S21 - PwC - final sent back to presenters

April 2014
Martin W. O’Connor – Director, Procurement
Helen Salov – Manager, Procurement
“Saddling Up: Moving
Beyond Transactional
Processes to Harness the
Strategic Value of
Partnerships”
www.pwc.com

PwC
Agenda
About PwC
Polling Questions
Case Study
Critical Success Factors
Key Take Away’s
2
April 2014“Saddling Up: Moving Beyond Transactional Processes to Harness the Strategic Value of Partnerships”.

PwC
About PwC
PwC US helps organizations and individuals create the value they are
looking for. We are a member of the PwC network of firms in 158
countries with more than 180,000 people. We are committed to
delivering quality in assurance, tax and advisory services. Tell us what
matters to you and find out more by visiting us at www.pwc.com/US.
Learn more about PwC by following us online: @PwC_LLP, YouTube,
LinkedIn, Facebook and Google +.
3

PwC
Polling Question 1
What type of transactional Facilities and Office Services does
your organization outsource today?
• Facilities Management Services
• Real Estate Brokerage
• Project Management
• Hospitality
• Records Management
• Catering and Food Services
4

PwC
Polling Question 2
How does your organization manage the supplier
relationships in Polling Question 1?
• Governance framework
• KPI’s/SLA, fees at stake
• Periodic business reviews
• Management by exception
• Wing it
5

PwC
“When you collaborate on something that is fundamentally creative,
you get to places that you would never get to on your own.”
- Comic icon John Cleese
6
The Power of Strategic Partnerships

PwC
Case Study - White Paper Objective
Redesign transactional Office Services and Records Management model
- by leveraging industry leaders with innovative solutions.
• Leverage best in-class service providers to gain increased subject
matter expertise, scalability, and advanced technologies
• Achieve greater agility in our operations model
• Capitalize on the real estate redesign to improve occupancy and
facilities management services
• Increase customer productivity by delivering a higher quality
customer experience
• Further reduce risk related to physical information protection and
client confidentiality
7

PwC
Service Bundles for Office Services and Records
Management
Document & Records Management Facilities Maintenance
• Reprographics (incl. tax processing in medium & large offices)
& binding
• Printer fleet management
• Convenience print
• Mail—USPS & accountable
• Courier/messenger services
• Office supplies & stationery
• Records management & archiving – Records Center management
• Digitizing records
• Document destruction
• Large print, print on demand
• Furniture & fixture maintenance (proactive & reactive)
• Supplemental cleaning
• Recycling & waste management coordination
• HVAC
• Painting & handyman services
• Parking maintenance
• Internal signage maintenance
• Physical security/security maintenance
• Mechanical & electrical
• Locksmith services
• Life safety
Welcome Program & Occupancy Services Leadership & Management
• Customer relationship focused
• Reception
• Switchboard
• Hoteling support (system admin, change management, policy
enforcement)
• IPP – Information Protection Principles (clear desk policy)
• Floor Hosts
• Visitor management & security badging
• Storage & hoteling locker allocations
• Room configurations
• Collaboration space maintenance
• Meeting room management & support – catering services on
request
• Local directory maintenance
• AV coordination
• Crisis management, business continuity and security operations
• Building management and landlord relationship management
• Purchasing
• Ergonomics assessment
• Oversight of local operations
• Supplier integration and management
• Budget creation and adherence
• Local occupancy strategy
• Space /occupancy management
• AP Invoice Payment Review
• MAC
• Real Estate projects & office moves
Catering & Food Services
• Canteen management • Cafes and catering
88

PwC
Outsourcing Drivers
• Non-Core
• No in-house expertise
• Marketplace expertise
• Tactical vs. Strategic
• Scalability to allow for business cycles
• Day-to-Day service delivery
• Advancement opportunities for staff
• Service delivery improvement
• Improve internal customer satisfaction
9

PwC
Approach
Understanding
the market
(innovation, capability,
fit)
current service partners
competitors
PwC business
requirements
best practice
innovation and
adaptability
business requirements
vision
future direction
voice of customer
our competitors
Benefits vs. risks
current costs
service risks
benefit/opportunities
cost of change
evaluation of alternatives
compliance/regulation
• Cross functional team
focused on managing
costs and risks and
documenting business
requirements
• RFI process to
understand market
trends and the service
provider capabilities
• Design and
implementation of new
OS and RM service
delivery model
10

PwC
Benefits of Outsourcing to a Strategic Partner
11
April 2014
• Create strategic relationships to drive continuous improvement/
innovation for shared benefits
• Provide a streamlined, flexible, scalable delivery model
• Drive consistency in service delivery
• Reduce costs
• Utilize technology to improve data and reporting
• Allows retained staff to focus on core strategic activities
• Utilize best in class providers, leading practices
• Expand the career path for OS/FM professionals
• Advancement opportunities for outsourced staff
“Saddling Up: Moving Beyond Transactional Processes to Harness the Strategic Value of Partnerships”.

PwC
Possible Risks of Outsourcing
12
April 2014
• Loss of knowledge/control over business processes
• Difficult to bring back in house
• Risk of confidentiality
• Staff turnover
• Service provider financial performance/mergers
• Disputes/litigation

PwC
Supplier Selection Process
The Art of Sourcing
• RFI/Problem Statement - White Paper
- Structured as a problem statement so as to understand the level of
innovation in the responses and leverage it into our final solution
- RFI supplier list compiled -- ~35 potential partners identified
• Resources used to identify potential service partners:
- Previous bidders, referrals, and clients
- Sourcing Interests Group (SIG)
- Institute of Supply Chain Management (ISM)
- Building Owners and Managers Association (BOMA)
- International Association of Outsourcing Professionals (IAOP)
13

PwC
Supplier Selection Process
• Collaborative Supplier Working Sessions - Critical to moving beyond
transactional model
- Hold design workshops with short listed providers
- Engagement from day one
- Both parties take ownership in the creation of a successful solution
- Understand what it is like to work with each service provider
- Taste of culture and methodology
- Quality of people delivering the services is key
14

PwC
The review team, including various Service Owners, engaged with
35 suppliers.
• Top supplier questions were:
- “What are the next steps?”
- “When do the current contracts expire?”
• A few queried PwC’s “pain points” but most failed to take the
opportunity to learn more about PwC and some struggled to relate
to PwC’s business needs.
• Many suppliers told us what they thought we wanted to hear.
• Most missed the key goals of the white paper and simply moved
back to the transactional model.
Understanding the Market
15

PwC
• Suppliers (unsurprisingly) tended to accentuate their own strengths
in their own market analysis, including promoting non-core
services.
• There were no ground-breaking bundle combinations as compared
to the bundles PwC had developed.
• PwC model of breaking out the soft services (i.e., hospitality)
appears to be market-leading.
Understanding the Market
16

PwC
Approach
Proposal
Benefits
vs.
costs
PwC
business
require-
ments
Understanding
the
market
Phase 1 - RFI
Phase 2 -
Working Session
Phase 3 -
Implementation
17
April 2014
PwC
requirements
Supplier
capabilities
Service
delivery
model
PwC / Supplier –
One team

PwC
Implementation Options
• Design & Develop as One - Immediately takes over existing
operations while redesigning workplace experience and service
architecture with PwC and later implements a second soft transition
to new paradigm.
- OR –
• Big Bang Effect - Is engaged to work through discovery and design up
front and then proposes a service architecture and cost that is
measured against current baseline spend to satisfy procurement
objectives before taking over workplace experience delivery.
18

PwC
Elements of a Successful Implementation
• Start to build relationship before the contract is signed
• Detailed, agile transition plan - break into phases
• Focus just as much time on building the relationship as you do on the
contract, KPI’s, etc … (in-person contact)
• Spend time outside the office … set dinners, luncheons, social events
to ensure your cultures align and you are both working towards the
same goals
• Communication, communication, communication - before, during
and after the contract is signed!!!!
19

PwC
Elements of a Successful Partnership
• Transparent, expect and embrace challenges together, real-time
feedback that is mutual
• Focus on areas of mutual benefit
• Work in collaboration with the partner to design the core elements of
the delivery model
• Joint focus on year-over-year efficiency, willingness to change scope
over time
• Clarity in roles/responsibilities
• Forward looking communication
• Above all, working together seamlessly beyond service boundaries
and despite ongoing change
20

PwC
Key Take Away - to Issues to Adoption
Breaking old habits – focus on fundamental change
• Change selection process
- Move away from traditional RFP
- White Paper or Problem statement
- Test and Re-test for understanding
• Focus beyond cost savings (quality, competitive advantage, and
people experience)
• Build a trust-based relationship from day one
• Eliminate supplier bashing, share success
• Culture change to joint problem solving from casting blame
• Celebrate the small successes, focus on the big goals
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Thank you
This publication has been prepared for general guidance on matters of interest only, and does
not constitute professional advice. You should not act upon the information contained in this
publication without obtaining specific professional advice. No representation or warranty
(express or implied) is given as to the accuracy or completeness of the information contained
in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its
members, employees and agents do not accept or assume any liability, responsibility or duty of
care for any consequences of you or anyone else acting, or refraining to act, in reliance on the
information contained in this publication or for any decision based on it.
© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to
PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers
International Limited, each member firm of which is a separate legal entity.

PwC
Presenter Contact Information
Martin W. O’Connor – Director, Procurement
PwC
martin.w.oconnor@us.pwc.com
(203) 539-3476
Helen Salov – Manager, Procurement
PwC
helen.salov@us.pwc.com
(203) 539-3470
23

S21 - PwC - final sent back to presenters

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