By Reagan Nickl
Director of Professional Services
Did we meet our monthly sales goal last month? Is our current ad campaign generating expected engagement? How long do customers spend on hold before we pick up and answer their questions? We track and measure success and failure in the workplace through Key Performance Indicators (KPIs). KPIs help develop real goals and meaningful steps to achieve them, and they’re essential in every segment of the business.
Below, we’ll dive into some facility management KPI examples that identify opportunities for workplace success. But first, let’s take a closer look at KPIs themselves and why they’re so integral.
What are KPIs and why track them?
KPIs are like a roadmap that tells us if we’re on track or off-course, or if our goals are even feasible. They’re an important metric across every business unit, from sales, to marketing, to facilities management. KPIs show how short Sales is from their monthly revenue goal. They set the precedent for how many media impressions Marketing will get from its newest ad campaign. KPIs even apply at a personal level, and can show Max how far ahead he is on a specific project.
KPIs focus on the most important aspects of business for a particular group or individual. You’re not going to track sales revenue for your Marketing team because they’re not the ones selling, just like you wouldn’t track average wait time for your Sales department—that’s a Customer Service metric. Identify and track KPIs that are relevant to each business unit to understand how well that business unit is performing.
Usually, departmental KPIs are narrow—focused on explicit goals set for that team. Facility management KPIs are a bit broader and span both people and the building itself, but they’re nonetheless important to track. Here are some sample KPIs for facilities managers that touch both realms.
Facility manager primary KPIs focus on how people interact with the workplace. The primary goal of the workplace is to support the workforce, so it only makes sense! People-focused KPIs look at space occupancy and availability, how happy and/or satisfied employees are, and workforce allocation. Some of the most important KPIs to track include:
- Space occupancy rates
- Desk availability
- NET Promoter Score
- Workforce distribution
Uptrends on these KPIs indicate that the workplace is functioning as it should. People are happy, they have the right workspaces available to them, and they’re doing work in a productive way. KPIs trending down in this area indicate the workplace doesn’t meet the needs of the people in it. They’re not able to work efficiently or productively, and they’re dissatisfied with the workplace—or worse, the company itself.
On the flip side of facility management KPIs are building-facing metrics. These KPIs look specifically at the building as an investment. Is it generating positive returns? How does the building serve the needs of the business as an asset? These KPIs track costs, building performance, and maintenance of the investment. Some of the most common include:
- Work order fulfillment times
- HVAC and energy costs
- Total facilities costs
- Equipment downtime
Facility managers need to track these metrics with intent to continuously improve them. Ask yourself, how does the business benefit from a reduction in equipment downtime? Where can you reallocate bottom-line savings to generate better ROI for the top line? Building-focused KPIs tell facility managers what they need to know about the performance of the building as a physical investment.
Use KPIs to set actionable goals
Facility management KPIs represent the aspects of the job that matter most—those with the biggest impact on the workplace and the people in it. It’s not enough to just measure them; you also need to improve upon them. For example:
Right now, 23% of employees are remote. We want to increase this to 45% over the next 12 months, while accounting for new job growth in that time.
Over the last six months the average response time for routine building repairs and maintenance was three days. We want this to be two or fewer days in Q3 and beyond.
KPIs don’t force a solution—they connect the dots between data and strategy, providing one to facilitate the other. You might buy coworking memberships for the employees you intend to transition to remote work, or staff another person to the maintenance department to expedite work order fulfillment. It’s not how you improve your KPIs, so much as that you continue to hold yourself to them.
The more you know, the more you grow
KPIs are a drilled-down way to look at fundamental aspects of business—the ones important to its success. Tracking facility management KPIs is the simplest way to hold the workplace to its highest standards, to facilitate success within it. There are infinite ways to reach your goals and meet your metrics, and what matters is that you hold yourself to these standards.
KPIs will tell you when you fall short of the ideal and where there’s room for improvement. Pay attention to them!
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