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Corporate Real Estate Trends and Keys to Successful Outsourcing

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CRE Trends and Keys to Successful Outsorucing

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Corporate Real Estate Trends and Keys to Successful Outsourcing

  1. 1. CRE Industry Future Trends and Keys to Successful Outsourcing Introductory Presentation by Dick Palomba, President & Founder Corporate Planning Consultants, Inc. Powerpoint Templates © 2013 Corporate Planning Consultants, Inc. Page 1
  2. 2. 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. Powerpoint Templates Page 2
  3. 3. 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? ? ? Powerpoint Templates Page 3
  4. 4. The Future of Corporate Real Estate in 2020 “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.) Powerpoint Templates Page 4
  5. 5. 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 initiatives with overall corporate strategies. align design 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. Powerpoint Templates Page 5
  6. 6. CRE Organizational Pressures of Today Standardize Processes Improve Improve Service Service Delivery Delivery Customize To Client Specs Reduce Headcount & Expenses Add Services C R E Cut Cycle Time Corporate Real Estate Demonstrate Value Add Daily Pressures & Ensure Flexibility Improve Reporting Increase Customer Satisfaction Tighter Controls Powerpoint Templates Challenges Page 6
  7. 7. Industry Trends: Emergence of Outsourcing 3 rd All day-to-day operations directly 2009 - present managed by one Service Provider Generation and RE & Facilities role is strategic . Outsourcing BPO New cross functional solutions provided by Evolution 2006 -2008 Integrate 2001- 2006 1995-2000 1990 - 1995 19801989 major players aligned with real estate service providers Outsource Out Task Self Perform Within Service Providers across silo functions, with business units, with shared services Emergence of firms that manage out tasked vendors 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 Powerpoint Templates Page 7
  8. 8. 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. Powerpoint Templates Page 8
  9. 9. 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 Powerpoint Templates Page 9
  10. 10. Reasons Why Outsourcing Fails Powerpoint Templates Page 10
  11. 11. 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 Powerpoint Templates Page 11
  12. 12. Presenting Our Distinguished Panelists Mr. Chris Henderson, Sr. Director Global Delivery – Cisco Systems Mr. Brian Collins, Director Global Workplace Strategies – Microsoft Mr. Matt Werner , Sr. Managing Director Global Corporate Services – C B Richard Ellis Powerpoint Templates Page 12
  13. 13. CHRIS HENDERSON – Senior Director WPR 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 Teams Chris was born in Nuremberg, Germany and has traveled to 35 countries. Hobbies include: Cycling (century rides); Winemaking. Powerpoint Templates Page 13
  14. 14. 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. Powerpoint Templates Page 14
  15. 15. MATT WERNER , Sr. Managing Director Global Corporate Services – CB Richard Ellis » 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, HewlettPackard, 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. Powerpoint Templates Page 15
  16. 16. 16 May, 2013 Powerpoint Templates © 2011 Cisco and/or its affiliates. All rights reserved. Page 16 Cisco Confidential 16
  17. 17. 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 Powerpoint Templates Page 17
  18. 18. Cisco Global Resource Optimization Process Re-engineering 11 CONCURRENT GOALS Organizational Re-definition Supply Chain Optimization •• Reduce variability and Reduce variability and achieve standard achieve standard outcomes worldwide outcomes worldwide •• Maintain or improve Maintain or improve quality of delivery quality of delivery •• Consolidate and Consolidate and standardize WPR standardize WPR technology platform technology platform •• Maximize portfolio Maximize portfolio opportunities opportunities •• Shift “context” tasks to Shift “context” tasks to partners partners •• Resolve project delivery Resolve project delivery model model •• Consolidate partners/ Consolidate partners/ vendors vendors •• Reduce partner spend to Reduce partner spend to achieve cost savings achieve cost savings •• Procure the A-Team Procure the A-Team •• Seamless global Seamless global partnership partnership •• Maximize sourcing process Maximize sourcing process Powerpoint Templates Page 18
  19. 19. TRANSFORMATION LEGACY •Inconsistent workflow processes • E2E process mapping and engineering • Inconsistent job descriptions • Increase span of control • Significant job and role overlaps • Define key inter-relationships among job roles • Bloated organization size • Limited performance measures • Lack of effective governance •Gaps between organizational needs and workforce capabilities • 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 Powerpoint Templates Page 19
  20. 20. GLOBAL ORGANIZATION 2007 Centers of Excellence (COE) Workplace Strategies and Communications
  21. 21. 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 Global Supplier Integrator • Provide global accountability of Service Delivery • Industry leading processes, tools and standard metrics reporting and KPIs Regional and Local RE&F Professionals CLIENT SATISFACTION • 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 Best-in-Class Providers • By Geography and Function • Project Management, Brokerage, Integrated Facilities Management
  22. 22. • • • • • • • • 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 • • • • • • • Lease Administration Tier 1 Contract Management RE Planning RE, PM, TM Service Oversight Performance Systems Portfolio Management Infrastructure Management, Benchmarking • • • • • • • • Transaction Management Project Management Design and Construction Facilities Management Energy Management Food Services Employee Services Other user services
  23. 23. Questions & Answers Powerpoint Templates Page 23

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