The Art of Telling Your Story

Transcription

1 The Art of Telling Your Story Laurie Gilmer, P.E., CFM, SFP, LEED AP Vice President, Facility Engineering Associates Chris Hodges, P.E., CFM, LEED AP, IFMA Fellow, FRICS Principal, Facility Engineering Associates

2 MANAGING CEUs AND CFM MAINTENANCE POINTS You are eligible to receive Continuing Education Units and Certified Facility Manager maintenance points for attending sessions at IFMA's World Workplace. To receive 20 CFM maintenance points: Record your attendance on your CFM Recertification Worksheet. At recertification time, submit your completed CFM Recertification Worksheet. To receive CEUs: Pay the US$15 processing fee via registration Log into the Attendee Service Center Your log in information was sent to you when you registered for the conference. Complete the session evaluation then take the five question CEU assessment. After passing the assessment, you will receive your certificate of completion. CEUs can only be earned upon successful completion of the assessment. Individuals seeking CEUs or LUs from other organizations must contact those organizations for instructions on self-reporting credit hours.

3 Your Feedback is Valued! Please take the time to Evaluate Sessions Log into the Attendee Service Center

4 Meet Our Presenters: Laurie Gilmer, P.E., CFM, SFP, LEED AP Associate at FEA and leads facility services Leads IFMA Sustainability Committee s Measurement, Monitoring & Reporting task group IFMA Instructor and serves as Chair of IFMA s Scheme Committee for the SFP credential Co-authored the second manual in the sustainability How-to Guide series, EPA s ENERGY STAR Portfolio Manager

5 Meet Our Presenters: Chris Hodges, P.E., CFM, LEED AP, IFMA Fellow Principal at Facility Engineering Associates Fellow of the International Facility Management Association and Royal Institution of Chartered Surveyors Past Chair of IFMA s Sustainability Committee and Strategic Advisory Group, and member of the Education Committee IFMA Master Instructor for the Sustainability Facility Professional (SFP), Facility Management Professional (FMP) and Certified Facility Manager (CFM) credentials. Lead Subject Matter Expert in the development of the Sustainability Facility Professional (SFP) credential.

6 Agenda The financial story How people think Delivering the message Examples in FM

7 The Perception: Facilities is a Cost Center

8 Facilities is an Investment in Organizational Success

9 What is Important to Your Organization?

10 The Financial Story Planning Disposal Design Capital Renewal Repair Construction Start-up/Commissioning Operations and Maintenance

11 Money Basics How we budget: capital vs. operating budget Know your minimum expected rate of return (capitalization rate) Using the right tools

12 Capital Budget What is included in a Capital Budget? Future cyclical repair and replacements Measures that extend service life or retain the usable condition Major activities with a maintenance cycle in excess of one year Systems that have reached the end of their useful life Capital Budget: Typically 2-4% Replacement Value

13 Operating Budget What is included in an Operating Budget? Service and routine maintenance Utilities Custodial services and cleaning Pest control Snow removal Grounds care and landscaping Environmental operations and record keeping Waste hauling and waste diversion (recycling) Security services

14 Capitalization Rate Or: What you can (otherwise) do with $1

15 Making money work for your company $1.33 = $1.46 $1.21 = $1.33 $1.10 = $1.21 $1.00 = $1.10

16 Financial Tools Payback Period Return on Investment Net Present Value Internal Rate of Return

17 Simple Payback Period (SPP)h Return on Investment (ROI) Net Present Value (NPV) Internal Rate of Return (IRR) Initial cost of a project Annual expected savings Amount of return Amount of investment Process of adding all of the cash inputs and outflows over the life of an asset and bringing all of those amounts back to the value of today s dollar Uses discount rate to convert future outlays to the value of today s dollar The discount rate for an investment that yields a NPV of zero In other words, the discount rate at which an investment pays for itself

18 NPV = - Initial Cost (I) - PV(M) + PV(E) + PV(S) Today s $ Capitalization Rate Energy Savings (E) (E) (E) (E) (E) Salvage Value (S) Year NPV Capitalization Rate Maintenance (M) Initial Cost (M) (M) (M) (M) NPV calculations consider all cash inflows and outflows over the life of an investment and convert them all to the value of today s dollar.

19 Agenda The financial story How people think Delivering the message Examples in FM

20 Framing Effects How different ways of presenting the same information can evoke different emotions, decisions, and outcomes

21 Framing Effects Treatment Option A: 10% Mortality Treatment Option B: 90% Survival

22 Framing and Facility Management Conveying information in a way that the recipient can most easily connect and relate to their own personal experience

23 Anchoring The cognitive bias we have that makes us rely too heavily on the first piece of information we receive. Anchor Would you be willing to pay Average Donation Recommend $5 $20 Recommend $400 $143 No Recommendation $64

24 Anchoring Can also be our tendency to rely on our mental estimate of what a number should be based on our past experience not necessarily based on current information or current facts.

25 Simple Payback = 4 years

26 Loss Aversion (Losses loom larger than gains) You get one flip of a coin If the coin shows tails, you lose $100. If the coin shows heads, you win $150. Would you accept the bet?

27 Loss aversion is the cognitive bias that leads us to making decisions that favor the avoidance of a loss rather than the greater prospect of a gain If we do not repair the roof. this could happen.

28 Engagement People don t pay attention to boring things. You only have 10 minutes Brain Rules, John Medina

29 Agenda The financial story How people think Delivering the message Examples in FM

30 Making the business case Know how your organization views facilities Know how your organization makes financial decisions Understand how people think

31 Making the Business Case 1. Know the outcome, the decision you want 2. Perform the financial analysis 3. Convey the financial and non-financial benefits 4. Convey the risk of not taking action 5. Ask for what you want

32 Agenda The financial story How people think Delivering the message Examples in FM

33 Case Study: Facility Maintenance Program Multi-year plan for correction of existing deficiencies Identify capital projects and deficiencies Prioritize projects CMMS uploadable data Bottom line: How much money is needed to maintain facilities?

34 Understanding Mission Criticality & Capital Needs Invest $24M

35 How should funding be directed? Annual Funding Needs FCI Site 1 $9.0M 0.14 Site 2 $2.3M 0.42 Site 3 $0.3M 0.45 Site 4 $0.9M 0.27

36 How should funding be directed?

37 Mission: To serve the United States of America in a national role by preserving, collecting, exhibiting, and fostering the understanding of works of art at the highest possible museum and scholarly standards.

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43 The Art of Telling Your Story Create a compelling business case knowing How your organization views facilities How your organization makes financial decisions How people think

44 Questions? Laurie Gilmer Chris Hodges Be sure to evaluate the session online at the Attendee Service Center

45 Thank You! Laurie Gilmer Chris Hodges For a copy of this presentation, go to: