Get the Green Light to Go Greener

Get the Green Light to Go Greener

April 18, 2012 Program

Presenter: Bob Sawhill, CFM

Bob Sawhill, CFM Solutions Consultant, EBUSINESS STRATEGIES

35 years in Workplace Management: • Strategic Facility Planning, Industrial Engineering, Facility Project Management • Workplace Management Technology Experience:

– Integrated Workplace Solutions Project Manager, Consultant – IT Program Manager – RE & Workplace Services – Software Product Manager, Strategist

Professional Association Involvement: • Certified Facility Manager (CFM) • IFMA - Chapter President, Information Technology Council leadership • Open Standards Consortium for Real Estate (OSCRE) Workgroups • Instructor & Guest Lecturer at Cal State University’s FM Program Course

Past Employers: Hewlett-Packard, IBM-TRIRIGA, Tektronix, Lockheed, Memorex, USAA

About EBUSINESS STRATEGIES

IFMA’s 2011 Top 10 Trends & Outlooks

1. Sustainability 2. Complex Building Technology 3. Economic Recession & the Aging Building 4. Preparedness 5. Quantity and Complexity of FM Data 6. Finding Top Talent 7. Elevating The FM Profession 8. Evolving Skill Set and Business Acumen 9. Enhancing Workplace Productivity 10. Changing Workplace

Learning Objectives

• Understand the value of performance measurement and management to detect issues, identify opportunities, and foster data-driven decisions that align with sustainability objectives.

• Discover analysis techniques and methodologies to assess environmental opportunities, optimize scarce resources, and deliver greener sustainability solutions.

• Learn, through case study examples, how best practices and technology enablement can streamline sustainability processes and get the decision-makers’ green light.

Situation - Facilities are the problem

49% Buildings Consume More Energy Than Any Other Sector

77% Buildings consume of U.S. electricity

47% Largest Contributor to U.S. CO2 Emissions

And … they are the > 30% enterprise spend

Source: Architecture 2030 with data from the US Energy Information Administration http://architecture2030.org/the_problem/buildings_problem_why

Aberdeen Group Report: “Real Estate and Facility Lifecycle Management, The three keys to success: Visibility, Visibility, Visibility” – June 2007

Challenges

Process silos Lack of resources Disparate Systems

Emergencies

Internal politics

Balancing Act: Resources Scope Time

Juggling Act: Cost Reduction Capital Investment Environment Changing Workforce Outsourcing Aging Buildings Technology Advances

Data Overload

Solutions

Measure & Manage

• Reporting & Benchmarking • Data Collection • Performance Management

Optimize Opportunities

• Identify Opportunities • Analyze & Assess • Portfolio Project Management

Integrate Solutions

• High-Performance Workplace • Intelligent Buildings • Leading Practices & Solutions

MEASURE & MANAGE


Reporting & Benchmarking

• What data is needed? – Begin with the end in mind; outputs determine inputs – What’s important to measure?

• How is data normalized for comparisons? – apples to apples

• What industry standards/protocols are applicable?

• How is data transformed into actionable insights?

• Need data-driven decisions (not decibel-driven decisions)

Corporate Social Responsibility (CSR)

Greenhouse Gas Protocol – Scope 1, 2, 3 • Scope 1: Direct (minimum)

– onsite fuel combustion – company owned vehicles

• Scope 2: Indirect (minimum) – Purchased (consumption) of electricity, heat/cooling, steam

• Scope 3 Indirect (often) – Waste disposal – Business travel (transportation), Employee commute

Source: WRI – World Resources Institute

Green Building Certification

System Buildings Origin

BREEAM 110,000+ United Kingdom

LEED 7,400+ United States

Green Globes 1,400+ Canada

Green Star 220+ Australia

EPA’s EnergyStar

• EnergyStar Portfolio Manager • With data integration capabilities

Benchmarking – Normalizing Data

• Climate variation – ASHRAE Degree heat/cool days

• Region • Building Type • Industry Type • Time period & duration • Standard measures

– Area (gross) – Unit of Measure (UOM)

Studies - Crossing the Sustainability Chasm

“Crossing the sustainability chasm: strategies and tactics to achieve sustainability goals” IBM Software thought leadership whitepaper, presented by J.Clark at IFMA WWP 2011 https://www14.software.ibm.com/webapp/iwm/web/signup.do?source=swg-spsm-tiv-am-rp&S_PKG=Crossing-the-sustainability-chasm

Data Collection

• What are the data sources? – Who, what, where, when

• Is it the right data and accurate?

• How is it gathered?

• How can it be streamlined?

Case Study – Oil & Gas Company

• Project Stage: design complete, construction in-progress

• TRIRIGA Real Estate Environmental Sustainability (TREES) – Data loading: Energy, Water, Waste, Emissions, Transportation… – Carbon Calculator: Greenhouse Gas Emissions (GHG) – LEED Certification Management (also possible BREEAM, GreenStar) – EnergyStar integration – TREES Workplace Performance Management

• Integrated Workplace Management System (IWMS)

– Primarily a leading practices and process standardization initiative – IBM-TRIRIGA application, with configurations for leading practices

• Functional Areas: – RE & Portfolio Management – Facilities, Space and Move Management – Project Management – Maintenance & Operations

Process Improvement & Leading Practices

Proprietary document excerpt, Copyright © 2010, 2011 eBusiness Strategies LLC

Streamlining Data Collection


Data Collection – Offline Utility

Managing Green Building Certifications


TREES Enhancements for LEED–EBOM

LEED Checklist Status Tracking


Track LEED Points & Cost


LEED Data Entry & Reference Docs


Reports – Manage LEED Certification


Performance Management

• How do we align to corporate objectives? – CRE/FM strategies & initiatives – Individual’s performance goals – Accountability, ownership

• How do we analyze the overwhelming data?

• How do we manage performance?

Workplace Performance Management

Manage Workplace Operations

Analyze Workplace Performance

Act Improve, Transform

Align Workplace Strategies

Sets objectives

Reports, alerts, issues

Prioritizes improvements

Optimize goals Workplace

Performance Management

Aligning CRE/FM to Business Strategy

Adapted from, Anna-Liisa Lindholm et al., “A Framework for Identifying and Measuring Value Added by Corporate Real Estate”, FMLink, 2006

Cascade Objectives Down to Drive Accountability

Maintenance Tech, Energy Program, Space Planner

Facility/Maintenance Managers

Workplace Executive

Energy Intensity/ Occupant

Energy Intensity / Area

(Building Efficiency)

Energy Use Breakdown: Electricity, Gas, Fuel Oil, Renewable…

Area / Occupant

(Space Utilization)

Occupancy/Vacancy Seating Density Sharing Ratios (mobility)

Dimensional Analysis (drill-down, roll-up, slice & dice): by Geography, Sites, Buildings, … by Building Type, Lease vs. Owned…

by sub-meter by/across Time

by utility company by Cost

Balanced Scorecard

Traditional Corporate (Kaplan & Norton) • Financial • Customer • Internal Business Processes • Learning and Growth

Workplace Performance Management (WPM) • Financial • Customer • Operational • Portfolio • Environmental

Case Study - Sustainability Metrics • KPI’s for Environmental

– Energy Rating Certification (EnergyStar) – Green Building Certification Rating (LEED) – Water Use Intensity (GSF) – Solid Waste Recovery (%) – Tenant Survey Ratings

• Comfort/IEQ, Sustainability Involvement

• Analysis Metrics – TREES Score-based version of metrics of above – Energy Use – Water Use – Solid Waste Use – Energy Cost per Area ($/sf) – Water Cost per Area ($/sf) – Energy Use Intensity (per Occupant) – Water Use Intensity (per Occupant) – Energy Use Intensity (GSF/Degree -day) – GHG Emissions (Carbon) Intensity (GSF)

Technology Enabled – Case Study

Align - Role-based Scorecard

Scorecard with navigation

Analyze to Detect, Identify, Pin-point…

Slice & Dice By who, what,

where

Detect Issues Poor & marginal

performance

Drill into Detail Responses on a

survey

OPTIMIZE OPPORTUNITIES

• Portfolio Project Management • Identify Opportunities • Analyze & Assess

Portfolio Project Management (PPM)

• Align portfolio to strategic business goals • Allocate resources to the right projects • Govern with data-driven decisions • Understand value contribution

ContinuousBusiness

Cycle

OngoingProject

Management

Iterative Project Portfolio

ManagementProcessBusiness

StrategiesProjects

Portfolio Optimization

Portfolio Realignment

Performance Measurement

Decision Gate Evaluation

Identify Opportunities / Projects

Align Opportunities: • Business Objectives • Strategic Initiatives • Program Management • Operating Levels • Condition Assessment • Environmental

Assessment • Energy Audits • Environmental

Compliance

Diagram source: ProjectConnections.com

Managing the Project Pipeline

Diagram source: ProjectConnections.com

PPM Project Funnel and Pipeline – Align and Optimize

WPM - Identify Opportunities

Identify Opportunities

• Condition Assessment: deferred maintenance

• Environmental Assessment / Audit

• Maintenance inspections: day to day discovery

• Capital Project Planning

Sustainability Data-Driven Decisions

Opportunity Analysis • Financial Return

– ROI, NPV, IRR – Payback Period

• Energy Savings • Energy Star Rating • Carbon Footprint • LEED Cost/Point

Compare Options - Side by Side

Analyze Best Opportunities

Launch the Right Programs

Low

High

Low High

Good-to-Go high value, low risk

Retarget Rethink, or cancel

Postpone

Risk – ability to execute

Busi

ness

Val

ue

mitigate risk

focu

s sco

pe

Adapted from: R. Napier, “The Role of Governance and Program Management in the CIO Office, HP CIO Summit, 2003

Balance LEED Targets & Funding


INTEGRATE SOLUTIONS


Case Study - Leading Practices

Integrated Workplace Management Systems (IWMS)

People role-centric perspective & change management

Process leading practices & cross-functional governance

Technology enabling tools to deliver integrated solutions

Integrating Sustainability Processes… • Maintenance & Operations:

– Green Cleaning procedures and products – Track and populate Energy Star rating information for assets and

buildings – Tenant surveys for LEED-EBOM IEQ points – Include inspections and readings for IAQ and LEED-EBOM IEQ needs

• Monitoring & Measuring ventilation, make-up air, • Hot &Cold call tracking

• Preventive Maintenance and Inspections – Commissioning, re-commission, retro-commission – Refrigerant inspections, tracking – Readings measurements related to LEED criteria, energy performance – Cooling tower water consumption, chemicals – Track asset retirement and disposition of assets (landfill, recycle, reuse) – Track and Report O&M PM’s related to efficient energy use

Integrating Sustainability Processes

• Facility Condition Assessment (FCA) – Use FCA for Environmental Sustainability related Assessments & Audits

• Energy Audits, IAQ/IEQ Assessments • Environmental regulatory compliance assessments

• Portfolio Project Management – Opportunity Assessments & Analysis, Pipeline Management

• Real Estate:

– Green Leases; Clauses, Conditions, … – Green Lease Reporting

• Strategic Facility Planning

– Optimize space utilization to reduce carbon footprint – Forward looking indicators to improve building and utilization

Strategic Facility Planning – Forward View

High-Performance Workplace

• Smart devices • Smart buildings • Pervasive connectivity • Anywhere computing

• Info Management • Knowledge/social sharing • Service Management • Orchestration

• Energy efficient • Water efficient • Indoor quality • Optimal occupancy

• Management support • Knowledge processes • Capability Maturity • Operational Excellence

Engaged Workforce

Sustainable Facilities

Intelligent Infra-

structure

Technology Enablers

Adapted/improved concepts from High –performance Workplace by Saibal Das Chowdhury

Smart Buildings

http://www.ibm.com/smarterplanet/us/en/green_buildings/overview/index.html

Where do you stand?

• Can you measure how green you are? • Can you get decisions made, or are you stuck? • Are you ready to take green to the next level?

Measure & Manage


Optimize Opportunities

• Identify Opportunities • Analyze & Assess • Portfolio Project Management

Integrate Solutions


Get the green light

Go greener

Green Buildings Get Results: REDUCE

• Drive green performance • Plan & prioritize the right projects • Deliver a high-performance workplace

Source: adapted slide from US Green Building Council

Water

Use

40%

Solid

Waste

70%

Energy

Use

37%

CO2

Emissions

36%

Get the Green Light to Go Greener

April 18, 2012 Program

Bob Sawhill, CFM [email protected] 530.305.2843 AskEbiz.com