How a Facility Executive Can Increase Their Budget
Shrinking Capital Budgets are a trend that many facility managers are facing. It is difficult to get a “yes” from senior management, even though there may be a leaky roof that needs to be fixed. Facility managers understand that it is not about how much money is available, it is making sure money is available when needed. In order for a facility manager to have his budget increase in the future, they need to show that they are adding value to the organization today. The question is how?
The best way to add value to the company and deliver measurable results is to improve how a facility operates. Improving efficiency is something that can be measured and the savings can be built into the next year’s budget. One way to achieve savings and show measurable ROI is by moving to LED lighting systems. Saving energy means saving money-both in the present and in the future. LED lighting systems have proven ROI and the results can be seen in the power bill immediately. If a facility manager’s recommendation starts saving 25%-30% off the annual power bill, that is measurable money saved, and their budget is sure to increase in the future based on the savings.
When approaching the CEO or CFO, you want to remember the 4 P’s, Professional, Practical, Proof and Perspective. The presentation should be easy to navigate, include measurable data, benchmarks and include real world statistics. You also want to include their language. This includes ROI, Payback Period, Total Cost of Ownership and Net Present Value. The first place to start would be to get a free energy audit of your facilities. Once you have this data, you would be able to solve the other key performance indicators the executives would want to know. Energy audits offer a beneficial way to examine energy needs and measure their costs against the return on investment for all proposed improvements. Below are some helpful articles that should help you get the ball rolling after your audit. For your FREE ENERGY AUDIT, call Accurate Technologies Inc. at 813-623-2481 or enter your information online at http://www.accuratetechinc.com .
– Steven Williams