Talk the Talk - SIG...Talk the Talk: Achieve Objectives by Speaking Your Internal Stakeholders'...
Transcript of Talk the Talk - SIG...Talk the Talk: Achieve Objectives by Speaking Your Internal Stakeholders'...
Achieve Objectives by Speaking Your
Internal Stakeholders' Language
Talk the Talk:
Microsoft
Olga PerelmanGroup Manager
sig.org/eval
Talk the Talk: Achieve Objectives by Speaking Your Internal Stakeholders' Language
Microsoft Procurement: Real Estate & Facilities(case study)
Olga Perelman, Global Procurement Manager
October, 2016
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Goals for Today’s Session
• Expand knowledge of Real Estate & Facilities category in a mature corporate environment and witness the evolution of the relationship between RE&F business group and Procurement team
• Review a case study that showcases procurement’s ability to learn together with its stakeholders, become a critical partner and eventually drive the long-range planning alongside with Facility management SME
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Worldwide presence
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
RE&F Integrator Model - Evolution
• Common Global Platform
• Managed Supplier Ecosystem
• Cross Regional Suppliers
• Local Provider Choice
• FTEs spending more time with clients and partners
• Center Resources SME to help
Tier 1 Suppliers
Tier 2 Suppliers
Regional RE&F
Regional CBRE
RE&F and CBRE RE&F
• Unmanaged vendor pool
• Limited performance systems
• RE&F staff non universally strategic
• Clients looking for more RE&F Leadership
• 50+ IT tools
• Spotty PM / IFM / RE vendor performance
• Operating regionally
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Negotiated and designed with partnership from Procurement; continue to oversee together
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Procurement Model – support RE&F
CBRE INTEGRATOR
Focus: Program Management• Sourcing of T1s –
PM/TM/IFM • Initial RFP for Stable
providers • Bid to Stable for local
market expertise based on project’s location
• Performance Management of Tier 1s
• Finance & Budgeting• Portfolio Management• Gain share – cost savings
Tier 2
Sourcing &
Management
Tier 1
Sourcing &
Management
MSFT Procurement
Focus: Perform due diligence for this outsourcing model by:• Initial RFP to select CBRE• Ongoing Contract, SOW
mgmt. of CBRE• Review of Stable T1 RFP
selection & Master contracts • PM Project Procurement
Plan review • Participate in Tier 2 (PM &
IFM) supplier selection process
• QBRs & Tier 1 workshops• Project sourcing Audits• Partner w/ Field
procurement, Legal, Audit
Oversight
of
Integrator
Model
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Sourcing Process & Metrics
78%
84%
91%
70%
75%
80%
85%
90%
95%
FY14Q2 FY14Q4 FY15H1
to align Integrator model sourcing process with Procurement policies and best
practices
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Example: MS Procurement R&R CBRE Integrator SOW
MS Procurement informed about project pipeline
Available in country Tier 1
(Stable) suppliers to bid
on:
- Price- Quality of Staff - Schedule
CBRE selects the best supplier & manages them:
- Agreed contract
- Agreed SOW
- Agreed KPI’s
PM Tier 1 to create Tier 2 Project
Procurement Plan
MS Procurement and CBRE Sourcing to
review
For GC, Architect, other key packages*
MS Procurement to participate in RFPs
Audit processes:
MS Procurement
to audit CBRE’s
sourcing of Tier 1s
Sourcing-related savings:
CBRE to calculate per
project
MS Procurement to enter into our Savings
tool
* Anti-corruption – due diligence reports for General Contractors & Landlords (globally)
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Integrated Facility Management: 3-year Sourcing plan
Framework
• Standard SOW, KPIs and contract
• Evaluation criteria in alignment with sourcing goals
• Integration of Food Services
• Hospitality approach for customer and employee experience
• Conflict Management Program
• R&R and Communications Plan
Inputs
• IFM strategy and regional requirements
• Market intelligence and supplier footprint
• Spend analysis
• Past performance record
Timeline
• Global agreement expiration
• Real Estate activity
• SOW/KPI/contract review/update
• Operational issues
Core Team: RE&F and Procurement Extended team: CBRE Sourcing
Input and Review: RE&F in RegionsCBRE Integrated Facility Management TeamCBRE Sourcing
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Goals of IFM Sourcing Strategy Roadmap
• Enable the enhanced Global IFM framework to up-level IFM services delivery
• Select/negotiate T1s to achieve advanced Account Management & Site Management via adequate resource planning
• Review current supplier base to right fit the current needs, enhance IFM T1s coverage and sustainability
• Establish long term partnership with T1s, ex. 5-year contract
• Reward highest performing suppliers
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
RE&F Platform Stakeholder - Testimonial
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Lessons Learned & Journey Ahead
• What makes this procurement team qualified to do this work?
• Don’t outsource everything!
• Evolve with the business needs• Ex: 3-year sourcing roadmap for IFM• Supplier expectations are changing so are we!
Know your category & measure your work Understand the market & geo presence
Understand the needs of your stakeholders Stand up for solid procurement practices while be flexible in how you apply them
Proven record of delivery if committing to the scope of work
Think outside of the box with your stakeholders and suppliers to achieve common goals
Review, review, review status quo and evaluate your alternatives on regular basis (ex: “what if”)
On-going support post sourcing activities (realignment, scorecards, transitions, QBRs, etc.)
Know your supplier base Treat your most important suppliers as partners
Treat every deal as TCO not “cost”
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
Q&A
For any additional questions or comments:
Business Value Strategic SourcingSupplier Relationship
ManagementSimplified ProcurementMicrosoft Procurement
GPG & CBRE oversee targeted packages in PM
Sourcing Journey
MS Procurement & CBRE Sourcing
R&Rs continue to evolve so we can
meet our stakeholders’ needsInitial “oversight” R&R
established for CBRE & GPGOversight often challenged by
stakeholders: field GPG, Finance,
Legal, GMs
PM/TM Tier 1 RPFs &
contract with Tier 1 stables
Sourcing Playbook v1:
oversight documented –
GPG & CBRE
IFM Tier 1 model is
socialized in EMEA
& renegotiated in
Asia
APP for IFM deployed
IFM Tier 1 renegotiations:
LATAM
GPG audit established for
CBRE Sourcing practices
IFM Tier 1 model v1
established: EMEA
Tier 1 TM contracts
reviewed & extended with
new SLAs and R&R
3-yr IFM Tier 1
roadmap
Established enhanced
oversight Tier 1 PM & IFM
sourcing of Tier 2s
SSJ process formally
defined for Tier 1s
Gain Share program
operationalized
GPG partnership
with RE&F:
Integrator contract
“oversight”
RE&F asked MS
Procurement to be more
“hands on” in PM projects
and IFM service RFPs
* Automation of
IFM APP & IFM
spend Dashboard
JCI purchased by CBRE:
heavy involvement by
GPG and CBRE Sourcing
(Conflict of Interest)
* Rationalization of
Tier 2 spend globally
* Responsible Sourcing in
RE&F category
Tier 1 PM contracts
reviewed & extended with
new SLAs and R&R
* Initiatives in progress
* Broader support of RE&F
category within MCIO
Support for
MS Retail
Stores
Support for
Factories
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Talk the Talk: Achieve Objectives by Speaking
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Microsoft Olga Perelman