The Leader Magazine

JUN 2018

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the leader June 2018 11 1. a lignment of outsourcing goals Linking the CRE organization's objectives to broader business outcomes (along with internal business partners like human resources (HR), technology, and finance) has become an important part of having a cohesive business strategy. Motivations for CRE outsourcing can vary widely, from decreasing costs, to improving service levels, and to transferring risk (see Figure 1). Ultimately, it is the CRE organization's alignment of its own objectives to those of the broader business that contribute to the design and implementation of a successful outsourcing arrangement. Depending on the goals, internal alignment, and the maturity of the organization, the extent of CRE outsourcing can range from significant, where most capabilities are outsourced, to minor, with only one or two capabilities being outsourced. The survey shows that facilities management and lease administration were the capabilities most frequently outsourced by survey respondents, while business engagement / customer relationship management and strategic planning continue to be conducted primarily in-house (see Figure 2). 2. Managing change to drive implementation and adoption While defining outsourcing strategies, it benefits CRE organizations to evaluate their readiness to outsource or to transfer more accountability for currently outsourced services to providers by assessing the following: Stakeholder buy-in: Organizations that embark on the outsourcing path require adequate preparation to drive the desired outsourcing outcomes. Organizational resistance can be a significant deterrent in many cases and it can be overcome, at least in part, by focusing on the following: a) Expediting acceptability: Stakeholder buy-in, or a lack thereof, has long-lasting implications on outsourcing. Often, site-level budgets may be controlled directly by business units. The goals of these stakeholders should be considered early in the journey and clearly align with the objectives of the proposed outsourcing. The quickest way to do this is to build a business case showing the benefits intended for the stakeholder groups. The CRE organization should internally identify the outsourcing program champions who will drive the initiatives forward. b) Standardizing expectations: Outsourcing arrangements can be used to streamline CRE operations, refine processes, develop a stronger governance model, and delineate the necessary from nice-to-have requirements for CRE. Doing the proper diligence on scoping and baselining can highlight opportunities to obtain greater value at reduced costs. c) Preparing for transition: Transition teams may include third-party resources in addition to the internal teams. Stakeholder availability and their bandwidth is critical to meeting transition timelines. Talent readiness: Sometimes overlooked, CRE organizations can be more prepared to implement the future outsourcing model when they develop, grow and/or attract the right talent. Clearly defined career paths and roles or responsibilities help to attract and retain talent that can push implementations forward. Depending on the capabilities outsourced, the CRE organization needs to align on the composition of strategic and executional roles, use of staff augmentation, and other contracting models. Leading methodologies to approach talent development can include implementing a performance model linked to individual performance objectives and developing roles and responsibilities matrices.

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