The Leader Magazine

SEP 2017

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F E A T U R E A R T I C L E 42 SEPTEMBER 2017 ThE lEadER organizational buy-in. In addition, a robust communication plan – which included identifying key stakeholders, key messages and timing – was developed to foster a culture of change and improvement. A dedicated CBRE communications manager provided us and the larger business-unit stakeholder community with timely two-way communications about changes affecting people, processes and technology; updates on key initiatives; and answers to questions and concerns. Along with instilling the organization with processes that improved accountability and communications, McKesson and CBRE worked to establish the right governance structure to support effi cient, quality decision-making and drive success through implementation. The McKesson leadership team ensured the Shared Services Committee reviewed and approved the progress of every component of the transformation, regardless of size. This governing body enabled greater visibility, accountability and acknowledgment for all improvement efforts. 4. Defi ne metrics and measure success Equipped with a vision and a good understanding of our baseline, our MRE team defi ned the critical success factors and associated KPIs to quantitatively assess our effectiveness and contribution to the McKesson organization. A defi ned strategic plan allowed us to effectively communicate the value we were delivering to the McKesson business and all related stakeholders (employees, customers and shareholders). McKesson's critical success factors included: • Fundamentally improving enterprise cost structure • Improving products and services, lowering cost, and improving facility quality through a TCO model • Being viewed as a strategic partner at the table with business units; moving up the value pyramid • Developing capabilities for real-time data and analytics, measurement and benchmarking, and business intelligence • Having a well-defi ned sustainability program (LEED, energy management, recycle programs) • Simplifying and standardizing processes with industry-level KPIs, SLAs and a balanced scorecard for performance management • Improving the risk-management profi le • Creating a fl exible, scalable, global delivery platform that is cost effi cient and that offers training and development opportunities McKesson's transformative program spurred the development of a dramatically improved reporting process that featured automated and on- demand dashboards, providing McKesson business units visibility into their actual spend at a level of detail not previously possible. 5. Leverage technology to create effi ciencies and fuel innovation MRE partnered with CBRE to identify the best and most innovative tools for each service line, with a goal of identifying products that would improve MRE's effi ciency and the McKesson employee experience. Our vision included the ability to truly empower our team by leveraging data to make both tactical and strategic decisions. A new program-management offi ce (PMO) tool was developed to support MRE, while new project management oversight capabilities were introduced to help mitigate risk and highlight potential issues early on. With the CBRE team, we also expanded the use of cross-platform analytics, implemented a new energy and sustainability performance- management tool, and leveraged a new space-management tool for new offi ces, with demonstrable benefi ts. • The new energy and sustainability performance-management tool greatly improved the tracking of sustainability metrics while providing quick savings of over $100,000, the start to a multi- million-dollar energy-savings program over the next few years. • The expanded use of analytics helped us improve our oversight of the real estate portfolio, uncovering new opportunities for additional effi ciency improvements over time. • The new space-management tool was critical to the successful rollout of McKesson's new Las Colinas campus in March of 2017. The employee experience was greatly enhanced with important visitor, reservation and wayfi nding capabilities. With an innovative approach to leveraging technology, MRE has been at the forefront of a data-driven approach to improving the McKesson employee experience while reducing operational costs throughout the portfolio. 6. Leverage partnerships While developing a vision for the future of MRE, we determined we needed a service provider to bring industry-leading best practices, global scale, and occupier knowledge. We went to market with an RFP for a full- service provider and chose CBRE as our strategic partner. The multi-year plan consisted of specifi c actions and timelines for each of our service lines and defi ned not only how they would operate within their functions, but how they would operate across functions and leverage technology to bring about our group's evolution as a value-added service provider to the business. The CBRE team developed detailed timelines and designed and facilitated workshops to drive progress toward the vision state. Functional leaders were able to redefi ne how their respective areas should operate and the steps needed to meet the established performance criteria. Recognizing that a full review of the cross-functional processes was key to success, our team performed an end-to-end workfl ow review and analysis using a Six Sigma approach. This Six Sigma approach served as the foundation to ongoing process-improvement efforts. As processes have been created, communicated and implemented, we have been better equipped to continue to iterate and improve. Results The results of this transformation effort include realized cost savings, improved oversight and quality throughout the supplier ecosystem, and fi nancial transparency across all service lines. Due to these transformative efforts, our MRE team achieved the highest-ever customer-satisfaction scores from McKesson building occupants across CBRE-managed locations. As Senior Vice President Global Corporate Real Estate for McKesson Corp., Michael Huaco is responsible for portfolio and asset management of more than 26 mil- lion square feet (2.42 million sq. m.) of the company's real estate assets. Lily Stoyanovski and Stuart Appley of CBRE contributed to this article.

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