1

ORF

Performance Management Presentation

Team Members:

Melissa Richardson, Veronica Crawford-Robinson, Jim Phelan, Stewart Hill

9 January 2005

Lease, Purchase and Dispose of Real Estate

2

ORF Overview and Contents

• Origin and Purpose of Purchase and Dispose of Real Estate• PMP Template

– Value proposition and strategy– Performance objectives and measures

• Customer Perspective: Critical Measures– Customer Satisfaction Scores

• Internal Business Process Perspective: Critical Measures– Lease files reviewed and documented

• Learning and Growth: Critical Measures– Individual Development Plans

• Financial Perspective: Critical Measures– Raw Lease Rates Comparison

• Conclusion• Appendix

– See the list to be created

3

ORF Customer Segmentation – FY 04Acquire & Dispose of Real Estate - Customer Segmentation

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

NC

I

NIA

ID OD

NID

A

OR

S

CIT

NH

LBI

CS

R

NIC

HD

NIM

H

NIE

HS

NIA

AA

NIA

NID

DK

NC

RR

NIN

DS

NID

CD CC

NIA

MS

DIR

RE

S

NLM

NIB

IB

NC

CA

M

NE

I

NC

MH

D

NH

GR

I

NIN

R

OH

RP

Institute/Center

Squa

re-F

oota

ge

Sum of Rented Square-Footage

4

ORF

Team Members

Melissa Richardson

Veronica Crawford-Robinson, Jim Phelan, Stewart Hill

Date: Dec 12, 2004

Service Strategy

Our real estate acquisition and space management team represents the NIH community as the One Broker for All . As Montgomery County’s largest lessor we have the economies of scale to deliver our customers the space they need at the lowest possible market price while insulating them from both the expense of finding and negotiating legal occupancy agreements as well as the long term administrative expenses of managing their own real estate transactions. Our team of polished professionals partner with our customers to maximize our expertise and knowledge in representing their best interests throughout the real estate life cycle process. We are the benchmark for customer service setting the standard for availability, reliability and competency in our continuous effort to keep our customers informed on all their real estate projects.

Value Proposition

Team Leader

We will know our customers needs for facility space and services and keep them up to date and thoroughly informed on our activities and actions. We will work to translate our competency and reliablity into customer outcomes that make a visible difference in the satisfaction our customers have in us as their trusted agents.

Strategy Description

DS5: Maintain real property records (no longer a DS in Business Plan)

DS4: Negotiate licenses, permits and easements

Division of Real Property Acqusition Services (Purchase, Lease and Dispose of Real Estate)

Service Group

DS3: Manage the lease acquisition process for all leased facilities

DS2: Perform lease administration

DS1: Purchase and dispose of NIH-owned real estate

Discrete Services

Operational Excellence

Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

Performance Plan FY 04

5

ORF

Perform

ance Plan F

Y 04 – F

Y 05

Objective Measure FY 03FY04

TargetFY05

TargetInitiative

Cu

sto

mer

C1: Be Indispensible in service quality

C2: Improve customers' ability to make informed decisions

C3: Be one broker for allC4: Increase Cust. Satisfaction

C1.1 Customer Survey ORS quality scoreC1.2 Total Financial Transactions processed C1.3 Total finanancial liabilities incurred - leases, SLA's, taxes, utilities, etc. C2.1 Average # of project change orders per lease action C2.2 % SLA's with prior funding approvalC3.1 Customer SurveyC3.2 # SLA amount exceed internal estimate C4.1 Customer Survey

n/aactual

TBD

n/a

n/a

baseline+5%

≤ 5

baseline

baseline

≥FY04+5%

≤ 1

≥FY04

≥FY04

Notes: 1. time for new lease in place 2. time for special (R&D) lease 3. How long to do a supplemental lease 4. Time for renovation for admin space 5. Time for research build to

Inte

rnal

Bu

sin

ess

IB1: Improve customer responsiveness

IB2: Increase understanding of Customer's business needs

IB3: Improve consistency of lease administration

IB1.1 # of SLA's porcessed for all leaseseIB1.2 # of invoices processed(non-utitility non-tax)IB1.3 Unreseolved real estate disagreementsIB1.4 # of new leases by source (NIH or GSA)

IB2.1 # of refreshed IC profiles IB2.2 # of customer contacts IB2.3 # of new leases with cancellation/option clausesIB2.4 # of facility manager pre-authorized work requests

IB3.1. # Lease Files Fully Reveiwed & Documented

n/asee chart

6see chart

actual

baselinetbd

12tbd

75%

tbdtbd

26tbd

100%

Lea

rnin

g a

nd

G

row

th

L1: Improve cross-functional job knowledge

L2: Be honest brokers

L1.1 # of staff capable operating in two areasL1.2 # of active individual development plansL2.1 # of weekly contacts with cust. with open requirementsL2.2 Customer Survey project close out

220%

see chart

Baseline

10%75%tbd

TBD

20%100%

tbd

BD

Notes: Measue is

Fin

anci

al

F1: Improve Customer's understanding of financial parameters of leaseF2: Maximize lower cost for Customer spaceF3-F6: Minimize unit cost for DS1-4

F1.1 # of leases using TIA & IC's own fundingF1.2 % IC's attending lease costs and financing trainingF2.1 Compare lease rates among local community and govt comps

F3.1 # of purchase actionsF3.2 # of lease and dispose transactionsF3.3 # of lease transactionsF3.4 # of requested actions

tbd5%

≤10%

TBD

tbd10%

≤10%

≤ 3%

tbd20%

≤10%

≤ 3%

Notes:$Expense alteration,etc towards prospectus

FY 04 Objectives and Measures

6

ORF

Strategy Mapping

7

ORF

Be Indispensable In Service Quality

Increase Customer Satisfaction

Keep Customers’ Informed

Improve Customers’ Understanding of

Financial parameters of lease

Increase understanding of customers’

business needs

Learning & GrowthLearning & Growth

Internal Process Financial

Customer

Strategy Mapping Linkage – How to Satisfy Customers

8

ORF Strategy Mapping Conclusions and Actions

• Strategy Mapping revealed that in order to achieve C1. Improve Customers’ Ability to make informed decisions and F1. Maximize the Lowest Cost for Space our team must IB1. Improve Consistency of Lease Administration and L1. Partner with our customers.

• This analysis helped us focus our attention on ways to measure our progress in achieving these objectives.

9

ORF

Customer Perspective

Critical Measures

MeasureSource of

DataOwner

Frequency of Update

Oct

-03

No

v-03

Dec

-03

Jan

-04

Feb

-04

Mar

-04

Ap

r-04

May

-04

Jun

-04

Jul-

04

Au

g-0

4

Sep

-04

FY

04

Su

mm

ary

C1.1 Customer Survey ORS quality score

survey staff annual N/A N/A

C1.2 Number of contacts/week via all sources (email, phone, visits, other) sample week July 19-23

Weekly contact logs

staff semi-annual 1701 1701

C2.1 Average # of project change orders per project authorization

SLA Log staff quarterly 30 29 45 45

C2.2 % of SLA's with prior funding approval

SLA folders

staff semi-annual 100% 100% 100% 100%

C3.1Customer Survey survey staff annual n/a n/a

C3.2 # of contacts/week concerning SLA's Sample week July 19-23

weekly contacts log

staff semi-annual 307 307

C4.1 Customer Survey survey staff annual N/A N/A

10

ORF Objective: C1. Be indispensable in serviceMeasure C1.2 Total Lease Space by Rent, Location and Type

PAYMENT METHOD

SPACE TYPE

BUILDING ADDRESS

BUIL

LEASE EXPIRATION

DATE

LEASE NUMBER

SQ.FT. FY2004 TOTAL

ESTIMATED EXPENSES ($)

EXISTING ADMINISTRATIVE SPACE LEASESFund Pay Admin 6001 EXECUTIVE BLVD. NEUROSCIENCE BLDG.1/31/19 LRP-079753 19,450 659,670$ Fund Pay Admin 6006 EXECUTIVE BLVD. 4/26/15 GS-11B-30157 29,126 846,588$ Fund Pay Admin 6006 EXECUTIVE BLVD. 8/22/14 GS-11B-40090 16,049 357,636$ Fund Pay Admin 6011 EXECUTIVE BLVD. ENERGY BLDG.9/30/07 LRP-039746 47,802 1,598,902$ Fund Pay Admin 6011 EXECUTIVE BLVD. ENERGY BLDG.9/30/14 LRP-099978 18,564 531,393$ Fund Pay Admin 6011 EXECUTIVE BLVD. ENERGY BLDG.2/1/14 LRP-069863 17,964 530,898$ Fund Pay Admin 6100 EXECUTIVE BLVD. EXECUTIVE BLDG.9/21/10 GS-11B-01268 82,873 2,028,160$ Fund Pay Admin 6100 EXECUTIVE BLVD. EXECUTIVE BLDG.2/1/14 LRP-069864 41,368 1,421,613$ Fund Pay Admin 6101 EXECUTIVE BLVD. 6/30/12 LRP-0302108 42,577 1,263,367$ Fund Pay Admin 6116 EXECUTIVE BLVD. 11/30/07 LRP-079752 13,478 476,732$ Fund Pay Admin 6116 EXECUTIVE BLVD. 6/30/09 LRP-109867 38,042 1,416,606$ Fund Pay Admin 6116 EXECUTIVE BLVD. 6/30/09 LRP-109868 37,391 1,240,005$ Fund Pay Admin 6116 EXECUTIVE BLVD. 5/31/12 LRP-109869 27,421 1,008,942$ Fund Pay Admin 6116 EXECUTIVE BLVD. 6/30/09 LRP-069973 20,639 865,168$ Fund Pay Admin 6116 EXECUTIVE BLVD. 10/31/09 LRP-089977 21,668 828,559$ Fund Pay Admin 6116 EXECUTIVE BLVD. 6/30/10 LRP-040088 20,340 842,010$ Fund Pay Admin 6120 EXECUTIVE BLVD. EXECUTIVE PLAZA SOUTH (EPS)9/30/09 GS-11B-30184 114,775 3,501,540$ Fund Pay Admin 6120-6130 EXECUTIVE BLVD. EXEC PLAZA NORTH & SOUTH9/30/09 GS-11B-80561 214,080 7,834,926$ Fund Pay Admin ALDON LANE APARTMENT 202 & 40911/30/04 LRP-059747 1,000 23,499$

TOTAL EXISTING LEASES - ADMIN SPACE 2,255,370 68,595,878$ EXISTING LEASED LABORATORY/CLINICAL ANIMAL SPACE

Fund Pay Lab/Animal 12420 PARKLAWN DR. PARK BLDG.7/31/05 GS-11B-51075 22,707 389,538$ TOTAL EXISTING LEASES - LAB/CLINICAL/ANIMAL SPACE 22,707 389,538$

EXISTING LEASED STORAGE/WAREHOUSE SPACEFund Pay Storage 8697 GROVEMONT CIRCLE SHADY GROVE INDUSTRIAL PARK10/31/06 LRP-901103 3,000 41,325$ Fund Pay Storage 16050 INDUSTRIAL DR. GAITHERSBURG DISTRIB. CTR.2/28/04 GS-11B-30120 150,000 1,349,254$

NOTE: NO NEW STORAGE/WAREHOUSE SPACE FORECASTEDTOTAL EXISTING & FORECASTED WAREHOUSE/STORAGE SPACE 153,000 1,390,579$

BREAKOUT FOR TWINBOOK AND FISHERS LANE PROPERTIESFund Pay Admin 5635 FISHERS LANE 12/31/13 LRP-0602113 74,000 1,935,285$ Fund Pay Clinical 12300 TWINBROOK PKWY TWINBROOK METRO PLAZA BLDG.2/12/07 GS-11B-60303 5,775 174,432$ Fund Pay Lab 12735 TWINBROOK PKWY 12/31/23 LRP-0901101 76,520 1,315,846$ Fund Pay Lab 5625 FISHERS LANE 12/31/23 LRP-0502110 7,817 107,965$ Fund Pay Lab 5625 FISHERS LANE 12/31/23 LRP-1001104 75,568 1,816,525$ Fund Pay Lab 5625 FISHERS LANE 9/30/23 LRP-070198 70,000 1,799,760$ Fund Pay Admin 5635 FISHERS LANE 2/28/14 LRP-1102119 37,762 767,980$

347,442 7,917,793$ TOTAL 2,778,519 78,293,787$

Total for Twinbrook and Fishers Lane Properties

Estimate as of July 04

11

ORF Objective: C1. Be indispensable in serviceMeasure C1.3 Total emails on all functions per week

TOTALS

E-MAILS 25 12 5 4 5 8 2 15 12 45 10 15 2 2 5 2 1

12 5 30 1 17 2 1 435 3 27 11 1 1 2

9 33 15 3 2 5 72 5 30 25 3 3 4

60 3 45 20 1017 5 3 35 6

10 10 4

Total Emails 162 121 175 118 30 37 8 17 19 687 E -mails

12

ORFObjective C4. Increase Customer Satisfaction

Measure: C4.1 Customer Survey score

Customer Survey Methodology

FY 05 – Our intent is to use the surveys to help us determine if :

• Our customers agree we are acting as One Broker for All ensuring fair and equitable service to every customer; and

• Our consolidated buying power enables them to enjoy the lowest cost for leased space.

FY 05 - We are going to ask for OQM to assist us in preparing a series of Focus Surveys in FY 04 and FY 05 that will involve selected representatives from the IC’s in answering Customer Satisfaction questions geared around our two areas of interest.

13

ORF

Internal Business Processes Perspective

Critical Measures – Total Number of Contacts All Sources Per Week – 1,701

IB2.1 # of contacts/week on facility maintenance issues. Sample week Jul 19-23*

weekly contacts log

staff annual 259* 259*

IB2.2 # of contacts / week via all sources Sample week July 19-23*

contact sheet

staff sem-iannual 1701* 1701*

IB2.3 # of new leases with cancellation and or option clauses

Lease Files

staff annual 2 2

IB2.4 # of facility manager pre-authorized work request

SLA log staff quarterly 25 36 43 104

IB2: Increase understanding of Customer's business needs

Objective MeasureSource of

DataOwner

Frequency of Update

Oct-

03

No

v-0

3

Dec

-03

Jan

-04

Feb

-04

Mar-

04

Ap

r-04

May-0

4

Ju

n-0

4

Ju

l-04

Au

g-0

4

Sep

-04

FY

04

Su

mm

ary

14

ORF

Objective IB1. Keep the customers informed

Measure: IB1.1 Number of SLA’s transaction all Sources per week - 307

TOTALS

E-MAILS 1245

53

33535

10

Total Emails 121

MAIL 911

321

325

5

Totals Mail 77TELEPHONE CALLS 10

55

1525

313

18TOTAL TELEPHONE 85

VISITS

5TOTAL 5

MEETINGS 9341

2

TOTAL 19

Grand Totals 307

15

ORF

Objective IB1. Keep the customers informed Measure: IB1.3 Number of Facility Maintenance

transactions all Sources per week - 259

TOTALS

E-MAILS 415

111

3252035

4

Total Emails 11831

MAIL 71

Totals Mail 8TELEPHONE CALLS

51029

5227

9TOTAL TELEPHONE 69

VISITS 23

13

1

1

TOTAL 20

MEETINGS 111017

51

TOTAL 44

Grand Totals 259

16

ORF

Objective IB2&3. Improve Consistency of Lease administration and Customer Satisfaction – Contacts from Lessors and Brokers

TOTALS

E-MAILS 8 22 52 1153

106

Total Emails 37 80 1

3

MAIL 13

Totals Mail 0 4TELEPHONE CALLS 5

310 424

5

1 13

17TOTAL

TELEPHONE CALLS 55 9

VISITS

5

21

TOTAL VISITS 7 1

MEETINGS 1

3

2

TOTAL MEETINGS 5 1

Grand Totals 104 23

17

ORFWhat will we learn from this Internal business process data?What actions will it indicate we should take?

1. How well are we maintaining the lease records

2. What deficiencies might exist that could result in penalties such as revocation of warrant

3. How well do we understand our customers needs for space and services

4. How current is the information in our files and is it accurate

5. What areas need emphasis during the acquisition phase in order to ensure proper documentation

6. What are the common needs and requests recurring on the SLA’s

7. What type of customer education program we should focus on to enable our customers to make more informed decisions regarding lease matters.

18

ORF Learning & Growth

Critical Measures

L1.1 # of contacts/week for project updates. Sample week Jul 19-23*

logs logs annual 435* 435*

L1.2 # of active individual development plans

veronica veronica annual 1 1

L2.1 # of contacts / week via all sources Sample week July 19-23 *

customer contact list

staff semi-annual 1701* 1701*

L2.2 Customer Satisfaction Survey @Project close out

survey staff annual n/a n/a

L1: Improve team collaboration

L2: Be honest brokers

Objective MeasureSource of

DataOwner

Frequency of Update

Oct

-03

No

v-03

Dec

-03

Jan

-04

Feb

-04

Mar

-04

Ap

r-04

May

-04

Jun

-04

Jul-

04

Au

g-0

4

Sep

-04

FY

04

Su

mm

ary

19

ORF

LG2. Be honest brokers –Total number of project updates all IC’s per week -431

TOTALS

E-MAILS 5103027153045

310

Total Emails 175

MAIL 177

Totals Mail 24TELEPHONE CALLS 7

23332

719

929

17TOTAL TELEPHONE CALLS 137

VISITS 6

511

177

TOTAL VISITS 46

MEETINGS 21523

42

3

TOTAL MEETINGS 49

Grand Totals 431

20

ORF What will we learn from this L& G data?What actions will it indicate we should take?

1. How informed our staff is regarding open items that need resolution for customer leases

2. What type of training needs to be encouraged to help our staff be more effective leasing facilitators

3. What do our customers think of our fairness and objectivity in addressing their requirements

4. We need to establish individual development plans for our staff

5. We need to encourage more in shop exchange of information about our lease activity

21

ORF Financial PerspectiveF1. Improve Customers’ understanding of

financial parameters of lease

Objective MeasureSource of

DataOwner

Frequency of Update

Oct-0

3

Nov-

03

Dec-

03

Jan-

04

Feb-

04

Mar

-04

Apr-0

4

May

-04

Jun-

04

Jul-0

4

Aug-

04Se

p-04

FY04

Su

mm

ary

F1.1 # of leases fitting out space using TIA

Lease files staff quarterly 5 3 4 12

F1.2 # IC's using own funding to fit out space

Lease files staff quarterly 3 27 44 74

F1: Improve Customer's understanding of financial parameters of lease

22

ORF What will we learn from this Financial data?What actions will be indicated?

1. We will learn how well we are educating our customers about the financial aspects of a lease contract

2. We will learn how well we are doing in acquiring space at the lowest cost possible

3. We will see trends in lease rates

4. We will see the basic cost inputs that make up our service group expenses

5. We will focus on educating our customers in formal sessions

6. We will determine what we are doing well that helps us outperform the market on lease rates

23

ORFConclusions and Key Initiatives

Conclusions

1. We are delivering lower lease rates than others in our market are able to achieve

2. Our customers need more knowledge briefings on lease activities – the do’s and the don’ts

3. Our staff is capable of handling a wide range of lease administration activities

4. We need to continue collecting our process and financial measures on a regular basis and plan our business around the results

Key Initiatives

1. Implement Individual Development Plans

2. Educate our customers by tagging along with the DFP meetings throughout the year

3. Convert our lease portfolio into electronically viewable formats

4. Central Input Fulfillment Center- all transactions are entered centrally.