ALIGNING ACCOMMODATION STRATEGIES PROCESSES MICHIEL VIS P5 PRESENTATION TU DELFT REM LAB

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1 ALIGNING ACCOMMODATION STRATEGIES PROCESSES TU DELFT REM LAB

2 RESEARCH INTRODUCTION RESEARCH SUBJECT AND OUTLINE ADDED VALUE CONTENT OF STRATEGIES STRATEGY AS FORCE PROCESS BEHIND STRATEGIES SYNTHESIS ANALYSING RESULTS CONCLUSION & RECOMMENDATIONS RESEARCH FINALIZATION & EPILOGUE

3 RESEARCH INTRODUCTION BACKGROUND PROBLEM STATEMENT RESEARCH QUESTION RESEARCH DESIGN

4 4/56 MINISTRY (EDUCATION, CULTURE AND SCIENCE) Subsidy Law (Media Act) Advertising NPO STER Basic budget (Status ) Extra budget (Programming) Subscription Programming PUBLIC BROADCASTERS RESEARCH INTRODUCTION BACKGROUND

5 5/56 BROADCASTING COMPANY BROADCASTING ASSOCIATION PUBLIC BROADCASTERS RESEARCH INTRODUCTION BACKGROUND

6 6/56 PROBLEM STATEMENT NEW MEDIA ACT; MODEL Merger VARA and BNN Merger AVRO and TROS Merger KRO and NCRV Standalone broadcaster VPRO Standalone broadcaster EO Standalone broadcaster Max Task Broadcaster NOS Task Broadcaster NTR RESEARCH INTRODUCTION PROBLEM STATEMENT

7 7/56 RESEARCH INTRODUCTION PROBLEM STATEMENT

8 8/56 The most optimal accommodation situation for the Dutch public broadcasters connects to the wishes of the broadcasters and NPO is most profitable Identity, representativity and recognizability Location Functionality, presence, (media)facilities Maximal occupation of workplaces Minimal yearly expenses Minimal investments and one-off costs Minimal decrease of equity Boston Consulting Group (2012). Eindrapportage Optimalisatie LPO-brede huisvesting. BCG: Hilversum RESEARCH INTRODUCTION PROBLEM STATEMENT

9 9/ million RESEARCH INTRODUCTION PROBLEM STATEMENT

10 10/56 RESEARCH INTRODUCTION PROBLEM STATEMENT

11 11/56 PROBLEM STATEMENT A DIFFICULT PROCESS OF ALIGNING THE ACCOMMODATION STRATEGIES OF MULTIPLE ACTORS WITH DIVERGING INTERESTS AND GOALS, WITHIN A DYNAMIC POLITICAL ENVIRONMENT RESEARCH INTRODUCTION PROBLEM STATEMENT

12 12/56 MULTIPLE ACTORS STRIVING TOWARDS A DESIRED END RESULT DYNAMIC POLITICAL ENVIRONMENT RESEARCH INTRODUCTION PROBLEM STATEMENT

13 13/56 Daamen, T. (2010). Strategy as Force. Towards Effective Strategies for Urban Development Projects: The Case of Rotterdam CityPorts. Amsterdam: IOS Press RESEARCH INTRODUCTION PROBLEM STATEMENT

14 14/56 RESEARCH INTRODUCTION PROBLEM STATEMENT

15 15/56 RESEARCH QUESTION IS THE STRATEGY-AS-FORCE MODEL A USEFUL TOOL FOR IMPROVING A COMPLEX MULTI ACTOR PROCES OF ALIGNING ACCOMMODATION STRATEGIES? RESEARCH INTRODUCTION RESEARCH QUESTION

16 THEORETICAL FRAMEWORK 16/56 Strategy content (added value) Strategy process (Strategy as Force) SYNTHESIS AND REFLECTION IN PRACTICE WITH EXPERTS Case studies 9 broadcasters Applying the Strategy-as-force model V A R A B N N V P R O N T R K R O N C R V A V R O T R O S E O Reflection with experts Cross case analysis Conclusion & Recommendations EMPIRICAL RESEARCH RESEARCH INTRODUCTION RESEARCH DESIGN

17 RESEARCH INTRODUCTION RESEARCH SUBJECT AND OUTLINE ADDED VALUE CONTENT OF STRATEGIES STRATEGY AS FORCE PROCESS BEHIND STRATEGIES SYNTHESIS ANALYSING RESULTS CONCLUSION & RECOMMENDATIONS RESEARCH FINALIZATION & EPILOGUE

18 ADDED VALUE ADDED VALUE THEORY CASE EXAMPLE CROSS CASE RESULTS

19 19/56 (1) Increase Productivity (1) Location selection (2) Workplace innovation (3) Retention human capital (2) Reduce costs (4) Workplace costs Added value to firm Operating decision Maximum wealth of shareholders (5) Accommodation costs (6) Facility costs (7) Benchmarking (8) Corporate finance (3) Control Risks (9) Inflexibility real estate portfolio (10) Choice of location (11) Value risk (12) Work environment (13) Environmental aspects (14) Development process Business strategy (4) Increase Value (15) Acquisition and sale real estate (16) (Re)development real estate (17) Real Market Estate analysis Strategy (19) Financial flexibility Asset (20) Technical flexibility Management Property Facilities (22) Communication Management Management (5) Advance flexibility (18) Organisational flexibility (6) Support Culture (21) Workplace innovation (7) Support PR/Marketing (23) Image (24) Sales points (25) Sales strategy Vision, Mission Other functional strategies Lindholm, A. and Leväinen, K. (2006). A framework for identifying and measuring value added by corporate real estate. De Jonge, H. (1996). Toegevoegde waarde van concernhuisvesting. NSC-Conference, 15 oktober 1996 Journal of Corporate Real Estate Vol. 8, No. 1, pp ADDED VALUE ADDED VALUE THEORY

20 CASE EXAMPLE MERGER VARA-BNN 20/56 ADDED VALUE CASE EXAMPLE

21 21/56 ADDED VALUE CASE EXAMPLE

22 22/56 ADDED VALUE CASE EXAMPLE

23 23/56 Accommodation strategy Key words empirical findings Increase Reduce Control risks Increase Advance Support productivity costs Value flexibility culture X X X X X Refurbish interior for better integration Facility sharing with VARA No risky investments or double costs New ways of working Refurbish interior for better integration Support PR/Marketing ADDED VALUE CASE EXAMPLE

24 24/56 ADDED VALUE CROSS CASE RESULTS

25 25/56 Increase productivity Reduce costs Control risks Increase Value Advance flexibility Support culture Support PR/Marketing VARA BNN TROS AVRO KRO NCRV VPRO EO NTR ADDED VALUE CROSS CASE RESULTS

26 RESEARCH INTRODUCTION RESEARCH SUBJECT AND OUTLINE ADDED VALUE CONTENT OF STRATEGIES STRATEGY AS FORCE PROCESS BEHIND STRATEGIES SYNTHESIS ANALYSING RESULTS CONCLUSION & RECOMMENDATIONS RESEARCH FINALIZATION & EPILOGUE

27 STRATEGY AS FORCE STRATEGY-AS-FORCE THEORY CASE EXAMPLE CROSS CASE RESULTS

28 28/56 FORCE RELATION INTERACTION THROUGH WHICH STRATEGIC RESOURCES ARE ADDED TO THE CAPACITY TO AFFECT OR EFFECT THE REALIZATION OF A PROJECT Daamen, T. (2010). Strategy as Force STRATEGY-AS-FORCE STRATEGY-AS-FORCE THEORY

29 29/56 Mobilization of strategic resources Point A Point B Desired end result STRATEGY-AS-FORCE STRATEGY-AS-FORCE THEORY

30 30/56 IV Planning relations Allocative Instruments Property I Material relations Planning Venturing Deliberative Time/Result Finance Emergent Commitment Expertise Visioning Learning III Deliberative relations Legitimacy Authoritive Information II Knowledge relations Daamen, T. (2010). Strategy as Force STRATEGY-AS-FORCE STRATEGY-AS-FORCE THEORY

31 CASE EXAMPLE MERGER VARA-BNN 31/56 STRATEGY-AS-FORCE CASE EXAMPLE

32 32/56 PROPERTY STRATEGY-AS-FORCE CASE EXAMPLE

33 33/56 EXPERTISE STRATEGY-AS-FORCE CASE EXAMPLE

34 34/56 LEGITIMACY STRATEGY-AS-FORCE CASE EXAMPLE

35 35/56 STRATEGY-AS-FORCE CROSS CASE RESULTS

36 Relation Resource Case study results Mobilized by Material relation Property Offering attractive property alternatives NPO Municipality Finance Media budget : merger bonus Ministry Media budget: Licence Friction costs subsidy Knowledge relation Expertise Boston Consulting Group Ministry 36/56 Information Rudy Stroyk, Brink Groep Real estate broker, real estate expert, Twynstra Gudde Bureau Rietmeyer Real estate brokers KPMG/PWC BCG results: Financial/organisational facts of the broadcasters VARA/BNN AVRO KRO/NCRV TROS EO Ministry Deliberative relation Legitimacy Justification of choices All actors involved Planning relation Commitment Time/Result Instruments (BCG-report) (Ministry) STRATEGY-AS-FORCE CROSS CASE RESULTS

37 37/56 IV Planning relations Instruments Allocative Property I Material relations Deliberate Time/Result Commitment Finance Expertise Emergent Mobilized Not mobilized Initially mobilized III Deliberative relations Legitimacy Information Authoritive II Knowledge relations STRATEGY-AS-FORCE CROSS CASE RESULTS

38 RESEARCH INTRODUCTION RESEARCH SUBJECT AND OUTLINE ADDED VALUE CONTENT OF STRATEGIES STRATEGY AS FORCE PROCESS BEHIND STRATEGIES SYNTHESIS ANALYSING RESULTS CONCLUSION & RECOMMENDATIONS RESEARCH FINALIZATION & EPILOGUE

39 SYNTHESIS URBAN AREA DEVELOPMENT VS REAL ESTATE MANAGEMENT APPLYING STRATEGY-AS-FORCE REFLECTION WITH EXPERTS

40 40/56 Strategy processes/resources Strategic Visioning Legitimacy Accountability, ethics, acquiescence Commitment Belief, trust, persuasiveness Strategy processes/resources Strategic visioning Legitimacy (No) power to steer Justification towards general public Commitment Willingness to collaborate, share facilities Willingness to combine cultures, identities SYNTHESIS UAD VS REM

41 COMMITMENT MOBILIZING COLLABORATION INDICATORS 41/56 Process Approach Organisation Ambition Interests Relation Kaats, E, Opheij, F. (2012). Leren samenwerken tussen organisaties. Deventer: Kluwer SYNTHESIS UAD VS REM

42 Can we create planning relations? Can we create material relations? 42/56 Instruments Property Can we create deliberative relations? Process Approach Time/Result Ambition Finance Information Organisation Relation Interests Legitimacy Expertise Can we create knowledge relations? SYNTHESIS APPLYING SAF

43 It definitely works as an evaluation instrument. I shows why these types of projects don t work here and one could apply the model next time or in a different environment. It would have certainly, as we are now talking about why the process was not successful, helped if that difficult process was known beforehand. Then we would not have had the ambition to steer the project. (Henk Hagoort 2014) 43/56 If it concerns the accommodations I don t think using this model would have led to a better result because the power and interests were too fragmented at the time. In a later phase, and probably if the governance would change, then it could be used for real estate management issues at the Public Broadcasters as well. (Marije Schuring 2014) SYNTHESIS REFLECTION

44 RESEARCH INTRODUCTION RESEARCH SUBJECT AND OUTLINE ADDED VALUE CONTENT OF STRATEGIES STRATEGY AS FORCE PROCESS BEHIND STRATEGIES SYNTHESIS ANALYSING RESULTS CONCLUSION & RECOMMENDATIONS RESEARCH FINALIZATION & EPILOGUE

45 CONCLUSION & RECOMMENDATIONS USEFUL TOOL? RECOMMENDATIONS EPILOGUE

46 46/56 RESEARCH QUESTION IS THE STRATEGY-AS-FORCE MODEL A USEFUL TOOL FOR IMPROVING A COMPLEX MULTI ACTOR PROCESS OF ALIGNING ACCOMMODATION STRATEGIES? CONCLUSION & RECOMMENDATIONS USEFUL TOOL?

47 47/56 USEFUL EVALUATION TOOL FOR IMPROVING REORGANIZATION PROCESSES MORE INSIGHT GAINED HANDGRIP FOR PROCESS IMPROVEMENT CONCLUSION & RECOMMENDATIONS USEFUL TOOL?

48 48/56 IV Planning relations Instruments Allocative Property I Material relations Time/Result Finance Deliberate Commitment Expertise Emergent III Deliberative relations Legitimacy Information Authoritive II Knowledge relations CONCLUSION & RECOMMENDATIONS USEFUL TOOL?

49 49/56 LESS USEFUL MANAGEMENT TOOL FOR IMPROVING REORGANIZATION PROCESSES CULTURAL DIFFERENCES TOO LARGE; NO AMBITION AUTONOMOUS ORGANIZATION; NO LEGITIMACY CONCLUSION & RECOMMENDATIONS USEFUL TOOL?

50 50/56 Instruments Property Time/Result Finance Organisation Process Approach Ambition Legitimacy Expertise Information Relation Interests CONCLUSION & RECOMMENDATIONS USEFUL TOOL?

51 51/56 STRATEGY-AS-FORCE NO FURTHER USE BROADCASTERS UNIVERSITIES, HEALTH CARE OR OTHER COMPLEX ENVIRONMENTS CONCLUSION & RECOMMENDATIONS STRATEGY-AS-FORCE

52 52/56 DEALING WITH UNCERTAINTY DOING NOTHING INCREASING FLEXIBILITY USING SCENARIO PLANNING CONCLUSION & RECOMMENDATIONS BROADCASTERS

53 53/56 PROPER PR/MARKETING PR/MARKETING MUST ADD VALUE TO PROGRAMMATIC CONTENT; FOCUS ON INTERIOR CONCLUSION & RECOMMENDATIONS BROADCASTERS

54 54/56 COLLABORATION FORCED COLLABORATION OR BOTTOM- UP INITIATIVE The merger of existing broadcasters is an important step towards a public broadcasting system that retains the diversity which makes the public broadcasters this special, but at the same time is less fragmented, more efficient and better management. (PVDA 2013) CONCLUSION & RECOMMENDATIONS BROADCASTERS

55 55/56 CONCLUSION & RECOMMENDATIONS EPILOGUE

56 56/56 CONCLUSION & RECOMMENDATIONS EPILOGUE