Performance

47 Most Important KPIs for Property Business

kpis property
REAL ESTATE OFFICE
Advertising and promotion
Average commission per sale
Average commission per salesperson
Commission margin
Net profit
Office cost (telephone, fax, and other office cost)
Rent cost of premises
Sold homes per available inventory ratio
Total income
Wages and salaries (including commissions and vehicle allowances)
Year-to-year variance on average sold price
Year-to-year variance on dollar volume of sold listings
Year-to-year variance on sold average dollar per square foot
COMMERCIAL PROPERTY MANAGEMENT
Annual return on investment in percentage
Construction/purchaser rate – New constructed or purchased units over time
Cost per square foot
Equity value growth in percentage
Lease events coverage ratio – Number of lease inquiries over number of available units
Management efficiency – Number of leased spaces over number of staff
Market share growth
Monthly return on investment as percentage
Occupancy cost – Cost per occupied unit
Operation cost to rent income ratio
Percentage of rent collected
Price to income as percentage
Profitability per square foot
Real estate demand growth – Market rental demands
Rented space usage quality – Average number of tenant visits over rented space
Renting cost – Renting cost per square foot
Renting return on investment – Rent income over cost
Revenue per square foot
Risk metrics as percentage
Total property management income per property manager
Usage efficiency – Available renting square feet over number of staff
Utilization (vacancy) rate – Rented square feet over total square feet, or rented units over total units
REAL ESTATE INVESTOR
Average gross multiplier for portfolio
Cost per square foot to value per square foot ratio
Equity to value ratio
Gross multiplier per commercial property
LTV (loan to value) ratio per property
Mortgage rate index
Overall LTV (loan to value) ratio for portfolio
Price per square foot to value per square foot ratio
Profitability per square foot
Property value growth (market trend)
Purchase price-to-appraisal value ratio
Rental value growth rate ROI (return on investment)

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69 Most Important KPIs for Manufacturing

Asset utilization
Availability
Avoided cost
Capacity utilization
Comparative analytics for products, plants, divisions, companies
Compliance rates (for government regulations, etc.)
Customer complaints
Customer satisfaction
Cycle time
Demand forecasting
Faults detected prior to failure
First aid visits
First time through
Forecasts of production quantities, etc.
Increase/decrease in plant downtime
Industry benchmark performance
Integration capabilities
Interaction level Inventory
Job, product costing
Labor as a percentage of cost
Labor usage, costs-direct and indirect
Machine modules reuse
Maintenance cost per unit
Manufacturing cost per unit
Material costing, usage
Mean time between failure (MTBF)
Mean time to repair
Number of production assignments completed in time
On-time orders
On-time shipping
Open orders
Overall equipment effectiveness
Overall production efficiency of a department, plant, or division
Overtime as a percentage of total hours
Percentage decrease in inventory carrying costs
Percentage decrease in production-to-market lead-time
Percentage decrease in scrap and rework costs
Percentage decrease in standard production hours
Percentage increase in productivity
Percentage increase in revenues
Percentage material cost reduction
Percentage reduction in defect rates
Percentage reduction in downtime
Percentage reduction in inventory levels
Percentage reduction in manufacturing lead times
Percentage savings in costs
Percentage savings in inventory costs
Percentage savings in labor costs
Percentage savings in transportation costs
Planned work to total work ratio
Predictive maintenance monitoring (maintenance events per cycle)
Process capability
Productivity
Quality improvement (first-pass yield)
Quality tracking-six sigma
Reduced time to productivity
Reduction in penalties
Savings in inventory carrying costs
Scheduled production
Spend analytics
Storehouse stock effectiveness
Supplier trending
Time from order to shipment
Time on floor to be packed
Unplanned capacity expenditure
Unused capacity expenditures
Utilization
Waste ration reduction
Work-in-process (WIP)

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Solution Focused in Building a Great Team – “Group vs Team”

Kevin Wong

Think of 20 people riding on a bus, just like what you see in the picture.  They are together in the bus heading in the same direction, at the same time and speed, and under the direction of a leader (bus driver). Do these 20 people make up a team?

In reality, these 20 people are most likely to be strangers to each other, with their own purposes for being on the bus.  They are also likely to get on and off the bus at their stops, and are unlikely to speak with each other during their ride.  At best, these are a group of random people who appeared at the same time. What are the dynamics, or driving forces, for a group then? A group is characterized by members driven by individual goals and the need to accomplish them as quickly as possible. The group atmosphere is usually one of mutual suspicion and reluctance to share personal feelings and thoughts.  The group is also likely to be unstable with members joining and leaving at will.  Should group members interact (which is unlikely), one or more members will attempt to dominate to protect his/her self-interests. 

What are some examples of groups that you are familiar with?  Well, people at public parties, spectators at a game, attendees in a conference, and etc. In some ways, a new group of colleagues who get together for the first time for a project may also exhibit some of the behaviors just mentioned.

There is often a great deal of confusion as regards to groups and teams. This is due to the fact that, in common usage, we use the terms interchangeably. We refer to a group as a team and sometimes vice versa too. However, it must be emphasized that a team is not the same as a group. In fact, team is a special kind of group; something more than a group.

Now, think of footballers riding a bus…do the members form a team?  Why do you think that?

Think about what characterizes most football teams – members share a clear mission (to win the match) and have specific roles and responsibilities that are related to each other. You will also find them mutually motivating each other along the way and celebrating successes after each win.

Effective teams are characterised by a number or driving forces:  members share a common goal, are accountable for and committed to their interdependent roles, and work at building mutual respect and trust through open communication.

So, would it be right to say that teams are good and groups are bad? Absolutely not. A better question to ask is: when do you use a group and when do you make the extra effort to develop a team? The reality is that groups are far easier to create than teams, so it makes sense to be a group when the following exist:

  • outcomes have been defined by the management
  • the decisions and process are already been determined
  • buy-in is not necessary
  • time is a critical factor and there is minimal management support for teaming

To form the group, identify a strong, effective leader and empower the person to recruit group members, formulate the goal and approach and drive decision making. This approach would be practical for short-term projects with outcomes already defined, such as planning for the company’s annual dinner and dance event or team-building program.

Teaming, on the other hand, should be used when you need broad buy-in for the best results, when no one person has the answer and when shared responsibility is important to the success of the goal. To achieve a real team is difficult and time-consuming. There is no magic bullet that will transform a group into a team overnight. It takes time to develop the skills to work well together and understand how to solve problems and make decisions effectively. To learn more about how we can build effective and high performing teams, we need to first start with understanding what a team is. I will explain in greater details in my next article.

Kevin Wong, Powerwoosh Asia Bhd.

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Remote performance management – The new Norm

custom performance coaching

“All management has become change management”

Harvard Business review

While some companies have grappled with adapting their culture to one of having to manage remote teams’ others have found to their surprise that they could increase productivity through remote work with relative ease.

In essence, the rapid changes forced upon us all through the Pandemic has swiftly impacted the way work is done and managed and we had to embrace it swiftly or suffer unchartered consequences.

In the past as technology advanced in the workspace Human resources practisioners started to advocate a ‘High Tech/ High Touch approach, sending a warning signal that we would do well to not over focus on tech at the expense of empowering our workforce and creating a healthy work environment for them.

Remote work has challenged our capacity as leaders and forced an urgent and multi-layered question upon us:

How do we ensure quality engagement, employee motivation and a positive and sustainable high-performance culture within the context of remote work?

 Oh, but wait a minute ….

The above question is not complete- How do we manage the new norm of remote work within the context of waves of change thrusted upon us around every corner at dizzying speed?

Questions such as the above can be intriguing but they can also be overwhelming unless we take brave action towards practical solutions. It is high time that the paradigm is shifted from sharing discourses and philosophies through well marketed webinars to implementation of useful change initiatives.

The master Philosopher and Poet Rumi said:

‘As you go out on the way, the way appears’

An interpretation of his eloquent words can be that by taking swift action based upon professionally researched information (limited during the new norm) the answers will come.

Some of our clients (whom we will not name for the sake of privacy),  has weathered the storm for various reasons, yet three key and common reasons are highlighted for the purposes of this writing:

  • They have maintained their well-established Learning Culture even when not in operation through regular knowledge sharing sessions both internally and from external experts.
  • They always have taken a strong stand on their company values but even more so during lockdown. Their value system is not a philosophy it is a non-negotiable practice.
  • Daily continuity meetings stimulated creative solutions, fostered solidarity in leadership and built confidence in employees.

They rose to maximum production capacity within an impressive timeframe and it is almost ‘business as usual’ for their teams

Now, add  time-saving ,engaging and inspirational performance management to sound Change Leadership principles such as displayed by some of our clients and you might just have stumbled upon a potent combination that will help you thrive and be sustainable post Pandemic.

A Harvard and Gallup study has proven that 90% of all employees on average need clear goals , kpis’ , clear information on what to execute and how to execute it. A lack of clarity on the way forward is therefore a red flag.

Considering the absence ‘of a crystal ball’ wherein all of us can remotely view a certain future we can do well to ‘future-proof’ our companies by:

  • Creating a sustainable Learning culture
  • Taking a stand on our company values
  • Obtaining buy in from all stakeholders and co-creating solutions
  • Giving employees clarity through goal and kpi -setting
  • Inspiring the workforce through quality leadership

All of the above is possible to achieve even with remote working teams. Considering the wealth of technology available to us we can apply a high tech/high touch when it comes to engaging our team members.

Online Performance management has progressively become more engaging. By aligning the hearts and minds of our team members to the Vision, purpose and values of the company and through inspirational and fair management of tasks and KPIs we can create a new and bright future together.

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Solution Focused SMARTEST Goal Setting Principles

Goal-setting is a very important part of our lives because the whole human endeavor is geared towards setting and achieving goals. Goal-setting provides a sense of direction for every aspect of life.  It helps us to stay focused and achieve what we want in life – getting into better shape, live more healthily, build a successful career, venture into business, and meet our financial goals. Without setting goals, you lack focus and you are drifting through life and you will be subjected to a series of haphazard events. Remember, success is about goal setting and the rest is just a conversation!

A lot have been written on the goal setting principles and one of the most popular ones is SMART Goals. Today, I want to share with you an improved or upgraded version of the SMART Goals known as SMARTEST Goal-Setting Principles. The objective of the SMARTEST Goal-Setting Principles to help you to achieve absolute clarity on the goals you set, whether is for personal, team, department or for your organization.

Now, let’s take a closer look on SMARTEST, an acronym that stand for Specific, Measurable, Action-Oriented, Realistic, Timely, Ecological, Signed, Thorough.

Specific:

How clear are your goals? Are your goals specific enough that a 5-year old child also understand? What exactly do you want to achieve? The clearer your goals are, the higher chances you will achieve them. When I run sales-related training, I always heard people said “I want to make more money” or “I want to achieve financial freedom” or “I want to improve my lifestyles” or “I want to be healthier” or “I want to be a Millionaire.” All these goals are not achievable because they are vague and not specific enough. To set a clear and specific goal, you could ask yourself the following questions:

  • What specifically do I want to achieve?
  • What outcomes do I want?
  • How do I know I have achieved the goal?
  • Where, when, how, and with whom do I want to achieve my goal?

Measurable:

A goal that fulfill this principle means that at all times you know where you are in terms of reaching your goal. Measurable goals mean that you will be able to answer the question of “What will you see, hear, feel when you reach your goal. It means breaking your goal down into measurable elements. You’ll need concrete evidence.  To set a measurable goal, you could ask yourself the following questions:

  • What will I see, hear, and feel when I achieve my goal?
  • Where are you now in terms of reaching your goal?
  • What is my next milestone?
  • How will you know when you have it?
  • What are some concrete evidences to suggest that I have achieved it?

Action Oriented:

The goals you set must be tangible and actionable. To ensure your goals are actionable, it’s important to break down your goals into smaller steps or sub-goals. This will enable more focus and help prevent pushing the goals to the side due to lack of clarity. To set an actionable goal, you could ask yourself the following questions:

  • What is my next baby step?
  • What action can I take to move one step closer to my goals?
  • What needs to change in order to move forward?
  • What can I do differently to move up one point higher on the scale?
  • What do I need to do more and better to achieve a positive result?

Realistic:

To increase the chances of achieving your goals, your goals must be achievable and realistic. A lot of people set themselves up for failure as they set lofty goals which are unrealistic. This is one of the most common mistakes that people make when they set goals. Setting unrealistic goals may destroy your confidence and generate negative emotions. Setting realistic goal doesn’t mean you have to set an easy goal, but rather the goals must be challenging yet achievable. To set a realistic goal, you could ask yourself the following questions:

  • Are my goals attainable?
  • How can I differentiate between an ambitious goal and an unrealistic one?
  • Realistically, what can you envision?
  • Where do you see yourself in that picture?
  • If you could change anything to make your goal realistic, what would it be?
  • Is this goal realistic enough to inspire you to take action? 

Timely:

We heard this too often, “Time is money” and it’s true that the goals you set must be time-bound, otherwise you are wasting your time and effort.  Thus, make sure you set deadlines, for yourself and your team, and go after them. Keep the timeline realistic and flexible, as sometimes you may need to adjust the dateline accordingly due to changing conditions. With a targeted dateline, it motivates us to take action and move forward. To set a timely goal, you could ask yourself the following questions:

  • When do I want to achieve my goals?
  • How do I develop a clearly define timeline to achieve the goals?
  • What is the realistic time frame to achieve the goals?
  • How can I set a reasonable dateline that can keep the morale high?
  • How do I set a dateline that creates urgency?

Ecological:

Ecological is such a big word, but if you are serious in achieving your goals it’s critical for us to understand the need to set goals that serve us well holistically. Ecology means how life interacts with other living things and their environment in a seamless way. Simply put, the goals you set must serve you well in both your personal life and business life, as well as in the entire ecosystem that you operate in. To set an ecological goal, you could ask yourself the following questions:

  • Are your goals ecological?
  • For what purpose do you want this?
  • What will you gain or lose if you have it?
  • What will happen if you get it?
  • What will happen if you don’t get it?

Signed:

A lot of people are lazy in setting goals because they said “I know what I want to achieve, they are already in my head.” Having an idea in our mind on what we want to achieve is not good enough because the power of goals lies on whether we have our goals written down and make them concrete. To take this one step further, if you can translate your goals into a drawing and make it compelling and attractive, it would make it easier for you to visualize your goals and to make them become reality. To ensure you have your goals written down and signed on it, you could ask yourself the following questions:

  • How do I make my goals become so compelling & attractive?
  • How motivated & committed am I to achieve the goals?
  • What are the benefits to achieve the goals?
  • How would my life change as a result of achieving the goals?
  • What will this outcome get for you or allow you to do?

Thorough:

An achievable goal requires a well-thought-out plan with strategy and execution plans in place. You must have a comprehensive plan to increase your chances of achieving your goals. The plans must include more than one way to get to the outcomes. A good plan will give you more choices to reach your destination. If plan A doesn’t work, what would be your plan B? You must be ready to face the unexpected and be able to provide alternative solution to overcome any challenges you face. Like the old saying, “if you fail to plan, you plan to fail!” To set a thorough goal, you could ask yourself the following questions:

  • How do you measure your progress?
  • What is the evidence procedure that tells you are on the right track?
  • What resources are needed to achieve your goals?
  • What do you have now, and what else do you need to attain your outcome?
  • Who can give you extra help to make it easier for you?  
  • Who will do what and by when?

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