Our Industry has come……to a fork in the road

“Whenever you find you are on the side of the majority, it is time to pause and reflect.” - - Mark Twain

We’ve come to a fork in the road

Earlier we asked this question…– “What services do you

give your clients?”

– “Sit down, plug in and have a meeting?”Or,

– “Do you manage their office, so they can manage their business?” Which way will you turn?

Here’s where our paths began to divide… Why?

Managed Offices Serviced Offices

1972

2001

What happened?

Take a quick look at our industry history:

1970 – 1995: Decades of growth and service revenue

1995 – 2000: Industry consolidation & .com era

2000 – 2002: .com-bomb era

2002 – 2004/5: Industry devaluation through vacancy– Technology attacks service revenues

2003 – 2005: Reduction of our value proposition to the client– Only ‘flexibility left’

2002 – 2005: Stronger competition with traditional RE.– Mixing of terms

2004 – 2005: Current ‘turnaround’ in new business form with limited service revenues

What’s going to happen next?

What was the outcome?

By 2000/01 most SO’s began to focus more on RE than services.– Most could not keep pace with IT

needs of clients• Still can’t

– Most began to cut staff in 2001/02 which eroded services & revenue even further

– Clients migrated their telecom use to their mobiles

– Next year ‘data’ will be in the Ether.

– Downward spiral in services revenue.

– There’s little left…but RE.Glad these days are over?

Is this good or bad?

It depends on your plan.

If you are in the RE business it may not matter that much.

If you are in the Serviced Office business it matters a lot.

…And, most of us are in serviced office business.

Holy Cow, did you see where the service revenue went?

What should we do about it?

Embrace it.

Profit from it.

Doesn’t matter which your model is as long as you increase three things.– Market Share– Pricing Model– Client Loyalty

ABCN, “Many Styles, One Service Standard”

There can only be one point of view

How the heck can we embrace losses in service revenue?

I did not say, “embrace the loss”.

I said, “embrace the change”– It is an opportunity for

the ‘strong and flexible’ to grow the value of their company

Don’t confuse changing with losing.

OK…my arms are open for the embrace…

Here’s where ABCN becomes more religion-like than a traditional Network... – “Trust Me”.

We have a plan that will:– Increase sales– Shorten the sales cycle– Increase the rates paid for

space– Increase service revenues– Increase long term client

loyalty– Increase your company value.

…I hope it’s not the kiss of death.

Make your decisions based on logic and experience.

Here’s the plan. It’s simple

“Run their office, so they can run their business”!

How?

With New Service Partners

…come home to the original idea of what a Serviced Office should do.

It’s not just about ‘attitude’…it’s about a specific mix of service products

“What!?”, you might say.

Where do you spend your time?

What’s a pain in the A** to deal with?

What irritates you about the way you have to spend your own time and money?

Now, take your own list and solve your own problems for your clients!

How? Who with?

OK, think of your own operation. Now, think of yourself as a client for a moment.

You and your clients have more in common than you

think

What kind of ‘service partners’

Here’s the criteria: “Top Ten Service Partner Countdown”:

1. Service must meet an existing client need.• We aren’t educators or ‘pioneers’

2. Service must be a core part of ‘managing their office’

3. Service must create new sales opportunities

4. Service must create higher closing ratios

5. Service must impact value of space

6. Service must increase client retention/loyalty

7. Service should have recurring revenue

8. Service should be equally attractive to Suite and VO clients

9. Service should be ‘transferable’ when the client leaves the center.

10.Service should be able to be sold to others ‘outside the four walls’.

Partners who want to serve your clients as badly as you do.

Sound good…anything else?

Ok…let’s find even one service product that will meet the ‘Top Ten Criteria’… better yet, let’s find a whole bunch!

Not clear yet?…let me give some examples

First, let’s try

Here’s the Top Ten Criteria… will it work? Service must meet an existing client need.

We aren’t educators or ‘pioneers’ Service must be a core part of ‘managing their office’ Service must create new sales opportunities Service must create higher closing ratios Service must impact value of space Service must increase client retention/loyalty Service should have recurring revenue Service should be equally attractive to Suite and VO clients Service should be ‘transferable’ when the client leaves the

center. Service should be able to be sold to others ‘outside the

four walls’.

Still not enough?…let’s try another.

Service must meet an existing client need. We aren’t educators or ‘pioneers’

Service must be a core part of ‘managing their office’ Service must create new sales opportunities Service must create higher closing ratios Service must impact value of space Service must increase client retention/loyalty Service should have recurring revenue Service should be equally attractive to Suite and VO clients Service should be ‘transferable’ when the client leaves the

center. Service should be able to be sold to others ‘outside the

four walls’.

Let’s try

Still not 100% clear?…let’s try just one more.

Service must meet an existing client need. We aren’t educators or ‘pioneers’

Service must be a core part of ‘managing their office’ Service must create new sales opportunities Service must create higher closing ratios Service must impact value of space Service must increase client retention/loyalty Service should have recurring revenue Service should be equally attractive to Suite and VO clients Service should be ‘transferable’ when the client leaves the

center. Service should be able to be sold to others ‘outside the

four walls’.

This time let’s use

The picture should be pretty clear

It’s not so much the services…… but the new package & presentation.

And, it is the tools that you have to support them.– You will have the information– You will have the support– You will have the training

Here’s how the tools will be provided to you.

The information will be in the new Member’s portal

Which is accessed… through the ALLIANCE GATEWAY

Easy to use toolbar…use it, or lose $,£,€.

The support will be from the new Officing Outlook, Officing Options, ABCN.com and a direct link to/from your own website.

Which are all accessed… through the ALLIANCE GATEWAY

Easy to use toolbar…use it, or lose $,£,€.

Are you seeing a trend here?

The training will be via Training Focus and our newest partner…...

We all know training is a critical part of every company’s operations

Over the past several months ABCN has worked with Grosvenor Group to:

Establish a new training programGive us consistency of standards; and, Improved sales performance.

Here are some program highlights:– Unique relationship– Full credentialing program that works for the managers as

well as their companies– Two delivery Methods– Very, very cost effective– Constant industry ‘refresher’.

The general training program will consist of 6 modules

Introduction to the Business Center Industry & Basic Selling skills

Advanced Selling Skills Interviewing Skills &

Managing Staff Customer Care Foundation Management

Skills Business Center Marketing

We hope you’re as committed to quality as

we are.

All of this will be accessed … through the ALLIANCE GATEWAY

Easy to use toolbar…use it, or lose $,£,€.

I hope you aren’t starting to feel any pressure.

Conclusion:

Only you can come to your own conclusion to embrace a new (old) service strategy.

From our vantage point of reviewing global operations for more than 20 years, we completely believe that ‘managing their office’ is the absolute best strategy to maintain your traditional value proposition to the client and to grow your company.

Thank YouQuestions?

“Change is a door that can only be opened from the inside.”- Terry Neil.