Identifying key metrics is crucial for effective compliance management in Commercial Real Estate (CRE). By focusing on the Regulatory Audit Pass Rate, we can determine the efficacy of our compliance efforts. Achieving benchmarks like an 85-95% audit pass rate ensures adherence to regulations. For instance, regular internal audits and engaging external consultants can play pivotal roles in maintaining high pass rates.
Compliance Training Completion Rate is equally important. Ensuring that 90% or more employees complete their training on time helps in fostering a knowledgeable workforce. Utilizing engaging training materials and providing flexible schedules aid in achieving this target, ensuring the team is always prepared for compliance challenges.
Incident Response Time, targeted to be within 24 hours, emphasizes the necessity of fast reactions to compliance issues, thereby preventing minor problems from escalating. Through clear protocols and drills, your response time can improve significantly.
Reducing the Number of Compliance Violations by maintaining this below the industry average is vital for operational integrity. Thus, enhancing monitoring tools and increasing compliance review frequencies are key strategies.
Lastly, ensuring a high Policy Update Implementation Rate of 95% or above shows that the organization adapts swiftly to regulatory changes. Coordination and clear communication of policy updates are fundamental in achieving this.
Top 5 metrics for Compliance in Commercial Real Estate
1. Regulatory Audit Pass Rate
Percentage of audits passed without any non-compliance findings
What good looks like for this metric: 85-95%
How to improve this metric:- Conduct regular internal audits
- Provide ongoing compliance training
- Implement a regulatory compliance management system
- Review and update compliance policies regularly
- Engage external consultants for unbiased evaluations
2. Compliance Training Completion Rate
Percentage of employees who complete compliance training on time
What good looks like for this metric: 90% or higher
How to improve this metric:- Utilise engaging training materials
- Set clear deadlines for training completion
- Offer flexible training schedules
- Provide incentives for timely completion
- Assess and improve training efficacy
3. Incident Response Time
Average time taken to respond to compliance-related incidents
What good looks like for this metric: Within 24 hours
How to improve this metric:- Establish clear incident response protocols
- Conduct incident response drills
- Use automated incident management tools
- Provide quick-access reporting channels
- Evaluate past incidents to improve speed
4. Number of Compliance Violations
Total number of compliance violations identified within a specific period
What good looks like for this metric: Minimise below industry average
How to improve this metric:- Enhance monitoring and reporting tools
- Increase frequency of compliance reviews
- Strengthen enforcement of compliance measures
- Educate employees on recognising violations
- Implement preventative measures
5. Policy Update Implementation Rate
Percentage of policy updates implemented within the target timeframe
What good looks like for this metric: 95% or higher
How to improve this metric:- Establish a structured policy review process
- Coordinate with internal departments for smooth implementation
- Communicate updates clearly to all stakeholders
- Allocate resources for rapid policy rollouts
- Monitor and track policy adoption
How to track Compliance in Commercial Real Estate metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
