Increased accuracy in the budget and better control with system support from Hypergene

Kungsleden is one of Sweden’s largest property companies, with over 220 properties within the office and industry sectors. The property portfolio is spread out throughout the country, although the majority of the properties are located in the Stockholm region, Gothenburg, Malmö and Västerås. Kungsleden has been a publicly listed company since 1999, and its annual turnover is currently in the region of SEK 2.3 billion.

Challenge:

  • Inadequate overview, lack of control

Solution:

  • Hypergene’s solution for property companies, containing Budgeting & Forecasting, BI and Strategic Management

Results:

  • Increased accuracy in the budget
  • Better control
  • Possibilities to perform more advanced analyses

Challenge

Before Kungsleden decided (in 2015) to implement Hypergene, they already had a decision support system, but the existing system had become outdated and was no longer able to meet the company’s needs.

“The previous system was old, complicated and not particularly user-friendly”, says Maria Strandberg, Head of Group Controlling at Kungsleden.

Because the company lacked a cohesive and well-functioning system, it was not possible to achieve an adequate overview and control of the operations. Hypergene is primarily used by two operational units at Kungsleden, namely property management and the accounting function. For the property managers, the lack of a well-functioning system meant that the budget could only be prepared at an overall level, and not to the level of detail they desired.

Overall we are extremely pleased with Hypergene’s solution. It increases the level of quality in our budget processes and creates greater participation from our staff”.
Maria Strandberg, Head of Group Controlling.

Solution

The solution chosen by Kungsleden contains functionality for Budgeting & Forecasting, BI and Strategic Management. It is a solution that a number of Hypergene’s other property sector customers use, which was also a major factor in Kungsleden’s decision to choose Hypergene.

“We looked at what Hypergene had done for other property companies, and we felt certain that they would be able to deliver what we needed. We are extremely pleased with our solution”, says Maria Strandberg.

Each property manager now creates his or her own budget in Hypergene. According to Maria Strandberg, flexibility, user-friendliness and the possibility to describe and analyse a property’s revenues, costs and net operating profit at a detailed level are some of the major benefits associated with Hypergene’s solution. The property managers also use the system to produce business plans, both short-term and long-term. The business plans are created in Hypergene’s Strategic Management module, where strategic plans can easily be broken down into concrete goals and activities.

Another important function for Kungsleden is the management of projects in Hypergene. A property manager can initiate a project with associated budget and description. If everything looks good, the project is forwarded for approval and attestation, and if it turns out that something needs to be changed or if more information is required, the project documentation is sent back to the property manager for further processing. It is only once the project has been approved that a project number is created in Hypergene, at which stage the project is also assigned a final cost forecast. That forecast then gives rise to the budget that applies for the years that have been specified as the project period.

Outcome

Around 80 employees at Kungsleden currently work in Hypergene. According to Maria Strandberg, Hypergene has provided the company with a system that meets their needs very well.

“As a person who works in Hypergene on a daily basis, it is easy for me to see the many benefits associated with the solution. The system is extremely flexible, user-friendly and intuitive. Furthermore, we have received very good service and a good response by being able to use Hypergene’s consultants as sounding boards for various ideas, which is extremely valuable because it means that we can develop the system together in the best possible way.

For the property management organisation, Hypergene has facilitated a new level of overview and control, which ultimately results in greater precision. That in turn creates enhanced quality in the figures we are producing and using, and our monitoring and analysis processes also become better as a result.

"Overall we are extremely pleased with Hypergene’s solution. It increases the level of quality in our budget processes and creates greater participation from our staff”, concludes Maria Strandberg.