How do you balance financial and non-financial objectives?

1 Understand your objectives

The first step to balance your financial and non-financial objectives is to understand what they are and how they relate to each other. Financial objectives are usually quantifiable and measurable, such as reducing costs, increasing revenues, or optimizing returns. Non-financial objectives are more qualitative and subjective, such as enhancing employee satisfaction, improving customer experience, or supporting social causes. Both types of objectives are important for your long-term success, but they may sometimes conflict or compete with each other. Therefore, you need to prioritize them and weigh the trade-offs involved.

2 Communicate your values

The second step to balance your financial and non-financial objectives is to communicate your values and vision to your stakeholders. Stakeholders are the people or groups that have an interest or influence in your real estate activities, such as your employees, customers, suppliers, investors, regulators, or communities. You need to engage with them and explain how your real estate strategy aligns with your corporate mission, culture, and ethics. You also need to listen to their feedback and expectations, and address any concerns or issues they may have. By communicating your values, you can build trust, loyalty, and collaboration with your stakeholders.

4 Adapt to changes

The fourth step to balance your financial and non-financial objectives is to adapt to changes and seize opportunities. The real estate market and the business environment are constantly evolving and presenting new challenges and opportunities for CRE professionals. You need to be flexible and agile, and respond to the changing needs and preferences of your stakeholders. You also need to be innovative and proactive, and explore new ways of creating value and enhancing your competitive advantage. By adapting to changes, you can optimize your financial and non-financial outcomes and ensure your long-term viability.

5 Learn from best practices

The fifth step to balance your financial and non-financial objectives is to learn from best practices and examples of other CRE professionals. You can benefit from the knowledge and experience of others who have successfully achieved or maintained a balance between their financial and non-financial objectives. You can also seek guidance and advice from experts, mentors, or peers who can help you overcome your challenges and improve your skills. By learning from best practices, you can gain insights, inspiration, and confidence for your own real estate strategy.

6 Balance is not static

The sixth and final step to balance your financial and non-financial objectives is to remember that balance is not static, but dynamic and relative. There is no one-size-fits-all formula or solution for achieving or maintaining a balance, as it depends on your specific context, goals, and circumstances. You need to constantly review and adjust your balance, and be prepared to make trade-offs and compromises when necessary. You also need to recognize that balance is not an end, but a means to an end, which is creating value for your organization and society.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?