February 8, 2013 Lydia Jacobs-Horton, Director, Global ... · Lydia Jacobs-Horton, Director, Global...
Transcript of February 8, 2013 Lydia Jacobs-Horton, Director, Global ... · Lydia Jacobs-Horton, Director, Global...
February 8, 2013 Lydia Jacobs-Horton, Director, Global Facilities & Real Estate, GBS
P&G at a Glance
• Founded
• Countries of Operations
• Countries Where Our Brands Are Sold
• Consumers Served by Our Brands
• FY2011-12 Net Sales
1837
75
180
4.6B
$83.7B
50 Leadership Brands
• Among the world’s best-known household names.
• Represent 90% of P&G sales, more than 90%
of profits.
• Includes 25 billion-dollar brands.
Our
Purp
ose
To improve the
lives of the world’s
consumers, now and for
generations to come.
Global Business Services Worldwide Operations
• GBS not just IT or HR… but all aspects of business
• Employee Services and Business Services across 75 countries
• Driving innovation and scale
F&RE at a Glance
Countries of Operations 75
Total Properties > 1,000
Office & Technical Center Properties 130
F&RE Employees 70
JLL Employees (excluding service staff, eg, dining , cleaning) 700
Responsible for Global: Real Estate Strategy & Transactions Office + Technical Ctr Operations Office + Technical Ctr Capital Projects
Jones Lang LaSalle at P&G
• Global Agreement est. 2003
• Facilities operations
• Hard & soft services, meeting
services, project
management, space &
occupancy planning
• 17MM SF fully managed
portfolio - office, tech ctr, salons
• F&RE IT
Facilities Management & Real Estate • Global Agreement est. 2008
• Portfolio Strategy and
Occupancy Planning
• Transaction Management
(buy, sell, lease)
• Lease Administration
• 130MM SF P&G Portfolio -
office/tech/plants/DCs
P&G Facilities & Real Estate
Jones Lang LaSalle Global Leadership Team
JLL Real Estate Services
Transaction Management
Portfolio Management
Jones Lang LaSalle Facilities Services
Facilities Operations
Soft Services & Employee Amenities
Project Management
Operational
Excellence is Base
10
• Support P&G business on a
highly reliable basis
• Exceed stewardship
objectives: Risk Mgmt,
Quality Assurance & Fiscal
Controls
• Protect, maintain and
increase long-term asset
value of P&G’s property
• Innovate to drive business
effectiveness and employee
productivity
Operational Imperatives
Applying P&G Proven Business Model to Improve Results
Innovation
Winning with
Productivity
Improving
Focus on
40/20/10
• Population is forecast to grow
800 million people with ~95%
from developing markets
• ~1.4 billion new middle class
consumers in developing
markets by 2020
• Americans currently account for
20% of middle-class spending
& are expected to represent
only 8% by 2030
Developing Markets Market Growth Potential
FY 09 FY 10 FY 11 FY 12
Developing
Developed
FY P&G Results
Organic Sales Growth led by Developing Markets
Developing Markets Start Ups
FY ’13 & ‘14
New Plant
Start-ups
• China
• Brazil
• Indonesia
• Nigeria
Technical
Centers
• Singapore
New Category
Start-ups
• Poland
• Venezuela
• India
Planning Centers
• Cairo
• Warsaw
• China
• San Jose
Regional Demographics
JLL
Notes:
• JLL Excludes: dining services, cleaning, mechanics
• CEEMEA & LA - highest dispersion
• CEEMEA & Asia - highest complexity, demand
F&RE
Challenge: Develop F&RE expert
resources in areas of highest complexity
Asia
CEEMEA
LA
NA
WE
Asia
CEEMEA
LA
NA
WE
Improving Productivity and
Creating a Culture of Productivity
$10
billion $6B
COST OF GOODS
$3B OVERHEAD
$1B MARKETING
Our productivity and cost savings
plans will help fuel top-line growth,
ensure our consumer value
propositions are superior,
overcome macro headwinds and
deliver better bottom-line growth
$3 bn Overhead Opportunity
Organization Design & Simplification
• Eliminating duplication of work
• Simplifying through Digitization
• Optimizing number of Business
Units & Functions
• Optimizing our Global Footprint
Productivity Plans
Overhead
Strategic Portfolio Management
Enables Real Estate Optimization in a way
that…
• Enables faster/better decision making via enhanced analytics, clear accountability, stronger business unit connections and proactive planning.
• Establishes on-going, proactive strategic real estate plans developed in partnership with business leaders.
• Focuses real estate decisions on P&G as an enterprise versus individual business units.
REAL ESTATE NETWORK STRATEGY SHEET
NETWORK DETAIL
NETWORK MASTERPLAN
• 1-2 YEAR MASTERPLAN HIGHLIGHTS – Maintain Option on land adjacent to Rummels DC – Extend option if necessary• 3-5 YEAR MASTERPLAN HIGHLIGHTS – eliminate NGW & Buncher and build-to-suit in West Branch; optimize GBO outside
warehouses – optimize Corporate Park distribution center• CROSS-BU OPPORTUNITIES/PLANS – have considered most recently with Home Care and Brantford CDC; none yet. Pet Care to
take space at Swing Road for OND and considering long-term use.
OPPORTUNITIES/RECOMMENDATIONS/HELP NEEDED
•CP3 to be subleased to CM. COP/reco in progress• IC/GBO – evaluate network optimization at both networks (per IC) – ON HOLD• IC – what can we do to accelerate savings? Per Cheryl, Skip and Darin are looking at options to accelerate savings.• Buncher termination option extended 1 yr (Dec ‘11) with plan to be out by Feb 2013. NEW ROOF APPROVED ($3.5MM)!
07/08 08/09 09/10 10/11 11/12
0.295 0.06 0 0.918 TBA
Total MDO RE Cost Savings $MM (Hard Savings only)
NA MDO TIER 2 BH&WB NETWORK (Various locations, USA)
Portfolio Snapshot:
MDO AD Finance Mgr HSE Mgr MDO Engineering Operations Mgr
Cheryl Mckettrick Carla Allen/James Chung
Sean Broderick Andy Poole/Carlos Shipley
Skip Tappan
Facility Size (sqft) Leased/Owned/3PL Expiration Operator Lease $/yr ** AU KPI (10/11 FY)
West Branch DC 781,800 Owned n/a Schenker n/a 0.37
Rummels DC 514,957 Leased 6/19/2017 Schenker 1,543,263 0.37
Buncher DC 346,062 Leased 12/31/2016 Schenker 1,104,135 0.37
NGW DC 350,000 Leased 5/31/2013 Schenker 1,190,000 0.37
CP2 504,000 Leased 1/31/2017 Schenker 1,750,303 0.32
CP3 243,800 Leased 12/31/2012 Schenker 969,827 0.32
BROWN SUMMIT ONSITE 820,000 Owned n/a P&G n/a 0.32
SWING RD ONSITE DC ~210,00 Owned n/a n/a n/a
Owning BU: MDO - NA
Site Contact(s):
** Base rent only
Cube fill rate
Pallets/m3 Capacity Utlization
Asset $/pallet
tba tba tba tba
AU KPI Measures (TBA)
leased41%
Owned59%
*NA DC SPACE~25.5 MM sqft
*All DC space, incl. @plants
$29.2MM/yr
leased75%
Owned25%
*MDO TIER 2 SPACE~7.2MM sqft
*MDO managed space only
Innovation in Analytics
Howard Berger Managing Partner, Realcomm
Top 45 People to Watch in 2013 We believe that with the new paradigm shift towards automation and technology changing the way we manage and operate commercial real estate, it is the commitment of these visionaries that will pave the way for future success. Here are the individuals and teams to watch in 2013: … Teams:
… P&G:: Dave Tufts, Jon Hodgdon JLL: Dave Johnson, Dan Probst, Chris Browne, Dipesh Shah …
DIGITAL WORKPLACE CURRENT BEST APPROACH DRAFT
Innovation in Workplace Design
“It’s time to go beyond current organizational flexibility programs and approach Flexibility as a necessary broad scale business strategy.”
Bob McDonald,
Chief Executive Officer
01 INTRODUCTION
P&G DIGITAL WORKPLACE page 23
The future workspace promotes collaboration, embodies flexibility and provides advanced technologies.
It supports a global workforce allowing choice and striving for no waste of space, time or resource.
It empowers employees to choose the workspace that best fits their need at anytime.
The new digital workplace design puts the employee at the center of an integrated solution to enable them to work at peak performance – wherever and whenever they choose
WIRELESS
DATA, VOICE
AND VIDEO
SOLUTION
DIVERSE
COLLABORATIVE
ENVIRONMENT
HEALTHY AND
SUSTAINABLE
ELEMENTS VISUALLY
STIMULATING
DESIGN
THE SERVICE
EXPERIENCE
WORKPLACE
BEST PRACTICES
EMPLOYEE
VISION
Work is what you do, not
where you do it.
01 INTRODUCTION
P&G DIGITAL WORKPLACE page 23
P&G DIGITAL WORKPLACE page 24
THE WAY WE WORK IS CHANGING
New technologies, shifting
demographics, and a Global
marketplace are requiring the
workplace to quickly change and
adapt. In order to stay ahead of
the competition we need to have
our workplaces ready to support
the following demands:
Variety
Interaction Transparency
Collaboration
Innovation
Mobility
User Experience
Flexibility
Productivity
Wellbeing
Sustainability
02 DIGITAL WORKPLACE
P&G DIGITAL WORKPLACE page 24
P&G DIGITAL WORKPLACE page 25
03 INTEGRATED DESIGN
DW
AN INTEGRATED & HOLISTIC APPROACH
The concept of Digital Workplace is an integrated and holistic approach using a combination of Space Design, Skills and Infrastructure. The objective of reducing real estate costs, optimizing investments in modern technologies and improving organizational flexibility to respond to current and future workforce demands.
P&G DIGITAL WORKPLACE page 25
26
DWP Application
Workplace Practices
• Program promotes flexibility and productivity
• Ergonomically friendly space
• Variety of work spaces used throughout the
work day
• Personal Well Being Score +12%
Digital Tools
• Lync Phone
• Skills Training
• Digital lockers, chargers anywhere, workstations
• include 22” Monitors, keyboard, Mouse, Risers
Space Design
• No enclosed offices
• Few assigned offices
• Desk sharing 120 – 140%
• 2x Collaboration seats
Our link to another P&G Top Priority
Environmental
Sustainability
Product
Innovation
Operational
Excellence
• F&RE resources are prepared
for P&G’s shifting footprint and
increasing focus on
optimization
• Digital Workplace will bring us
to top of Peer Group in
workplace innovation and
productivity
Applying P&G Proven Business Model to Improve Results