3. McKesson Real Estate Strategy
McKesson’s Real Estate Strategy is to fundamentally lower MCK’s facility cost structure
through a Total Cost of Ownership (TCO) approach.
Construction
CAP EX
Facility Operations – OP EX
Total Cost Of Ownership (TCO)
Total Cost Of Ownership is the cost of an asset over its useful life. Approximately 80% of the cost is in
operations according to IFMA (International Facilities Mgmt. Association)
If MCK wants a lower facilities cost
structure
Then adopting a Total Cost of Ownership approach for
savings initiatives will drive down Op Ex.
$240
$260
$280
$300
$320
$340
2013 2014 2015 2016
Goal – Fundamentally Lower Cost Structure
Lower Expense Trends – Reduce CAGR From Historical Rates
* Illustrative not real data
Acquire
Drive real
estate
acquisition
process
across
enterprise
Build
Deliver
facilities
using best
practices in
construction
Operate
Provide
global
standards,
structure
and process
for facilities
mgmt
Innovate
Develop
products or
processes
that support
our goals,
enhance
productivity
80%20%
4%
6%
2% 1%
Reduce
CAGR to
Level Below
Inflation
$296M
$317M
$321M
$326M
9. DATA GOVERNANCE
Analytics & Business Intelligence
Predictive Analytics | Risk Mitigation | Scenario Modeling|
| Capital Prioritization | Operational Analytics
Analytics & Business Intelligence
Predictive Analytics | Risk Mitigation | Scenario Modeling|
| Capital Prioritization | Operational Analytics
Integrated
Reporting &
Analytics
Integrated
Reporting &
Analytics
WHERE WE
WILL LAND
• Full Data Visibility
• Integrated Reports
• Quality Data
• One Source of Truth
• Integrated Workflow
Portfolio Management &
Lease Administration
Portfolio
Strategy
Workplace &
Occupancy
Transaction
Management
Project Management
& PMO
Facilities Management &
Accounting
Portfolio
Data
BU
Data
Occupancy
Data
Market & Transaction
Tracking Data
Capital Project
Data
CMMS, Building System
and Fin Data
11. Launch
Plan
Building
PermitDeliver
Define
Operate
NEW
E2E
PROCESS
END TO END PROCESS REVIEW
BETTER PLANS DRIVE BETTER OUTCOMES
• Vendor management
• Sustainability
• Business Operations
• Work orders
• Preventative maintenance
• Energy management
• Maintain Plan of Record
END TO END PROCESS REVIEW
Better Plans drive better outcomes – Customer Focus
Operate
• Develop 3‐year
plan
• Develop FY plan
• BU determine RE
need
• Comm. need to RE
• Review options
• Strategy
governance
• Review BU strategy
• Produce demand
forecast
• Develop action plan
• Develop viable
options
• Develop business
case & request
• Site tour
• Select site
• Approval governance
• Tour sites & RFP
• Site‐specific budget
• Evaluation, selection
• Lease negotiation
• Execution approval
• Execute lease
• Develop program w/ RE
• Review design
• High‐level oversight
• Finalize program
• Review design with BU
• Design complete
• Construction complete
• Move in
• Vendor management
• Sustainability
• Move in support
• Go live support
Define
Plan
Launch
Deliver
CLIENT VIEW RE VIEW
T
E
C
H
N
O
L
O
G
Y
12. WHAT DID WE DO
Data Governance
BUSINESS
• Enterprise wide
consistency
• Cost effectiveness
• Reliable analytics and
reporting
DATA
GOVERNANCE
• Avoid data redundancies
• Assure data consistency
• Centralize data distribution
• Create global hierarchies &
attributes
IT
• Centralized, efficient data
storage
• Improved system
integration
• Minimal data conversions
• Roles /
Responsibilities
• Policies
• Procedures
• Business Rules
• Data Usage
Awareness
• Data Context
Awareness
• Workflow
• Data Audits
• Measures /
Metrics
• Reporting
WHO, WHAT, WHEN, WHERE