The Leader Magazine

SEP 2017

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F E A T U R E A R T I C L E 40 SEPTEMBER 2017 ThE lEadER Lessons learned: transforming corporate real estate into a technology-driven, agile enterprise by Michael Huaco I n 2014, McKesson acquired a majority stake in Celesio in Europe. The acquisition added international scale for McKesson, a Fortune 5 healthcare company that had operated as a North American company since its inception in 1833. Along with this acquisition came large organizational changes, one of which was my recruitment as the new McKesson Real Estate (MRE) leader, charged with helping to drive a new strategic vision for MRE and enable enterprise goals and objectives. Due to the global regulatory, demographic and cost pressures affecting the healthcare market, McKesson needed to re-evaluate how it was functioning across all areas of the enterprise, including, but not limited to, real estate. At the same time, McKesson Global Shared Services Group emerged as a governing body for all Shared Services at the company. Due to the market pressures noted earlier, the Shared Services teams were given a mandate: reduce costs across the enterprise and improve the value of services provided. This mandate would prove to be a rallying call for immediate and transformational changes. Like many organizations undergoing M&A and shifts in strategic direction, our MRE group needed to recalibrate to become an even more effi cient, cost-optimized business partner, focused on bringing continuous innovation to the McKesson workplace experience. Six elements were critical steps in this process, and are offered here to serve as a roadmap for other practitioners looking to bring about similar transformations. 1. Create a vision for the future The fi rst step for anyone who is brought in to transform and change an organization is to fully understand the current state before mapping a path forward. To accomplish this, McKesson engaged a leading management consulting fi rm to conduct an independent assessment. The goals of the assessment: • Benchmark current real estate costs and operating practices against leading practices • Uncover gaps that offer opportunities for improvement • Identify ways to reduce costs and improve customer satisfaction, service delivery, operational effi ciency, performance management, control, and technology • Drive continuous improvement and journey toward operational excellence • Develop plans, strategies and a roadmap to improve current state The assessment included interviews with key business-unit stakeholders and analyses of how MRE was leveraging its current

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