Ever wonder why Corporate Real Estate outsourcing arrangements fail? It’s because the relationship is designed to be punitive. Instead of rewarding service provider performance, the contracts are designed to punish missteps. This keeps the real estate service provider in constant “self-preservation” mode – worried more about survival than success.
It’s clearly not a sustainable model!
At Verum Consulting, our revolutionary approach develops the relationship first and then implements the right performance management and governance criteria for the engagement. At a summary level, here’s how we do things:
First, we engage the client in a Discovery process called V.E.R.U.M to ensure that the team’s own outsourcing vision and goals are clear, achievable and realistic.
Then, we engage the service providers that have the right capabilities to match the client’s needs.
Prior to issuing an RFP, we facilitate a series of in-person working sessions in which each service provider meets with the client’s team to assess issues and challenges. These direct and confidential interactions with the client’s corporate real estate and facilities team (as well as their legal and procurement teams) create a level of transparency and the foundation for partnership.
We then solicit written feedback from each service provider on their takeaways from these meetings. We use their feedback to “reverse engineer” the RFP by turning selected input into additional RFP questions. The additional RFP questions are clearly and directly applicable to the client’s existing situation and desired scope of work (SOW).
Finally, in our evaluation process, 20-30% of the service provider selection criteria is behaviorally-based, evaluating characteristics such as: team chemistry, collaboration, commitment, engagement, and responsiveness. We measure these attributes throughout the process by leveraging the service provider’s talent and creativity through gamification as well as subjectively evaluating team chemistry and individual personalities.
Unlike other consulting firms in this space, we provide end-to-end support, overseeing the entire outsourcing process from needs analysis through full account transition. This ensures the relationship starts out on proper footing and has staying power. We work with the client and service provider during transition to create performance management and governance plans that are both fair and reasonable.
Download our Outsourcing Services Slide Deck.
What if you already have a Corporate Real Estate service provider relationship in place? What if you’re not sure if you’re ready to re-bid your existing provider? We can play one or more of the following roles depending on your situation:
Chances are, your current outsourcing situation is a direct result of a major gap or deficiency the initial transition. Again, we believe a Discovery Process on the front-end as well as a strong focus on transition on the back end will solve these deficiencies. Here’s a presentation describing the Nine Steps to a Healthy Transition.
Pricing is always the million-dollar question. Luckily, our answer is…NOT a million dollars (although we will likely save you millions)! Verum’s pricing is customized for each client engagement and is based on the time it takes to execute the process end-to-end. We propose our services as a Fixed-Fee, GMP (“guaranteed maximum price”), and the total fee is payable in equal monthly payments. This gives every client a clearly defined budget to work from…and no surprises!
We price our services confidently because we are expert in accurately estimating the time it takes to complete an outsourcing initiative. Unless you materially change the scope of work (which must be agreed by both parties in writing), your price is fixed.