Posted by:
Jim Dobleske
Corporate Solutions
Kate Vitasek has been at the forefront of supply-chain and outsourcing trends for many years, culminating in her development of the “vested outsourcing” concept. Vested outsourcing is the next generation of outsourcing, designed to create a true win-win relationship for clients and suppliers. Naturally, her CoreNet Global session was well-attended.
To a large degree, the strategic alliance model we use at Jones Lang LaSalle incorporates many vested outsourcing principles. Our business is based on long-term relationships and contracts that may be rebid, renewed without a rebid process, or terminated at any time at the client’s discretion.
Every relationship starts with the formation of key performance indicators, with financial and non-financial measures, to ensure that we win only when the client wins. If the KPIs turn out to be unfair to the client, we want to fix that as quickly as possible. If a contract were set up so that we lose money, many of our clients, I believe, would work with us to find an equitable solution. Most people seem to recognize that partnerships don’t work when one side gains at the expense of the other.
Questions from the audience in Atlanta focused on how to make these principles work. No one questions the value of vested outsourcing, but some CRE organizations are better positioned than others to implement practices that will lead to superior results. It’s not easy. But we are making it work with many of our clients, and it’s clearly the direction our industry is headed.
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Building Ties to Shared Services Partners
Sunday, April 18th, 2010Corporate Solutions
Recently, I was interviewed alongside a CRE client for EquaTerra’s blog. It served as a reminder that most business professionals engaged in outsourcing are not focused on the real estate and facilities management business. In the world of business process outsourcing (BPO), most of the big players are in information technology, human resources, legal and management consulting. When you consider the relative size of spend, corporate real estate may represent a major uptapped–or underutilized–outsourcing opportunity for many companies.
As we’ve become more involved with comprehensive outsourcing organizations like EquaTerra in recent years, we’ve found best practices in other fields that may be applicable to the real estate and facilities business. At the same time, we’ve found that outsourcing professionals in other fields are not always aware of the tremendous synergy between different BPO functions in areas such as workplace strategy, which works best when RE, IT and HR are aligned.
Strengthening ties across the shared-services platform has been a CoreNet Global theme for years, and I’m sure we’ll be hearing about it at the Summit over the next two days. As more and more companies establish shared-services models for overseeing and integrating multiple business functions (both outsourced and in-house), the opportunity to enhance value through collaboration and innovation-sharing is expanding geometrically. That’s good for our clients and our business. If IT and HR will bring the bat and mitts, we’ll prepare the field–let’s play ball!
Bryan
Posted in CoreNet Global Summit, New Orleans 2010, General comments, Outsourcing, Uncategorized | 1 Comment »