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

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

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

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

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 or Explain why our contract is OK Auditors will usually go elsewhere

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

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)

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

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

Distribution of Operating Costs

GSF/Person

Maintenance + Janitorial: $/GSF

Janitorial Staffing

Utility Cost/ GSF

TOTAL OPERATING COSTS/ GSF 15

Trends 16

Best Practices 17

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

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 Mary Ann will be covering the details of this process.

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

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