Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level. Fall 2007

Transcription

1 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level Fall 2007 CB Richard Ellis All rights reserved.

2 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level The CRM Challenge: Business Unit Alignment At a Glance Executive Summary...1 The CRM Challenge: Business Unit Alignment...2 The Evolution of CRM...2 Challenges with Current CRM Models...4 Elements of an Effective CRM Program...8 Taking CRM to the Next Level...14 Corporate real estate organizations are increasingly implementing Customer Relationship Management (CRM) programs into their organizational models to ensure alignment between the strategic direction of their company and the decisions being developed and implemented by the corporate real estate (CRE) group. But the models, tools and techniques used to support this evolving function vary, resulting in a range of CRM programs from tactical to strategic and a wide array of results. CB Richard Ellis (CBRE) recently hosted a Client Round Table event to explore the common themes and differentiators of CRE-oriented programs. CBRE also conducted a survey targeting corporate real estate directors and customer relationship managers to understand their perspective and priorities relative to the CRM function. In this paper, we examine the various CRM models in existence and their alignment with the business units (BU) and other support functions. We explore the characteristics, strengths and weakness of highly-developed CRM programs, highlighting the skill sets, tools, training and measurement techniques that are required to support these programs. Real-life customer case studies, lessons learned and practical tips and tools help reveal how corporate real estate can continue to increase the effectiveness of their CRM programs. The Evolution of CRM Developing a successful CRM program requires a little bit of art and magic. CRE Executive, financial services client CBRE has identified four models of CRM alignment, which CRE organizations typically adopt (see Figure 1). Model One CRM as CRE Point Person Model Two Program Manager Model Three Planning Manager Model Four Business Solution Partner The first CRM model represents a tactical role, with the CRM manager serving primarily as a point person for the real estate organization, charged with collecting CRE requirements and managing the resolution of space requests and service delivery issues. The Model One CRM team interacts primarily with mid-level managers, rarely interfacing with senior level executives. In the second model, CRM staff performs a Program Manager role, offering a greater understanding of demand forecasting. This role oversees the delivery of real estate services, yet it still has similar qualities as the Model One CRM, serving as the point person for mid-level managers and coordinating resources. In Models Three and Four, the CRM role evolves from tactical to strategic by CB Richard Ellis CB Richard Ellis All rights reserved.

3 Title: Fall Subtitle 2007 dedicating a greater percentage of their time to gaining business knowledge, building relationships and developing proactive solutions at the highest level of their assigned businesses. The Model Four CRM has a stake in the decision making process and serves as a business planning partner to the customer and the CRE organization. The Model Four CRM understands industry and business strategy performance metrics and effectively delegates resolution of space and operational issues in addition to performing one or more of the aforementioned roles. The strategic focus of Model Four s role elevates the CRE organization to that of an active advisor and collaborative consultant to the business units. In a recent pulse survey of 20 CRE executives conducted by CBRE, most corporate real estate directors indicated that they consider their CRM programs to fall into either Model One or Two on the continuum. Only a handful regard their CRM programs as having evolved to Model Three. No CRE director viewed their CRMs to be in Model Four status, while everyone agreed that Model Four may not be the ultimate goal for all CRE organizations. But how does corporate real estate get to a Model Four CRM program? We take a look at some of the challenges corporate real estate organizations face as well as the elements of an effective CRM program to reveal how companies can evolve from Model One to Model Four. Figure 1: Four Models of CRM Alignment The Four Models of CRM Alignment Model One CRM as CRE Point Person Model Two Program Manager Model Three Planning Partner Model Four Business Solution Partner Role CRM as CRE Point Person Role CRM as CRE Program Manager Role CRM as CRE Strategic Planner Role CRM as Strategic Advisor to BU Accountabilities Collects CRE requirements (space/operational) and coordinates CRE resources to resolve Manages resolution of space and operations issues Interacts with mid-level managers daily and senior level infrequently Challenges Balancing goals of CRE, BU and Company Effective communication between CRM and CRE groups Accountabilities Understand space needs Coordinates CRE resources Manages resolution of space and operations issues Interacts with mid-level managers daily Challenges Balancing goals of CRE, BU and company Effective communication between CRM and CRE groups Accountabilities Actively participates in annual business planning process Align CRE operations strategies with business unit strategy Understand industry, business strategy KPIs, operations ratios Effectively delegates resolution of operations issues but manages space issues Strategy/tactical ratio (70/30) Challenges Monitoring the strategic shifts within BU and making appropriate changes to CRE Strategy Accountabilities Active member of BU management committee Align CRE operations strategies with business unit strategy Understand industry, business strategy Key Performance ndicators, operations rations ratios Effectively delegates resolution of Space and operations issues Strategy/Tactical ratio (90/10) Challenges Senior Executive commitment Staff transformation Compensation budget CB Richard Ellis

4 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level Challenges with Current CRM Models Corporate real estate leaders face a host of challenges with CRM programs, most notably: Managing the disconnect between CRE and business unit goals Overcoming misalignment of roles and talent Maintaining strategic focus Anticipating growth Managing disconnect between CRE and business unit goals We want to participate more in the business planning part of the business to become more strategic. The challenge is being integrated into that planning process. CRE Executive, aerospace engineering client One key finding in the CBRE Client Round Table session was that all too often, CREs develop their CRM programs determining roles and responsibilities as well as desired characteristics of the CRM without consulting with the business units. Ironically, the CRM s role is to ensure the customer s strategy and goals are effectively translated to the real estate organization and executed upon. So why wouldn t the customer be a part of the CRM program development process? This lack of involvement can cause a misalignment between the goals and strategies of the business units and the overall delivery of real estate services. As with any key initiative, gaining input and insight from key stakeholders is a major success factor in the development of the CRM role. It is critical that CRE department understand what level of relationship the business units expect from the CRM role. CRE departments and business units can consider the four relationship levels identified in Figure 2 below: Figure 2: Levels of the CRM relationship Level 4 ADVICE Level 3 PARTNERSHIP Level 2 AVAILABILITY Level 1 ACCURACY Derived from The Gallup Organization s First, Break All the Rules: What the World s Greatest Managers Do Differently CB Richard Ellis

5 Title: Fall Subtitle 2007 Level 1: Accuracy CRM provides reliable and accurate service, ensuring no business disruption. CRMs are viewed as an effective and dependable tactical partner. Level 2: Availability CRM provides business units with everything they need; they are readily available and have the resources to support tactical delivery. Level 3: Partnership Once CRM achieves levels one and two, it can earn the status of partner with the business units. This level is attained once CRM staff gain a seat at the table and are viewed as a valuable resource. Level 4: Advice CRM ultimately achieve level four when the business units actively seek the CRM s opinion and advice as a trusted partner. CRMs can create trust by illustrating their ability to understand the operating objectives of their clients, developing strategies that help improve operating efficiency then following through with flawless execution and communication. Only once this trust is built can partnership and advice follow, evolving the CRM into the Model Three and Four levels. Overcoming misalignment of roles and talent If your CRM has those skill sets, the rest falls into place. The single most common root cause is trying to convert someone who does not have the proper skill set. CRE Executive, automotive industry client Through interviews and discussions with senior CRE executives, CBRE has discovered that many feel their CRM programs and individual CRMs lack the core capabilities required for this function. Figure 3 illustrates the optimal characteristics of a CRM, based on our recent pulse survey. Corporate real estate directors ranked 14 CRM skill sets in order of their importance. Traditionally valued corporate real estate skill sets, such as transaction management, project management, and financial analysis ranked lowest, while softer skill sets, such as communication and relationship building ranked highest. This suggests that the tide is turning when it comes to considering skill sets for the CRM role the strategic, more valuable CRM might not necessarily be the one with the real estate experience, but more so, the strong communication skills. We ve observed that CRMs who are enabled to focus on strategy share strong relationship management and communication skills. Real estate professionals with these skill sets can often navigate amongst various stakeholders, opening lines of communication and resolving tensions that can occur from a siloed structure. But moving a staff member with predominantly tactical skills into the role of strategic relationship manager, without investing in the development of the communication and relationship building skill sets, usually does not produce an effective Model Four, strategic CRM. To achieve an effective Model Three or Four CRM program, we recommend that companies evaluate their hiring process. Our client experience has shown that some of the most successful CRMs come from the business units themselves and often lack a background in corporate real estate. It is important to CB Richard Ellis

6 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level engage business unit executives during the hiring process to ensure that the desired CRM skill sets are sought after and met. This will set the relationship foundation required for the CRMs future alignment with the business units. Figure 3: CBRE CRM Survey Results Skill Sets Ranked Desired Skill Sets of a CRM 1 Communication 2 Relationship building 3 Problem solving 4 Proactivity with information and analyses 5 Negotiation 6 Business unit operating environment knowledge 7 Knowledge of corporations 8 Ability to develop business care 9 Consultative skills 10 Financial skills 11 Real estate industry knowledge 12 Project management experience 13 Technical skills 14 Transaction management experience Source: CBRE 2007 Survey, 20 Respondents Maintaining strategic focus CRMs in models one or two on the spectrum often focus on a tactical approach to real estate services. In order for the CRM program to become strategic and involved in the business planning process, the staff needs to have the ability to move away from a focus on implementation of real estate delivery. CRMs are only able to let go of these tactical implementation duties if they have reliable and highly skilled execution partners, either insourced or outsourced, so that the CRM manager can focus on building a strategic partnership with the business units. Our studies indicate that the most effective CRM team members are those that can focus on building relationships with the customer and understanding the strategy of their assigned business units. CRM success is ultimately achieved when business strategy is effectively translated into terms other CRE team members can use to develop real estate strategic plans that are aligned with the company s core business objectives. Successful CRM programs maintain a balance between the strategic capabilities that enable participation in the executive decision making process and the tactical savvy required to execute on those customer goals through real estate delivery. CB Richard Ellis

7 Title: Fall Subtitle 2007 We fight for recognition within our companies because we aren t core; we fight to be relevant; we re all outsourced to a certain degree. One emerging trend in CRE organizational models is to have two separate functions: one focused on building relationships and capturing business knowledge and the other on executing the tactical requirements associated with service delivery. This organizational model enables CRMs to align with their real estate executives, becoming more of a business planning partner, leaving the execution to the field teams. (We discuss this alternate organizational model in the next section.) The case study below reveals how one CBRE client has successfully implemented executive level CRMs, who are closely aligned with their respective business units and focused on strategic planning. CRE Executive, technology client Case Study: Client 1 Client 1 s real estate organization services five business units (BUs). In 2004 the CRE leader recognized the need to assign relationship managers to align with the five BUs. The CRE leader worked with business unit executives to understand the voice of the customer so he could staff the relationship managers appropriately, recognizing that the appropriate skill sets were needed to align with that role. The five relationship managers now physically reside with the BUs, to ensure integration with their business and understanding of their strategy. Even though they report into the CRE leader, they are accountable to their respective business unit presidents. To support the customer and avoid conflicts among business units, Client 1 launched specific initiatives and put tools in place. For example, the executives from all five BUs meet regularly to create better collective decision-making. Client 1 offers five must-have attributes of a CRM: 1. Effective Management: Don t overload and under-manage your CRM. 2. Translation: CRMs must have the ability to translate business requirements into integrated workplace solutions. They need to observe the business dynamic and develop solutions that are more comprehensive based on what the customer may need and develop qualitative frameworks to quickly see impacts of business decisions on the real estate portfolio. 3. Process Discipline: Client 1 uses Six Sigma to engage the business in fundamental restructuring/re-engineering where needed. BU s are engaged when designing integrated real estate processes; seen as business partner initiative, not as a CRE initiative. 4. Tools and Analytical Capabilities: Don t meet with an executive without a gift. Don t just talk about metrics share success stories and new, innovative ideas to achieve future successes. 5. Meet Regularly: Client 1 holds quarterly management team meetings to review performance scorecards and to demonstrate that real estate understands what the customer needs. These meetings enable the ability to translate the business dynamic and recognize where real estate can step in. CB Richard Ellis

8 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level Aligning with client s growth The CBRE Client Round Table session highlighted the fact that many CRM models struggle to stay aligned with their companies growth due in part to mergers and acquisitions. Companies that merge and acquire multiple companies typically experience a rapid growth in real estate portfolios and people. When players change and companies change, the business unit s focus can change, which makes it a challenge at times for corporate real estate to keep up. Companies must stay flexible to keep pace with the changing landscape. For example, one CBRE client s employee population doubled in the past 18 months due to three mergers. That company s challenge is to integrate its CRM with the portfolio planning process, which varies according to asset type. There isn t necessarily one model or one-size-fits-all solution for corporate real estate CRM programs. Varying models work if they have certain basic elements in place, such as well-defined organizations, communication and analysis tools, a thorough and comprehensive planning process, and the skills and training to ensure that the optimal characteristics are developed and cultivated. These elements are discussed in the next section. Elements of an Effective CRM Program Consider the organizational model: linking CRM to business unit strategy and delivery Research and discussions with corporate real estate leaders reveal common themes of successful CRM programs. The organizational model of CRE can play a pivotal role in the success of a CRM program. As discussed earlier, one of the challenges with CRM programs is that CRMs tend to be either too tactical or pulled into the tactical delivery of real estate, thereby losing focus on building the appropriate relationships necessary to understand the strategic direction of the business. Figure 4 displays a CRE model that enables a more strategic focus by the CRM team. A Program (or Project) Management Office or PMO layer in the CRE organization can help balance the strategic with the tactical. The CRE model in figure 4 also has dedicated CRM personnel that serve as the liaison between the PMO layer and the business units. This structure enables the CRM staff to focus on understanding the customer s operating objectives and identifying workplace requirements and opportunities. This deep understanding of the business units ensures that CRMs will be better positioned to effectively translate these objectives and requirements into real estate strategies that can then be implemented by the execution partners with management oversight from the PMO layer. CB Richard Ellis

9 Title: Fall Subtitle 2007 Figure 4: Program Management Office Model Enterprise Strategy BU BU BU BU Identify Requirements and Opportunities CRM CRM CRM CRM Business Orientation Real Estate Execution Develop Strategies Program Management Office (Deploys Program Managers and Project Managers) PLA TM PJM FM Total Outcome KPIs PLA KPIs TM KPIs PJM KPIs FM KPIs PLA - Portfolio and Lease Administration TM - Transaction Management PJM - Project Management FM - Facility Management KPI - Key Performance Indicator A good real estate organizational model needs to be supported by the right people, tools, and communication methods to enable a model 4 CRM program. CBRE Client 2 shares their elements of a successful CRM program in the case study below. Case Study: Client 2 Client 2, a major financial services organization, admits that maintaining a highly developed CRM model - balancing strategy with tactical - requires a little bit of art and magic. This client offers the following priorities in developing a successful CRM program. 1. Client Model: Formalize and implement structured model, an end-to-end process for how the relationship management team will interact with clients, what they will bring to the table and how they will help bring solutions to their client s business. 2. Project Execution: Leverage new tools and processes (e.g., electronic approval forms, revised business case, options analysis template) in support of improved turnaround times to clients. 3. Portfolio Strategy: Build portfolio ever-greening database and decision protocol. 4. Supplier Management: Realize benefits from new CBRE tools and processes (e.g., small project reporting, delivery governance, etc). 5. Employee Development: Implement relationship management training, inclusive of communication, negotiation and change management skill development. CB Richard Ellis

10 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level Client 2 also offers the following key lessons learned (continued): 1. Must have right people in the CRM role: It is essential to hire and put the right people in the CRM role. Expectations need to be clearly outlined as well as good communication methods. Client 2 also observes that high emotional intelligence required; generalists are better than specialists. 2. Support the CRMs with foundational tools and reporting: CRMs need to leverage the collective outputs of the CRE organization. Portfolio reporting is paramount to driving strategic conversations. 3. Bring value to the client or perish: CRMs must earn a seat at the table and bring information that the customer doesn t already have, such as innovative solutions or new or revealing data. Client 2 observes that if you re not brining value, you won t be invited back. Emphasize good communication Communication Plan Checklist: Who Know your audience; outline your stakeholders and how they like to receive information What Determine key messages; list out key messages that you need to communicate according to each stakeholder Why Indicate the purpose of the communication and the goal or desired outcome of performing that communication When Identify the frequency of the communication How Determine how the communication should be delivered, whether it s one on one, through written communication, group meeting, webinar, or other methods Communication and relationship building skills are the top two desired characteristics of CRM staff (see Figure 3, page 6). Developing those skills according to our survey along with preparing a thorough communication plan are critical to the success of the CRM program. We polled CRE directors and CRM leaders on what they think the elements of effective communication are and share these results in Figure 5. Effective communication is bi-directional. Remember to incorporate feedback mechanisms into your communication plan geared toward your key stakeholders. Understanding their perspective will enable you to customize your existing plan to your customer s preferences. Figure 5: CBRE CRM Survey Results Effective Communication Qualities of an effective communicator: Able to speak the customer s language Asks the right questions and translates that information effectively for multiple audiences Writes well and with brevity Proficient with communication tools, such as PowerPoint Can think on ones feet and improvise Is organized Understands when and how to communicate with various stakeholders Listens well 10 CB Richard Ellis

11 Title: Fall Subtitle 2007 How Can CRMs Communicate Value Creation to Customers? Many real estate organizations recognize the importance of CRMs never coming to a meeting empty handed. Below are examples of value creation opportunities that CRMs can bring to earn their seat at the table. Did You Know information regarding industry trends. Summary reports depicting high level value creation Hour-by-hour utilization studies Use the right analytical methods Communication is effective when supported by a variety of communication channels, which should be outlined in a formal communication plan. Strategic analysis and performance are effective when aided by the right business analysis methods and tools. The following methods will help take CRMs to the next level of relationship management. They will enable CRMs to become more strategic in their partnership approach, and thus, ultimately achieve the status of valued partner to the business units: 1. Analyze the Portfolio: It is of utmost importance in any real estate client relationship to understand the client portfolio. Some specific portfolio analyses that no CRM should be without include: vacancy rates, lease expiration dates, utilization rates and occupancy, as examples. 2. Perform Space Planning/Utilization Study: Understanding vacancy rates and space usage at each location is critical to making strategic space decisions. This knowledge will support the CRM s ability to be a business partner to the client. 3. Develop a Business Case: Like a good communication plan, building a business case is important when undertaking an initiative, such as alternative working environments or relocating a campus/facility. Having a business case tool template will ensure that executive managers cover the bases when determining budget, timing, and resources needed for their project. 4. Understand Demand: Determining demand is critical to forecasting future needs. Having a consistent template questionnaire for CRMs to use to understand demand will enable the CRM to make strategic decisions regarding the client portfolio. 5. Implement Effective Reporting Tools: Using effective reporting tools, such as a dashboard, enables CRE departments to consistently track and communicate updates, such as occupancy cost as a percentage of revenue. 6. Perform Industry or Internal Benchmarking: Benchmarking enables an organization to understand how space is typically utilized within the company s industry, geography and/or by asset type. When proactively adapted to a real estate portfolio, benchmarking can serve as a catalyst for change, delivering significant value to the entire organization. Put a solid process in place The disconnect between CRE and the business units can cause CRM programs to under perform, which is why it is important to incorporate the business units into the CRM organizational development process. If the business units understand the CB Richard Ellis 11

12 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level Client 1 from our first case study provides an additional example of an organization instituting an effective alignment process. Client 1 instituted a practice of having all 3 CRMs (CRE, IT and HR) meet with their internal customer at one time, so they could provide more holistic solutions, rather than just real estate centric solutions. This process was well received by the internal business units and demonstrates the critical role that CRMs play with the business units and other internal departments such as HR and IT. function and role of the CRM and participates in the development process, the result is an aligned organization with a focus on executing on the individual goals of the business units. CREs should ask probing questions to implement the best process. For example, how can we do a better job of projecting demand? What are the revenue projections and financial ratios? How can we leverage information to deliver more accurate staffing projections? By understanding information, a process and associated tools can be put in place to support strategic alignment with customers. CBRE Client 3 has put an effective process in place that ensures alignment between the customer and the real estate organization, as is described in the case study below. Case Study: Client 3 In an effort to ensure alignment between the customer and the real estate organization, Client 3 s corporate real estate division instituted a Workplace Oversight Board. The board serves as a steering committee of sorts, containing cross-functional executives who are focused on improving the way employees work. The Workplace Oversight Board ensures regular communication and idea sharing amongst all stakeholders, which will help drive changes necessary to achieve the vision of their global initiatives. The company clearly delineates the board s vision, which the board operates on the strategic level it is not a tactical decision or implementation body nor a business specific decision maker. Corporate real estate s goal is to become a trusted advisor to senior decision makers. The Workplace Oversight Board is on track to make that happen. Get the right people in the right roles As discussed earlier in this paper, the CRM role is all too often filled with existing staff whose skills and competencies might not be the best fit or who have not received sufficient training. Considering the characteristics based on research and our survey, the optimal characteristics for the role are strong communication, relationship building and problem solving skills. Real estate organizations will need to rethink the way they staff these roles and work with human resource departments to ensure the appropriate skill sets are matched. Targeted questionnaires and writing tests during the screening process can help reveal the communication and relationship building ability of the prospective candidate. Seeking input from the business units is also helpful. Real estate and industry knowledge is a plus, but the ability to build relationships, listen to and effectively communicate with customers is becoming paramount to the effectiveness of the CRM role. 12 CB Richard Ellis

13 Title: Fall Subtitle 2007 CBRE s CRM Training Program Customized training contents based on clients needs: Overview of CRM Programs Understanding the Business of your Business Consultative Skills for CRMs Strategic Planning Real World Examples CRM Case Studies Make sure CRM staff have the skills and are trained to do their job Once talent is hired and onboarded, real estate organizations can ensure that their CRMs are properly trained and have the developed skill sets to perform their jobs according to the desired CRM model. A thorough and comprehensive training program is critical to the success of the CRM program. One challenge real estate organizations face in seeking these skill sets in prospective CRMs is that communication and relationship building qualities are sometimes considered soft skills by the client often these skill sets are not valued as highly as sharp strategic analysis and business negotiation capabilities. Successful CRMs have a balance of both soft communication skills and hard analytical business skills. Communicating the importance of the desired CRM skill set to the business units is also critical to achieving the business units advocacy of incorporating those skill sets into the role. Case Study: Client 4 Walk a Mile Program Client 4 launched the Walk a Mile program to ensure alignment between their CRMs and their customers. In this program, CRM staff are expected to spend a couple of days shadowing their customers, in order to walk a mile in their shoes. The CRM team at Client 4 spend time in the customer environment, talk to people, and ask questions along the way, all in the spirit of understanding the customer s business and space planning challenges. This information helps the CRMs build the communication plan and customize the business analytical tools needed to ensure a trusted partnership is developed. Measure your performance Once an effective CRM program is in place, performance measurements must be designed and implemented to ensure continued success of the program. In order to create the appropriate performance metrics, real estate organizations need a clear understanding of the key corporate goals and the desired outcomes and behaviors of the CRM. Figure 6 below illustrates the importance of aligning real estate metrics with corporate goals and ultimately using CRE metrics that are in a language that is important and meaningful to the customer. CRE metrics can be tailored to fit the appropriate audience as long as there is an understanding of corporate goals. For example, to increase productivity, the corporate executive will likely be most concerned about administrative cost per area, as opposed to more CRE aligned metrics such as the number of transactions per transaction manager. CB Richard Ellis 13

14 Solution Exchange: Taking Real Estate Customer Relationship Management Programs to the Next Level The performance metrics that are employed will naturally change and evolve as the CRM program grows in maturity. A measure of success in a Model One or Two CRM program might be defined as zero surprises or false starts, where as a more mature CRM program might be measured by its ability to reduce real estate costs and ultimately achieve superior execution of strategic initiatives. Figure 6: Aligning CRE Performance Metrics by Audience and Corporate Goals CRE Metrics by Audience Corporate Goals Corporate Executive CRE Senior Management CRE Functional Management Service Provider Increase Productivity Administrative cost / Area (SF) Area managed / FTE Transactions / TM Project Value / PjM Properties / FM Properties / Tech Service call response time Efficient use of capital Capital commitment by Business Unit (trend/forecast) Capital pipeline by ROE Depreciation forecast Project Cost / SF Component cost / SF Taking CRM to the Next Level Whether real estate organizations are evaluating the status of already established CRM programs or designing and launching a new one, it is essential to understand the overarching goals. Does the organization want its CRM to be responsible for execution of work or be part of the strategic planning process? Garnering input from client partners is an important part of the process, so that expectations can be met and managed. To evolve from model one to model four, real estate organizations must review their own organizational models to make sure that the structure will enable achievement of desired behaviors and goals. Does the organizational model support or enable the CRM to be the strategic business planning partner real estate wants it to be? Are the right skill sets sought after during the screening and hiring process to ensure the appropriate people are brought into the organization? Is there a defined communication process supported by effective analytical tools for that CRM to perform the job? Is the CRM supported by an effective and trusted execution team? These questions that must be addressed to take the CRM role to the next level and reach the goal of becoming an effective business unit partner. 14 CB Richard Ellis

15 Title: Fall Subtitle 2007 For More Information Please Contact: Karen Ellzey Executive Managing Director, Global Client Strategies Karen Ellzey is the Executive Managing Director of CBRE s Global Client Strategies Organization. The team is organized to deliver tailored strategies to corporate real estate organizations through a core team of platform consultants, as well as through embedded, and project-based resources located all over the world. Karen brings 20 years of consulting, communications and management experience to her role. Throughout her employment with CBRE she has focused on delivering corporate real estate solutions focused on outsourcing strategies and structures, organization design, service delivery process design, and alliance management. Karen also provides program design, facilitation support, and consulting support for workplace strategy and transformation initiatives. Darcy Mackay Senior Managing Director, Global Client Strategies darcy.marckay@cbre.com Darcy Mackay, Senior Managing Director with CB Richard Ellis Global Client Strategies leads consulting engagements in the areas of corporate strategic planning and location/site selection analysis for both private- and public-sector clients. She brings a broad base of knowledge to her practice through her work with corporate occupiers as well as with developers, investors and lenders. Creating alignment between business and real estate strategy forms the core of her work with corporate occupiers. Darcy has consulted with clients throughout the United States, Canada and Europe to develop portfolio optimization strategies, select appropriate sites for expansion, and dispose of surplus properties and land. Her experience also includes work in the areas of urban redevelopment, residential development, and university housing, and spans all asset types. Julie Johnson Consulting Associate, Global Client Strategy and Development julie.johnson@cbre.com As a Consulting Associate for CBRE s Global Corporate Services Group, Julie is responsible for providing strategy to our integrated accounts. She specializes in real estate outsourcing, organizational design, customer relationship management, portfolio strategy, and corporate location strategy. Cosima Zimmerman Communications Director, Global Corporate Services cosima.zimmerman@cbre.com Cosima Zimmerman is a Communications Director with CBRE s Global Corporate Services organization in Charlotte, North Carolina. Cosima is focused on targeting clients organizational communication needs and developing and implementing customized strategies. Additional Contacts: Karen Ellzey Executive Managing Director Global Client Strategies Americas karen.ellzey@cbre.com Alan Dalgleish Executive Director CBRE Consulting Asia alan.dalgleish@cbre.com.sg John Scott Senior Director Global Corporate Services EMEA +44.(0) john.scott@cbre.com CB Richard Ellis 15

16 2007, CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.