The Leader - July/August 2008 - (Page 24)

o r ga N Iz a tIoNa l desIgN : lea dI Ng practI ce coNsI de ratIoN s fo r co rp o rate re al e s ta t e changed over the years. In reviewing the state-of-the-market, it is clear that CRE/W organizations have migrated to more highly leveraged models, outsourcing large portions of the day-to-day tactical operations work to external service providers. This trend continues in a predictable pattern, in that strategic planning, portfolio management and lease administration continue to be managed mostly in-house, while transaction and site services related activities are outtasked or outsourced to an external service provider (see Figure 11). In years past, organizations leveraged service delivery models that fully relied on internal resources. As the use of external resources to support service delivery became more commonplace, corporate-toservice provider interactions transitioned from vendor agreements, to preferred supplier agreements, to strategic alliance relationships, and most recently to strategic partnerships, the nature of the relationships became more complex, strategic, and focused on the long-term. In some cases, CRE/W groups within large global organizations have proceeded down the path to outsourcing a large portion of CRE operations, only to eventually revert back to an “in-sourced” model due to a less than satisfactory experience with a highly leveraged strategic alliance or partnership. In some of these situations, the CRE/W group was not sufficiently mature in its structure and processes to effectively leverage a strategic partner relationship. In other cases, the external service provider was not sufficiently sophisticated or evolved to meet the expectations of the CRE/W group. Regardless of the reason, for every successful corporate real estate services sourcing strategy there is a partial or complete failure. The personal and professional relationship established between service providers and corporate support functions are critical to the success of any sourcing model. In fact, many would argue that the success of a real estate services outsourcing effort can be determined by the success of the often overlooked transition period. the Wrap-up aBout the authors George Bouri, MCR, SLCR, is National Practice Leader, Capital and Real Estate Transformation and Principal, Deloitte Consulting, LLP. These vignettes on organizational design considerations are meant to provide some food for thought and allow you to baseline where your organization currently stands. While not every concept is appropriate for every company, the critical common link between all these vignettes has to do with managing across the silos that often exist in CRE/W organizations. Customer experiences often “hang in the grey space” and there is a fine line between providing a great customer service experience or a generating a series of lasting complaints. At the end of the day, no organizational construct is exactly the same, but CRE/W groups should think through each model/option and solve for the one that is uniquely fit to your company and industry. As your organization operates in a more strategic manner, CRE performance management will become a reality and necessity, as opposed to just a vision. CRE/W organizations already understand their impact relative to cost management and cost reduction. As organizations evolve and better appreciate the potential impact of CRE/W relative to strategic planning, sustainability, and innovation, the CRE/W agenda will continue to migrate from being a topic of discussion in the boiler room to a key agenda item in the boardroom. Francisco J. Acoba, MCR, SLCR, is Capital and Real Estate Transformation Senior Manager, Deloitte Consulting, LLP. Pay Wu is Capital and Real Estate Transformation Senior Manager, Deloitte Consulting, LLP. For more information on this topic, go to CoreNet Global’s Knowledge Center Online. CRE Trends in Organization Structure http://www2.corenetglobal.org/dotCMS/ kcoAsset?assetInode=1307250 Designing the Optimal Corporate Real Estate Organization http://www2.corenetglobal.org/dotCMS/ kcoAsset?assetInode=41112 the le ade r 24 J u ly / a u g u s t http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=1307250 http://www2.corenetglobal.org/dotCMS/kcoAsset?assetInode=41112

Table of Contents Feed for the Digital Edition of The Leader - July/August 2008

The Leader - July/August 2008 Leadership Contents Message from the CEO Real Estate in the News Organizational Design Accommodating Growth Responding to the Challenge EMEA's Building Energy Rating TVA's Shortcut to Success ANZ Banking Group’s Jane Hamilton Tractus Asia’s Dennis Messeroll Arizona’s Greg Weiner Workplace Design Workplace Directory The Texas Report Industry Tracker Discovery Forum Findings Career Development Congratulations to 2008 Corenet Global Award Winners! Young Leader Economic Development in the News Connect with Corenet Global A Look Ahead

The Leader - July/August 2008

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