Future directions of research in innovative workplaces

Performance measurement of workplace change: in two different cultural contexts

Nowadays, organisations must cope with the pressure of cost reduction and efficiency in order to succeed in a highly competitive business environment. However, drivers to improve social interaction and employee’s performance and as such to contribute to organisational goals and objectives make it necessary to be concerned with other performance criteria as well, such as effectiveness, flexibility, employee satisfaction, productivity and creativity. There is a growing need for performance management and performance measurement that not only covers all aspects of an organisation, but which can be applied to various situations in a changing internal and external environment. Performance measurement methods which include an integrated perspective of performance have become essential. In addition, it has been realised that corporate real estate can contribute to organisational performance (Nourse and Roulac, 1993, De Vries et al., 2008, Lindholm, 2008, Den Heijer, 2011, Jensen et al., 2012). For this reason, worldwide organisations started to implement new ways of working in a more open and flexible work environment. Although there are various objectives and drivers of workplace change, the common objectives are to reduce costs and to increase efficiency. The changing organisational and external contexts, such as the increasing demand for talented knowledge workers and changing work patterns, have led to the development of new offices that can promote social networks and interaction among employees. The new workplace does not only aim at achieving cost efficiency, but it should also support employee satisfaction and productivity. This PhD research focuses on both themes i.e. performance measurement of workplace change. The aim of this research is to provide a conceptual framework that visualises the impact of workplace change on employees’ responses to the new work environment and to present guidelines on performance measurement of workplace change in different contexts. Two organisations in Thailand and one organisation in The Netherlands were selected to serve as case studies. The impact of culture was explored as a contextual background. Research methods Based on literature review an overview of performance measurement systems and measures has been developed. The list of corporate real estate performance measures has been classified in six categories according to Bradley (2002) and subsequently compared with the findings from the case studies. The six categories include: 1) stakeholder perception, 2) financial health, 3) organisational development, 4) productivity, 5) environmental responsibility and 6) cost efficiency. The impact of workplace change was examined using the work environment diagnosis instrument (WODI) questionnaire which evaluates employees’ responses to the changed work environment in three areas: employee satisfaction, perceived productivity support and prioritised aspects (Maarleveld, et al., 2009). The Organisational Culture Assessment Instrument (OCAI; Cameron and Quinn, 2006) was used to assess organisational culture. National culture was measured by using the Value Survey Module 94 (VSM94; Hofstede, 1997). Research findings The conceptual framework that came to the fore from the literature review showed to be useful for both theoretical understanding of performance measurement and practical applications. Proposed performance measures have been applied in all three case studies but in different ways. The three case studies showed that performance measurement of an organisation is multi-dimensional. It includes several performance criteria and performance measures beyond cost efficiency. All seven performance criteria mentioned by Sink and Tuttle (1989) have been applied in all three cases including effectiveness, efficiency, quality, productivity, quality of worklife, innovation and profitability. The four perspectives of the Balanced Scorecard (financial, customer, internal business process, learning & growth) are applied in all three cases as well, with different points of focus regarding their business types. The corporate real estate performance measures found in the case studies and classified in the six categories can be aligned with most of the areas of the added value of CREM in the literature and can also be viewed as value dimensions. In all three cases, the performance measures related to human resource management were focused on the occupiers having been provided with an office environment that enables employees to increase their productivity. The findings show that organisation and workplace change characteristics have an influence on the satisfaction of employees. The physical characteristics of workplace change that have influenced different degrees of employee satisfaction include location, building grade, architectural design, workplace concept and supporting facilities. The findings also show a negative impact of workplace design on perceived productivity support, due to the miscalculation of the users’ needs and preferences during the implementation process. Furthermore staff characteristics, the work process and work patterns showed to have an effect on which work environment aspects employees perceive as being most important. Regarding the impact of culture, the findings show that the dominant organisational culture types obtained from the organisational culture survey have been influenced by the structure and staff characteristics of the case organisations. The data from the national culture surveys that were conducted in the case studies show large differences in comparison to the findings from the studies by Hofstede (1997). These differences can be explained by the organisational context. Conclusions The cross-case analysis led to several conclusions: • The relevance of corporate real estate performance measures depends on different stakeholders, and different real estate and managerial levels. • The study confirms that measuring employee satisfaction of the work environment can be used as a means to measure organisational performance. • The empirical findings confirm the relevance of the variables shown in the conceptual model of workplace change appraisal and the integrated conceptual model that connects organisational characteristics and characteristics of work processes to objective and subjective performance measurement indicators. • The findings show that information about organisational and national culture is vital for the interpretation of workplace characteristics and the appraisal of change. • The study shows that neither organisational nor national culture has absolute dominance in the employees’ appraisals. • The findings proved that national culture data from Hofstede cannot be generalised to organisations; on organisational level huge discrepancies were found with employees’ between scores on cultural dimensions and national culture indices. These conceptual frameworks on performance measurement and employees’ appraisals of workplace change can be used as a reference to provide input for further improvement of performance measurement and performance management. Many variables such as staff characteristics, work process, cultures and workplace characteristics simultaneously impact the performance measurement of workplace change. The relevance to performance management is that the organisations should be aware of the possible relationships between variables in the integrated conceptual model which could have an impact on performance measurement. The role of real estate that exceeds an operational asset focusing cost efficiency to also include a strategic resource contributing to other criteria of an organisational performance has been shown in this study. A step-by-step plan for prioritisation of corporate real estate performance measures and KPIs has been introduced as a means to find a balance between the costs of measuring and the benefits of being able to manage corporate real estate efficiently and effectively and as such to contribute to achieving organisational objectives and to supporting the core business and organisational performance. Methodological reflections The empirical studies include a combination of both qualitative and quantitative methods. The qualitative data from the case studies which were analysed inductively helped to understand workplace change phenomenon, to clarify the relationships between the variables in the conceptual framework of workplace change, and to answer the research questions formulated at the beginning of the thesis. So far, the quantitative data from questionnaire surveys were used to explore the relationships between employees’ responses to workplace change and organisational and national culture in a qualitative way. The collected data can be used for further exploration of complex relationships by statistical analysis. Triangulation of data collected from different sources (documents, surveys, interviews) helps to validate the findings through cross verification, i.e. reduce weakness or intrinsic biases from the researcher’s background knowledge. The assessment of both tangible (physical characteristics) and intangible components (perceived quality) of the office environment can help to validate the findings from the empirical research. This research study is an exploration of performance measurement concerning workplace change in different contexts. The conclusion of this study is based on the findings from two Thai cases and one case in the Netherlands. Although there are assumed cause-effect relationships between the variables in the conceptual models, more case studies are needed in order to collect comparable data that support the findings of this kind of research.

Performance measurement of workplace change: in two different cultural contexts

Real estate industry in general and its business models in particular are standing at the beginning of a transformation process, caused by fundamental and multidimensional change in technology, economy and society. The drivers of this change can be classified into three dimensions: social development, change of economic structure and digitalization. Although these transformation processes' effects are already visible, immediate consequences for market participants of the real estate industry remain largely uncertain. They are without a doubt going to affect the value system of the real estate industry, because the market environment and therefore business models of relevant participants are changing and will continue to do so. As a result, the demarcation line of the value system is going to become blurred, and a reform of the internal structure will take place. Many organizations struggle to grasp the full extent of this process, which can be seen by a predominant, exclusive focus on digitalization.The goal of this research is to determine and systemize the drivers of change affecting the real estate industry. Thereby, the author delineates variations of business models and points out which drivers of change have an impact on which business model.Based on a systematic literature review, a theoretical framework will be developed, in order to determine and systemize drivers of change in the real estate industry. This framework will be tested empirically by a quantitative survey of German real estate market participants. The appraisals are enquired using multivariate analyses and multidimensional scaling (MDS).An exhaustive systematization of all essential drivers of change cannot be found in the existing body of literature. Only if the effects of the drivers and the consequential impacts on business models in the real estate industry are anticipated correctly, management approaches dealing with future challenges and actively shaping the transformation processes can be developed properly. The research results will help to characterize the need for adjustment in real estate industry. Furthermore, it could reveal approaches for developing new and innovative business models.

PurposeBecause of the transition of the Dutch health care sector from a governmentally steered domain towards regulated market forces, health care organisations have become fully responsible for their real estate. This paper aims to explore if/how Dutch health care organisations adopt the concept of adding value by corporate and public real estate, which values are prioritised and how these values are implemented in daily practice.Design/methodology/approachLiterature study and a meta-analysis of six student theses (1 × BSc, 1 × MSc, 3 × post-MSc and 1 × PhD) on adding value by health care facilities were conducted, using document analysis and semi-structured interviews with CEOs, project leaders, real estate managers and facility managers. All respondents work in Dutch hospitals, assisted living facilities for the elderly, or mental health care facilities. The interviews were jointly prepared by the students, and the author of this paper being their supervisor.FindingsEnd-user satisfaction, enhancing productivity and stimulating innovation are highly prioritised. Which values are prioritised depends on the organisational objectives, target group, available budget, position in the life cycle of design, construction and use and external context, in particular governmental policy and competition with other health care suppliers. The operationalisation into concrete design choices and strategic management of buildings-in-use is still underdeveloped.Research limitations/implicationsThe interviews lasted 1-1.5 hours, which is rather limited to get a complete picture. Although much work has been done to operationalise the added value of corporate real estate and building-related facilities, there is still a lack of a widely agreed taxonomy of added values and how to measure and manage these values. Ongoing international collaboration between researchers and practitioners aims to contribute to a common framework and to develop standardised measurement methods.Practical implicationsThe insights can support decision-makers in value-adding real estate and facilities management value by public and corporate real estate. The listings of prioritised values and related interventions can be used as a frame of reference to improve the current design and management of health care real estate.Social implicationsA clear insight in value-adding management of corporate real estate may result in a better fit among real estate, organisational objectives and end-user needs.Originality/valueThe findings link the added value theory to corporate real estate management in Dutch health care practice.

PurposeThe purpose of this paper is to understand how corporate real estate (CRE) can add value to corporate branding and how corporate branding strategies for CRE can be determined.Design/methodology/approachThe paper presents a theoretical background for corporate branding and real estate and links these two concepts through interviews with 19 CRE managers of service providers.FindingsAnalysis of the relationship between CRE and the corporate brand brings forward two links: CRE influences the perception of the corporate brand directly and indirectly (via employee behaviour). Corporate identity and its six characteristics (structure, strategy, culture, communication, behaviour and design) formed a useful tool to determine the proper branding strategy for an organization. Especially, “design” and “communication” define the way CRE should communicate the corporate brand. Two location issues are seen as the most important CRE aspects to support branding strategies.Research limitations/implicationsThe field research is explorative, so it only studies a small sample of four types of service providers: real estate brokers, architects, lawyers and multinationals.Practical implicationsUnderstanding the key factors of CRE that orchestrate the direct and the indirect influence on the corporate brand provides guidelines for CREM for designing CRE that supports a successful corporate brand.Originality/valueResearch done so far on corporate branding highlights the importance of CRE for corporate branding, but does not explicitly discuss the importance of (all) different CRE aspects.

Speaking the language of digital real estate is a much-needed skill for CRE leaders, their people and their business partners. Digital literacy helps CRE leaders become more effective communicators and drivers of change as the industry shifts to digital at an increasing pace. This paper introduces terms, concepts and techniques to better equip CRE leaders for the opportunities and challenges ahead. This work is related to a programme focused on ‘digital competency in real estate’ developed by OSCRE International, a leading real estate data standards group. The purpose of the initiative is to: 1) interpret trends in the industry; 2) demystify the language of digital; 3) identify skills that CRE leaders and their teams need now to succeed in a digital world; 4) better understand how to approach change; 5) provide pragmatic guidance on how to prepare for and make the changes needed. Highlights of the findings of this initiative include: 1) digital literacy is a core competency like any other; 2) effective collaboration between IT and the business depends on it; 3) building a data strategy is high on CRE leaders’ priority list; 4) increasing pressure for data quality means better data governance; 5) data integration is vital, but the role of the integrator is still in flux; 6) data management is becoming much more visible in outsourcing contracts; 7) service providers are developing new services and tools to compete in new ways; 8) emerging technologies, such as machine learning, are becoming more mainstream; 9) the emerging workforce is already digitally enabled and brings new skills and expectations; 10) starting with the language will help CRE leaders get ahead of the changes already underway.

The ‘war for talent’ is on and the workplace is the battlefield. This paper will explore how corporate real estate (CRE) and workplace executives can leverage cutting-edge technologies such as the smart building, the Internet of Things (IoT) and space utilisation sensor technologies to understand their workplace in real time, all the time. Empowered with this data, CRE and workplace can confidently deliver insights throughout the workplace design process that can transform the way their organisation works. Next-generation workplace design technologies such as 3D modelling and augmented reality (AR) can be used to involve the building occupants, allowing them to shape the design towards delivering a workplace that talent needs today. When these innovative workplace and design technologies come together, CRE and workplace executives can be empowered to spearhead change throughout the organisation. This will result in a better workplace more aligned to serve the talent that the organisation so desperately needs in order to thrive.

The real estate industry in general and its business models in particular are facing a transformational process, caused by fundamental and multidimensional changes in technology, economy and society. The approaching transformation process results from structural change, which is triggered by megatrends and various drivers of change. The changes in market environment and business models are going to be permanent, thus this process is of strategic importance for long-term decisions of all market participants in the real estate industry. Existing business models come under pressure to adapt, but at the same time changes offer a vast amount of development opportunities for all market players. Due to real estate participants reacting to this change, we speak of a transformational process.So far, no systematic research about how this transformation process is affecting the real estate industry has been done. Apparently, research has dealt with specific aspects but has failed to provide a comprehensive overview of this research domain. Therefore, our first research goal is to measure the diverse mechanisms of this transformation. Subsequently, our further research objective is to point out how business models of the various German real estate industry participants are affected and how they adapt to the pressure of structural change.Based on a systematic literature review, a theoretical framework has been developed. This framework is tested empirically by a quantitative survey of 249 decision makers in top management positions of German real estate industry. Structural equation modelling is used to show that megatrends have an indirect impact on corporate adjustments of the participants. The change processes triggered in this way, however, only translate into action through concrete drivers of structural change, that are relevant for this specific industry. Further investigations have been carried out on the market participants to figure out the relationships between the drivers of change and the adaption strategies. The results show that it is not just digitalisation that triggers the transformation. For many players, increase of efficiency in their traditional processes is their main focus, instead of evolving new business models or products and services.Only if the effects of the drivers of change and their consequential impacts on business models in the real estate industry are anticipated correctly, strategic management approaches dealing with future challenges and actively shaping the transformation processes, can be developed properly. The findings help to characterize the need for change in the real estate industry. Furthermore, the study reveals approaches for developing new and innovative business models.

This dissertation aims to enhance CRE alignment by approaching alignment as a design and decision process as is explained in chapter 1. The current state of the art in CRE alignment modeling is summarized in paragraph 2.1. This sets the context of this research and will show that CRE alignment is complex and multidimensional. Thereafter, an assessment of CRE alignment models from a design and decision perspective is made in paragraph 2.2. Based on this perspective I identified the scientific gap of this PhD research. Most of the work in this chapter has been published before in the last 10 years. Figure 2.1 shows the timeline of the important publications related to the two topics that this chapter addresses: 1 State of the art of modelling CRE alignment processes; 2 Assessment of structure models of CRE alignment from a design and decision perspective. As can be seen in the figure below, the different topics have evolved at the same time. I have chosen to structure the chapter around the two topics and not follow the order of publication. Because the topics have evolved over time this causes some redundancy in and between paragraph 2.1 and 2.2. In the last paragraph 2.3 conclusions, they are brought together. But before showing the state of the art, CRE and CREM are defined. Corporate real estate is a specific type of real estate. CoreNet Global (2015) describes it as the real estate necessary to conduct business—the bricks and mortar of office buildings, manufacturing plants and distribution centres, retail stores, and similar facilities. It can include owned or leased space, buildings, and infrastructure, such as power plants or even airport runways. Corporate real estate is closely related to commercial real estate, however, there is a distinct difference in business objectives. In the commercial real estate world, the business is the real estate. The goal for commercial real estate is to provide a risk adjusted return to the investor; whereas, in corporate real estate real estate supports the business function. In other words, corporate real estate represents the demand side or user side of real estate, while commercial real estate focuses on the supply side to meet that need. Corporate real estate is seen since 30 years by (Joroff, 1993) as the fifth resource of the business that needs to be managed besides capital, human resources, IT and communication. One of the big challenges in corporate real estate management is reducing the gap between the high speed of business and the slow speed of real estate, i.e. between the so-called dynamic real estate demand and the relatively static real estate supply. A decade later (Krumm et al., 2000, p. 32) described CREM as “The management of a corporation’s real estate portfolio by aligning the portfolio and services to the needs of the core business (processes), in order to obtain maximum added value for the business and to contribute optimally to the overall performance of the corporation”. One could say that the authors position CRE alignment in this definition as the raison d’être of CREM. Other authors (Heywood & Arkesteijn, 2017) position CRE alignment as one of the activities that CREM needs to perform. In this research, CREM will be seen as a wide range of activities that must be performed by the corporate real estate manager, while the alignment of CRE with the business will be seen as one of CREM’s activities and is referred to as CRE alignment.

The concept of adding value by real estate from the perspective of the end user is 'hot'. The search for added value is included in current research within both the fields of Corporate Real Estate Management (CREM) and Facility Management (FM) and is also a popular subject in curricula at universities and other institutions of higher education. However, a review of literature shows a lack of consistency in definitions and value parameters. Besides, still much work has to be done to operationalise different value parameters and to be able to measure the benefits and costs of CREM and FM interventions in a reliable and valid way. This paper first explores the meaning of added value in connection to other concepts such as the match between demand and supply and alignment of real estate to organisational aims and objectives. Then an overview will be presented of different value dimensions based on an extensive review of the literature. Furthermore the paper presents the findings of empirical research within the health care sector regarding the values that are incorporated in value adding management, which values are prioritized and why, and how health care organisations link their choices regarding real estate and building related facilities to their organisational objectives. The methods range from interviews with CEOs , project managers and facility managers in hospitals and facilities for assisted living of the elderly, to a web-based survey among real estate managers and facility managers working in the mental health care sector. The data from different research projects are compared on prioritized aspects and measures to support cost reduction, labour productivity, user satisfaction, and other values. The paper also includes an exploration of how to explain similarities and dissimilarities in prioritized aspects between different organisations and different sectors, and reflections on the gaps between theory and practice. The paper ends with some practical recommendations and recommendations for further research.

Many corporate and public real estate managers are challenged to prove their added value to both the organisation and the individual business units or departments. Value can be added by product and by process. This paper elaborates on ways to improve the corporate real estate portfolio management process in order to align the real estate portfolio to the different needs of the organisation and thus add value to the organisation by delivering a better product. To manage the real estate portfolio as a group instead of individual properties, the long‐term portfolio strategy should be translated into short‐term guidelines and clear performance measures in order to analyse alternatives and the performance of the individual properties. These measures should be related to what the stakeholders consider to be the added value of corporate real estate. The examples in this paper will show how a corporate real estate manager can create a clear framework for making real estate decisions on a day‐to‐day basis.

Information and communication technology (ICT) support of corporate accommodation processes with real estate data is not a simple subject. Insight is required into the primary processes of very different organisations, and inclusion of many aspects of portfolio management is necessary. This paper highlights possibilities for ICT support of these complex processes, although it does not explore in detail the different technology products available on the market. Instead, an overview of considerations focused at possible functionalities is provided which may contribute to sound decision making on actual development, purchase and implementation of supporting systems. To an increasing degree business support systems function in a network or are ‘webenabled’. Also transactions are frequently effected using new infrastructures (e‐commerce, business‐to‐business [B2B], etc). New technologies are also rapidly gaining ground in demand and supply chains regarding corporate accommodation, real estate and portfolio management. In many cases, though, the need for an overall and ‘future proof’ vision when applying them in a corporate real estate (CRE) environment is not thoroughly recognised. With regard to the Government Buildings Agency (GBA) in the Netherlands, it is important to bear in mind that this is not a commercial organisation. It functions in the public domain, and therefore there are aspects that must be specially treated. The paper presents a survey of important matters in GBA’s primary (and partially secondary) processes, and establishes connections with possibilities (and implications) that state‐of‐the‐art ICT support may provide. A conceptual outline of the primary processes of a CRE organisation is used as a starting point, and an overview of the data needs in these processes is given. By explicitly applying an approach aimed at (potential) data customers, who will decide for themselves what data has informative value, functional boundaries in internal processes are easily crossed. From this approach, many possibilities for added value, marketing and B2B communication become more obvious and manageable. Although this paper focuses on the primary process of the GBA in the Netherlands, many subjects may be applicable in other CRE organisations.

This study aims to explore employees’ perceptions of workplace management practices (i.e. planning before workplace change, implementation process, management after workplace change) at the PTT headquarters building in Thailand. Another purpose is to examine workplace change development during COVID-19 to understand the organisation’s planning and processes, which serves as a means to contribute to Facilities Management and Corporate Real Estate Management (CREM) theory. Employees' responses to workplace management practices at different stages (i.e., before, during, and after workplace change) were affected by the company's strategic direction and management approach, particularly in terms of planning and implementing workplace change development. This study demonstrates that the employee engagement and involvement process is critical during and after workplace change. A lack of process at these times can result in negative impacts, as evidenced by low satisfaction percentages in various areas, including improving the workplace based on suggestions from employees, and training employees on how to use office space when returning to the workplace. The case organisation's strategic planning in relation to crisis management, reflects the supply and demand alignment dimension and the CREM strategy of corporate real estate alignment. No existing research has appraised employees' responses in terms of the preparation and implementation of workplace change. This study provides new insights into workplace change development during COVID-19, including planning, implementation, management after the change, and the impacts on employees' perceptions.

PurposeThe purpose of this paper is to develop an operational framework with guidelines and lessons to improve the current real estate portfolio disposal procedures of freeholds, based on empirical evidence from the banking sector.Design/methodology/approachThe empirical research is based on a comparative analysis of four case studies, representing approximately 80 per cent of the Dutch banking sector. The case studies comprise a systematic document review of corporate business and real estate strategies and semi-structured interviews with decision makers who steer the organisation’s corporate real estate (CRE) portfolio composition.FindingsThis research shows a strong relationship between organisation characteristics, legacy and strategy, disposal drivers and CRE disposal strategies. The weighing of drivers and order of steps in strategy execution strategies largely depend on organisational objectives.Research limitations/implicationsThis paper reports empirical findings from Dutch case studies. To generalise, further research is needed in different legal, financial and economic contexts and in other sectors. This paper suggests a more thorough study of the relationship between space-use efficiency and technological innovation implementation..Practical implicationsThe framework proposes strategy improvements and a proactive approach to corporate real estate management (CREM) to create value through real estate portfolios.Originality/valueThis paper provides a thorough analysis of the CREM of the Dutch banking sector and is applicable to CREM in this and other sectors.