2010 ifma dc sustainability - 2 shades of green

Two Shades of Green:Reducing Environmental Impacts and Operating Costs

Marty Chobot

VP of Product Management, FM:Systems

A little about me/FM:Systems

• VP of product management for FM:Systems

• FM:Systems has 26 years of FM software experience

• FM:Systems launching new Sustainability Module

Enough about me…

• What’s your primary work?(FM, design/engineering, other)

• What’s your “attitude” toward green building concepts…(master plan, selected green concepts, no green strategies)

Learning Goals

1. Gain an overview of tools and methods for forecasting and measuring sustainability efforts

2. Understand how technology can help facility professionals balance financial and environmental impacts

3. Learn how technology can improve communication and collaboration for sustainability efforts

Agenda

• IFMA Study and FMS Customer Research: Key Challenges to Getting Green

• Managing Environmental Impacts and Building Performance

• Forecasting Financial and Environmental Impacts

• Influencing Organizational Behavior

IFMA Research and FMS Customer Research

Challenge 1: We’re acting tactically, not strategically

17%

83%

Master PlanNo Master Plan

IFMA SURVEY QUESTION: Which one of the following statements best describes your facility’s/organization’s attitude toward green building concepts?

We’re too busy chasing the pigs to build the fence

Challenge 2: It’s difficult to forecast sustainability impacts

“Cost Paradox”

• Why be green? “Save Money”– In customer calls, consistent

belief that green means cost savings as well as environmental savings

• Why not? “It’s too expensive!”– 73% selected “Financial

Challenges” as a challenge to sustainability initiatives

Challenge 3: How do we change organizational behavior?

• Influencing management policy (top down)

• Influencing corporate culture (bottom up)

• Educating and retraining the FM team

Using information to address these challenges

• Get strategic about sustainability– Strategically manage building performance

• Forecast the value of going green– Learn how to build a business case– Use lifecycle analysis and capital planning

tools

• Communicate!– Use your technology to communicate with

employees

Managing Environmental Impacts and Building Performance

Strategically Managing Building Performance

• First step: Identify areas of concern and areas of impact – You may care about all

environment impacts– You only have resources

(human, financial) to manage several

• Energy, water, emissions, waste, etc.

Building Performance : Focus on quality not quantity

• “The fewest number of highest quality metrics possible”

• Too much becomes noise and is difficult to manage

• Always better to under promise and over deliver!

Building Performance: Define Approach for Metrics

• Baselines– Starting point for a given metric

• Targets– Goal value for a given metric

• Thresholds– Internal values to identify good or poor

performance

• Cross-tabs– Comparing two or more similar items

• Benchmarks– External data used as basis for comparison

Example: Monthly Resource Use

J F M A M J J A S O N D0

0.5

1

1.5

2

2.5

Historical Average 2010 Forecast Year to Date

BASELINE Multi-year average

TARGETSum of relatedProject forecasts

Building Performance: Looking at data over time

• Current state– What is the situation on the ground

today?

• Snapshots– What has happened in the past?

• Trends– Are there any relationships between the

snapshots?– Can/should we continuously gather data?

• Forecasts– What will happen based on assumptions?

Forecasting Environmental Impacts and Building Performance

Challenge 2: It’s difficult to forecast sustainability impacts

“Cost Paradox”

• Why be green? “Save Money”– In customer calls, consistent

belief that green means cost savings as well as environmental savings

• Why not? “It’s too expensive!”– 73% selected “Financial

Challenges” as a challenge to sustainability initiatives

Forecasting: Use Capital Planning and Budgeting Methods

• Look at cash flows and environmental impacts over time not just initial outlay

• Use capital budgeting tools:– NPV– IRR– ROI

• Evaluate multiple scenarios for a given project

• Prioritize multiple projects

Forecasting: Basics of Capital Budgeting

• Use common assumptions – term of the evaluation, discount rate (cost of capital)

• Identify initial outlay (IO)

• Identify components of cost and benfits models– Costs: Initial Outlay, Ongoing

Labor, Replacement Parts– Benefits: Energy Savings, Tax

Incentives, Etc.

Forecasting: Scenario Analysis Example

Forecasting: Scenario Comparison Example

Forecasting: Don’t get caught fortune telling…New York Penal Law Section

165.35 – Fortune Telling§ 165.35 Fortune telling. A person is

guilty of fortune telling when, he claims or pretends to tell fortunes, or holds himself out as being able, by claimed or pretended use of occult powers, to answer questions or give advice on personal matters...

Fortune telling is a class B misdemeanor.

Forecasting: Communicate Assumptions

• Recognize that your forecasts will not be 100% accurate

• Forecasts are models - not always precisely true but approximate– Make your degree of confidence

in the data explicit– Make any assumptions explicit– Part of the consensus building

during the planning process

“The perfect is the enemy of the good”Voltaire

Influencing Organizational Behavior

Challenge 3: How do we change organizational behavior?

• Influencing management policy (top down)

• Influencing corporate culture (bottom up)

• Educating and retraining the FM team

Influencing Behavior: Management

• Speak dollars

• Executive Management– “I need to better manage my

enterprise energy costs.” – Every $100K lost to energy

inefficiency is equivalent to losing $910K in new revenues

• “What if we tie it to their budgets?” – Link space chargeback rates to

environmental impacts

Influencing Behavior: Creating a Sustainable Organizational Culture

Encourage Personal Accountability“I want to show the building’s current performance in terms of energy and emissions. It’s the occupant’s personal carbon footprint.”

• Make it fun!“What if we create a competition between buildings to see who could be most energy efficient?”

Influencing Behavior: Educating and Retraining the FM Team

• Make sustainability processes consistent“I want to know that assessment done in Buffalo is consistent with an assessment done in Vegas.”

• Automate reporting

• Use notifications to keep everyone on the same page

Influencing Behavior: Using Technology

• Create a Portal

• Reports & Dashboards– Show Building Performance– Promote Building Certifications– Promote Projects/Initiatives

• Notifications– Email alerts about sustainability

efforts and achievements

Questions to Take Away

• What environmental impacts do we care about?

• Are we measuring them consistently over time?

• Are we presenting solid business cases for sustainability projects?

• How can we engage the entire organization in our efforts?

Thank you!!

Your questions?

Feel free to follow up:

Marty Chobot

mchobot@fmsystems.com