Enterprise Footprint Optimization
Enabling today’s mobile workforce
Business climate variables can change quickly and while most organizations recognize geography as a key driver of corporate performance, internal or external factors can challenge many organizations, resulting in ineffective and inefficient enterprise footprints. This can hamper talent recruitment and retention, increase operating costs, heighten risk exposure and depress shareholder value.
Why do many companies leave themselves vulnerable to sub-optimizing deployment of real estate and operations and how can they better plan responses to business environment changes?
- During good economic times, many companies expand rapidly and deploy geographic assets in pursuit of singular objectives – to increase revenues, reduce costs, or source new talent; in more challenging times, companies often take a hacksaw approach to eliminating high-cost or underperforming operations.
- Largely overlooked are questions related to “footprint dexterity” -- can more, fewer, or different functions be performed at a location? How does a particular operation fit within the overall corporate network?
- Geographic variables such as talent availability, operating costs, risk, or tax climate can change quickly. Mergers and acquisitions generate additional footprint complexity, often yielding redundant real estate or operations in some geographies and underrepresentation in others. Yet many companies lack mechanisms to effectively evaluate and react to these changes
An overall approach to EFO
Our EFO offering provides organizations with a structured, strategic and holistic approach to optimizing how and where their assets are deployed. We help clients in their efforts to determine/assess forward-looking real estate and location decisions within the context of the entire enterprise, versus the siloed and static view taken by many organizations, which often results in individual location decisions that optimize isolated factors without a broader view of enterprise priorities. Our methodology considers a wide range of interrelated factors, such as:
- Operating costs
- Market access
- Real estate and infrastructure
- Regulatory environment
- Supply chain
Our footprint optimization projects often yield “quick wins” to capture benefits in the short and medium-term, while developing a roadmap for organizations to holistically view their longer-term footprint decisions to help alignment with the overall business strategy.
Selected client experience
Our professionals possess a wide range of footprint optimization experience including:
- Strategic real estate planning
- Portfolio restructuring analysis & strategies
- Collocation planning and strategy development
- Project planning & management
- Post-merger integration strategies
- M&A and divestiture portfolio transition playbooks
- Portfolio cost optimization
- Future deployment roadmap development
By recommending a new configuration of front and back-office functions in EMEA, we saved a leading global provider of nutritional products over $20 million (primarily in real estate and labor costs) and helped to better position them in their efforts for future growth in the region.
We supported the planning and execution of a post-merger integration strategy for a global media corporation. Concurrently working in 50 cities around the world, our team drove an aggressive timetable, relocating over 20,000 employees into newly integrated office locations and achieving over 12% reduction in real estate costs.
About Deloitte’s Real Estate & Location Strategy practice
Deloitte is proud to have one of the industry’s largest consulting practices dedicated to real estate transformation and location strategy. We bring a different blend of business-focused management consulting experience, real estate and facilities “know how” and cross-industry thought leadership. Our team of seasoned practitioners assists complex organizations in developing innovative strategies and executing complex programs that can add significant value while reducing risk and enhancing enterprise alignment.
With a nationwide presence, our practice is composed of over 200 professionals with management consulting, architecture, real estate, planning, site selection, engineering, operations, construction, technology enablement and financial management experience. Our practitioners and capabilities are deployed globally, with field experience in over 60 countries and Deloitte offices in over 150 countries.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.