Managing Property Performance
•
2 gostaram•489 visualizações
Learn how Operations Performance Management will clarify your business objectives, focus your employees on the activities that matter, and have tenants singing your praises! Watch the webinar on-demand: http://be.buildingengines.com/Performance-Management-Webinar-OnDemand-Reg.html
Recomendados
Mais conteúdo relacionado
Mais procurados
Mais procurados (20)
Destaque
Destaque (20)
Semelhante a Managing Property Performance
Semelhante a Managing Property Performance (20)
Mais de Building Engines
Mais de Building Engines (8)
Último
Último (20)
Managing Property Performance
- 2. Register for the complete series at www.buildingengines.com! Sarah Fisher sfisher@buildingengines.com Director, Marketing & Communications Building Engines
- 3. Some of the key questions that we thought you may have that we will be addressing today include: • What are key performance indicators and how should you go about establishing them? • What is the difference between static reports and real-time performance management dashboards? • What can a property manager do to better quantify their value? • What are examples of common commercial real estate KPIs? • And what are specific examples of how operations performance management can impact buildings performance?
- 4. Aurel Brudan Mr. Brudan is an international expert in Performance Management and a leading representative of a new generation of researchers and consultants that are reshaping the discipline. For the last 10 years, Aurel has worked in Europe, the USA and Australia, specializing in organizational performance management in many industries, including real estate and operations Aurel is also in the final stages of his PhD. candidature at the University of Melbourne, researching Integrated Performance Management Frameworks.
- 5. Key Performance Indicators (KPIs) are goals or targets that measure how well an organization is doing on achieving its overall operational objectives.
- 6. Airlines Call Centers Service Delivery Hotels KPI: On-time arrival KPI: First call KPI: Issue open to KPI: Revenue per resolution rate completion time available room
- 7. Performance Management is important for: Focus Insight What do we want to What daily activities What did we learn? improve? matter most to What do we need organizational to change to success? improve?
- 8. 1. Establish your organization’s goals and objectives TIP Use Technology: 2. Assign one KPI to each objective Dashboards to make it measureable are a great way to monitor 3. Create framework for KPIs and performance-based decision make ongoing making (i.e. It’s not enough to adjustments measure. Process adjustments must be made in order to improve)
- 9. ASK YOURSELF: Q: How may times a year do we review operational data? A: That’s exactly how many chances you have to make decisions and change. REAL-TIME REPORTING Technology Mobility Take Advantage • Less expensive • Live data and of Today’s • Not IT dependent reports at your • Easier to set-up fingertips Tools:
- 10. Think like a jail…. You can’t report on an escaped prisoner at the end of the month!
- 11. Commercial Real Estate: • Things are measured, but not necessarily the things that provide insights into actionable information. • Learn from other industries. • How much visibility do you really want?
- 12. 1. It’s not about promises, it’s about numbers: Set up some KPIs & Dashboards 1. What are the expected outcomes and how do we quantify? 2. Illustrate value through metrics that outline: • Savings • Service • Innovation
- 13. • Service Requests- Open to Complete (time) • Tenant Complaints- Submission to Resolution (time) • Accounts Receivable- Outstanding balances • New Tenants- Visits within 6 weeks of move-in date • Rent- collection and on-time payment • Vacancy Rates/Vacant Properties • Etc.
- 14. TOP 5 CRE KPIs: 1. Occupancy Rate 2. Service Requests/Emergency Repairs- Time to Completion 3. Vacancy Rate 4. Current Tenants in Serious Arrears 5. New Tenants Visited within 6 weeks of tenancy start date
- 15. Group KPIs in different categories to form the basis of dashboard categories. Maintenance Occupancy Tenant Contract Churn Relationship Management
- 16. Dashboard Scorecard
- 17. “Connect and form a system in which you understand the links and possible consequences of not meeting certain KPIs.”
- 18. Scott Sidman Senior Vice President ssidman@buildingengines.com Direct: 781.314.9356 Mobile: 617.908.0077 Fax: 617.848.5802 275 Wyman Street. Ste. 111 Waltham, MA 02451 www.buildingengines.com http://blog.buildingengines.com
- 19. Monitoring Tenant Service with Data Our client wanted to do more than just say they delivered great service, they wanted real data to prove service excellence to their owners and investors, tenants and prospective tenants.
- 20. To start, they asked: • Are we hitting our service delivery targets? • How do our people know how to prioritize tasks and what to do first each day? • Who are our peak performers and where do we need some remediation? • Which tenants are being underserviced or over serviced? • Which buildings are performing better than others? And Why?
- 21. Step 1: Established Service KPIs Step 5: Data Review Analysis Set targets and benchmarks for required service Reviewed the real performance data and identify levels- which varied based on issue priority level, gaps where documented performance did not tenant, day of the week, etc. match desired service levels. Step 2: Reviewed Process to Support KPIs Step 6: Improvement to Meet Targets Took specific actions to remedy the areas where targets were not met. Step 3: Made Process Improvement Recommendations Step 7: Ongoing Operations The system will monitor all activities and provide Step 4: Established Current Performance real-time alerts when service level thresholds are Began collecting data to establish current violated, allowing managers to turn their attention performance levels. to other day-to-day issues.
- 23. Operations Performance Management Arming brokerage and leasing teams with real data, real information, and real performance numbers to demonstrate your service. “Here is the quantifiable impact of our service delivery.”
Notas do Editor
- Good afternoon and thank you for joining us today. Today’s webinar topic is building operations performance management.
- My name is Sarah Fisher, Director of Marketing Communications at Building Engines, and we are sponsoring today’s presentation. This Webinar is part of our webinar masters series, where we bring you a detailed look at specific technology enabled best practices for commercial real estate operations, at no charge to you.This topic is an important one for property managers looking to better quantify and prove the value of their job function and department to owners, investors, tenants and brokers. If you ever have been challenged by your colleagues to prove the value of your property management team, or if you see opportunity to improve your property management performance through specific metrics, then you’ll really enjoy our discussion over the next 30 minutes or so.
- We have specially designed the content of today’s presentation for you senior property managers and property managers out there, so, Welcome. Some of the key questions that we thought you may have that we will be addressing today include: What are key performance indicators and how should you go about establishing them? What is the difference between static reports and real-time performance management dashboards? What can a property manager do to better quantify their value? What are examples of common commercial real estate KPIs?And what are specific examples of how operations performance management can impact buildings performance?
- Our featured speaker today is AurelBrudan, the CEO of the KPI Institute. Aurel and his team work around performance measurement and management across multiple industries including commercial real estate, so he brings a perspective and insights not only to look at operations performance management within our industry but also to share best practices and lessons from other industries. Aurel, thank you for joining us today. Aurel:Thanks for that. I’m glad to be here, thanks for invitation.
- Sarah:Aurel, we know that a central part of managing operational performance is with key performance indicators. Could you start by defining for our audience – how do you define KPIs? Aurel:The definition a KPI to me is a measured value that reflects the achievement of a desired level of results in a specific area relevant to the evaluated entity. So it's something that we measure to reflect the achievement of desired state. In service level agreements we have KPIs to monitor the achievement of the desired state of the service provided. We have KPIs in individual performance plans that relate to the performance of staff members. We have KPIs that are used as part of risk management and oftentimes they're the main key risk indicators in this context. Other scenarios are the ones that relate to portfolio and project management, supplier score cards are also used. So KPIs are used not just to keep track of objectives set at strategic level, at organizational level, but also at an operational context.
- Sarah:We know you work across many industries - can you share some examples of KPIs from other industries outside of commercial real estate? Aurel: There are seven industries that have their preferred KPIs that are used widely at the industry level. For example, the airline industry uses on time arrival as key performance indicator. Pretty much any airline has these KPI measures and many of them report this KPI on their website. Another example is the call center industry and the service management functional area mostly in IT organizations that often use first call resolution rate as a key performance indicator. So that relates to how many of the calls received are resolved during that first conversation without the need to go to second level support. But other very useful example of a KPI used for service delivery is the time it takes on average to resolve the request received from a customer. For example, in the public service it is about how long it takes to address a specific request of service from a citizen from the moment it is received by a government department until the moment it is resolved. Now, averages are not ideal in terms of measuring but in this context the interesting aspect is the fact that what is measured is not how long it takes to go from one step to another within the process or how quickly the order is registered in the system but the abstract is what matters to the citizen, that is how quickly the entire request is resolved from the moment it is submitted to the moment an action or decision was taken. Other examples are the hotel industry, in the hospitality sector, the revenue per available room, RevPAR, it's a very common KPI for that industry.
- Sarah: As you talk to people about performance management, what are you hearing as to what they are hoping to get out of their programs? What is the reason for setting KPIs in the first place? Aurel: I ask this question during my workshops. I ask participants why am I interested in establishing KPIs? What is the valued added by doing performance management, doing performance measurement at the organizational or departmental level? And there are three clusters of opinions. One relates to clarity. You have clarity around what is important, what do we want to achieve. Not just as sort of motherhood statements, we want to improve things, but around exactly what do you want to improve, how much do you want to improve, when do you want to improve. So KPIs are the ones that make objectives smart. If you have an objective with one, two KPIs you can call that objective smart. The second aspect is focus. Because you can use KPIs to guide decisions made by employees on a daily basis, what matters to them. So you know exactly when you go to the office each day besides the job description what you're there to do what is exactly what matters to the organization and to my department this month, this week, today. What do I need to do to ensure that I contribute to what the requirements of the organization wants to achieve? So then I can focus my activities on what matters. And the third aspect is insight, things that you learn from keeping track of KPIs. This links in a way to predictive analytics, being able to create a better picture around how things might take place in the future and being able to anticipate certain directions by reading the data that is obtained by keeping track of KPIs. So KPIs should be used not just for command and control, that's a common approach, setting KPIs to control what's happening in the organization and sort of rolling down within the organization what needs to be achieved, but these days another approach is to combine command and control with systems thinking to have the big picture of how the entire system is connected and to understand how influencing one part of the system influencing a certain KPI can have an impact on other parts of the system.
- Sarah:I know there is a lot of potential depth to this answer, but could you give us just a summary of how most organizations go about setting their KPIs. Aurel: How that is achieved is by establishing a set of objectives, at the organizational level that are cascaded down to operational level and then are reflected further down at individual level and of course objectives work much better when they're measurable. In order to do that KPIs are used to reflect the achievement of these objectives or key performance indicators. And a good practice is the approach in which each objective has at least one KPI attached to it that makes it measurable. Several tools that are used in organizations to help in making this simpler and easier to cascade are score cards and dashboards as well as initiative portfolios. Because performance is not just about establishing a desired state and about measuring performance but it's also about making decisions and taking action to improve the achievement of KPIs and objectives. And this needs to be done in a structured way.
- Sarah:At Building Engines, working with this every day, one thing that strikes us is performance management brings a shift from doing things reactively to proactively --- from reporting on what’s happened in the past to being able to impact what’s happening inside your operations as it happens. How do you describe the difference between static reports looking back at the past vs. real-time, actionable dashboads? Aurel: At the operational level the more often you look at the data the more chances you have to improve and make an impact on things sooner rather than later. In terms of the frequency of reporting, if you look at the data on a quarterly basis you have about three chances each year to make decisions and change things, so end of quarter one, quarter two, quarter three, because by the end of the quarter four the year is gone. Reporting on a monthly basis gives you about 11 such chances. At the strategic level, organizational level this might work but at operational level you want to be able to influence things with a higher frequency and as things occur. Technology these days makes it easier. It's more affordable, it's easier to configure and more and more tools don’t require huge investments and a lot of support from the IT team. So we live in a day where technology is closer to the business user by the fact that it can be configured by the business user, not necessarily by the IT team and it can be used with a higher frequency. Mobility is another trend that influences the way things are reported as these days access to reports tends to occur on a more frequent basis and through a more variety of platforms. Instead of having access to just paper reports or white boards organizations these days push report through in different electronic means. They can have a report that can be monitored live on a computer screen, you can have reports that are pushed on mobile smart phones, on tablets. Some organizations have large displays on the floor, especially in call centers where you know every minute how many callers you have on the line waiting, what was your average for the day. So there are lessons to be learned from different industries that had to use KPIs and report on KPIs through dashboards monitored live and as a result they improved their competency around this. This model, given the access to technology and the affordability of technology (inaudible) replicated in other areas. So the call center industry had to do it because of the nature of the industry in itself. Other industries are gradually adopting such a model of real time reporting but it's a tidal wave that will catch up with everyone.
- Sarah:There are so many different ways that real-time visibility can impact businesses and how they operate. Are there any examples from your travels that really stand out, I think our audience could use a good story… Aurel: I have attended symposium last year where one of the presenters recently implemented a balanced score card for an operator of jails, the national penitentiary system, and one of the interesting notes that was made was that the number of people that escape from jail is something that needs to be tracked live. You can't report at the end of the month a performance report, well, this month we had seven people that escaped, what do you do about it? You need on a live basis whenever such an event occurs to have the alarm going off and that they're supposed to indicate this issue and action needs to be taken on the spot. So the reaction needs to be immediate in this situation. It's not the situation of preparing a report at the end of the month, it's a matter of making decisions on the spot on a daily basis based on this indicator.
- Sarah: You mentioned to me previously that you’ve documented 70 KPIs in this industry and you’ve worked to prioritize and group them based on your community. Can you share some of those findings with our audience. Aurel: For 2010 this list includes as the most popular KPI in our database, occupancy rate. The second KPI on the list is emergency repairs completed on time. Next we have vacancy rate. Number four, current tenants in serious arrears. Number five, new tenants visited within six weeks of tenancy start rate. Now, these are just some examples of type of KPIs used. We've done work on grouping KPIs in different categories so the major categories are occupancy and we just covered two of them. That is a KPI that probably can be tracked on a monthly basis because the frequency of things changing is not that high. So occupancy is one category of KPIs and maintenance is a category that provides leading indicators for customer satisfaction. Then rent collection is one aspect and tenant relationship, that relates to customer satisfaction is another one. Contract management is another category relevant for the industry. And churn. This is expiring and rental revenue from leases that are in the process of expiring are some examples of such KPIs.
- So in terms of these categories of KPIs, they can form the basis of categories used in dashboards as well. The way to design a dashboard, a good practice is to cluster KPIs around common topics. A possible dashboard for the area would be forms of KPIs that relate to churn, maintenance, occupancy, then revenue, tenant relationship, contract management.
- Sarah:You spoke earlier about scorecards which keep track performance over time and dashboards which help monitor and guide performance in real-time. Can you talk about best practices for how you see those being applied within property management? Aurel:The interesting thing about this area is the fact that traditionally the approach was to have service level agreements in place and I think that good practice is to meet with customers on a monthly basis and present a score card with KPIs on how they will achieve during the month. I work with several organizations who have this approach and sometimes it comes from the service provider, so it can be the property manager that comes up with this initiative of establishing a set of KPIs and having a monthly meeting to monitor their achievement. Other times it can come from the way the contract was negotiated and the SLAs requirement and the use of the score card is the requirement presented by the customer. (inaudible) for calibrating, for checking if things are on track, making decisions around what needs to be improved. But indeed, more value comes from what is used during those 30 days at operational level, those certain indicators need to be tracked in real time and know the progress from one day to another because as a service provider you don’t want to just get to the end of the month and going into this reporting meeting with your customer with a set of figures that you weren't able to influence during the month. So you need to be able to day by day know exactly how you're tracking so that you don’t just have a surprise at the end of the month in terms of the performance achieved but you can influence those results on a daily basis. And hence the difference between the score card and the dashboard. In a way the score card is used to establish this desired state, what you want to achieve, and monitor it with certain KPIs but used mostly retroactively after things happen as a reporting tool and calibration while dashboards are used in real time as things occur to make decisions. And the metaphors used for (inaudible) are in terms of dashboards the dashboard is a commonly used term in the auto industry so we have the car dashboard which has dials that are used to inform us as we drive on certain aspects of engine’s performance so we procedure this information live while score cards are commonly used in sports and even for example in golf you have a score card used to keep track of things but they pretty much reflect whether or not you achieved what you wanted to achieve and it reflects the performance past the achievement of certain results. Whether it's basketball, whether it's football, the scoreboard that is used reflects the scoring progress but the performance was already achieved so you're just reflecting which team is a better team based on the play done so far.
- Sarah:Aurel, do you have any final advice or recommendations for the property managers joining us here today? Aurel:KPIs should be used not only to reflect performance at operational level, process level but they need to be used to connect the dots and to learn, to form a big picture. I think that that should be an aim to connect and form a system in which you understand the links and the possible consequences of meeting or not meeting certain KPIs. Because if you don’t fulfill maintenance requests on time this will affect satisfaction and in turn will affect your contract renewals. On the other hand, you also need to keep a balance between providing good customer service and achieving financial results. So you can't just go overboard in fulfilling requests on the spot or fulfilling all with a matter of urgency because this might cost too much in the end and might have a financial impact on the return. So KPIs can help in understanding the big picture and finding a balance between the various aspects of the business that are relevant to customers.see
- Sarah:We are going to be opening it up for question and answer in a few minutes; before we do that we are going to be joined by Scott Sidman, VP of Building Engines, to share a few insights around this topic of operations performance management. Scott, as you’ve been listening to Aurel here today, how does it strike you as you hear him talk about operations performance management within property management? Scott:The vision that Aurel has been speaking to is very much in line with Building Engines vision for operations performance management. Our customers have been telling us the importance of moving from reactive, reporting on what’s happened in the past to proactive, real-time dashboards and alerts which allow them to manage and impact operations as it happens. Applying Aurel’s managing of jail prisoner levels to property management, our customers are looking for ways to manage and track their service levels in real time. I’m respectful of everyone’s time today, so I’ll just share a quick example of what we’re talking about.
- Good afternoon and thank you for joining us today. Today’s webinar topic is building operations performance management.