Outsourcing

It’s time to be bold!

Thursday, March 29th, 2012

Posted by: Iain Mackenzie, Head of Solutions Development, Asia Pacific

It was standing room only at this morning’s CRE 2020 workshop Partnering with Key Support Functions: Will corporate support functions integrate their cost planning?. It was clear that the discussion has moved from the architecture and mechanics of real estate to how we measure workplace productivity and its contribution to the businesses’ top line. It is great to have shifted from the tactical to the strategic.

There was good participation in the session as audience members challenged the ‘bold statements’ being put forward – some of them were not bold enough!

It will be interesting to see how this feedback manifests itself in the final CRE 2020 report when it is launched at the San Diego Summit in April.

Iain

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Introducing the ‘Integrator Model’

Wednesday, March 28th, 2012

Posted by: Darren Krakowiak, Head of Markets, Korea

As an on-the-ground provider of transactional services to multinational companies in Seoul, I learnt a great deal about an innovative way of outsourcing. The ‘Integrator Model’ has one single provider sourcing an entire suite of real estate services on behalf of an end user, while excluding itself from service delivery. It is designed to be more strategic, achieving greater consistency across multiple geographies and real estate uses.

The model provides an interesting opportunity for service providers to broaden their global platform while also potentially accessing a greater range of clients. For end users, it should also result in improved service delivery, and cost savings.

Darren

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Procurement… Here to stay!

Wednesday, March 28th, 2012

Posted by: Anne Thoraval, Head of Corporate Research, Corporate Solutions, Asia Pacific

Today’s lively session proved one point: procurement is here to stay! The debate no longer is about who, between procurement and real estate, will take the lead. Our panellists agree that CRE remains the owner, and that procurement brings in their rigor and expertise all through the project cycle.

The question now is how to play together. Four considerations seem to stand out to achieve a successful procurement and real estate collaboration:

1. The engagement of all stakeholders, each having well defined roles
2. A deep understanding of the portfolio
3. A high end vision that leaves room for flexibility
4. Proven methodologies

 It is now all about having common goals and creating value (cutting costs is so ‘old school’!).

Anne

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Vested Outsourcing: Making It Work

Wednesday, November 9th, 2011

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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What Does Innovation Mean to IFM?

Tuesday, April 20th, 2010

Chris Browne
Integrated Facility Management

What a first day! As the new head of Integrated Facility Management at Jones Lang LaSalle, I’ve had the great fortune of being able to connect—or reconnect—with many of our top Corporate Solutions executives and key clients in my first 24 hours on the job. Since everyone is talking about innovation, a lot of the discussion is about the future of facilities management. I don’t claim to have a definitive answer yet, but I do have some thoughts based on my years of experience as a corporate real estate executive and service provider.

In facility management we are often faced with two conflicting goals: minimizing cost and maximizing service quality. We’ve already reached the point where we can match the cost to the level of service delivered and vice versa. Going forward, leading FM organizations will be those that can fine-tune this equation. For instance, a client-facing space has a different service need than a back-office operation, even within the same building. The ability to calibrate service delivery to that level, especially across a large portfolio, will bring cost efficiencies that differentiate one FM operation from another.

A parallel trend is the movement toward a “command center” model, wherein building operations are managed using technology and expertise to optimize the efficiency of resources. As an example, a manager of a large portfolio naturally would like to have a top-grade engineer at each property, but the cost might not be justified. With a strong command center in place, a few top engineers can provide guidance and expertise to less-experienced (and less expensive) professionals in each building, saving significantly on cost without affecting service delivery.

Innovation is already occurring in these areas and will continue to evolve in response to client needs in this fast-moving area.

Chris

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