How facility managers can navigate today’s challenges for tomorrow’s success.

In today’s data-driven world, benchmarking has transcended its role as a periodic competitive analysis tool to become a critical function that can significantly impact an organization’s success. However, as facility managers understand, acquiring meaningful comparative data presents significant challenges.

The modern business landscape is an intricate web of interconnected systems, digital transformations, and rapidly evolving market dynamics. Offering more than just a snapshot of where a company stands, today’s benchmarking serves as both compass and map, helping organizations chart their course through increasingly complex regulatory waters.

Benchmarking provides a baseline comparison of performance metrics and, as with any data analysis undertaking, quality is the silent partner of success. The adage, “Garbage in, garbage out,” applies here in full force and partnering with knowledgeable and reputable professionals from the start can make a huge difference.

Delivering results

Effective benchmarking for commercial property energy use transcends simple measurement to deliver actionable insights that drive strategic decision-making and catalyze meaningful organizational transformation — it’s the difference between collecting data points and crafting a narrative that illuminates the path to excellence. Where basic benchmarking might tell managers where they stand, effective benchmarking reveals not just position but potential, combining rigorous analysis with strategic foresight to transform raw data into a roadmap for sustainable competitive advantage.

Benchmarking is just the first step because let’s face it: You can’t improve what you don’t measure. The quality of data presents another formidable challenge.

JPB Private Equity and Real Estate (JPB), an alternative asset manager dedicated to private equity and real estate investments across the Mid-Atlantic and Southeast U.S., was looking to upgrade a property in Hanover, Maryland. While they had data, and plenty of it, our MD Energy Advisors team had to first answer the most important question: how much of that data can we trust?

Effective benchmarking can be strewn with obstacles that would give even the most seasoned data analyst pause. Data silos, those notorious organizational barriers, continue to plague companies of all sizes. While the term is commonplace, the reality is that when one team collects data but doesn’t properly report or share it, decisionmakers can be overlooking valuable insights trapped in departmental bubbles. It’s like trying to complete a puzzle without all the pieces – or more accurately – as though some of the pieces are locked in one room and while others are locked in another. Each team has a portion of the whole picture, but no one gets the full solution.

Results in action

Inconsistent collection methods and questionable data integrity can transform what should be a precise science into something more akin to educated guesswork. MD Energy Advisors directed the upgrade project that resulted in JPB’s Arundel Mills Corporate Park-Building 2 upgrades achieving an Energy Star score of 79, which means the building is more energy efficient than 79 percent of similar properties nationwide.

“MD Energy Advisors’ partnership was invaluable throughout this process,” says Mike Kalinock of JPB Partners (ownership affiliate). “The team’s knowledge of the process and guidance from start to finish was integral to us receiving this recognition and, more importantly, made a drastic difference in the energy impact of Arundel Mills Corporate Park-Building 2.”

Yet perhaps the most daunting challenge lies in keeping pace with change.

Technology’s relentless march forward means that today’s benchmarks might become tomorrow’s outdated metrics. We’re seeing it now with BEPS deadlines approaching June 1 in the state of Maryland – environmental and energy benchmarking is a non-negotiable for many. Add to this the growing concerns around data privacy and security, and you have a perfect storm of complications that can make effective benchmarking seem like an insurmountable task.

But here’s where things get interesting: these challenges, while significant, also present opportunities for innovation and advancement. Forward-thinking organizations are discovering that the very process of overcoming these obstacles can lead to breakthrough improvements in their operations, a positive impact on the bottom line as well as our environment.

By analyzing trends and identifying emerging opportunities through careful benchmarking, organizations can adapt with remarkable agility. This isn’t just about survival – it’s about thriving in an environment where change is the only constant. It’s about an opportunity to make better choices that support operations and lessen the environmental impact. Imagine making changes that positively impact a facility’s bottom line and the environment.

Leading the way

Looking ahead, the commercial property management teams that will lead their industries will be those that master not just the collection of data, but also its interpretation and application. They’ll be the ones who understand that benchmarking is not merely about measuring up to competitors, but about achieving governmentally mandated standards aimed at creating a brighter future for everyone.

The key to success lies in adopting a holistic approach to energy benchmarking – one that acknowledges its challenges while embracing its potential for driving innovation and improvement. This means investing in robust data collection and analysis systems, partnering with experts in the arena of benchmarking and modification of systems to align with operational success, fostering a culture of continuous improvement, and maintaining an unwavering commitment to data integrity and energy efficiencies.

Ultimately, while the challenges of effective benchmarking are real and significant, they pale in comparison to the potential benefits of getting it right. As we move forward in an increasingly data-driven world, the ability to accurately benchmark energy use today, extrapolate future performance, and act on those insights will separate industry leaders from the followers. The question isn’t whether to embrace comprehensive benchmarking for your commercial property or not, but rather how quickly and effectively organizations can overcome its challenges to reap its rewards.

Jason Schwartzberg is President and Co-Founder of MD Energy Advisors (MDEA), a pioneer in energy cost reduction and financial solutions for commercial property owners. 

The post "The Art and Science of Benchmarking " appeared first on Building Operating & Management