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Weigh the Cost of Efforts to Add Value
Facility Management, Cost Control, Top Management March 6, 2009
Facility executives should bear costs in mind when evaluating whether a given strategy will really add value. For example, companies too focused on growth can get burned at the bottom line by taking on too much space. Similarly, a business unit seeking to reduce the risk of a disaster halting operations may lobby for a more expensive infrastructure than the business case warrants.
In situations like those, the facility executive may have to argue against a business unit that wants to spend money on real estate or facility upgrades. That can mean walking a tightrope. After all, successful facility executives often make their mark by demonstrating that they can add value to the business units. But that doesn’t mean agreeing to every request that comes from a business unit. In the long term, the facility executive will develop more credibility – and more clout – by making cost-effectiveness a test of plans to add value.