Issue link: https://resources.tangoanalytics.com/i/1465853
SMARTER STRATEGIES. FASTER EXECUTION. I www.tangoanalytics.com I PAGE .3 by providing the necessary intelligence every step of the way – and as changes are made to any part of the plan, they flow through the entire system so that agile strategic decision making can meet rapid execution. The truth is, both strategy and execution are important – and to make real estate and store development strategy effec- tive, the interrelation between them is something companies can no longer overlook. The Current Landscape Real estate information is often kept in silos, with the deal makers, the market planners / analysts, the finance depart- ment, the construction project managers, facilities managers and operations all maintaining separate systems that don't communicate with each other. This, of course, results in tremendous inefficiency, frustration and overwork as the various groups try to meet deadlines and keep track of the process. And inevitably, big mistakes happen because one group doesn't get the full breadth of the information about what the others are doing. According to the HBR study, 30 percent of managers identi- fied failure to coordinate across units as a challenge to executing company strategy, and that they were three times more likely to miss performance commitments because they didn't get the support from other business units they required. This reality has a material impact on organizations, with failure to coordinate leading to conflicts between functions and units, and these conflicts are: iii This spells disaster for retail store development where every delay is another day without revenue and every miscommu- nication leaks mission critical capital. A very common, and expensive, example of this has happened to almost every retailer – the construction depart- ment remodels a store or invests substantial capital to improve assets but the lease is expiring in under a year and there are no options to renew – or the Real Estate and Research teams have decided not to renew the lease for performance or strategic reasons. In this situation the lack of coordination and communication between Research, Real Estate, Design & Construction, or Facilities Maintenance is the culprit and clearly strategy and execution are not aligned. When not working together, decision-critical information is often missed, opportunities are overlooked and companies do not have the agility to change direction when market conditions change. One third of managers cited difficulties adapting to changing marketing circumstances as one of the greatest challenges to executing strategy. iv STRATEGIC STORE LIFECYCLE MANAGEMENT 67% 38% 14% 12% HANDLED BADLY 2 OUT OF 3 (67% OF THE TIME) RESOLVED AFTER A SIGNIFICANT DELAY (38% OF THE TIME) RESOLVED QUICKLY BUT POORLY (14% OF THE TIME) OR SIMPLY LEFT TO FESTER (12% OF THE TIME)