Do you have the data you need to support CRE metrics that matter?
In our last post, we discussed the evolution of metrics that matter. Metrics that matter require real estate data and broader enterprise data. But many commercial real estate (CRE) organizations are not prepared for a data-driven decision-making culture.
- 62% of organizations lack the technology to effectively analyze workplace data
- 70% of CRE organizations maintain multiple systems and data sources to manage their portfolios of people, places, and things
- 100% of enterprises have more data coming from more sources, which makes it increasingly difficult to deliver actionable insights
Data readiness is imperative to support metrics that matter. CRE organizations need to accelerate technology investments to acquire and apply their real estate data to enable better decision-making, maximize efficiency, build resilience, and reduce operating costs. Expanding the scope and depth of real-time data collection will also help boost portfolio agility and flexibility. But there is still work to do. The JLL Future of Work Survey 2022 revealed that:
- Only 13% are collecting data on an ongoing or real-time basis and leveraging advanced forms of analysis
- 43% plan to accelerate investment in leveraging data and analytics to enable real-time decision-making
- 56% already introduced or plan to introduce data science and statistical modeling by the end of this year
Furthermore, in a real-time poll during our recent Metrics That Matter webinar, nearly half of the respondents said they do not or only intermittently collect and report on real estate data, such as space utilization, operating costs, and energy consumption.
It’s a vast landscape; metrics cover all kinds of data. So where do you start? First, you need to answer these questions:
- What data will you need?
- What data first?
- What data will be easy or difficult to get?
- What data is good enough to use?
Then you need to prioritize what’s common to all metrics, like location data, and risks and opportunities.
The reputation of your data is crucial. Stakeholders need to trust it. While it’s never perfect, you should strive for 4C data quality:
JLL Technologies’ team of real estate and technology experts has partnered with a variety of clients to build successful data and BI programs. These engagements uncovered valuable lessons to keep in mind when identifying your metrics that matter and building your data-driven decision-making culture.
Be agile, not perfect.
You won’t be able to wait for perfect data or an enterprise data warehouse. Help your audiences and data suppliers prioritize. Focus on partnerships with HR, finance, and procurement—they are essential.
4C insights and data fluency will keep you on track.
When everyone knows what data to use (and its limitations) and how metrics are calculated and for whom, you’ll have more time for quality conversations and avoid confusion and reconciliations.
Want better data? Start with accountability.
When you present your data limitations by things that people manage—projects, buildings, and spaces—it’s easier to fix problems.
Build a business case—now.
Data improvements require technology investments, process and role redesign, and reskilling. Linking data improvement to business outcomes increases perceived value and accelerates your improvements.
Are you prepared? The biggest mistake organizations make is not starting.
How to harness your data for metrics that matter
- Develop a roadmap
- Build your business case
- Shift from ambitions to actions
- Improve your forecasting
- Change how you do things
- Achieve agility