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Optimizing location and footprint
Successful chess players think many steps ahead about the role of each piece, even while they execute current moves. Before making strategic deployment decisions, businesses should apply similar forethought to the deployment of operations across the globe.
- Strategic moves
- Addressing uncertainty
- Location Strategy services
- Potential bottom-line benefits
- Additional resources
Most organizations recognize that geography is a key driver of corporate performance. Yet many maintain ineffective and inefficient footprints that can hamper talent attraction and retention, increase operating costs, reduce operating flexibility, overexpose them to risk, and depress shareholder value. Geographic variables such as reduce operating flexibility, talent availability, operating costs, risk, or tax regulations can change quickly. Mergers and acquisitions generate additional footprint complexity, often yielding overlap in some geographies and underrepresentation in others.
Few companies are deliberate and proactive in assessing their overall corporate footprint and the degree to which it supports the business strategy. Additionally, most companies lack mechanisms to effectively evaluate and react to business changes.
Deloitte’s Location Strategy practice helps companies across industries address some of their most complex and challenging location and footprint issues. We are objective location advisors—not brokers seeking to gain from a real estate transaction. We stay firmly focused on our clients’ priorities while developing and executing location strategies that add value and mitigate risk.
Our location professionals have worked in countries around the world, guiding multibillion-dollar deployment investments. Our practice leaders are highly involved in industry organizations—many serving as board members of those organizations—so we keep our clients current with industry developments and trends. Our broader team includes practitioners who speak multiple languages and hold industry-recognized accreditations (such as The Site Selectors Guild, AIA, CCE/A, CCIM, LEED AP, PE, and PMP).
We leverage the deep resources across Deloitte should in-country or other disciplines be needed, such as corporate finance, change management, risk management, supply chain, or tax. We assist companies in building the business case for location decisions, develop and execute implementation road maps, and measure effectiveness against internal expectations and industry benchmarks along the way.
What questions around location strategy should corporate leaders be asking in these times of uncertainty?
Here are some questions that should be top-of-mind, and how we can help address them:
Location Strategy services
Enterprise footprint optimization. We help executives hone their decision-making skills and resources so their asset deployment decisions incorporate an enterprise view, seek to capture benefits for the short term, and lay the foundation for long-term strategic priorities.
Site selection. We help clients find locations that access new markets, achieve their operating cost targets, improve access to talent, and facilitate an issue-free ramp up. From country analysis to detailed labor market and site due diligence, we bring rigor, objectivity, and multidisciplinary analytics to corporate location decisions.
Incentives negotiations. We advise clients in ways to drive an optimal incentives outcome for each job creation or investment project, using a results-oriented process for statutory and discretionary incentives that promotes a win-win solution for both sides.
Stay ahead with these articles from Deloitte’s Location Strategy leaders, via Chief Executive magazine:
- The international innovation imperative: Modern opportunities and challenges in R&D footprint optimization
- Impacts of the shifting Global Business Services landscape on location strategy decisions
- Confidential: Should we move headquarters?
- How location strategy must embrace the future of work
- How to receive incentives for corporate projects
- Tax reform implications for footprint decisions
Location decisions are long term and involve significant financial commitment and risk, often occurring globally, which makes a sound location strategy a critical component of a company’s overall business strategy.