Operations
Build a Sustainable Edge with a Business Operating System ALIGN SUSTAINABILITY WITH YOUR OPERATING SYSTEM TO CREATE MEASURABLE RESULTS, REDUCE COSTS, AND HELP FUTURE-PROOF YOUR INVESTMENT PORTFOLIO.
iterative process ensures you’re always optimizing for the best results.
than helping the environment—you’re positioning your real estate business for long-term success. The benefits are clear: lower operating costs, happier tenants, and a stronger brand. But beyond the financial rewards, you’re playing a part in building a better future. You know that staying ahead in the real estate industry requires adaptability and innovation. By embracing sustainability as part of your business operating system, you’re not just keeping up with the times, you’re leading the charge. The question isn’t whether you can afford to prioritize sustainability; it’s whether you can afford not to. Take the leap today. Define your vision, rally your team, and let your operating system be the engine that drives sustainable success. The opportunities are endless, and the impact is immeasurable.
in place, you’d establish a process to evaluate vendors, calculate return on investment, and schedule installations across properties. You’d also track progress through metrics, ensuring you stay on schedule and within budget. EMPOWERS YOUR TEAM. No sustainability initiative succeeds without buy-in from your team. Your operating system ensures that everyone—from property managers to contractors—understands their role in achieving your green goals. It aligns your team around a shared vision and provides them with the tools and training they need to execute. Imagine a scenario where your property managers are tasked with reducing water usage. Your operating system would provide a framework for setting targets, monitoring consumption, and implementing solutions like low- flow fixtures or drought-resistant landscaping. With clear guidelines and accountability measures, your team feels empowered to drive real change. TRACKS AND ADAPTS. One of the most powerful aspects of an operating system is its emphasis on tracking results. Sustainability efforts can often feel nebulous without concrete data. Your operating system ensures you’re consistently measuring key performance indicators such as energy savings, water usage, and tenant satisfaction. This data validates your efforts and highlights areas for improvement. Suppose you implement solar panels across several properties but notice that energy savings are lower than expected. An operating system allows you to dive into the data, identify potential issues (e.g., improper placement, maintenance gaps), and adjust your approach. This
INTEGRATE SUSTAINABILITY INTO YOUR BOS How do you begin incorporating sustainability into your operating system? AUDIT YOUR CURRENT PRACTICES. Start by assessing your portfolio to identify areas for improvement. Are your buildings energy-efficient? How much waste do your operations generate? Use this baseline data to inform your goals. SET SMART GOALS. Define specific, measurable, achievable, relevant, and time- bound goals for sustainability. For example, “Reduce electricity consumption by 20% across all properties within three years.” ALIGN YOUR TEAM. Communicate your sustainability vision to your team and ensure they understand their roles in achieving it. Provide training or resources as needed. STANDARDIZE PROCESSES. Use your operating system to create repeatable processes for initiatives such as energy audits, waste reduction programs, or green certifications. MEASURE AND ADJUST. Regularly review your KPIs to track progress. Use this data to refine your strategies and celebrate milestones with your team. ENGAGE STAKEHOLDERS. Share your sustainability efforts with tenants,
JIM TANNEHILL
A s a real estate investor, you’ve likely noticed the growing buzz around sustainability. From eco-conscious tenants to government incentives for green development, the push for sustainable practices isn’t just a trend—it’s a transformation. The real question isn’t whether to embrace sustainability but how to do it in a way
of adopting and managing sustainable practices across your portfolio. CLARIFIES VISION AND GOALS. Your operating system begins with defining your company’s vision and goals. When sustainability becomes a priority, it’s critical to articulate what that looks like for your business. Are you aiming to reduce your properties’ carbon footprint by 30% over the next five years? Do you want all new developments to achieve LEED certification? An operating system ensures your sustainability goals are clear, measurable, and integrated into your broader business objectives. SYSTEMATIZES PROCESSES. Sustainability isn’t a one-time initiative; it’s an ongoing process. An operating system helps you systematize efforts such as energy audits, waste-reduction programs, and sourcing sustainable materials. Instead of treating these as ad hoc projects, your operating system ensures they’re part of your daily operations. This consistency drives better results and minimizes inefficiencies and redundancies. Let’s say you decide to retrofit your properties with energy-efficient lighting. With an operating system
friendly practices. Many are willing to pay a premium for features like solar panels, smart thermostats, and sustainable building materials. Additionally, cities and states are increasingly offering incentives such as tax breaks or grants for green development projects. By integrating sustainability into your operating system, you’re staying ahead of regulations and capitalizing on opportunities that boost your returns. Beyond financial gains, sustainability is a powerful branding tool. Real estate is a competitive industry, and standing out can be challenging. When you adopt green practices and showcase your commitment to sustainability, you position yourself as a forward-thinking leader. This doesn’t just attract tenants; it also draws investors and partners who align with your values. HOW A BOS FACILITATES SUSTAINABILITY Implementing sustainability can feel overwhelming, especially when you’re managing multiple properties, tenants, and projects. This is where your operating system becomes invaluable. It serves as your North Star, guiding you through the complexities
that aligns with your bottom line. That’s where a business operating system (BOS) comes into play.
JIM TANNEHILL
An operating system isn’t just a set of tools or a checklist; it’s a framework for how you run your business. It helps you clarify priorities, streamline processes, and focus on what truly matters. When sustainability becomes part of this framework, it moves from being an afterthought to a core pillar of your strategy, giving you a competitive edge in an ever-evolving market. WHY SUSTAINABILITY SHOULD BE YOUR FOCUS Sustainability isn’t just a feel-good initiative; it’s a strategic move that enhances profitability and future- proofs your investments. Tenants today, particularly millennials and Gen Zers, value energy-efficient properties and eco-
Jim Tannehill has been an entrepreneur for more than 10 years. He is Empire Certified, Trainual Certified and an expert in LucidCharts. A business coach, Tannehill has consulted with more than 100 companies in many different industries and verticals. As chief operating officer of Empire Operating Systems, Tannehill oversees the complete operating picture for the company and ensures that all Empire clients are moving forward in the Five Phases of Business.
investors, and the community. Transparency builds trust and enhances your reputation.
A WIN FOR YOUR BUSINESS AND THE PLANET When you integrate sustainability into your operating system, you’re doing more
40 | think realty magazine :: january - february 2025
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