The Leader Magazine

SEP 2017

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ThE lEadER SEPTEMBER 2017 41 providers, the organizational structure and industry benchmarks. The assessment came back with the following observations and recommendations: 1. Create a comprehensive real estate strategy 2. Develop an organization and governance model that supports strategy 3. Create a more effective delivery and outsourcing model 4. Improve the structured engagement with business units 5. Utilize data and reporting backed by world-class technology Change is not easy in a very large, global, 185-year- old company, but our group succeeded in forging a strong partnership and shared vision with internal and external stakeholders. MRE created an initial vision in alignment with MRE guiding principles that transformed the organization. The value to the business units in this vision was framed as follows: • Reduced total real estate costs TCO (cost structure) • Improved asset quality and sustainability impact on brand • Insight into all facility costs • Standard and measurable service levels and benchmarks • Improved portfolio and business analytics • Predictive, enhanced forecasting • Increased governance and audit control • Increased focus on health and safety standards • Improved contract management 2. Create a customer-centric approach In leading the effort at McKesson, my goal was to gain an understanding of what our clients needed from MRE. An effort to solicit constructive feedback and new ideas from business- unit leaders was the fi rst phase in transforming our mission. It also proved instrumental in gaining organizational support for MRE changes to come, as the other service areas now better understood what it was that their business-unit leaders were expecting from us In general, healthcare and real estate are two disciplines that have not historically been on the leading edge of transformation, but at McKesson, MRE and CBRE were able to drive common purpose, foster teamwork and leverage subject-matter expertise to develop solutions for segmented processes, disparate data sources and underleveraged technology. Since 2014, MRE and CBRE have worked together to improve business-unit relationships, centralize facility strategy and oversight, reduce cost structures (actual and run-rate savings), implement new technologies, and drive greater business intelligence efforts. From an internal business- customer perspective, MRE has been praised for introducing the organization to new and innovative workplace environments across the offi ce portfolio, allowing the business to meet its goals of recruiting and retaining top talent. As a result, our team has become a more customer-centric business partner, recognized for driving what is now known as the Future of Work initiative at McKesson. 3. Build a culture of continuous improvement With the help of CBRE, we have established a culture of continuous improvement by phasing in new technologies and processes. Each work stream identifi ed measureable targets and outcomes while each team highlighted short- and long- term wins with achievable milestones. These milestones were recognized and reported on, which helped build trust and gain

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