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

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: 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

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.  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…

6.  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…

7.  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…

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