What Are The Most Important Facility Management KPIs Today?
As the workplace becomes increasingly distributed, facilities managers need to redefine what success looks like. In this era of hybrid work, it’s no longer enough to simply look at occupancy and vacancy rates. Facility management KPIs give managers a clear view of the targets they need to meet to help their organization succeed. These KPIs compile data from multiple sources and make it transparent so your leadership team can overall performance at a glance and identify opportunities for improvement.
Here’s a look at how facility management KPIs have changed and which ones are most important to consider today.
Facility management KPIs versus metrics
Key performance indicators sound a lot like metrics, but they aren’t the same thing. Metrics are single points of data, while a facility management KPI often takes several sets of data into account. Let’s look at facilities management metrics and facility management KPI examples.
Some examples of facilities management metrics that are most relevant today include:
- Real estate costs and terms
- Space utilization
- Space quality
- Asset costs
- Productivity costs
- Sustainability metrics
- Employee engagement
These metrics are valuable to measure, but they are typically just one part of a broader facility management KPI.
How can you tell the difference? A facility management KPI directly relates to SMART goals, which are specific, measurable, agreed upon by all key parties, realistic, and time-sensitive. Facility management KPIs might include:
- Improving space utilization by X percent: This facility management KPI takes into account not only how many workstations are occupied at any given time, but how often meeting rooms and collaborative spaces are being used across all your real estate properties.
- Reducing energy consumption by X percent: This facility management KPI would involve looking at several factors, including heating and cooling, lighting, and total electricity usage.
- Maintaining our buildings X percent more efficiently: This facility management KPI would involve monitoring room usage and dispatching maintenance crews only as needed, as well as taking a more proactive approach to preventive maintenance.
Sometimes KPIs can be used as leading indicators.
In other words, once the facility management KPI reaches a certain number, your organization may take a certain action — such as leasing a new property when space utilization reaches a certain percentage.
Many KPIs are lagging indicators, offering outcome information that can be valuable for planning. Whatever KPIs are defined, they should reflect organizational goals, should be relevant to its success and should be measurable. Facilities management software can be a key partner in developing and tracking any facility management KPI that’s important to your organization.
Benefits of facility management KPIs
Creating insights from multiple sources of truth
One reason KPIs are so important is that they take data from multiple “truth sources” and provide informative, actionable insights.
Your facilities management software, for example, may take in data from multiple departments and facility systems. If it has robust analytics and reporting capabilities, it can help you determine which KPIs are most relevant to your business goals. Facility management KPI reports can also help you monitor them and track facility management KPI trends and performance over time. Some facilities management software solutions even allow you to create custom dashboards so you can see the data points you want, organized how you want them.
Providing a balanced company scorecard
Your company’s KPIs can help you develop a balanced company “scorecard,” or a matrix that indicates performance in multiple dimensions. A company’s scorecard tracks each important facility management KPI from different points of view, such as financial, internal, external, and innovation. By using your facilities management software to help you develop and track KPIs, you can help the various stakeholders in your organization monitor your company scorecard from multiple perspectives, which can be tremendously helpful in the evaluation and planning processes. If your facilities management software has easy reporting capabilities, you can create periodic reports to distribute to key personnel to facilitate monitoring of various company scorecard measures and can even create facility management KPI reports on-demand should the need for them arise.
Aligning data with business strategy
Key performance indicators can help bridge the gap between raw data and business strategy. When you use your facilities management software to develop and track KPIs, you’re able to take numbers that may mean little out of context, and put them into a context that is useful for showing how well operations are in alignment with business goals. When it comes to fine-tuning business strategy, KPIs offer vital information that could be missed altogether in the absence of KPIs and the software necessary to develop and track them. The results of facility management KPI tracking can include cost savings, improved revenues, or a stronger competitive edge.
Sparking critical conversations
One of the most important things KPIs do is start conversations. Simply having KPIs and knowing they are being tracked helps promote an attitude of more informed decision-making in an organization. The data contained in your facility management KPI reports is often enough to get key personnel talking about what the KPIs measure, whether they need to be modified or fine-tuned, and what can be expected upon achievement of KPI-associated goals. The result is a more informed organization that has more relevant information with which to make critical business decisions.
As a facilities manager, your own KPIs can help you determine how to continually improve facilities management and create business value. By learning which analytics you should look at and how to relate them to overall business goals, you help make facilities management a key partner in achieving organizational goals, both short and long term.
iOFFICE + SpaceIQ gives your organization the tools to connect your people, places, assets, and data so you can closely monitor your facility management KPIs and achieve your business goals. Our comprehensive portfolio of workplace and asset management software solutions help you make data-driven decisions and improve interactions with the built environment. To learn more, request a live demo today.