OccupierEdge_Ed.4_US 5_17

A BALANCING ACT: WHAT'S TOPPING YOUR LIST?

COST-DRIVEN DECISIONS OVER STRATEGIC PRIORITIES

Many professionals are having a difficult time transitioning from traditional cost center models to more strategic resource models that support organizational objectives. The depth of the challenge becomes evident when we compare the survey results with those of the Conference Board CEO Challenges survey. Talent management and innovation are at the top of CEOs’ agenda, so it’s natural to suppose that CRE strategies would be aligned with those goals. Instead, occupancy cost tops the list of CRE priorities, as cost concerns drive the potential for portfolio optimization. Talent management issues are second to cost when the question is about strategic challenges, but when it comes to priorities for day-to-day decision-making, talent falls to fourth place.

As for the goal of fostering innovation in the workforce, CRE executives struggle to translate these in terms of decision drivers and perceived portfolio opportunities. The survey results clearly highlighted three potential reasons for this strong misalignment and strong cost focus:

• 58% of CRE executives report to Finance.

• Lack of visibility on CEO agenda and wider corporate challenges. • Difficulty in translating strategic challenges in practical CRE decision making.

Company Strategic Challenges

CRE Strategy & Portfolio drivers

What does the CEO say*

View of the CRE executives

CRE decision drives

Portfolio opportunities

COST

TALENT

OPERATIONAL EXCELLENCE

INNOVATION

CUSTOMER RELATIONSHIP

FLEXIBILITY

OPERATIONAL EXCELLENCE

TALENT

BRANDING

SUSTAINABILITY

BRANDING

FLEXIBILITY

COST

Despite the growing challenge for Talent availability & retention, COST REMAINS THE MAIN CRE DRIVER

* Conference Board survey 2015

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