I do think that those of us in commercial real estate have to have our eye on the ball all the time and should always try to do things in the most effective way possible, both for our own sanity and for the good of our clients and companies. But I have to tell you, sometimes it just doesn't seem that way. I don't want to be negative about this, but it does seem that for some reason or another our industry tends to lag. I hope it's not because of our average age! It seems that more often than not I meet with people who believe it's okay to quit sharpening their knives and keep doing things the same old way they've always done them. I'm the first to admit that sometimes the tried-and-true method works, but when people are doing the tried-and-true simply because it worked in the past and they haven't looked at how it might work better in the future, I get concerned.

I've said it before and I'll say it again...it's important to stay on top of what is available for us to be the best we can be all the time. It's no secret that those of us who participate in and have had some success in the commercial real estate industry have a tendency to continue doing things the way we have always done them for the last 20+ years. We sometimes get comfortable in the fact that the knowledge we hold in our heads is enough to carry us, when actually we're doing ourselves, our company and certainly our clients a disservice when we're not constantly looking at ways to improve.

Maybe it's because we don't believe that productivity can really pay off. Maybe it's because we've tried things before that just haven't worked and we're waiting for things to be perfect. It doesn't really matter what we're waiting for, waiting is really not an option. I think the best thing to do is to continually look around us at others who seem to embrace change and take note.

Productivity can pay high dividends. For example, we might want to pay attention to all of those brown trucks full of cardboard boxes when it comes to technology. UPS is using technology in ways that may soon be common for us all and they're doing it well. Those UPS trucks look the same as they did more than 20 years ago. But look a little deeper and you'll see that things have changed a lot. For instance, that little electronic box you sign your name on when the delivery person gives you a package used to be a piece of paper. Now, it's a computer that tells them everything they need to know. That old fashioned brown truck is full of sensors that record to the second when the delivery person opens or closes the door behind them, buckles their seatbelts and starts the engine. And there's much, much more. So why does UPS do that? Because metrics are everything; small amounts of time turn into large amounts of money. The only proof you need to know is what UPS will tell you...that one minute per driver per day over the course of the year in lost production adds up to $14.5 million. That's why they figured out that opening a door with the key was slowing the drivers down so they were given a pushbutton key fob that attaches to their belt loop.  Small things for sure show a big impact.

I can hear you saying that you're only one person or you're in a smaller firm, you're part of a smaller team so the small incremental savings don't really matter; to that I say hogwash! I'm not saying that we have to track everything down to the most minuscule detail and drive ourselves crazy. I'm saying look at the bigger picture and find out where costs and  time can be saved, where people might not even notice it or better yet it makes them happier. That's where the real savings come from. Other upfront costs...frustrations due to getting something new put in place? Of course there are, that's part of the process. Remember the old saying, "you have to break some eggs."

So just picture how much better things are at UPS now, not just for the customer, but for the folks who drive those trucks. Computers now figure out the best way to load the truck in the morning so that they can most effectively deliver the packages all day long. Back in the day, let's say 20 years ago, UPS estimated that a typical day for drivers was about 90 deliveries. Today it's 120 deliveries; who couldn't benefit from increased production of over 33%? 

And here's the kicker about UPS in the long run; as all of this technology has been put in place, drivers have seen their pay go up significantly. UPS drivers today make about twice what they did in the mid-1990's when you add up their wages, health care and pensions.  And yes, for all the skeptics out there, you can say that it's because of their union and not because of technology, but I beg to differ.  And while some drivers will tell you that it does feel like big brother, others tell you that it's like the big brother we all wish we had; one that is looking out for us, taking care of us and making certain that no one bullies us.  

The problem with measuring a lot of metrics is that sometimes it makes people feel like the metrics are more important than the job - they aren't and never will be. But it's an easy excuse to point to if you don't want to measure or are afraid to see how doing so can work for you. But that's for a whole different discussion, more to do with employee empowerment and getting the little things out of the way so you can apply the best knowledge and experience to  the big things. Just think of it as if it was your job to keep people as productive as possible, so they could be the highest paid in the industry. And think how cool it would be if it was your job to be the most productive possible, because you are the only person you manage! Please don't be outdone by a brown mail truck.
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