| Program Management Projects:
Ericsson Network Systems
In 1984 L.M. ERICSSON relocated its North American subsidiary's headquarters from New York to Richardson, Texas. Over the next 8 years ERICSSON N.A. leased additional space in nearby buildings for its separate businesses. Continuing business growth with the regional Bell companies forced one unit, ERU (Cellular) to purchase a nearby property and relocate. Another larger unit, EXU (Network Systems) also located to review their facility plans for headquarter and regional operations due to additional growth, limits on available space and the impact of on-going fragmented operations.
Following EXU's reorganization of Real Estate responsibilities and the selection of a Real Estate representative/broker, The Staubach Company, in 1990 EXU's Director of Administration retained PM to:
ERICSSON's facility conditions and occupancy patterns were documented and analyzed together with current business activities. Long range business plans were reviewed. Key managers provided information on organizational changes, new operational requirements and near term employment projections. Long term needs were based on changing operational indices new planning standards, plus new support requirements.
Specific program requirements for 1991 and 1993 were developed together with a long range business-facility forecasting model. These needs were used to compare two alternate facility occupancy scenarios. The first strategy, Status Quo, included a new site plan with new mid-rise construction, allowing EXU to grow and partially consolidate "in place". The second, Full Consolidation, provided that solution over time in another location.
PM compared first costs, operating costs (real estate) and functional costs (business operations) for each scenario with EXU's managers. The Staubach Company verified all real estate assumptions used in PM's economic models and researched alternate sites.
ERICSSON's managers elected to relocate in stages and pursue the consolidation strategy which offered improved operating characteristics and greater flexibility, but no cost savings. Following EXU's selection of Hines Interests as a development partner in 1991, PM again interviewed key managers and updated the Space Program for this new project - prior to the selection of an Architect, Cesar Pelli Associates.
Actual space forecasts identified by PM were 25% higher than the management's original projections (1QTR90) due to successful business programs. A staged 500,000 SF project was designed on a new site purchased by one business unit. That project was later suspended pending new management initiatives and the company's reorganization plans.
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