The Leader - March/April 2009 - (Page 44) EXECUTIVE P RO F I L E UnitedHealth Group’s Restor Johnson Health Care Services Leader Turns to Corporate Real Estate for Added Value BY RICHARD KADZIS I t’s one thing to outsource core, even more strategic, corporate real estate (CRE) and related functions to become more cost-efficient, but taking them to the level of effectiveness is entirely another matter. Ironically, the key is to develop and sustain a strong but not oversized internal CRE presence to drive the outsourced model. UnitedHealth Group is among a growing number of corporate enterprises that have learned from experience that value creation starts from within, at least where the CRE value proposition is concerned. Restor Johnson, Vice President of Real Estate Services, is the voice of experience for the Fortune 25 company’s approach to CRE and workplace asset management. With $81-billion in revenue in 2008, the company manages multiple lines of business largely surrounding the healthcare services industry and is the leader in several industry segments, especially health benefits programs. Add the pressure of industry regulation and the demand to demonstrate continuous cost containment to the current economic climate. The need to optimize the outsourcing of CRE, or any internal corporate support function, is more compelling than ever. “We’re highly leveraged with alliance partner talent to complement internal resources,” with partners like Jones Lang LaSalle, Steelcase Workplace Services and RSP Architects, Johnson says of the model branded internally as Real Estate Services. “We are leveraged at a ratio of roughly 10 outsourced alliance partner staff for each UnitedHealth Group staffer. This provides “lower cost scalability,” according to Johnson. Still, what’s strategic needs to remain inside the enterprise, as CoreNet Global research on CRE Sourcing Trends has borne out in recent months. Even with higher emphasis on outsourcing, the internal CRE team drives UnitedHealth Group’s extensive portfolio. That wasn’t the case until Johnson stepped in two years ago at UnitedHealth and advocated key changes for more effective outsourcing: a centralized CRE governance model and key attending features like internal client focus, continuous process improvement and performance management and metrics. 2 0 0 9 THE LE ADE R 44 MARCH / APRIL
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