Cost reductions in economic down turn
As the US are undergoing an economic crisis, the life of the Facility Manager is even worse. Already approved budgets are being withdrawn in order to reduce facility costs. Although this seems like a logical consequense of economic down turn budget holders should reassess these decisions. Yes, i say budget responsible managers should reasses these decisions.
Why?
Because they miss out on a immense savings potential! Integrated Workplace Management Systems (IWMS) support all kinds of processes in the area of Space Utilization, Maintenance Management, Employee Services and Corporate Real Estate and can, when implemented correctly, save millions of dollars even for mid-sized organizations. Particulary in Space Utilization enormous cost savings can be achieved.
Space Utilization
In many organizations the need for optimal space utilization has not occurred (yet). This in mainly due to the fact that the labour force is becoming more virtual and employees do not spend their workings days soleley in the office building anymore. Although the direct need for optimal space utilization does not seem to surface the indirect (financial) need definitively should.
Organizational spaces are underutilized up to 40% resulting in an unsurfaced financial disaster. When evaluating cost reduction options space utilization should be on top of the list of every Facility Manager. To indicate their savings potential Facility Managers should look at workplaces / employee ratio. A number of studies in different European countries have researched the facility management costs per workplace. Although depending on local situation on average a workplace costs every organization $12000,-.
If Facility Managers evaluate their workplaces / employee ratio they will probably come out anywhere between 1.2 and 1.5. This is not very cost efficient as every employee uses more workplaces than he/she should. Imagine what the potential savings would be if Facility Managers / Space Planners could lower this ratio to 0.8! For a company of 1000 workplaces this could potentially save: 1000 x (1.35 -0.8) x $12000 = $6.6M. Imagine what this could do for a company of 100000 workplaces!!!
However to be able to save this amount of money full control of the Space Utilization is required. Integrated Workplace Management Systems can support Facility Managers to maximize control over their space utilization while simultaneously reducing operational costs. When senior management is presented with these cost savings budget responsible managers definitely will reassess their budgets even in a econmic down turn.
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