One of the salient findings of the CoreNet Global Gallup Survey of Corporate Real Estate 2010 is the projected shift of risk from corporations to their service provider partners. While outsourcing and other forces offer greater reward for corporate services firms, they are also assuming more risk.

UK-based Land Securities Trillium is on the leading edge of this important industry transformation with a business model that "takes on leasehold liabilities and frees up client cash," according to Trillium CIO Nick Foster. He described the company’s main thrust as "property outsourcing, a new way to make property work (by) freeing up capital and reducing costs" for clients including the BBC, British Telecom and Norwich Union.

The fact that the firm’s CIO led the awards presentation of the Trillium case is also noteworthy, suggesting the strong tie of the mix of services offered to technology and effective data management, which is why the company’s risk assumption mitigation models are mostly web- and technology-based.

"Business workspace is integral to, considered part of, the business strategy" of clients’ strategic focus, said Foster, who listed facilities management, gap projects, service delivery and flexible estate strategies as specialties of the firm launched in 1998. The mix is pointed toward a single objective: to "de-risk property occupation" on behalf of clients.

Today, Trillium owns and manages 8,400 properties largely in the UK and Europe with an in-house staff of 1,500 and an outsourced employee pool of 10,000 support personnel.

Foster’s colleagues outlined several key technological products that help occupiers realize more effective asset management.

Information Systems Project Manager Wendy AAntaw profiled the company’s ConCoRD system which tracks the full life cycle of contracts from "bidding to steady state." ConCoRD is a web repository capturing information about all phases of building and facilities contracts including negotiation, mobilization and transition. Antaw said that ConCoRD provides for "the controlled collection of the right data." The benefits are reduced time lines, improved risk control and improved competitiveness. "ConCoRD is a driver of operational efficiency because it gets the letting of contracts off on the right foot and makes for smooth transitions from one project phase to the next. The higher quality of data that we provide, the better the service from day one."

Trillium assumes risk on a long-term basis. Many of its current client contracts run at least 20 years. Through another platform known as Athena, the transfer of risk can be managed for as long as 30 years. According to Customer Services Director Alison Coote, Athena "raises the level of discussion from the transactional to the strategic."

Athena takes data from client operating systems in real time and can be configured by individual contract to meet the required service level agreements (SLA’s) needed for Trillium to be able to meet its and the client’s objectives. It offers a comprehensive view of all key financials and other performance indicators along with snapshot reporting and full client – service provider access. Chief benefits are a shared view of performance, operating efficiencies and strategic focus. "It’s all about building trust through transparency," Coote emphasized, so that clients see the extent of risk assumed by Trillium while both can monitor progress and outcomes to their respective bottom lines.

Another tool, Vista, provides a financial forecasting model. This resource informs the planning and budgeting processes that anchor any business plan. Vista is comprehensive, offering financial models for each property it owns and manages for client occupiers. The system enables control of data, up-to-date forecasts, and the ability to change calculations by different scenarios but is less resource-intensive in its execution. "It’s a real-time financial model and engine," added Antaw. Vista also delivers the capacity for continuous re-forecasting, improved data quality, resource efficiency, accessibility of data, and monitoring progress. It’s ultimately a tool to used to understand the long-term implications of shared strategies and shared gains, with Trillium committed to sharing profits with clients. "Though enhanced transparency, efficiency and scalability, business needs are converted into reality," Antaw noted.

– Richard Kadzis