Innovate or be Left Behind
In today’s ultra-competitive business climate, your company’s ability to innovate may be one of its key competitive advantages. Although commercial real estate (CRE) may not have the same universal appeal and sizzle as consumer electronics, innovation is just as important.
For innovation to flourish, a company’s culture and working environment needs to be structured so that innovation is strongly encouraged. Innovation ought to be a job requirement. All personnel evaluations should include an innovation component, and successfully implemented innovations rewarded.
Hiring the right people is critical. You want to employ people who are really able to understand your business and are able to see opportunities where others do not. Employees need to be encouraged to experiment with new ideas on how to do things better. CRE companies could easily adapt this principle by streamlining operations as a starting point.
Many CRE companies have performance incentive components. This works well in the short term to get costs cut and deals made, but is generally focused on short term objectives. Innovation elevates the entire company to the next level of competitiveness, in both the short and longer terms. The impact of innovation is far more effective than any round of belt tightening. Implementing innovation based incentives should be considered as important as any other performance incentive.
Application of Technology
Traditionally, companies have viewed the introduction of technology as a sure way of being perceived as innovative, but this is only part of the story. The real innovation behind the introduction of technology is how uniquely and creatively this technology is implemented.
When cutting edge CRE tools like financial modeling are implemented and adapted to suit your company’s requirements, business analysis shifts from being purely reactive to proactive and predictive.
Inch by Inch
The most successful companies understand that most innovation is incremental and evolutionary, rather than revolutionary. Small, constant changes are the keys to innovation success. Over time, the impact on the organization is cumulative. This has the effect of steadily moving ahead of those competitors that are less innovation focused.
Undoubtedly, every company, including CRE companies, can always do with better methods and solutions to meet their ever changing needs. Sticking with what has always worked well in the past does not guarantee any measure of future success.
Written By: Oren Rosen, Cougar Software