Dirty data – data that is inaccurate, miscategorized, out-of-date, or conflicting – is exacerbated by inadequate software, siloed processes, and sloppy data governance. That’s the what and why.
Now, let’s talk about the how – how dirty data disrupts your business processes. Here are three common ways:
Dirty data increases risk
Dirty data increases both operational and reputational risk. The former occurs when critical data is accessible to one key person within a given organization. Should that employee leave or be rendered unavailable for any period, you have effectively created a data hostage situation, leaving your assets in the lurch.
The latter would certainly be a by-product of the above scenario – but reputational risk also rises when reporting is inadequate or inaccurate. If your numbers can’t be trusted, who will entrust you with their investments? That leads us to the second disruption…
Dirty data turns off investors
If you present a report to your investors stating that their return will be X, when the actual return is Y, there’s going to be a reckoning. There will probably be some digging into your actual numbers and your processes. And, depending on what they find, there could be a loss of confidence in their estimation of your firm.
That loss of confidence trickles down from investors to management, and from management to employees.
Dirty data wastes money
Companies try to fix faulty reporting retroactively by throwing people and time at the problem. Like crime scene investigators, employees are charged with retracing processes, tracking down the real numbers, and retroactively apply fixes to reconcile accounts.
The more assets you manage, the more headcount is required. The more headcount, the more expense. The bigger the headache, the more turnover. And so forth until you just wish there was a better solution.
There is a better solution: Pereview Software by Saxony Partners.
An all-your-data-in-one-place, commercial real estate asset software solution, Pereview is the only Life of the Asset™ platform on the market today. It integrates siloed systems and processes, allows for push-button reporting, creates a single source of truth, and establishes standard workflows and guidelines for asset and data management.
No commercial real estate management firm is immune to the risks from dirty data. So, let’s chat about how we can ensure that your data is clean, accessible, and secure.