The Strategy Alignment Model: Defining Real Estate Strategies in
Transcript of The Strategy Alignment Model: Defining Real Estate Strategies in
The Strategy Alignment Model:
Defining Real Estate Strategies in the Context of
Organizational Outcomes
Robert T. Osgood, Jr.
CoreNet Global 2008
The Strategy Alignment Model:
Defining Real Estate Strategies in the Context of
Organizational Outcomes
Robert T. Osgood, Jr.
CoreNet Global 2008
ORGANIZATION OF THE SESSION
Robert Osgood
Section 1: Overview of Applied Research
Section 2: Strategy Alignment Map (Content)
Section 3: SA Map & Content Case Studies
Section 4: Change Management Process
Section 5: Best Practices Benchmarking
Questions throughout the Session
Break
11SECTION ONE
Overview of Applied Research
Robert Osgood
The purpose is to describe the key content and process factors critical to directly aligning place strategy with core business strategy and measuring success in the context of organizational outcomes.
Core Business Strategy
Core Business Strategy
Core Business Enablers w/Place
Core Business Enablers w/Place
THE STRATEGY ALIGNMENT FRAMEWOK
StrategyAlignment
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Mission & Vision
Products & Services
Customers & Markets
Values & Culture
Core Business Strategy Core Business Strategy Core Business Enablers
Core Business Enablers
Place
People
Technology
FOCUS & BOTTOM LINE VALUE
Cost Savings
Revenue Growth
The greatest opportunity is… The greatest opportunity is…
Robert Osgood
70-80% of Costs
70-80% of Costs
20-30% of Costs
20-30% of Costs
10-20% of Costs
10-20% of Costs
PlaceTech
People
Efficiency & Effectiveness…Strategy that drives organizational outcomes …Strategy that drives organizational outcomes
STRATEGY ALIGNMENT AT ALL LEVELS
StrategyAlignment
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Organizational Level
Group Level
Individual Level
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers
Portfolio Level
Site & Facility Level
Workplace Level
Consistent with CoRE 2010…
112 of our projects with Fortune 1000 clients and other high performing organizations, comparing differences in…
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• Analysis of 150 company websites and annual reports…
• Literature review of more than 40 business books and related journal articles…
• 2001, 2004 & 2007 Surveys and focus groups with 250+ Fortune 1000 companies, and interviews (separate from projects) with 25 CEO’s and other C – Suite members…
METHODOLOGY
Pre change measurement of CBS & CBE strategy… Pre change measurement of CBS & CBE strategy…
...Post change measurements of CBS & CBE strategy
...Post change measurements of CBS & CBE strategy
FOUR FUNDAMENTAL QUESTIONS & THREE MEASURES
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Core Business Strategy
Performance
Core Business Strategy
PerformanceSuccessful Projects
Successful Projects
Content
Process
Benchmarking
- -- -- -- -
- -- -
Level of CBS - CBE Alignment
Level of CBS - CBE Alignment
- -- -
- -- - - -- -
- -- -
- -- -
Q1
Q2
Q3
Q4
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Core Business Strategy
Performance
Core Business Strategy
PerformanceSuccessful Projects
Successful Projects
Content
Process
Benchmarking
+ 2 - 25% + 2 - 25%
+ 20% + 20%
+ 14% + 14%
- -- -- -- -
- -- -
Level of CBS - CBE Alignment
Level of CBS - CBE Alignment
+ 15 - 18% + 15 - 18%
- -- -
- -- - - -- -
- -- -
- -- -
OVERALL RESULTS
(+3 – 9% norm)
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Core Business Strategy Performance Core Business Strategy Performance
Content (CBS + 2 - 25%) (CBS + 2 - 25%)
THE 3 INTERRELATED DRIVERS OF PERFORMANCE
1. Cost Savings & Revenue Growth Balance
1. Cost Savings & Revenue Growth Balance
2. Principal Drivers, Value Chain & Groups
2. Principal Drivers, Value Chain & Groups
3. Functional Group
Patterns
3. Functional Group
Patterns
A FEW OF THE CONTRIBUTORS TO THIS WORK
SC JohnsonRR DonnelleySnap-onIBMABN AMROBlue Cross Blue ShieldSchneider NationalLake Shore National BankFleet Financial GroupUDVJohnsonDiverseyProcter & Gamble Eli Lilly John Deere CreditFamous FootwearGTEDozens of Confidential Clients
Dade BehringChevron
Anheuser-BuschHarley Davidson Financial ServicesSCJ Customer & Financial Services
Moore Business FormsHoffmann - La Roche
AT&TPNCICC
NCRPacific Bell
KajimaSherwin Williams
PhilipsFifth Third Bank
Alcoa
Robert Osgood
RECENT & UPCOMING PUBLICATIONS
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Journal of Corporate Real Estate
Business First
FMJ Corporate Real Estate Leader
Site Selection
McMorrow Report
3 new pieces on S.A. & Innovation in 2008-09
CONTEXT: THE REAL ESTATE VALUE CHAIN
Occupancy & Workplace
Strategy
Occupancy & Workplace
Strategy
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Acquisition, Disposition,
Design & Build
Acquisition, Disposition,
Design & Build
Core Business Strategy
Core Business Strategy
Asset Management
Asset Management
Strategy is the first step in an ongoing value chain of interrelated real estate
activities that support, but are separate from the core business…
RE-SETTING THE CONTEXT AS A BUSINESS VALUE CHAIN
Robert Osgood
…Again, we’ll explore real estate in a broader context…as Place is linked with People and Technology as integrated enablers ( IRIS in
CoreNet vernacular ) of core business strategy
Tech Tech Place
People People
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers ImplementationImplementation
Ongoing Operations Ongoing
OperationsAcquisition, Disposition,
Design & Build Asset Management
THREE DISTINCT REAL ESTATE MODELS
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Tech Tech Place Place
People People
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers
Acquisition, Disposition,
Design & Build Asset Management
Strategy Alignment
Model
Services Model
Transactional Model
ImplementationImplementationOngoing
Operations Ongoing
Operations
7 CHARACTERISTICS OF THE MODELS…
TransactionalStrategy
Alignment
Focus & Value
Driver
Skill Integrator
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Services
Project Needs
TechnicianAnalyst
FromTo
Multidisciplinary
Core Business Strategy
Vision Consulting ModelIntegrated Business Model
Architect & Broker Schemes
Org Outcomes: Cost Savings & Revenue Growth
The Best Deal: RE Cost Savings
Org Cost Savings
Downstream Market Economics
1
2
3
4
…7 CHARACTERISTICS OF THE MODELS
TransactionalStrategy
Alignment
Bench marking
Involve ment
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Services
C – Suite as Sponsors
FromToC – Suite as Participants
Process Technical Activities
Broader Change Test Ideas
Org – Specific Best Practices & Questions
Generic Real Estate Statistics
Org Cost Savings
C – Suite as Decision Makers
5
6
7
Management
CHALLENGE: EXTERNAL VS INTERNAL INCENTIVES
TransactionalStrategy
Alignment
Why?
CRE’s Who Actually Use Each
60% 10%
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Services
30%
Market Goal is to Stay Here
FromTo
CRE/ Organization Goal is to be Here
Conflict !
CHALLENGE: PRACTICE FOCUS
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Tech Tech Place Place
People People
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers
Acquisition, Disposition,
Design & Build Asset Management
ImplementationImplementationOngoing
Operations Ongoing
Operations
5% 5% 30%30%5%5%
CBS Source: Gary Hamel in Competing for the Future & CBE Source: 2001, 2004 & 2007 Osgood Surveys
CBE Source: 2004 & 2007 Osgood Survey
60%60%
The C-Suite and CRE’s don’t spend a significant amount of time on strategy…
CHALLENGE: RESEARCH FOCUS
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Tech Tech Place Place
People People
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers
Acquisition, Disposition,
Design & Build Asset Management
ImplementationImplementationOngoing
Operations Ongoing
Operations
10% 40% 50%
Source: 2007 Osgood Survey & literature review
…There is very limited research that truly aligns CBE with CBS & CBS measures
WHERE WE BEGAN: 3 SCHOOLS OF BUSINESS STRATEGY*
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Focus Strategy
1. Instrumentalist
2. Empirical
3. Rationalist
Terms
Leaders
EnvisionFrame & Align
PositionMap
Patterns
HamelPorter
Kaplan & Norton
OperationalEfficiency
EnhanceReengineer
TQMProgramPrescribe
HammerDeming
OrganizationalEffectiveness
EmpowerLeadership &
TrustLearning
OrganizationValues & Culture
SengeCovey
* Mintzberg (‘98) and others have made even finer classifications that result in 4-9 schools.
PORTER’S ACTIVITY MAPPING
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IKEA
Limited Customer
Service
Suburban Location
Store Design
Matches Mfg.
Limited Sales
StaffingSelf-
Assembly
Modular Furniture Design
Self- Transport
Self- Selection by Customers
Ample Inventory
Low Manufact- uring Cost
High- traffic store layout
100% Sourcing
Long- Term
Year- Round
Stocking
Most Items in Stock
Variety & Ease of
Mfg.
Knock- down
Packaging
Ease of Assembly
Catalogues & Displays Strategic Themes
Source: HBR Nov – Dec 1996
ACTIVITY MAPPING & STRATEGY ALIGNMENT
Robert Osgood
IKEA
Limited Customer
Service
Suburban Location
Store Design
Matches Mfg.
Limited Sales
StaffingSelf-
Assembly
Modular Furniture Design
Self- Transport
Self- Selection by Customers
Ample Inventory
Low Manufact- uring Cost
High- traffic store layout
100% Sourcing
Long- Term
Year- Round
Stocking
Most Items in Stock
Variety & Ease of
Mfg.
Knock- down
Packaging
Ease of Assembly
Catalogues & Displays Mission & Vision
Source: HBR Nov – Dec 1996
Real Estate
Distinctive Competencies
Customers & Markets
Products & Services
HAMEL’S CORE COMPETENCIES
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Envision
Banner Brand
Business Units
Core Products (Platforms)
Core Competencies
Source: Competing for the Future, 1994
CORE COMPETENCIES & STRATEGY ALIGNMENT
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Envision
Banner Brand
Business Units
Core Products (Platforms)
Core Competencies
Mission &Vision
Products & Services
Customers & Markets
Values & Culture
KAPLAN & NORTON’S BALANCED SCORECARD
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Causal Relationships in the Service Profit Chain
Financial
Customer
Internal/Business Process
Learning and Growth
Source: The Balanced Scorecard, 1996 & 2006
ROCEROCE
Customer Loyalty
Customer Loyalty
On-time DeliveryOn-time Delivery
Process Quality
Process Quality
Process Cycle TimeProcess
Cycle Time
Employee Skills
Employee Skills
THE BALANCED SCORECARD & S.A.
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Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Causal Relationships in the Service Profit Chain
Financial
Customer
Internal/Business Process
Learning and Growth
Source: The Balanced Scorecard, 1996 & 2006
ROCEROCE
Customer Loyalty
Customer Loyalty
On-time DeliveryOn-time Delivery
Process Quality
Process Quality
Process Cycle TimeProcess
Cycle Time
Employee Skills
Employee Skills
THE 3 SCHOOLS & THE SA FRAMEWOK
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3. Rationalist Model3. Rationalist Model
CRE/FM as multidisciplinary integrator (CEO)CRE/FM as multidisciplinary integrator (CEO)
CRE/FM as capital planner (CFO/COO) CRE/FM as capital planner (CFO/COO)
CRE/FM as spatial change agent (CHRO/CKO) CRE/FM as spatial change agent (CHRO/CKO)
2. Empirical Model 2. Empirical Model
1. Instrumentalist Model1. Instrumentalist Model
2SECTION TWO
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Strategy Alignment Map
Change Management Process
Best Practices Benchmarking
(Content)
SO AGAIN, ELEMENTS OF THE STRATEGY ALIGNMENT MAP
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Mission & Vision
Products & Services
Customers & Markets
Values & Culture
Core Business Strategy Core Business Strategy Core Business Enablers
Core Business Enablers
Place
People
Technology
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Core Business EnablersStrategy Measure Measure
16 Elements 17 Elements 19 Elements 17 Elements
Strategy
Imagine that each of the grey boxes has a statement and/or number that describes a specific strategic element or measure…organized as a series of causal relationships
Imagine that each of the grey boxes has a statement and/or number that describes a specific strategic element or measure…organized as a series of causal relationships
STRUCTURE OF A STRATEGY ALIGNMENT MAP
THE COMPOSITION OF MOST S.A. MAPS
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Strategy Measure Strategy MeasureCore Business Core Business Enablers
25.25.25.
1.1.1.
25.25.25.
1.1.1.
Consistently there are 15 - 25 strategic elements that describe unique competitive advantage…
Consistently there are 15 - 25 strategic elements that describe unique competitive advantage…
THE “40 - 30” BANK OF S.A. MAP ELEMENTS
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Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Enablers
10 Elements of People and the processes they employ
8 Elements of Technology
12 Elements of Place
5 Elements that Define the Value Proposition
5 Elements of Growth & Change
10 Types of Innovation
5 Types of Segment Focus
8 Types of Support Competencies
7 Elements of Internal & External Beliefs
Core Business Strategy
THE 40 ELEMENTS IN DETAIL
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Mission &Vision
Core Business Strategy
Purpose
Aspirations
Position
Finance & Investment
Risk Management
Value PropositionValue Proposition
THE 40 ELEMENTS IN DETAIL
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Products & Services
Customers & Markets
Core Business Strategy
Organic Growth
M&A Growth
Partnership Growth
In-Co-Out Sourcing
Organic Contraction & Divestitures
Growth & ChangeGrowth & Change
THE 40 ELEMENTS IN DETAIL
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Products & Services
Customers & Markets
Core Business Strategy
Disruptive Innovation
Product/Service Innovation
Application Innovation
Process Innovation
Customer Innovation
Experiential Innovation
Brand Innovation
Networking Innovation
Business Model Innovation
Organization Innovation
InnovationInnovation
THE 40 ELEMENTS IN DETAIL
Robert Osgood
Products & Services
Customers & Markets
Core Business Strategy
New & Existing Customer & Market Balance/Mix
New & Existing Product & Service Balance/Mix
Industry/Category Focus
Territorial Focus
Supplier Focus
Segment FocusSegment Focus
THE 40 ELEMENTS IN DETAIL
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Products & Services
Customers & Markets
Core Business Strategy
Recruit & Retain People
Legal, Regulatory & Compliance
Corporate Governance
Environment, Health & Safety
Intellectual & Physical Security
Internal & External Research
Internal & External Platforms
Environmental Sustainability
Support CompetenciesSupport Competencies
THE 40 ELEMENTS IN DETAIL
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Values & Culture
Core Business Strategy
Philosophy & Core Beliefs
Leadership Style
Norms, Policies & Procedures
Work - Life Balance
Employee Relations
Societal & Community Relations
Institutional & Trade Relations
Internal & ExternalInternal & External
THE “40 - 30” BANK OF SA MAP ELEMENTS
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Enablers
10 Elements of People and the processes they employ
8 Elements of Technology
12 Elements of Place
5 Elements that define the Value Proposition
5 Elements of Growth & Change
10 Types of Innovation
5 Types of Segment Focus
8 Types of Support Competencies
7 Elements of Internal & External Beliefs
Core Business Strategy
THE 30 ELEMENTS IN DETAIL
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Core Business Enablers
Mission, Vision & Goals
Organization Structure & Growth
Collaboration & Communication Network
Group Workflow
Job Design & Individual Activities
Salary & Benefits
Career Development, Learning & Growth
Demographics, Gen- Per & Skills
Standards & Practices
Change Management
PeoplePeople
THE 30 ELEMENTS IN DETAIL
Robert Osgood
Core Business Enablers
Mission, Vision & Goals
Technical Infrastructure
Communication, Information & Automation Systems
Fixed & Mobile Tools
Security
Environmental Sustainability
Standards & Practices
Change Management
TechnologyTechnology
THE 30 ELEMENTS IN DETAIL
Robert Osgood
Mission, Vision & Goals
Portfolio Pos/Value, Fin & Risk
Site/Facility Components & Flex
Location (s)
Floor Area
Group/Floor Layout & Support
On/Off-Site Ind Workspaces
Common Facilities & Amenities
Site/Arch/Eng/Int Systems
Environmental Sustainability
Standards & Practices…C. Mgmt.
PlacePlace
Core Business Enablers
TOP 10 CORE BUSINESS ELEMENTS
Robert Osgood
Products & Services
Customers & Markets
Core Business Strategy
Mission & Vision
Values & Culture
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Recruit & Retain
Brand Innovation
P&S Innovation
Process Innov.
Core Beliefs
Work-Life
Of the 40, there are 10 Core Business
Elements that appear consistently as drivers across companies and industries - of course in
ways unique to each organization
THE TOP 10 CBS ELEMENTS WITH KEY MEASURES
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Products & Services
Customers & Markets
Core Business Strategy
Core Business Measures
Mission & Vision
Values & Culture
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Process Innov.
Brand Innovation
P&S Innovation
Core Beliefs
Work-Life
Shareholder Value…
Cap & Oper Costs…
Cust Sat & Retention…
Speed to Market…
Cycle Times…
Sales from Banner …
Job Satisfaction…
Corp. Value Identity…
Recruit & Retain
… Job Flex & Growth
…Leverage Banner
…Cycle Improvements
…Sp. & Quality to Mkt.
…Cust Sat & Growth
…Intellectual CapitalQuantitative Levels…
… Empowerment
…Market Share & MixUtilization & Prod…
…Sales & Profits
Cost Savings Revenue Growth
OVERALLL COST VS GROWTH FOCUS BY CBS…
Robert Osgood
Products & Services
Customers & Markets
Core Business Strategy
Core Business Measures
Mission & Vision
Values & Culture
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Process Innov.
Brand Innovation
P&S Innovation
Core Beliefs
Work-Life
Shareholder Value…
Cap & Oper Costs…
Cust Sat & Retention…
Speed to Market…
Cycle Times…
Sales from Banner …
Job Satisfaction…
Corp. Value Identity…
Recruit & Retain
… Job Flex & Growth
…Leverage Banner
…Cycle Improvements
…Sp. & Quality to Mkt
…Cust Sat & Growth
…Intellectual CapitalQuantitative Levels…
… Empowerment
…Market Share & MixUtilization & Prod…
…Sales & Profits
Cost Savings Revenue Growth
Robert Osgood
Products & Services
Customers & Markets
Core Business Strategy
Core Business Measures
Mission & Vision
Values & Culture
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Process Innov.
Brand Innovation
P&S Innovation
Core Beliefs
Work-Life
Shareholder Value…
Cap & Oper Costs…
Cust Sat & Retention…
Speed to Market…
Cycle Times…
Sales from Banner …
Job Satisfaction…
Corp. Value Identity…
Recruit & Retain
… Job Flex & Growth
…Leverage Banner
…Cycle Improvements
…Sp. & Quality to Mkt
…Cust Sat & Growth
…Intellectual CapitalQuantitative Levels…
… Empowerment
…Market Share & MixUtilization & Prod…
…Sales & Profits
Cost Savings Revenue Growth
…AND WHEN COST IS EMPHASIZED…
Robert Osgood
Products & Services
Customers & Markets
Core Business Strategy
Core Business Measures
Mission & Vision
Values & Culture
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Process Innov.
Brand Innovation
P&S Innovation
Core Beliefs
Work-Life
Shareholder Value…
Cap & Oper Costs…
Cust Sat & Retention…
Speed to Market…
Cycle Times…
Sales from Banner …
Job Satisfaction…
Corp. Value Identity…
Recruit & Retain
… Job Flex & Growth
…Leverage Banner
…Cycle Improvements
…Sp. & Quality to Mkt
…Cust Sat & Growth
…Intellectual CapitalQuantitative Levels…
… Empowerment
…Market Share & MixUtilization & Prod…
…Sales & Profits
Cost Savings Revenue Growth
…VERSUS, WHEN GROWTH IS EMPHASIZED
Post Change
FINDINGS: ENHANCED CBS & CBE ALIGNMENT
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Pre Change
Alignment at 59% Alignment at 59%
CBS & Measures CBE & Measures
Post Change 76%
or +17% 76%
or +17%
Pre Change
Alignment at Alignment at
Q1
Balanced Focus
FINDINGS: ENHANCED CBS & CBE ALIGNMENT
Robert Osgood
Efficiency (Cost)
Cost Savings
Revenue Growth
Effectiveness (Quality)
Primary Focus
Primary Focus
Primary Focus…Or + 18%…Or + 18%
Alignment at 79%... Alignment at 79%...
Alignment at 75%... Alignment at 75%...
…Or +15% …Or +15%
CBS & Measures CBE & Measures
Balanced Focus …Or + 17%…Or + 17%
Primary Focus
Alignment at 76%... Alignment at 76%...
Q1
Robert Osgood
Efficiency (Cost)
Cost Savings
Revenue Growth
Effectiveness (Quality)
Primary Focus
Primary Focus
Primary Focus
Balanced Focus
CBS & Measures CBE & Measures
Balanced Focus
Primary Focus
FINDINGS: ENHANCED CBS PERFORMANCE
Overall Performance Overall Performance
Overall Performance Overall Performance
Overall Performance Overall Performance
Up 3-6%Up 3-6%
Up 4-7%Up 4-7%
Up 5-9%Up 5-9%
Q2
We sorted the information above and throughout this section along a number of dimensions. Four key areas in which we did not find significant differences were sorts by Industry, Organizational Structure, Generational and Gender issues.
Robert Osgood
Products & Services
Customers & Markets
Core Business Strategy
Mission & Vision
Values & Culture
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Recruit & Retain
Brand Innovation
P&S Innovation
Process Innov.
Core Beliefs
Work-Life
Facility Image
Change Mgmt.
Port Pos., Value, Cost & Risk
Floor Area & Occupancy
Location & Occ.
Amenities
Ind. Workspaces
Layout & Supp.
People Technology Place
Core Business Enablers
ALIGNMENT OF TOP 10 CBS & PLACE ELEMENTS
Yes, there are some obvious
individual connections…
…SO WE STUDIED THE TOP 10 CBS & PLACE LINKS
Robert Osgood
P&S
C&M
Core Business Strategy
M&V
V&C
Position
Growth & Change
Customer Innov.
Fin., Inv. & Risk
Recruit & Retain
Brand Innovation
P&S Innovation
Process Innov.
Core Beliefs
Work-Life
Floor Area
Flex CF & Amen. Ind. WS
Port Pos…
Fin & Risk Location Tech
ToolsInfra Layout
& Supp.
More Organizational Level… …More Group & Individual Level
We found patterns of alignment…
We found patterns of alignment…
…rather than individual
correlations…
…rather than individual
correlations…
THE THREE PRIMARY P-T-P PATTERNS
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Dynamic Group
Modular Group
Linear Group
Ambiguous problems with innovative solutions
Complex problems with unique solutions
Familiar problems with known solutions
EXCERPTS OF P-T-P PATTERNS
Robert Osgood
Dynamic (Innovative)
Revenue growth & performance…
Percentage of Time Used Percentage of Time Used
Collaboration Network & Location
Collaboration Network & Location
Linear (Familiar)
Modular (Complex)
Group Workflow, Layout & Support
Group Workflow, Layout & Support
Job Design, Individual Activities & On/Off-Site Workspaces
Job Design, Individual Activities & On/Off-Site Workspaces
15%
Broad collaboration network & multi- disc co-loc/integration…
Balance of team & individual activities in MAS…
Unconventional jobs extended offsite via tech…
65%20%Cost Savings & execution…
Ltd collaboration network & single disc co-location…
Individual activities in std, ergonomically focused environ…
Conventional jobs performed onsite…
Balance, but more like Dynamic
Mission & Vision Mission & Vision
Control over team collaboration & individual concentration…
PEOPLE & TECHNOLOGY CHARACTERISTICS IN DETAIL
Robert Osgood
DynamicFocus more on revenue growth & reward for performance
Unconventional, dynamic individual job activities & roles w/long hours
Mission & VisionMission & Vision
Growth Growth
Collab. NetworkCollab. Network
Change MgmtChange Mgmt
Frequent, often dramatic shifts in headcount
Ongoing & informal interaction, often about custom, tacit information
Expansive, multi-disciplinary, internal & external collaboration network
Leaders as coaches who reward collaboration
Linear Modular
Networked-virtual structure around processes across disciplines & org chart
Balance of team communication & individual concentration
Emphasis on professional content individual job activities
Balance of rev. growth & cost savings, reward for performance & complianceHierarchical-networked-virtual structure around/across overall organization chartPredictable, moderate to dramatic shifts in headcount
Broad, hierarchical-oriented internal & external collaboration networkA mix of interaction types, often more formal than informal about custom & routine, tacit and explicit information
Well-defined individual job activities & roles with long hours
Emphasis on professional & managerial content individual job activities
Emphasis on individual concentration with varying team communication
Diverse expectations beyond the job
Leaders as technicians & administrators who reward tech depth
Focus more on cost savings & task executionHierarchical-networked, around person to person processes within disciplinesPredictable, moderate shifts in headcount
Limited single-discipline/department collaboration networkBrief informal & formal meetings & technology exchange often about routine, explicit information
Well-defined, static individual job activities & roles w/ shifts & job sharing
Balance of professional & admin content individual job activities
Focus on individual concentration & small team communicationLeaders as administrators who reward task execution
Expectations for professional equality
Extend primary onsite work with a variety of offsite activitiesVast majority of work is completed onsite
Group Workflow Group Workflow
Job Design & Individual Activities
Job Design & Individual Activities
Org StructureOrg Structure
Career DevCareer Dev
Globally integrated IT systems & wide-range of fixed & mobile A/V toolsGlobally integrated IT systems & wide- range of fixed & mobile voice tools
TechnologyTechnology
Participants & leaders of change management processes
Leaders & participants of change management processes
Participants & responders to change management processes
Development around individual, intrinsic professional growthDevelopment around new systems & procedures
Convenient access to a high quality workforce, services and institutions
Flexible layout & support around a multiple activity setting environment
PLACE CHARACTERISTICS IN DETAIL
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DynamicLinearMission & VisionMission & Vision
Components & Flexibility Components & Flexibility
LocationLocation
CF & AmenitiesCF & Amenities
Modular
Flexible hierarchy of space from public to private zones w/surge spaceKey multi-disciplinary/dept groups are co-located/integrated; others nearby
A wide range of formal & informal places for interaction
Spatial balance of team and individual space
Leaders typically co-located with their teams & peers
Wide range of common facilities & on/off-site amenities
Workspace standards primarily by function, with several layout options
Emphasize corporate-specific over market flexible facilities
Workspace standards by function & entitlement, w/ a few layout options
Workspace standards by function & entitlement, with several layout options
Hierarchy of space from public to private zones w/ some surge spaceKey, typically single-discipline/dept, groups are co-located; others nearby
A range of formal & informal interaction & meeting places
Spatial focus on individual workspaces
On-Site workspaces with a range of flexible off-site tools & spaces
Enclosure flexibility for control of collaboration & concentration
Balance of corporate - specific & market flexible facilities
Hierarchy of space from public to private zones w/minimal surge space Key, typically single- discipline/departments are co-located
Range of traditional meeting places & small interaction settings
Basic on-site common facilities & some value-added amenities
Virtually all on-site workspaces with limited off-site tools & spaces
Enclosure flexibility for control of noise & visual distractions
Emphasize market flexibility over corporate specific facilities
Spatial focus on sequence of individual workspaces
Range of common facilities & on/off- site amenities
Leaders typically co-located with their teams
Balance of leaders co-located with their teams & with peers
Group Layout & Support
Group Layout & Support
Individual On/Off- Site Workspaces
Individual On/Off- Site Workspaces
Flexible layout & support around a standard or MAS environment
Flexible layout & support around a standard environment
Place as a tool to drive business growth at the lowest possible cost
Place as enabling support, balancing cost & growth
Place as a cost to be minimized without inhibiting business growth
Flexible infrastructure focused on changing org, team & individual needs SystemsSystems
Change MgmtChange Mgmt Participants & leaders of change management processes
Leaders & participants of change management processes
Participants & responders to change management processes
Flexible infrastructure focused on team & individual consistency
Flexible infrastructure focused on individual consistency
Locations convenient to a high quality workforce, services and institutions
Market Research & Product Development
Market Research & Product Development
R&DR&D Des & EngMarketing Mktg Research
PurchasingSupply ChainOperations
SalesCustomer Service: Facing CS: Remote
Exec LeadershipFinanceFin & Accounting SupportLegalRegulatory & ComplianceHR & ODHR BenefitsIT DevelopmentIT Program & SystemsFacilities & Real EstateAdmin Services & Misc.
Corp Groups By P-T-P Color Value Chain
20 CORPORATE GROUPS & PATTERNS IN VALUE CHAIN… …Variation within & between organizations
Source, Manufacture/ Produce & Distribute
Source, Manufacture/ Produce & Distribute
Market, Sell & Service
Market, Sell & Service
Robert Osgood
Market Research & Product Development
Market Research & Product Development
R&DR&D Des & EngMarketing Mktg Research
PurchasingSupply ChainOperations
SalesCustomer Service: Facing CS: Remote
Exec LeadershipFinanceFin & Accounting SupportLegalRegulatory & ComplianceHR & ODHR BenefitsIT DevelopmentIT Program & SystemsFacilities & Real EstateAdmin Services & Misc.
Corp Groups By P-T-P Color Value Chain
GREATEST OPPORTUNITY FOR IMPACT & IMPROVEMENT… Groups with well defined missions, processes and objective measures
Source, Manufacture/ Produce & Distribute
Source, Manufacture/ Produce & Distribute
Market, Sell & Service
Market, Sell & Service
Robert Osgood
Robert Osgood
Dynamic Group
Modular Group
Linear Group
Ambiguous problems with innovative solutions… Emphasizing the entire workplace
Complex problems with unique solutions… Connecting groups & individuals
Familiar problems with known solutions… An assembly line of individual spaces
SPATIAL REPRESENTATIONS OF THE GROUPS
FINDINGS: CBS COST AND GROWTH ALIGNED WITH SPECIFIC P-T-P PATTERNS
Robert Osgood
Cost Savings Rev Growth Linear Modular Dynamic
Primary Focus & Performance Up 5-9%
Primary Focus & Performance Up 3-6%
Range
Range
P - T - P Pattern
(Where Most Groups Are)
Balanced Focus & Performance Up 4-6%
Range
Q2
CBS & Measures
Robert Osgood
CBS Principal Driver & Group Linear
Cost Savings
Revenue Growth
Range
Range
Modular Dynamic
Customer Sat & Growth Up 3-5%
Customer Service Remote Groups
Focused on Customer Innovation
Range
(Where Most Groups Are)
FINDINGS: PRINCIPLE DRIVERS, VC/GR & PATTERNS
P – T – P Pattern
Customer Service Remote Groups
Focused on Retention
Turnover Decreases 12-25%
Intellectual Capital Increases 5-10%
Q2
Robert Osgood
CBS Principal Driver & Group Linear
Cost Savings
Revenue Growth
Speed to Market Improves 8-12%
Range
Range
Modular Dynamic
Speed & Quality to Market Improves 5-9%
RD&E & Marketing
Groups Focused on
P&S Innovation
Range
(Where Most Groups Are)
FINDINGS: PRINCIPLE DRIVERS, VC/GR & PATTERNS
P – T – P Pattern
RD&E & Marketing
Groups Focused on Recruitment & Retention
Intellectual Capital Increases 2-5%
Q2
Robert Osgood
CBS Principal Driver & Group People
Revenue Growth
Multidisc. Collaboration Network of 4 - 7 Groups
Technology Place
Speed & Quality to Market Improves 5-9%
RD&E & Marketing
Groups Focused on
P&S Innovation
INSIDE THE NUMBERS
Excerpt of Dynamic Pattern
Control over Individual Concentration & Group Collaboration
Co-Location of 3 - 5 Multidisc. Groups
Enclosure Control for Individual & Group Activities
Q2
Integrated Fixed & Mobile A/V Tools
Range of interaction settings
Ongoing interaction re: tacit info
Robert Osgood
COLLABORATION NETWORK & CO-LOCATION
Levels of Co- Location with 3-5 groups…
On Same or Adjacent Floor*
Within 2-3 Floors*
Same Building
Same Site
Elsewhere
+
-
+
+ N
+ +
+N**
-
**New research suggests there’s an advantage to having 1 or more groups in a separate location with Tech (HBR).
*25-50,000 SF Floors
…with Integrated A/V Tech Tools
…without Integrated A/V Tech Tools
Q2
Robert Osgood
RD&E & Marketing
Groups Focused on P&S
Innovation
CONCENTRATION, COLLABORATION & ENCLOSURE
Standing Ht Partitions w/Door & Ceiling
Enclosure Control for Individual Concentration & Team Collaboration…
Standing Height Partitions w/Door
Seated Height Partitions
Below Seated Ht or Open Bullpen
Standing Ht Partitions without Door
+
+
N
-
Q2
…without Range of Interaction Settings
…with Range of Interaction Settings
N
-
-
+
In a smaller sample we also sorted by extroverts and introverts and did not find a statistically significant difference.
Robert Osgood
RD&E & Marketing
Groups Focused on P&S
Innovation
ENCLOSURE CONTROL + & ALL 3 P-T-P PATTERNS
Standing Ht Partitions w/Door & Ceiling
Enclosure Control for Individual Concentration & Team Collaboration…
Standing Ht Partitions w/Door
Seated Ht Partitions
Below Seated Ht or Open Bullpen
Standing Ht Partitions without Door
Linear Modular Dynamic
+
+
+
-
+
++
N
-
+ N
-N / -
Q2
…with a Range of Interaction Settings
= Where most groups start from.
Control means slightly different things for the groups
Robert Osgood
CBS Principal Driver & Group Linear
Cost Savings
Revenue Growth
Range
Modular Dynamic
Speed & Quality to Market Improves 5-9%
RD&E & Marketing
Groups Focused on
P&S Innovation
(Where Most Groups Are)
BACK TO THE OVERALL RESULT
P – T – P Pattern
RD&E & Marketing
Groups Focused on Recruitment & Retention
Q2
BOTTOMLINE BENEFIT OF STRATEGY ALIGNMENT…
Robert Osgood
Customers & Markets
Place MeasureStrategyCore Business Enablers
Product & Service Innovation
Product & Service Innovation
Speed & Quality to Market
5-9% increases in both have equated to annual revenue increases of 3-4%. For a $5 B company that’s worth $150M - $200M of revenue growth.
MeasureCore Business
Products & Services
…VS TRADITIONAL UNALIGNED PLACE COST SAVINGS…
Robert Osgood
Customers & Markets
Place MeasureStrategyCore Business Enablers
Product & Service Innovation
Product & Service Innovation
MeasureCore Business
Products & Services
A Key Measure: RE Operational Costs
Typical annual savings range from 8%-12%
For a $5B Company with 2M SF of space costing $25/SF to operate, that’s $4M - $6M of place savings that can be used to fund “unaligned” core business strategy
…BACK TO THE MODELS FOR ANOTHER VIEW OF VALUE
Robert Osgood
Tech Tech Place Place
People People
Core Business
Core Business
Core Business Enablers
Core Business Enablers
Strategy Alignment Services Transactional Integrated P-T-P
strategies that helped drive revenue growth &
cost savings of $150M - $200M for organizations on several projects
Portfolio cost savings of $4M - $6M (Still important, just not as much impact)
Acquisition, Disposition,
Design & Build Asset Management
ImplementationImplementationOngoing
Operations Ongoing
Operations
3SECTION TWO
Robert Osgood
Map & Content Case Studies
Change Management Process
Best Practices Benchmarking
Theory & Practice
Robert Osgood
Products & Services
Customers & Markets
Strategy Measure Strategy
CASE STUDY 1: Innovation Speed & Quality to Market
Core Business Core Business Enablers
Organize around market & product categories
Organize around market & product categories
Co-locate Marketing, R&D, Sales, & Ops
Co-locate Marketing, R&D, Sales, & Ops
Ideation groups in multidisciplinary teams
Ideation groups in multidisciplinary teams
Redefine team and individual jobs
Redefine team and individual jobs
More quality products to market
& cycle times reduced by 15%
Impact:$50 M Net Sales/Year
More quality products to market
& cycle times reduced by 15%
Impact:$50 M Net Sales/Year
Eight flexible team layouts
Eight flexible team layouts
Consistent, function- focused workspaces with
new tech tools
Consistent, function- focused workspaces with
new tech tools
CASE STUDY 1: Innovation Speed & Q. to Market S.A. Map
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Core Business EnablersStrategy Measure Strategy Measure
21 Elements 20 Elements 20 Elements 18 Elements
…A 2005 UPDATE TO THE HQ STRATEGY…
15 interviews and 80 pages of notes…
…Distilled into 5 user-friendly pages of Initial Findings
Robert Osgood
…AND THEN IN ’06, AN UPDATED TWO PAGE S.A. MAP…
…Driving dramatic and aligned changes in real estate strategy
Dramatic changes in the business…
Robert Osgood
…FOLLOWED BY APPLICATION TO AN EUROPEAN SUB
Access to the overall corporate S.A Map as a common communication tool…
… Allowed the team to meet via two videoconferences to plan a new head office
Robert Osgood
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Strategy Measure Strategy
CASE STUDY 2: Job & Business Transformation
Core Business Core Business Enablers
Merge N.A. & European customer service
Merge N.A. & European customer service
Consolidate from 8 to 3 locations in N.A. &
Europe
Consolidate from 8 to 3 locations in N.A. &
Europe
From clerical processing to professional service
From clerical processing to professional service
Job sharingJob sharing
Annual turnover reduced from 50%
to 5% Impact:$50 M
Annual turnover reduced from 50%
to 5%Impact:$50 M
Proximity to trans. in diverse areas
Proximity to trans. in diverse areas
Value-added amenitiesValue-added amenities
Enhanced recruitment & training
Enhanced recruitment & training
Enhance life-work balance
Enhance life-work balance
6 professional-based workspaces & tech
6 professional-based workspaces & tech
CASE STUDY 2: Job & Business Transformation S.A. Map
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Core Business EnablersStrategy Measure Measure
16 Elements 17 Elements 19 Elements 17 Elements
Strategy
ORIGINAL STRATEGY ALIGNMENT MAP
Brand is DrawCorporate Specific Facility
Quickly Growing Beyond
Traditional Markets
New Locations
Independent Groups
Flexible Layouts
Professional Environment
Functional Workspace
Life-Work Balance
Employee Focused
Amenities
Robert Osgood
Mission & Vision
Customers & Markets
Products & Services
Values & Culture
Core BusinessCore Business
Enablers
Identify Strengths The Right Fit
Great Managers
Engaged Employees
Engaged Customers
Sustainable Growth
Real Profit Increase
Stock Increase
Source: Follow This Path, C. Coffman (of Gallup), 2002.
Moving from clerical to professional activities that require:
• More training
• More individual control over concentration and collaboration
• Larger personal and layout space
• More access to meeting space
• More user-friendly, less- obtrusive technology
TRANSITION TO A MORE PROFESSIONAL CALL CENTER ENVIRONMENT
Robert Osgood
INDIVIDUAL JOB FUNCTIONS
JOB TYPESCRITERIA ACTIVITY TYPE A TYPE B TYPE C
TIME & PLACE % in building 80% 90% 95%
% in workspace 50% 80% 90%
PRIVACY Speech high moderate moderate
Visual high high low
PAPER & MACHINE Reading, writing, thinking
Computer
Document review
Telephone
Printer
MEETINGS With 1-2 guests Quick / informal Informal
With 3+ guests
% meeting outside office 20-40% 30-50% 30-50%
STORAGE Letter / Legal papers
Manuals / Notebooks / Reference
Robert Osgood
GAP ANALYSIS Growth & Operational Relationships
Robert Osgood
25,0000 SF Floors
…Excess floor area
requirement of 12,000 SF
and no access to
other floors
Other Occupant
Other
Shared Functions
Group A/24,700 SF
Group E/27,550 SF
C/14,250
Group B/32,300 SF
D/14,000 Other
Several groups have current and
future operational
relationships that can’t be satisfied…
Spec/Market-Focused Facility VS. Corporate-Specific Facility• Simple building geometry and basic main entrance vs. • Complex building geometry and enhanced main entrance
• Standard building materials, finishes, colors and graphics vs. • Brand-specific materials, finishes, colors and graphics
• Maximum floor entry exposure to the core in center vs. • One or two main entries from the core (often offset)
• 25,000 RSF floorplates vs. • 30 - 40,000 RSF floorplates, or larger
• 30-40’ deep core to window dimensions vs. • 40 - 45’, or deeper, core to window dimensions
• Floor perimeter planned for a 15’ private office zone vs. • Floor perimeter flexibility for in and out board offices
• Vertical circulation is not critical vs. • Vertical circulation is critical
• Standard 2x4 or 2x2 direct ambient lighting vs. • Indirect ambient and direct task lighting
• Standard acoustic ceiling and partitions vs. •Highly absorbent ceiling and partitions
• Standard panel-hung furniture systems vs. • User-specific furniture systems
• Standard building materials vs. • Sustainable building materials
KEY BUILDING GUIDELINES TO SUPPORT THE ORGANIZATION
Robert Osgood
Inboard Offices
CONCEPT DEVELOPMENT
Robert Osgood
An Office Intensive Floor
SPACE PLANNING FROM THE INSIDE-OUT
Robert Osgood
A Workstation Intensive Floor
SPACE PLANNING FROM THE INSIDE-OUT
Robert Osgood
SPACE PLANNING FROM THE INSIDE-OUT
PRIVATE OFFICE
COPY/FILE /FAX
MEETING SPACE
SUPPORT
TRAINING
LUNCHROOM
CONFERENCE HALL
A Workstation Intensive Floor
Robert Osgood
THE NEW WESTERN US FACILITY
Robert Osgood
NEW “PROFESSIONAL” WORKSPACE IN THE WESTERN US
Robert Osgood
THE NEW “PROFESSIONAL” INDIVIDUAL WORKSPACE IN EUROPE
Robert Osgood
Robert Osgood
Customers & Markets
Mission &Vision
Strategy Measure Strategy
CASE STUDY 3: Return to Heritage Business
Core Business Core Business Enablers
Re-focus on core business
Re-focus on core business
Divest under- performing businesses
Divest under- performing businesses
Measure
Reorganize around customer
categories
Reorganize around customer
categories
Record 3 year sales in core categories
Impact:$800 M/Year
Record 3 year sales in core categories
Impact:$800 M/Year
Consolidate into quality owned
space
Consolidate into quality owned
space
Cost of R.E. Operations
reduced 20% Impact:
$100 M/Year
Cost of R.E. Operations
reduced 20%Impact:
$100 M/Year
Consolidate from 10 to 4 U.S.
locations
Consolidate from 10 to 4 U.S.
locations
Co-location around categoriesCo-location around categories
Multiple activity setting
environment
Multiple activity setting
environment
Multidisciplinary workflowsMultidisciplinary workflows
Products & Services
CASE STUDY 3: Heritage Business S.A. Map
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Core Business EnablersStrategy Measure Measure
17 Elements 18 Elements 21 Elements 16 Elements
Strategy
Activity by Workspace: Partners Overall (when in use)
0%10%20%30%40%50%
60%70%80%90%
100%
PartnersOverall
TOTAL ABAPartners
TOTAL BCPartners
TOTAL TAXPartners
Unoccupied
Telephone
Interactive
Individual
Activity by Workspace: Partners Overall
0%
10%
20%30%
40%
50%
60%
70%80%
90%
100%
PartnersOverall
TOTAL ABAPartners
TOTAL BCPartners
TOTAL TAXPartners
Empty
Space inuse
GROUP & INDIVIDUAL ACTIVITY PATTERNS
Activity Patterns by Functional Job Type
A B C D
Activity Patterns by Functional Job Type
A B C D
Robert Osgood
Formal & Informal Operational Relationships
HERITAGE BUSINESS WITH NEW WORKFLOW & LAYOUT STRATEGIES
Dynamic Workflow
Robert Osgood
COST BENEFIT ANALYSIS OF SCENARIOS
Operational Fitness
Profitable Growth
+106%+52%+36%+12%BaselineTOTAL ONE-YEAR COSTS
+2%-6%-5%-6%BaselineHQ Space Planning
+104%+58%+41%+ 18%BaselineAdditional Real Estate
10 YearsANTICIPATED PAYBACK
Quality People
Alignment with Driven to Deliver Alignment with Driven to Deliver
7 Years
Build Add’l Building
6 Years8 Years15 Years
Build All New Bldg
Build HQ Level 3
Several Groups Leave HQ
All Groups Remain at HQ
Robert Osgood
Robert Osgood
FORMAL & INFORMAL INTERACTION SETTINGS
Robert Osgood
TEAM INTERACTION SETTINGS
Robert Osgood
Customers & Markets
Mission & Vision
Strategy Strategy Measure
CASE STUDY 4: Relentless Pursuit of Efficiency
Core Business Core Business Enablers
Efficiency throughout company
Efficiency throughout company
Real estate operations costs
down 15% Impact:
One time $140 M savings
Real estate operations costs
down 15%Impact:
One time $140 M savings
Consolidate back office operations
Consolidate back office operations
Products & Services
Core products; eliminate most services
Core products; eliminate most services
Create integrated shared services
Create integrated shared services
Portfolio from 42 to 21 locations
Portfolio from 42 to 21 locations
Universal space planning module
Universal space planning module
Outsourcing non-core groups & jobs
Outsourcing non-core groups & jobs
Integrated workflow software
Integrated workflow software
CASE STUDY 4: Pursuit of Efficiency S.A. Map
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Core Business EnablersStrategy Measure Measure
10 Elements 8 Elements 19 Elements 17 Elements
Strategy
OCCUPANCY SCENARIOS
Illinois
CaliforniaLeased Building
CaliforniaOwned Building
CaliforniaReagent Manuf.
DelawareDistributionDelawareBuilding ADelawareBuilding BDelawareBuilding CDelawareBuilding DDelawareBuilding EGeorgia
Call CenterNorth Carolina
Refurb & RepairConnecticutWarehouseConnecticut
Instrument Manuf.
CONSOLIDATEOPTION 1
CONSOLIDATEOPTION 2
OPTIMIZEOPTION 3
RETHINKOPTION 4
MOVE 24/7 OPERATIONS TO GLASGOW
MOVE TO EITHER LEASED OR OWNED SPACE
RENEW CONSOLIDATED LEASE 90,000 SF
MOVE TO GLASGOWBUILDING A
LEASE OR BUILD DDC150 – 200,000 SF
ADD SYVA FROM CUPERTINOBUILDING A
EXPAND TRAINING AND VIP CENTER+/- 10-15,000 SF
LEASE OR BUILD EXTRA SPACE5 – 15,000 SF R&D
EXPAND TRAINING & VIP TO NEW GCM
CO-LOCATE NOTED FUNCTIONS
CURRENTLY IN BUILDINGS D & E
MOVE TO NEW GCM BUILDING
MOVEL ALL TO DE
CO-LOCATE WAREHOUSE WITH INSTRUMENT MANUFACTURING
RENEW CONSOLIDATED LEASE 50,000 SF
107,000 SF
Leased; 09-’12155,000 SF
Leased; 01-’0685,000 SF
Owned105,000 SF
Leased; 03-’0582,000 SF
Leased; 12-’05237,000 SF
Owned124,000 SF
Owned
78,000 SFOwned
20,000 SFOwned
60,000 SFLeased; 07-’05
15,000 SFLeased; 01-’07
105,000 SFLeased; 05-’0720-30,000 SF
Leased; Month to Month
100,000 SFLeased; 05/’14
Robert Osgood
BOTTOM LINE RATING OF SCENARIOS
CONSOLIDATEOPTION 1
CONSOLIDATEOPTION 2
OPTIMIZEOPTION 3
RETHINKOPTION 4
Non-Financial Strategy
Alignment
1-Year Financial Strategy
Alignment
10-Year NPV Financial Strategy
Alignment
Robert Osgood
IMPLEMENTATION PLAN
CALeased Building
DEDistribution
GACall Center
SDC – 55,000 SF
DDC – 82,000 SF
PLUS POSSIBLY:Call Center – 10,000 SF
DEDistribution
NEW DDC – 150-200,000 SF
1
2
GACall Center
105,000 SF
Move VIP, training and Office to New GCM Building
ACC – 10,000 SF
24/7 Op’s
Add up to 25,000 SF
CAReagent Manuf.
DEBuilding A
DEBuilding B
DEBuilding D
DEBuilding E
Consolidate needs to 35-50,000 SF
IL
New GCM Building
Vacate buildings 600 & 800, move R&D functions to
Building 500 and move office functions to New GCM
Building
CALeased Building
CAOwned Building
155,000 SFConsolidate to +/- 50,000 SF
IF NEEDED:
Add up to 50,000 SF to existing 85,000 SF
Move G&A groups to Glasgow
3
Robert Osgood
Robert Osgood
UNIVERSAL SPACE PLANNING MODULE
Robert Osgood
CENTRAL, FLEXIBLE LINK PLACES FOR SHARED SERVICES
CASE STUDY 5: Three Futures
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Strategy
ReinventStretchRefresh
Brand
Revenue
Business FocusHeadcountMarket PositionsValue Chain
Solutions Focus
Relationships
Strategic Support
Business Essentials
Skill Sets
Group/Individual
Focus
Do the
same
thing
better...
Cost Focus
Do the
same
thing
better...
Cost Focus
Do
something
completely
different...
Growth Focus
Do
something
completely
different...
Growth Focus
CASE STUDY 5: Three Futures
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Enablers
ReinventStretchRefresh
Brand
Revenue
Business FocusHeadcountMarket PositionsValue Chain
Solutions Focus
Relationships
Strategic Support
Business Essentials
Skill Sets
Group/Individual
Focus
…Focus
on
Efficiency
first...
…Focus
on
Efficiency
first...
...Focus
on
Effectiveness
first
...Focus
on
Effectiveness
first
THREE FUTURESTransforming the Organization
Prepare
Produce Deliver
PRINT SOLUTIONS
Interactive Media / Web
Creative
FINANCIALLOGISTICS
Premedia
AREFRESH
BSTRETCH
CREINVENT
THE INNOVATIVE PRINT
COMMUNICATIONS COMPANY
THE COMMUNICATION
S COMPANY
THE INTELLIGENCE
COMPANY
TODAY FUTURE
Robert Osgood
HEADQUARTERS LOCATION SCENARIOS
Large Corporate
HQ
Current City
Current Multiple Suburban Locations
Anywhere
Together AnywhereNear “New” Workforce &
Customers
Robert Osgood
A. Refresh B. Stretch C. Reinvent
S.B.U.’s
S.B.U.’s
Support
Small Corporate
HQ
Multidisciplinary S.B.U.’s
& Support
Real Estate Efficiency… … Business Effectiveness
‘01 ‘03 ‘04
Robert Osgood
GAP ANALYSIS: THE FLOOR AREA (& COST) IMPACT
Headquarters Owned Space
More than 1M SF of owned, leased & recently acquired space
Robert Osgood
Dynamic Group
Modular Group
Linear Group
Ambiguous problems with innovative solutions
Complex problems with unique solutions
Familiar problems with known solutions
BENCHMARKING: BACK TO THE P-T-P PATTERNS
Robert Osgood
“BASIC” BENCHMARK FLOOR AREA RANGES BY GROUP
Core Business Groups
Core or Support Groups
Enabling Support Groups
Executive Leadership
R & D
R & D Design & Engineering
Marketing & Marketing Research
SalesCustomer Service: Facing
Finance
Financial & Accounting Support
Operations/Supply Chain/Purchasing
Corporate Communications
Legal
IT Development
IT Programming & Systems
HR & Org. Development
HR Benefits & Support
Environment, Health & Safety
Customer Service: Remote
Facilities & Real Estate
Administrative Services & Misc.
Regulatory & Compliance
200 350125 USF/P 275 USF/P 425 USF/P
P-T-P PATTERNS FOR THIS CASE STUDY COMPANY…
Robert Osgood
Dynamic
Core Business Groups
Core or Support Groups
Enabling Support Groups
Executive Leadership
R & D
R & D Design & Engineering
Marketing & Marketing Research
Sales
Customer Service: Facing
Finance
Financial & Accounting Support
Operations/Supply Chain/Purchasing
Corporate Communications
Legal
IT Development
IT Programming & Systems
HR & Org. Development
HR Benefits & Support
Environment, Health & Safety
Customer Service: Remote
Facilities & Real Estate Administrative Services & Misc.
Regulatory & Compliance
ModularLinear
…IDENTIFYING THE GREATEST NEEDS FOR CO-LOCATION
Robert Osgood
Dynamic
Core Business Groups
Core or Support Groups
Enabling Support Groups
Executive Leadership
R & D
R & D Design & Engineering
Marketing & Marketing Research
Sales
Customer Service: Facing
Finance
Financial & Accounting Support
Operations/Supply Chain/Purchasing
Corporate Communications
Legal
IT Development
IT Programming & Systems
HR & Org. Development
HR Benefits & Support
Environment, Health & Safety
Customer Service: Remote
Facilities & Real Estate Administrative Services & Misc.
Regulatory & Compliance
ModularLinear
The Dynamic groups had the broadest collaboration networks and highest priority for co-location
The Dynamic groups had the broadest collaboration networks and highest priority for co-location
Robert Osgood
ONCE AGAIN, CO-LOCATION BENCHMARKS
Levels of Co- Location with 3-5 groups…
On Same or Adjacent Floor*
Within 2-3 Floors*
Same Building
Same Site
Elsewhere
+
-
+
+ N
+ +
+N**
-
*25-50,000 SF Floors
…with Integrated A/V Tech Tools
…without Integrated A/V Tech Tools
Speed & Quality to Market Improves 5-9%
‘Typical’ Dynamic Pattern
Strategic Support
Enabling Support
Leadership & growth engine that drives the success of the organization
Important daily support of Core Business Groups
Operational support for C.C. and S.S. Groups
Frequent, often informal face-to-face interaction with several to many C.B. Groups about customized & tacit information
Infrequent, often formal interaction, sometimes handled via technology, with C.B. and S.S. Groups about routine & explicit info
Combination of formal & informal interaction with few to several C.B. & S.S. Groups about tacit & explicit information
Type of Interaction Little to no face to face contact with C.B. or S.S. Groups and/or is preferable to manage via technology (etc.)
HQ location is important but not essential
HQ location is essential
Could be anywhere in region or elsewhere
Group Role
PRIOITIZING THE CORE HEADQUARTERS GROUPS
Robert Osgood
Core Business Group
Strategic Support
Enabling Support
Leadership & growth engine that drives the success of the organization
Important daily support of Core Business Groups
Operational support for C.C. and S.S. Groups
Frequent, often informal face-to-face interaction with several to many C.B. Groups about customized & tacit information
Infrequent, often formal interaction, sometimes handled via technology, with C.B. and S.S. Groups about routine & explicit info
Combination of formal & informal interaction with few to several C.B. & S.S. Groups about tacit & explicit information
Type of Interaction Little to no face to face contact with C.B. or S.S. Groups and/or is preferable to manage via technology (etc.)
Groups 1-7
Group Role
A NUMBER OF GROUPS COULD LEAVE HEADQUARTERS
Robert Osgood
Core Business Group
Groups 8-12
Groups 13-16
Group 17
Groups 18-21
Groups 21-23
Groups 24-25
Group 26
Groups 27-30
Groups 30-35
CO-LOCATION & LAYOUT FOR DYNAMIC GROUPS
Robert Osgood
THE DYNAMIC WORKPLACE
The Community Piazza as an Interaction Hub
Robert Osgood
THE DYNAMIC WORKPLACE
Individual Control over Concentration and Collaboration
Robert Osgood
THE DYNAMIC WORKPLACE
Individual Control over Concentration and Collaboration
Robert Osgood
4SECTION FOUR
Robert Osgood
Change Management Process
Best Practices Benchmarking
SA Map & Case Studies
RE-SETTING THE CONTEXT…
Robert Osgood
Tech Tech Place Place
People People
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers
…as a Change Management Process
Acquisition, Disposition,
Design & Build Asset Management
ImplementationImplementationOngoing
Operations Ongoing
Operations
Robert Osgood
ImplementationImplementation
Feed Forward & Back Loop
Core Business Strategy
Core Business Strategy
Core Business Enablers
Core Business Enablers
OngoingOperationsOngoing
Operations
FocusFocus
…FOR SIMPLICITY, THE PROCESS AS A LINEAR DIAGRAM…
THE PROCESS FRAMEWORK IN MORE DETAIL
Core Business Strategy
1. Scope & Objectives
2. Resources
3. Requirements
4. Gap Analysis
5. Strategy: Principles & Alignment
Individual Projects
Robert Osgood
7. Select, Document &
Communicate
6. Plan: Alternative Scenarios
Feed Forward & Back Loop
Core Business Enablers
Developed
ImplementationImplementation
THE FRAMEWORK IS FINE TUNED TO EACH CLIENT
Core Business Strategy
1. Scope & Objectives
2. Resources
3. Requirements
4. Gap Analysis
5. Strategy: Principles & Alignment
Individual Projects
Robert Osgood
7. Select, Document &
Communicate
6. Plan: Alternative Scenarios
Core Business Enablers
Developed
ImplementationImplementation
Using a variety of methods, this step alone is likely to be a series of top-down and bottom-up data collection activities aligned with specific client needs & culture
Using a variety of methods, this step alone is likely to be a series of top-down and bottom-up data collection activities aligned with specific client needs & culture
KEY METHODS USED TO DEVELOP STRATEGY (SA MAP)
Robert Osgood
a. Org Vision & Strategy Sessions b. BU Operational Interviews c. Group/Ind Focus Groups… …Developed SA Map
a. Org Vision & Strategy Sessions b. BU Operational Interviews c. Group/Ind Focus Groups… …Developed SA Map
a. Archival Review b. Walkthroughs c. Surveys of Existing Conditions… …Evaluation SA Map
a. Archival Review b. Walkthroughs c. Surveys of Existing Conditions… …Evaluation SA Map
…”Official” SA Map …”Official” SA Map
Kickoff Team Building… Prelim SA Map
Kickoff Team Building… Prelim SA Map
Resources vs Requirements… Resources vs Requirements…
…Plan Scenario Evaluation & Communication SA Maps
…Plan Scenario Evaluation & Communication SA Maps
A BROADER CHANGE MANAGEMENT FRAMEWORK
Robert Osgood
Core Business Strategy
GoalsGoals
ScheduleSchedule
IssuesIssues
ActivitiesActivities
RolesRoles
StartStart FinishFinish
DeliverablesDeliverablesWhat?
When?
Why?
How &
Who?
Where?
Defining the activities that go beyond basic technical activities, beginning at the Kickoff Team Building Meeting (s)
Core Business Enablers
WHO’S INVOVED? FIVE POTENTIAL ROLES
1. Sponsor
2. Core Team Member
3. Contributor
Robert Osgood
4. Receiver
5. No Involvement
StartStart
Core Business Strategy Core Business Enablers
Buy in and ownership are greatly enabled by developing a comprehensive plan for participation that reinforces the organization’s culture
FinishFinish
FINDINGS: VALUE OF A CHANGE MGMT PROGRAM
Used a Defined Change Mgmt Process
(N=42)
High
Average
Low
25%
10%
(N=68)
Yes
10%
5%
Robert Osgood
No
85% 65%
Q3
Success Level
(Beyond Basic Technical Activities)
FINDINGS: THE VALUE OF SENIOR INVOLVEMENT
Had C-Suite Level Participation
(N=51)
High
Average
Low
31%
10%
(N=59)
Yes
15%
5%
Robert Osgood
No
80% 59%
Q3
Success Level
(Beyond “Just” Decision Making)
FINDINGS: BOTH C. MGMT & SENIOR INVOLVEMENT
Had Change Mgmt. & C-Suite Level Participation
(N=55)
High
Average
Low
30%
15%
(N=55)
Both
10%
0%
Robert Osgood
Neither
90% 55%
Q3
Success Level
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business EnablersCore Business Strategy
20 KEY QUESTIONS THAT DRIVE STRATEGY ALIGNMENT…
Questions 1-10 are essential to establishing the business context and key measures for success…
Questions 1-10 are essential to establishing the business context and key measures for success…
…Questions 10-20 focus on operational, specific P-T-P issues that put the strategy into action…most place projects begin and end here and don’t really consider CBS questions
…Questions 10-20 focus on operational, specific P-T-P issues that put the strategy into action…most place projects begin and end here and don’t really consider CBS questions
Of course, all questions are fine tuned for specific client situations Of course, all questions are fine tuned for specific client situations
…THE BROAD CATEGORIES OF DATA COLLECTION
Core Business Strategy Core Business Enablers
C – Suite Level Leadership SBU/Department Leadership & Groups
Robert Osgood
Mission & Vision
Customers & Markets
Products & Services
Values & Culture
Brand & Identity
Core Competencies
Measures of Success
Support from Existing & Ideal Future Environment…etc…
Mission & Vision
Customers & Markets
Products & Services
Values & Culture
Brand & Identity
Core Competencies
Measures of Success
Support from Existing & Ideal Future Environment…etc…
Organizational Structure
Headcount
Operational Relationships
Support & Amenity Functions
Group Workflow
Individual Activities
Technology Tools
Satisfaction with Existing & Ideal Future Environment…etc…
Organizational Structure
Headcount
Operational Relationships
Support & Amenity Functions
Group Workflow
Individual Activities
Technology Tools
Satisfaction with Existing & Ideal Future Environment…etc…
Robert Osgood
Core Business Strategy Core Business Enablers
1. Deductive(As Described)
2. Inductive (What If?)
Collect Analyze Produce & Refine
Communicate
Produce Analyze Collect Refine Communicate
Ask Questions then Analyze…
Model & Test from Existing then Ask Questions…
AND SOMETIMES… You Really Have to Re-think Your Overall Approach
Analyze
5SECTION FIVE
Robert Osgood
Change Management Process
Best Practices Benchmarking
SA Map & Case Studies
BENCHMARKING: FROM…TO…
Most Benchmarking Begins & Ends with: Most Benchmarking Begins & Ends with:
• A Few
• Strategy-Specific
• Qualitative & Quantitative
• Efficiency & Effectiveness
• Core Business Best Practices
• Many
• Generic
• Quantitative
• Efficiency
• Land & Building Statistics
Robert Osgood
Value Added Benchmarking Focuses on:
Value Added Benchmarking Focuses on:
From……To
& Questions
…OR IN OTHER TERMS…
Most Benchmarking Begins & Ends with: Most Benchmarking Begins & Ends with:
• Innovation Speed & Quality
to Market
• Competitive Position
• Work-Life Balance
• Recruitment & Retention
• Cost/SF
• SF/Person
• Office Standards
• Office Location
• Churn Time & Costs
Robert Osgood
Value Added Benchmarking Focuses on:
Value Added Benchmarking Focuses on:
From……To
Robert Osgood
EXAMPLE: BACK TO CASE STUDY 1 Innovation Speed & Quality to Market
1. Group A
2. Group B
3. Group C
4. Group D
IDEATIONINITIAL
DEVELOPMENT OPTIMIZATION LAUNCH
Organizational
Group
Individual
Robert Osgood
STRATEGIC DECISIONS EARLIER, FEWER PROJECTS AND MORE FOCUS
IDEATIONINITIAL
DEVELOPMENT OPTIMIZATION LAUNCH
TODAY:
IDEA
S
SELECTED
PRODUCTS FOR
COMMERCIALIZATION
FUTURE IDEAL:
IDEA
S SELECTED
PRODUCTS FOR
COMMERCIALIZATION
Robert Osgood
Dynamic Group
Modular Group
Linear Group
Ambiguous problems with innovative solutions
Complex problems with unique solutions
Familiar problems with known solutions
AGAIN, P-T-P PATTERNS AS A BENCHMARKING TOOL
Robert Osgood
DynamicFocus more on revenue growth & reward for performance
Unconventional, dynamic individual job activities & roles w/long hours
Mission & VisionMission & Vision
Growth Growth
Collab. NetworkCollab. Network
Change MgmtChange Mgmt
Frequent, often dramatic shifts in headcount
Ongoing & informal interaction, often about custom, tacit information
Expansive, multi-disciplinary, internal & external collaboration network
Leaders as coaches who reward collaboration
Linear Modular
Balance of team communication & individual concentration
Emphasis on professional content individual job activities
Balance of rev. growth & cost savings, reward for performance & compliance
Predictable, moderate to dramatic shifts in headcount
Broad, hierarchical-oriented internal & external collaboration networkA mix of interaction types, often more formal than informal about custom & routine, tacit and explicit information
Well-defined individual job activities & roles with long hours
Emphasis on professional & managerial content individual job activities
Emphasis on individual concentration with varying team communication
Diverse expectations beyond the job
Leaders as technicians & administrators who reward tech depth
Focus more on cost savings & task execution
Predictable, moderate shifts in headcount
Limited single-discipline/department collaboration networkBrief informal & formal meetings & technology exchange often about routine, explicit information
Well-defined, static individual job activities & roles w/ shifts & job sharing
Balance of professional & admin content individual job activities
Focus on individual concentration & small team communicationLeaders as administrators who reward task execution
Expectations for professional equality
Extend primary onsite work with a variety of offsite activitiesVast majority of work is completed onsite
Group Workflow Group Workflow
Job Design & Individual Activities
Job Design & Individual Activities
Org StructureOrg Structure
Career DevCareer Dev
Globally integrated IT systems & wide-range of fixed & mobile A/V toolsGlobally integrated IT systems & wide- range of fixed & mobile voice tools
TechnologyTechnology
Participants & leaders of change management processes
Leaders & participants of change management processes
Participants & responders to change management processes
Development around individual, intrinsic professional growthDevelopment around new systems & procedures
Convenient access to a high quality workforce, services and institutions
MAPPING CLIENT SPECIFIC PEOPLE & TECH CHARACTERISTICS
Networked-virtual structure around processes across disciplines & org chart
Hierarchical-networked-virtual structure around/across overall organization chart
Hierarchical-networked, around person to person processes within disciplines
Flexible layout & support around a multiple activity setting environment
Robert Osgood
DynamicLinearMission & VisionMission & Vision
Components & Flexibility Components & Flexibility
LocationLocation
CF & AmenitiesCF & Amenities
Modular
Flexible hierarchy of space from public to private zones w/surge spaceKey multi-disciplinary/dept groups are co-located/integrated; others nearby
A wide range of formal & informal places for interaction
Spatial balance of team and individual space
Leaders typically co-located with their teams & peers
Wide range of common facilities & on/off-site amenities
Workspace standards primarily by function, with several layout options
Emphasize corporate-specific over market flexible facilities
Workspace standards by function & entitlement, w/ a few layout options
Workspace standards by function & entitlement, with several layout options
Hierarchy of space from public to private zones w/ some surge spaceKey, typically single-discipline/dept, groups are co-located; others nearby
A range of formal & informal interaction & meeting places
Spatial focus on individual workspaces
On-Site workspaces with a range of flexible off-site tools & spaces
Enclosure flexibility for control of collaboration & concentration
Balance of corporate - specific & market flexible facilities
Hierarchy of space from public to private zones w/minimal surge space Key, typically single-discipline/dept, groups are co-located
Range of traditional meeting places & small interaction settings
Basic on-site common facilities & some value-added amenities
Virtually all on-site workspaces with limited off-site tools & spaces
Enclosure flexibility for control of noise & visual distractions
Emphasize market flexibility over corporate specific facilities
Spatial focus on sequence of individual workspaces
Range of common facilities & on/off- site amenities
Leaders typically co-located with their teams
Balance of leaders co-located with their teams & with peers
Group Layout & Support
Group Layout & Support
Individual On/Off- Site Workspaces
Individual On/Off- Site Workspaces
Flexible layout & support around a standard or MAS environment
Flexible layout & support around a standard environment
Place as a tool to drive business growth at the lowest possible cost
Place as enabling support, balancing cost & growth
Place as a cost to be minimized without inhibiting business growth
Flexible infrastructure focused on changing org, team & individual needs SystemsSystems
Change MgmtChange Mgmt Participants & leaders of change management processes
Leaders & participants of change management processes
Participants & responders to change management processes
Flexible infrastructure focused on team & individual consistency
Flexible infrastructure focused on individual consistency
Locations convenient to a high quality workforce, services and institutions
MAPPING CLIENT SPECIFIC PLACE CHARACTRISTICS
Robert Osgood
Work is performed in a variety of on and offsite settings, enabled by mobile technology…
Mobile
Internally Mobile
Assigned
Work at Home
Category Work Profile
Work is performed in a variety of onsite settings, enabled by mobile technology…
Work is performed onsite in a single office or work station, enabled by fixed and limited mobile technology…
Work is performed at home in a single office or work station, enabled by fixed and mobile technology…
1.
2.
3.
4.
Core Individual & Team Activities
IMPACT OF THE MOBILE WORKER
CASE STUDY 1 Multiple Activity Setting
Where the Entire Building is Your Workplace
Communicate
Both
Concentrate
Public Semi-Public Semi-Private Private
Vendor Meeting Rooms
Conference Center
Floor Conference Rooms
Huddle Areas
Customer Development
Rooms
Huddle Rooms
ReceptionIndoor/Outdoor
Cafeteria
Wellness
Central Training Team & Individual Training
Outdoor Retreat Areas
Outdoor Touchdown
AreasRetreat Rooms
Assigned WorkspacesAssigned
Workspaces
The Town Center
Indoor Touchdown Areas
Robert Osgood
THE RESULTING SA MAP FOR CASE STUDY 1…
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Core Business EnablersStrategy Measure Strategy Measure
21 Elements 20 Elements 20 Elements 18 Elements
Robert Osgood
Products & Services
Customers & Markets
Strategy Measure Strategy
…AND THE BOTTOM LINE IMPACT
Core Business Core Business Enablers
Organize around market & product categories
Organize around market & product categories
Co-locate Marketing, R&D, Sales, & Ops
Co-locate Marketing, R&D, Sales, & Ops
Ideation groups in multidisciplinary teams
Ideation groups in multidisciplinary teams
Redefine team and individual jobs
Redefine team and individual jobs
Eight flexible team layouts
Eight flexible team layouts
Consistent, function- focused workspaces with
new tech tools
Consistent, function- focused workspaces with
new tech tools
More quality products to market
& cycle times reduced by 15%
Impact:$50 M Net Sales/Year
More quality products to market
& cycle times reduced by 15%
Impact:$50 M Net Sales/Year
CASE STUDY 1 Layout for Modular Workflow
Robert Osgood
CASE STUDY 1 Layout for Dynamic Workflow in the Same Footprint
Robert Osgood
CASE STUDY 1 The Town Center of the Multiple Activity Setting
Robert Osgood
Robert Osgood
CASE STUDY 1 Beyond Standard, Formal Places to Collaborate…
Robert Osgood
CASE STUDY 1 …Beyond Standard Offices to Concentrate
FINDINGS: VALUE OF CBS BEST PRACTICES
Used CBS Specific Best Practices
(N=56)
Success
Level
High
Average
Low
24%
8%
(N=54)
12%
6%
Robert Osgood
82% 68%
Yes No
Q4
(Beyond “Just” Place Statistics)
SUMMARY…
• Map (Content): Visually, directly align people, technology and place with CBS and measure results as organizational outcomes…
• No one size fits all place responses, but instead patterns driven by combinations of strategic elements…
• Three broad patterns - Linear, Modular and Dynamic - describe P-T-P characteristics most commonly correlated with CBS Top 10 elements…
• The patterns, and elements of each, are statistically correlated with enhanced CBS performance…
Robert Osgood
…SUMMARY…
Robert Osgood
Core Business Strategy
Performance
Core Business Strategy
PerformanceSuccessful Projects
Successful Projects
Content
Process
Benchmarking
- -- -- -- -
- -- -
Level of CBS - CBE Alignment
Level of CBS - CBE Alignment
- -- -
- -- - - -- -
- -- -
- -- -
Q1
Q2
Q3
Q4
Robert Osgood
Core Business Strategy
Performance
Core Business Strategy
PerformanceSuccessful Projects
Successful Projects
Content
Process
Benchmarking
+ 2 - 25% + 2 - 25%
+ 20% + 20%
+ 14% + 14%
- -- -- -- -
- -- -
Level of CBS - CBE Alignment
Level of CBS - CBE Alignment
+ 15 - 18% + 15 - 18%
- -- -
- -- - - -- -
- -- -
- -- -
…SUMMARY…
(+3 – 9% norm)
Robert Osgood
Core Business Strategy Performance Core Business Strategy Performance
Content (CBS + 2 - 25%) (CBS + 2 - 25%)
THE 3 INTERRELATED DRIVERS OF PERFORMANCE
1. Cost Savings & Revenue Growth Balance
1. Cost Savings & Revenue Growth Balance
2. Principal Drivers, Value Chain & Groups
2. Principal Drivers, Value Chain & Groups
3. Functional Group
Patterns
3. Functional Group
Patterns
…SUMMARY
• Process: A broader change management approach that facilitates c-suite participation and improved decision making in the same amount of time as typical transactional processes.
• Benchmarking: Beyond generic real estate statistics to organizational best practices and questions central to core business strategy.
• Ongoing Work: Detailed guidelines that focus on the three P-T-P patterns and the ability of facilities to provide the flexibility to meet all three concurrently.
Robert Osgood
Robert Osgood
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Core Business Enablers
Flexibility to support changing or evolving People & Technology processes…
Flexibility to support changing or evolving People & Technology processes…
Flexibility to support changing or evolving Core Business Strategy…
Flexibility to support changing or evolving Core Business Strategy…
Core Business Strategy
Flexibility to support Place in the real estate market
Flexibility to support Place in the real estate market
LEVELS OF FLEXIBILITY…
Robert Osgood
Core Business Enablers
…C. To support CBS, implement 4-6 major changes in People and Technology related processes & structure, that drive an average of 45% annual churn…
…C. To support CBS, implement 4-6 major changes in People and Technology related processes & structure, that drive an average of 45% annual churn…
…B. Make 2-3 major changes in their Core Business Strategy &…
…B. Make 2-3 major changes in their Core Business Strategy &…
Core Business Strategy
…D. In Places where it’s customary to be in 5-10 year leases and buildings owned 25+ years…
…D. In Places where it’s customary to be in 5-10 year leases and buildings owned 25+ years…
…FLEXIBILITY IN TERMS OF RATES OF CHANGE
A. Over 10-15 years, most companies… A. Over 10-15 years, most companies…
…E. Thus, Place must meet immediate business needs, then accommodate short and long term change - often without the $ or time to make major physical refinements
…E. Thus, Place must meet immediate business needs, then accommodate short and long term change - often without the $ or time to make major physical refinements
Products & Services
Customers & Markets
Values & Culture
Mission &Vision
Questions & Discussion
Robert T. Osgood, Jr.
CoreNet Global2008
Questions & Discussion
Robert T. Osgood, Jr.
CoreNet Global2008