IFMA UTILITY COUNCIL

1. Using Benchmarking Effectively IFMA UTILITY COUNCIL Keith McClanahan Facility Issues (928) 213-9767 keithmcc@facilityissues.com

2. Components of Successful Benchmarking Explain the Benchmarking Cycle… • Emphasize that this is a Continuous Improvement Process • An Annual Cycle • If this is your First Year explain that it will be a Learning Process • Have Examples handy for each phase • Survey • Report • A Best Practice

3. Utility Council Process: Define Parameters & Reach Consensus Choose Partners Repeat Track Gather Data Implement Ideas Publish Comparisons Focus on Those That Appear Better

4. Communication Strategy for Different Groups • FM Organization – Key charts in a highly visible location • Customers / Users – A short written summary report including where we stand and what we are doing to improve • Senior Management – A Presentation of Key Findings and Action Plans

5. Communication Strategy - For the FM Organization… • Identifies Under / Over Performance • Basis for Goal Setting • Creates an Acceptance for Change • Identifies Improved Work Processes • Improved Understanding of Organization • Better Prepared for Outsourcers • Auditors Focus on Other Departments

6. Communication Strategy - For Customers and Users… • Comparing Our Costs With Peers • Comparing Our User Satisfaction With Peers • Expected Benefits – keep it short… • Identifies Under / Over Performance • Identifies Improved Work Processes • Information on How We Are Doing Will Be Distributed

7. Communication Strategy - For Senior Management… • Comparing Our Costs / User Satisfaction With Peers (List the Peers) • If this is Your First Time • Don’t Promise Too Much • Emphasize this will be a Learning Process • Don’t Over-React to First Year Data • Identify Where Collaboration is Needed for Non FM Data (i.e. Security, Fixed Costs)

8. Components of Successful Benchmarking • Analysis of the Preliminary Report(s) • Review Your Site for Data Submittal Accuracy • Question Extremely High or Low Normalized Costs • Understand Why You May Not Appear on A Chart • Understand Which Charts are Critical for Your Organization

9. Use the Key Charts • Space utilization: GSF/person • Variable Costs • Electrical usage per GSF • Maintenance cost per GSF • Custodial cost per area cleaned • Total operating cost per GSF • Fixed Costs • Depreciation or • Depreciation + Insurance + Taxes + Rent

10. Distribution of Operating Costs

11. 2013 UC – GSF/Person 2012: Median = 367 GSF/person

12. 2013 UC– Electrical Usage / GSF 2012: Median = 26.00 kwh GSF

13. 2013 UC– Utility Cost /GSF 2012: Median = $2.07/GSF

14. 2013 UC – Maintenance $/GSF 2012: Median = $1.84/GSF

15. 2013 UC – Custodial $$ / Area Cleaned 2012: Median = $1.04/GSF

16. 2013 UC – Maint + Janitorial Costs/ GSF

17. 2013 UC – TOTAL OPERATING COSTS/ GSF

18. Components of Successful Benchmarking For the Final Report… • Score Your Site by Category i.e Utilities, Maintenance, Custodial… • Needs Work • OK • Doing Great • Prioritize Action Items Based On Your Business Situation

19. Occupancy Surveys... • Respond to all employees who provide a name or phone number • Let them know if you are or are not implementing their request / suggestion • Email or phone calls are fine

20. Benchmarking – Why??? • The Benefits of Benchmarking • Know Where You Stand • Peers You Can Network With… • Similar Facilities Philosophy • Understand Their Cost Structure • Best Practices Implemented… • Improved Service • Reduced Costs • Both

21. More Information…. Website: http://www.FacilityIssues.com Thank You