Finance and Business is one of the eleven competency areas as identified by the International Facility Management Association’s global job task analyses.

What is Finance and Business?

• Finance is the use, interpretation and management of information related to the financial operation of the facility. This includes the development, use and interpretation of financial data in any form, e.g., reports, spreadsheets, computer printouts, budgets, proformas, cost statements, ratios and more.
• Business is the use, interpretation and management of documents related to the administration and management of contracts, service providers and leases, including lease agreements, business cases, charge backs and procurement policies and procedures.

Why is Finance and Business important?

• Money is needed to invest in staff, technology, buildings, structures, interiors, exteriors and grounds.
• Money is also needed to operate and maintain these areas.
• Business is the central set of activities, integrated with finance, that provides value to customers.

How the Finance and Business competency helps the Facility Manager

• Plan and propose facility-related investments.
• Oversee facility assets.
• Manage facility operations, maintenance and repair costs.
• Participate in the organization’s finance and business decisions.
• Report on department and/or project budget versus expenditures.
• Evaluate the monetary impact of large purchases.
• Consider life cycle and total cost of ownership.
• Enhance procurement management including sourcing, inventory, reorder point control and bargaining capabilities.
• Administer and manage the finance associated with contracts.

Examples

1. Develop the facility’s budget requirements. Examples ofbudget items include:
   1. Operational expenses.
   2. Capital expenses.
   3. Asset planning.
   4. Staff payroll.
   5. Training.
   6. Travel.
2. Administer a vendor contract. The payment terms of the vendor contract must meet the organization’s usual payment terms.
3. Understand the business terms of the facility’s lease agreement. Use a good real estate attorney to review the lease agreement and give legal recommendations.

The Competency Areas

All the 11 competency areas are:

• Technology.
• Real Estate and Property Management.
• Quality.
• Human Factors.
• Emergency Preparedness and Business Continuity.
• Communication.
• Environmental Stewardship and Sustainability.
• Leadership and Strategy.
• Finance and Business.
• Project Management.
• Operations and Maintenance.

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