Reengineering a Property Management P&L to Drive Performance
The property management arm of a real estate company couldn’t isolate profitability or efficiency. Poor P&L structure obscured true performance, leaving management unable to make informed decisions.
Background
The property management group was a cost center within a broader real estate portfolio. Leadership couldn’t:
- Benchmark performance by property or client
- Identify operational inefficiencies
- Track staff productivity
SMG’s Approach
1. Assessment & Stakeholder Alignment
- Interviewed key staff to understand data flow and bottlenecks
- Audited P&L structure and reporting logic
2. P&L Restructure
- Built a new P&L structure reflecting controllable costs and true margins
- Created visibility into contract-level performance
3. Operational Finance Layer
- Introduced utilization and margin KPIs
- Built dashboards and integrated into recurring reporting cycles
Outcomes
- Management could see profitability by contract and client
- Enabled headcount reallocation and improved team productivity
- Empowered executives to identify underperforming properties and take action
SMG turned a confusing cost center into a performance engine.