Leaders from all corners of the business world understand the importance of measuring performance. Without insight into your operations—both internal and external—you’ll never fully grasp what impact your business has on customers. Brand image is in the eye of the beholder, and consumers always have the option to shop elsewhere. That’s why it’s vital to systematically evaluate whether or not your vendors, employees and company initiatives are contributing to your organization’s success.
Facilities professionals and senior leaders are accustomed to the practice of tracking key performance indicators (KPIs). Even though this concept is nothing new, the massive volume of data that facilities managers must collect and analyze is constantly growing and changing. Facilities managers and business owners alike often face “data fatigue,” which can stall efforts to properly identify and manage KPIs.
Integrated Facilities Management (IFM) technology is an effective tool in the battle against data overload and can take the tactical burden off your FM team so they’re able to act more strategically. Many IFM tech solutions on the market allow users to track custom KPIs so users can measure their progress against their own historical data as well as industry benchmarks.
Here are the top five performance metrics every company should prioritize when it comes to their facilities:
Work Order Management
Tracking work order progress is at the core of any facilities management (FM) program. Work order KPIs should quantify details including:
- Total number of active, scheduled and completed work orders
- Average time to complete a work order
- Backlog of deferred work orders
When your independent service providers (ISPs), corporate leaders and facilities partner have access to these facts and figures, all key stakeholders will be on the same page. IFM technology allows everyone to work out of the same system, with portals tailored to display only the details each user group needs.
Preventive Maintenance Compliance
Preventive maintenance is crucial to the success of your FM operations, as it can help your team address issues proactively rather than reactively. While you can’t plan for every scenario in advance, you can utilize predictive analytical data to understand where you should focus your time and money.
By drilling down further into your data set, you can get an even more granular understanding of how to better allocate resources. For example, you could map out reactive service requests by asset, measuring this metric monthly to identify patterns and make adjustments to your preventive maintenance plan as necessary throughout the year.
When equipment breaks down, it can disrupt your business, prevent a customer from making a purchase, and ultimately cost your organization considerable capital. If a customer notices that multiple lightbulbs are out, for instance, or find the store’s temperature to be uncomfortable due to a malfunctioning HVAC unit, they might to switch to a competitor.
IFM tech platforms come equipped with features to monitor the overall health of your assets by tracking how many service requests or breakdowns have occurred, a practice that often reveals trends over time. This will help you keep your facilities in good condition—something that your customers will certainly notice and appreciate.
Service Level Agreements
Facilities professionals use SLAs to track third-party service provider performance and provide a mechanism for accountability. One of the primary purposes of an SLA is to guarantee that tasks, maintenance requests and work orders get completed on time, and they should be one of the top KPIs on your radar.
Time Spent on Reactive Maintenance
Preventive maintenance is so important, it bears mentioning again: Facilities teams cannot operate efficiently when they’re constantly scrambling to address emergency repairs or recurring service requests. Capture the time your team spends reacting to problems and measure the amount of reactive maintenance against all maintenance costs.
KPIs are only effective if they apply to the nuances of your business. It’s best to avoid measuring metrics just because other companies are doing it; select KPIs that address your particular pain points and track them using an IFM technology solution. With all your KPI data stored in one place, everyone from the facilities manager to the C-suite can analyze—and work to improve—your business’s performance.
See how these all tie together with NEST’s Smart Technology.