What Facility Management KPIs You Should Track and why

Facility management has evolved to be distinct from what it was previously. As a facility manager, you must manage multiple things at once, from equipment management software to fleet maintenance and work orders.

Given the constantly changing environment, you should be able to quickly go through your operations, learn, and adapt to the challenges. Knowing how to check your facilities regularly can help you keep track of things and minimise operational inefficiencies.

Facility managers use KPIs (key performance indicators) to measure organisational success and make decisions that are more informed. In this article, we will look at how to set KPIs as a facility manager to track progress. Please continue reading to learn more about these KPIs and how to implement them best!

WHAT ARE KPIS?

Key performance indicators, or KPIs, are metrics used by organisations to determine how close they are to achieving their long-term business goals. Every industry employs various KPIs to aid in long-term success and achievement of goals. Facility management is no exception, as KPIs are required to keep track of things and ensure that everything is measured quickly.

KPIs can serve as a roadmap for future success by indicating the path you should take for success and what you can do to get back on track. Interchangeably use KPIs and metrics, but it is essential to understand that KPIs are used for performance tracking and goal setting.

Standard key performance indicators facilities management KPIs to Monitor

A key performance indicator (KPI) is a measurement that teams can use to track their progress toward strategic goals. They are specifically designed to provide valuable insights into day-to-day operations and assist teams in understanding how they perform their objectives. The most successful organisations make data-driven decisions that result in outcomes that affect the organisation's overall success. Check out our curated list of the top KPIs to track this year and beyond:

1.) "Planned" vs. "Reactive" Maintenance

The goal is to understand how to improve your team's pro activity with maintenance tasks. If your team is like most, you are probably still reactive regarding maintenance. There is no judgement here — you are not alone! According to our most recent State of Facility Management report, only 18% of respondents strongly believed that their teams were more proactive than reactive. After determining your ratio, you should drill down to determine where those reactive work orders come from.

Is there a building in your portfolio that is having problems?

It could be an indication of poor conditions that require funding. Is there an asset (or set of purchases) that generates many work orders? Consider establishing new or more frequent preventive maintenance schedules.

Work Order Resolution Time

The goal is to figure out how long it takes your team to complete a work order from start to finish.

Is your team taking too long to respond to work orders? When issues arise, your organisation and occupants rely on you to resolve them quickly and effectively. When service requests take days or weeks to resolve, you may force to slay the "angry occupant" dragon. Not to mention that slow work order response times may jeopardise your overall revenue goals and raise your operating expenses.

So, how can you improve the time it takes to complete a work order? Begin by establishing clear goals and prioritising work orders. This specific KPI must consider how many work orders each technician or manager is responsible for. Remember to keep track of self-identified work orders versus service requests. This could be your ticket to requesting an additional headcount if necessary.

Occupant Satisfaction Rates

Identifying areas for improvement in occupant comfort, safety, and health.

The spaces in your building significantly affect the mood and satisfaction of the occupants. People will be more engaged and focused on clean, comfortable, and functional structures. If your facilities team has access to the right KPI data, they can assist you in improving the occupant experience in your building.

Begin by conducting surveys after the completion of work orders. Inquire about the following: Was the job done correctly? Was it completed on schedule? Was the technician approachable and helpful? What changes could be made to improve the experience in the future? The responses may give you a fresh perspective on team performance and expectations.

Make a point of conducting a yearly survey as well. This will allow you to stay on top of your tenants' needs and expectations. For example, you could inquire, "Are there any building improvements you would like to see?" How can our facilities team better meet your requirements?

Deferred Maintenance Backlog

Review maintenance tasks put on hold because of financial constraints, a lack of time, or a lack of parts.

The upkeep and operation of facilities are costly. While this should come as no surprise, the dirty little secret of facility maintenance is that there is rarely enough budget to cover all the care and repairs that occur in a given year. These unfinished maintenance tasks are refer as "deferred maintenance."

While there can be a "healthy" level of deferred maintenance, most organisations are far beyond it. We recommend looking into ways better to spend M&O and capital budgets for this KPI. Surveys of occupants can also point you in the right direction. Keep track of deferred maintenance tasks, asset conditions, and failure severity to help you prioritise.

Budget vs. Maintenance Cost

To determine whether your team is on track to meet or beat its financial targets.

Distribute Funds frequently during budgeting season based on current needs rather than departmental outcomes. Facility managers risk quickly forgetting funding for anticipated needs if they do not know how to communicate data effectively to their organisation.

You will need the information to support your request if you want to include the funds in your budget this year. KPIs can be helpful here. Your conclusions can assist you in communicating the data-supported outcomes of your department and the long-term benefits that obtaining the required funding will have for your company. Identifying the cause is critical if you discover that you are not on track to achieve your goals. Find ways to plan your budget flexibly and proactively rather than rushing around at the last minute.

Have you decided on your KPIs yet? Apply this guidance.

Consider what you want to learn from your experience when choosing KPIs to track within your facilities department. Because every facility and organisation is unique, it is a good idea to consider what details you or senior leadership want to know.