CoreNet Paris Discovery Forum 4 June 2014

Capgemini’s global Real Estate organisation

Caroline Sturtz-Verdier

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Welcome!

Introduction: Why did we want a global organization?

Driven by requirement from CFO to make strong cost savings and operate globally Driven by a willingness to share best practices and use common tools and processes Real estate is a business enabler, we need to maximise use of the assets Be proactive not passive - anticipate & determine the Real Estate strategy Gather the real estate expertise together to have economies of scale

First steps taken by Capgemini to become global & deliver benefits

Next steps and additional benefits of central processes & tools

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Global team: first steps

Rationalization program

Rationalization program

Portfolio databasePortfolio database

Common chart of account

Common chart of account

Re-organization by Region

Re-organization by Region

Authorization process

Authorization process

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5 regions with a common governance and common processes

Nordics

Benelux

UK

Southern Europe

Eastern Europe

NAR & LATAM

India Australia &NZ

China

Vietnam

Singapore/HK/Dubai

Malaysia

Philippines Taiwan

Japan

Southern Europe

Southern Europe

Eastern EuropeEastern Europe

NAR & LATAMNAR & LATAM

Northern Europe

Northern Europe

AsiaAsia

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Priorities for the Corporate Real Estate team

Action Benefits

Organization by Region • Single Region Head appointed• Sharing of knowledge, • Increase the speed of response by region

Authorization Process • Greatest scrutiny of spend• Greater accountability• Review of commitments

Global Rationalization Programme • Cost savings are possible as overview of the total portfolio & focus on quick wins• Single Real Estate strategy removes subjectivity• Sharing of Best Practices

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Priorities for the Corporate Real Estate team

Action Benefits

Single Chart of Account •Agreed typology of spending: clear idea of the cost of each spending in the real estate sector•Comparative analysis is made possible

Portfolio Database • Accurate knowledge of the number & status of current leases and commitments• Review of each break option or expiry end lease date can achieve savings• Total visibility of the commodity• Ability to see the breadth of the portfolio to make changes• visibility = control

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First steps then bigger steps…

Q1 2013 Q 2013 Q1 2014 Q2 2014 Q1 2015

First stepsREorgani

zationREorgani

zationRationalzationRationalzation

PortfolioPortfolio

AccountingAccounting

AuthorizationAuthorization

Global CRE support services

Space OrganizationSpace Organization

Space ManagementSpace Management

FMFM

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Benefits of the Second steps

Action Benefits

Global Shared Services • Support of new space request• Support of the rationalization plan

Space design standards and project delivery

• Turnkey office delivery• Key for the authorization process for new or the renewal of leases

Space Management • Space saving due to better seat allocation• Seat forecast will allow to planning lease renewal• Encourages a responsible attitude

Facilities Management • The same « customer experience » for employees and clients• Cost savings – standardisation of the service• FM is not a core business offering (external resources)

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Benefits of a Global Shared Services team

CRESS(Corporate Real Estate

Support Services)

Capgemini Business unitsProcess

External suppliers

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Conclusions

A global business must have a global Real Estate strategyVisibility of real estate commitments is key A common database and « real estate language » is essential for people to

work with aligned process. Convince the local Real Estate managers on the benefits of a global

organization - understand the motivation of each individual to « buy » and contribute to the new organization.

Convince the business about the benefits of a global organization, taking over from business’ actions

Also, Regional Managers are key to deploying the process and the need to willing to work together

What you don’t measure, you can’t manage Capgemini already seeing rich rewards for Real estate team and our people