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Customer Service Center F a c i l i t y S t a t u s
� B u d g e t , S i t e a n d F a c i l i t i e s O r g a n i z a t i o n O v e r v i e w
� F a c i l i t i e s S c o r e c a r d
� F a c i l i t y P l a n - S i t e P l a n , V i s i o n , M i s s i o n a n d
S c e n a r i o S u m m a r y
� K e y A c t i v i t i e s
� S t r a t e g i e s , P r o g r a m s a n d R e c o m m e n d a t i o n s
© 2016 Labarre Associates, Inc.
© 2016 Labarre Associates, Inc. 2 of 25
Customer Serv ice Center
F a c i l i t y P l a n ,
S t r a t e g i e s , P r o g r a m s
a n d R e c o m m e n d a t i o n s
Prepared by: Barry Lynch, NCARB, MBA, CFM, IFMA Fellow
Labarre Associates, Inc.
8385 Rushing Rd. East
Denham Springs, LA 70726
(225) 664-1934
blynch@labarre-inc.com
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Customer Serv ice Center
Part I.
Budget, Site and Facilities Organization Overview
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1. CSC Budget Overview
Total Cost of Facilities
Customer Service Center
Winston-Salem NC
1998 1999 2000 2001 2002 2003
1. Lease Cost 1,875,948 2,290,172 2,290,172 2,290,172 2,326,829 2,326,829
2. Operations Cost 1,204,625 1,198,840 1,227,782 1,253,472 1,279,932 1,307,187
3. Capital 0 2,800,000 0 800,000 0 0
4. Depreciation 1,649,768 1,698,000 1,838,000 1,978,000 2,018,000 2,058,000
5. Total 4,730,341 7,987,012 5,355,954 6,321,644 5,624,761 5,692,016
CSC 1998 Actual Budget
40%
25%0%
35%
Lease Cost Operations Cost Capital Depreciation
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2. Key Cost Measures
Total Facilities Cost per Sq. Ft.
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
1995 1996 1997 1998 1999 2000 2001 2002 2003
$/s
q.
ft.
Office Total IFMA Benchmark*
Facilities Cost per Person
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
1995 1996 1997 1998 1999 2000 2001 2002 2003
$/p
ers
on
Office Total IFMA Benchmark*
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
1995 1996 1997 1998 1999 2000 2001 2002 2003
CSC Total Cost of Facilities
Lease Cost Operations Cost Capital Depreciation
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3. Site and Building Overview
Stacking Plan
Site Plan
5 AON AON
4 Pepsi-Cola BB&T
3 Pepsi-Cola BB&T
2 Pepsi-Cola AON
2nd Floor lease Starts Jan. 1, 1999
1 Pepsi-Cola Building Office/ Lobby/ Cafeteria AON
Reynolds Carolina Credit Union
C Pepsi-Cola Lobby/ Auditorium/ Common Corridors Parking BB&T Lobby Dock
Pepsi-Cola Fitness Center
LOBBY LOBBY LOBBY
SECTION A SECTION B SECTION C
UNIVERSITY CORPORATE CENTER
August, 1998RENTABLE AREA
Vacant Pepsi-Cola AON RCFCU BB&T Total Key
5 0 0 63,878 0 63,878
4 0 30,705 49,695 80,400 Building Common Space
3 0 39,845 40,555 80,400
2 36,657 40,830 0 77,487 Vacant Space
1 34,758 18,582 1,471 0 54,811
C 11,559 20,946 10,519 43,024 Pepsi-Cola
11,559 162,911 123,290 1,471 100,769 400,000
BB&T
N O TE
1. Pepsi-Cola 2nd Floor Space - lease to commence in January 1999 AON Corporation
2. Pepsi-Cola 5th Floor Option space given up in July 1998 to AON Corp.
3. All non-Pepsi areas are estimated Reynolds Carolina Federal Credit Union
Assigned Parking
LOT PEPSI
A 0
B 0
C 110*
D 185
E 144 SUBTOTAL 439
Unlimited parking in Lots "F"
& "G"
Parking
Parking
A Concourse Entrance
B C
1st Floor Entrance
LOT A LOT B LOT C LOT D
LOT E
LOT G
Reynolds Blvd.
LOT F LOT G
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4. Key Facility Facts
� Built in 1978, University Corporate Center is a 525,000 (Gross),
400,000 (Rentable) Class A office building that is the Former
RJRNabisco Corporate Headquarters.
� The building is owned by Wake Forest University and is currently
for sale.
� Amenities include: cafeteria, indoor executive parking, 400 seat
auditorium, spacious lobbies, multi-bay loading dock
� CSC Leases 162,909 square feet of space on the concourse level
and floors 1, 2, 3 and 4 of the A (east) portion of the building.
� There are a total of 1,701 parking spaces available, with 854
assigned.
� Office space operates 14 x 5 (14 hours per day, 5 days per week)
� Data Center operates 24 x 365 (24 hours per day, 365 days per
year)
� Key Tenant Organizations include:
� IT - Information Technology
� TELSEL
� Accounts Receivable
� Support
� Total Seated Population varies on almost a daily basis and is
currently 727.
� Build-out of the recently leased 2nd floor space will increase
seating capacity by approximately 100.
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5. Facility Department Organization
The CSC facilities department relies on an outsourcing service
delivery strategy. The in-house staff consists of a facility
manager, an administrative assistant and a maintenance
coordinator. When the CSC was started, it was expected that
the main focus of the facilities department would be
supporting the Data Center. While this is still a primary
responsibility, organizational change has been a constant, and
supporting staff reorganizations and moves has become a
major part of the facilities department work. External vendors
and a contract project manager provide support for moves
and renovations.
Maint. Coord.
Facility Admin.
Contract Project
Manager
External Vendors
Facility Manager
CSC STAFF
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1. Overview and Goals of the Scorecard Facilities provide the infrastructure (place and technology) for
business. Without them, the business could not function. Key Facility
goals include:
Cash Flow/ Cost Management/ Asset Utilization
� Keep Facility Operating cost per person below average
� Prudently manage project capital and expense to support
corporate financial objectives
Customer Service
� Ensure that moves, move planning and change management do
not slow down necessary business changes.
� Develop and maintain a Facility Plan that anticipates needs,
tracks performance is communicated to appropriate personnel.
� Maintain a written Business Continuity Plan for the Data Center
� Test and maintain a back-up site for the Data Center
� Test and maintain emergency power generation capabilities
Productivity
� Ensure that required seating capacity is provided to tenant
organizations while still maintaining maximum utilization of the
facility and allowing for future changes.
� Maintain 100% uptime for the Data Center and technology
infrastructure.
� Maintain a workplace that supports tenant requirements
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2. Scorecard
CSC FACILITIES DEPARTMENT SCORECARDMarch 1, 1999
Facilities provide the infrastructure (place and technology) for business. Without them, the business could not function.
Key Facility Management and Planning measures include:
Cost Management - Effective cost management of the facility infrastructure frees up cash to invest in, and grow the business.
Customer Service - Change management, (move planning and execution), should not hold up core business change.
Effective facility planning ensures on-going facility support for changing business requirements as does best practice management
of the computer center. Deficient facility planning could jeopardizes future growth and quick response to changing business needs.
Productivity - efficient use of the facility is one indicator of the effectiveness of facility planning and on-going change
management. If the Computer center crashes or does not support business processes, financial and service targets
could be missed.
Cost Management/ Fixed Asset Utilization
Customer Service
Productivity
Change Management
It is essential that facility moves and relocations
"stay off the critical path" of all CSC change
efforts. Performance includes:
* 47 (or ?) Individual Moves -
accomplished per plan
* 3 (or ? ) Team moves -
accomplished per plan
* 1 (or ?) Reorganization - accomplished
per plan
Business Continuity Management
Effective Business Continuity
Management requires training, testing
and coordination with business units,
facilities functions and Information
Technology. "Best Practices" in place
include:
* Written business continuity plan
* Successful test of back-up site
* Successful test of emergency power
generators
Facility Planning
Good planning requires anticipation, not reaction to business
needs. The following "best practices are in place at the CSC to
ensure that facilities continue to support business objectives:
* Site Mission and Plan - in place and communicated
* Planning Horizon - Site plan looks beyond site
saturation - includes market value analysis , exit
strategies, time frame of more than 10 years
* Anticipation - next projects anticipated and & action
plan developed
* Facilities Performance - tracking of facility
utilization and effectiveness
-
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C S C T o ta l C o s t o f F a cilitie s
L ease C o st O pera tions C ost C ap ita l D eprec ia tion
Occupancy -
C apacity v s . Required
-
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O ffic e To ta l IF M A B e n c h m a rk *
Facilities C ost per P erson
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
1995 1996 1997 1998 1999 2000 2001 2002 2003
$/p
ers
on
Office Total IFM A Benchmark*
C OM P UT E R CE NT E R
P erce n t Up tim e
0.00%
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U p tim e
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III. Facility Plan Executive Summary
Site Plan, Mission, Vision and Scenario Summary
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1. Current Site Plan � Continue to support Data Center and CSC Operations
� Commence Lease of 2nd floor space in January 1999. Build-out space in
one phase with furniture installed as needed.
� Renew original lease in 2003 (unless business changes dictate other
measures). Planning for expanded space, should begin two years before
needed date due to local lease market conditions.
� Keep budget increases in proportion to increased space and population
(excluding project cost)
2. Mission To provide overall facilities leadership that optimizes the CSC work
environment with space efficient and functional concepts
3. Vision A written facility vision provides a guide for future planning efforts. It keeps
planning teams on track and is the first facilities stop in response to on-going
organizational change.
Organizational Goals
� Ownership (Basic Facility Philosophy) - Lease office space, minimize
cash flow, outsource facility services.
� Financial (Cost Control Approach) - control overall leased area
� Performance - Provide a high-performance and flexible workplace.
No unscheduled data center downtime.
Practical Limitations
� People - density should not go below 150 sq. ft. per person.
� Organizational Purpose (i.e. the work) - Tel-Sell revenue of $575
MM equates to $2.3 MM per day of potential lost revenues due to
failure of the facilities infrastructure.
� Work Environment (i.e. place and technology) Site amenities and
the work environment play a positive part in employee recruitment
and retention. Work process improvements and technology changes
will continue to create change at the CSC.
FINANCIAL
ORGANIZATION GOALS
A facility vision strikes a balance
between ownership, financial and
performance goals and the practical
realities of coordinating the people,
work, place and technology of an
organization
PRACTICAL LIMITATIONS
A written facility vision provides a guide for
future planning efforts. It keeps planning teams
on track and is the first stop in changing facilities
in response to dramatic organizational change.
OWNERSHIP
PERFORMANCE
OWNERSHIP
PEOPLE
PLACE &
TECHNOLOGY WORK
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4. Facility Plan - SCENARIO SUMMARY
A. Hypothetical Plan - Approach
A computer model was set up to project facility needs and associated capital
and operating costs over a 15 year period for 16 scenarios that included:
Scenario 1 - Lease additional space at University Corporate Center
Scenario 2 - Lease Additional space in the Winston-Salem market place
Scenario 3 - Build-to-Suit with long -term lease
Scenario 4 - Build-to-suit, combined with keeping a partial lease at
University Corporate Center
Analysis included a 2%, 5%, 7% and 10% growth factor for headcount in each
scenario, bringing the total number of scenarios to 16.
Capacity Study of Existing Space
Assuming a steady growth rate, which, given the recent history of the CSS is
unlikely, the current space will fill-up as follows:
� 2% growth rate - (15- 20 people per year) - 2010
Staying at University Corporate Center is a good long-
term strategy for this growth rate.
� 5% growth rate - (40- 70 people per year) - 2003
Growth at this rate provides a perfect exit strategy for
leaving the space at the end of the original lease
� 7% growth rate - (50- 100 people per year) - 2002
New space will be required in 2002 - time to start
planning the relocation now.
� 10% growth rate - (70- 200 people per year) - 2001
Planning for new space should have begun already.
B. Key Findings
� Benchmarking has shown that the cost per person of the current facility
is extremely competitive due to the office lay-out, North Carolina
location, favorable lease terms and facility outsourcing approach to
operations
� If growth in the current facility can continue, cost per person will
decrease over time (this is the only option where this occurs).
� If growth beyond the capacity of the current space is anticipated, it is
recommended that BB&T be contacted about sub-leasing space and that
the landlord be contacted about a build-to-suit opportunity on the
current site.
� There are no blocks of appropriate lease space available in the Winston-
Salem Market.
� Significant growth (doubling the headcount) will require a build-to-suit
with long-term lease that will take a minimum of 2 years to plan and
build.
WORK
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C. Summary Analysis of Scenarios
Scenario 1 Lease Additional Space at UCC
� Good strategy for low growth (2%) environment (less than 20 people per
year).
� For moderate growth (5%) environment, this is still a good strategy, but
would involve leasing additional space
� With this approach, total construction and operating cost savings versus
"build-to-suit" for 5% growth is a cash flow difference of $40MM over 15
years.
� If available, additional space can be leased and built-out in
approximately 9 months
Scenario 2 Lease Space in the Market place
� The Net Present Value of leasing and building out space in the market is
slightly more than leasing additional space at the University Corporate
Center. However, there is no appropriate space in the market and
physical separation between groups could be a productivity issue
working against this scenario.
� If available, space could be leased and built out in 11 months
� Determining the economic order quantity (how much) for lease space is
an issue. The area would vary depending upon which groups would be
located in a remote location.
Scenario 3 - Build to Suit
� Building would be similar to Sara Lee Headquarters (Assumption)
� This is the most expensive option - $96 MM cash flow for construction
and operations for a 5% growth rate for the next 15 years ($49 MM
NPPV)
� If an available site can be found, the building could be designed and
constructed over a 2 year period
� This scenario should be considered if the population is expected to
exceed 1,000 by 2003
� Determining the "economic order quantity" for space could be an issue
for this scenario. Larger buildings provide a lower construction cost per
square foot, but take longer to fill up. The vacant space incurs operating
costs while awaiting tenants, and the size of the facility should be
carefully studied to balance growth needs, operating concerns and
organizational efficiency.
Scenario 4 - Build to Suit combined with leasing existing space
� This option is slightly less expensive than option 3, build-to-suit. This is a
short-term "gap" strategy that will have to be studied when future
needs are know, because this scenario provides minimal savings over a
build to suit. This is because in the build-to-suit, operating costs are
incurred for vacant, built-out space while in this option, that cost is
roughly equal to the lease cost at University Corporate Center.
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� Even though this option does not have a significant financial advantage
over build to suit, it should still be considered when building because it
provides organizational flexibility.
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D. Exit Strategy
If the facility were abandoned tomorrow, the following costs would be
incurred.
Cost
� $0.8 MM - Expense to clear out the existing furniture
� $9.4 MM - Lease expense for the original space through 2003
� $4.7 MM - Lease expense for the 2nd floor through 2008
� Unknown - Write-off of remaining depreciation
Income
� $1.6 MM - Potential income from the sale of furniture
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IV. Key 1998 Activities
Planning/ Change Management
� Developed a Strategic Facility Plan and Knowledge Base
� Moved 176 people with no delay to critical business functions
� Gave up the Temporary Lease on the 2nd Floor
� Leased 2nd Floor Space effective January 1, 1999.
Operations
� Developed Key facility measures, goals and scorecard
Data Center
� Provided 100% up-time
� Successfully tested Business Recovery Facility
� Successfully tested emergency power generators
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V. Programs/ Strategies/ Recommendations
The objective of this section is to bring together all facility efforts
under a coordinated program that strengthens the facility's
contribution to corporate financial performance, enhances the
productivity of tenant organizations and builds a facility knowledge
base that will expedite future planning and change management
strategies.
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1. Operating Cost Strategies/ Programs/ Recommendations
Strategy
Deliver cost-effective facility services by maintaining better than
average cost per person.
Programs
� "Right side up from day One" organizational approach included:
� Outsourcing all facility planning and management functions
� Small work stations that share internal circulation space with
aisles. This increases density, allowing more people to be
located in less space.
� In order to offset the small area allotted per person, the
following features are included in the space: abundant natural
light, above standard finishes in common spaces and
competitive employee amenities.
Recommendations
� Benchmark workstation sizes and employee amenities with similar
companies and facilities to ensure that the overall workplace is
competitive with the offering of other companies.
� Benchmark facility operating costs to determine opportunities to
improve operations or deliver more efficient services
Status
� Benchmarking workstations: questionnaires sent out Dec. 5.
Results by mid-January.
� Benchmarking facility operating costs - This is a continual process.
1998 analysis complete.
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2. Project Cost Strategies/ Programs/ Recommendations
Strategy
Prudently manage project capital and expense to support corporate
financial objectives.
Programs
� Offset capital required for tenant interior construction with a
generous landlord tenant upfit allowance. This is paid back
through the lease and while it results in increased lease payments,
it offsets capital expenditures and stabilizes long-term cash flows.
Recommendations
� Continue to prudently manage build-out of 2nd floor using the
above stated program. Construction of space to proceed in 1999,
but furniture will be installed when required by staff growth or
organizations change.
Status
� 2nd floor lease signed. Construction to proceed in 1999.
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3. Customer Service - Change Management Strategies/ Programs/ Recommendations
Strategy
Ensure moves, move planning and change management do not slow
down necessary business changes.
Programs
� Develop and maintain a facility plan that anticipates needs, tracks
performance and is communicated to appropriate personnel.
Recommendations
� Continue to maintain facility plan and knowledge base.
Status
� Plan developed in mid-1998. Updated twice since then.
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4. Productivity - Asset Utilization Strategies/ Programs/ Recommendations
Strategy
Ensure that required seating capacity is provided to tenant
organizations while still maintaining maximum utilization of the facility
and allowing for future changes.
Programs
� Develop and maintain facility plan and continue a dialogue with
tenant organizations to ensure proactive communication of tenant
requirements.
Recommendations
� Develop "What-if" scenarios in the facility plan that answer major
questions about what will happen due to normal growth and
unanticipated major growth or contraction in space needs.
Status
� Scenario summary complete.
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5. Productivity - Data Center Strategies/ Programs/ Recommendations
Strategy
Maintain 100% uptime service level for Data Center and technology
infrastructure
Programs
� Maintain a written Business Continuity Plan for the Data Center
� Test and maintain a back-up site for the Data Center
� Test and maintain emergency power generation capabilities
Recommendations
� Continue with current level of service
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6. Productivity - Overall Workplace Strategies/ Programs/ Recommendations
Strategy
Maintain a workplace that continues to support tenant requirements
Programs
� Hire architectural, interiors and facility planning firms to continue
to complete architectural needs analysis prior to any facility
changes.
� Maintain Business Continuity Plan
Recommendations
� Continue with current program and level of service
WORK
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