Presenting the case for Colliers – UPS Store case were Colliers Corporate Solutions executives (from left) Brandon Mann, John Maher and Tony Katzer. Cosponsor Hans Gant of the Metro Atlanta Chamber joined them (far right).

Taking an integrated approach to an extensive portfolio of small retail outlets during and beyond a major M&A scenario is no small task, starting with the reality of its multidimensional nature.

The UPS acquisition of Mail Boxes, Etc. accomplished that high degree of integration via a harmonized set of strategies and processes instituted by Colliers Corporate Solutions in what was the first of three finalists to present in the brand-new Global Innovator's Award collaborative category.

"Retailers must be able to grow swiftly and seamlessly in order to retain customers after an acquisition or an expansion announcement," observes Colliers Executive VP John Maher. "Under the surface of positive M&A news, the potential for a logistical headache looms. Locations for new stores must be secured, leases negotiated, furniture ordered, signage posted, landlords paid - the list goes on and on. All of a sudden, a chain's straightforward plans for expansion become a much more convoluted undertaking."

That's how Colliers sold UPS on the innovative idea of going beyond the company to use an outside program management team. "Program management," as defined by Maher, "means a turnkey solution offering services from site selection through install coordination and includes all aspects of managing the people, processes, and technology necessary to deliver new locations."

Process design and its continuous management thus became the key leverage point of the UPS-Colliers strategic partnership, three years after UPS' 2001 acquisition of Mail Boxes, Etc. "First and foremost, getting dots on the map may be important, but this can fall apart quickly if the process is not managed properly. A qualified program management team can enable the growth strategy without the pitfalls that often accompany an internal real estate department," Maher says.

The Colliers management team includes Senior VP Brandon Mann. By 2003, a year before Colliers became UPS' partner, there were about 2,000 stores, Mann recounts. After rebranding was completed, the company set an aggressive goal of 5,000 stores by 2007, making Colliers "the program manager for the on-boarding of franchisees and the development of their stores," he says.

Maher expands on the concept and the innovation behind it:

"The unique concept of program management is the result of a dozen years of Colliers experience in managing more than 11,000 turn-key location programs for its clients. The fundamental practice which underlies Colliers success in providing program management services to The UPS Store and other clients is complete accountability of the Colliers location coordinator the for the delivery of a new business. This is unique because the conventional retail store development model bifurcates the disciplines of real estate and design/construction. In most large and/or fast growing retailers, the real estate and design/construction functions are performed in a linear fashion by separate functional teams."

As Mann reminds, it's all about process driven by a qualified team:

"The totality of the program management approach spans throughout our client's internal business processes. Colliers' first step in the engagement of a new client is focused on the development of a critical-path process for new store deployment. These tasks link together all participants in the store deployment process into more than 70 tasks which are organized into six overall phases."

All pertinent internal functions (accounting, legal, procurement, finance, and marketing) and external stakeholders (furniture, fixture, equipment, and signage vendors) are efficiently integrated.

The accountability for executing this critical path lies with Colliers' location coordinator. Location coordinators are assigned to new franchisees at the initial moment where a franchisee contracts with the UPS Store to become a franchisee. "From that moment," remarks Mann, "until the opening of the UPS Store, the Colliers Location Coordinator is responsible for 'quarterbacking' all aspects of opening the new business for the store and its franchisee.

Colliers' customized program management software, REflex, provides the technological backbone for the delivery of services, according to Mann. "Each step has a "dependency task" that triggers an estimated timeframe the next step will take for completion. The schedule identifies factors or steps that could potentially delay a project and tabulates each task's duration to help avoid delays. Using such a precision tool, the new stores' speed to market was virtually ensured."

• Accelerated speed-to-market: on average, it took a new store location 15 to 20 percent less time than usual to open
• Brand enhancement: corporate branding standards and goals are achieved with each UPS Store as it opens throughout the country
• Savings: for each lease a full negotiation report details savings from free rent, tenant improvement allowance, reduced base rent, and other reductions in the effective rate over the lease term - recurring savings now average 15% per lease
• Focus on core business: Franchisees continue to participate in the store opening process, but only at critical decision making junctures

As Maher summarizes about the integrated set of processes and technology it delivers to UPS' retail operations, "In order to stay at the forefront of the competitive pack, retail chains must act with lightening speed and coordination when opening new facilities or expanding after merger and acquisition activity - to avoid losing customers to the competition during hectic times of corporate growth. The retail sector is a fierce beast."