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Capstan worked with the new CRE leadership team of a global financial services technology company to develop a Strategic Plan to drive centralization, process improvement and cost reductions across the portfolio. We helped the team define their mission, values and objectives and conducted a Maturity Assessment and analysis of operational, organization, technology, reporting and resource gaps that needed improvement. We then facilitated sessions where the team prioritized its strategies and created tactical plans to implement key initiatives. Finally, we drafted communication, training and change management plans to enable implementation over the next year. CRE Strategy For a major bank, Capstan team members completed a Strategic Plan to reduce occupancy costs while aligning workplace design with the Bank's brand, culture and working style. Bank employees valued teamwork and collaboration, and spent much of their workdays in meetings with project teams. Private offices went largely unused, while conference spaces were at a premium. The new workplace design provided less dedicated personal space but more team environments. The strategy resulted in a 20% reduction in the costs to house an employee, and improvement in employee satisfaction and productivity. Process Improvement A leading insurance company's goal was to drive a 25% reduction in field office costs and to improve customer satisfaction with the CRE team. Capstan conducted a Process Improvement Study to improve the efficiency and productivity of the transaction management and project management functions. After analyzing the portfolio and benchmarking performance metrics, we interviewed CRE staff and their internal customers to identify conflicting goals and bottlenecks in the key processes. Through collaborative client-service provider workshops, we facilitated discussion and agreement on ways to streamline approval and delivery processes in field office renewals, relocations, expansions and dispositions read more |
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Financial Services Capstan was hired to assist an international financial institution in sourcing of Facilities Management and Transaction services for its 32 million square feet in 72 countries. The Bank’s sourcing strategy was to contract with multiple service providers by service line and/or geography and to provide a framework to allow the vendors to work in concert with one another. We assisted the Bank’s team in developing a governance structure with processes, metrics and mechanisms that could be applied consistently to each contract. We then led the effort to source all service lines including two renegotiated contracts and three competitive bids. The work required that Capstan coordinate the efforts of a globally dispersed selection team including CRE managers and specialists in HR, IT, risk management and legal. The Real Estate work stream was contracted with a single global provider. The FM work streams were contracted regionally under a unique pricing structure that guaranteed a percentage savings off of a cost baseline to be jointly agreed during due diligence in the transition periodmanage an RFP process to outsource the management of its facilities, projects and transactions to a single service provider. Team members worked with the managers of the operating divisions to reconcile requirements and better integrate with the selected service providers. The qualifications and bid process, which included extensive site due diligence visits, allowed the client to see the strengths and weaknesses of the bidders. The RFP process resulted in one provider for global facilities and projects and one provider for transactions management.
Benchmarking A global investment bank had outsourced most of its facilities management to three service providers. Customer service levels and satisfaction were very important to the bank, but there was pressure for cost reduction in the company across the board. And although the bank tracked over 50 performance metrics, it was unclear whether costs were "at market" or not. Capstan benchmarked the contract, service levels and the costs against BOMA and other industry standards for key locations and identified areas that appeared above market. Then we summarized the business case for contract renewals versus the potential cost savings of a competitive bid for the entire portfolio. The client's Facilities and Procurement groups met, reviewed our analysis, and decided to renegotiate with the incumbent suppliers using our report as negotiating leverage. |
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Manufacturing RFP Process Management |
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Aerospace Organization Design Next, we benchmarked the market for transaction rebates proposed against eight similar contracts, including the value of consulting services often delivered at little or no cost to major clients.to give the client solid footing for contract negotiations with the incumbent provider. |
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Professional Services After merging with a major competitor, a professional service company with 4 million square feet of Class A office space in major cities around the world retained Capstan to design a sourcing strategy to rationalize its outsourcing models. After weighing sourcing alternatives, the company asked Capstan to manage an RFP process to select a single service provider for global transaction management and lease administration services. A short list of four firms, including two strong incumbents, competed for the assignment through Capstan-led Solution Sessions, technology demonstrations, RFP and Best and Final responses. The contract negotiated with the winning bidder assured the company of a "high touch" solution responsive to business unit needs at a competitive price, reflecting market rate commissions by country and a global rebates/discounts schedule. Benchmarking A global professional services firm wanted to renegotiate its transaction management contract with a single service provider, but needed independent confirmation of market trends in contract terms and pricing. We benchmarked the agreement against similar global outsourcing contracts to test the competitiveness of the commission rebate structure and compare six other key metrics to industry standards. We also analyzed all transactions completed during the prior two years and proposed a compromise to resolve outstanding issues involving commissions and rebates. A new transaction management contract with a simplified commission structure and new service level agreements to improve performance management was quickly accepted by both parties. |
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Energy and Utilities Transition Oversight |
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Pharmaceutical & Health Care An East Coast hospital decided to outsource facilities and projects management to a firm that was managing other contracts for the group. Capstan was retained to help negotiate pricing, fees at risk and gain share/penalty provisions for labor and energy costs. We benchmarked the proposed terms and conditions against similar contracts in our database and facilitated negotiation planning sessions for the hospital's negotiating team. We developed service level agreements, key performance indicators and other contract terms, then provided guidance on transition and governance implementation. Sourcing Strategy Capstan evaluated facility management sourcing strategies for a Midwest healthcare company, providing expertise in defining objectives for the process, understanding the service provider marketplace, drafting an RFP and developing bidder evaluation criteria. The entire engagement was completed in just three weeks, allowing the internal team to launch an RFP process seeking a solution that could be rolled out quickly in the U.S. and expanded globally in subsequent years. RFP Process Management We conducted an Opportunity Assessment and analyzed potential savings from outsourcing the facility management, project management and soft services for a pharmaceutical company with a total spend of over $500 million in the U.S. and Europe. We collected data on labor, materials, energy and other costs, and benchmarked those costs against market data by location. We summarized our findings in a business case which projected that savings of 12-15% could be achieved in the near term. We then assisted in running three RFP processes with over 50 client team members that resulted in contracts with three providers to deliver Hard Services, Soft Services and Security. read more |
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Pharmaceutical & Health Care An internal client team of a major pharmaceutical company needed expert support for an RFP process and contract negotiations with two service providers to manage office and laboratory facilities in North America and Europe. Each contract called for a principal model relationship and a fixed price for all facilities operating costs. In contract negotiations, management relied on Capstan to provide market intelligence and practical experience to the Procurement-led internal team. During transition and due diligence, Capstan developed a contract training curriculum and materials for the client's stay back team as well as the new account team. Training sessions were held at major sites in the U.S. and Europe for client staff to learn the ins and outs of the contract. The program helped level set expectations for cost management and service levels and helped speed the transition of people and processes to the providers. |
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High Technology For a leading high tech company, we ran an RFP process including transactions, projects and lease with three leading global service providers. Key issues that were the focus of the solutions sessions and RFP/BAFO responses included project management skills in EMEA and Asia, transaction management software compatible with the company’s internal platform and pricing of dedicated and variable resources. The selected service provider offered the lowest cost solution through a a leveraged delivery model, with the lead project manager and transaction manager sharing account manager duties, staff coordinating both transactions and projects and lease administration centralized at a global processing center. |
