Business Facilities - October 2008 - (Page 14)

customers or changing suppliers, while some may be negative, such as moving to escape a perceived problem—for example, the perception that the local labor market has deteriorated and no longer can meet the company’s needs. Look internally for possible causes and solutions to the problem before blaming it on your surroundings. I have worked for many companies that were ready to move, blaming their surroundings for insufficient recruiting, low retention rates, or poor labor quality issues. But after critical review, it became likely that their problem was internal—caused by poor management practices or company upheaval or even a physically unappealing working environment. Moving is time consuming, risky and costly; and most executives underestimate the cost and time involved, unless they’ve done it before. It may be the case that the problem is your surroundings and that moving to a new location is the solution, but think twice and think critically before moving to escape a problem. If the problem is internal, you may only move it with you. Jessica Hayden Senior Vice President Jones Lang LaSalle, Strategic Consulting Chicago, IL Find a qualified, third-party strategic alliance partner. Location decisions affect people across a company, and many high-level executives will bring their own perspectives to the table. With so many viewpoints, there are likely to be conflicting opinions. It is vital to the success of the company that location decisions are reached by consensus and serve corporate objectives as much as possible. To help take the emotion out of the decision, select a third-party strategic alliance partner who can focus on the quantitative factors as well as qualitative factors that align with stated corporate goals. A strong third-party adviser will ensure from the outset that all appropriate stakeholders are involved in setting and prioritizing relocation goals, and will help the company stay focused on strategies that best meet those goals. A qualified strategic partner can help you with: • Visioning and strategy • Labor modeling and migration • IRR and NPV analysis • Executive visits and analysis • Decision-making workshops and best practices • Relocation advice and dependencies On-shoring might be the best choice for your company. While off-shoring might be the current trend and best choice for some U.S.-based companies, it may not be the right choice in the long run for your firm. Businesses need to take a close look at several international factors, such as set-up costs, once-in-operation costs, transparency issues, and the political climate, before committing to a global marketplace. Additional factors influencing the decision to make the jump overseas include international wage rates, fuel costs, shipping costs, and port conjunction. Look before you leap; for any global project, make sure you’ve considered all aspects of locating off-shore, nearshore and on-shore. Communications can make or break your move. Communication is key to any corporate move. The challenge, however, often centers on what to tell and when. Done poorly, internal and external communications regarding a corporate relocation can have detrimental effects on the company, its employees and the community. Timing is critical. Before you announce your move, you can take some precautions to avoid a leak of information: • Adopt a code name • Limit the number of people who need to know • Avoid land/building searches until city selection process is complete #2005 at www.BusinessFacilities.com 14 OCTOBER 2008 http://www.embdc.org http://www.embdc.org http://www.BusinessFacilities.com

Table of Contents Feed for the Digital Edition of Business Facilities - October 2008

Business Facilities - October 2008 Contents First Word Snapshots Metro Spotlight: Phoenix, AZ Essential Relocation Tips Metro Spotlight: Fayette County, GA Corporate Moves: Kentucky Austria: Hungry for International Trade Foreign Trade Zones: Global Expansion at Reduced Cost New York is Banking on High-Tech Growth Metro Spotlight: Cuba, MO The Garden State is Growing it's City Centers Information Technology: No Signs of a Slowdown Advertiser Index Inside LiveExchange

Business Facilities - October 2008

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