To remain competitive, it is critical that a retailer have well defined real estate and facilities strategies, with an effective and efficient organization to support it. Optimizing the program requires re-evaluating your organization, people, processes and governance. Doing so proactively can keep your company competitive and well positioned for what challenges and opportunities lay ahead.

The foundation for a strong RE function is a solid relationship with executive leadership and alignment with field operations and the sales team. To best ensure alignment, use a RACI chart to map specific functions to each organization. RACI is an acronym for Responsible, Accountable, Consulted, Informed. Each letter represents a level of task responsibility. This helps set clear expectations about roles and responsibilities for the cross-functional team.

Next, perform a skill gap analysis to evaluate capabilities against the services gaining importance to the business, such as strategy development, portfolio planning, project management and leadership skills.

If a third-party service provider is used, define the work roles necessary to address internal skill gaps to avoid redundancy. Examine your vendor partners and, where it makes sense, expand your base to drive competition.

To drive cost improvement, refine your acquisition strategies, generate new scope optimization by defining the space condition, square footage, standards & store conditions. Introduce new concepts and innovation to your construction approach.

To ensure customer satisfaction, give careful attention to your operations consisting of construction, maintenance & repair, and lease administration. To produce excellence in the construction segment formulate detailed estimates and schedules and ensure all costs are accurately communicated. Manage repair & maintenance work activities performed by technicians, contractors and 3rd parties performing building maintenance, landscaping and janitorial work. Define and publish clear standards and establish dashboards and monitoring to track work-order performance and employee satisfaction. Abstract, input, reconcile, analyze and evaluate all leases to manage billings, changes, lease discrepancies, renewals and amendments.

Transforming your real estate program is an initiative that can benefit from a partner with a fresh perspective and deep expertise. When a major telecom wanted to assess its real estate program, it realized that R$2 was the right fit for the job. R$2 first performed a comprehensive function assessment, then performed a marketplace review, analyzed spend, developed a sourcing strategy, and conducted supplier negotiations for transaction management services, architectural & engineering, and construction project management. Their transformation started by contacting Right Sourcing Solutions. Discover how R$2 can transform your retail RE organization.