This document provides a summary of a presentation on future trends in corporate real estate outsourcing. The presentation discusses how the corporate real estate leader's role will evolve to be more strategic and add value across the organization by 2020. It outlines key components of corporate real estate for 2020, including optimizing costs and employee productivity, measuring impacts on productivity, and partnering with other functions. The document also summarizes trends in outsourcing models, what companies want from outsourcing, reasons outsourcing fails, and latest trends like new success models and an "integrator model" used by Microsoft. Profiles of panelists from Cisco, Microsoft and CBRE are also provided.

1. CRE Industry Future Trends and
Keys to Successful Outsourcing
Introductory Presentation by
Dick Palomba, President & Founder
Corporate Planning Consultants, Inc.
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© 2013 Corporate Planning Consultants, Inc.
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2. DICK PALOMBA
Founder/President - Corporate Planning Consultants, Inc.
 Dick brings 30+ years experience & thought leadership to CRE clients in
the areas of: strategy development, operational assessments, sourcing,
RFP development, process improvement and organizational redesign.
 CPC founded in 1984 has serviced more than 60 international
corporations including: Google, Oracle, JDSU, Microsoft, PG&E, URS,
Charles Schwab and Juniper Networks.
 CORPORATE EXPERIENCE: Formerly VP/Director of CRE with Levi
Strauss & Co., Informix Software, Sybase & COLO.COM.
 Co-founded a full-service, turn-key international real estate services
company, AsiaPac International, in 2001.
 EDUCATION: BA and MEd from U Mass at Amherst and Ed D work at
University of San Francisco.
 Dick is an active member of Nor Cal IDRC/CoreNet since 1990.
Served as leader of Programs Committee - 2011 to 2012.
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3. Program Take Aways for Professional Growth
Leave Today Understanding:
 Evolution of Outsourcing
 Keys to a Successful Relationship
 Current Trends/Models
 What Role will it Play in your Career in
the Future? ? ?
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4. The Future of Corporate Real Estate in 2020
“By 2020, the corporate real estate (CRE) leader
will evolve from a subject matter specialist to a
strategic partner with a broad knowledge of
business strategies. He or she will display a
mastery of the core functions of the CRE role while
demonstrating an ability to add value to the
enterprise by identifying potential synergies and
efficiencies across the organization.
Excerpt from “The Leader” magazine – CoreNet Global publication, September 2012.
(Recognized as the leading source of research and thought leadership by CRE
organizations globally.)
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5. Core Components of Corporate Real Estate in
2020
1. Optimizing costs while driving employee productivity - design collaborative,
flexible workspaces that are adapted to the specific needs of the work force and
reinforce the organization’s culture and values.
2. Measure impact of enhancements on workplace productivity
initiatives with overall corporate strategies.
align design
3. Outsourcing and Service delivery models engrained in CRE repertoire - to
leverage increasingly strategic and collaborative relationships with supply-side
service providers to champion initiatives.
4. External service provider alignment and integration becomes more
important and necessary - internal resources are increasingly refocused on
strategic roles.
5. Partnering with key support functions (IT/HR/Sourcing) is central - for adoption
of emerging technologies and for work enablement.
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6. CRE Organizational Pressures of Today
Standardize
Processes
Improve
Improve
Service
Service
Delivery
Delivery
Customize
To Client
Specs
Reduce
Headcount
& Expenses
Add
Services
C R E
Cut
Cycle Time
Corporate
Real Estate
Demonstrate
Value Add
Daily Pressures
&
Ensure
Flexibility
Improve
Reporting
Increase
Customer
Satisfaction
Tighter
Controls
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Challenges
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7. Industry Trends: Emergence of Outsourcing
3 rd
All day-to-day operations directly
2009 - present
managed by one Service Provider
Generation
and RE & Facilities role is strategic .
Outsourcing
BPO
New cross functional solutions provided by
Evolution
2006 -2008
Integrate
2001- 2006
1995-2000
1990 - 1995
19801989
major players aligned with real estate
service providers
Outsource
Out Task
Self Perform
Within Service Providers across silo functions,
with business units, with shared services
Emergence of firms that manage out tasked
vendors or provide related services within a
single shop
Individual services like cleaning, security
One-off transactions or design work
Facility operations, cleaning, security,
food services, mail, project management,
brokerage done in-house
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8. Outsourcing Models – A Range of Options
Collaborative Alliance – Multiple Providers ensure business continuity/mitigated
risk; all use consistent processes, tools, performance measures & technology.
Strategic Alliance - Provider & Client change business paradigm to create a mutual
and competitive advantage, sharing risks and rewards.
Outsourced Partner - Performs all services for a function to the exclusions
of other providers with shared goals & Rewards.
Exclusive Provider - Performs one or more repetitive
functions under favorable terms on exclusive basis.
Preferred Provider - Provides repetitive service(s)
with favorable terms. May be one of many providers.
Service Provider - Provides discrete
contract-based service when and as needed.
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9. Industry Trends: What Companies Want
 Streamline management of vendors: less = more
 Benchmark data – thirst for more info/knowledge
 Results – clearly documented, validated
 Identify and develop potential risks/mitigation plans
 Broad geographic and/or functional integration capabilities (fully
integrated/global)
 Strategic Value - Thought Leadership to CRE
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10. Reasons Why Outsourcing Fails
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11. Latest Trends in Outsourcing
 New Models for Success
 Vested Outsourcing – (“win-win” approach for both parties)


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
Low cost not always best
Who’s the Expert Here?
Transaction vs. Managed Services Contract
In-house turf wars need to be dealt with upfront
Consistency – keep Performance Mgmt. and Transition teams throughout contract
Proper incentive-outcome-based pricing model at start
SLA’s - Measurement minutiae – reduce to 5-10 key performance indicators
Metrics are meant for adjustments/improvements or get rid of them
 Cisco’s Global Delivery Collaboration Model
 Have best Playbooks/Technology used by all Service Providers
 The “Integrator Model” – at Microsoft
 One Service Provider manages all Tier One Providers for a Fee
 RE&F – Role becomes Strategic/Planner/CRM to Internal Customers
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12. Presenting Our Distinguished Panelists
Mr. Chris Henderson, Sr. Director
Global Delivery – Cisco Systems
Mr. Brian Collins, Director
Global Workplace Strategies – Microsoft
Mr. Matt Werner , Sr. Managing Director
Global Corporate Services – C B Richard Ellis
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13. CHRIS HENDERSON – Senior Director
WPR Global Delivery – Cisco Systems Corporate Real Estate
 Chris joined Cisco in 1996 and his responsibilities included:






Research Triangle Park, NC – Program Management
San Jose, Cal - Theater Director of Services
London, UK – Director - European / Emerging Markets
San Jose, Cal. – Advance Strategies
San Jose, Cal. – Global Delivery - Leading Facilities Management, Real Estate
Transactions and Capital Projects for Global Portfolio of 22M sq. ft.
International Experience – Team Transformation; Multi Cultural Teams
Chris was born in Nuremberg, Germany and has traveled to 35 countries.
Hobbies include: Cycling (century rides); Winemaking.
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14. BRIAN COLLINS - Director of Global Workplace Strategies –
Microsoft Corporation
 Brian’s primary role is to define, communicate and implement
next generation of the Global Workplace Services Model in
Microsoft. Brian manages a set of services and resources to
support the global RE&F organization in managing its
workplace strategy and assets.
 He is responsible for Microsoft’s ‘Workplace Advantage’
program; defining and driving Global Workplace programs,
including Research, Guidelines, Knowledge Management,
Project Consulting, Lab Strategies and Operations.
 Brian has 18 years experience at Microsoft as FM Director for
Ireland, EMEA and Portfolio Manager for Central & Eastern
Europe
 Brian graduated from the Dublin Institute of Technology.
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15. MATT WERNER , Sr. Managing Director
Global Corporate Services – CB Richard Ellis
» Matt Werner brings 18 years of experience in transforming
organizations, optimizing real estate portfolios, and reducing
occupancy operating costs.
» Since 2000, Matt Werner has been responsible for CBRE Global
Corporate Services (“GCS”) business development in the
Western United States.
» He has worked to develop long-term, integrated service solutions
for several organizations, including Cisco, Microsoft, HewlettPackard, Chevron, Union Bank, and McKesson.
» Matt is a member of CORENET, and he resides in Berkeley, CA.
In 2012, he was awarded by CBRE the Trammell Crow
Master Builder Award and the LMA Partnership Award.
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16. 16 May, 2013
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© 2011 Cisco and/or its affiliates. All rights reserved.
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Cisco Confidential
16

17. Change how we manage our business
• Enhance relevance to individual businesses while maintaining Cisco
enterprise view
• Develop and build organizational competencies
• Improve productivity and employee engagement
• Create an agile & globally scalable organization
• Define role clarity and efficient alignment of resources to business
needs and performance measures
• Assign ownership and accountability for process performance
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18. Cisco Global Resource Optimization
Process
Re-engineering
11
CONCURRENT
GOALS
Organizational
Re-definition
Supply Chain
Optimization
•• Reduce variability and
Reduce variability and
achieve standard
achieve standard
outcomes worldwide
outcomes worldwide
•• Maintain or improve
Maintain or improve
quality of delivery
quality of delivery
•• Consolidate and
Consolidate and
standardize WPR
standardize WPR
technology platform
technology platform
•• Maximize portfolio
Maximize portfolio
opportunities
opportunities
•• Shift “context” tasks to
Shift “context” tasks to
partners
partners
•• Resolve project delivery
Resolve project delivery
model
model
•• Consolidate partners/
Consolidate partners/
vendors
vendors
•• Reduce partner spend to
Reduce partner spend to
achieve cost savings
achieve cost savings
•• Procure the A-Team
Procure the A-Team
•• Seamless global
Seamless global
partnership
partnership
•• Maximize sourcing process
Maximize sourcing process
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19. TRANSFORMATION
LEGACY
•Inconsistent workflow processes
• E2E process mapping and
engineering
• Inconsistent job descriptions
• Increase span of control
• Significant job and role overlaps
• Define key inter-relationships
among job roles
• Bloated organization size
• Limited performance measures
• Lack of effective governance
•Gaps between organizational
needs and workforce capabilities
• Right-size org based on strategy
and benchmarking
• Create process owners and
process governance
• Aligned roles – removed the
gaps/overlaps/ambiguity
• Gain global consistency and
standardization
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20. GLOBAL ORGANIZATION 2007
Centers of Excellence (COE) Workplace Strategies
and Communications

21. Global RE&F Centers of Excellence
Guidelines, standards and Functional Subject
Matter Experts (SMEs). Provides consultation
and development global best practices for
local adaptation and vendor governance.
•Global Resources Team
• FM, D&D, RE, ES & Technology
• SRM & Global Programs
• Communications
•Global Workplace Strategies
• Workplace Research
• Design Guidelines
• Change Management
•Global Procurement Group
• Regional and Global Sourcing
Global Supplier Integrator
• Provide global accountability
of Service Delivery
• Industry leading processes, tools and
standard metrics reporting and KPIs
Regional and Local RE&F Professionals
CLIENT
SATISFACTION
• Client Point of contact
• CRM and business strategy
• Partner (MSIT, HR, FIN, CPG)
relationships
• Understand Business Needs
• Accountability for local
plans, solutions and services
• Inform, adopt, and adapt
global COE platforms to
local needs
• Innovate new best practices
Best-in-Class Providers
• By Geography and Function
• Project Management, Brokerage,
Integrated Facilities Management

22. •
•
•
•
•
•
•
•
Business Partnering
Partnering with HR, IT, Fin, LCA, GPG
Strategic Supplier Management
RE, PM, IFM, AWS - Platform Ownership in COE
Governance
Insight & Strategic Planning
Execution accountability
Industry leadership
•
•
•
•
•
•
•
Lease Administration
Tier 1 Contract Management
RE Planning
RE, PM, TM Service Oversight
Performance Systems
Portfolio Management
Infrastructure Management, Benchmarking
•
•
•
•
•
•
•
•
Transaction Management
Project Management
Design and Construction
Facilities Management
Energy Management
Food Services
Employee Services
Other user services

23. Questions & Answers
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