Eight Benefits of IWMS for Smart Building ManagementBy Dave Clifton
The shift to flexible work and the new desking concepts that support it has led to an even larger reliance on workplace software. Nothing provides support for workplace governance quite like an Integrated Workplace Management System (IWMS). This comprehensive solution for digital workplace management gives facility managers the tools they need to manage a workplace in real-time. Not only that, it’s a window into workplace optimization on a broad array of levels. These benefits and more are evident in IWMS ROI.
IWMS ROI occurs at both top and bottom lines of a company’s balance sheet. The cost savings of an efficient desking concept vs. new opportunities for revenue by enabling employee productivity. Here’s a look at how to measure IWMS ROI through various lenses, depending on how your company utilizes this software.
What is IWMS?
First, a quick recap of the many ways IWMS software touches the different facets of a business’ operations. While IWMS applications vary greatly from organization to organization, the capabilities of these systems are broad. Some of the broad pillars its features encompass include:
- Space planning and management
- Workplace and employee experience
- Real estate optimization and utilization
- Facilities, maintenance and asset management
IWMS is the digital system through which facility managers can document, observe, oversee, and improve workplaces and facilities at large. It provides powerful reporting capabilities for whatever application it’s deployed to serve—which gives facility managers plenty of opportunity to track its ROI.
Space planning and management
The simplest way to measure the ROI of IWMS software in regard to space planning is to observe classic space-related metrics. Use available data to set the benchmark for these metrics, then peg improvements after IWMS implementation. Some of the core metrics to track include:
- Capacity, occupancy and density
- Overall and space-specific utilization rates
- Cost per head and cost per seat
- Mobility ratios
Historical data will tell the story of how IWMS insights help facility managers improve these metrics and do more with space. Especially as we enter the era of flex work and a mobile workforce, it becomes more and more important to make sure space meets the needs of companies and users in a cost-efficient way.
Workplace and employee experience
It can be difficult to put a price on employee experience and workplace culture. The best way to peg these benefits is through quantifiable metrics that have costs attributed to them. Say, for example, a company does a Net Promoter Survey and finds that happy employees are 26% more productive than the mean, and unhappy employees are 45% less productive than the mean. Apply these percentages to the revenue generation benchmark per employee to recognize the impact of workplace experience.
Quantifying emotion, opinion, sentiment, and other intangibles can provide insight for IWMS ROI. For example, if workplace sentiment averages 64 out of 100, the mean hourly revenue generated by a sales team might be $50.40. With IWMS improvements to create a more comfortable, supportive work environment, that average rises to 81 out of 100 and revenue of $64.50 per hour. Here, you can say that IWMS ROI in terms of workplace experience equates to $14.10 per hour in new revenue. Real change and real numbers make for meaningful ROI.
Real estate optimization and utilization
Calculating IWMS ROI at the real estate level is easy—chiefly because real estate management is inherently numbers-driven. Attributing ROI is a matter of understanding what changes an IWMS enables and how those changes trickle up to the macro level.
For example, if a new floor plan created through IWMS results in better cost per head, that’s reflected in the high-level ROI of the building within a portfolio. When the time comes to extrapolate positive changes across different locations, that location’s cost per head will come up as a model for broader company efficiency.
IWMS has a direct connection to lease costs and operations. Facility managers can gauge positive trends, cost savings, and new revenue tied to operations after implementing IWMS to see the value of software as a driver of improvements.
Facilities, maintenance and asset management
Asset management is one of the simplest avenues for IWMS ROI calculation. In many cases, it’s as simple as taking maintenance budgets or costs from prior years and comparing them to new strategies enabled by digital asset management tools. If the cost of facilities maintenance drops by 18% year-over-year thanks to proactive action through IWMS, the ROI is the dollar value associated with those saved costs.
There’s also ROI in each instance of smarter decision making. If IWMS data projects $1,000 in annual maintenance costs for a piece of equipment, the decision to use it for three more years makes more sense than to spend $6,000 on a new model. Or, at the very least, there’s an ROI in being able to budget for it.
IWMS ROI transcends dollar values
Calculating IWMS ROI requires companies to look at all the different ways IWMS enables better operations. In some cases, that means operational costs saved. In other situations, it’s the top-line growth made possible by IWMS innovations. Beyond even these facets of ROI, there’s one more to consider: the intangible benefits.
It’s difficult to put a dollar value on happy employees or comfortable workplaces—yet, these are major drivers of ROI. It’s essential to factor in not only the dollar figures that show up on the balance sheet, but also the intangibles that IWMS brings to a smooth-running, well-managed workplace environment.
Keep reading: 8 Benefits of IWMS for Smart Building Management