In times of distress, decreasing the Facilities Management budget might seem like the logical step in corporate priorities, but it is also possible through analytics while keeping the facility in top-notch shape.
The Facilities Management budget is often the first place executive-level leaders start to cut down on spending. However, analytics has the potential to change how Facilities Managers approach their budget, and in fact, according to Lewis Columbus of Forbes, 60 percent of CIOs predict spending on business analytics will increase in 2018. Facilities Managers need to understand the traditional problems with budgeting and how analytics improve accuracy and increase visibility into facility assets and further refine the budget.
Key Problems Facilities Managers Face in Developing a Facilities Management Budget
Common problems in the Facility Management budget often reflect the degree of deferred maintenance in the facility. Since deferred maintenance is tantamount to the squared cost of an original repair, it can be hard to distinguish spending for preventative measures versus areas of deferred maintenance. In addition, more multi-site operators – retailers especially – are looking for ways to survive economic turmoil, and even in periods of profound economic growth, caution reigns supreme. As a result, Facilities Managers are asked to do more with less. Additional challenges might include disparate systems, noneffective energy metrics, inability to gain insight from existing systems, and lack of performance visibility. These challenges result in wide discrepancies between budget needs.
Analytics Enables Accuracy in the Facilities Management Budget
The introduction of cloud-based technology was a breakthrough for Facilities Management. Facilities Managers can use Big Data analytics to improve accuracy in the Facilities Management budget. As explained by FM Link, this is possible through understanding the expected outcomes for specific facility assets and needs.
For example, analytics can provide visibility to a forthcoming problem in an HVAC system controls. Rather than waiting for the system to fail, which incurs additional labor costs, disruption costs, and decreased asset life expectancy, Facilities Managers can address the issue in advance.
How to Use Analytics to Improve the Facilities Management Budget
Applied analytics can improve the Facilities Management budget, but it is hard to know where analytics should be used. Facilities Managers that are new to the position or have little experience in dealing with analytics may not know where to turn. To simplify the process, Facilities Managers should follow these steps:
- Conduct a facility condition assessment. A facility condition assessment, as explained by Facility Executive, is comparable to an inspection to collect and analyze Facilities Management data, enhancing budget planning.
- Identify and prioritize needs within the facilities maintenance backlog. The key to making this step work is using analytics to identify which maintenance needs deserve a higher priority.
- Retrofit facility assets with smart devices and technology. Retrofitting systems allows Facilities Managers to conduct a more intense facility condition assessment, using data analytics.
- Determine the short-term and long-term costs for implementing an analytics program and using an energy management system. This step gives Facilities Managers a glimpse of the total costs for implementation, which is necessary for preparing proposals for review by members of the executive team.
Improve Consistency, Accuracy, and Timeliness of Your Facilities Management Budget Now
Using analytics is considered to be one of the greatest intelligent measures that can boost returns and improve the Facilities Management budget, says Facility Executive. While the Facilities Management budget may be under attack, you can do something to stop it. Gain insight into your facility through analytics, and choose ENTOUCH to streamline the process and achieve faster time to ROI. Visit ENTOUCH online, or give us a call at 1-800-820-3511 to get started.