vuca outsourcing-v2-050413
TRANSCRIPT
A History of CRE outsourcing
1990s 2010s
#1• Secured FIRST
contracts• FIRST Asian corporate
to outsource• FIRST global deal • FIRST Japanese
corporate outsourcing• FIRST with HSBC
• FIRST to recognize the corporate real estate opportunity in the US
• Created Corporate Services in the 3 regions
• Largest ever domestic corporate real estate outsourcing outsidethe US
• FIRST global life sciences client out of Europe
1
2000s
#1: The VUCA world makes real estate difficult
Corporate Downsizing
High-Unemployment Global Competition
Changing Economic Landscape
Volati le
Uncertain
Chaotic
Ambiguous
VUCA
≠ VUCAVUCACRECRE
Average # of decisions per day: 612
Average duration of corporate lease:
Average # of decisions per day:6124 years
#2: #2: CRE = missed CRE = missed opportunityopportunity
12
Question: How well equipped do you feel to meet the tactical and strategic demands placed on CRE teams by the C-suite?Base: 545 respondents
#3: Outsourcing can be a better way……if we evolve.
Design
Acquire
Build
Problem solving
Human Resources
Workplace
Resource Deployment
Data Visualization
Analytics
CORE COMPETENCIES
AREAS FORGROWTH
Our future
• Projects, transactions, facilities• Cost managers
• Providing best people, best ideas in a VUCA world
Price of admission
10
Changing market dynamicsOutsourcing value curve
“Out tasking”
Full integration
Partial integration
Functional outsourcing
Benefits
IT
Organization value
Innovation
Quality
Cost savings
Efficiency
Speed
Riskmanagement
10
TransactionBased
Managed Services
Inte
rdep
ende
ntM
inim
al
Equitable Partner(e.g. Joint Venture)
“Vested” Outsourcing Relationship
Approved ProviderSimple
TransactionProvider
Preferred Provider
HighLowShared Value
* JV represents a single balance sheet
Transaction-Based Business Model
Outcome-Based Business Model
Investment-Based Business Model
Outcome-Based/ Performance-Based
Relationship
Shared Value-Based Business Model
Shared Value Based Business Model