Posted on 11/17/2014
By Lora Mays, Product Marketing Manager
Through an IWMS solution, organizations can understand the exact specifications outlined within a lease and how it relates to maintenance procedures and activities. Violating strict requirements, such as simply painting a wall without permission, can be quite costly for organizations. Without having links between your lease administration, space and occupancy data, and facility maintenance management systems, it may not be clear which facility maintenance activities can be performed and what is out of bounds of the lease terms.
For example, the purchasing department of a department of defense contractor was negotiating custodial contracts. The purchasing department, which didn’t have access to the space and occupancy information of the organization, was negotiating the cleaning contract terms based on how many square feet they had in the building. But what they didn’t realize was that nearly half of the organization’s 2.4 million square feet required security clearance for entrance – meaning the janitorial staff would be unable to clean the area, even if it was listed in their contract. In learning the space constraints of the organization, the purchasing department was able to save the organization a significant amount of money when they finalized the custodial contract.
Without a single source of truth for your real estate and facilities data, it can result in costly mistakes. Relying on different departments to gather the information required to make decisions for the organization can result in misinformation, or even a lack in uncovering essential details. As with the department of defense contractor, a lack of visibility could result in a significant overcharge for services.
Linking your space and occupancy management data with your lease administration and facility management information can ensure appropriate space use. This helps organizations save money on their real estate and facilities, which is often the second largest expense for organizations.1 Furthermore, appropriate allocation of resources – staff, budget and assets – can help organizations save a significant amount of money and improve worker productivity in the process.
Improving resource allocation with an understanding of contractual obligations is just one value that your organization can gain from an IWMS solution. Read previous blog posts to learn about the first three values in the series. You can also download the whitepaper The Strategic Value of IWMS to learn how your organization can drive profitability from your real estate and facilities portfolio.
1 Magic Quadrant for Integrated Workplace Management Systems; Gartner; June 26, 2014.