To make a team succeed is not a go alone endeavor, it requires collective wisdom of the group. Decision making is key to overcome challenges and obstacles and success is a result of sound decision making. Research shows that collective decisions are better than individuals' decisions, one ingredient for success in a higher performance team is effective decision making.
The collective decision-making process is an inclusive process that engages everyone in the team to offer up ideas and allows everyone to be heard. Industries today are incorporating modern techniques to empower decision-making strategies. For example, in the current environment, collection, creation, and interpretation of the vast amount of new data have empowered industries to make effective decisions. However, the real estate industry has been slow to incorporate new techniques and methods of decision making. In this blog, we are going to walk through three best practices for decision making especially for real estate teams using CRE (Corporate Real Estate) analytics.
1. Starting with strategy
Many companies start by exploring the huge amount of data from all sources, this approach leads to unnecessary analysis or limiting the productivity of analysis. It is always beneficial to start with analyzing questions that are more likely to drive benefits and have a positive impact. By prioritizing the analysis of critical and unanswered questions first and then developing a data-driven analysis to support it, companies can develop meaningful solutions. Starting with this approach provides real estate teams with better knowledge of their customers and brings clarity to their objectives.
2. Optimum use of data
The use of advanced technologies in business practices has led to a significant increase in the data available to real estate teams. Teams can track various activities, they can collect data from a variety of business aspects such as communications, researches, operations, products, and more. Gathering these data is important for a real estate team so that they can apply data analytics to the full range of their business practices. The integrated data collection and analysis enable a real estate team to enhance its strategy, reevaluate its facilities, and quickly shift focus on the trends it identifies.
3. Be aware of confirmation bias
Many companies fall victim to confirmation bias i.e invalid conclusion while evaluating complex sets of data, it happens in the absence of an adequate amount of data for analysis. Teams that embrace a culture of performing meticulous analytics, helps businesses to overcome this challenge. In data analysis, it is important to separate noisy signals from those data sources that matter. In large data sets, the risk for companies to fall victim to confirmation bias is high. In order to ensure a valid conclusion, it is critical to be attentive to data management best practices.
Data analytics can help with every factor you possibly consider when making real estate decisions such as market trends, transportation channels, real estate costs, available labor, and more. Corporate real estate (CRE) is rapidly becoming a data-driven industry, companies are embracing the potential of data analytics to ensure beneficial decisions. Making decisions from acquiring, maintaining, and exiting properties to cost of buy or lease, and the number of employees a property can house, all depends on data analytics. There is a rapid proliferation of data that real estate professionals can use. According to a statistic by IBM in 2017, more than 90% of existing data was produced in the last two years and it is increasing rapidly. To collect data and obtain actionable information from these data, companies are using business intelligence technologies. For example, tools like Colliers360 used to leverage the process. There are many CRE analytics software revolutionizing the decision-making process across the real estate industry.
Piyush Jain is the founder and CEO of Simpalm, a software development company in Maryland. Piyush founded Simpalm in 2009 and has grown it to be a leading mobile and web development company in the DMV area. With a Ph.D. from Johns Hopkins and a strong background in technology and entrepreneurship, he understands how to solve problems using technology. Under his leadership, Simpalm has delivered 300+ mobile apps and web solutions to clients in startups, enterprises and the federal sector.