Property Management
Customer challenges:
- Management processes has low or no transparency?
- Despite relatively cheap energy supply contract, energy costs are exploding?
- Continuously rising cost of FM-related services?
This occurance of daily problems will drastically cut into the profits of an enterprise. Dispite the best intentions, it puts a bad light on the responsible department manager.
This problem is structural and cannot be solved by simply renegotiating better contracts.
These kind of challenges are the speciality for the RAIMUND BERNING CONSULTING.
An international trading chain was faced with exploding property budgets and forecasts with no good explanation or reasoning.
Because the company was operating in Countries with different climate conditions, unique store sizes in each location, and different accounting practises, the budget forecast was different for each location.
RBC approached the problem by developing a Benchmark model and customized it for the related task.
The first analysis discovered the following as the underlingy problem: no clear definitions, no common standards, no company instructions and no corresponding accounting frames were provided to the Property Management.
Since each country defined Property Management differently, budgets and accounting procedures were completely different.
RBC provided a solution by drafting a company manual. It was presented and approved by the board of directors, the departments of Property Management, Accounting, Construction, Audit, IT and Legal.
After implementation oft he company manual, all definitions, standards and enterprise directives were summarised and then applied by all country organisations.
By correcting all budgets and accountings the forecasting process was clearly driven by transparency and reality.
Third-party budgets and costs have been identified and rearranged . Responsibilites were separated and interfaces clearly defined. The second, more detailed Benchmark procedure carried out the differences between the stores within one country.
On the basis of these results RCB was able to discuss the misunderstandings and gaps with the country boards and to take the right steps to ensure a transparent reporting. Furthermore, RCB initiated a master plan to streamline and to reduce expenditures.
RAIMUND BERNING CONSULTING analyzed the issues, developed and executed an action plan according to the findings. The successful program achieved an annual budget reductions in the two-digit million range.