CRE Industry Future Trends and Keys to Successful Outsourcing

Transcription

1 CRE Industry Future Trends and Keys to Successful Outsourcing Introductory Presentation by Dick Palomba, President & Founder Corporate Planning Consultants, Inc Corporate Planning Consultants, Inc. Page 1

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 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 Served as leader of Programs Committee to Page 2

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??? Page 3

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 (Recognized as the leading source of research and thought leadership by CRE organizations globally.) Page 4

5 Core Components of Corporate Real Estate in 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. Page 5

6 CRE Organizational Pressures of Today Customize To Client Specs Standardize Processes Improve Service Delivery Add Services Cut Cycle Time C R E Daily Reduce Headcount & Expenses Corporate Real Estate Demonstrate Value Add Pressures & Ensure Flexibility Increase Customer Satisfaction Tighter Controls Improve Reporting Challenges Page 6

7 Industry Trends: Emergence of Outsourcing present rd Generation Outsourcing BPO All day-to-day operations directly managed by one Service Provider and RE & Facilities role is strategic. New cross functional solutions provided by major players aligned with real estate service providers Integrate Within Service Providers across silo functions, with business units, with shared services Evolution Out Task Self Perform Outsource 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 Page 7

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. Page 8

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 Page 9

10 Reasons Why Outsourcing Fails Chart Title Unclear expecta,ons - 23% Misaligned interests over,me - 15% Poor communica,ons - 11% Poor governance 13% Page 10

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 Page 11

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 Page 12

13 CHRIS HENDERSON Senior Director WPR Global Delivery Cisco Systems Corporate Real Estate Chris brings 29 years of leadership and experience as a Corporate Real Estate executive. Began at Nortel CRE in various leadership roles in Industrial Engineering and as a WPR site leader. 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. Page 13

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. Page 14

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, 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. Page 15

16 16 May, Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

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 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

18 Cisco Global Resource Optimization Organizational Re-definition Process Re-engineering 11 CONCURRENT GOALS Supply Chain Optimization 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 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

19 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 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19

20 TRUSTED LEADERSHIP ENABLING THE FUTURE GLOBAL BUSINESS MODEL CLIENT SATISFACTION SURVEY INTERNATIONAL ENGAGEMENT MODEL GLOBAL ORGANIZATION 2007 Centers of Excellence (COE) Workplace Strategies and Communications

21 Global RE&F Centers of Excellence Regional and Local RE&F Professionals 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 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 Supplier Integrator Provide global accountability of Service Delivery Industry leading processes, tools and standard metrics reporting and KPIs Best-in-Class Providers By Geography and Function Project Management, Brokerage, Integrated Facilities Management

22 Leadership & Strategy MSFT FTE 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 Service Management Global Integrator - CBRE Lease Administration Tier 1 Contract Management RE Planning RE, PM, TM Service Oversight Performance Systems Portfolio Management Infrastructure Management, Benchmarking Service Delivery Tier 1 & 2 Suppliers The Foundation Transaction Management Project Management Design and Construction Facilities Management Energy Management Food Services Employee Services Other user services

23 Questions & Answers Page 23

24 QUESTIONS/TOPICS for the Panel 1.Your Experience re: Outsourcing Evolution in past years 2.Are there Other Keys to Successful Outsourcing from Your Perspective? 3.How do small emerging companies to take advantage of outsourcing solutions? 4.Crossing the T s and Dotting the I s: Importance of Up-front Contract and Supporting Documentation. 5.Where is Outsourcing heading??? NEW OUTSOURCING MODELS Discussion of Cisco Collaboration & Microsoft Integrator Page 24