Facilities are considered one of the three largest expenses an organization has – along with employees and technology. However, more often than not, facilities are rarely given the attention they deserve.

In most cases, executive leaders do not know what they have in their building portfolio, what condition any one building is in or how it supports the mission of the institution. The majority of institutions still manage facility data using a combination of spreadsheets, disparate databases and paper reports – an inefficient method for gathering, managing and analyzing facility-related data. Without this knowledge, organizations cannot understand the impact facilities play in an organization’s ability to attain success.

Today’s technology-based methods, such as capital planning & management solutions (CPMS), allow organizations to transition to a more strategic and automated approach for managing fixed assets, ensuring these assets support the goals of the organization. By utilizing technology and a proven methodology to ensure a comprehensive and proactive strategy to facilities management, organizations can develop a business continuity plan, build an organization’s identity and increase their return on facility investments.

Business Continuity Plans

Building managers need to ask themselves, “What systems in my buildings could affect the success of my business?” When an emergency arises, knowing the answers to even the most basic of questions can impact the time required to get a company on the road to resuming normal operations. For example, if the AC system fails in a data center, there could be serious and costly losses due to the overheating of major computer systems and related hardware.

The benefits of having a business continuity plan can justify the cost of implementing a strategic technology-based approach to facilities management. Building managers can use capital planning technology to plan and forecast future repairs and investments. They can reduce the risk of business disruptions and preserve each building in its desired state. Organizations that establish a planning process and make informed decisions based on objective data can reduce capital expenditures by as much as 20 percent, in addition to avoiding lost revenue and customer dissatisfaction.

Building Brand Identity

A consistent organizational identity helps to strengthen customer and employee experiences, as well as meet the branding and quality standards set by management. In recent years, many institutions have experienced identity issues associated with mergers and acquisitions. For example, merging financial institutions must assess acquired properties to ensure new facilities, such as ATM booths, are in accordance with the company’s “look and feel.” The environment of the ATM or bank branch – color of the carpeting, layout, etc. – should be consistent throughout each location so that a consumer knows by walking into the office which bank he or she is in.

Ensuring that each building in the combined portfolio reflects the identity and supports the mission of the new organization can be a vast undertaking, particularly for institutions that frequently interact with the public. In one instance, a local financial services corporation instituted a CPMS program to assess environmental issues and quality standards across its branches and ATMs. By surveying its entire portfolio and using decision-support software to identify and manage the resulting data, the institution was able to quickly pinpoint problem areas and determine required actions to address both functional and quality inconsistencies.

Increase ROI

A well-instituted capital planning program can quickly deliver a significant return on investment, while enhancing the value of an organization’s real estate portfolio. There are obvious examples of cost savings that can be achieved by being able to examine detailed data and view projects across a portfolio. Using industry-standard lifecycle information mapped against an institution’s actual mechanical, electrical and architectural components, facilities personnel can be scheduled to perform work ahead of projected failures. Purchasing agents can negotiate bulk purchases and labor rates for a series of projects. When an organization is faced with an emergency repair, there is often no time to seek competitive bids, resulting in higher repair costs in addition to business disruption. Institutions that can accurately project the costs of renewing major systems over the life of a building are able to make sound financial choices such as whether to invest in or decommission a building. By implementing a capital business plan for facilities, organizations can experience a return of investment between 77 percent and 287 percent over a three-year period.

Facilities are not only a necessary business investment; they are a critical component to achieving an organization’s future growth and success. Through the implementation of a facility capital planning solution, building managers can plan and forecast future repairs and investment – realizing a quick return on investment.

Organizations can reduce capital expenditures by as much as 20 percent, in addition to avoiding lost revenue and customer dissatisfaction, and see powerful savings, such as:

• Reduced waste in capital projects between 10-50 percent;

• Up to 60 percent reduction in new construction spending;

• Decreased annual material costs of 10-15 percent;

• Between 10-50 percent reduction in spending for emergency repairs; and

• Savings of up to 50 percent in overall project costs.

To ensure the continued success of a company, it is essential for executives to understand what is required from the buildings in a portfolio. Developing a business continuity plan and mapping out a business capital planning and facility maintenance budget can keep a company up and running. Institutions that undertake these processes and understand the value of facilities and the importance of a strong capital planning management system will be at a competitive advantage.