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Vested outsourcing in corporate real estate and facilities management
Corporate Real Estate Journal,
6
(4),
323-335
(2017)
Abstract
In 2003 the University of Tennessee began a research project tasked to answer a simple question: ‘Is there a better way to outsource?’ Researchers studied some of the world’s most successful outsourcing relationships, including Procter & Gamble, Microsoft and McDonald’s. Researchers immediately saw trends in these successful relationships where organisations were shifting away from transaction-based agreements to collaborative outcome-based outsourcing relationships that the researchers described as a ‘vested’ mind-set. Researchers codified their learning into a methodology they coined ‘Vested Outsourcing®’, or Vested for short. Today, Vested is referred to as a mind-set, methodology and business model that enables highly collaborative relationships in which buying organisations and their service providers are committed equally to each other’s success. Organisations that have applied the concept often refer to it as a movement because of its power to transform the way organisations outsource. This article addresses the fundamentals of Vested Outsourcing as well as its applicability to corporate real estate and facilities management, including under what circumstances it can be most beneficial. Case studies from within Corporate Real Estate and Facilities Management (CREFM) are shared, including TD Bank, Vancouver Coastal Health and Novartis.
Keywords: collaboration; real estate; facilities management; outsourcing; change management
The full article is available to subscribers to the journal.
Author's Biography
Kate Vitasek is a faculty member for Graduate and Executive Education at the University of Tennessee’s Haslam College of Business Administration. Her award-winning research has been featured in six books including: ‘Vested Outsourcing: Five Rules That Will Transform Outsourcing’ and ‘Vested: How P&G, McDonald’s and Microsoft are Redefining Winning in Business Relationships’. Her most recent book, ‘Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models for Modern Procurement’, has been widely endorsed by some of the most progressive procurement leaders across the world.
Ingrid Fenn is a highly accomplished corporate real estate and facilities management leader who has developed strategy and global portfolio platforms for a succession of major multinational corporations. Prior to starting up and leading SIREAS, she was Head of Global Real Estate for Covidien, a global health products leader. She is deeply experienced in emerging markets and navigating complex matrices of international laws and real estate practices. She currently works directly with the real estate and executive leadership of SIREAS’s corporate clients in designing strategic plans to cost-effectively meet their business goals. She manages SIREAS client engagement teams, and develops the third-party supplier and outsourcing relationships vital to helping manage clients’ portfolios and facilities.
