Healthy choices: GSK’s internal and external partnering strategies for growth in Asia

Abstract

The practice of outsourcing various corporate real estate functions has become commonplace within multinationals, and during the past decade various models have evolved to become increasingly sophisticated. GSK drew on a culture of partnering within the core business to build a real estate team in APAC from the ground up through partnering. This paper explores the process of developing GSK’s ‘thin client’ model in Asia, the benefits identified (three pillars) and associated performance targets. Aspects of the model are illustrated through a services standardisation project case study. Three core themes emerged during implementation: achieving alignment on goals; developing Asia-based talent and capability; and understanding what ‘good’ looks like. The benefits, challenges and key learnings from the ‘thin client’ model are explored for each of these three themes. The contextual challenges faced by the GSK real estate team in Asia, which gave rise to the partnering model, are common to many global organisations with operations across the region. The success of the model requires focus on three core themes, which may provide useful insights to CRE practitioners leading similar partnering initiatives. The paper illustrates a holistic approach to building a corporate real estate team in Asia through a strategic, multi-dimensional approach to partnering. It presents a qualitative assessment of the real estate partnering model within GSK. At the time of publication it has not been qualified through external or alternate methods of examination.