Tips to define effective corporate real estate KPIs
Are you making progress toward your corporate real estate (CRE) goals? If not, then you may be tracking the wrong key performance indicators (KPIs).
Measuring the right KPIs can help you determine whether your CRE strategy is working. Measuring the wrong KPIs can lead to wasted time analyzing numbers that won’t help you get ahead.
How can you make sure you track the KPIs that matter most to your organization?
First, it’s important to understand the difference between KPIs and metrics. KPIs focus on goals and objectives; metrics measure specific business activities that help you achieve your KPIs. In other words, metrics are data that can inform your KPIs.
To define effective KPIs for CRE, follow these best practices:
- KPIs should be connected to strategic CRE goals and help you answer critical business questions. What do decision makers, managers, and stakeholders want or need to know? What are your CRE priorities? This information can help you establish practical KPIs that align with strategic direction, so processes and people move in the same direction—one that benefits the organization.
- Establish clear, well-defined KPIs. Instead of developing a vague KPI like, “We want to decrease churn rate,” create a specific and measurable KPI: “We want to decrease churn rate by 10% in the next six months.”
- Make sure you have metrics to support KPIs. If your goal is to reduce energy use by 15% in Q3, then be sure you have access to energy-usage metrics to help you monitor progress toward that goal. If you create a KPI focused on improving employee satisfaction, then be sure you have metrics that detail the efficient resolution of work orders and workplace experience.
- Don’t go overboard. When you establish too many KPIs, they can become difficult to manage and respond to effectively. Remember, these are key performance indicators (the performance indicators that are of crucial importance). KPIs should be manageable, so they don’t require too much time or energy to track.
JLL Technologies is here to help you identify KPIs and operational metrics that support your workplace strategies and objectives.
We can help you define, clarify, and consolidate your business intelligence, reporting, and performance measurement framework, so you have a clear picture of your CRE strategy—and how to get there.
Ready to define the right CRE KPIs for your organization? Contact us. We’re here to help.