Six Sigma for Corporate Real Estate

Your First Sustainability Project: Energy

Most people think of Six Sigma related to "process improvement" and interpret that pretty literally.  Years ago I was part of a company that did so...Nothing wrong with that.  However, some of my colleagues and I came to the conclusion that the more generic, more effective label is "business improvement."

Process mapping at a high level helps by decomposing a process into manageable chunks of activity.  The other way to get there is to think cause/effect.  For example, consider Sustainability -- which one of my colleagues calls "the hottest topic on the planet."  (ba-dump-dum)  There is not really a sustainbility process per se.  But it can still be broken down into component parts, of which energy management is one.

Energy management improvement is a great Six Sigma project because it typically has the element of discovery that we're looking for, as well as customer (shareholder) impact.  It's a well understood field but can still benefit from problem identification, measurement, prioritizing improvement efforts, control planning, etc.

Do it now!

Push Move #1: The Procurement Process

Yesterday some of my colleagues and I met with the head of corporate real estate of a very large, global corporation.  We were explaining how we assist groups like hers in adding a higher level of value for their company.  In some cases, this is a pull (the company execs are asking for more) and in some cases this is a push (execs don't know what to ask for).  This organization was in the latter category.

Pushing for a higher value add position requires a different approach than answering the call.  You have to sell an opportunity.  In some ways this is even more difficult than scrambling to placate a frustrated c-suite.

Because this real estate group is so decentralized, we have to find ways to unite processes without focusing directly on underlying structures like organization reporting relationships.  One such process is the procurement of indirect supplies (supplies not related to the core product production operation).  Real estate has a lot of this:  Carpet, paint, light bulbs, furniture, for example.

Central purchasing is not a new concept.  But in this case real estate hadn't been focused on as a spend category.  And, since all the different businesses and plant managers run their own shop, they are missing a big opportunity.

This will be a very straightforward application of six sigma to prioritize savings opportunities and improve the procurement process to achieve those savings.  Should get the CFO's attention.

Doctor's Office in the Drug Store

Hospitals have hosted pharmacies for a while, so why not the other way around?  A recent article desribes how it's not unusual now to find a walk-in doctor's office in a retail environment:

Store-based health clinics — which are staffed mostly by nurse practitioners and offer quick services for routine conditions from colds and bladder infections to sunburn — aren't just a health care fad anymore, but fast becoming a serious industry.  Canadian Business

And BusinessWeek shows the advantages when it comes to speed for care:

"Nurse practitioners are trained to do the same things that family physicians would do," says Jan Towers, director of health policy with the American Academy of Nurse Practitioners. "Besides, if you're in pain or are sick, you might end up getting sicker waiting for a doctor's appointment or in an emergency room."

People are enthusiastic about the clinics. A recent Harris Interactive poll showed that 83% of respondents felt these clinics could provide basic medical services when doctors' offices were closed, and 78% felt they offered fast, easily accessed medical services.

Like I've always said, real estate choices are about adjacencies.  Once you determine what your space should be adjacent to, measure it and track the results.

Zippo, Altoids, and Effecting Building Entry Branding

For decades, Zippo lighters have intrigued.  There were days in my youth where I almost wished I were a smoker so that I could have a reason to use one.  Who among us is ignorant of the scrape-ping sound made by flipping open a Zippo?

I'm not sure that people's consideration of the Altoids brand extends too far beyond the slogan curiously strong peppermint.  But I submit to you that, intentional or not, the Altoids brand also comprises the procedure for opening the box.  Oh! the satisfaction of cracking open the tin and peeling back the paper; not a difficult task, but it does lengthen the process of getting a mint to just long enough to be an experience.

What about us?  What about the experience your customer or guest has when  they come into a building?  Our buildings have brands and for large office buildings the overwhelming defining characteristic is probably something to do with security.  Hardly satisfying or inviting.  You slide through a gate or heave a revolving door...more a chore than anything else.

Brand experience should be a measurable component of a corporate real estate group's contribution to the company.  Focusing on this and other outside-in expectations aligns CRE to the business and is a major six sigma principle.