Recognition of inefficiency of four separate locations in Auckland – a national office/Distribution centre, sales office, smaller distribution centre/sales office – need to consider relocation options. A “once in 25 year decision”.
Project role – internal lead role comprising development of economic case for recommended solution, obtaining required US parent company approvals, managing RFP to market for new purpose built premises, appointing and managing all external experts to completion (Development PM, lawyer, etc), negotiating long term lease, appointing and managing all internal project resources to completion, internal communications, external publicity.
The risks and rewards that were at stake
Risks – 400 staff including national office support teams, $15m of inventory, servicing 50% national Client base, national IT data and communication centre.
Rewards – modern efficient premises and equipment, significant cost savings, significant soft savings, room to grow.
The cost to complete
$150k relating to Associate throughout engagement relative to the following:
Project dimensions - $35m commitment - $25m lease, $10m fit out capex, development build circa $30m.
The process adopted
Role required significant internal coordination working with the wider management team to ensure engagement and by-in.
The time period over which it was completed
Initial work completed over a year developing the options and economics – maybe 0.1 FTE. Most project work completed over a two year timeframe, c 0.1 FTE in first year, 0.5 FTE in second year including full time in three months prior to relocation.
Achievements and enduring benefits from the engagement
Successful relocation project delivered on time and within 5% of budget, all major required outcomes achieved, significant cost savings and soft savings achieved.
Learning opportunities for the Client
Significant up-skilling of internal resources in project management skills, experiences outside of their normal roles, long term changes to property management processes, contract review and supplier management. Many of the disciplines learnt now embedded across their property portfolio and far more willing to tackle what would have previously been seen as too hard.