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Thus, there are typically options available. But as his company grew in size and complexity, and as the company made acquisitions, he concluded that the best-in-class model was simply too difficult to manage and was not sustainable, especially for a company with a great deal of small transactional work.
This attendee's company has shifted from a best-in-class model to a preferred model for the U. A dual provider model can have significant advantages. More than a decade ago another attendee's company had decided to move to a single service provider. In talking with multiple providers, the company found that they liked some bits and pieces of one provider but didn't like other things.
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There was not one provider that completely met the company's needs. So, the company ended up going with dual providers; one is primary and one is secondary. This model has worked well and has remained in place. Then, even with that model, when entering a new market, the company still looks for the best provider for that particular market.
For large global companies a true global master service agreement can be the best option. In one of the companies represented at this program centralized its global real estate, which was primarily in North America and Europe. From to the company evolved from a best-in-market model to a pool of preferred providers, which was mainly two or three large firms, depending on the region.
At that time, several factors caused the company to rethink its services model: The company experienced compliance issues as some regions weren't following global processes. Reducing overhead costs became a company imperative. The company announced a major global restructuring program. Based on this confluence of factors, the corporate real estate team saw an opportunity to do something different and take real estate to the next level.
They concluded that managing services market-by-market or region-by-region wasn't adequate to truly impact costs. At that time, the real estate team developed a vision for the total real estate lifecycle, on a global basis. They put in place a structure through an MSA with an outsourced provider to handle all the tactical details, freeing up the CRE team to execute on the broader vision. To select the service provider and create the MSA, the company engaged a consultant to guide the process.
The consultant helped the company develop and execute the RFP and understand the strengths and limitations of each service provider. Ultimately, the company accepted that none of the providers can do everything but selected the one provider that fit best. Note that the preferred planning and marketing lead time is six months. The organization's first foray was an exploratory meeting in Singapore in Novemberwhich drew almost 20 attendees.
Ina return engagement to the city pulled in more than The consistent response has been lots of enthusiasm for the prospect of local access to a corporate real estate organization for professionals supporting manufacturing environments.
Program Development Teams The key to IAMC's early progress in the Asia and Europe regions has been dedicated planning teams composed of IAMC Active and Associate members — those with international responsibilities and others with a passion to take IAMC global — partnering with selected real estate professionals located in the target regions.
IAMC staff provide operational and administrative support.
Master Service Agreements: Identifying CRE Best Practices
Our biggest successes have been in Singapore and London. And we're seeing lots of interest in an upcoming March 26 event in Shanghai.
The current challenge is to identify local "champions" in the cities worldwide where IAMC finds an established base of industrial real estate professionals who understand the value proposition that IAMC provides. Building a Governance Structure One of my first impressions of IAMC when I joined in was the difficulty engaging the organization's leaders on the issue of international expansion and networking. I didn't understand why the organization had no presence outside the U. I already knew many of the Active members, and I knew many had overseas responsibilities.