The Leader - March/April 2009 - (Page 45) ‘Razor-Sharp Focus on Efficiency’ The company’s portfolio has more than 400 locations in 45 states and 22 countries and spans more than 15 million sq. ft. (1.4 million sq. m.), providing more than 70,000 seats. With hefty parameters like these to oversee, it’s not surprising to find that the otherwise outsourced CRE model is internally “centralized and integrated,” he outlined, especially considering a high volume of transactions and projects. The high activity level reflects both a 20 percent – 25 percent portfolio turnover rate and a strong expansion rate via acquisition and other forms of growth. After a period of significant portfolio growth, largely driven by acquisitions, Real Estate Services is now focused on “ “ Working effectively with business unit leaders to help them use less space is more than CRM; it’s also a key part of an ongoing culture of cost-control. portfolio optimization and cost control, he indicates. Johnson noted, “the company had a strong history of cost containment, centralized CRE and standards management,” which are one of today’s most critical enablers of gaining alignment between the enterprise and CRE. A new organizational model enabled the CRE team to adapt and evolve to meet the needs of the much larger company that UnitedHealth Group had become. Another key part of the alignment process is a well-coordinated internal client relations, or CRM, initiative. That’s why Johnson is also quick to point out that “customer focus drives activity for Real Estate Services.” CRM’s and Real Estate Services act more as internal partners to or trusted advisors for the various business units of UnitedHealth, and less as a policeman. “We need to deliver better solutions at less cost; that’s our job,” Johnson added. Working effectively with business unit leaders to help them use less space is more than CRM; it’s also a key part of an ongoing culture of cost-control. One reflection of this is UnitedHealth Group’s space efficiency relative to peer companies. UnitedHealth Group’s design density is approximately 185 sq. ft. (17 sq. m.) per person, vs. insurance industry benchmarks of 225 to 280 sq. ft. (21 to 26 sq. m.). The driver behind a push for continuous improvement is the “razor-sharp” focus on efficiency by the company. “Healthcare system costs are under the microscope,” notes Johnson. “We must contain operating costs.” 2 0 0 9 TH E LE ADE R 45 MARCH / APRIL
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