Major Wireless Communications Company - Strategic Facilities Plan
The Challenge
A major wireless communications company with revenue of over $35 billion a year was projecting a minimum of a 5% decrease in corporate staff over 36 months. Teel StratVisor Group was retained by a real estate provider to provide a strategic facilities plan to help their Client reduce costs and consolidate their facilities.
What We Did
The first step for this strategy was to understand the current state of the Client operations and assets. The StratVisor team conducted on-site interviews with the C-level executives. The interview content was captured with detailed notes, and themes were summarized for the Client. A comprehensive current state was developed from a combination of the Client’s corporate strategic vision and on-site interviews.
Once the current state was understood, documented and verified by management for accuracy, StratVisor began developing the future state based upon the client’s stated goals of reducing costs and consolidating their facilities. Site selection criteria and space standards that included a filtering process, ranking system with 15 factors, and IRR/Payback analysis were incorporated into a scorecard with three options for consolidation. The purpose of the scorecard was to objectively determine the optimal solution for the client’s facilities needs.
The team identified key decision factors for each of the alternative solutions, and facilitated a weighting session with executive management to determine how important each factor was to the client. Based upon the scorecard’s objective weighting, the best option for the Client was the most aggressive option of the three. This Option estimated that approximately 40% of the current assets would no longer be necessary to support the corporate staff.
The gap between the base case and future state led to the documentation of a number of initiatives that would help streamline and consolidate the Client’s facilities. These initiatives were benchmarked against industry standards. Finally, the StratVisor team developed an implementation plan for the chosen strategy.
The implementation plan contained detailed recommendations that covered:
- Upgrading selected locations/facilities
- Consolidating/renegotiating/disposing of certain facilities
- Sale/leaseback of selected facilities
- Occupancy/cost initiatives
This plan demonstrated to the client how to save $86 Million dollars annually.
The Result
As a result of working with Teel StratVisor Group, the Client received the following:
- A 3-5 year Strategic Facilities Plan
- A comprehensive Base Case Analysis including:
- Documentation of current facilities
- Documentation of current employee statistics
- Summary of Interview Themes
- Objective scorecards used in the development of the Business Case and analysis
- Benchmarked industry standards
- Space standards
- Standard filtering process to assist in stay/go decision
- Site selection ranking system that included 15 factors that were quantified and applied to all current locations
- Review of numerous strategies and IRR/payback analysis on three options
- Implementation plan for the management-selected option
- Clearly demonstrated annual cost-saving methods of $86 million with less than one year ROI
Timing: 4 months
