INNOVATION PROGRAM IMPLEMENTATIONOVERVIEW OF KEY OPERATIONAL STEPS

2015 ASQ INNOVATION CONFERENCESEPTEMBER 19 2015

INTRODUCTION

DAVID FOSTERDirector of Quality ManagementIO Property and Land Management Services AccountT +1 416 775 3933F +1 416 775 3989david.foster@cbre.com

Agenda Introduction Program Goals and Definitions Program Framework Roles and Innovation Advocates Communications Impact and Results Lessons Learned and Tips

CBRE is a provider of Integrated Real Estate Services

Our InnovationTeam Program was deployed within a large public sector account in 2012 Portfolio: approx. 5,500 buildings, 47 MSF, 50,000

acres of land holdings

500+ CBRE team members and 2000+ active vendors / service providers

Scope of services includes: Transactions, Lease Admin, Energy Management, Project Management, Asset Management, Facility Management and the associated enabling support services (i.e. Procurement, Finance, Quality Management, etc.)

The Playing FieldBACKGROUND

DEFINING INNOVATION AND SETTING THE PROGRAM GOALS

Adopted Definition:Innovation is the PROACTIVE IMPROVEMENT of our services and products to better meet existing or anticipated customer needs

Defining InnovationPROGRAM DEFINITIONS AND GOALS

Innovation

All Continual Improvement Activities

Leveraging Continual Improvement ToolsPROGRAM DEFINITIONS AND GOALS

Continual Improvement (Six Sigma /

Lean)Innovation

Shared ToolsVoice of the Customer Tools

Brainstorming ToolsProcess Tools

Project Methodologies

Alignment to Continual ImprovementPROGRAM DEFINITIONS AND GOALS

Develop Innovation

Capture in Process

Standardize Operations to Process

Drive a Cultural Change

Culture ChangePROGRAM DEFINITIONS AND GOALS

Continual Improvement • Reactive

Innovation

• Proactive

PROGRAM FRAMEWORK

Developing the ProgramPROGRAM FRAMEWORK

Select / Develop Cycle

Design a Framework

Develop the Components

Program Innovation Cycle and Supporting Tools/Approaches

Program Innovation CyclePROGRAM FRAMEWORK

Ideation

Idea Selection

ImplementationSustainment

Diffusion

Ideation

•Facilitated Exercises to Generate Project Lists

Selection•Structured Review of Project Ideas

Implementation

•Six Sigma / Lean Tools

Sustainment•Process Documentation and Controls

Diffusion

•Program and Corporate Communications•Best Practices Program

InnovationTeam Program Framework

Operationalizing the ProgramPROGRAM FRAMEWORK

Project Delivery

Acco

unt-W

ide

Proj

ects

Serv

ice

Line

Pro

ject

s

Program Reporting

Serv

ice

Line

Mon

thly

Pr

ojec

t Sta

tus

Rep

orts

Qua

rter

ly /

Annu

al

Prog

ram

Rep

orts

Training

Advo

cate

Initi

al

Trai

ning

Mon

thly

Lun

ch a

nd

Lear

n

On-

Dem

and

Vide

os

Support Materials

Tem

plat

es

Gui

des

Communications

Mon

thly

Mee

tings

Inno

vatio

nIns

ider

Cor

pora

te

Com

mun

icat

ions

ROLES AND ADVOCATES

PROGRAM ROLES AND ADVOCATES

Define Roles

Provide Training

Mentor, Develop, and Grow

Program Owner

PROGRAM ROLES AND ADVOCATES

Prog

ram

Rol

esExecutive

Performance and Innovation Management

Office

Service Line Leadership

Innovation Advocates*

Subject Matter Experts

Leadership

Project Delivery

What is the value proposition for new Advocates? New and Exciting Beyond the ‘Silo’ Insight Access to Enhanced Skills Increased Profile Visibility Certification Path

Motivations for the TeamPROGRAM ROLES AND ADVOCATES

Innovation Advocate (CBRE)

Certified Quality Improvement Associate / Yellow Belt

(ASQ)

Certified Six Sigma Green

Belt (ASQ)

16

22

36

0

69

0 04

0

5

10

15

20

25

30

35

40

2013 2014 2015

Advocate Training / Certifications

CBRE IA CQIA/CSSYB CSSGB

‘Innovation Advocate’ Selection was Critical to Success

Selecting the TeamPROGRAM ROLES AND ADVOCATES

Selection Based on: Position Profile Discussions with

Service Line Directors

Predictive Index test results

Predictive Index Sample Results“Ideal”

Candidate A

Candidate B

Advocate Initial Training Three Day Intensive Course Tailored Training Highly Interactive Abundant Resource Materials Content drawn from Six Sigma and Lean Celebrated with swag and a Director

meet-and-greet

Initial TrainingPROGRAM ROLES AND ADVOCATES

Advocate Skills-At-A-

GlanceFundamental Skills

Process Mapping Root Cause Analysis

Affinity ExercisesInterrelationship Digraph

Pareto AnalysisKaizen (and Lean)Basic Facilitation

Advanced SkillsControl Charting

FMEAC&E Matrix

Kano Analysis

Ongoing TrainingPROGRAM ROLES AND ADVOCATES

• “Not a Lunch and Learn”

• Instructor Led• Live and Webex

Monthly Formal Training

• Recorded / Produced Online Sessions

• Supports Advocate Projects

• Supports Knowledge Sharing

On-Demand

Web-based

Training

• DRIVINGTraining Needs

Analysis

COMMUNICATIONS

Stakeholders and StrategyCOMMUNICATIONS

Executive

InternalExternal

Executive Quarterly Newsletters

Semi-Annual Report

Annual Report

InternalMonthly

Advocate Meetings

Quarterly Newsletters

Annual Report

External Quarterly Newsletters

Annual Report

Program Stakeholders

Communications Strategy

InnovationTeam Insider Quarterly Newsletter Showcases projects

and successes Advocate Profiles Education Kudos

Quarterly NewslettersCOMMUNICATIONS

Annual ReportCOMMUNICATIONS

Annual Report Delivered to Executive and Leadership Teams Year in Review

• Key Successes• Service Line Annual Reports• Account Summary• Benefits to Date• Best Practices

Year Ahead• Training Plan• Project Strategy• Program Enhancements

Service Line Annual Reports Provide summary

feedback to Service Line Directors

Summary of Annual Service Line Accomplishments within the Program

Service Line CommunicationsCOMMUNICATIONS

Leverage other corporate communications on an ad-hoc basis

Account CommunicationsCOMMUNICATIONS

Capturing the BenefitsCOMMUNICATIONS

Case Studies are prepared for all completed projects using a standard template

Case Studies are available for sharing as ‘Best Practice’ snapshots for other accounts

IMPACT AND RESULTS

Program TrendsIMPACT AND RESULTS

01020304050

First Round SecondRound

Third Round

# Projects Identified by Service Lines (Opportunity)

05

10152025303540

First Round SecondRound

Third Round

# Advocates Trained (Capacity)

02468

101214

First Round SecondRound

Third Round

# Projects Completed (Outcome)

Year 1

Year 2

Year 3

Project Volumes and Completions• 46 Projects Identified

• 32 Projects Initiated

• 14 Projects Completed by end of year vs 31 Targeted

Project VolumesIMPACT AND RESULTS

0123456789

10

SL 1 SL 2 SL 3 SL 4 SL 5 SL 6 SL 7 SL 8 SL 9 SL 10 SL 11

FY 14-15 Project Totals by Service Line

Identified Started Completed

46

32 31

14

05

101520253035404550

FY 14-15 ITP Account-Wide Project Summary

Key Challenges:• Part-Time

Resources• Overly

Ambitious Projects

• 4th QtrWorkload

0

1

2

3

4

5

6

SL 1 SL 2 SL 3 SL 4 SL 5 SL 6 SL 7 SL 8 SL 9 SL 10 SL 11

2015 Projects: Targeted Completion versus Actual Completion

Target Completed Completed

Project ImpactsIMPACT AND RESULTS

Project Benefit• Lease Evaluation Assessment Program

Improvement Project• VOC definition and alignment, higher quality reporting,

workflow managed system reducing process mgt overhead, developed the Lease Quality Index (LQI) measure

• Asset On/Off Boarding Workflow System and Client Integration

• Developed integrated workflow system, 6 page, 150+ step process map turned into ‘push-pull’ system, client integration

• Mobile Operations Manual • Developed an app for technicians which contains all critical information about major bldgs in portfolio and allows sharing of notes/etc. Proven during Pam Am games support

• In-Year Project Justification Process • Integrated capture of ‘ad hoc’ projects into capital project planning reducing duplicate projects

• ITP On-Demand Training Project • Library of 20 tailored training videos, 5 minutes in length, to support the ITP program. Approach now being used widely for other purposes (ex: Heath & Safety)

• Energy Information Management • Developed an online database to capture and share operational improvements across the portfolio contributing to 10% reduction in energy consumption vs 2% target, 38% GHG reduction (>$5.5M)

Sample FY 14-15 Completed InnovationTeam Projects

The Best Practices program had a banner year with 22 Best Practices submitted by Account Service Lines

Innovation Project – Best Practice Cross-Fertilization

• Many Best Practices were also Innovation Projects

• Many Best Practices utilized Advocate skills at some point during the project

Benefits Beyond the ProgramIMPACT AND RESULTS

0

1

2

3

4

5

6

SL 1

SL 2

SL 3

SL 4

SL 5

SL 6

SL 7

SL 8

SL 9

SL 1

0

SL 1

1

SL 1

2

SL 1

3

SL 1

4

SL 1

5

2015 Best Practices Submissions

LESSONS LEARNED

LESSONS LEARNEDWalk the Walk

• Simplify Your Projects (need fast turnaround)

• Support Advocates as Knowledge / Capability Resources within their Teams

• Mentor, Mentor, Mentor• Advocates Are / Will Be

Instruments of Culture Change• No such thing as too little

Communication• Improve and Innovate within the

Program itself• Celebrate and Reward Success

Our program has generated a number of Lessons Learned which are important for us to keep in mind while managing the program

Quality is something you work at. It is a learning process.

“”W. Edwards Deming

For more information regarding this presentation please contact:David FosterDirector of Quality ManagementT +1 416 775 3933F +1 416 775 3989Email.david.foster@cbre.com

Q&A