JD Edwards Real Estate and Workplace Services Project Management the JDE approach April 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 pointsSingle Point Task Oriented / Build it and RunStrategic Orientation / Life Cycle Misalignment Alignment Schedule at Risk Control/accountable Junior “position”Senior “process” Project OrientationPortfolio Alignment Traditional ApproachEnd 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 Total Occupancy Expense $ (millions) Occ. Expense as a % of Rev. Total Occupancy Occupancy % Rev Target (Target) 2003 (Forecast) Acceptable Range - Occupancy as a % of Revenue ( %) 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