State of the Industry Report 2007-2008

Chapter Thirteen • Use skills from other areas of business • Opportunity to better integrate CRE with organization by understanding where business was going • CRE first business people, second CRE professionals • To ascend to senior level, must be well rounded first Compare differences in CRE over past 20 years • 20 years ago, most people who headed CRE groups were CRE people - Negotiated transactions - The term ‘Workplace’ wasn’t in our vocabulary; it was ‘facilities’ back then - Couldn’t have end user and service provider in same room for open discussion; knowledge was proprietary - Change for the positive - People and quality greatly improved - Service providers are significantly better today at partnering and information sharing - Their corporate clients have also become more transparent out of necessity (SOX) and opportunity (outsourcing of the portfolio) - There’s an early case from years ago that a participant recalled. It involved a moving company’s concept to build strategic alliances with competitors. It was a precursor of the CRE industry’s launch into multiple service provider alliance models in the 1990’s. Cre CompetenCIes/funCtIons for end users • Sustainability (Coke has at least 40 projects for 2008; outsourced provider resource strained to deliver with other client needs) • Project management, technical knowledge • CRE – relationship management, general business acumen, project management; CRE skills provided by service provider (trusted advisor) • Credibility (GE) – centralized CRE portfolio under one group; losing partnership built over time with business units; having to rebuild these relationships difficult with key positions unfilled; combination of technical skills to manage transactions plus leadership, relationship management, negotiations skills, business knowledge. Rounded talent needed much more than technical talent. Accounting policies for CRE because of SOX, multiplies ten times with global operations. M&A transaction knowledge about CRE causes significant problems. • Large government agencies like the GSA are fighting a ‘brain drain’ with large numbers of experienced Baby Boomers retiring or going to work for service providers. ‘We’re losing people to the contractors who monitor the contractors.’ • CRE competencies/functions for service providers chapter thirteen • Competing for same people as end user • Understand the client industry / business to take client need to the field • Mirroring end users for those servicing clients; account management are the same people who end user is competing for • Same issues geographically – tough finding quality people • Capital markets attracting CRE people; now a little more flexibility with markets down (developer, investment banking, etc.) other perspeCtIVes • Skills networks – outsourcers looking for talent in India are going to other countries for the talent (Mexico, Vietnam, etc.) • Roles are converging – architecture degree with business education/skills creating larger talent pool from which to draw; young people think this way unlike middle age people; talent can work anywhere in the world; left / right brain argument actually being applied with young people • Heads of CRE for other organizations are coming from other areas of business • Of all skills required in CRE, these skills easiest to teach; Non-CRE skills hardest • Rapid implementation of outsourcing sometimes brings on staff from the client or demand side to the service provider side as a result of contractual terms • Service providers need a culture that knows how to say no and turn down work because of staff capacity. Replacing the onerous RFP process is one way to start addressing the service provider capacity issue. State of the Industry 2007-2008 54 http://www2.corenetglobal.org/home/index.vsp

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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