The Leader - May/June 2008 - (Page 29)

B ui l Din G FlexiB ilitY in to B u sin es s strate G Y: t rans Fo rMati o nal partne ri nG anD o uts o urc inG F IG. 1 outsour c inG MoD els traditional Business CRE User Client second generation outsourcing Business CRE User Client transformational partnering & outsourcing (tp&o) Business CRE User Client Innovation Outsource Innovation Outsource Supply Chain TP&O Supply Chain Supply Chain • ost-cutting from scale and C operational efficiency • Cost-cutting • Performance • Scale • Best practice • Innovation in the Supply Chain • Operational Efficiencies • Technology use • Gainshare mechanisms • usiness value from change and B business alignment • Cost-cutting • Performance • Scale • Best practice • Innovation in the Supply Chain • Operational Efficiencies • Technology use • Commercial leverage from them. The traditional services will either be delivered by the TP&O provider or more likely from an “ecosystem” of service providers who will alliance with the TP&O partnership for the period that their service is part of the offer. The essence of TP&O is such that the service provider demonstrates the skill to assemble and integrate all the services such as FM and Property Management together, and has the capability to mechanize these skillfully to drive the most cost-effective business growth. This creates a change in the business structure and a need to urgently integrate management skills. The very nature of the dynamic environment will mean that if the service provider can’t adapt or provide a service that is required, they will no longer be part of the TP&O arrangement, but the deliverer of the core elements of integration and change will be. TP&O though will place some significant challenges on both the CRE user and the supply chain. Firstly, in order for the TP&O model to be successful, it is necessary to create an allencompassing environment within the CRE user market where the primary requirement has a business focus rather than purely a property one. This will require significant stakeholder management at board level. Invariably the decision to implement TP&O will be taken at main board level. The focus for the core service that is being built within the partnership is less about traditional services and more about new services. This can pose a challenge for the supply chain as many providers often have little or no experience of this area. It becomes crucial for suppliers to become comfortable that their core business has become integrated, and this means a change in management. For example it is no longer relevant to be a specialist in one area instead, to become competitive, it is vital to become expert in the practice of integrating the various services. Interestingly this requirement could also open up the space to non-traditional competition in the face of the IT systems integrators who have got to a point where all the key ingredients are tH e le aDe r 29 MaY / j u n e 2008

Table of Contents Feed for the Digital Edition of The Leader - May/June 2008

The Leader - May/June 2008 Leadership Contents Message from the CEO Real Estate in the News Green Real Estate Work Without Boundries Building Flexibility Into the Business Strategy Multi-Generational Work-Force Design Work Force Longevity Analysis Wells Fargo's David Nelson Pennsylvania's Michael Rossman Globalization 2.0 Site Selection Consultant Directory The New York Report: A Core of Traditional and State-of-the-Art Opportunities Discovery Forum Findings Industry Tracker Young Leader Career Development Effective Leadership Economic Development in the News A Look Ahead In Our Next Issue Calendar of Seminars Index of Advertisers Executive Development Spotlight

The Leader - May/June 2008

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