PQI - Your New Business Intelligence Platform

Transcription

1 1. Key Performance Indicators (KPIs) 2. Portfolio Qality Index (PQI) 3. Tools & Technology 4. Panel discssion PQI - Yor New Bsiness Intelligence Platform

2 Simon George Director, Corporate Real Estate Redhat Incorporated Karen Brkhart Dick Leader, Global Real Estate Eqifax Incorporated Tim Markham Sr. Director - Workplace Resorces, Travel Services & Safety IHS Incorporated 2

3 COST vs VALUE cost amont paid to obtain ( - ) vale worth or seflness ( + ) KPI PQI 3

4 3 Steps in bsiness intelligence PQI KPIs

5 3 Steps in bsiness intelligence knowledge information data & metrics KPIs $ PSF % Utilization Cost savings 55 30% precipitation Market benchmarks Performance measrement Ratios Analysis Its going to be rainy and cool Provide insight Promotes options Gamification Ftre proofing Decision spport Gidance Yo shold bring a light sweater and an mbrella 5

6 What is a Portfolio Qality Index (PQI)? technical difficlty style artistry Shifts the focs from individal Key Performance Indicators to a mlti-dimensional prioritization tool for decision spport 6

7 Steps to developing a PQI X Identify KPIs that are measrable and impactfl to the bsiness and real estate Select the KPIs that are most important to yor organization tied to bsiness performance Weight the KPIs in order of importance Score the otcome Prioritize actions 7

8 Core CRE KPIs Financial Total Occpancy Cost Cost/SF $/Seat Capex Performance Cost Savings Targets Cost as % of Revene Sales/SF Contract Vale Utilization/ Efficiency Occpancy Rate Utilization Rate SF per Employee SF per Seat Office to Workstation Ratio Warehose Utilization Prodctivity Rates Operations Criteria Transaction Qality Cycle Time Lease Flex - Trnover Rate Lease Flex - Options Lease Term Length Sbjective Rating for Lease Restrctre Cstomer Satisfaction Market Performance Sstainability Metrics X Cstomer Satisfaction Employee Satisfaction Score Sbjective Rating of Space Employee Engagement $/SF Rent Market Vacancy Rate Capitalization Rate Market Volatility Carbon Footprint Energy Efficiency Energy Conservation LEED Certification Pblic Transportation Proximity 8

9 Benchmark Data X 9

10 Sample Portfolio Benchmark Data X

11 CoreNet SPP Srvey Reslts What KPI s and metrics are important to managing yor organization? 400+ responses Size/FTE Occpancy cost / SF Prodctivity Client Satisfaction Cost Savings Workstation Density Revene SF / FTE X Occpancy Cost / Total Cost ROI Cost / % of Revene 0% 5% 10% 15% 20% 25% 30% 35% 11

12 Sample Exective Dashboard / KPIs X 12

13 Sample PQI Bilding Vacancy Rating (5%) London New York Chicago Frankfrt Utilization Rate (15%) Optimal Mid Target Stats Market Vacancy Rating (5%) Beijing Hong Kong Sbjective Rating of Space (5%) Needs Improvement Occpancy Cost PSF (25%) Singapore X San Jose Sao Paolo Mexico City Prage SF per FTE (20%) High Score Low Opportnity Mid Score Mid Opportnity % of Crrent Market Rent that or Existing Rent is Above Market (25%) Low Score High Opportnity Brisbane Paris Score & Prioritize Select KPIs & weight 13

14 0-12 Mos Mos. 24+ Months Scenario Planning Action Plans Site A Site A Leased Portfolio Qality Index Location Portfolio UTILZATION RATE Needs Improvement 50% Best-In-Class 90% SF PER SEAT Needs Improvement 200 SF Best-In-Class 150 SF Optimal Property Below Crrent Market (-15%) MARKET RISK OPTIMAL AVERAGE NEEDS IMPROVEMENT OCCUPANCY RATE Needs Improvement 55% Best-In-Class 85% 90% FACILITIES COST PSF Optimal $45.00 Best-In-Class $55.00 FACILITIES COST PER SEAT Optimal $7,750 Best-In-Class $8,000 Strategic Options No- Change Renew Re-gear Sblet Redce Expand Co-locate Relocate Terminate Action Plan A. Early terminate and relocate Early termination right allows for termination with 6 months prior notice Relocate to downsize and decrease overall obligation de to low tilization rate of 50% B. Redce and re-gear for long-term strategy Give back space to landlord Re-gear bild-ot to be more efficient C. Monitor market for opportnities Monitor trends in advance of the crrent lease s expiration date X Dispose 14

15 Horizon Action Plan 3-5 year portfolio lifecycle plan Align with capital and operational financial planning Red Revisit Hat - Core semi-annally Sites Action Plan / annally and ensre the plan is aligned with the bsiness LEASE SPACE STATUS/ SCENARIO SCENARIO CORE LOCATION EXP UTILIZATION PRIORITY ACTION OPTIONS 0-12 MONTHS MONTHS 24+ MONTHS ACTIONS TIMELINE FOR ACTION PLAN RENEW & EXPAND A Begin de diligence for immediate negotiation Site for ABC renewal option in existing space as well as immediate examination for expansion with Raycom and adjacent properties. Sydney BEIJING- RAYCOM 2013 FY2012: 76% FY2013:122% FY2014:140% FY % RENEW & CO- B LOCATE Begin de diligence for immediate negotiation for (ABC) renewal option in existing Sydney space as well asmoving non-site critical engineering fnctions (GSS) to sales office in Park View Green. RELOCATE C Initiate discssions with Engineering Planning abot expansion to 2nd tier city for potential expansion. Delhi BRISBANE 2017 Shanghai TOKYO 2014 FY2012: 91% FY2013:129% FY2014:144% FY % FY2012:103% FY2013:121% FY2014:135% FY % RENEW & EXPAND EXPAND & RELOCATE RENEW & EXPAND EXPAND & RELOCATE A B A B Analyze renewal option given the TI dollars invested in the property as well as it being an exceptional location and meets ftre expansion needs no crrent expansion options in bilding also initiate immediate expansion search for new location move GSS, Ops & IT into adjacent bilding, Location needs to accommodate ftre consolidation option when 2017 lease expires Ideal location. (ABC), Fin & Begin immediate expansion search for new location move GSS, Ops & IT into adjacent bilding, location needs to accommodate ftre consolidation option when 2017 lease expires Ideal location. Examine phased re-location strategy at end of 2017 lease, viable options near the crrent location with good incentive opportnities. Terminate lease at end of term. Bilding highly inefficient and does not accommodate ftre growth projections. Analyze renewal option depending on expansion capability within the crrent location. Monitor availability within the bilding ideally ½ floor. Examine opportnities for expansion/swing space in bldg (nothing crrently available) or adjacent to bilding to meet expansion in next months. Consider a phased move depending on location and space type. Examine phased re-location strategy at end of 2014 lease. Capex is in bdget for relocation option if needed. Look for expansion/swing space in bldg (nothing crrently available) or adjacent to bilding to meet expansion in next months. Consider a phased move depending on location and space type. Terminate lease at end of phased move depending on re-location strategy. Tokyo SINGAPORE 2014 FY2012:73% FY2013:81% FY2014:92% FY % RENEW RELOCATE A B Analyze renewal options depending on stats of ftre headcont projections and lower cost rate strctre. Polycom leaving bilding in 2012, potential option for growth. Lease expiration of De to bilding inefficiency and projected growth, examine options for space relocation. Need to confirm first right of refsal on 9th floor. RENEW & EXPAND FY2012: 70% PQI- PQI- PUNE Yor Yor New 2017 New Bsiness Intelligence Platform FY2013:78% FY2014:99% FY % RELOCATE A B Analyze renewal option depending on expansion capability within the crrent location. Examine expansion/swing space in bldg (one floor may become available) another tenant has first right of refsal. Potential for relocation of FTEs to Bangalore. In Western Office Park there are few expansion opportnities available highly soght after. Analyze phased re-location strategy at end of 2014 lease (2017 lease expiration). Discss over next 12 months right to terminate lease in 2014 (2017 lease expiration) depending on re-location 15

16 Confidential Docment This information incldes confidential data and material that may not be dplicated, sed or disclosed, in whole or in part, for any prpose other than the evalation of Colliers by the intended party, withot the prior written consent of Colliers International. October 20, 2014 QI- PQI- Yor Yor New New Bsiness Intelligence Platform