Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities

International Journal of Strategic Property Management ISSN 1648-715X print / ISSN 1648-9179 online

2011 Volume 15(1): 35–47 doi: 10.3846/1648715X.2011.565868

STRATEGY AND SPACE: A LONGITUDINAL CASE STUDY OF BROADCASTING FACILITIES

Per Anker Jensen Technical University of Denmark, DTU Management Engineering, Produktionstorvet, Building 424, 2800 Lyngby, Denmark E-mail: [email protected]

Received 2 July 2010; accepted 26 October 2010

ABSTRACT. The article is based on results from a research project on space strategies and building values, which included a major case study of the development of facilities for the Dan- ish Broadcasting Corporation over time. The focus is to identify, how different space strategies have been implemented in different periods and how these strategies can be related to the general conditions of the corporation. The strategic uncertainty of the corporation is investigated as a main determining factor for changes in space strategy based on theories of the relations between strategy and place. These theories include that corporations follow one of the three generic space strategies: Incrementalism, standardization, and value-based strategy. Among the conclusion are, that the space strategies mostly changes between incremental and value-based strategies, but one period of standardization was identified. Furthermore, there is a clear relation between value-based space strategies and the presence of visionary project champions.

KEYWORDS: Space strategy; Strategic uncertainty; Positioning strategy; Adaptability; Project champions

1. INTRODUCTION corporation’s existence. Based on empirical research the development of DR is divided into 7 This article deals with space strategies un- distinct periods with different space strategies, derstood as strategies for managing the capac- which are related to differences in the strategic ity and quality of building space needed for the uncertainty. Furthermore, it is analyzed how development of an organization. Other terms the space strategies deals with adaptability in used in literature are property management varying ways in different periods. strategies, corporate real estate management The research was part of a research project strategies, and accommodation strategies. on space strategies and building values, which The research questions were: what are the involved a major case study of the development main drivers for the development and chang- of facilities for DR (Jensen, 2006a, 2006b and es in space strategies, and how can different 2007). The paper starts with a description of space strategies be characterized? These ques- the research methods applied and the purpose tions were investigated in literature studies of the research, followed by an outline of the and the results were tested in a case study of theoretical basis. Afterward the case study is the space provision for the Danish Broadcast- presented as well as the major findings in rela- ing Corporation (DR) during the 80 years of the tion to space strategies and finally conclusions are drawn.

2. RESEARCH METHODS AND itly expressed or implicit, but in either case the PURPOSE practical management and decisions on space will be an indication of specific policies and a The data collected in the research project certain strategy. The need to explicitly express are partly based on interviews and a question- policies and strategies of space is related to naire survey, but the results presented in this the strategic importance of space in a specific paper are mainly based on literature studies situation and time period. and archive research. The literature studies have both been of a theoretical nature related Strategic importance of space to space strategies and of empirical nature with focus on the development of space pro- Barrett and Baldry (2003) discuss the dif- vision in DR. The archive studies have sup- ference between strategic and operational deci- plemented the empirical literature studies and sions. They develop a diagnostic checklist ac- have included studies of archives at DR’s in- cording to which a problem is strategic if most ternal library and archive as well as archives of the following criteria are fulfilled: The prob- on some of DR’s major building projects at the lem occurrences are rare, the consequences are Danish National Archive. radical, serious, widespread, long-lasting and As part of the research all annual reports precursive with many parties involved. from DR have been reviewed and timelines of It is characteristic for space provision that quantitative data like development in annual most companies only occasionally make major expenditure and number of staff have been es- decisions. According to O’Mara (1999) they tablished. The development in DR is analyzed take place in average every 3-5 years in bigger in relation to international development in American companies. Such decisions mainly broadcasting and the general development in occur when new building projects are initiat- society during the same historical period. ed, buildings are going to be bought or sold or In this paper the case study is on one hand major rental arrangements started or ended. used to test a theory about generic space strat- In these situations the strategic importance of egies. On the other hand the case study is used space decisions is obvious, because the deci- together with the theory to get a deeper un- sions will have serious long-term consequences derstanding of the development in DR’s space on the companies’ economy and possibilities to provision. The research aims to contribute to develop with important consequences for staff the development of theory on space strategy and collaborating partners. Between such de- mainly by providing an increased empirical cisions space is important as a physical frame foundation. Furthermore, the research at- for the company and responsible for consider- tempts to provide an exemplary way to study able expenses, but is does not necessarily need space provision to create more consciousness much ongoing attention among the top man- about the importance and conditions for space agement of the company. Space is usually just strategies among managers. taken for granted. Therefore it is relevant to distinguish be- 3. THEORETICAL BASIS tween generic strategic areas and current strategic areas (Jensen, 2004). Generic stra- A space strategy is always based on some tegic areas are generally of great importance presumptions or policies, for instance whether for the long-term development of the compa- a company prefers to own or rent their facili- ny, but they do not necessarily requires much ties. Both policies and strategies can be explic- ongoing attention from the top management. Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities 37

Current strategic areas are areas where spe- Lindholm et al. (2006) identify the follow- cific internal or external developments make it ing 7 strategies: necessary to frequently make critical decisions 1. Increase value of assets (leads to revenue of importance for the company’s long-term de- growth). velopment. Space is characterized as a generic 2. Promote marketing and sale (leads to strategic area, which occasionally becomes a revenue growth). current strategic area for the top management 3. Increase innovation (leads to revenue of companies. In comparison areas like product growth). development and market position have a more 4. Increase employee satisfaction (leads constant need for attention from top manage- to revenue growth and/or profitability ment as they are of great importance for com- growth). 5. Increase productivity (leads to profitabil- panies’ income. ity growth). 6. Increase flexibility (leads to profitability Real estate strategies and corporate growth). objectives 7. Reduce cost (leads to profitability Nourse and Roulac (1993) link real estate growth). decisions to corporate strategy. They discuss For each strategy a number of different how alternative real estate strategies can con- possible solutions in the real estate decision tribute to business objectives and come to the making at the operational level is specified. conclusion that too often the dominant empha- The work by Krumm et al. (1998) has also sis is on the financial goal of cost minimiza- been followed up by Vries et al. (2008), who tion. In order to effectively support a range have investigated the impact of real estate of corporate objectives, multiple, rather than interventions to organisational performance single real estate strategies are required. They through a survey among Institutes of Higher Professional Education in the Netherlands. link eight types of real property strategies to The empirical study was based on a theoreti- a number of possible aims of a firm. These in- cal model that takes its starting point in the clude common corporate real estate decisions thinking of Joroff et al. (1993), that real estate regarding site selection, facility design, and is the fifth resource after human resources, leasing. Others are related to the traditional technology, information and capital. These re- goals of reducing occupancy costs and facili- sources are inputs into an organisational proc- tating production, operations, and service de- ess leading to the general outputs of products livery. and services. The influences of real estate are Krumm et al. (1998) have partly based on investigated in relationship to production, im- the work of Nourse and Roulac (1993) identi- age, flexibility, culture, innovation, satisfac- fied elements of added value of real estate and tion, cost, risk control, and the possibility to this research has more recently been followed finance. The impacts on performance are re- up by Lindholm et al. (2006), who has imple- lated to changes in productivity, profitability mented a model of strategic mapping from and competitive advantages. balanced score card methodology (Kaplan and The most comprehensive study of the real Norton, 2000) to show how real estate strate- estate strategies corporations actually follow gies can lead to profitability growth and/or rev- has been carried out by the American research- enue growth and thereby maximize the wealth er O’Mara (1999) and she has also developed of shareholders. a theory about what determines generic space 38 P. A. Jensen strategies. This theory has been the primary Value-based strategy means that that the basis for the case study in this article and will symbols and values of the organization plays be explained further below. an important role in decisions on space. This strategy is mainly applied by companies un- Generic space strategies der medium uncertainty. This is typically companies that use building projects to promote The most important aspect of space strat- their position both by creating optimal physi- egy is according to O’Mara (1999) to ensure cal frames for production processes and by the long-term adaptation of space to compa- utilizing the buildings as a symbol in relation nies’ need for development. Space strategies to the surrounding world. It can be relatively enable competitive advantages by supplying new companies that have reached a level of in- the right resources in the right place at the creased certainty about the future and a need right time at the right cost. Real estate and to make this manifest. Also companies which facilities fulfill two critical roles; the first role have survived a major crisis period or compa- is to physically support the production process nies with a new management who wants to and the second role is the symbolic representa- create and signal major changes will often ap- tion of the organization to the world. O’Mara ply a value-based strategy. (1999) defines three generic space strategies The strategies are according to O’Mara based on analyses of space provision in more mainly dependent on the companies’ strategic than 40 American companies: Incrementalism, uncertainty about their future development standardization and value-based strategy. and a company’s strategic uncertainty can be Incrementalism means that adaptations of analyzed from the following factors in the sur- space are made only in small steps when ab- roundings: Finance, competition, customers, solutely necessary and extra space is usually suppliers, politics and technology. rented to avoid major capital investments. This strategy is mainly applied by companies un- Related studies der great uncertainty, which is typical for new companies in the start-up stage, where the de- Singer (2005) provides an interesting study mand for the companies’ products is impossi- from the Netherlands based on the theories ble to predict. The strategy can also be applied on generic space strategies by O’Mara (1999). by companies under fast growth, where acquir- These theories are seen as an expression of the ing extra space rapidly when needed, has high positioning school of strategic management, priority. In markets with rapid economical or which is based on the very influential theories technological changes or general great uncer- by Porter (1985). Mintzberg et al. (1998) com- tainty this strategy is also often used. pares ten different schools of strategic man- Standardization means that both design agement, and the positioning school is charac- and decisions on space are strongly regulat- terized by being analytical and less concerned ed and based on strict long term plans. This with the process of strategy formation than strategy is mainly applied by companies under with the actual content of strategies. Singer low uncertainty. This is typically large com- (2005) presents eleven small case studies and panies with a well consolidated position in a among the conclusions was that the three ge- relatively stable or expanding market and of- neric strategies all were found applicable, but ten with distributed localization. The strategy not all the components in O’Mara’s contextual often involves standardization of both design model could be established. processes and design outcome. Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities 39

The work by Singer (2005) is part of a been strong although there has been a change number of research studies at Delft University towards more independence, particularly after of Technology with the aim to develop a frame- loosing the monopoly status. Until then DR’s work for designing accommodation strategies. budget was decided annually by the govern- Jonge et al. (2009) present such a framework ment while the budget and other conditions and O’Mara’s theories are presented as one are now decided for periods of 3-4 years. out of six methods for strategy design that are The overall development in DR over time compared. They conclude that O’Mara’s theo- is illustrated by the annual expenditure and ries are strong on objective (generic strategies) number of staff from 1925 to 1959 in Figure 1 and process (analytical framework), but the and from 1960 to 2004 in Figure 2. Expendi- relationship between the two is not explicitly tures are indexed to price level 1925 and 1960, dealt with. respectively, and the scale for the expenditures is 100,000 DKK in Figure 1 and million DKK in Figure 2. 4. CASE STUDY FINDINGS Figure 1 shows a gradual increase in both DR was established in 1925 as a state in- expenditure and staff from the beginning, but stitution with monopoly in Denmark on radio with the strongest increase in staff. The sud- broadcasting. In the 1950’s television was add- den increase in staff around 1950 was caused ed and DR kept the monopoly on nationwide by transfer of technical staff working for DR television broadcasting until 1988. From the from the Danish Post and Telegraph Corpo- beginning DR was financed fully by license ration. During the 1950’s the staff increased fees and this is still the main income. DR is rapidly, but the expenditures increased even not allowed to get income from commercial ad- more due to investments in television and FM verts. The political control of DR has always radio network.

DR's expenditures and number of staff 1925 – 1959 Price level 1925

800 700 600 500 f Expenditures

staf 400 Staff

100.000 DKK/Number of DKK/Number 100.000 300 in 200 100 0 Expenditures 1925 1927 1929 1931 1933 1935 1937 1939 1941 1943 1945 1947 1949 1951 1953 1955 1957 1959

Figure 1. DR’s expenditure and staff 1925-1959 (Jensen, 2006a) 40 P. A. Jensen

DR's expenditures and number of staff 1960 – 200 4 Price level 1960

er 4.000 mb 3.500 3.000 KK/Nu f

D 2.500 af

o. Expenditures st

mi 2.000 Staff in 1.500 es es

ur 1.000 it

nd 500 pe 0 Ex

Figure 2. DR’s expenditure and staff 1960-2004 (Jensen, 2006a)

Figure 2 shows that the number of staff ex- Incrementalism during the early years ploded from the start of the 1960’s and contin- of radio 1925-1933 ued to increase rapidly due to the strong devel- During the early years the uncertainty opment of television and more radio channels about DR’s future was very great both in rela- until the end of monopoly in 1988. After that tion to finance, customers, politics and technol- the number of staff has been fairly stable with ogy. Only in relation to competitors was there a slight downward trend due to rationalization no immediate uncertainty because of the mo- and outsourcing. The expenditures increased nopoly – except for foreign radio stations but during the 1960’s and 1970’s but very slight none of these broadcasted in Danish. The first compared to the increase in staff and since year was a test year and DR just managed to 1980 the annual expenditures have been al- get the prospected income from license fees, most the same in fixed prices. DR has mainly been located in purpose but DR quickly turned into a big success with designed buildings financed by the annual in- many more listeners and higher income than come from license fees. DR has in general not expected. The organisation expanded quickly been allowed to take out mortgages or other and invested heavily in new technology for kinds of loans without special permission from production and transmission to increase the the government. The current project of build- quality of broadcasting. ing a new headquarters in Copenhagen (DR Initially DR took over existing production BYEN) is the first building project, which is facilities with a radio studio and technical mainly financed by state guaranteed loans. equipment at a P&T building in Copenhagen. The analysis of DR’s general development, Office facilities were placed subsequently in the strategic uncertainty and space provision two different buildings around Copenhagen has resulted in a division of 7 periods char- during the first year before they could be situ- acterized by different space strategies. This is ated close to the production facilities by the explained below through a description of each end of 1926. In 1928 all of DR moved to a period. rented place, where improved studio facilities Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities 41 were established including the worlds first ra- Value-based strategy during the dio concert studio with audience. building of Radiohuset 1934-1945 However, before DR’s move the Danish min- The decision to build a purpose designed ister of public works, who was responsible for building for DR marked the change to a val- DR, had decided to build an extension to the ue-based strategy. DR had proven successful Danish Royal Theater with a new theater hall and the uncertainty in relation to finance, cus- but including space for DR and based on DR tomers and politics had been greatly reduced. being the owner of the building and renting The production and transmission network had out the theater hall. This was clearly a way been developed and the quality of broadcasting to economically support the Royal Theater by had been raised, but the technology was still DR’s steadily increasing income from license developing fast and the science of acoustics fees, but DR had to accept this solution. was still very young. The new extension – nick-named “Stære- Thus, the uncertainty in relation to technol- kassen” (“The Bird Nest Box”) – was finished ogy was still high, and this may be partly the with delays in 1931. Already during construc- reason why engineer Kay Christiansen from tion it became clear that the architect had not P&T became in charge of the new building implemented promised measures for sound project. He was the one who by chance discov- insulation between the theater hall and DR’s ered the problems with lacking sound insula- radio studios. In the meantime DR’s organization during the construction of Stærekassen tion had expanded rapidly, and therefore the and he had written the report that convinced new building did not provide enough space, the board of DR, that Stærekassen was unsuit- so DR had to rent office space in a neighbor- able for DR’s further development. He man- ing building and keep on renting the concert aged to get free hands to select a team with studio. Furthermore, after only two years the an architect, a structural engineer and an in- stallation engineer – the technical committee Royal Theater could no longer afford to rent – who jointly developed the project proposal for the theater hall, and DR was forced to take the new building, Radiohuset (Radio house), in it over without it being really useful for ra- 1934. After a reduction of the project, partly dio production. The case was all together a by no longer preparing for television, a revised big scandal, and when DR’s board required proposal including a concert hall was approved permission to develop a new purpose designed early 1936. building it took an expert inquiry to convince The technological uncertainty was reduced the minister that it was justified. However, af- by several study tours to other radio build- ter DR left in 1941 the building was taken over ings in Europe and during design a number of by the Royal Theater and has been used for technical experiments were conducted, mainly theater performances until recently, when a in relation to acoustics and sound insulation. new theater building was established nearby. An acoustic test facility was established on Stærekassen was preserved in 1995. the building site as part of bomb shelters con- The space strategy in the early years of structed for the building. radio from 1925 to 1933 was clearly an incre- The building was for most parts finished in mental strategy with several changes in space autumn 1940 after the German occupation 9 provision to accommodate the needs of a rap- April 1940, but the concert hall was purpose- idly expanding organisation and with some fully drawn out not to be finished before the expensive learning experiences. end of the war in 1945 to avoid it being used 42 P. A. Jensen for propaganda purposes by the occupation was great until 1954, when permanent permis- force. The national cultural importance of the sion for television was granted. building was clearly expressed at a meeting A plan for renting a specific building for a of the building committee in discussions on temporary television building was proposed in artistic decoration by the head of DR’s board DR but it was not approved. Instead it was Julius Bomholt – social-democratic member decided to make an extension to Radiohuset. of the parliament and later minister in sev- DR’s board decided as early as 1948 to have eral periods for among other things culture – a project proposal for such an extension pro- in 1941: “a building that should serve all our duced by the architect of Radiohuset but due popular cultural life. It is a building for the to the post-war situation with national mon- whole population. From it would come influ- etary problems and lack of building materials ences into every home in the country. The etc. permission for the new building project work to be taken place in the building should was not given before 1953 and it was finished serve to maintain our national identity and in 1958. In the meantime space for television our Danish heritage into the future.” (Jensen, had to be found in the existing building in- 2006a – translated by the author). cluding changing a former radio studio into a television studio and renting space for a film Incrementalism during the early years studio externally. of television 1946-1958 During the war radio broadcasting had been Value-based strategy and incrementalism during fast-growth reduced and the first years after was a period 1959–1972 of reconsolidation. This was soon changed to a new expansion and new developments by It soon became clear that the extension the beginning of television transmissions and of Radiohuset was insufficient to accommo- launching a second radio channel in 1951 fol- date the expanding needs for both radio and lowed by establishment of new transmission television, and the new media television was networks for television and FM radio. regarded by the radio staff as a cuckoo that This created need for more space and the had taken over their nest. In 1956 DR’s board head of television J. Fr. Lawaetz published a decided it was time to find a site appropriate book where he described his visions for televi- for a separate television house and in 1959 an sion house in Utopia. However, he realized that architectural competition was arranged. In- this was a long term goal and he wrote: “But stead of just one house the development be- do not believe, that we dream about building came much bigger and was called TV-byen (TV a house, we would not dare do that even if we town). It is placed in Gladsaxe 10 km north of had the money. First we need to gain lots of ex- Copenhagen and was developed in stages from periences. The best thing would be, if we when 1959 to 1981 as a 100,000 m2 complex. time is due could find an existing building that The brief for the architectural competition without too great changes could be made into described a project in two stages about the size a temporary television house.” (Lawaetz, 1951 of the extended Radiohus but the result turned – translated by the author). An incremental out to be 4 stages with three times as much strategy could not be expressed much clearer. space. In the brief the possibilities to make The first years of television were on an experi- extensions of all main functions – workshops, mental basis with only a few hours of trans- studios, technical facilities and offices - was mission per week, and the political uncertainty stressed and the winning project was based on Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities 43 bands for the different functions held together per week from a number of district radio sta- by a central joining corridor system, where tions around the countries, and this was also each band had space for expansions with more supported by an incremental strategy renting buildings. The buildings are with one to three places around Denmark and later on develop- floors except for a 15 storey high-rise office ing new buildings for district radio stations. building, which express the grandness of the development and the importance of television Standardization during continued as a media. expansion 1973-1983 The strategic uncertainty about television The developments of Radiohuset and the was reduced when the development of TV-byen first stages of TV-byen were managed by po- began. The transmission network was devel- litical building committees with many mem- oped nationwide and the number of viewers bers from DR’s management, DR’s board, the paying a special television license fee on top Danish parliament and building specialists. of the radio license fee was steadily increas- In 1970 DR appointed one of the engineers – ing. In a new law from 1959 television became Poul Høimark - with experience from TV-byen officially a part of DR’s broadcasting, so the as building coordinator. He became DR’s first political uncertainty was low. However, the professional internal building client. technological development within television was rapid and created uncertainty for the Around the end of 1960’s the political con- building planning and caused changes in the trol over DR was under debate as television layout. The technical center was originally had become a very powerful media, but a new planned for only one channel and black and law from 1973 secured a higher degree of in- white television. This was later changed and dependence of DR’s economy. The explosive ex- an extra technical building was added to al- pansion of the 1960’s had changed into a more low for two channels and colour television. The moderate growth but DR’s license fees were latter was introduced in the late 1960’s, but still increasing from a higher colour television a second channel was not introduced before license fee. In this situation the space strategy the mid 1990’s. At that time the old facilities changed to standardization. were outdated and another new building was This was clearly expressed by the last stage added. of TV-byen, which consists of small modular The office spaces in TV-byen were designed building blocks with one to two floors joined with a strong focus on flexibility in relation to together by corridor systems. This building being able to move and reuse walls between system was first used for the television news offices and create offices of varying sizes for department in a building with eight modular various numbers of workplaces. Ceilings and blocks. While these were being built it was services were prepared for walls for each fa- decided to copy the system with another new cade column. building covering three modular blocks for The explosive expansion of television broad- other departments placed in another part of casting and staff during the 1960’s forced DR TV-byen. Around the same time it was also to complement the value-based strategy for de- decided to build three radio district buildings velopment of TV-byen by an incremental strat- in three towns in Denmark as standard build- egy including renting several places around ings. This was based on experiences from an- Copenhagen and building temporary pavilion other new radio district building which was buildings in TV-byen. Around 1960 regional used as a test project for developing the stand- radio transmissions started with a few hours ard building type. 44 P. A. Jensen

Incrementalism around the end of had started a huge development project in Co- monopoly 1984-1998 penhagen by building a new metro that was planned to be finance partly by developing and In 1983 a parliamentary commission on media recommended that an independent tel- selling of land in an area called Ørestad, in- evision station should be established in Den- cluding former military areas close to the city. mark to create competition to DR. Although The cost of the metro project escalated and the DR’s monopoly continued to 1988 it immedi- selling of land went very slowly. A big public ately increased the political uncertainty for DR institution like DR moving to this new devel- and when the monopoly stopped the political opment area could give a strong impetus to the uncertainty was substituted by a serious un- development. Christian Nissen saw this as an certainty from competitors – not only from the opportunity to transform DR to a new corpo- new Danish TV-2 but increasingly also from rate culture with new multi-media production other Danish and international commercial and completely digital technology as well as a television broadcasting via satellite transmis- new image of openness to the public without sion. DR’s market share gradually went down the heavy burden from the former status as a until the mid 1990’s, when the new Director monopoly. General Director, Christian Nissen, managed This decision is a clear indication of a to consolidate and improve the position, among value-based strategy and the involvement of other things by launching the new television the famous French architect Jean Nouvel as channel DR-2. architect on a prestigious concert hall gives In this period the space strategy again be- further evidence to this. After DR’s move into came incremental with only a few small new this new headquarters the space strategy has buildings and main focus on consolidating DR’s most likely again become incremental for a space in the main centers TV-byen, Radiohu- long period. set and R/TV-huset in Århus. In the process DR BYEN is in contrast to TV-byen a very several rented spaces were finalized and also compact complex of 130,000 m2. It is organ- some owned facilities were sold. For the first ized with four buildings joined together by a time an explicit space strategy was formulated grand internal street and with mixed functions in DR. in each of the buildings. It is almost impossible to extent the buildings, but it is possible for Value-based strategy during relocation DR to built new building on the other side of to DR BYEN 1999– a metro high-rail. The internal adaptability is The consolidated market position for DR’s based on open office spaces with great gener- television reduced to some degree the uncer- ality. tainty in relation to finance, competitors and DR BYEN was for the most parts occupied politics, but reduced uncertainty is hardly suf- in 2006, but the concert hall did not open be- ficient to explain why DR decided in 1999 to fore January 2009 due to severe construction relocate all functions in Copenhagen to a new delay. Both Radiohuset and TV-byen has been headquarters building called DR BYEN (DR sold off to a development company. Radiohuset TOWN) in a new area being developed called had been preserved since 1994 and it is now Ørestad Nord close to the city. used as a music academy. TV-byen has been The reason was that political opportuni- changed in to a mixed area with offices, hous- ties suddenly occurred as the Danish state ing, private hospital and film production. Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities 45

Summary mented by an incremental strategy to accom- An overview of DR’s main buildings with modate the rapid developing need for space. their location, main function, period of DR’s That period is for the only time followed by a occupation and size is shown in Table 1. period with a standardization strategy. This The space strategies used by DR during its occurs alongside DR establishing the first pro- 80 years history shift from periods with incre- fessional building client function. The seven mental strategies and periods with value-based periods vary between 9 and 15 years with an strategies. During the 1960’s with explosive average about 12 years. The main results are expansion a value-based strategy is comple- summarized in Table 2.

Table 1. Facts about DR’s main buildings over time

Building Location Main function Period Size Stærekassen Copenhagen City Radio 1931–1941 6000 m2 (“The Bird Nest Box”)

Radiohus, Frederiksberg (close to Radio, 1941–2007 30000 m2 including extension Copenhagen City) incl. concert hall

TV-byen, Gladsaxe (10 km north of TV and 1964–2006 100000 m2 all phases Copenhagen) administration

R/TV-huset, Århus (Denmark’s second TV and radio 1973– 28000 m2 all phases largest city)

Distrikthuse, Odense, Vejle, Ålborg Regional radio 1983– 2600 m2 3 similar buildings (province towns) each

DR BYEN Ørestad Nord TV, radio, concert hall, 2006– 130000 m2 (close to Copenhagen City) administration

Table 2. Summary of DR’s space strategies in 7 periods Space strategy Period Corporate development Main new buildings

Incrementalism 1925–33 Early years of radio Stærekassen (”The Bird Nest Box”) Value-based 1934–45 Golden years of radio and WW2 Original Radiohus

Incrementalism 1946–58 Rebuilding after WW2 and early Radiohus extension years of TV Value-based and 1959–72 Explosive growth of TV and regional TV-byen phase 1–2, Incrementalism development R/TV-hus phase 1 Standardization 1973-83 Increased independence and reduced TV-byen phase 3–4, growth R/TV-hus phase 2–3, districts Incrementalism 1984-98 End of monopoly, stagnation and None consolidation Value-based 1999– Digitalisation and DR BYEN multi-mediality 46 P. A. Jensen

5. CONCLUSIONS REFERENCES

The theory formulated by O’Mara (1999) is Barrett, P. and Baldry, D. (2003) Facilities manage- regarded to provide a suitable frame for inves- ment – towards best practice. Wiley-Blackwell. tigating and analyzing space strategies. The Jensen, P. A. (2004) Organisering af strategiske concept of strategic uncertainty can be used to supportfunktion i DR [Organisation of strate- explain most reasons behind and changes in gic support functions in Danish broadcasting corporation]. MBA dissertation. space strategies. It is characteristic that DR’s Jensen, P. A. (2006a) Ejendomsstrategier og bygn- space strategies mainly have been influenced ingsværdier [Property strategies and building by changes in political and technological un- values]. Research Report R-138, BYG-DTU. certainty, and the uncertainty was largest in Jensen, P. A. (2006b) Strategy and space for broad- the early years of radio and of television and casting facilities: a longitudinal case study. around the end of monopoly when uncertainty In: Haugen, T. I., Moum, A. and Bröchner, from competitors also became important. Rapid J. (eds.), Proceedings of Trondheim interna- expansion has also shown to be an important tional symposium on changing user demands on buildings - needs for lifecycle planning and factor in the 1960’s, and the political oppor- management, W070 – Facilities Management tunity and managerial desire to make major and Maintenance, Trondheim, Norway, 12-14 changes in DR are factors necessary to explain June 2006. the current relocation of DR. Jensen, P. A. (2007) Space for the digital age: de- The views on adaptability has changed fining, designing and evaluation a new world dramatically in DR from TV-byen in the 1960’s class media centre. Research Report R-175. BYG-DTU. to the present development of DR BYEN from main focus on possibility to expand, functional Jonge, H. d, Arkesteijn, M. H., den Heijer, A. C., Van de Putte, H. J. M., de Vries, J. C. and specialized buildings and flexibility in moving van der Zwart, J. (2009) Corporate real estate office walls towards less focus on the possibil- management – designing and accommodation ity of expansion and main focus on functional strategy (DAS Frame). Real Estate and Hous- integration and generality of office spaces. ing. Delft: Delft University of Technology. It is characteristic that periods with value- Joroff, M. L., Louargand, M., Lambert, S. and Beck- based strategy has involved the development er. F. (1993) Strategic management of the fifth resource. Report no. 49. Industrial Develop- of a major new building complex. Furthermore, ment Research Foundation. in each case one person has been leading the Lawaetz, J. Fr. (1951) Fjernsyn (Television). Jes- process with defining the vision and overall in- persen og Pios Forlag. Copenhagen. tentions with the development. In the 1930’s Kaplan, R. S. and Norton, D. P. (2000) Having trou- an engineer was leading the development of ble with your strategy? Then map it, Harvard Radiohuset, in the 1960’s the television direc- Business Review, September-October 2000. tor was leading the development of TV-byen Krumm, P. J. M. M., Dewulf, G. and Jonge, H. d. and recently the director general Christian (1998) Managing key resources and capabili- Nissen has been leading the development of ties: pinpointing the added value of corporate real estate management, Facilities, 16(12/13), DR BYEN. There seems to be a clear connec- pp. 372–379. doi:10.1108/02632779810235690 tion between a value-based strategy and a Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998) visionary person leading a major project as a Strategy Safari: a guided tour through the “champion”. wilds of strategic management. New York: The Free Press. Strategy and Space: a Longitudinal Case Study of Broadcasting Facilities 47

Lindholm, A. -L., Gibler, K. M., Leväinen, K. I. Porter, M. E. (1985) Competitive advantage - creat- (2006) Modelling the value adding attributes ing and sustaining superior performance. New of real estate to the wealth maximization of the York: The Free Press. firm, Journal of Real Estate Research, 28(4), Singer, B. P. (2005) Generic strategies: in the foot- pp. 445–475. steps of O’Mara. Real Estate and Housing. Nourse, H. O. and Roulac, S. E. (1993) Linking real Delft, Delft University of Technology. estate decision to corporate strategy, Journal Vries, J. C., Jonge, H. d. and Voordt, J. M. v. d. of Real Estate Research, 8(4), pp. 475–494. (2008) Impact of real estate interventions O’Mara, M. A. (1999) Strategy and place – managing on organisational performance, Journal of corporate real estate and facilities for competi- Corporate Real Estate, 10(3), pp. 208–223. tive advantage. New York: The Free Press. doi:10.1108/14630010810922094

SANTRAUKA

STRATEGIJA IR ERDVĖ: RADIJO IR TELEVIZIJOS TRANSLIAVIMO PASLAUGŲ LONGITUDINIS TYRIMAS

Per Anker Jensen

Straipsnio pagrindas – rezultatai, gauti atlikus erdvių strategijų ir vertės didinimo projekto tyrimą. Ty- rimo esmė – paslaugų, teikiamų Danijos radijo ir televizijos korporacijai (angl. The Danish Broadcasting Corporation), plėtros pagrindinė situacinė analizė. Siekiama nustatyti, kokios skirtingos erdvių strategijos buvo įgyvendintos skirtingais laikotarpiais ir kaip jos gali būti susijusios su korporacijos bendromis sąlygo- mis. Korporacijos strateginė nežinomybė tyrinėjama kaip pagrindinis ir lemiamas erdvių strategijos pokyčių veiksnys, grindžiamas strategijos ir vietos ryšių teorijomis. Anot šių teorijų, korporacijos taiko vieną iš trijų bendrų erdvių strategijų: inkrementalizmo, standartizavimo ir verte grindžiamos strategijos. Paminėtina, kad erdvių strategijos kinta tarp inkrementalizmo ir verte grindžiamų strategijų, tačiau buvo nustatytas ir vienas standartizavimo laikotarpis. Be to, yra aiškus ryšys tarp verte grindžiamų erdvių strategijų ir neko- mercinių projektų rėmėjų buvimo.