As building management evolves, it’s becoming more important than ever for facilities managers to prove their worth. At the same time, it’s also becoming more difficult to define what success looks like. Key performance indicators (KPIs) give building managers a clear view of the targets they need to meet to help their organization succeed. They compile data from multiple sources and make it transparent so building managers can see what’s going well and where there is an opportunity for improvement.

Is your organization measuring the right KPIs – the ones that will ultimately lead to success? Many businesses focus solely on traditional financial indicators like profit, but KPIs are more than just how much money is in the company account. These metrics and indicators provide insight and forecast growth – that’s why we’ve compiled these common key performance indicators (KPIs) for building managers to monitor. Simply put, they show how well your business is performing.

So, which KPIs should you measure?

At BuildingMinds, we find that the following KPIs will apply to any building management business that wants to grow:

  1. Tenant Satisfaction

This KPI measures whether your occupants – whether those are tenants or employees – are happy with their space, technology provided by facilities teams, communication level, response to complaints, etc. By monitoring data based on customer satisfaction, you can see if there are any trends and spot problems in advance and reduce turnover in your building. One way to collect this data is by sending surveys after a work request is complete. Then you can analyze that data and understand general satisfaction with the facilities teams and vendors, and the time it takes them to respond to work orders.

  1. Building Status

In many building management companies, these measurements are related to safety (number of incidents). These KPIs are needed to determine not only if resources and costs have been managed for the building processes achieved, but also whether the tenants or buildings remain in good health or are safe. These KPIs provide assurance that building assets in place today do not limit capabilities for tomorrow. The real challenge is not only to select those indicators that satisfy budgetary goals but also to build the activities needed to meet the levels of building asset or tenant’s performance required to meet strategic goals.

  1. Building Costs

This KPI measures your building costs or expenses. This entails the financial aspect of your building processes. The cost of labor, energy, and maintenance, etc. By monitoring data based on building cost you can see if there are any trends or indicators in advance and reduce expenses while maximising profits in your building operations. For example, analyzing the energy cost KPI helps lead to developing strategies for increasing energy efficiency and determining their effectiveness.

  1. Service Provider Quality

This KPI can indicate how quickly and effectively your team responds to work orders, which serves as an important data point to improve satisfaction among the tenants that you support. By reviewing how well you are meeting SLAs, you can determine whether there are any issues in the work order processes or work quality that are impacting your building and build improvement strategies.

Negative Impact of Not Tracking/Measuring KPI Metrics

Failing to track your business KPI data, beyond the usual financial statements and reports, means you’ll continue to rely on unreliable inputs like past experience and assumptions support business decisions. There really is no substitute for full visibility into the concrete data being generated by your buildings when it comes to measuring the health and understanding the direction of your business. The old saying, “You can’t manage what you can’t measure” rings as true today as always.

Failing to identify and track your business’ KPIs makes it impossible to build an accurate, insightful snapshot of your company’s overall performance for effective decision-making. This, in turn, affects the ability of your stakeholders to make decisions and take actions for their own areas of responsibility.

Not insignificantly, managing buildings or facilities involves risks related to various compliance requirements and occupational hazards from time to time. Failing to take note of the causal effects of these hazards or track past solutions may lead to financial or legal problems.

Building Management Companies and The Problem of Data Integration

While data can be a big boon to facilities operations in terms of creating efficiencies, data can also be a big boondoggle if the systems and expertise aren’t in place to use the data and analytics effectively. One key finding in a new study from Veolia, Getting Value From Investment in Facilities Technology: How To Overcome the Barriers, reports that 80 percent of facility managers can’t get different data systems to talk to each other and, as a result, are losing out on the value of collecting this data.

This lack of interoperability in a building management system results in data bottlenecks and blind spots, which in turn can lead to erroneous strategic decisions. If key processes are slow, if it is challenging to make critical, real-time information available for reporting, or if internal stakeholders are constantly tied up in accessing data, rather than managing data-flows, it means the company is most definitely not getting the full benefits from their building.

Unsurprisingly, the main issue shared today by building managers concerns the difficulties in accessing, structuring and analyzing data to support real-time, smart decision-making processes. Siloed data is not only costly but risky, since it leads to partially informed or misinformed decisions. Data silos were cited as the No. 1 barrier for facility managers when implementing the technology. This results in data feeling insufficient, according to the report and, especially in the case of energy data, facility managers aren’t able to understand the full context of the data, leading to “unjustified conclusions.”

Data Integration and the Use of a Single Holistic Dashboard

Building management environments are often complex, comprised of multiple disconnected core systems as well as peripheral databases and spreadsheets. These are not well integrated (if at all), and legacy systems are not decommissioned when new ones are introduced. This confluence of factors creates many problems for building management professionals when it comes to understanding what data is held, where it is, the quality of it, and what value can be gained from it.

The only way to achieve a complete view of the building’s actual performance effectively track KPIs is by integrating all of the siloed data sources into a single digital hub and viewing everything from a central dashboard. Building managers are twice as likely to use an integrated workplace management system if they can reliably access all of the data they need to perform their work and not have to use multiple systems and services, according to the 2018 Facility Management Benchmark Survey. By integrating everything into a single dashboard for all your building management processes, your building managers will spend less time searching for data, making them more efficient and more effective.

Utilizing a single dashboard to give the right people the right access to the right information, building managers, executives and management personnel will be able to observe real-time building data that is relevant to their role and areas of responsibility and make informed decisions to support your building’s operation. No longer would executives and managers need to request data from various departments and reporting systems. This is one of the key benefits offered by the BuildingMinds platform.

BuildingMinds has the knowledge and expertise to assist you in integrating all of your various data streams into the digital hub in order to gain the visibility you need to track all your KPIs, identify trends, and make strategic business. The BuildingMinds platform is flexible and scalable so that it can be tailored to your specific needs. You will also be able to gauge the success and impact of your newly implemented measures and track the changes to see what improvements can be made.

BuildingMinds understands the importance of not only having access to your KPI data but having the most up-to-date and accurate information possible at all times. With all of your building systems integrated into one central platform, a single dashboard can deliver a complete view into the operational performance of your entire enterprise — even if you have multiple buildings or remote sites in different parts of the state or across the country – enabling you to strategically plan for the future of your business while meeting the needs of your tenants effectively today.