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Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport and the Brainport of the Netherlands Wouter Jan Verheul & Tom Daamen

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Page 1: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

Challenge the future

DelftUniversity ofTechnology

Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport and the Brainport of the Netherlands Wouter Jan Verheul & Tom Daamen

Page 2: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

2Emergent Strategy in Real Estate Development

Classifying a Platypus

Page 3: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

3Emergent Strategy in Real Estate Development

Planning to Achieve or Avoid?

“In recent years, the neat separation between public and

private sector development has begun to break down. [If]

planners wish to do more than merely frustrate development,

they must increasingly rely on implementation agents in the

private and voluntary sector. […] In this context, capacity building

requires greater trust, mutual respect, and a willingness to

work together in partnership to achieve mutually beneficial and

desirable outcomes.”

Adams & Tiesdell (2010: 201)

Page 4: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

4Emergent Strategy in Real Estate Development

Positioning our research ‘field’

SociologySociology EconomicsEconomics GeographyGeography

Management Management SciencesSciences

Politics & PolicyPolitics & PolicySciencesSciences

Real EstateReal Estate Spatial Spatial Planning & Law Planning & Law

Architecture & Architecture & UrbanismUrbanism

Management of Urban

Development Projects

Fields of Research

Page 5: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

5Emergent Strategy in Real Estate Development

Our Paper

• Studying real estate projects ‘from concept to concrete’

• Trying to understand the relationship between policy programs and the actual realisation of projects – two cases

• Relating what is actually done in these processes to what theoretically should be done

• Deconstruct and (re-)conceptualise the management process behind contemporary large-scale real estate projects.

Page 6: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

6Emergent Strategy in Real Estate Development

Beyond ‘blue print’ planning

1. Hierarchical, machine-like control2. Objective, scientific determination3. Linear processes, means-ends thinking4. Deliberate action, plan ‘implementation’

regardless of context.

Rational, modernist principles in planning thought

Page 7: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

7Emergent Strategy in Real Estate Development

“Climb the ‘central plateau’ from which an ideal, objective

observer can discern what is best for society. Standing

there, be confident that disciplined forethought will make

society’s collective actions more rational, its judgments

more principled, and its future more subjective to human

control. Wipe the slate clean and ‘make it new’, all in the

name of Progress, Order, and Reason’

(Throgmorton, 1996: 3). 

Page 8: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

8Emergent Strategy in Real Estate Development

Beyond ‘blue print’ planning

1. Collaborative efforts, interdependency2. Subjective narratives, persuasive

argumentation3. Non-linear processes, path dependencies 4. Emergent actions without goals, context-

dependency

Ideas and concepts in contemporary planning thought

Page 9: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

9Emergent Strategy in Real Estate Development

Page 10: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

10Emergent Strategy in Real Estate Development

Beyond ‘blue print’ planning

Source: Mintzberg, Ahlstrand & Lampel (1998)

Deliberate and emergent decisions and actions

Page 11: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

11Emergent Strategy in Real Estate Development

Main Research Question

How – if not in a linear, centralist way – are connections

actually made between abstract urban policy programs and

specific real estate development projects?

Or in discursive terms:

How do the ‘micro narratives’ of projects get connected to the

‘macro narratives’ of urban policy programs?

Page 12: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

12Emergent Strategy in Real Estate Development

High Tech Campus Eindhoven

Page 13: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

13Emergent Strategy in Real Estate Development

Analysis High Tech Campus case

Time+/-

Micro-narrativeHigh Tech Campus

Master-narrativeCity of Eindhoven

1995 Need for laboratory extension Philips

Post-industrial identity crisis

1996 Inner-city location for laboratory?

Growing distance between city and Philips

1997 Valley outside the city? Opposition of environmental lobby

1998 Head office Philips to Amsterdam

Smartcity approach

2000 Open innovation model Triple helix paradigm

2001 Third parties at campus Brainport Eindhoven

2005 Open, green, flexible campus Brainport with new icon

Page 14: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

14Emergent Strategy in Real Estate Development

High Tech Campus Eindhoven

Page 15: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

15Emergent Strategy in Real Estate Development

RDM Campus Rotterdam

Page 16: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

16Emergent Strategy in Real Estate Development

Analysis RDM Campus caseTime+/-

Micro-narrativeRDM Campus

Master-narrativePort City of Rotterdam

2000 - Diversify economy (not just port industry) plus a flourishing city

2002 New working and living environment in the city

-

2004 Development company occupies RDM head office building

Port contribution to urban living environment? Workforce!

2005 Enclave to become ‘Research Design and Manufacturing’ center

City of ‘enterprise and living’

2006 Start development RDM Campus

Five priority areas incl. CityPorts

2007 CityPorts renegotiated. RDM project continues.

Strenthen Mainport position. Strong economy, attractive city.

2008 RDM agreement (€20-22M) -

Page 17: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

17Emergent Strategy in Real Estate Development

RDM Campus Rotterdam

Page 18: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

18Emergent Strategy in Real Estate Development

Conclusions

• Local authorities are not THE inventors of a master-narrtive for urban development;

• Policy programs and concrete projects are developed simultaneously and inter-active;

• Results always different then in first instance;

• Rational step-by-step approach too narrow; development processes are circular and emergent;

• Progression is made when policy programs and concrete projects are connected;

Page 19: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

19Emergent Strategy in Real Estate Development

Implications (1)

• Context awareness;

• Adaptive strategic thinking;

• A double focus: staying goal-oriented while seizing opportunities;

• Forging ‘discourse-coalitions’.

An emerging development strategy perspective implies…

Page 20: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

20Emergent Strategy in Real Estate Development

Pro-active Re-active

Consolidation

Revision

Connecting micro and master narratives: a conceptualisation

Implications (2)

Page 21: Challenge the future Delft University of Technology Emerging Strategy in Large Urban Development Projects Real Estate Development Projects in the Mainport

21Emergent Strategy in Real Estate Development

Tom [email protected]+31639251310

Wouter Jan [email protected]

+31618635623