talk the talk - sig...talk the talk: achieve objectives by speaking your internal stakeholders'...

Achieve Objectives by Speaking Your

Internal Stakeholders' Language

Talk the Talk:

Microsoft

Olga PerelmanGroup Manager

sig.org/eval

Talk the Talk: Achieve Objectives by Speaking Your Internal Stakeholders' Language

Microsoft Procurement: Real Estate & Facilities(case study)

Olga Perelman, Global Procurement Manager

October, 2016

Business Value Strategic SourcingSupplier Relationship

ManagementSimplified ProcurementMicrosoft Procurement

Goals for Today’s Session

• Expand knowledge of Real Estate & Facilities category in a mature corporate environment and witness the evolution of the relationship between RE&F business group and Procurement team

• Review a case study that showcases procurement’s ability to learn together with its stakeholders, become a critical partner and eventually drive the long-range planning alongside with Facility management SME



Worldwide presence



RE&F Integrator Model - Evolution

• Common Global Platform

• Managed Supplier Ecosystem

• Cross Regional Suppliers

• Local Provider Choice

• FTEs spending more time with clients and partners

• Center Resources SME to help

Tier 1 Suppliers

Tier 2 Suppliers

Regional RE&F

Regional CBRE

RE&F and CBRE RE&F

• Unmanaged vendor pool

• Limited performance systems

• RE&F staff non universally strategic

• Clients looking for more RE&F Leadership

• 50+ IT tools

• Spotty PM / IFM / RE vendor performance

• Operating regionally



Negotiated and designed with partnership from Procurement; continue to oversee together



Procurement Model – support RE&F

CBRE INTEGRATOR

Focus: Program Management• Sourcing of T1s –

PM/TM/IFM • Initial RFP for Stable

providers • Bid to Stable for local

market expertise based on project’s location

• Performance Management of Tier 1s

• Finance & Budgeting• Portfolio Management• Gain share – cost savings

Tier 2

Sourcing &

Management

Tier 1

Sourcing &

Management

MSFT Procurement

Focus: Perform due diligence for this outsourcing model by:• Initial RFP to select CBRE• Ongoing Contract, SOW

mgmt. of CBRE• Review of Stable T1 RFP

selection & Master contracts • PM Project Procurement

Plan review • Participate in Tier 2 (PM &

IFM) supplier selection process

• QBRs & Tier 1 workshops• Project sourcing Audits• Partner w/ Field

procurement, Legal, Audit

Oversight

of

Integrator

Model



Sourcing Process & Metrics

78%

84%

91%

70%

75%

80%

85%

90%

95%

FY14Q2 FY14Q4 FY15H1

to align Integrator model sourcing process with Procurement policies and best

practices



Example: MS Procurement R&R CBRE Integrator SOW

MS Procurement informed about project pipeline

Available in country Tier 1

(Stable) suppliers to bid

on:

- Price- Quality of Staff - Schedule

CBRE selects the best supplier & manages them:

- Agreed contract

- Agreed SOW

- Agreed KPI’s

PM Tier 1 to create Tier 2 Project

Procurement Plan

MS Procurement and CBRE Sourcing to

review

For GC, Architect, other key packages*

MS Procurement to participate in RFPs

Audit processes:

MS Procurement

to audit CBRE’s

sourcing of Tier 1s

Sourcing-related savings:

CBRE to calculate per

project

MS Procurement to enter into our Savings

tool

* Anti-corruption – due diligence reports for General Contractors & Landlords (globally)



Integrated Facility Management: 3-year Sourcing plan

Framework

• Standard SOW, KPIs and contract

• Evaluation criteria in alignment with sourcing goals

• Integration of Food Services

• Hospitality approach for customer and employee experience

• Conflict Management Program

• R&R and Communications Plan

Inputs

• IFM strategy and regional requirements

• Market intelligence and supplier footprint

• Spend analysis

• Past performance record

Timeline

• Global agreement expiration

• Real Estate activity

• SOW/KPI/contract review/update

• Operational issues

Core Team: RE&F and Procurement Extended team: CBRE Sourcing

Input and Review: RE&F in RegionsCBRE Integrated Facility Management TeamCBRE Sourcing



Goals of IFM Sourcing Strategy Roadmap

• Enable the enhanced Global IFM framework to up-level IFM services delivery

• Select/negotiate T1s to achieve advanced Account Management & Site Management via adequate resource planning

• Review current supplier base to right fit the current needs, enhance IFM T1s coverage and sustainability

• Establish long term partnership with T1s, ex. 5-year contract

• Reward highest performing suppliers



RE&F Platform Stakeholder - Testimonial



Lessons Learned & Journey Ahead

• What makes this procurement team qualified to do this work?

• Don’t outsource everything!

• Evolve with the business needs• Ex: 3-year sourcing roadmap for IFM• Supplier expectations are changing so are we!

Know your category & measure your work Understand the market & geo presence

Understand the needs of your stakeholders Stand up for solid procurement practices while be flexible in how you apply them

Proven record of delivery if committing to the scope of work

Think outside of the box with your stakeholders and suppliers to achieve common goals

Review, review, review status quo and evaluate your alternatives on regular basis (ex: “what if”)

On-going support post sourcing activities (realignment, scorecards, transitions, QBRs, etc.)

Know your supplier base Treat your most important suppliers as partners

Treat every deal as TCO not “cost”



Q&A

For any additional questions or comments:

[email protected]

mailto:[email protected]



GPG & CBRE oversee targeted packages in PM

Sourcing Journey

MS Procurement & CBRE Sourcing

R&Rs continue to evolve so we can

meet our stakeholders’ needsInitial “oversight” R&R

established for CBRE & GPGOversight often challenged by

stakeholders: field GPG, Finance,

Legal, GMs

PM/TM Tier 1 RPFs &

contract with Tier 1 stables

Sourcing Playbook v1:

oversight documented –

GPG & CBRE

IFM Tier 1 model is

socialized in EMEA

& renegotiated in

Asia

APP for IFM deployed

IFM Tier 1 renegotiations:

LATAM

GPG audit established for

CBRE Sourcing practices

IFM Tier 1 model v1

established: EMEA

Tier 1 TM contracts

reviewed & extended with

new SLAs and R&R

3-yr IFM Tier 1

roadmap

Established enhanced

oversight Tier 1 PM & IFM

sourcing of Tier 2s

SSJ process formally

defined for Tier 1s

Gain Share program

operationalized

GPG partnership

with RE&F:

Integrator contract

“oversight”

RE&F asked MS

Procurement to be more

“hands on” in PM projects

and IFM service RFPs

* Automation of

IFM APP & IFM

spend Dashboard

JCI purchased by CBRE:

heavy involvement by

GPG and CBRE Sourcing

(Conflict of Interest)

* Rationalization of

Tier 2 spend globally

* Responsible Sourcing in

RE&F category

Tier 1 PM contracts

reviewed & extended with

new SLAs and R&R

* Initiatives in progress

* Broader support of RE&F

category within MCIO

Support for

MS Retail

Stores

Support for

Factories

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Talk the Talk: Achieve Objectives by Speaking

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Microsoft Olga Perelman

[email protected]

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