Increased budget accuracy 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 throughout the country, although the majority are located in the Stockholm region, Gothenburg, Malmö and Västerås. Kungsleden has been publicly listed since 1999, and its annual turnover is currently in the region of SEK 2.3 billion.

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.

Challenge

Before Kungsleden decided to implement Hypergene, it already had a decision support system, but the existing system had become outdated and was no longer able to meet the company’s needs.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: property management and accounting.

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 desired level of detail.

Summary:

  • Inadequate overview and lack of control.

Solution

The solution chosen by Kungsleden includes functionality for budgeting & forecasting, BI and strategic management. Similar solutions are used by several of Hypergene’s other property sector customers, which was also a significant 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,” Strandberg says.

Each property manager now creates his or her own budget in Hypergene. According to Strandberg, major benefits of the system include flexibility, user-friendliness and the possibility to describe and analyse a property’s revenues, costs and net operating profit at a detailed level.

The property managers also use the system to produce both short-term and long-term business plans. These are created in Hypergene’s Strategic Management module, where strategic plans can be easily 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 more information is required, the project documentation is sent back to the property manager for further processing.

Once the project has been approved, a project number is created in Hypergene, at which point the project is also assigned a final cost forecast. This forecast forms the basis for the project period budget.

Summary:

Results

Around 80 employees at Kungsleden currently work with Hypergene. According to Maria Strandberg, the Hypergene system meets their needs very well.

“I work with the Hypergene system on a daily basis, so it's easy for me to see the many benefits it delivers. 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. This is extremely valuable as it means 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. This 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.”.

Summary:

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