Facilities Managers have been effective at measuring and improving efficiency and cost-effectiveness. However, what’s needed next is to improve the strategic positioning of FM by demonstrating true business impact and communicating it effectively. It is not enough to pursue iterations of cost-cutting, which will eventually reach a limit before risk increases, but FM professionals must take the lead linking facilities spending to a return on investment.

Facilities Managers who pioneer measurement of the ROI will have a tremendous strategic advantage, as well as a foundation for step-change in effectiveness. 86.5% of Facility Managers nationwide believe that it is possible to measure the financial impact of FM activities, according to a straw poll conducted through Building Operating Management. With the advent of sustainability initiatives being implemented in most industries, measurement of both cost savings and business impact is necessary. Moreover, companies will increase their competitiveness through increased innovation: “Along with efficient workplaces, companies are learning the value of building design that encourages innovation.” — Tom Peters

Measurement of return on investment by facilities managers requires more than just checking in with lines of business to see how things are going at the weekly planning meeting. It’s also not measured by how many trouble tickets are adjudicated or client-satisfaction sheets. Though helpful for improving quality of services, real value must be measured by statistical analysis or “analytics.”

Analytics is a methodology for measuring business impact using the principles of “intervention groups” and “control groups” to isolate the benefit from other possible inputs to the benefit, information which interviews, surveys, and line item budgets will not reveal. In contrast the cost orientation, the value analytics approach relies on greater connectivity and communication between interacting departments–a systems view–demonstrating alignment with the strategic goals of the organization. In addition, departments may experience increased creative breakthroughs as they consider strategic outcomes and gain a better understanding of the business drivers for internal clients.

Using an analytics approach, through careful identification of intervention and control groups, facilities managers can tease out additional information to optimize their strategies and deploy the projects across the enterprise for even greater return. Long considered too expensive, complicated, or impossible, measuring business benefit is not only possible, but it is fast becoming a business imperative.