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Real estate outsourcing movement featured in new book showcases best practices for successful corporate real estate relationships
CHICAGO, Dec. 6, 2012 – Many companies have outsourced non-core operations, but few have managed the real estate outsourced relationship as effectively—and unconventionally—as Procter & Gamble (NYSE:PG), according to author, and innovator of the Vested® business model, Kate Vitasek. In her new book, Vested: How P&G, McDonald’s and Microsoft are Redefining Winning in Business Relationships, Vitasek tells the story of how the consumer product manufacturer’s relationship with Jones Lang LaSalle (NYSE:JLL) transformed the contracting approach to corporate real estate in what was the largest facilities outsourcing deal in history.
Through transformative contract parameters originally established in 2003, Jones Lang LaSalle was empowered to deliver on P&G’s goals of achieving cost efficiency while exceeding customer satisfaction targets for six consecutive years. During that time, P&G’s Global Business Services (GBS) division reduced cost as a percentage of sales by 33 percent for its outsourced operations including the work with Jones Lang LaSalle, says P&G in Vested.
Unlike a traditional outsourced or business relationship, in which the real estate services provider focuses on daily service and the client corporation focuses on strategy, P&G and JLL are equally “Vested” in driving cost savings while maintaining guaranteed service levels, said Global Chief Operating Officer of Jones Lang LaSalle’s Corporate Solutions business Bill Thummel. ”We recognized very early on that we could positively impact P&G’s productivity, if together, we could shift the economics of outsourcing to an outcome-based approach focused on results, not individual tasks,” said Thummel.
Five Rules of Successful Vested RelationshipsVested illustrates, through the P&G and JLL story, five rules of successful Vested - relationships:
Results Behind the RulesDuring the companies’ first five years under contract, Jones Lang LaSalle evolved from being the newest of P&G’s 80,000 vendors to being “Supplier of the Year” for two years in a row and winning the P&G GBS Excellence Award for three years in a row. In May 2012, the two companies announced a five-year renewal of their agreement.
Vested: How P&G, McDonald’s and Microsoft are Redefining Winning in Business Relationships is available on Amazon. For a new case study summarizing the P&G and JLL relationship, visit the Vested website library at http://www.vestedway.com/vested-library/
A leader in the real estate outsourcing field, Jones Lang LaSalle’s Corporate Solutions business helps corporations improve productivity in the cost, efficiency and performance of their national, regional or global real estate portfolios by creating outsourcing partnerships to manage and execute a range of corporate real estate services. This service delivery capability helps corporations improve business performance, particularly as companies turn to the outsourcing of their real estate activity as a way to manage expenses and enhance profitability.
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About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. For further information, please visit www.joneslanglasalle.com.