State of the Industry Report 2007-2008

Chapter Nine Click here for the Corporate Perspective Click here for the Consultant Perspective Click here for the Service Provider Perspective other faCtors: • Transparency and growing focus on the “Triple Bottom Line” • Transparency through reliable data driving portfolio decisions This enables the CRE leadership role of decision support in asset management areas like portfolio, M&A’s, location decisions and emerging markets. It’s also seen increasingly through the more sophisticated use of performance metrics and key performance indicators. More granulated data is being refined and aggregated to KPI’s for corporate boards, C-Suites and business units to adapt their business plans to changing conditions. Service providers are supporting the systems and processes to do this at both the asset and portfolio levels. Some CRE departments are ahead of this curve, too. related serVICe proVIder Cases “Cre market Intelligence” from 2006 Global Innovator’s Award winner Corporate Portfolio Analytics; 2007 Global innovator’s finalist JLL for its “multi-project accountant” tool; and Johnson Controls “solutions navigator,” winner of the 2005 Global Innovator’s Award. related Corporate Cases LMC Properties’ “future View” integrated tool and Sprint’s “mosaic” platform. other related trends and Challenges • single sourced delivery of the global real estate portfolio, can it be done? • Supply chain gaps common to emerging markets, this is a related factor. • Increasingly tied to service providers’ ability to deliver mid-level talent to meet demand for the more core, now outsourced, functions. • These and other ‘scale’ issues are driving more global consolidation of service providers. ConsolIdatIon ContInues, lInes blur Major service provider consolidation is expected to continue on the global level, as seen in recent months with CBRE-Trammell Crow, UGL-Equis, and BlackstoneEquity Office, but it’s not likely to result in the ideal of a single-sourced global provider by 2010. chapter nine here’s where we are today • outsourcing of core functions like transactions, project and facility management has now expanded to higher-level functions like portfolio integration, flexible leasing and strategic planning, making the service provider a trusted advisor to the business along with the CRE executive. • The CRE department no longer exists as we knew it in another sense - that of the “solutions integrator” as foreseen by CoRE 2010. This higher-level outsourced role has come into play as service provider evolution progressed from vendor to preferred provider then to partner status. related resourCe See LEADER Magazine, September, 2006, The evolving service provider Industry: global service delivery Comes of age. • Still, there’s some debate over the levels of innovation that service providers are able to deliver across the global portfolio, according to some CRE executives and consultants. Regardless, there’s a “new order” stressing higher-level roles for service providers. State of the Industry 2007-2008 39 http://www2.corenetglobal.org/home/index.vsp http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=853724 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=853851 http://www2.corenetglobal.org/summits_events/florida_2006/reports/tuesday.vsp#mega_order http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=94574 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=94574 http://www2.corenetglobal.org/dotCMS/kcoSearch?search_type=advanced_search&keyword=keywords&search_field=performance+metrics&kwPublicationMonth=-1&kwPublicationYear=-1&assetTopicsInodes=0&assetTypesInodes=0 http://www2.corenetglobal.org/dotCMS/kcoSearch?search_type=advanced_search&keyword=keywords&search_field=kpi%2C+key+performance+indicator&kwPublicationMonth=-1&kwPublicationYear=-1 http://www2.corenetglobal.org/dotCMS/kcoSearch?search_type=advanced_search&keyword=keywords&search_field=kpi%2C+key+performance+indicator&kwPublicationMonth=-1&kwPublicationYear=-1 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=346261 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=1915962 http://www2.corenetglobal.org/learning/awards/global_innovators/2005_jci.vsp http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=346134 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=1812452 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=853675 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=853675

Table of Contents Feed for the Digital Edition of State of the Industry Report 2007-2008

State of the Industry Report 2007-2008 Contents Chapter 1: Introduction : CoRE 2010 Framework and Report Structure Chapter 2: The Changing Business Environment Chapter 3: Executive Summary of Key Findings and Conclusions Chapter 4: CoRE 2010 Adoption Rate Chapter 5: Sustainability/Corporate Social Responsibility Chapter 6: Global Sustainability Survey and Roundtable Findings Chapter 7: Workplace Practices/Work Environments Chapter 8: Workplace Related Issue: The War for Talent Chapter 9: Asset Management/Portfolio Optimization Chapter 10: Solutions Delivery Chapter 11: Location Strategies/The Strategic Role of Place Chapter 12: Location Related Issue: Site Selection Morphs to Portfolio Alignment Chapter 13: Strategic Competencies/Enterprise Leadership Skills Chapter 14: Competencies Related Issue: The War for Talent in Corporate Real Estate (CRE) Chapter 15: Integrated Resources Infrastructure Solutions – IRIS Chapter 16: Technology and the Web Chapter 17: Technology Related Issue: Removing the Obstacles to Industry Data Standards Acknowledgements and Sources

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