outsourcing and future skills · 2019-05-28 · prototyper / maker 5% drone manager 4% potential...

Outsourcing and Future Skills

2 April, 2019

© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. 2

Future of Work evolutionHistory

2011Opportunity emerges

from crisis

• ~500 respondents

• Following GFC, focus on cost

cutting, efficiency and getting

attention of the C-suite

2013Risks ahead

• 636 respondents

• Risks ahead due to increased demands from

C-suite and shift to global growth mode

• Biggest integrated JLL global marketing

campaign to date

2015Elevate to excellence

• 496 respondents

• Immediate need to elevate CRE

and achieve excellence beyond

traditional metrics

2018Future of Work Survey

• 561 respondents

• Focus on outsourcing, attitude toward and

adoption of technology, approaches to

innovation, the human experience

revolution, and flexible space demand

• Also covers how CRE leaders can add

more strategic value


2018 Future of Work survey Profile of participants

561survey participants

30+ countries represented

57% manage a CRE portfolio

of over 100,000

square meters

USA

94

India

61

Germany

58

UK

47

France

44

China

43

Japan

40

Spain

38

Australia

25

Rest of World

111


Industry Sector breakdown Organization size by number of employees

2018 Future of Work survey Profile of participants


CRE mandate key themes

Profitability-focused business leaders should recognize the opportunity to engage CRE as a lever to driving broader business goals:

• Traditional reporting lines are still predominant. There is a need for better alignment with other business functions—especially HR and IT-- to drive the transformation of the enterprise.

• CRE leaders outsource more highly specialized activities. They are making smarter choices about what and how they outsource activities to external partners.

• There is a need to reskill and upskill the real estate team to meet new demands from the business. Existing role profiles should be updated, and the need for new roles is emerging –particularly in the areas of data, technology, and human experience.


enterprises are leading

the future of work

Segmentation uncovers a correlation between best-in-class

CRE strategies and enhanced enterprise profitability

© 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

8

Future Fit enterprises lead the way

• Collaborate extensively with outside providers and view them

as partners.

• Make innovation a core part of service delivery.

• Create clear governance process.

• Provide incentives to motivate continuous innovation.

• Invest in sophisticated technologies and systems.

• Collaborate with C-Suite, IT, HR and other functions.

• Strategically reorganize and reskill/upskill internal CRE team.

• Proactively manage multiple service provider relationships.

Future Fit companies leverage high-performing CRE functions to drive broader business goals and

increased profitability. Utilizing CRE outsourcing in more innovative ways sets winners apart.

The Future Fit behaviours:Average profit growth over

three years:

Future Fit

All Others


Significant opportunity to add strategic value and contribute

to achieving broader business goals

CRE leaders need

to step up to


C-suite alignment is key to CRE leader success

* How do you anticipate the strength of the CRE

team’s mandate to change by 2020?

Of CRE leaders expect

mandate to be stronger or

much stronger by 2020*

Top Constraints to CRE Adding Strategic Value

In your opinion, what are the top three constraints that limit CRE's ability to add strategic value in your organization?


CRE’s collaboration with other functions is strengthening

11

What level of collaboration do you have with other business units?

+30%

+29%

+51%

+32%

+45%

% expecting more

collaboration over

the next 3 years

Future Fit

All Others

Percent of organizations that are fully

integrated on average across all functions

Level of Collaboration with Other Business Units

Excludes ‘don’t know’ responses. Bars may not total to 100% due to rounding.


Future Fit CRE leaders feel more C-Suite confidence

To what extent does your organization’s C-Suite or Executive Board believe that CRE could add value in the following areas?

% reporting ‘significant value’ add by CRE

CRE’s Perception of Where Leadership Sees Their Greatest Value-Add

Future Fit CRE leaders also

feel more empowered across

all Future of Work dimensions

52%


There is a growing tendency towards outsourcing

highly specialized activities.

is on the rise.


Today 41%of companies

outsource more

than half of their

CRE activities

Over 30%expect to increase

their CRE

outsourcing in the

next 3 years


Hanging in the balance

Top 5

outsourcedservicesTop 5

in-houseservices

Energy services

Lease administration

Facilities / property mgmt.

Transaction management

Project / construction management

Portfolio strategy

Workplace strategy

Change management

Supply chain management

Capital budget planning & mgt.


Outsourcing growth shifting to areas that reflect broader priorities

How are the following CRE activities performed in your organization?

Proportion of CRE Activities Outsourced

USA

48%

India

49%

Germany

40%

UK

49%

France

36%

China

33%

Japan

32%

Spain

29%

Australia

41%


Outsourcing landscape across key marketsWide regional variations in CRE outsourcing

% who outsource half or more of their CRE services

JLL (2018) Future of Work Survey

with 561 Real Estate Directors


Outsourcing landscape across key industriesDrivers vary in each sector

19

Technology & Comms 49%

Retail & Consumer Goods 49%

Healthcare & Pharmaceuticals 45%

Banking & Financial Services 43%

Professional Services 37%

Energy & Utilities 35%

Manufacturing & industrial 32%

% Who outsource half or more

of their CRE services

% who plan to outsource

more in next 3 years

JLL (2018) Future of

Work Survey with 561

Real Estate Directors

43%

38%

51%

33%

34%

30%

37%


Big shift in expectationsClient motivations for outsourcing are changing


Shift in client

expectations

brought about by

new imperatives

and broader

challenges

Conventional reasons

for outsourcing

New reasons

for outsourcing

Data-driven

decisions

Modernized

processes

Business

insights &

portfolio

intelligence

Traditional value

drivers losing ground

New value

drivers emerging

Technological

capabilities

Workplace

productivity

Employee

experienceInnovation &

collaborationCost-saving Labor-

arbitrageQuality

Access to

expertise


Outsourcing growth shifting to areas that reflect broader priorities

50% - Facilities/Property Management

48% - CRE Technology

44% - Energy Management

43% - Project / Construction

42% - Employee Experience

41% - Data Analytics / BI

Areas where companies

are planning greatest

outsourcing growth

% who anticipate outsourcing more

over the next three years

65% expect CRE mandate to grow in next 3 years, facing pressure to contribute to broader business goals.

JLL (2018) Future of Work Survey with 561

Real Estate Directors

New Pressures

The need for flexible, agile

workplaces is driving exponential

increase in demand. Flexible space

is set to increase from 19% of real

estate portfolios to 31% by 2020.

Big trend towards elevating the

employee experience and enabling

the workforce. A human experience

designer is the no.1 desired role in

the CRE dream team.

High appetite for digital solutions

and services. Technology is the top

investment priority for CRE leaders

in next 3 years.

Outsourcing Strategies

Technology

People Places

CRE Mandate


are needed on the CRE Team

The war for talent and digital disruption are driving the need for

new skills in data, technology and human experience


New roles needed on CRE team to maximize impact

Top 20 Roles Percent

Human experience designer 50%

Space planner 50%

Financial analyst 45%

Architect / designer 44%

Data analyst 41%

AI expert 39%

Energy consultant 38%

Health and safety manager 38%

Mobility / agility manager 32%

Transaction manager 31%

Data scientist / data architect 29%

IOT engineer 28%

Futurist / trend tracker 27%

Hospitality / ambience manager 27%

Community manager 24%

Wellbeing manager 24%

BI manager 22%

User interface architect 21%

Cyber security specialist 20%

Chief happiness officer 20%

Which of the following profiles would you want as part of your CRE dream team to make the biggest impact on your organization? Select up to 10.

Other Roles Percent

Business developer 18%

Ergonomist 17%

Digital marketing manager 16%

Influencer / Lobbyist 16%

VR engineer 13%

Blockchain specialist 13%

Robot assistant 11%

Nutritionist 10%

Transport logistician 9%

Barista / coffee maker 9%

Product manager 8%

Office pet 8%

Blogger / instagrammer / youtuber 7%

Dreamer / oracle 7%

Mathematician 6%

Hacker / programmer 6%

Prototyper / maker 5%

Drone manager 4%

Potential Roles for the CRE Team of the Future

Top 10 roles for Future Fit

Enterprises:

1. Human Experience Designer

2. Data Analyst

3. AI Expert

4. Space Planner

5. Architect/Designer

6. Financial Analyst

7. H&S Manager

8. Mobility / Agility Manager

9. IOT Engineer

10. Data Scientist / Data Architect


Ranking of top 20 profiles CRE leaders need to consider

Which of the following profiles would you want as part of your CRE dream team to make the biggest impact on your organization? Select up to 10.

BUSINESS-AS-USUAL

• Space Planner (2)

• Architect / Designer (4)

• Energy Consultant (7)

• Health and Safety Manager (8)

• Transaction Manager (10)

DATA

• Financial Analyst (3)

• Data Analyst (5)

• Data Scientist (11)

• BI Manager (17)

• Cybersecurity Specialist (19)

TECHNOLOGY

• AI Expert (6)

• IOT Engineer (12)

• Futurist (13)

• User Interface Architect (18)

HUMAN EXPERIENCE

• HX Designer (1)

• Mobility and Agility Manager (9)

• Hospitality Manager (14)

• Community Manager (15)

• Wellbeing Manager (16)

• Chief Happiness Officer (20)


CRE Mandate: Three recommendations for becoming Future Fit

Future Fit Characteristics Recommendations

Strengthen alignment with the C-Suite • Proactively bring new ideas to the C-Suite to

demonstrate CRE strategic value.

Establish strong collaboration with HR and IT • Create strong communication around common goals

such as talent attraction and retention.

• Include functional business partners proactively to

ensure visibility to CRE objectives and priorities.

Leverage outsourcing / partnering to

augment team skills

• Evaluate existing team skills against business

objectives.

• Reskill/upskill team as appropriate.

• Identify where partners can help augment the team

or provide highly specialized skills.


Upcoming Topics:

• Technology

• Human Experience

• Flexible Space

• Metrics

• Innovation

outsourcing and future skills · 2019-05-28 · prototyper / maker 5% drone manager 4% potential...

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