FACILITIES MANAGEMENT WHITE PAPERS Facilities Management Software Survey An analysis of automated solutions in the FM marketplace, co-sponsored by CenterStone Software and FMLink. Co-sponsored by CenterStone Software and FMLink Executive Summary The objective of this research program was two-fold: To survey the marketplace on leading trends in facilities management across different industry segments and To provide a gap analysis on automation solutions in this market. To achieve these objectives, CenterStone Software co-sponsored an online survey with FMLink, the online magazine for facilities managers (www.fmlink.com), in December 2005. A total of 438 people participated in the survey, which was run on FMLink. Survey participants. Participants were primarily mid- to senior-level professionals from North America. Most are responsible for facilities management activities within an organization. Most manage multiple facilities and 75% of them manage a portfolio of more than 250,000 sq. ft. Twenty percent of respondents provide outsourced FM services and/or consulting. Common Goals. No matter the size of the portfolio or whether they work in-house or as an outside consultant, FM professionals' top two goals were to improve the use of existing space and reduce occupancy and operating costs. The other key priorities were a function of portfolio size. Those who manage portfolios of 750,000 sq. ft. or smaller focused more on improving space planning and forecasting, while those with larger portfolios prioritized reducing the cycle time for work orders and projects. Leasing and Cost Measurement Are Key. Respondents across most segments rated leasing and facilities operating costs as the two top areas that they measure regularly. Respondents who managed larger portfolios rated leasing first, but also report regularly on portfolio utilization and service partner execution and performance. Today's Challenges. The top three challenges for managers of smaller facilities were a) maintenance of building assets, b) limited staff and resources and c) alignment with other departments and corporate goals. Managers of larger facilities also pointed to obtaining accurate, timely information for executive reporting as a top challenge. Online Solutions Help Improve Operations. All respondents believe a Web-based solution would help or has helped them improve operations. Turning to Automation. Most respondents used CAD drawings or Excel, Word or PowerPoint to plan their last move. More than half of those with 500,000 - 750,000 sq. ft. portfolios are looking to automate their moves and other workplace projects, as well as 43% of those with smaller portfolios. New Software on the Horizon. Those in charge of larger facilities rated maintenance and facilities management as their top software priorities for the coming year, while those in charge of smaller facilities and those who provide outsourcing services pointed to facilities management software, and for the most part, maintenance software. Top Priorities for Outsourced Providers. FM professionals at all levels shared key priorities—improving the use of existing space, reducing occupancy and operating costs and improving operations. The 20% of respondents who are FM consultants or outsourced service providers shared many of the same goals, challenges and plans as FM professionals who work inside organizations. They also shared many of the top factors they measure, with facilities operating costs as the most important metric. One key difference is that service providers point to occupancy costs as a top priority, while other respondents were more concerned with leasing. Service providers have seen the largest operational impact from software in the area of project scheduling, and have facilities management and maintenance solutions at the top of their list of solution priorities in the coming year. Key Findings The participants 62% of all respondents work in North America, 16% in Europe, 10% in Asia and 2% in Africa. 51% of all respondents hold manager titles and 20% hold titles of director or above. 33% of respondents' facilities management groups reside in Administration, whereas 12% reside in Real Estate and 9% in Personnel and Finance respectively. Those with larger portfolios work more often under Real Estate. 61% of all respondents are primarily responsible for facilities management, with 17% primarily responsible for operations. A small percentage of respondents are primarily responsible for space management and planning (4%), architectural / engineering services (3%) and Real Estate (2%). 20% of respondents work for an organization that provides outsourced facility services to other organization/institutions or are FM consultants. Size of facilities managed Less than 100,000.sq. ft. - 9% 100,000 - 250,000 sq. ft. - 22% 250,001 - 500,000 sq. ft. - 8% 500,001 - 750,000 sq. ft. - 9% 750,001 - 1 million sq. ft. - 6% 1 million - 5 million sq. ft. - 18% Over 5million sq. ft. - 8% Majority of respondents manage 11-50 facilities with those managing more sq. ft. managing 51 or more facilities 22% of respondents' facilities departments manage 11-50 facilities with 17% managing 51 or more and another 11% managing only one. We find those who manage larger spaces tend to manage more facilities. For instance, we find 34% of those who manage 1 million - 5 million sq. ft. and 80% of those who manage more than 5 million sq. ft. manage 51 or more properties. The majority of those who provide outsourcing services manage 11-50 properties or 51 or more properties. Respondents are from the following industries. 12% Government 9% Education 6% Financial Services 6% Health Care 5% Business / Professional Services 4% Telecommunications 4% Manufacturing (Industrial) 4% Telecommunications 3% Energy / Utility 3% High Tech 3% Engineering / Construction 2% Banking 2% Retail 1% Aerospace / Defense 1% Hospitality 1% Manufacturing (Consumer) 1% Transportation 1% Media / Entertainment / Publishing 1% Pharmaceutical / Biotech The Goals of Today's FM Professionals No matter the size of their portfolio or whether they are an in-house professional or an outside consultant, FM professionals' number one goal on an annual basis is to reduce facility operating costs. Improving the use of existing space is a close second. Those who manage 750,000 sq. ft. or less listed improving space planning and forecasting as their third highest priority. Those who manage 750,000 sq. ft. or more indicated that reducing the cycle time for work orders and projects was their third top priority. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Outsourced FM Reducing occupancy costs 19% 29% 57% 27% 45% 35% 20% Reducing churn rate 4% 0% 9% 7% 9% 10% 1% Improving space planning or forecasting 33% 57% 52% 27% 34% 20% 9% Improving the utilization of existing space 48% 67% 52% 47% 52% 45% 20% Building or acquiring new facilities 23% 38% 30% 27% 39% 25% 6% Reducing # of facilities 3% 5% 9% 7% 11% 10% 8% Reducing facilities operating costs 53% 71% 83% 73% 80% 70% 28% Reducing the cycle time for work orders and projects 27% 29% 26% 40% 48% 45% 18% Collaborating with service partners 21% 29% 30% 27% 23% 35% 12% Accommodating mobile/ flexible workforce 3% 5% 9% 0% 7% 5% 11% Other 4% 5% 4% 7% 0% 30% 2% The Measurement of Leasing and Costs Are Key Respondents across most segments rated leasing and facilities operating costs as the top two areas on which they measure or report regularly. The 500,001 - 750,000 sq. ft. group rated portfolio utilization as its second top area of measurement (65%); facilities operating costs and service partner execution and performance tied for third (57%). Service partner execution and performance also rated highly among those who manage portfolios of 750,001 sq. ft. or more. Measuring occupancy costs also received a high rating among with those who provide outsourced services, who rated it as the #2 area they measure. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Outsourced FM Portfolio utilization 25% 43% 65% 27% 45% 35% 18% Occupancy costs 17% 43% 35% 40% 39% 45% 27% Allocation & chargebacks 12% 24% 30% 27% 34% 15% 15% Leasing 65% 95% 87% 87% 84% 80% 13% Facilities operating costs 35% 52% 57% 67% 66% 75% 35% Work orders completed on time 16% 19% 39% 33% 32% 25% 24% Service partner execution and performance 36% 29% 57% 40% 55% 45% 17% Limited Resources, Accurate & Timely Information, Maintenance of Assets, and Aligning with Others Challenge Today's FM Professionals The top two challenges for respondents with 750,001 -1 million sq. ft. or less—and for those who provide outsourced FM services—are the maintenance of building assets, and limited staff and resources. Those in the 750,000 sq. ft. group are challenged by accurate, timely information for reporting and alignment with other departments and corporate goals. Those who manage 1 million sq. ft. and above also rated maintenance of building assets as a top challenge, but they pointed to staffing and resources and accurate, timely information for reporting as their other leading challenges. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Outsourced FM M&A /growth 11% 10% 17% 40% 11% 20% 7% Staff/resources 41% 71% 65% 27% 57% 40% 18% Managing multiple service partner relationships 11% 24% 35% 40% 23% 15% 11% Maintenance of building assets 56% 57% 70% 27% 75% 85% 17% Accurate, timely information for reporting 20% 33% 30% 87% 34% 50% 19% Alignment w/ other depts, corporate goals 39% 48% 52% 67% 45% 45% 16% Other 1% 0% 0% 33% 0% 5% 3% Online Solutions Help Improve Operations The largest percentage of respondents believes that an online solution would help or has helped to improve operations in project scheduling. All respondents who work within an organization believe online solutions have a major impact in task execution, managing service partners, managing change processes, planning and forecasting, scenario planning, space utilization, financial reporting and integrating facilities and real estate information. Respondents rated the importance of automation in key workplace task areas on a scale from 1 - 5 with 1 being not at all and 5 being absolutely necessary. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Project scheduling and task execution 3.7 3.8 3.5 3.1 3.7 3.5 Managing projects with service partners 3.1 3.7 3.5 3.1 3.5 3.2 Managing Move / Add / Change Processes 3.1 3.3 3.7 3.0 3.3 3.2 Space planning and forecasting 3.3 3.4 3.5 3.4 3.6 3.2 Scenario planning for moves and relocations 3.1 3.1 3.5 3.5 3.2 2.9 Analysis of leases and real estate 2.5 2.7 2.4 3.1 2.9 2.9 Space utilization reporting 3.3 3.4 3.6 3.4 3.6 3.1 Financial Reporting 3.7 3.1 3.7 3.6 4.2 3.5 Integrating facilities and real estate info 3.0 2.9 3.5 3.6 3.5 3.8 FM Professionals Would Use Automation for Plan Scenarios 34% of all respondents used CAD drawings to plan scenarios in their last move, and 27% all respondents, and 52% of those managing 500,000 - 750,000 sq. ft. portfolios would look to use automation. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Outsourced FM Yes, using in-house system 4% 0% 0% 13% 5% 0% 6% Yes, using commercial application 11% 0% 4% 7% 2% 5% 7% I would have used automation, but our system could not support our needs 16% 43% 52% 33% 39% 40% 3% We used CAD drawings 24% 43% 65% 40% 45% 40% 8% We used Microsoft Powerpoint, Excel or Word 23% 10% 30% 20% 43% 30% 12% Respondents have plans to implement new or additional software Those in charge of larger facilities rated the addition of maintenance software and facilities management software as their top priorities while those in charge of smaller facilities and providers of outsourced FM services pointed to the addition of facilities management software and, for the most part, maintenance software. While the numbers differed, all groups have plans to add software across the board. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Outsourced FM Maintenance 23% 10% 30% 20% 43% 30% 15% Project Mgmt 13% 14% 22% 7% 18% 15% 12% Facilities Management 28% 38% 39% 13% 34% 15% 20% CAFM 13% 24% 35% 20% 11% 20% 3% Move / Relocation 5% 5% 22% 7% 9% 0% 7% Lease / Admin. 4% 0% 9% 13% 11% 0% 6% Systems integration 4% 5% 13% 0% 7% 10% 12% Reporting 9% 10% 26% 13% 14% 20% 11% Other 12% 24% 13% 33% 14% 25% 8% Reducing Costs & Improving Operations are Top Priorities for FM Professionals Top priorities for all FM professionals are reducing maintenance costs, reducing occupancy costs, improving the quality of reporting and managing multiple facilities or clients. 100,000- 250,000 250,001- 500,000 500,001- 750,000 751,000- 1M 1M - 5M 5M+ Reducing Maintenance Costs 3.6 3.8 3.9 3.9 3.9 4.3 Reducing Occupancy Costs 3.1 3.0 3.1 2.5 3.5 3.1 Improving the quality of reporting 3.4 3.3 3.5 3.9 3.7 3.8 Improving the space utilization 3.2 3.3 3.8 3.5 3.5 2.6 Managing multiple facilities or clients 3.0 3.4 3.6 4.0 3.5 3.5 Managing a network of partners 2.7 2.9 2.6 2.6 2.8 2.9 On-demand (online) delivery vs. installed software 2.2 2.0 3.2 2.2 2.1 2.3 Ability to pilot or trial a solution before buying 3.2 3.3 3.3 3.2 3.1 3.7 Other 1.0 CenterStone`s Web-based integrated workplace management solutions include the comprehensive, integrated, easy-to-use CAFM and CMMS software, e-CenterOne, to help manage corporate facilities, assets and services efficiently and improve workplace execution. For more information about CenterStone and e-CenterOne, see the CenterStone ad on FMLink or go directly to the CenterStone site.