Programme Management

Client:

Nokia Siemens Networks

Project Type:

Completion:

Mid 2019

Project Scope

In January 2012 it was clear that Nokia needed to significantly scale back its cost base, in the face of fierce global competition. Nokia appointed Coretex to take the Global Programme Management lead on planning and implementing the change process. The objective for the Global Real Estate and Facilities organization was to move towards the leanest possible global operational model. This involved;

Rationalising the occupation model in every property globally by using optimum occupation density and sharing ratios
Removing all non-essential Facilities services globally, including all catering subsidies. Removing nearly 50% of all facilities costs excluding energy.
Closely connecting with all departments and country management teams, with support from the NSN global board, to roll out implementation.
Saving overall €150m from the run rate (over 30%) in 3 years.

Project Detail

Coretex were appointed to directly support and integrate the efforts, processes and reporting the Global Team, working directly for the Global Head of Real Estate and in close collaboration with each Head of Region to provide planning and governance support. The Coretex team reviewed and monitored change plans at all levels down to individual properties, creating an integrated global change plan (the MASTERSHEET) which was monitored week to week.

Project Outcome

The Global VP Real Estate was able to achieve all annual promised changes and savings in each financial year. Every major target was hit in all time-zones and regions.

Coretex provided regional and global level integrated reports that tracked every action and summarised progress on a cumulative monthly basis, for presentation in a simple pack by the VP Real Estate to the COO.

The change programme was fully successful, achieving agreed targets for efficiency set by the company board in 2012, 2013 and 2014. The transformation enabled Nokia to survive a very difficult time and following the sale of the mobile phones part of its business to Microsoft in September 2013 the Networks business became the main business area for the company. Nokia purchased Alcatel-Lucent in April 2015 and had expanded its sales to EUR 24bn by 2023.

Coretex Process

Coretex worked with the global Real Estate leadership to established a global team within the client organisation to deliver the transformation, comprising all regional operational Real Estate and Facilities leaders, and the supply chain.
The plan to achieve economies and transform the business was developed together with the global team on a location by location, country by country basis, building to one integrated plan;
Key areas such as workplace occupation and facilities costs were looked at in depth at every location and tracked monthly to find emerging opportunities for savings;
The change process for the Facilities delivery infrastructure was mapped out in detail and tracked to ensure changes were rolled out on a monthly basis, and savings were achieved;
Regular calls with staff across the globe followed monthly reconciliations of progress where required to make sure changes were delivered;
The provision of the Coretex integrated focus on the change initiatives enabled the global and regional management teams to get on with ‘normal’ activities, including business changes, customer requests and projects, and allow the programme management approach to drive the change alongside BAU.

This programme was one of many carried out for Nokia including:

Programme Management for the creation of the first Nokia Global Workplace Management team;
Establishment of global consistent practice for customer service agreements;
Reviews of major company operations and creation of performance improvement programmes for UK, France, Netherlands, Sweden, German, Poland, Italy, Belgium and Finland;
Managing the acquisition of 18,000 staff and 189 buildings from Motorola globally, including programme managing Security, Security, HR and Real Estate;
Programme management of global outsourcing of Facilities and property management.

Other clients for whom Coretex have carried out programme management include: 3M, HP, Agilent Technologies, BBC, UK Parliament, Kings College London and Sheffield Hallam.