In Times of Stress, Look to Data that Matters for Changing Business Strategies
Marking Real Estate and Business Decisions
In times of stress, much like we are all in together now, corporations immediately change their business strategies and objectives to prepare for difficult times ahead. Expansion becomes contraction, "workplace" is now focused on wellness and "gathering", corporate processes are rapidly condensed, major decisions are "paused", and pending layoffs become immediate. The primary corporate driver, once again, becomes cost-reduction, strategic re-positioning and survival. However, this says nothing of the intense pressure put on real estate departments to review, define, present, obtain approvals, implement and then measure financial results from structural and process changes.
Data has always been critical to decision-making. In today's environment, it is more important than ever. However, all data is not equal. Making rapid recommendations requires a complete perspective on key data from every function and department. With the data being centralized, a company is more highly effective and productive. This centralization allows CRE to efficiently examine all factors creating cost savings and to project the potential savings if certain actions are taken. Without data centralization, CRE effectiveness is greatly decreased and puts you vastly behind your competition.
For MetLife, in a change of operating strategy, we identified 5,000 unused workstations; for UTC over 5,500 EMEA locations existed when 1,500 were anticipated; for Qwest, our strategic challenge was exiting 7m sf of office space in downtown Denver without disrupting downtown's occupancy balance. All were critical in managing and reducing operating costs when a new strategic plan was adopted.
Basic, traditional actions for your locations should be taken. These include re-negotiation, blend and extend and other standard approaches. However, the strategic process begins with an understanding of how to correlate your data, which is math, science and art. It encompasses defining which factors are the real drivers of savings, which are immaterial, which have short- and long-term effects, and which decisions have political implications. CRE's recommendations measure the potential savings over time, costs to achieve, effects on cash flow, human capital, business and logistical operations. It also includes a schedule of implementations over time based on priority and preference.
With change comes opportunity
For corporate real estate departments, this opportunity allows you to once again demonstrate your value in creating meaningful contributions to your company in a time of distress. Step up, be proactive, get a great team to support you, and get started.
Real Clear Software's commercial and cloud based real estate management software offers many advantages over excel spreadsheets and standard lease administration programs. RCS integrates portfolio, transaction and document management, project management, data security, performance measurement, data analysis & comparison, real time data access, stakeholder collaboration, CRM, demographics, and generation of various reports.
For more information on Real Clear Software, visit https://realclear.software, email email@example.com, or phone (949) 445-6220. Craig Morris Co-Founder, Real Clear Software