SIREAS

Real Estate Advisory Services

Archives for Outsourcing

Did I get what I paid for? Answering the toughest question in CRE outsourcing.

Once again, Michele Flynn of SIREAS teams up with Kate Vitasek, a faculty member for Graduate and Executive Education at the University of Tennessee’s Haslam College of Business Administration for this insightful and timely Corporate Real Estate Journal article.

While a buying company and service provider often ‘get to yes’ and establish a business agreement, they will frequently face renegotiations. Buyers especially become frustrated — often blaming suppliers for not honoring their original price. Rather than being frustrated, buyers should look in the mirror and say: ‘Did I get what I paid for? And if not — why?’ The primary reason is that the process for establishing pricing between buyers and suppliers has historically been broken.

Download this article, and get information you can put to use immediately to:

  • Reassess your approach to pricing a CRE services contract, and know when to use a ‘price’ versus a ‘pricing model’
  • Avoid the perverse incentives that arise from commoditization of complex, strategic business relationships
  • Move from transaction-based business models to outcome-based or investment-based sourcing
DOWNLOAD THE ARTICLE

Re-engineering a Corporate Real Estate Service Organization Segment III: Governance

In the final segment of this 3-part series, we will examine the complex collection of topics related to governance, as well as some of the tools that support the implementation of a comprehensive supplier performance strategy, including:

  • Relationship Management Training
  • Communications Strategy
  • Escalation Processes and Procedures
  • Performance Management
  • Governance Support Platforms
  • Periodic Relationship Health Checks and Contract Reviews

Click here to download Re-Engineering a Corporate Real Estate Services Organization Segment III: Governance.

And if you missed either of the first two segments click on these links to download Segment I on Operational Review or Segment II on Strategic Sourcing.

This series focuses on Real Estate Services organizations, which include corporate real estate and facilities management functions.However, the best practices and guiding principles outlined herein can be applied to a broader set of service organizations.

Re-Engineering a Corporate Real Estate Service Organization Segment II: Strategic Sourcing

In Segment II of this three-segment white paper, we draw from our extensive experience to reveal the fundamental building blocks of performance-based contracting and strategic sourcing success, including:

  • Vendor Pre-Qualification
  • Bid Strategy
  • Request for Proposal Development
  • Bid Administration
  • Contract Development
  • Transition Management

Click here to download Re-Engineering a Corporate Real Estate Services Organization Segment II: Strategic Sourcing

And if you missed Segment I on Operational Review, you will find it here.

In the next installment, Segment III will cover governance and the effective management of the partnership post contract execution.

This series focuses on Real Estate Services organizations which include corporate real estate and facilities management functions, however the best practices and guiding principles outlined herein can be applied to a broader set of service organizations.

Choosing the Right Sourcing Model for CRE Outsourcing Agreements

In this Corporate Real Estate Journal article, Ingrid Fenn and Michele Flynn of SIREAS team up with Kate Vitasek, a faculty member for Graduate and Executive Education at the University of Tennessee’s Haslam College of Business Administration.

Modern outsourcing is more than a typical make/buy decision. Rather, there is a wide range of sourcing business models from which today’s practitioners can choose. Unfortunately, the fundamental nature of how goods and services are procured is not keeping pace with best practices of tapping into more mature sourcing business models; many business professionals wrongly assume that a transaction-based business model is the only way to craft a supplier contract. This paper provides an easy-to-understand framework for classifying the various contracting approaches along the sourcing continuum. [Read more…]

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