New Global Delivery Vendor Model

Ed Folge EMEA Regional Integration Manager

Microsoft Corporation

Devices

Our Unique View: Businesses Services Software

enterprise consumer

Active Directory Enterprise Access

Live

Live

Microsoft Business Divisions

Worldwide Presence

RE&F Functions

Client requirements Market analysis Workplace strategy Portfolio strategy

Design Construct Lease Integrate

Employee services Facility operations Environmental mgmt Capital renewal

Regional and Local RE&F

Functional Subject Matter Experts Guidelines and Standards Consultation Global Best Practices Governance

Global COE

Platforms

Organization Structure

Business Operations

Global Resources

Center of Excellence

•Workplace strategy •Environmental •Capital planning •PER Governance •Vendor management •Governance •Communications •IT & Data systems •ROB management •RE & Planning Platform •IFM Platform •PM Platform •Infrastructure •Procurement Excellence

Typical sub-structure Area

Manager

Area

Manager

Area

Manager

Execution

Regional

Directors

Workplace Strategies

Portfolio Manager

Portfolio Manager

Global

Procurement

EMEA Puget Sound Americas Asia

Portfolio Manager

Transformation of Microsoft RE&F

Regional and Local RE&F Professionals • Client Point of Contact

• Greater focus on CRM, business strategy

• Partner (MSIT, HR, FIN, CPG) relationships

Global Vendor Integrator • Provide global accountability of Service Delivery

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

Best-in-Class Local Providers • By Geography and Function • Project Management, Brokerage, Integrated

Facilities Management

• Understand Business Needs

• Accountability for local plans, solutions and services

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

• Innovate new best practices

RE&F Global Business Model

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

Be more strategic, more efficient, more effective – Deliver greater value to the business

Desired Outcomes The Model

Regional and Local RE&F Teams • Less tactical oversight--More strategic engagement

• Solutions strategically aligned to business

• Spending more time on client and partner relations

• Using information to manage vendors

• Translating business needs to real estate solutions

Global Vendor Integrator – CB Richard Ellis • Consistent quality of delivery across services and geos

• More agile, flexible processes -- quicker time to market

• Remove conflict of interest opportunities

• Single accountability for local PM, Brokerage, IFM, Data, Lease Admin & Prop Mgmt. delivery

• One platform for global metrics and reporting

• Responsible for sourcing, onboarding

Integrated Facilities Management • Gain efficiencies and leverage buying power

• Services that meets local business needs

• Consistent excellence in execution

• 3-4 IFM companies contracted globally

• Maintain choice for handling performance issues

• 3 year consolidation roadmap

Project Management • Scalability and choice–Best team on day

• Streamlined selection, execution and cost

• Improved execution--On Scope, On Time, On Budget

• Stable Model: 2-3 companies in each market

• Contracts with agreed pricing terms

• New Tier 1 contracts by November

Real Estate Brokerage • Choice and quality on day of delivery

• Performance Tension and leverage via Integrator

• Stable Model – 2-3 brokers by market on bid list

• New Tier 1 contracts by November

Finance Opportunities • Reduce time spent on tactical functions related to RE&F

• Improved data driven decision making

• Move Lease admin and payment management to Integrator

• Minimize PO/Invoicing by consolidating through Integrator

• Consistent RE&F financial reporting at country/region level

Challenges

RE&F

CBRE

Tier 1 Vendors

Tier 2 Vendors

RE&F

CBRE

• Over 9,400 People

• Over 150 Leaders

• 25 +/- Core I Firms

• 1 Direction

Solution • Governance leadership framework composed of

policies, processes, and performance measures

• Define expectations, accountability, authority, and responsibility among member partners

• Including its structure, stakeholders, and relationships.

• Governing Model

• Rules of the Road

• RASCI

• ROB

• CPIs, KPIs & SLAs

• Playbooks

Integrated Governance Plan

Strategic Evaluation Team

(SET)

Partnership Board of Directors

Regional Leadership Team

Functional Leadership Team

Guiding Coalition

Governing Organization

Vendor Model Definition APM Offsite

FY09

APM feedback – What want to do and what can’t get to: More client engagement

E&Y engaged to identify help frame up the solution, client and cross regional RE&F feedback

Brought in cross group regional and COE representation to kick off and define RFP

RFP sent to market mid-March FY11, bids back April

Vendor interviews in May, selection in June

RFP for Consultants

Opportunity Analysis Recommendations

FY10

E&Y Engaged Decision to Proceed

Team Kickoff RFP & Draft Governance

H1 FY11 Q4 FY11 Q3 FY11

Q1

FY12

Implementation Timeline Select Vendor Integrator

June FY11

Integrator vendor selected June

Work with Integrator to select LOB providers by geography

Define detailed change management plan and vendor transition timelines

Based on quality of service level need by geographies and function

No change for in flight Project Delivery and Real Estate Transactions

Work with new regional B3 Integration Managers for planning transitions

Select Project Delivery and Real Estate Vendors by Geography

Program Transition Plan and Activities

Transition New Project Delivery, Real Estate Services

Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12

Selection and Transition of Facilities Mgmt Vendors by Geography

Q&A

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The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.