zs city of evanston presentation 28 january 2015

Evanston | +1 847 492 3600

Introduction to City of Evanston Economic

Development Committee

Graham Webster, Chief Financial Officer

January 28, 2015

This presentation is solely for the use of client personnel. No part of it may be circulated,

quoted or reproduced for distribution outside of the client organization without prior

written approval of ZS Associates.

2 © 2015 ZS Associates | CONFIDENTIAL City of Evanston Presentation 28 January 2015

ZS is the world’s largest firm focused exclusively on delivering impact

through high-performance sales and marketing solutions

3,400+

PROFESSIONALS WITH DEEP

INDUSTRY AND DOMAIN

EXPERTISE HELP CLIENTS

SIGNIFICANTLY IMPROVE

THEIR PERFORMANCE

21OFFICES

WORLDWIDE

BARCELONA + BOSTON + CHICAGO + EVANSTON + FRANKFURT + LONDON + LOS ANGELES + MILAN

NEW DELHI + NEW YORK + PARIS + PHILADELPHIA + PRINCETON + PUNE + SAN DIEGO + SAN FRANCISCO

SÃO PAULO + SHANGHAI + TOKYO + TORONTO + ZÜRICH

OUR

OFFERINGS

RANGE

FROM


Our focus on sales and marketing, combined with an integrated range of

services, maximizes client value

Go-to-Market Strategy

Customer Insights

Customer Segmentation

Customer-Centric Marketing

Product Launch

Forecasting

Marketing Mix

Marketing Performance

Measurement and Optimization

Business Intelligence

and Technology

Direct & Indirect Channels Mix

Sales Force Design

Targeting & Territory

Management

Sales Process &

Account Planning

Hiring & Selection

Learning & Development

Compensation & Rewards

Sales & Marketing Interface

Value Proposition


Boutique

Firms

General Management Consulting Firms

ZS provides greater depth of expertise than general management

consulting firms, and more breadth and capacity than boutique firms

We are uniquely positioned to help clients address their most critical sales and marketing challenges.

Sales and marketing focus

Strategy to implementation

Deep industry expertise

Data-driven approach

Global presence


We have partnered with more than 1,200 clients in over 70 countries

across a wide range of industries

We serve many industries including:

Pharmaceuticals & Biotechnology

Medical Devices

High Tech & Telecommunications

Our broad industry experience gives us insights that can be leveraged to develop

high-impact solutions that address our clients’ challenges and opportunities

Our global scale and footprint allows us to respond to client issues quickly with

deep analysis, realistic recommendations and streamlined implementation

Financial Services

Travel & Transportation

Industrial Manufacturing


Our history in Evanston

Founded in 1983 by two Evanston residents and Kellogg Professors:

Evanston office represents a unique mix of Client facing Consultants and Corporate HQ;

Office has grown steadily since inception and headcount growth of 15% in each of the

last three years. Growth is projected to continue

ZS Evanston Total Headcount


ZS in Evanston Today

Currently 326 Employees: 134 Consulting Professionals and 192 Corporate HQ staff;

Several key global decision makers based in Evanston;

– MD, CFO, CHRO and Founding Directors

Our Evanston workforce is highly educated and professional:

– All employees have college degrees;

– Average annual salary $110,000;

– Healthy mix of Evanston residents (25%) and inbound commuters (75%);

Strong relationships with and significant contributor to local businesses:

– Global visitors (clients, vendors, visiting employees) fund @5,000 nights of lodging a year in

downtown Evanston;

– Key client of First Bank & Trust who remain our primary global banking partner;

– Corporate spend of over $2M per year with local vendors;

– Significant daily personal spend by ZS employees with local vendors;


Our Current Evanston Office

We currently lease space across 4 floors from NW at 1800 Sherman Avenue:

The building can not accommodate our future needs:

– Lack of contiguous space or room for expansion;

– Challenging and inefficient floor plate;

– Building not maintained at the quality needed for external needs (ie clients, recruits);

– Lease expires in 2019 so a long term solution is required;


Strong desire to stay in Evanston long term but challenging to do so.

Severe shortage of large high quality office space in downtown Evanston.

– Identifying adequate space with the right economics and timeline is very challenging.

ZS is rolling out a Global Workplace Strategy project to improve utilization of our Office

space and improve the employee environment;

– This requires modern buildings with natural light and large regular floor plates;

– Critical that our HQ is a “flagship” location and early adopter of change;

In the past year we have evaluated:

– Evanston options; 909 Davis, 1007 Church, Chicago/Main, Library Site-Build to Suit;

– Relocating to other Suburbs (near O’Hare or our key clients around Deerfield);

– Consolidating operations into downtown Chicago (many possible buildings);

In December 2014 an unexpected opening arose to lease long term space at the Rotary

Center. We are acting aggressively to find a way to make this work and allow us to stay

in Evanston.


Rotary Center Proposal

ZS to lease 47,000 sq ft (2.5 floors) at Rotary Center:

– 15 year term beginning 1/2016 (fit-out) with occupancy by 1/2017;

– Contiguous space with expansion potential as need be;

– Efficient building with good fit for new ZS Workplace model;

– Professional building with significant owner occupancy;

– Incurs termination fee due to NW ($850K, reduced to $375K through negotiation)

Move incurs significant expenses:

Tenant Improvements $4,230,000

FF&E $1,739,000

Soft Costs $470,000

Moving Costs $246,750

Early Term Fee to NW (negotiated) $375,000

Total $7,060,750

Rotary Funding ($3,995,000)

Shortfall for ZS to fund $3,065,750


Floor Plan: 6th Floor


Proposed 6th Floor Space


ZS is requesting a funding in the Region of $750,000 from the City

towards this shortfall of $3.1M

This allows ZS to stay in Evanston by bringing forward its move to take advantage of this

available space being available. Without doing this we do not foresee there being suitable

long term space for us in Evanston;

Funding from the City will be used to create a high quality 6th floor reception and external

meeting space. This showcase space will be used for Recruiting, Client meetings and ZS

leadership forums (est total $1.4M);

Contribution will benefit ZS, Rotary, NW and the Evanston community including many

businesses that benefit from ZS’s current and future presence in downtown Evanston.

ZS is committed to the lease but can withdraw before 3/31/15 based on two

contingencies;

– Reaching a satisfactory termination agreement with NW (agreed in principle);

– Securing requested economic package from the City;

.

Approving our request will clear the remaining contingency, confirm our lease and

ensure ZS’s continued presence in Evanston.


Thank You

zs city of evanston presentation 28 january 2015

Documents

presentation evanston

evanston office

evanston residents

evanston todaycurrentl

zs evanston total headcount

marketing challenges

marketing solutions

marketing focusstrategy