5 steps for measuring the CRE metrics that matter most
As we settle into a post-pandemic world, corporate real estate (CRE) organizations are re-evaluating their performance measurement. They need to drive long-term transformation of their real estate portfolios to succeed in this new age. So, they are shifting from tactical to strategic approaches, with new objectives centered around human experience, sustainability, hybrid work, and social value.
To meet these goals and create a culture of data-driven decision-making, CRE organizations are rethinking their metrics. Identifying and targeting the right ones requires solid foundations to handle new data requirements and measure what really matters. But first, they need to evaluate the state of their current metrics and data opportunities.
Is your CRE organization ready to begin the transformation? Start by taking these five steps:
1. Understand corporate objectives
Adding maximum value requires an alignment of real estate and corporate strategy. First and foremost, identify the organizational goals you are trying to achieve. Then make sure you have the ability to measure them. For example, many companies have goals around sustainability and net-zero outcomes, along with targets for achieving operational efficiencies.
2. Select metrics that matter
Tailor your organization’s performance measurement approach by selecting metrics that are most relevant to your company’s specific goals and priorities. To do so, you should assess which metrics will help you track progress toward, and gauge achievement of, your goals.
3. Work across functions
Many metrics are complex and require data or action from other departments, such as HR, finance, or IT. You must identify key internal stakeholders and foster a collaborative approach to ensure greater alignment, which will add more value than you can achieve in isolation. A good rule of thumb is to select the departments that are involved in choosing, tracking, and evaluating metrics.
4. Build data capabilities
Data capabilities that support complex metrics will be a source of competitive advantage for many years to come. Your CRE organization should invest in the necessary tools, technologies, and expertise (e.g., data scientists and analysts) to gain business intelligence and data-driven insights. Make sure you map out the skills and tools you need to collect, aggregate, and analyze your performance data. Ultimately, any CRE organization looking to improve its performance needs to have the right technologies in place to handle new data requirements, measure what really matters, and extract the insights they need to succeed.
5. Act on data
In the past, CRE organizations have been notoriously slow to learn from their mistakes or spot any rotten apples. By deploying standardized and sophisticated metrics, your CRE team can better identify under- or over-performance and develop continuous measurement and improvement. Keep track of your lessons learned and the successes you can replicate.
Real estate is still a value driver for organizations, and there is a clear need to measure and articulate the value it creates. But traditional KPIs no longer fully answer the questions around how CRE supports an organization’s objectives and business strategy.
Are you measuring the metrics that matter? Find out in JLL’s new metrics that matter report.