For a global credit card company that had outsourced most of its real estate and facilities management to a single provider, we benchmarked the contract terms and the service provider's performance against industry standards. The result was a stronger negotiating position for the client, which ultimately renewed the contract at a significant cost savings.
Industry: Financial Services Focus: Benchmarking and Sourcing Strategy
For a leading publishing company, we benchmarked the existing global full service contract against other recently negotiated global agreements, and highlighted areas for improvement in contract terms, management fees, transactions rebates/discounts, project management and technology. Later, we conducted a sourcing strategy assessment to help the client decide whether or not to pursue a new outsourced management solution and contract structure. The strategy ultimately led to an RFP process and selection of a new global provider.
Industry: Investment Services Focus: 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.
Industry: Insurance Focus: Contract Negotiations
For
a major insurance company, the Capstan team helped negotiate a unique
partnership that aligned the company's interests with its service
provider's through shared risk and returns. The compensation structure
aggregated all fees paid to the service provider into a separate
account profit center. The expenses of the service provider account
team, including salaries, benefits, expenses and overhead were paid
from the account profit center. Annually, any profit remaining after
these expenses was split between the service provider and client based
on results as measured against key performance indicators.
Capstan
team members completed a strategic plan to cut 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.
