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Should Facility Executives Try to Sell a Productivity Pay Off?

Productivity, return on investment   September 17, 2008




I’m Ed Sullivan, editor of Building Operating Management magazine. Today’s topic is the question of whether productivity gains can help justify facility investments.

Common sense says that better indoor environmental quality will help improve productivity. An office that is quieter, more comfortable, and better lit should make it easier for employees to work at least a bit more efficiently. And that fact should go a long way in justifying facility investments.

But top management is invariably skeptical about claims for increased productivity. One way to address that doubt would be with research about the effects of facility improvement on productivity. Many studies have claimed to prove that facility improvements lead to productivity gains, but taken as a whole that body of research has significant flaws. Some studies depended entirely on subjective indicators. In other cases, it’s impossible to rule out other, non-facility factors that could account for any gains in productivity.

It’s generally best not to rely on productivity gains as a justification for facility investments. Such claims won’t likely persuade top management and putting too much weight on them may even detract from a facility executive’s credibility.

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