corporate real estate trends and keys to successful outsourcing

Powerpoint Templates

CRE Industry Future Trends and

Keys to Successful Outsourcing

Introductory Presentation by

Dick Palomba, President & Founder

Corporate Planning Consultants, Inc.

© 2013 Corporate Planning Consultants, Inc.

http://www.powerpointstyles.com/


DICK PALOMBA Founder/President - Corporate Planning Consultants, Inc.

Dick brings 30+ years experience & thought leadership to CRE clients in the areas of: strategy development, operational assessments, sourcing, RFP development, process improvement and organizational redesign.

CPC founded in 1984 has serviced more than 60 international corporations including: Google, Oracle, JDSU, Microsoft, PG&E, URS, Charles Schwab and Juniper Networks.

CORPORATE EXPERIENCE: Formerly VP/Director of CRE with Levi Strauss & Co., Informix Software, Sybase & COLO.COM.

Co-founded a full-service, turn-key international real estate services company, AsiaPac International, in 2001.

EDUCATION: BA and MEd from U Mass at Amherst and Ed D work at University of San Francisco.

Dick is an active member of Nor Cal IDRC/CoreNet since 1990. Served as leader of Programs Committee - 2011 to 2012.



Program Take Aways for Professional Growth

Leave Today Understanding:

Evolution of Outsourcing

Keys to a Successful Relationship

Current Trends/Models

What Role will it Play in your Career in the Future? ? ?



“By 2020, the corporate real estate (CRE) leader will evolve from a subject matter specialist to a strategic partner with a broad knowledge of business strategies. He or she will display a mastery of the core functions of the CRE role while demonstrating an ability to add value to the enterprise by identifying potential synergies and efficiencies across the organization.

Excerpt from “The Leader” magazine – CoreNet Global publication, September 2012. (Recognized as the leading source of research and thought leadership by CRE organizations globally.)

The Future of Corporate Real Estate in 2020



Core Components of Corporate Real Estate in 2020

1. Optimizing costs while driving employee productivity - design collaborative, flexible workspaces that are adapted to the specific needs of the work force and reinforce the organization’s culture and values.

2. Measure impact of enhancements on workplace productivity align design initiatives with overall corporate strategies.

3. Outsourcing and Service delivery models engrained in CRE repertoire - to leverage increasingly strategic and collaborative relationships with supply-side service providers to champion initiatives.

4. External service provider alignment and integration becomes more important and necessary - internal resources are increasingly refocused on strategic roles.

5. Partnering with key support functions (IT/HR/Sourcing) is central - for adoption of emerging technologies and for work enablement.



CRE Organizational Pressures of Today

StandardizeProcesses

ImproveServiceDelivery Add

Services

Cut Cycle Time

DemonstrateValue Add

TighterControls

IncreaseCustomer

Satisfaction

Ensure Flexibility

Reduce Headcount & Expenses

CustomizeTo Client

Specs

Corporate Real Estate

ImproveReporting

Improve Service Delivery

C R E

Daily Pressures

& Challenges



Industry Trends: Emergence of OutsourcingEvolu

tion

Self Perform

Out Task

Outsource

Integrate

BPO

Emergence of firms that manage out taskedvendors or provide related services within a single shop

Individual services like cleaning, security One-off transactions or design work

Facility operations, cleaning, security, food services, mail, project

management,brokerage done in-house

Within Service Providers across silo functions, with business units, with shared services

New cross functional solutions provided bymajor players aligned with real estate service providers

1990 - 1995

1995-2000

2001- 2006

2006 -2008

1980-1989

3rd Generation Outsourcing

All day-to-day operations directly managed by one Service Provider and RE & Facilities role is strategic.

2009 - present



Outsourcing Models – A Range of Options

Collaborative Alliance – Multiple Providers ensure business continuity/mitigated risk; all use consistent processes, tools, performance measures & technology.

Strategic Alliance - Provider & Client change business paradigm to create a mutual and competitive advantage, sharing risks and rewards.

Outsourced Partner - Performs all services for a function to the exclusions of other providers with shared goals & Rewards.

Exclusive Provider - Performs one or more repetitive functions under favorable terms on exclusive basis.

Preferred Provider - Provides repetitive service(s) with favorable terms. May be one of many providers.

Service Provider - Provides discrete contract-based service when and as needed.



Industry Trends: What Companies Want

Streamline management of vendors: less = more

Benchmark data – thirst for more info/knowledge

Results – clearly documented, validated

Identify and develop potential risks/mitigation plans

Broad geographic and/or functional integration capabilities (fully integrated/global)

Strategic Value - Thought Leadership to CRE



Reasons Why Outsourcing Fails



Latest Trends in Outsourcing New Models for Success

Vested Outsourcing – (“win-win” approach for both parties) Low cost not always best Who’s the Expert Here? Transaction vs. Managed Services Contract In-house turf wars need to be dealt with upfront Consistency – keep Performance Mgmt. and Transition teams throughout contract Proper incentive-outcome-based pricing model at start SLA’s - Measurement minutiae – reduce to 5-10 key performance indicators Metrics are meant for adjustments/improvements or get rid of them

Cisco’s Global Delivery Collaboration Model Have best Playbooks/Technology used by all Service Providers

The “Integrator Model” – at Microsoft One Service Provider manages all Tier One Providers for a Fee RE&F – Role becomes Strategic/Planner/CRM to Internal Customers



Presenting Our Distinguished Panelists

Mr. Chris Henderson, Sr. DirectorGlobal Delivery – Cisco Systems

Mr. Brian Collins, DirectorGlobal Workplace Strategies – Microsoft

Mr. Matt Werner , Sr. Managing DirectorGlobal Corporate Services – C B Richard Ellis



CHRIS HENDERSON – Senior DirectorWPR Global Delivery – Cisco Systems Corporate Real Estate

Chris joined Cisco in 1996 and his responsibilities included: Research Triangle Park, NC – Program Management San Jose, Cal - Theater Director of Services London, UK – Director - European / Emerging Markets San Jose, Cal. – Advance Strategies San Jose, Cal. – Global Delivery - Leading Facilities Management,

Real Estate Transactions and Capital Projects for Global Portfolio of 22M sq. ft.

International Experience – Team Transformation; Multi Cultural TeamsChris was born in Nuremberg, Germany and has traveled to 35

countries.

Hobbies include: Cycling (century rides); Winemaking.



BRIAN COLLINS - Director of Global Workplace Strategies – Microsoft Corporation

Brian’s primary role is to define, communicate and implement next generation of the Global Workplace Services Model in Microsoft. Brian manages a set of services and resources to support the global RE&F organization in managing its workplace strategy and assets.

He is responsible for Microsoft’s ‘Workplace Advantage’

program; defining and driving Global Workplace programs, including Research, Guidelines, Knowledge Management, Project Consulting, Lab Strategies and Operations.

Brian has 18 years experience at Microsoft as FM Director for Ireland, EMEA and Portfolio Manager for Central & Eastern Europe

Brian graduated from the Dublin Institute of Technology.



» Matt Werner brings 18 years of experience in transforming organizations, optimizing real estate portfolios, and reducing occupancy operating costs.

» Since 2000, Matt Werner has been responsible for CBRE Global Corporate Services (“GCS”) business development in the Western United States.

» He has worked to develop long-term, integrated service solutions for several organizations, including Cisco, Microsoft, Hewlett-Packard, Chevron, Union Bank, and McKesson.

» Matt is a member of CORENET, and he resides in Berkeley, CA. In 2012, he was awarded by CBRE the Trammell Crow Master Builder Award and the LMA Partnership Award.

MATT WERNER , Sr. Managing Director Global Corporate Services – CB Richard Ellis



Change how we manage our business

• Enhance relevance to individual businesses while maintaining Cisco enterprise view

• Develop and build organizational competencies

• Improve productivity and employee engagement

• Create an agile & globally scalable organization

• Define role clarity and efficient alignment of resources to business needs and performance measures

• Assign ownership and accountability for process performance



Cisco Global Resource Optimization

11 CONCURRENT GOALS

OrganizationalRe-definition

Supply ChainOptimization

ProcessRe-engineering

• Reduce variability and achieve standard outcomes worldwide

• Maintain or improve quality of delivery

• Consolidate and standardize WPR technology platform

• Maximize portfolio opportunities

• Shift “context” tasks to partners

• Resolve project delivery model

• Consolidate partners/vendors

• Reduce partner spend to achieve cost savings

• Procure the A-Team

• Seamless global partnership

• Maximize sourcing process

• Reduce variability and achieve standard outcomes worldwide

• Maintain or improve quality of delivery

• Consolidate and standardize WPR technology platform

• Maximize portfolio opportunities

• Shift “context” tasks to partners

• Resolve project delivery model

• Consolidate partners/vendors

• Reduce partner spend to achieve cost savings

• Procure the A-Team

• Seamless global partnership

• Maximize sourcing process



LEGACY TRANSFORMATION

•Inconsistent workflow processes

• Inconsistent job descriptions

• Significant job and role overlaps

• Bloated organization size

• Limited performance measures

• Lack of effective governance

•Gaps between organizational needs and workforce capabilities

• E2E process mapping and engineering

• Increase span of control

• Define key inter-relationships among job roles

• Right-size org based on strategy and benchmarking

• Create process owners and process governance

• Aligned roles – removed the gaps/overlaps/ambiguity

• Gain global consistency and standardization


GLOBAL ORGANIZATION 2007Centers of Excellence (COE) Workplace Strategies and Communications

Global Supplier Integrator

• Provide global accountability of Service Delivery

• Industry leading processes, tools and standard metrics reporting and KPIs

• By Geography and Function • Project Management,

Brokerage, Integrated Facilities Management

Best-in-Class Providers

Regional and Local RE&F Professionals

• Client Point of contact• CRM and business strategy• Partner (MSIT, HR, FIN, CPG)

relationships• Understand Business

Needs• Accountability for local

plans, solutions and services

• Inform, adopt, and adapt global COE platforms to local needs

• Innovate new best practices

Global RE&F Centers of Excellence

Guidelines, standards and Functional Subject Matter Experts (SMEs). Provides consultation and development global best practices for local adaptation and vendor governance.•Global Resources Team

• FM, D&D, RE, ES & Technology• SRM & Global Programs• Communications

•Global Workplace Strategies• Workplace Research• Design Guidelines• Change Management

•Global Procurement Group • Regional and Global Sourcing

CLIENT SATISFACTION

• Transaction Management• Project Management• Design and Construction• Facilities Management• Energy Management• Food Services• Employee Services• Other user services

• Lease Administration• Tier 1 Contract Management• RE Planning• RE, PM, TM Service Oversight• Performance Systems • Portfolio Management• Infrastructure Management, Benchmarking

• Business Partnering • Partnering with HR, IT, Fin, LCA, GPG• Strategic Supplier Management• RE, PM, IFM, AWS - Platform Ownership in COE• Governance • Insight & Strategic Planning• Execution accountability• Industry leadership


Questions & Answers