By Ameeta Soni, Chief Marketing Officer, VFA, Inc.
Turning an organization’s strategic facilities plan, which often has a five- to ten-year horizon, into an actionable annual budget can be challenging. Few organizations are fortunate enough to be able to fund all of the capital requirements they have identified. So the process of prioritization begins! This is step four in the process of facilities capital planning and management.
Organizations must create consistent criteria for evaluating each project, in line with strategic objectives, and follow a consistent process for applying those criteria. Statistical ranking methods, such as pair-wise comparisons, can be used to facilitate the process. After each capital request is enumerated individually, all requests for a funding source can be ranked by score.
When organizations have a basis for making informed decisions about project prioritization and capital budget allocation, they are less vulnerable to emergency failures. Emergency repair projects typically result in hefty premiums for labor, rushed shipments, unplanned one-off purchases, and loss of productivity.
How are you prioritizing facility projects?