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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.
CRE Strategy & Portfolio drivers
Company Strategic Challenges
TALENT
INNOVATION
CUSTOMER
RELATIONSHIP
OPERATIONAL
EXCELLENCE
SUSTAINABILITY
BRANDING
FLEXIBILITY
COST
Despite the growing challenge for Talent availability & retention,
COST REMAINS THE MAIN CRE DRIVER
* Conference Board survey 2015
What does the
CEO say*
View of the CRE
executives
CRE decision
drives
Portfolio
opportunities
COST
FLEXIBILITY
TALENT
BRANDING
OPERATIONAL
EXCELLENCE
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