The Leader Magazine

JUN 2018

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12 June 2018 the leader F E A T U R E A R T I C L E 3. Nuanced complexity across regions While services are generally bundled at a regional or global level (see Figure 3), the geographic basis for outsourcing will vary based on the CRE capability under discussion. Unique and complex cultural distinctions, market maturity, and availability of regional or global providers all impact the outsourcing of services. Not all capabilities are subject to regional and geographic biases. CRE organizations may prefer to keep some capabilities outsourced through global partnerships. In fact, 71 percent of the survey respondents employ a center-led strategic planning model requiring a global partnership. Survey results also show that local level outsourcing is relatively low across functions, given that respondents outsourced one or more CRE capabilities, suggesting an opportunity to further integrate the local organization with the overarching regional or global objectives. 4. Process and technology as accelerators In addition to managing people, CRE organizations use processes to derive greater value from an outsourcing arrangement. Defining the strategy and desired outcomes upfront can help identify gaps in current processes and streamline opportunities to achieve operational excellence. Processes do not have to be standardized at a global level. Local or regional legal, financial, regulatory, and technology considerations all influence process optimization and adoption. New or revised processes (such as invoicing, lease renewal approvals, work- order management, conflict resolution, etc.) also require extensive socialization with affected business leaders and their employees. A common pitfall to new outsourcing arrangements are inadequately defined responsibility and/or accountability matrices with redundant or multiple approvers, and poorly designed command structures that might result in operational gridlock. To prevent such potential issues, CRE organizations can develop and regularly update process, tools, and frameworks including RACIs (responsible, accountable, consulted, and informed), governance and performance-management mechanisms, playbooks, etc., prior to outsourcing. Such preparation helps in onboarding of new talent, reducing knowledge concentration risks, and minimizing unplanned costs. By assessing their own maturity on key business processes, a CRE organization can develop an RFP with a reasonable understanding of their expectations. This not only facilitates more thoughtful responses from the providers, but can help foster a smoother transition and implementation into the new model. CRE-specific technologies (cloud-based solutions, integration hubs, supply chain management and/or sourcing platforms, business intelligence overlays, etc.) are driving many shifts in the CRE industry by offering the promise of savings and improved service delivery through greater insight and transparency into costs, space utilization, and service provider performance. However, technology alone is not a panacea for a CRE organization. For new technology solutions to positively affect an organization, the organization must first understand where and why its current solutions fall short as well as what it requires from a new solution. Comprehending these needs better equips a CRE organization to review system capabilities and service provider solutions to determine cost efficiency and fit-for-purpose. Another pervasive trend in technology is the rapidly expanding Internet of Things (IoT) ecosystem and smart-buildings technologies. Regardless of the need – smart lighting, smart occupancy sensors or beacons to inform space management and service delivery, more accurate work-order systems, the employment of drones to identify structural preventative maintenance – data-driven smart solutions around building management have enabled a higher level of sophistication in CRE organizations seeking

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