Cargill RFP Response

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INDUSTRY TRENDS

KEY TO DEVELOPING AN ORGANIZATIONAL FRAMEWORK Benefits & Risks of Different Organizational Alignment Models

There are benefits and potential risks to many operating model structures. They key is balancing each of these considerations against Cargill’s specific real estate portfolio, and alignment against Cargill’s overall business strategy, internal decision making framework, and global stakeholders.

ALIGNMENT BENEFITS

RISKS

• Redundancy of resources • Broad knowledge base required • Technical expertise not shared • Isolation • Confusion in manager hierarchies • Silo potential • Narrow focus • Conflict over resources • Lengthy and inefficient communication channels

• Ability to respond to unique needs • Improved communication within geography • Ability to build and manage local relationships • Cross functional teams

Geographic Alignment

• Greater specialization • Efficiency • Avoids duplication • Enables best skills to be applied

Functional Alignment (Transaction, PM, FM)

• Clear career path • Process excellence

• Silo potential • Redundancy of resources

• Responsive to customer needs • Strong service emphasis • Increased accountability • Earlier strategic visibility • Greater influence

• Broad knowledge base required • Technical expertise not shared • Conflict over resources • Possible over customization

Customer Alignment

• Redundancy of resources possible • Broad knowledge base required • Technical expertise difficult to share • Competition amount product groups

• Specialized knowledge • Develop expertise around assets • Manage vendor improvements

Asset Class Alignment (Space Type)

Proposal for Real Estate & Incentives Advisory Services CARGILL 31