How P&G and JLL Transformed Corporate Real Estate

In 2000, A.G. Lafley took the helm as P&G’s CEO to lead the organization into the 21st century.

Innovation became a hallmark under A.G. Lafley’s leadership. Questioning the sustainability of the in-house-invent-it-ourselves model, Lafley bet looking beyond P&G walls could produce highly profitable innovations that would drive value for both P&G and the parties.

The thinking required rejection of “not invented here” to enthusiasm for those ideas “proudly found elsewhere.” By 2003, P&G extended this thinking to how they worked with suppliers. P&G believed that, by working with world class outsource service providers it could drive costs lower and ensure service offerings remain on the leading edge of best practice.

In 2003, P&G signed a groundbreaking contract with JLL that spanned 60 countries and included facility management, project management and strategic occupancy services. While the size and complexity of the deal was a first for both companies, the approach for the commercial contract was also a first. Simply put, P&G wanted an outsourcing relationship that challenged JLL to not just take CARE of their buildings, but to take CHARGE of their buildings.

The companies created a commercial agreement that was “Vested” in nature. The solution was to flip the conventional outsourcing approach on its head where P&G would create a business model around contracting for transformation instead of contracting for day-to-day work.