October 2017 | Chicago, IL - The annual NAREIM 20/20 Investor Summit took place in Chicago in May, focusing on two important messages: The New Operating Platform & The New Era of Risk. As an active contributor to NAREIM, RealFoundations Enterprise Managing Consultant, John D’Angelo, was cited in the output report, providing key points of view on how real estate investors and investment managers can begin ‘preparing for the unknown’.
In the report, Mr. D’Angelo notes the importance of understanding the functional operating model within a company, simply described as ‘the work it takes to be in business’ (where do the numbers on the reports originate? how are these numbers calculated? who performs these tasks? etc.). To get to the point of understanding, he recommends all companies review at least once a year the work that they're doing, what has changed and what is currently changing in the business. Making sense of ‘the work’ allows firms to identify areas for improvement, streamline processes, identify key performance metrics and apply governance rules to increase efficiency.
According to Mr. D’Angelo, defining the Information Model is another crucial step in mitigating the risks of data inaccuracies that stem from manual calculations and lack of defined metrics. “A decade ago, you did everything yourself, but now there are multiple parties collecting, analyzing and acting upon data, we can no longer improvise how this is managed”, states Mr. D’Angelo. “In the next few years, we are not headed for business as usual, capital is behaving differently, data is changing things, and risk is only greater.”
Getting a handle on the work that is performed and the data that is used to make important decisions is necessary in today’s world of real estate investing. As a general trend, Investment Managers and their clients are becoming much more aware of the value of improving their capture of data and putting that data to work to understand risks, opportunities, and ultimately drive performance.
Read the full article on NAREIM's website here.
About RealFoundations RealFoundations is a professional services firm focused on the real estate industry. With offices on four continents, 400+ client-serving professionals and off-shore delivery capabilities in China and India, RealFoundations provides Management Consulting, Managed Services and Energy Solutions to developers, owners/operators, service providers, institutional investors and corporate occupiers. From the building itself to the way it is used, operated and financed, no firm understands the inner workings of the entire real estate ecosystem as well as RealFoundations. We Make Real Estate Run Better.