Daily Reports Direct from the CoreNet Global San Antonio Summit Tuesday, November 9 8:30 am – 10:00 am General Session Leadership Challenge: Balancing Speed with Deliberation Summit Keynoter L. Paul Bremer III, Ambassador and Strategic Consultant Ambassador L. Paul Bremer took on an impossibly complex role as the coalition administrator in Iraq. A colleague of his once told him he was "part CEO, part General, part Olympic athlete, and part President" to which Bremer himself adds that he was also "full-time therapist to a country of 25 million people suffering from post-traumatic stress syndrome." When he arrived in Iraq in 2003, he found a country devastated by 35 years of catastrophic economic management and wars. The government had one revenue source, oil, but without the tools or ability required to produce enough to support the country's own needs, there was no oil available to sell to the outside world. Unemployment was at more than 50 percent and inflation rates hovered at 115,000 percent. In short, the country was in chaos and if it were a corporation, it would have been bankrupt. Worse, Bremer had nothing in recent history to draw on for clues to fixing the situation. "I couldn't go to the library," he said, "and check out Harvard Business Review to find the best practices for occupying powers. That just doesn't exist." In Tuesday's General Session, Ambassador Bremer offered "Eight Steps for Effective Leadership:" 1.) Set a Vision and Communicate It Relentlessly. It is vital, he noted, to communicate constantly to your staff that what they do is important and valuable. 2.) Set an Example. "When I made impossible demands on my staff – which I did daily – they knew I was asking nothing from them that I didn't ask of myself," Bremer said. 3.) Set Clear Priorities and Goals and Measure Progress Toward those Goals. "We finished our first strategic plan by July 4 and published the plan so that everyone was in the loop," he said. "I found many civilians weren't accustomed to setting and quantifying goals, so we used a military model in setting the plan. During the occupation, 18,000 reconstruction projects were completed that were established by that plan." 4.) Be Decisive. "Leaders want all the facts before making decisions, but you'll never have all the facts," he said. "You must find the right balance between speed and deliberation." 5.) Be Flexible. Leaders must not allow commitment to the goal to demolish flexibility. "Don't let your plan become a straight jacket," Bremer said. He said the optimal balance is strategic clarity and tactical flexibility. 6.) Delegate and Hold People Responsible for their Performance. Bremer says people get great satisfaction from successfully completing difficult tasks. "People learn by doing," he said. "They learn by getting thrown into the deep end of the pool." 7.) Give Credit – Loyalty Is a Two-Way Street. "I never missed a chance to thank my colleagues for their tremendous effort and sacrifice," Bremer said. "You must let the staff know that YOU know who is doing the work." Stand up for your colleagues and they will stand up for you. 8.) Keep Your Perspective. There are five points in this eighth step to effective leadership: Cultivate an understanding of your own strengths and weaknesses; Find time to reflect; Understand the race you are in; Keep a sense of humor, and Don't get carried away with your own importance. In a crisis, Bremer concluded, the stakes are high and the pressure is great. But a leader must never panic; instead, be objective and focus on the basics of the situation to find a solution. Global Innovators Award Winners Announced Ten finalists traveled to Harvard University in August to judge the 2004 Global Innovators Awards, sponsored by Equis, Deloitte, and Gensler. The winners were announced at Tuesday's General Session: Bank of America for its partial-sale leaseback transaction; BP for its sustainability in corporate real estate innovations; and the San Diego Regional Economic Development Corporation for its Partnership for the New Economy initiative. Bruce Russell Retirement CoreNet Global Chief Learning Officer Bruce Russell will retire in January 2005. His successor, announced at the Tuesday General Session, will be Dr. Prentice Knight, whose current position is Vice President of Discovery. CRC Raises $50,000 CoreNet Global would like to thank all of its supporters for making this Community Reinvestment Challenge (CRC) a huge success. The CRC raised approximately $50,000 for Alpha Home and Mission Road Ministries. We look forward to another successful CRC during the Toronto Summit in April. CRC exhibit at EXPO 10:30 am – Noon Educational Breakout Session Core 2010: Solutions Delivery. Aligning Core Competencies, Outsourcing Strategies and Service Provider Relationships. Presenter: Barry Varcoe, Head of Group Facilities and Logistics, Group Purchasing and Property Operations, Royal Bank of Scotland Moderators: Mary Pat Rick, Marketing Program Manager, Johnson Controls Bill Braun, Director of Client Solutions, Cushman & Wakefield The session began with Braun's summary of Solutions Delivery in the CoRE 2010 research initiative. Eight study groups considered solutions delivery, the major forces in the world economy that are changing the business environment, and how integrated resource infrastructure management (IRIS) will effect how internal corporate real estate and external networks look in 2010. Some key findings from CoRE 2010 Solutions Delivery include: Core internal competencies: financial acumen, corporate real estate management, and alignment with strategic goals Outsourcing will increase IRIS will become a best practice Smaller set of preferred service providers Networking of interdependent partnerships with shared risks and rewards Blurred boundaries between what is inside and outside the corporation Varcoe presented a case study describing how the Royal Bank of Scotland (RBS), the fifth largest bank in the world, created great change in their corporate real estate (CRE) function. RBS CRE saw average performance levels, but the financial company required world-class performance. The CRE group looked at the standards and practices in the industry and decided they weren't good enough for their needs – so RBS CRE decided not to outsource. The group needed to implement sweeping change. To do this, they needed to to include nearly everyone in the process, which included more than 200 managers. They considered strategic use of innovation: What to use and how to use it. The group came up with three innovative programs to drive down costs while meeting their goal of 100 percent delivery of services. Reverse Auctioning. Service providers are invited to participate in a reverse auction after they meet RBS CRE requirements for technologies and services. After the bidding is complete, RBS requires the services provider's business model to determine it still meets requirements. The on-line bidding kept all previous stages competitive. Co-Sourcing. In this integrated approach to service management, RBS CRE worked with suppliers to align processes. The "one team" ethic improved the overall quality of service and was cost neutral. Partnering. RBS decided on the strategic focus – do what they do well, and work with a partner to help with the rest. 10:30 am – Noon Educational Breakout Session CoRE 2010 Enterprise Leadership: Winning the Leadership Game at Shell - Moving to the CoRE 2010 Leadership Model Moderator: Wayne Peacock, Sr. VP, Corporate Real Estate (ret.), SBC Communications, Inc. Panelist: Mike Napier, Chief Executive, Corporate Real Estate, Shell International Managing the globally networked corporate enterprise means that corporate real estate professionals need to develop and deliver skill sets that go well beyond traditional real estate competencies. For Shell International's head of corporate real estate (CRE) Mike Napier, enterprise leadership has become a cornerstone of the company's new asset management thrust, started in 2001. The multinational has annual sales of $72.8 billion, a global workforce of 119,000 employees and locations in more than 145 countries. With 65,000 properties owned and leased worldwide, Napier is building a process-based leadership model to optimize Shell's "extremely diverse portfolio." The newly implemented department plan is already generating substantial ROI, adding $300 million in value in 2003, according to Napier. As part of his "relentless attention to delivering value," Napier has introduced a customized management tool called "Real Link," which informs all real estate decisions surrounding the management of any facility's total life cycle and is linked to the Shell business plan. Real Link has "given us a seat at the senior management table," he says. Napier outlined the key competencies for future CRE leaders as he views them through the Shell real estate and workplace team of 280 staff professionals working with an annual department budget of $350 million. The skill set reflects Napier's belief in a structure that "assembles a team with a blend of these competencies that no one person possesses . . . ." These key competencies are: business knowledge ("Know the business inside out or you will never succeed or differentiate yourself from the market or outside service providers," Napier advised); proactive visioning ("Think ahead constantly, anticipate change and most of all think strategically;") change management; relationship management ("To play a leadership role, you must relate effectively to all stakeholders: corporate leaders, the markets, internal customers and many other vested interests;") strong cultural awareness ("We cannot impose a solution from one region to another;") project management ("Understand what it means to meet deadlines and achieve results; delivery is key;") commercial acumen ("Negotiating, contract management – these and other skills are crucial to effective real estate management and the creation of value including cost savings;") financial skills; technological awareness ("IT drives workplace design,") and real estate management ("The most obvious skill set - and, while the others are becoming more important in today's world, we still need basic transactional, project management, facilities management and other related skills, too.") 2:00 pm – 4:00 pm Educational Breakout Session CoRE 2010 Sustainability and Social Responsibility – British Petroleum, Global Innovator Award Winner: Balancing People, Planet and Profit in Meeting Corporate Sustainability Objectives Moderator: Nick Axford, Sr. Director and Head, CB Richard Ellis, EMEA Research & Consulting Panelists: Juliet Filose, General Manager, Global Real Estate, British Petroleum Stephen Smith, Group Head of Facilities Management and a member of the ABN AMRO Global Sustainability Team Michael Creamer, Executive Managing Director, Client Solutions, Cushman & Wakefield Francesca Hughes, Director, Jones Lang LaSalle Martin Dugan, Sustainability Consultant "It is real. It is genuine. It is not just a phase we are in." CoreNet Global Board member Simon O'Reilly of Cushman & Wakefield opened the session by emphasizing that corporate sustainability is the future of the industry, and one of the chief benchmarks that measure corporate performance in today's environment. Key drivers of corporate sustainability include globalization and outsourcing, consumer pressure, legislation, and investor demands. While the upfront costs to corporations may be higher, many businesses are willing the pay a premium when they realize that life-cycle costs bring greater benefits to the triple bottom line. Costs will drop as technology is standardized and the perception of what creates the industry standard shifts. Nick Axford of CBRE stated that this shift in perception comes only with conscious effort and dedicated staff. Two such companies to embrace corporate sustainability are BP and ABN AMRO, the winner of this year's 2004 Sustainable Design Award. In her presentation on BP's culture change, Juliet Filose, General Manager, Global Real Estate, spoke of the influence each of us can make on the corporate culture. Stephen Smith, Head of Facilities Management at the Dow Jones Sustainability Index's lead-ranked corporation, ABN AMRO, stated, "You have to start somewhere." Both case studies acknowledged that once the conversion to sustainability commences, there will be challenges to overcome on one hand, and, on the other, new opportunities will arise. With flexibility, transparency, and dedication, the corporate real estate industry can achieve and advance sustainability and corporate responsibility. 2:00 pm – 4:00 pm Educational Breakout Session Personal and Professional Development: Thinking About a Career Change? Learn From An Expert! Moderator: Lynn Cherney, Partner, Heidrick & Struggles International, Inc. Managing your career should be a priority whether you're actively seeking a change of jobs or paths or simply wanting to make the most of the job you have, according to Lynn Cherney, a partner with the executive search firm Heidrick & Struggles who specializes in C-Suite-level recruiting in the real estate sector. Considering a change? Cherney's advice: evaluate your skills objectively in light of the proposed shift of careers and carefully consider how such a move will affect your family and personal responsibilities. Panelist Phil Cyburt shared his experiences garnered in a move from heading a corporate real estate department to starting his own firm. Cyburt offered these tips for succeeding in the world of real estate: build your reputation as a person who gets things done; build trust within the organization, and recruit a mentor who will share his or her experiences to aid in your personal and professional development. George Bouris, MCR, a practice leader with Deloitte & Touche, said the No. 1 rule in making the transition from a corporate real estate executive to a consultant is to "check your title and ego at the door, because all that matters is what you can do for the company." Panelist Lynn Kious described her transition from a service provider to a corporate real estate executive, noting the importance of remembering that "you are no longer the hired gun," and must build strong relationships with colleagues because it is essential to be able to collaborate in order to develop strategy and sell that strategy within the company to succeed.