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Gary Noy, Director of Integrated FM at Pfizer - Facilities management services outsourcing
1. Pfizer EMEA FM Outsourcing
Gary Noy
Director, Vendor Management EMEA and APAC
Facilities Management and Property Event, Hilton
Hotel, London 18th April 2013
2. Click to edit Master title style
Purpose and Content
2
Purpose
• Describe FM outsourcing in EMEA
• Share some lessons learned
Content
• Background
• Pfizer
• Global Operations
• EMEA footprint
• Outsourcing in 2008/9
• Process
• Lessons learned
• Outsourcing 2014
• Current approach
3. Pfizer Today
3
manufacturing
sites worldwide
revenue
in 2012
$59BILLION
150countries
in which Pfizer
sells products
products with sales
greater than
$1 billion in 2012
R&D partner
institutions across
the globe
cash and products
donated from U.S.
and Puerto Rico
in 2011 globally
$3.1BILLION
Primary Care and
Specialty Care
businesses
worldwide
90,000
colleagues around
the world
OVER
Pfizer pipeline as of February 28, 2013
Discovery
projects
PHASE 1 PHASE 2 PHASE 3 Registration TOTAL
29 25 17 787
Aricept
(Prevnar 13)
4. Always changing!
4
Major impacts on staff, business
and real estate
2000 ’01 ’02 ’042003 ’05 ’06 ’07 ’08 2009 ’10 ’11
Company (acquisition) Company (acquisition) Company (merger)
Company (divestiture)
2012
Approx. $90 billion Approx. $60 billion Approx. $68 billion
24M sq ft, reduced 15M in 3 yrs
Approx. 2M sq ft
Company (divestiture)
Pfizer Nutrition Business
Approx. $11.8 billion
Less than 2M sq ft
5. Pfizer Organisation
CEO
Pfizer Finance & Business
Operations
Exec VP
Finance and Global
Operations
Global
Operations
Americas EMEA & APAC
Portfolio
Mgmt
5
Regional Delivery Central Support
Real Estate
Capital
6. GO EMEA Team
6
EMEA & APAC Lead
Facility Solutions
(Capital Projects &
workplace
strategies)
EHS
Occupational
Health
Real Estate
(Transaction
management)
APAC Operations Mature Markets
Commercial
Offices
3 Ops Managers
Vendor Partner
16 West European
Countries
Emerging Markets
Commercial
Offices
2 Ops Managers
Vendor Partner
38 East
European, AfME
Countries
WRD
Technical Facilities
30 FTE
Vendor Partner
2 UK Centres and
Belgium
Business
Performance
2 Analysts
5 Augmented staff
Procurement
Category Mgr
Vendor
Management
8. EMEA Real Estate Footprint
8
2.9 Million Square Feet
55 Countries
126 Facilities
Region Property Type Leased vs Owned
9. EMEA Real Estate Footprint
9
2.9 Million Square Feet
55 Countries
126 Facilities
Sq Ft by Size of Facility (scale) # of Facilities by Size (breadth)
10. Scope for Outsourcing
• Food services
• Cleaning and janitorial
• Mail and logistics
• Non-regulated
maintenance
• Grounds
• Pest
control, reprographics
• Major FM Services
Principal
10
• Security
• Couriers
• Stationery
• Utilities
Agent
• Demand Management
• Landlord liaison
• Small projects
Other
12. High level Project Timeline
12
• July 2008WPO leadership endorsement
• 20th October, 2008RFI launched
• 17th November, 2008RFP I launch (6 companies)
• 18th December, 2008Down select to 2 potential vendors
• 27th March, 2009Down select to 1 preferred vendor
• 1st May, 2009Effective date of Appointment
• from 1st August 2009Site transitions effective
• April 2010Additional sites awarded
Note: – Wyeth acquisition was occurring during this timeframe
o Additional staff, additional facilities (24M sq ft WW)
10months
13. RFP Detail
Stage 1
• Focus on geographic
scope, performance
capability, cultural fit, track
record, change
management and high level
costs
• High level data from 11 sites
in 11 countries offered in
RFP stage 1 in ARIBA
• 6 companies invited to bid
• 1 declined, 2 partnered
together
• Presentations made by all
suppliers in December 2008
• Select 2 for Stage 2
Stage 2
• Detailed data from 11 sites
and access to site FMs with
site visits
• Business case evaluated and
negotiated with both
vendors (heavily weighted
on quantitative data)
• Select partner
• CBRE selected
13
14. Lessons Learned
•Change takes longer than you think!
Time
•HR practices different in each country, even in EU
•Experience of vendor essential
Complexity
•Local paternal nature of managers
Stakeholder management
•Actively required from vendor and client
•Implementation and ongoing initiatives
Change management
•Clear goals
•Accountabilities and responsibilities
•Initiative tracking
•Payment processes
Establish good contract governance and administration
14
15. Current Outsourcing
Considerations
•Costs vendors money to make big bids
•Vendors evaluate whether to bid or not
•Need to be attractive to the market
•2nd generation
• Need a bespoke (not standard) solution
•Need all suppliers to have good data
• Level the field with the incumbent
•Recognise need for collaborative approach
•Need time
• To share data, understand challenges, design
solutions, evaluate bids, plan for implementation
15
16. Current Outsourcing Plan
Largely Desk Top
• Started August 2012
• Implementation date Jan 2014
• Market assessment (Dec 2012)
• How suppliers see Pfizer (customer segmentation)
• How Pfizer sees the market (supplier segmentation)
• Extended RFI (Feb - April 2013)
• Share scope and financial data
• Develop best model
• RFP
• Detailed pricing
• Select preferred vendor July 2013
• Mobilisation/contracting (July – Dec 2013)
• Start Jan 2014
16
16months
Background to Pfizer from Colleague Resource Centre via PfizerWorldCircles to highlight the challenge of GO – people, facilities and geographic reach
Highlight that Real Estate and facilities are always changing and here are some major transactions that have impacted this.
General position of GO in organisation. People are often interested where the RE function resides within the organisation.
EMEA team – indicating how lean the retained organisation is
Geographic scope of EMEA team
Summary of RE – 50-50 leased/owned and spread across geography
Owned facilities are mostly large and in western Europe – challenge of many small facilities in many countries
Requirements we are looking for our vendors to have
2008 Project timeline
Summary of the sourcing/selection process
Some of our lessons learned in this process
Challenges with a 2nd generation outsourcing
Current process – longer time frame, more collaborative with vendors, longer RFI phase, design high level solution at table top before detailed bidding. Reduced cost to vendors, higher likelihood of success for Pfizer