Define the baseline before approving work

Record the current annual rent or cost, reporting date, source and expected change. Include investment, implementation costs and dependencies. Save that baseline when the proposal is approved so a later import cannot quietly rewrite the original case.

Use one value convention across the portfolio. Annual run-rate NOI change is useful for comparing recurring outcomes, while one-off gains and in-period cash movement need their own labels.

Use stages that mean something

Identified means a potential change has been calculated from documented assumptions. Approved means a person accepted an action with an owner and a deadline. In execution means the approved task has started. Captured means the outcome is evidenced and recorded against the approved baseline.

An opportunity can be worth reviewing without a credible monetary estimate. Treat an expiring guarantee as a risk action and keep its financial value unquantified until reliable evidence supports one.

Resolve overlaps and dependencies

Two modules may identify the same economic effect. Lease indexation and a market-rent renewal are a common example. A refurbishment's rent uplift can also overlap a leasing strategy's uplift. Link the initiatives and define one combined scenario before aggregating value.

Keep gross benefits, recurring net benefits and implementation costs separate. A procurement saving that assumes a changed service scope should not be described as a like-for-like saving.

Require evidence for captured outcomes

For a lease, attach the executed amendment and specify the effective date. For a supplier, record the approved service scope and new contract. Add a measurement period and evidence such as invoices or collection records where appropriate.

Separate the contracted annual run rate from observed cash. An annual increase starting halfway through a year does not produce a full year's cash improvement immediately.

Make review a management habit

Review the largest open opportunities and overdue actions each month. Ask why estimates changed, whether approvals still apply and which outcomes are now supported by evidence. Keep dismissed proposals so the same idea is not repeatedly rediscovered without context.

A concise report should show the baseline, expected outcome, recorded outcome and explanation of differences. The objective is a trustworthy decision history, rather than the largest possible headline number.

Illustrative calculation; not a performance claim

Worked example: a supplier contract

Synthetic baseline: annual cleaning cost EUR 120,000. A renewed contract for the same reviewed scope costs EUR 108,000, giving a EUR 12,000 annual run-rate saving. If effective for six months, the simple in-period cost reduction is EUR 6,000 before implementation costs. Record the two periods separately.

Your action checklist

  • Every approval preserves its baseline.
  • Gross and net effects use separate labels.
  • Overlapping actions share one economic scenario.
  • Captured outcomes have evidence and effective dates.
  • Run-rate improvement and in-period cash stay distinct.

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