Keith McClanahan Facility Issues (928) Using Benchmarking Effectively IFMA UTILITY COUNCIL

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

Utility Council Process: 8. Repeat 1. Define Parameters & Reach Consensus 2. Choose Partners 3. Gather Data 5. Focus on Those That Appear Better 4. Publish Comparisons 6. Implement Ideas 7. Track

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

 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 Communication Strategy - For the FM Organization…

 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 Customers and Users…

 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) Communication Strategy - For Senior Management…

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

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

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

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

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

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

2013 UC – Maint + Janitorial Costs/ GSF

2013 UC – TOTAL OPERATING COSTS/ GSF

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   or phone calls are fine

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

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