Ever wonder why most Corporate Real Estate outsourcing arrangements fail to deliver the client what they originally wanted? It’s because they are designed to be punitive. Instead of rewarding performance, they look 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, we designed a revolutionary approach that develops relationships first and then implements the right performance management and governance criteria for the engagement between the client and service provider. 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 outsourcing goals are clear, achievable and realistic.
Then, we engage service providers that have the capabilities to match the client’s needs.
Prior to issuing the RFP, we facilitate in-person working sessions in which the service providers can assess issues and challenges by direct interaction and discussion with the client’s corporate real estate and facilities team as well as their legal and procurement teams.
We then solicit written feedback from the service providers on the takeaways from their meeting and “reverse engineer” the RFP. This way, the RFP questions are clearly and directly applicable to the client’s situation and desired scope of work (SOW).
We recommend that 20-30% of the client’s service provider selection criteria is behaviorally-based, evaluating such characteristics as: team chemistry, collaboration, commitment, engagement, and responsiveness. We measure this throughout the process by leveraging the service provider’s talent and creativity through gamification and subjectively evaluating team chemistry and individual personalities.
We provide end-to-end support, overseeing the entire outsourcing process from needs analysis through account transition. This helps ensure the relationship starts out on proper footing and has staying power. We help create performance management and governance plans that are both fair and reasonable.
Download our Outsourcing Services Slide Deck.
If you already have a Corporate Real Estate service provider relationship in place, we can help you in 3 key areas by playing one or more of the following roles:
Chances are, your outsourcing situation is a direct result of one or more deficiencies in the transition to your existing service provider. Again, we go back to the need to perform a Discovery process on the front-end as well as a strong focus on transition. Here’s a presentation describing the Nine Steps to a Healthy Transition.
Ah yes, the million-dollar question. Luckily, the answer is…NOT a million dollars! Our 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 work as a Fixed-Fee, GMP (“guaranteed maximum price”), and the total fee is broken down into monthly equal payments. This gives every client a clearly defined budget and no surprises.
We can price our services confidently because we are expert in accurately estimating the time it takes to complete an outsourcing initiative. And unless you materially change the scope of work, you won’t pay us more if it takes longer to complete the process.