Secrets of industry’s top performers

Cheaper finance, faster reporting, smarter IT infrastructure and leaner operations are just some of the characteristics that single out the real estate industry’s top performers, according to a new PwC report.

PwC’s Real Estate Finance Function Effectiveness Benchmarking Insights Report draws on global data from more than 400 companies across 100 countries, and looks at how companies can create a finance function that is fit-for- purpose, cost effective and acts as a strategic business partner.

“We are seeing a big differential between top and average performers – from both a cost and value perspective,” says the report’s author, PwC’s assurance real estate leader, James Dunning (pictured).

Dunning says four factors set the top performers apart from their competition: cost-efficiency; faster-turnaround; leaner operations and sharper insights.

A combination of automation, more efficient use of resources, and shared services or outsourcing means that the cost of finance is lower in top quartile finance functions.

Top performers’ budgets are delivered an average of five days faster, and expensive and unwieldy IT infrastructure is avoided in favour of more flexible and adaptable platforms.

“Top performers run at 73 per cent lower cost and have much stronger IT infrastructure and compliance frameworks than average performers,” Dunning explains.

The report finds that top performers also look beyond systems and processes to foster better understanding of user needs to reduce waste, repetition and errors.

Finally, top performers direct their finance professionals to spend more time on analysis rather than simply gathering data.

So, how does a company turn around its fortunes to become best in class?

Dunning says there is no “silver bullet”. Instead, a range of areas can yield results – from investment in technology and automating standard processes, to outsourcing, offshoring and actively managing top talent.

Download PwC’s Real Estate Finance Function Effectiveness Benchmarking Insights Report to find out more.