Property / Facility Management
We recruit full-time, part-time, portfolio and interim CFOs and FDs who specialise in property and facility management. Call us on 020 3287 9501. FD Capital is the leading specialist in CFO and FD recruitment and is based at Great Portland Street, London. Property and facility management is one of our specialisms for financial executive recruitment.
What is a Property / Facility Management CFO?
Property and facility management CFOs need a specific portfolio of skills and experience to function with a customer-facing company and manage the impact it has on the company’s financial planning and forward-thinking strategy.
A property management CFO will have to consider the customer experience in a way other CFOs won’t have to. Their financial strategy must account for the company’s need to maintain its image and value for customers, including its brick-and-mortar presence.
They’ll take proactive steps in different ways from other CFOs, including overseeing corporate budgeting to ensure that there is a justifiable return on capital and investing in preventive maintenance to enhance customer satisfaction. Consumer behaviour must also be analysed differently using separate forecasting and data to streamline budgeting and ensure the right cost measures are in place.
Our property and facility management CFOs are digital natives who are leveraging the latest technology to streamline corporate budgeting and financial planning. Investing in technology solutions and automation enables today’s CFOs to increase financial transparency and reduce costs.
Specialist facility management CFOs face the additional challenge of balancing the known versus unknown aspects of their corporate budgeting. They’ll have to factor in unknown costs that could appear at any time to negatively impact the company’s cash flow, alongside preparing for planned property improvements.
Customer Experience
CFOs who operate within property and facility management face several unique challenges, including maintaining customer experience at a satisfactory level. Facilities that are poorly maintained have a negative impact on revenue and dilute the customer experience, as well as brand perception.
A property management CFO will have to ensure that facilities have the necessary funding to maintain their condition, appearance, and cleanliness. This budgeting should also consider the need to update technology and interior decorating to prevent the property from appearing dated.
Preventive Maintenance
A facility management CFO will view preventive maintenance as a proactive step that positively impacts the company’s long-term finances. The CFO will use data and forecasting, alongside competitor analysis, to determine the return on such investments.
Preventive maintenance is a win-win strategy for property management CFOs as it protects assets, improves reliability, reduces downtime, and minimises disruption to services.
Known v. Unknown Budgeting
Budgeting and future planning must consider lifecycle costs. New property developments should consider material, maintenance, and replacement costs in the budget.
The main challenge a facility management CFO will face is balancing the known with the unknown. Certain costs, such as preventive maintenance and contract monthly costs, are easy to account for.
Unknown costs could appear at any time as the result of property damage or technology failure. Property management CFOs will have to create a ‘best scenario’ budget while accounting for unknown costs through forecasting.
How Property and Facility Management CFOs are Evolving
The role of facility management CFOs is evolving. Companies should no longer view their CFOs are number crunchers who exist solely to oversee financial systems. CFOs are strategic thinkers who can think outside the box to identify potential investments to boost growth and achieve the company’s long-term goals.
Technology-Focused CFOs
Facility management CFOs seeking to future-proof their company are investing in technology for property management solutions. Leveraging technology can reduce operating costs and optimise the company’s assets and resources. CFOs will integrate their facility management throughout the network to optimise efficiency and navigate cost-of-operations problems.
Data-Driven Digital Natives
Data is king for facility management CFOs. They’ll integrate an asset management system that enables line-item information for accurate reporting and maintenance recording. Data is a vital component in ensuring capital assets management and accurate budgeting, including also ensuring regulatory compliance.
Our talent pool of CFOs includes digital natives who can leverage technology to manage the company’s expenses and ensure accurate resource allocation.
Forecasting and KPIs
Facility management CFOs have a separate set of forecasting data and KPIs that they’ll have to monitor alongside traditional financial indicators. These specific KPIs include:
- Work Order Response Time
CFOs within the property management sphere will track work order response time to access the average response time for finding, reporting, and completing a work order. This data will enable CFOs to forecast the time needed for critical repairs and incorporate it into their financial planning.
- Energy Use Per Asset
Property management CFOs will also want to track the energy used per asset to identify any potential malfunctions and allow for proactive planning. This historical data will allow for CFOs to account for scheduled repairs to reduce unexpected costs and service closures. Tracking energy use per asset allows CFOs to identify where there is a sudden increase that may suggest a failure.
- Planned v. Reactive Maintenance Ratio
Facility management CFOs will also track planned maintenance versus reactive maintenance by percentage. This ratio will enable CFOs to track the amount the company spends on scheduled maintenance versus unknown on-demand maintenance costs. Most property management CFOs will strive for at least 50% of total maintenance to be planned within their budget.
- Actual Facilities Budget v. Cost
Financial visibility within a company can be increased by gathering actual facilities costs versus budget data. Utilising this metric can have a positive impact on customers’ perceptions and track repair and maintenance costs in line with the corporate budget. CFOs should strive to provide monthly updates on their data with actionable steps.
- Deferred Maintenance Backlog
CFOs will also track any backlog of deferred maintenance and work orders to determine what aspects of the business may require more resources. This data will feed into future resource allocations to reduce unexpected costs in the future.
- Average Task Repair Time
Another metric utilised by facility management CFOs is tracking the average repair time. Tracking these time frames will enable the company to determine how customers will be affected and put mitigating plans in place. Having historic data to use to predict how long a repair will take enables CFOs and the company at large to avoid negative customer experiences.
Leveraging Technology as a Property Management CFO
Property management CFOs are digital natives leveraging technology to streamline the company’s finances and utilise real-time and historic data to minimise disruption. Their responsibility also includes engaging with stakeholders and cooperating with every department within their organisation, particularly on an operational level.
Our digital native CFOs will invest in facility management software to give them real-time data insights to inform the decision-making process and minimise service disruption for customers.
There are various ways that a property management CFO can utilise technology to boost customer satisfaction and encourage growth.
- Asset Management
It’s the responsibility of the CFO to have oversight of the company’s financial health. Asset management tracks all the company’s investments, including its assets. CFOs leading on growth strategy will invest in asset management to ensure that assets are being developed effectively.
- Space Management
Real estate is one of the highest expenses for property management CFOs to track. Investing in space management software will enable CFOs to track property usage and ensure the company is getting the most out of its investment. Space management also enables better forecasting by tracking past and present usage.
- Compliance
Regulatory compliance is one issue that every CFO must be across. Their fiduciary responsibility means they must ensure the company remains in compliance. Investing in facility management software means that the CFO can track performance and activity to ensure all regulatory compliance is met.
- Workforce Tracking
CFOs can also utilise technology to oversee employee costs, one of the highest expenses any facility management CFO will manage. Workforce tracking will provide insights into the company’s human capital and enable planning for future investment. This data is crucial for CFOs to make their year-end reporting and to ensure accurate budgeting for the future.
Growing Your Company with a Property and Facility Management CFO
Property and facility companies seeking to expand need an innovative CFO on board who can build financial credibility and develop a growth strategy. On the flip side, a CFO may also be brought in to develop a survival strategy and change a company’s fortune, especially in the face of rising costs.
- Accelerating Company Growth
Forecasting and strategy are two of the key responsibilities of a property management CFO. They are actively investing in AI and automation to expand their data resources to provide real-time insights.
A well-positioned CFO with access to real-time and historic data will make the company more efficient and leaner, enabling growth acceleration. The financial systems and network technology that a CFO puts in place will identify potential areas of underperformance, including property assets and other tools.
A facility management CFO is the CEO’s second-in-command, providing the financial planning to enable company growth planning. They’re a vital planner in growth strategies, particularly if a merger and acquisition are being considered or a fundraising cycle is proposed.
Small and medium companies within property and facility management will typically recruit a CFO when they are experiencing rapid growth or preparing to expand their business. This appointment should be done proactively to give a CFO time to conduct internal audits and make any necessary overhauls to streamline operations and financial systems.
- Building financial credibility
A property management company will want to recruit a CFO before embarking on fundraising or refinancing efforts. Most financial institutions and private investors will request that the company has a CFO on board – or will agree to recruit one – prior to investing
Investors view property management CFOs as a ‘safe pair of hands’ who can act as a bridge between them and the company C-suite. They rely on CFOs to offer them a high-level perspective on the company’s finances and to not be afraid to challenge the status quo.
The relationship that a facility management CFO can nurture with banks will typically make it easier for the company to access loans and additional funds on better terms as they’ll have more financial credibility. The credibility that a CFO brings to the table is invaluable for property and facility-based companies seeking to grow or restructure.
- Leading Mergers and Acquisitions
A company will also want to recruit a facility management CFO when they’re preparing for a merger and acquisition – regardless of which side of the transaction they’re on. This appointment is particularly vital if complicated assets are being exchanged.
Your CFO will prepare your company’s accounts before the M&A, ensuring that you’re getting the best valuation for the company and preparing for the transition period as the two organisations merge. The CFOs involved will ensure that all regulatory requirements are met and oversee the risk management of the transaction.
CFO will ensure that the companies synergy match and that the M&A is successful through to the future.
- Survival Strategy
CFOs are vital for property and facility-based companies in need of a survival strategy. An interim or full-time CFO will cover all the scenarios and possible outcomes to manage the company’s finances, including liquidity management. They’ll account for internal and external risks within their turnaround strategy, including industry-specific challenges.
CFOs will ensure that the company maintains access to short-term funding to protect the company’s cash flow. The relationships that a CFO develops with financial institutions and industry leaders can give them access to better repayment terms and other mechanisms, including invoice payments.
Part of a CFO’s risk management strategy will be to account for factors such as non-payment and changing consumer behaviour.
Recruit Your Tech CFO or FD Today
FD Capital specialise in recruiting property and facility management CFOs and FDs who can unlock your company’s potential. We offer both traditional recruitment services and CFO headhunting services, tailoring the recruitment process to fit the requirements of your organisation.
FD Capital connects companies with senior financial executives throughout the UK and beyond. Start the process of recruiting a CFO or FD with property and facility management skills by contacting our team at recruitment@fdcapital.co.uk or 020 3287 9501.
