real estate departments are working overtime to develop plans to reduce their portfolio footprint and related occupancy costs. We believe that companies who have made the investment into the discipline of CRE Portfolio Management are better equipped to respond to today’s changing environment and will enjoy a competitive advantage over their peers. We also believe that CRE professionals can gain a similar competitive advantage by remaining educated and current on this subject matter. There are two ways readers of LEADER can get more involved: The newly refreshed EDP Portfolio Management course is a great resource. It includes new teaching methods that rely heavily on case studies, real-life examples, role playing and take-home applications. It is designed to convey practical, useful concepts of immediate benefit to CRE professionals. For more information on this topic, go to CoreNet Global’s Knowledge Center Online. HSBC's Portfolio Optimization Strategy: The Role of Human Capital www2.corenetglobal.org/dotCMS/ kcoAsset?assetInode=4524725 Cost-Saving Opportunities for Corporate Real Estate Executives www2.corenetglobal.org/dotCMS/ kcoAsset?assetInode=4398615 1 2 0 0 9 T HE LE ADE R 20 MARCH / APRIL http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=4524725 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=4524725 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=4398615 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=4398615
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