Posted on 10/20/2015
By Lora Mays, Product Marketing Manager
For most organizations, their facility and real estate portfolio falls as the second largest expense item on the balance sheet. Finding ways to improve the operations of these facilities can save organizations significant costs and ensure that their buildings are serving them in the best way possible, now and in the future.
Through facility capital planning, organizations can ensure the optimal condition of their facilities. The facility capital planning process starts with the collection of key data points to understand the current condition of the facilities, so that you can create an actionable capital plan that gives your organization the results you need for your real estate and facility portfolio.
Executed in the right way, the facility capital planning process can:
Within this process, the first step should be to define the capital planning process. The facility management team, and other parties who may be involved, must agree to key strategic goals that will guide the capital planning and management process. Setting the stage with this information will help guarantee success and ensure that you are able to leverage your facility capital investments in the best way possible to support your facility needs.
Focus on creating goals that flow from the existing organizational strategic plan, mission statements and visions and performance metrics for the facility and operations teams. Doing so can help you articulate the objectives to which your capital plan and budget should align.
In addition, during this step, make sure that the team or committee agrees on the capital planning process. Knowing the specific evaluation criteria and how you will collect and use the data will ensure that everyone stays on the same page throughout the process.
Lastly, it’s important to use this time to determine what success looks like. Is it monetary in nature, for instance, measuring how much less you are spending on emergency repairs? Or, is it defined by how your facility condition index improves over time? Success varies based on the organization and your long-term goals for the facility and the business.
Interested in learning more? Contact us or stop by next week for the next post in this series, where we talk about step 2 towards a better facility capital planning process.