Industry-leading study finds capital planning is essential to gaining C-Suite support for smart building solutions.
Smart building solutions, a prerequisite for reaping the rewards of a single pane of glass in facilities management, help Facilities Managers streamline operations across multi-site portfolios and effectively do more with less. Obtaining C-Suite support for investing into smart building solutions is not as simple. The wrong choice of words during the Smart building solutions’ presentation to the C-Suite or a misunderstanding of stakeholders’ goals can have disastrous consequences for your plans. Instead of leaving it up to chance, as explained by Buildings.com, use capital planning to obtain C-Suite support for Smart building solutions’ implementation.
Capital Planning Is Integral to C-Suite Decisions
Stakeholders want to know that facilities managers have real-world, viable plans for securing the long-term success of their departments and the overall enterprise. Stakeholders want a proof of concept, and the only way to achieve this feat when seeking support for Smart building solutions lies in leveraging the power of capital planning. Think about it; all C-Suite decisions are made based on capital spend, and capital planning is essentially the budgeting of capital spend. This allows facilities managers to use capital planning to document and rationalize the need to invest in Smart building solutions.
Demonstrate How Capital Planning in Facilities Management Leads to Value Creation
Being ready to respond to these questions is key to avoiding the appearance of being ill-prepared and -equipped to handle the project. Instead of just going for smart building solutions, start broad, but have a named solutions’ provider, like ENTOUCH, just in case. This will prevent any delays and avoid the necessity of re-pitching the idea in the future. Have the following information ready to go at the time of presentation.
- Facilities managers should determine the investment associated with implementing Smart building solutions.
- Identify labor and installation costs associated with implementation.
- A breakdown of potential cost savings as a percentage of costs of continuing operations at the current rate or according to the current standard.
- How implementation will affect working capital.
- How implementation will decrease the maintenance backlog.
- Average costs for preventative and scheduled maintenance within the new system.
- The costs of change management.
- Savings reflected as value creation.
Capital Planning for Smart Building Solutions Is Built on Long-Term Costs and Savings
Before presenting information to the C-Suite, facilities manager should understand the basis of capital planning, preparing for long-term costs and savings. In the realm of facilities management, this includes the direct and indirect costs associated with implementing Smart building solutions, such as retrofitting HVAC systems with sensors, deploying smart thermostats, leveraging other forms of energy and sub- load metering throughout the facility.
Using Capital Planning Takes Time and Care in Presentation Preparation
Capital planning should not be an afterthought when seeking a shareholder support for Smart building solutions. Failure to obtain the right information before presenting information to the C-Suite will likely result in denial.
Careful Analysis of Risks and Opportunities
Capital planning will have some risk due to variations in annual energy costs, procurement costs and more. However, facilities managers can help counteract the adverse effects of these variations by conducting a comprehensive capital analysis of risks and opportunities. This is the stem to accessing and leveraging capital planning in the presentation to the C-Suite.
Use Capital Planning to Gain C-Suite Approval for Smart Building Solution Implementation
Get help in preparing your presentation for smart building solutions by visiting ENTOUCH, and learn more about how soon your unique business could see significant returns today. Contact ENTOUCH online, or call 1 (800) 820-3511 today.