Partner Program Governance

PEP Digital Playbook

Governance Meeting Structure

PEP Governance Structure

The regional and sub committees would review and approve the day to day content

The global governance provides global oversight, resolution of escalations, review and challenge at an overall program level.

The governance framework is predicated on some key principles, namely:

1. Pre-reads are sent out to all members at least 48 hours in advance and should be read by all committee members. This ensures that the meeting time focuses on questions or decisions arising from the materials rather than readthrough of the documentation
2. Members must attend (unless marked as optional) or send a delegate in their place who is authorized to make decisions on their behalf.
3. Quorum must be present in order to make decisions
4. All decisions and actions are noted, distributed, tracked and stored by Partner Excellence Program

Proposed Governance calendar 2023 3

Program Review

Program Fee

What  are PEP Program fees?

Our global PEP offers our suppliers a number of benefits. In return, we sometimes ask for a fee to cover some of CBRE’s costs of providing these benefits.

WCP is the only volume-based concession normally offered to our partners

PEP fees (of any kind) should not impact CBRE or our clients’ selection of a supplier.

Generally, other forms of Rebates, Volume-based discounts or Volume-based concessions are not authorized in CBRE, but there are some exceptions for unreconciled, agreed flat rate charges, such as fleet and mobile phone contracts.

What types of monetization are there for PEP?

Why does Governance around monetization matter so much?

Contractual obligations – Client AND supplier

Our clients benefit from our global supply chain leverage, and this is one of the reasons so many clients want to work with CBRE. However, many of our client contracts include strict wording around what we can and cannot collect or retain from the suppliers who service their contracts.

In addition, our supplier partner agreements are very specific on what fees can be charged and under what conditions.

We must ensure collection of WCP fees only on supplier expenditures allowed by the client where we can prove timely payment and tangible value.

The governance framework ensures that the WCP complies with CBRE’s internal policies, client contracts, and other regulatory requirements.

Managing Competitors

There may be cases where our supplier partners compete with CBRE

In certain cases, some of our partners in the program may compete with us.  This could either be within a region or a single line of business in a particular category 

Simply labelling our partners as “competitors” and not using them to support our clients is unrealistic, but rules must be applied as per the guidelines and principles

In some cases, suppliers can be dictated by our clients

So we have developed some guidance and governance to manage partners that are in our program and who compete with CBRE in various guises

Competitor Classification

• Assign competitors into 1 of 4 approaches
• Allows consistent approach and effective management of competitors to minimise use and how fits within the Partner Excellence Program.
• Within framework make genuine exceptions through governance meetings as required.

Process to manage competitors in the PEP

Key Principles:

 - Simply labelling our partners as “competitors” and not using them is unrealistic, but guidelines and principles must be used

- Competitors should only be used when best fit to meet client needs

 - Direct Competitors – cannot be Supplier Partner

 - Non-Direct competitors can remain in the Partner Program, but limit use to non-competitive services (e.g., Compass Food Only)

 - LOB’s & Geographies have right to make decision on whether to use competitors or not 

 - If LOB’s & Geographies would like to run an exception process, they can do so but is not part of this process, or the list managed by the Strategic Programs team

Roles and Responsibilities

Supporting the growth and development of our most important

partners

Working directly on accounts and with clients, you can directly influence the partners that our clients decide to work with.  As a result, we ask you to 

• Promote and grow our Program Partners with our clients over and above our non-program partners as they have been selected to provide exceptional services and value to our clients.  You can do this by accessing and reviewing our program lists of suppliers in each region
• Actively participate in supporting our Supplier Performance Program by providing feedback to surveys
• Actively participate as required in Business Reviews – critical to identifying new value for CBRE, discussing innovation and ESG
• Advise what are your clients needs to your Procurement Lead – this will help to ensure that not only are we selecting the right Program partners in the program but that we are providing line of sight to suppliers on our innovation and emerging client needs.