IFMA Atlanta Chapter March 15, 2006

1. Atlanta Corporate Headquarters Benchmarking GroupBenchmark This! Elevating the Value of Your Facilities Department with a Benchmarking Consortium IFMA Atlanta ChapterMarch 15, 2006

2. Presenters Mitch Rabil Director of Corporate Projects, Turner Broadcasting System A founding member of the ACHQBMG Jim Rice Vice President, HOK Advance Strategies Lead Facilitator

3. Content • Overview • Dealing with the Fundamentals • Elevating the Role of the Facility Executive • Dealing with a Climate of Extraordinary Change • Integrating with Other Core Support Services • Corporate Responsibility • Assessing the Group’s Value • Facilitating the Group • Q&A

4. Overview

5. Purpose To collect and discuss benchmarking and performance data, best practices and other issues relating to the delivery and costs of facility management services. Benchmarking is an ongoing search for best practices toward achieving superior performance and continuous improvement.

6. Background “The group started out focused on benchmarking data; it’s grown to be so much more” • Established in 1996 by Atlanta metro area Facility/RE executives • To obtain better information on the management and operations of facilities and real estate • HOK Advance Strategies facilitates and manages meetings • Information kept confidential • Bi-monthly meetings hosted by member companies • Facility tour often included

7. Member Companies 1. The Coca-Cola Company 2. The Home Depot 3. The Hewlett-Packard Company 4. Georgia Power Company 5. InterContinental Hotels Group 6. United Parcel Service 7. Turner Broadcasting System 8. Delta Air Lines, Inc.a 9. BellSouth Corporationa 10. AGL Resourcesa 11. Equifaxa a. Former members

8. Membership Criteria • Membership by invitation • Corporate headquarters (or similar) • Located in Atlanta Metro area • 500+ employees • Commitment to • Attend & contribute at meetings • Provide data & complete surveys • Participate in presentations / case studies • Non-competitors • Confidentiality of data • Annual membership fee

9. Hallmark Study: FM Operations • Conducted 5 surveys to date • 1995 • 1996 • 1998 • 2000 • 2003 • Baseline Metrics • Space utilization summary • Cost/rsf, cost/occupant • Facility-related costs • Facilities staff & services • Facility related contract services • Maintenance & operations service delivery

10. Hallmark Study: FM Operations Maintenance & Operations Service Delivery: Averages Space Utilization Facility Related Costs ($/RSF)

11. Dealing with the Fundamentals

12. Construction Costs Architect: TVS Architect: Keating Mann Jernigan Rotett Architecture Architect: Heery

13. Parking Deck Construction Costs $/Parking Space Best-in-Class: $3,805 / parking space

14. Space Standards Office & Workstation Sizes Historical Space Standards

15. Managing Energy Usage & Costs Energy Use Index (EUI) Why is there a spike in gas use?

16. Our Gas Bill Was How Much?!? “In completing the energy survey, we discovered we were being double-billed for gas!”

17. UPS’s Success with Energy Management “The study encouraged us to set up a Global Energy Management Program - load shedding alone saved $200,000 in 1999-2000.” Group Conducted Study Presented Findings Implemented Energy Management Program Played Back Program & Results to Group Ray decides to develop a Global Energy Management Program UPS added the goal of reducing annual energy costs/consumption by 5% to their balanced scorecard

18. Elevating the Role of the Facility Executive

19. Burden Computing Utilities Depreciation Other Facility Other Maintenance Space Salary People vs. Real Estate Companies spend 10 to 20 times more on people than on all real estate and facilities expenditures “If we don’t get the people thing right, we lose it; it is the most important thing in all our business” Jack Welch Former Chairman, General Electric

20. Facilities as a Strategic Tool • Helping to meet business challenges: • Support mission and performance goals • Optimize deployment of resources • Respond quickly to change • Support people • Improve attraction and retention • Enhance brand/image

21. Business Strategists Business Partners Dealmakers Controllers Taskmasters Problem- Solving Strategic Holistic Technical Analytic Developing New Competencies • Business process knowledge • Strategic thinking and planning • Strong analytical capabilities • Relationship-building skills • Ability to negotiate • Listening and communication skills • Interdisciplinary team management skills

22. Walking in Senior Leadership’s Shoes for a Day • Round table discussion with: Rick Kowaleski • InterContinental Hotels Group • Senior VP, Americas Finance & Business Support • Key points: • Communication at all levels • Branding Yourself & Your Department • Key Metrics and Benchmarks • Find a Champion “The group has helped me present ideas and persuade management.”

23. Building a Business Case • Understanding the business • Linking facilities/workplace to business objectives • Defining anticipated results • Making the case to Senior Leadership “How does the Core Message benefit the audience?” “What do I want my audience to do and how do I convince them to do it?” Business Objectives Challenges / Opportunities Alternatives for Achieving Objectives How FM Strategy can Support Results

24. Dealing with a Climate of Extraordinary Change

25. Elevating the Role of Facility Executives by … Helping Facility Managers deal with a climate of extraordinary change Nature of Work World Events Employee Expectations Technology Demographics Economy Natural Disasters Employee Confidence

26. The Disaster that Never Happened Strategies, best practices and related issues concerning the Y2K bug as it relates to facilities and operations

27. Business Continuity & Disaster Preparedness Who has ownership? Who developed? Who maintains and updates? Who tests?

28. Responding to Change • Shortly after 9/11, we addressed Security and Business Continuity / Disaster Preparedness • Practicing business continuity / disaster plans • Communicating with all staff • Securing mailroom and delivery areas • Visitor parking lots • Providing in-house vs. outsourced security staff • Tracking staff • Maintaining critical ops

29. Katrina: CNN Didn’t Miss a Beat • As a result of the Business Continuity & Disaster Preparedness Topic • Turner Properties was ready and contributed to having their reporters back on the air in record time

30. Integrating with OtherCore Support Services

31. Process & Tools People Place Leveraging & Collaborating for Success • Leveraging resources and expertise • Aligning goals and expectations • Building relationships • Bringing in peers • Planning and responding as a team

32. CAFM & FMIS Systems

33. Why Create a New System? A single missing bill led to the creation of a best-in-class CAFM system What’s the heck is going on down there? I didn’t get my Amex bill!

34. Best-In-Class Integrated CAFM System I.T. Human Resources Hiring Manager/Security Web Forms Peoplesoft Remedy CONCERT CONSUMERS Archibus/FM DSX Archibus Web Central Security Properties

35. Corporate Responsibility

36. Redefining Corporations’ Role • Redefining corporate assets • Not just providing space but providing sustainable space • Responding to increased customer and employee awareness of social and environmental issues • Being accountable to the next generation

37. Georgia Power Company applied for and won the BOMA Earth Award based on information gathered while doing the Sustainable Facility Management Survey Georgia Power Company’s Earth Award “In completing the group’s Sustainable Facility Management Survey, I realized how much Georgia Power was doing towards sustainability. We applied for and won the award based on information I had already pulled together for the group.”

38. Alternative Transportation Programs • BellSouth: Clean Air Campaign Leader • The Coca-Cola Company: Clean Air Campaign Champion • Georgia Power Company: Numerous awards for its SmartRide Program; Clean Air Campaign Champion • Hewlett-Packard: Perimeter Go Smart Commuting Award • The Home Depot: Commuter Connections Carpooling • TBS: Pace Setter Award; Clean Air Campaign Founder • UPS: Commuter Rewards Program; Clean Air Campaign Champion

39. Assessing the Group’s Value

40. Benefits • Goal setting and performance assessment • Valuable information about HQ facilities operations within a local area • Understanding of how other companies excel • Increased exposure and credibility with executive management, business unit leaders and other core support service peers • Discussion of details behind data • Historical data collection / trends • Best practices / lessons learned • Social interaction & networking “One of the best things is the networking that we’ve established and the ability to pick up the phone and call another member”

41. Success Factors • Maintaining a sense of humor • Commitment and participation by company members • Established relationships and trust that encourage open dialogue • Topic sponsors • Facilitation and management by outside group • Consistency in • Members - both company and individuals • Schedule, process and meeting format • Relevant topics that produce meaningful results “Commitment and participation are key to getting value”

42. Challenges • Relevance of topics to all members • Making the time to contribute, participate and attend meetings • Changing business environment • Making “apples to apples” data comparisons • Collecting data from other departments (i.e., finance, I.T.) • Maintaining momentum… “Trying to make the time; I get out of it what I put into it. I benefit by attending but not as much as when I contribute.”

43. 2002 Assessment – Current Situation “The group is great and serves a valuable purpose…I appreciate the trusted relationships developed and the lack of solicitation” “I now have to wear two hats – one for facilities management and one for construction” “Our organization is changing and I’m not sure what my role or responsibilities will be over the next few months” “My biggest challenge is having enough time to complete surveys and attend meetings” “I have fewer resources and more projects” “I need a lobotomy” “We’re highly committed to the group and see nothing but benefits”

44. 2002 Assessment – Refinements “Consider bringing in more specialists but avoid sales pitches ” “Things have changed over the last 6 years, let’s re-tool to meet our current and future needs” “Meeting day, time and format should remain…the consistency works, we’re trained and there’s no surprises” “The roundtable discussions have been beneficial” “The data gathering exercises have been extremely valuable but, for the next year or so, turn the data collection exercises down” “Less surveys and more therapy”

45. 2002 Assessment Conclusion The consensus was that the group is of great value and should continue to meet with some minor re-tooling.

46. Facilitating the Group

47. Typical Annual Process

48. Meeting Formats • Typically 3–4 hour meetings • Initial 30 minutes provided for social interaction and networking – very important to members • Typical schedule / content • Presentation and discussion of survey results • Roundtable discussions • Member company presentations • Guest speakers • Facility tour • “Hot topic” • Follow-on meeting preparation

49. Secured Web Site “There is a wealth of knowledge on the website” Data Repository Contacts Home Page

50. Survey Examples Zoomerang Excel