Seven Pivotal Facilities Management KPIs

Facilities Management KPIs Every Organization Should Measure

Thorough facilities management resembles savvy financial management in the sense that it requires vigilant monitoring of performance. That’s where the comparison between facilities and financial management gets complicated. The performance of a stock portfolio is far easier to read: either the portfolio made money or not. Evaluating the performance of a facilities portfolio takes more nuance. There’s no one metric to point to, no bottom line.

Smart facilities management requires organizations to consider a spectrum of Key Performance Indicators, or KPIs. At Gordian, we like to categorize these facilities management KPIs into space, spend and staff.

Space KPIs

One of the most common facilities management KPIs is the Facility Condition Index (FCI), a measurement of the “percent bad” within a facility or group of facilities. Because FCI demonstrates how much of an asset needs work, lower FCI indicates better space performance.

Wondering about the Facility Condition Index for one of your assets? Estimate it easily with our FCI calculator.

The FCI stands in contrast to Net Asset Value (NAV), a measurement of the “percent good” within a facility or group of facilities. Because NAV demonstrates how much of an asset is in good condition, a higher NAV indicates better space performance.

Want to get an estimate of your Net Asset Value? Check out our NAV calculator.

The best way to measure space KPIs is with a facility condition assessment. Gordian offers an array of assessments you can use to quantify the condition of your physical assets and capital planning solutions to help you project the costs of strategic action and the risks of inaction.

Spend KPIs

A fundamental facilities management measurement is operational costs per square foot, or what you spend to maintain your physical assets on a daily basis. In addition to looking at your own operational costs, Gordian recommends benchmarking your organization against your peers to see if you fall in line with industry standards.

Another spend KPI to consider is the ratio of preventive maintenance to reactive maintenance. This is important to track because reactive maintenance is far more expensive than preventive maintenance. Keep this ratio below 25% to ensure you aren’t overspending on maintenance.

Find out more about how Gordian’s Return on Physical Assets (ROPA) helps you establish an analytical decision-making framework that incorporates historical and peer performance.

Staff KPIs

Our last facilities management category concerns facilities employees. The most crucial KPI to monitor is maintenance coverage. Generally, a full-time maintenance employee should manage around fifty-thousand gross square feet, though industry standards vary. If the coverage area goes too far beyond that general standard, staff may be overstretched. Too far below it, and you might not be optimizing your workforce.

Finally, consider work order time as a KPI that reflects user experience. This metric can help you identify bottlenecks and areas to improve operational efficiency.

Your organization can measure facilities performance in all these ways and more. Maximizing your facilities management efforts means defining the KPIs with the most direct correlation to your vision and goals, measuring them and making smart adjustments when the data dictates. Contact Gordian to find out how we can assist you with this process.