What makes a Great KPI?
KPI’s are commonly requested by our Yardi clients and are often represented in standard and custom reports using Crystal Reports or SSRS. So what makes a great KPI? Our consultants are strong advocates of what we refer to as: “M-C-A” Measurable, Common understanding and Actionable. Great KPIs require all three (M-C-A) and typically start with a Measure represented by a $, # or %. The measures should be supported by a Common understanding around the source of the data, the method of calculation, and the desired targets. Periodically our consultants will host a cross-functional team meeting to assist clients in reaching an internal agreement on specific measures such as gross vs. net revenue or the calculation of % leasable space. Finally, great KPIs should be Actionable. Actionable refers to the underlying business commitment to keep a pulse on business performance and to hold specific people accountable for the results. Actionable also refers to the documented set of future actions that will be used to adjust the ‘people, processes or technology’ if the KPI targets are missed.
When to implement new KPIs?
There’s no time like the present. January is often seen as a beacon of opportunity to make organizational changes including the implementation of new KPI’s (although other times might be best for your organization). Why? Well there are two key reasons: 1) You’ll most likely have your year-end measures which can will assist in setting a base-line for targets and future comparisons. 2) Equally as important are the psychological aspects of a new calendar year. Typically employees return from their vacations and holiday celebrations a little more relaxed and a little more open to change. As the various media outlets focus on forward looking statements of the ‘year to come’, why not take advantage of such an opportunity for your internal business changes? The trick is to start now with your plans and preparations.
Sample KPIs in Real Estate and Property Management
Sample KPIs and ‘canned custom reports’ are always a popular request of our consultants, the trouble is that each organization is a little different: different in their adoption of Yardi; different in their measures and methods of calculation; and different in their cultural interpretation of results and relating actions plans. That being said, the following are some popular KPI’s, though many do require some additional effort and Yardi configuration to ensure that the right data and measures are captured and calculated in an accurate and constant manner.
% Tenant satisfaction with facilities
% Repairs completed on or before time limit
$ Occupancy expense per square foot
# Staff per parking space ratio
$ Average rent per square foot per floor
Want to learn more,
I can be contacted by email or by phone 866.517.1088 X 263.
Best Regards,
Don Robinson
