Keith McClanahanKeith McClanahan

Facility Issues Facility Issues

(928) 213-9767(928) 213-9767

keithmcc@facilityissues.comkeithmcc@facilityissues.com

Using Benchmarking Effectively

IFMA UTILITY COUNCILIFMA UTILITY COUNCIL

Components of Successful BenchmarkingComponents of Successful Benchmarking

Explain the Benchmarking Cycle…

Emphasize that this is a Continuous Improvement Process

An Annual CycleIf this is your First Year explain that it

will be a Learning ProcessHave Examples handy for each

phaseSurveyReport A Best Practice

Utility Council Process:Utility Council Process:

8. Repeat

1. Define Parameters & Reach Consensus2. Choose

Partners3. Gather

Data

5. Focus on Those That Appear Better

4. Publish Comparisons

6. Implement Ideas

7. Track

Communication Strategy for Different Communication Strategy for Different GroupsGroups

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 - Communication Strategy - For the FM Organization…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 - Communication Strategy - For Customers and Users…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 - Communication Strategy -

For Senior Management…For Senior Management…

Components of Successful Components of Successful BenchmarkingBenchmarking

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 ChartsUse 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 Distribution of Operating Costs

2013 UC – GSF/Person2013 UC – GSF/Person

2012: Median = 367 GSF/person

2013 UC– Electrical Usage / GSF2013 UC– Electrical Usage / GSF

2012: Median = 26.00 kwh GSF

2013 UC– Utility Cost /GSF2013 UC– Utility Cost /GSF

2012: Median = $2.07/GSF

2013 UC – Maintenance $/GSF2013 UC – Maintenance $/GSF

2012: Median = $1.84/GSF

2013 UC – Custodial $$ / Area 2013 UC – Custodial $$ / Area CleanedCleaned

2012: Median = $1.04/GSF

2013 UC – Maint + Janitorial Costs/ GSF2013 UC – Maint + Janitorial Costs/ GSF

2013 UC – TOTAL OPERATING COSTS/ 2013 UC – TOTAL OPERATING COSTS/ GSFGSF

Components of Successful Components of Successful BenchmarkingBenchmarking

For the Final Report…Score Your Site by Category i.e

Utilities, Maintenance, Custodial…

Needs WorkOKDoing Great

Prioritize Action Items Based On Your Business Situation

Occupancy Surveys...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

Benchmarking – Why???Benchmarking – Why???

The Benefits of BenchmarkingKnow Where You StandPeers You Can Network With…

Similar Facilities Philosophy Understand Their Cost Structure

Best Practices Implemented… Improved Service Reduced Costs Both

Website: http://www.FacilityIssues.com

Thank You

More Information….More Information….