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7 Tips to Creating Facilities Management KPIs

Defining facilities management key performance indicators (KPIs) is critical to gaining a positive return on investment for your internet-connected facilities management solutions. However, figuring out the best way to create and define KPIs can be complicated, so follow these tips to ensure your program meets your expectations.

1. KPIs Need a Strong Focal Point.

Facilities management KPIs demand a strong focal point. It is best to avoid ambiguity and define additional KPIs to drill down into specific processes or areas of monitoring in your company’s facilities. In other words, a general KPI is great, but it should never be the only KPI you use, explains Facilities Net.

2. Facilities Management KPIs Should Highlight Errors and Opportunities.

KPIs allude to opportunities and errors in your company. Paired with the Internet of Things (IoT) and energy management systems, KPIs can be used to highlight missed maintenance tasks, greater traffic area of your business or problems with machinery. Take, for example, using a percentage KPI of planned maintenance against reactive maintenance. In other words, is preventative maintenance saving more money than repairing equipment when it fails?

3. Always Set a Target.

KPIs lack value if you do not define a clear target. Target areas may be subject to zones, but it is best to set a minimum value for the KPI. For example, gross energy consumption per square foot should be below 10 percent. However, your actual target ranges may vary as seasons change or when making upgrades to your HVAC systems.

4. Align Organization Goals with Facilities Management KPIs.

Utility consumption costs in facilities management KPIs may reflect growing concern to reduce carbon footprint and achieve better energy efficiency. All KPIs should reflect organizational goals. For example, a goal of reducing the workload on AC units during the afternoon means you need a KPI for energy consumption for all HVAC systems during the day when compared to the energy use for that specific time. The resulting percentage indicates if the goal is being met.


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5. Include Facilities Management KPIs for Gross Costs.

Gross facilities management KPIs are fundamental concepts in utilizing automation and efficiency monitoring in your company, reports Dean Kavrakov. This KPI is the result of dividing gross costs by the grow floor area. This will derive a value of cost-per-square-foot. Based on energy ratings and feedback from connected systems, energy efficiency can be more clearly defined by what areas are not being managed appropriately.


For example, poor store layout may inhibit airflow and drive workload on the HVAC system in the back of your store higher than optimal. Thus, your energy consumption goes up when a simple change in layout might eliminate the issue.

6. Tracking Deferred Work Is Key to Reducing Backlog.

Putting work off contributes to less operational efficiency and possible issues in the future. Thus, any deferred work should be automatically logged and tracked. In addition to identifying possible disconnects between information dissemination and correction of issues, this KPI can help keep your team on track with tasks that need to be completed, such as replacing HVAC air filters.

7. Preventive Maintenance Program Compliance Metrics Should Track Use and Adherence to Automated EMS Systems.

Automated systems can dramatically reduce inaccuracies in reports and overall operational efficiency. The IoT empowers preventative maintenance programs through facilities management KPIs. However, preventative maintenance inherently means someone or something must take a certain action to keep equipment from breaking down. This might include making minor repairs, or as technology grows more complex, controlling robots to make such repairs or perform routine maintenance.

One Last Thing: KPIs Are Not Autonomous.

KPIs indicate the status of your company or facilities management program. However, they are not autonomous. In other words, it will still be up to you, your managers or your partnering providers to tell your team what needs to be completed to bring KPIs in alignment with target zones. By following these tips, you can create efficient facilities management KPIs that benefit your business.


How can the Internet of Things (IoT) increase efficiency in facilities management? Click here to download our guide.