The Leader - November/December 2007 - (Page 58)

a DDI NG va lu e to cor por a te eN terp rI s e : ro N blaNke N ap p lI e s p ro ce s s , le aDe rs hI p aND s t rat e G y peers.” For example, Blanken’s team benchmarked against a food-producing company recently. Still, it’s hard to find benchmarking data from the outside for internal use. So the Competence Center also shares information with HR and “most especially” with the business units to create another benchmarking channel of sorts. The team reaches out to the C-Suite to educate it, too. Taken together, “it becomes a two-way information exchange,” as MacKenzie-Carmichael portrayed it. Pender expanded on the point by emphasizing the importance of “CRE talking the language of the C-Suite and the business units.’ “ lINkING process to strateGy All of the input and benchmarking are translated into KPI’s (key performance indicators) that provide the basis for CRE to manage what Blanken described as Philips’ “robust portfolio” of 650+ locations globally. One example of a Philips KPI is CRE’s total spend divided by the company’s total sales. Most of the KPIs in use today are measured against revenue instead of costs, like Philips is using. “It’s more of an indicator, giving a feel for which direction to go in to add value to the business,” Blanken said. Given the fact that the company’s portfolio is 60 percent leased and split evenly between industrial and office space, it’s no small feat to be able to communicate the selected metrics efficiently to the C-Suite and business units. Bringing strategy into the company’s “daily life,” as Blanken explained it, also means bridging strategy and operations. “This requires a special blending of talent.” Agility is part of the mix. The business may change direction quickly but CRE cycles run longer, “so we need more flexible short-term solutions,” MacKenzieCarmichael points out. “It’s actually a process . . . to allow the business to remain agile but also have real estate planned so we can address change within that bandwidth.” Creating more energy efficiency is a prime example. “Sustainability is in Philips’ DNA,” commented Pender, who’s coordinating a company-wide initiative to introduce higher-efficiency lighting using Philips products. “We’re looking at large properties first,” he said. Up to 80 percent of the portfolio will be impacted once 2 0 0 7 the le aDe r 58 November / December photography by claude fisicaro Ron Blanken (right) and his team, Andrew Pender (left foreground) and Aleck MacKenzieCarmichael (left background).

Table of Contents Feed for the Digital Edition of The Leader - November/December 2007

The Leader - November/December 2007 Leadership Contents Message from the CEO Real Estate in the News Investing in India 110 to One Smaller Workspaces, Better Workspaces Innovating the Workplace Through Design Sustainability and Energy Efficiency Getting It Right Using Location Intelligence to Reinvent Franchises Philips International’s Ron Blanken CB Richard Ellis’ Karen Ellzey The State of Louisiana’s Mike Olivier Industry Tracker Economic Developer Directory Discovery Forum Findings Career Development Emerging Leader Economic Development in the News A Look Ahead Executive Development Spotlight

The Leader - November/December 2007

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