With the Summit behind us, we’re all refocusing on our clients and trying to implement the kinds of ideas and innovations we heard about and shared in Atlanta. I was pleased at the warm response to our newly launched IntelliCommand  remote facility monitoring and control system—we’re glad that our clients find it as innovative as we think it is. As I wrap up our CoreNet blog until the Singapore Summit next March, I’m glad to have met some new people, gained some fresh insights, and most important, strengthened some long-term relationships, reinforcing CoreNet’s theme of social dynamics and connectivity.

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.

Posted by:
Blake Layda
Corporate Solutions

CoreNet Global’s Corporate Real Estate 2020 project has major significance to our industry today. Look back at the similar 2010 project a decade ago, and you’ll see the beginnings of trends that today shape our industry–such as the impact of mobile technology on the workplace and the increasing alignment of CRE strategies with corporate financial goals.

CRE 2020 is another attempt to see the future of corporate real estate.  What form will sustainability initiatives take 10 years from now? Will facilities and real estate outsourcing become a form of Business Process Outsourcing (BPO) led by procurement teams rather than CRE directors?  If mobile devices and cloud computing become business standards, what will be the effect on the workplace?

The Corporate Real Estate 2020 team doesn’t have the answers—yet. But some of the brightest and most forward-thinking minds in our industry are working together on a multi-project to get answers. A workshop to discuss key trends is taking place on both days of the Atlanta Summit.

At Tuesday’s event, I’ll be moderating a discussion on service delivery and outsourcing, to consider ways that CRE and service providers will seek to operate seamlessly across multiple shared services and in global markets. Three other discussions on equally compelling topics will take place simultaneously. So if one conversation doesn’t intrigue you, chances are another one will.

Posted by:
Steve Jones
Project and Development Services

When you’ve been leading national multi-site project management teams as long as I have, you get used to handling a wide range of assignments.  From simultaneous renovation of dozens of retail outlets to equipment installation at tens of thousands of sites, we’ve handled it all.

Sometimes speed is the key factor, such as the time we changed signage at thousands of retail locations literally overnight following a merger of two national chains. Sometimes the challenge lies in managing complexity, like the time we surveyed thousands of uniquely designed food-service outlets for ways to install ovens in each one, with real-time status reports from each location to ensure new menu items coincided with a media blitz in each city.

This year, a major focus has been on portfolio audits to ensure compliance with the Americans with Disabilities Act as new ADA rules take effect in 2012. And another assignment under way involves building out 2,000 store locations in five Latin American countries as part of our turnkey brand management practice.

The sites may range from retail locations to cell towers to bank branches, but whatever form they take, they help clients overcome portfolio-sized challenges with leading-edge technology and a distributed network of project managers to handle dispersed projects with a high degree of consistency, efficiency and transparency.

The only thing constant is change itself. In times of incredible change and volatility, there is a need to build resilience into one’s organization. Companies that innovate successfully have two common traits:  accountability at all levels of the organization,  and willingness to raise their game with a lot of singles and doubles rather than focusing on home runs.

As worldwide population crosses 7 billion and shows no sign of slowing down, we’re seeing new trends that will shape our world, such as the growth of new megacities and the population migration in human history from rural to urban areas.  The population increase is fueled by huge growth rates in places such as Africa, which is expected to double in population, compared to shrinking population in Japan and some other First World countries.

Another reason population is rising is that people are living longer. This impact is being felt on the labor front, where veteran workers are continuing to work beyond traditional retirement age.  The labor pool is also becoming more diverse by age, race and gender, creating new social dynamics in the workplace.

Innovation, particularly driven by the Internet and worker mobility, is opening up markets in areas South and East of traditional European business centers. Today one can get healthcare, automobiles and technology in India at a fraction of the cost of European and American markets. As more people in India and other rising markets gain access to technology, the world could see innovation flowing from those countries back to countries that have been at the forefront of discovery for centuries.

Wherever innovation starts,  it’s important that we leverage social and business networks efficiently to help it grow. Business leaders should focus on the quality of information exchange rather than the quantity. And it’s not all about mobile communication – a well-designed workplace continues to be a tremendous way to enable collaboration and productivity.

People often compare the economies of India and China, the world’s two most populous countries and also engines of economic growth. While China may seem to have stronger growth and prospects than India, the reality is not so clear-cut.

Comparing India’s true democratic government with China’s blend of capitalism and communism is like apples and oranges in some ways. China’s unopposed government enables quick, decisive action to leverage global business opportunities and create a world-class infrastructure—areas where India’s government of checks and balances hinders global competitiveness.

However, India may emerge as a stronger long-term player than China. By 2030, India will have 800 million workers with more than 590 people located in cities and per-capita income that is expected to increase 200 percent over the next two decades.

India has world’s largest pool of educated, English-speaking workers, and attracts jobs from service-oriented companies seeking talented knowledge workers—such as the IT, IT Enabled Services, Education and Banking industries. Wages for those jobs are low by Western standards but allow a much better standard of living than the cheap-labor jobs that typically go to China.

Greater disposable income, plus a political structure that protects businesses and workers from unfair government intervention, help to raise India’s level of “domestic consumption.”  That makes India attractive to global companies as a market for their products and services, whereas China is seen mainly as source of cheap labor for exports. If Chinese workers raise their level of domestic consumption, eventually they will not be the world’s cheapest labor pool, and global companies will move some manufacturing operations to other countries.

Also, India’s political system is more suited for long-term equity investments, while China attracts short-term investors. China may see stronger GDP growth in the next few years, but India’s economy is more likely to see dynamic growth sustained over the long term.

CREs and facilities teams are facing greater pressure than ever to reduce costs—and in the wake of the recession, they are already running pretty lean.  We need new ways to drive out costs without sacrificing service or taking on more risk. 

Smart technology has the potential to be a powerful tool for reaching new levels of efficiency and aggressively managing costs and risk. But in the past, it was just too expensive to implement.

This week at the CoreNet Global Summit in Atlanta, we are launching a new service: IntelliCommand.  IntelliCommand integrates cloud-based, smart technology from Pacific Controls, with Jones Lang LaSalle’s facility management platform to provide 24/7 remote monitoring and control of buildings.

The firm is piloting this new service and beta testing it with one of the world’s largest manufacturing companies. Within just six weeks of going live at a building we are seeing significant efficiency gains.  Our initial analysis is predicting payback in 18 to 24 months and we anticipate up to 18 percent in energy savings.

To hear more, come by the Jones Lang LaSalle Social Networking Point near CoreNet registration.  Or check out our landing page, where you can:

• Benchmark your energy use
• Watch a video about the benefits
• See how it works

Posted by:
Katie Sershon
Public Relations

You don’t want to miss “Social Dynamics, CRE and Social Media – A Live Worldwide Discussion” of social media’s impact on the CRE business Tuesday November 8, at 2:45 pm Eastern. Thanks to the magic of Twitter, you can participate even if you’re half a world away from Atlanta by following #CNGAtlanta.

Social media has changed the way the world communicates and interacts. It’s important for commercial real estate executives to understand these channels as a platform for internal and external communications with clients, colleagues, friends and industry leaders.

Our live worldwide discussion is a great example of integrating social media with our business. We’ll weave a tweetchat into a traditional panel of industry experts, giving audience members and Twitter followers the opportunity to join the conversation in real-time, or get the highlights later, by reading the Twitter feed at #CNGAtlanta. If you are attending CoreNet, and want to join the session stop by the Jones Lang LaSalle Social Networking Point (across from registration) Tuesday morning and we’ll get you connected.

COME TO THE SESSION:
Session date:   Tuesday, 11/8/11
Session time:  2:45 to 3:30 p.m.
Location:  Georgia World Congress Center Building C ROOM # C201

JOIN THE CHAT:
1. Go to http://tweetchat.com/room/CNGAtlanta
2. Sign into your personal Twitter account by clicking “Sign In Button”
3. Click “Authorize this App”
4. Begin tweeting

FOLLOW THE EXPERTS:
Questions: @JLLNews – Jones Lang LaSalle
Moderator: @CoreNetGlobal – Bailey Webb
Speakers:
 @almcgint – Alan McGinty
 @dukelong – Duke Long  
 @JoeBrady3 – Joe Brady
 @LegacyUS – Michael Dow 
 @rich_jordan – Rich Jordan

As Dan Probst wrote earlier, our new book Six Sigma for Sustainability shows executives how they can apply work-process improvement strategies to jump-start their sustainability programs.

Many companies are engaged in sustainability at the tactical level, but embedding these concepts into the corporate culture requires holistic approach that brings together all the players within the firm into a collaborative management model.

When all the right people are engaged, Six Sigma becomes the vehicle for leaders to identify the “transfer function,”  the critical few activities that, done well, will meet or exceed the expectations of customers and other key stakeholders. Deploying those strategies in alignment with all the business units and support functions that contribute to a sustainability program creates a “house of quality” that leads to breakthrough success.

I’ve seen Six Sigma used to enhance many types of business processes, but none are better suited than sustainability to Six Sigma’s DMAIC model – Define, Measure, Analyze, Improve Control. Sustainability is a recent concept for virtual every company, yet it is a differentiator and key driver of long-term success when it is woven into the corporate fabric. Six Sigma provides the tools to help you get there.

Posted by:
Eric Stavriotis
Strategic Consulting

Economic downturns are tough on everyone, but this one has been doubly difficult for economic development commissions. One challenge is that most companies are not experiencing the kind of dynamic growth that allows expansion into new markets, and the few that are may expect more help from EDCs today than in the past.

The other problem is that many cities and states are more cash-strapped than ever. In looking for ways to reduce costs and increase tax revenue, economic authorities may not want to risk angering residents by giving big tax breaks to attract and retain companies. And some state and local governments have reached the limit of their capacity to raise money by issuing bonds.

Yet, there are industry sectors such as cleantech and healthcare where companies have expansion requirements, and some existing companies with expiring incentives are considering relocation if they can’t get continued public-sector support. EDCs need to pick their targets carefully and be creative in crafting incentive packages that will add, or at least maintain, jobs in their areas without pushing taxes or deficits too high.

Ohio has done a good job of walking that tightrope. Come to our CoreNet Global Forum session on Monday entitled “How to Make State and Local Incentives Work for Business” to get the latest on win-win strategies for businesses and communities.