JD EdwardsReal Estate and Workplace Services

Project Management the JDE approachApril 2003

What is Project Management

Scope, schedule & budget The implementation of consistent, measurable,

processes across a global real estate portfolio Adopting best practice methodologies for the delivery of

real estate initiatives across an enterprise Completing specific tasks to meet stated project

objectives

These are all a portion of the equation… but you can’t stop there, it is A LOT MORE

Is it ….

The JDE Approach

At JDE we believe Project Management is the

SINGLE POINT OF ACCOUNTABILITY

and

mechanism by which all REAL ESTATE INITIATIVES ARE IMPLEMENTED across

the enterprise

All other aspects of the service delivery model are simple inputs into the project

How did we arrive at our model

Traditional real estate delivery system

Planning & Design

Project Management

Transaction Management

Issues with Traditional Model

Very tactical, project specific orientation Misalignment between expectation setting and delivery Protracted project timeline – to the detriment of the PM

team At JDE the PM where the junior member of the team, yet

their success or failure was the visible result by which the customer measure the entire REW organization’s success

PM had little alignment with CRE strategy or more importantly corporate strategy – it was all about the project

Too many touch points with our customers

End to end process orientation

G.C.

Legal

Furniture

Leasing

Treasury

Accounting

Information Technology

Architecture

Risk Management

Workplace Security

B.U Requirements

Performance Metrics

Corp. Governance

Project Manager

Customer Satisfaction

Portfolio performance

How do the two approaches differ

Multiple Touch points Single Point

Task Oriented / Build it and Run Strategic Orientation / Life Cycle

Misalignment Alignment

Schedule at Risk Control/accountable

Junior “position” Senior “process”

Project Orientation Portfolio Alignment

Traditional Approach End to End Process

Tools of the Model

Performance Metrics All decisions are based on portfolio performance

Portfolio-wide targets Customer Satisfaction Benchmarking project specific metrics

To

tal O

ccu

pan

cy E

xpen

se$

(mill

ion

s)

Occ

. Exp

ense

as

a %

of

Rev

.

Total Occupancy

Occupancy % Rev

Target 1999 2000 2001 2002 2003 (Target)2003

(Forecast)

Acceptable Range - Occupancy as a % of Revenue (4.75-3.5%)3.5%

4.75%

Tools of the Model

Streamline supply chain – reposition outsourced relationships from tactical to strategic orientation

Single global provider Local implementation Defined project toolbox (standards,processes and

procedures) – no need to reinvent the wheel each time

Vendor Consolidation

Tools of the Model

Web enabled technology – a portal for every occasion

Tools of the Model

Web enabled technology – single depository for Standards, Process flow, Documentation and Procedures

Take away

Single point of accountability with an end to end process orientation

Need to fully embrace technology Streamline the supply chain Projects and ultimately CRE function can only be

successful if PM measurements are aligned with overall CRE and Corporate Strategy

Project Management cannot operate in a vacuum