Realizing the Strategic Dimension of Corporate Real Property Through Improved Planning and Control Systems

This paper presents a methodology that addresses the fundamental question: How can a firm maintain congruence between its real property portfolio and its strategic objectives during time of rapid economic change? The methodology is based on established planning and control theory and is discussed in terms of an actual case involving Digital Equipment Corporation. It is intended for firms, such as Digital, that have a large real property portfolio, but that are not primarily in the real estate business. After the planning and control implications of the question are elucidated, the problem with existing real property management planning and control systems is considered, followed by a three-part explanation of the methodology aimed at improving the systems. The first part focuses on the process used to develop an appropriate set of real property performance indicators, and the second part deals with the statistical techniques used to effectively monitor the set over time. Finally, these concepts are discussed in the context of a decision support system architecture for real property management.