Show ROI To Secure A Bigger Budget

Good afternoon, and welcome to the show ROI to secure a bigger budget webinar. Glad you've all joined us for the span plastic discussion. First, I have just a few housekeeping items to cover. The phone lines will be muted during today's session. Please submit your questions through the Q and A feature at the bottom right of your screen at any time during the session. Our speaker will answer your questions at the end of the session. We also have some great related content available from the box in the upper right corner. If you don't see either of those boxes, you can open them from the icons at the very bottom of your screen. So now let's go ahead and get started Today, we'll hear from Chris Day Junis, enterprise solutions consultant here at Brightley. Chris has been with Brightley for nine years and works extensively with our government and education clients across our different platforms. Welcome Chris, the floor is yours. Thank you, Tracy. And I'm gonna go ahead and do a volume check. Tracy, if you could let me know and chat, if you can hear me, and if I sound okay. Sounds great. Thank you very much. Alright. It's nice to be with all of you here today. I was looking through the attendees. I actually recognized a few of the different communities organizations joining us here today. So I'm excited to dive into, this conversation with you here over the next half hour, forty five minutes or so. As Tracy mentioned, my name is Chris DeJunis, one of the solution consultants here at rightly. Before we dive too much, into the topic of ROI and different strategies for asset investment and asset management. Let's go ahead and get some baseline for where we are at today. So we'll go ahead and get started with this poll question here. With one being Hey, what is asset management? And the last option being, hey, we actually have a tool. We're actively tracking total cost of ownership and doing cost analysis on our equipment. So I'll give you a few seconds here. Answer that, and, we can look at the results and, move on in a few. Oh, come on. Nobody's gonna answer the poll question. We're not gonna have any interaction going on here today. I refuse to believe that. I'll give you a break on this one, but you better believe we're certainly gonna come back to some more questions as we go here. So One of the things that we wanna discuss here, let's before we get into what we consider the foundation of asset management in and how you can start showing an ROI on it. Let's start by talking about some of the real world challenges that you and your team are dealing with on a daily basis. And I know this isn't groundbreaking stuff here. Right? This isn't anything that you don't know. But I bring these up primarily because I have thousands of conversations over the course of years working here with Riley, with people just like yourselves in the exact same roles that you're in? These items in these challenges come up on a regular basis, and there's really a trend that comes from this. When you're losing people on a regular basis, Right? And if you look at that little arrow below the first one, we really lost a substantial amount of our workforce, especially the more veteran workforce. Right? Between the ages of sixty five and seventy four. Federal Reserve Bank of Saint Louis actually did a study on and showed that that particular group of, of the, that age group is where we lost the most amount of workers over the past few years. Right? So we call that a loss of tribal knowledge. Right? The people that knew what we owned or maybe how to fix things or when the last time service was performed on our equipment and our assets. Those people are walking out the door. Right? So when you combine that with a lack of good data. Right? We I call this facts over feelings. Right? When we don't have good data to prove or defy the budget we're asking for, we're stuck with gut feelings. And when we just what we just talked about, right, the loss of tribal knowledge, Those gut feelings, those are the ones that are walking out the door. Those are the people we turn to when we needed to make decisions and didn't have the data to back it up. Right. So now we're in this position where it's tough to hire and recruit new talent. And I'm not here to even suggest we're gonna be able to hire our way out of this labor shortage that's just increasing these challenges you have to deal with. But what I am here to suggest is that there's technology out here that can certainly help bridge the gap. It's beyond a trend. Right? It's becoming the norm that we have to get more done with less. Technology is a great way to look at that. Right? It really does become a opportunity when we say, okay, how can we standardize and provide actual technology and tools for our new workforce that we need to crude, because the guys and gals who knew everything for years, we don't have their feelings and their knowledge anymore. Right? So this leads to inefficiency. It leads to a lack of communication amongst crews and even worse when we have to report up to leadership. Right? All things you know and live daily. Right? So communication, lack of efficiency, two of the biggest conversation starters that we have when I have these conversations weekly, daily, with people in your shoes. Right? So let's do a little psychological experiment here. I told you there's gonna be more participation. Don't worry. I'm not asking you to say anything out loud. But I'm gonna give you five options here. I would like everybody to go ahead and pick five different squares. There's twenty five total. Right? So let's say these are twenty five different assets or pieces of that we're responsible for. We only have the money to replace five. Alright. Now picture yourself sitting in a room with different elected officials, decision makers, boards, upper management in some cases. Right? We need to pick on we need to pick and decide upon five of these replacements. Now, I picked five. Hopefully, you did. I'm gonna look at the Q and A and see if you picked the same five as me, I'd love for you to say something to throw a message in there. So get you some sort of reward. Right? Because the odds of you picking the same five as me, Not very good. There's over three million different options that we could all hear come up with based off of the number of choices that we have. Right. Let that sink in because those are the decisions that you're having to make. And as we just described in those challenges, The people who did have that tribal knowledge, who you did have some common ground with and understood what was going on, they're leaving. So now we have to figure out a way amongst all of these different options, agendas, biases, to make decisions that are gonna help where we're at within our organization. Right? So we have to have a different way of doing things. And what we propose here is a term you've seen, I'm sure, plenty throughout. But we call it strategic asset management. You'll also see asset investment planning, enterprise asset management. But the way we look at this and I've had this conversation, again, I can the attendees of fear and attendance we've had this discussion. We look at this from a strategic asset management a standpoint. Right? How can we move beyond that run to fail type of model? How can we look at the long term? And I know this is tough. We have elected officials in four to five year terms. Right? We have elections all of the time. That could potentially change our outlook and the agenda. But what we're suggesting here is a more strategic Why can't we look out to a hundred years when we're planning our asset replacements? And not just replacement, but what treatment options should we be sittering along the way. Right? How do we move beyond just condition and cost? So this is gonna be the foundation of the discussion over the next few minutes. I have some slides to lay out some concepts for you. I have some strategies and suggestions that have helped been formed, helped be formed, by our clients in our different, user conferences. But before we dive into that, I'm gonna lay out the three pillars that we consider Really, the foundation for strategic asset management. We're gonna start today in the asset register that central column. Right? We're gonna talk about what you own. When you know what you own, then you can move to the left. Right? Then you can start actually looking and saying, alright, what sort of preventative maintenance programs do we have in place? Do we even have any in place for our most critical sets. Are we tracking our reactive work that we're doing to these assets so that we can look at our annual maintenance cost? Right. But you can't do any of that if you don't know what you own. And then finally, we'll move to the right side of things because that same asset register that you're tying your day to day preventative maintenance and reactive work to, that same asset register can be used for life cycle modeling. Beyond just repair versus replace, what treatments should we be looking at? Are there minor or major rehabilitations along the way that if we budget for We could have a larger return on investment out of this piece of equipment. Right? In the grand scheme of things, we trying to change and shift the discussion that we have with elected officials and leadership because they don't live in your world every day. Right? And you probably don't want them to. So you need a very good way, a concise way to tell the story about what your teams are doing, and then ultimately using life cycle modeling to show the impact that the dollars spent are going to have on the community. Right? So what you own? It sounds boring. Right? This is the first step in being able to actually track and show ROI or being able to show the impact. And there's a lot of different ways that this could be tracked right now. This is why we asked the question at the very beginning, you know, the ones that nobody wanted to answer. But this is why we ask the question of where you are in that asset management journey. Right? I talk to people day in, day out, and this is where we start. What do you own? Do you know what you own? Right? So when you think about this question, what do you own? How many of you this is the first place your mind went? Mark, I see you you did not pick the same. I appreciate your interaction. Let's keep it going. Right? So again, when we talk asset register, what do you own? And it's most simplified terms, this is what most people have access to. They have a spreadsheet. Maybe a different spreadsheet per location. Maybe a different spreadsheet for parks versus facilities versus roads. Right? So we call these silos. Very common for different silos. Of data to be floating around out there for what you own. And quite frankly, it's a good starting point. If you're tracking this and you do have spreadsheets, This is the type of thing you wanna start getting centralized and getting access to. Right? How do we go from taking a basic spreadsheet like this with something like, hey, here's the replacement cost when we think based off of manufacturer suggestions that should be replaced? We wanna move beyond this. Great starting point. But when I talk about an asset register, this is an example of what we offer within our tool. Some of you here are using it. Asset Essentials. Some of you are probably using a different work order and asset management but the concept remains the same. If we can go from beyond the spreadsheet and start centralizing our different divisions or different departments, asset list in one place. It's gonna open up a lot of different avenues for you to start reporting from a more cost analysis standpoint. Right? ROI and showing the ROI of a PM program on a boiler, That's a far cry off if you don't have a centralized list, and you're tracking the labor and materials that go into that Now I know there's probably a few of you out there that are thinking, okay, we have this spreadsheet maybe you've even started to invest in software and start in trying to centralize, how do I get this built out? This is one of the most common questions we get on our webcast when we're having these discussions and we start getting into the benefits of showing ROI and cost analysis. People love it, but they wanna know how to get there. So I pulled this next slide, actually, from a presentation I did at our user conference earlier this year based off of feedback from our existing clients. Here's three different strategies for how to potentially go about getting the asset registered centralized and built out. Right? So first off, you need to find out where does that asset list live? Different divisions are gonna have different answers for this question, but we need to get it centralized. I'm gonna use asset essentials, our work order and asset management tool as an example. Obviously. But the point remains whether you're using our tool or someone else's. Right. We need to get this list centralized. If that means getting those spreadsheets and importing them in, That's a great first step. At least you have it centralized and in a place that you can now start reporting on as you add the correct data points. The second option I'm bringing up here is directly from one of our clients who shared this story with us during the user. Conference that we had. They have utilized the mobile app in our software, In order to have the staff build out the asset register themselves, right? They looked at it and said, Hey, leadership not going to give us funds to have somebody come do this, we need to come up with an approach. So what they did is they had largely a location based preventative maintenance program going on. The team would go to different buildings or facilities, they knew what pieces of equipment needed to be inspected or looked at, but it wasn't tied back to the piece of equipment. So at the end of the day, leadership really couldn't do any analysis outside of location based. They couldn't go all the way down to the piece of equipment. So that was their goal. So what they did is on those PM schedules, they built them into the mobile app. And the last step on that task list Add the asset to the register. So literally, on the spot, the team after completing their inspection was able pull out the app, check off their list, and then literally create an asset, take a picture of it, and add the basic nameplate information to the system on the spot. Just one more step on the PM. They only have to do it once. Once we have the equipment in the system, Now the PM is gonna be tied to the asset instead of just the location. Right? We know what we own. We need to start tying that work to it. Third option here, have a third party do it. Right? It sounds easy. That's because it is a resource discussion, guys, just like life, time versus money. You need to get this information centralized. If you don't have the resources to go out and capture it yourself, then there are options available for you to have something like a data collection service or a facility condition assessment. Right? A full on facility condition assessment? Should really contain the following items. You can look at the numbers. Right? Those are the systems that being captured in any good facility condition assessment. But look up above that in the talus, talusized words. Obviously, they're gonna get nameplate data and condition and value. It's these next ones here. Get a facility condition assessment that has a catalog of the industry standard, preventative, or planned maintenance that should be doing. I've seen success both ways, guys. When we think back to this slide here, I've seen our clients have success through all of these ways. This turnkey approach built into your asset management tool is gonna give you a leg up. On being able to report. You have to ask yourself, do you want your team building the system, or do you want the team using the system to get those reports that you need? Alright. So that's the asset register. Right? Our central column there. Excuse me one second. Now let's move to the left. We know what we own. Right? In our most basic terms, we know what we own. We've been talking about why that matters. Right? So from an operation side, being able to tie the PMs and the work orders that we're doing, back to the asset register. The whole concept here, and this I hear this day in, day out. We need to be more proactive. We're too reactive. Right? If I could have you raise your hands like you do in Zoom right now, I'd have you do so. How many times have you heard that? Or you're the one who's saying it. We need to be more proactive. Right? PMs are the first thing to fall off the side. Emergencys pop up, fires come up. We gotta put them out. Things happen. Those routine PM tasks are the first to go. Yeah. There's actually a term for this. Right? By no means, are you the only organization that lets these fall off to the side? This is called normalization of deviance. Alright? Gradual process. Do things a little differently because it's easier. There's an entire realm of psychology called human factors that dives into this. And there's a lot of different reasons for it. But at the end of the day, humans are predictably fallible. Right? And one of the easiest ways trust to cut corners is to make a task easier, or just not do it if something else is higher priority. So keep this in mind. We've got a few examples normalization of deviance, these next examples, I will admit, overly traumatic, and a severe extreme case. But we'll look at a smaller one too here. But one of the biggest examples of normalization of deviance actually comes from one of my favorite government organizations. If I were to say January nineteen eighty six, does anybody know where we're going with this? What example I'm about to pull up? Feel free to throw it in the questions if you do. Space Shuttle Challenger. Right? This is one of The most traumatic failures the organization certainly ever have, and there's a lot of reasons there's been report done on what caused this. But what should have been a wake up call for this prestigious organization, right, within American government, You know, they didn't learn a lot from it. There was a report. There was a lot of money spent. But what led to this particular issue. Right? O rings, cold temperature, burned through that led to something that should have never happened in the first place, was largely attributed to launch fever. People's inability to notice that minor things that have been done wrong previously that worked out could potentially cause problems in the future. A lot of bold statements were made. It's never gonna happen again. What happened seventeen years later. Right? Shuttle Columbia. This one is dramatically as far as a normalization of deviation. And it's actually appalling when you go back and look, what caused this accident was a piece of foam breaking off the shuttle and hitting the wing. This had happened dozens of times before this incident. This had actually been going on before the shuttle challenger at the initial accident, but it had never mattered. No one ever foresaw that these pieces of foam hitting the wing could cause a hole like you see on the right side there until it did. They went back and looked at film of all watches and literally found dozens of times this had occurred. It never caused a serious problem. They never thought it mattered. Right? Two dramatic examples tied to one agency in this case. But this happens day to day for us. We do this day in, day out. I can grab an example from my farm. Right? I've got an apple farm here up in the mountains right behind me. I've gotta mow the pasture on a regular basis. Huge tractor, big mower behind it. Every once in a while, the wheel gets stuck. Anyone familiar with tractors knows you start pulling one of those behind you with the wheel that's not rolling? You're gonna cause trenches in your land. So what do we do? We usually go hit it with a hammer. Get it straightened out. That's not what we're supposed to do. Swiss to undo the bolt, realign the axle, make sure everything is good to go. The hammer works. It's a lot quick tractor. Until the wheel breaks. Because I wasn't setting it back how I was supposed to. Now it's a thousand dollar expense in multiple days that we it to work. That is a is an example pretty reasonable to what happens with you guys. That normalization of deviance that I fell into. No big deal. Right? Until it was a big deal. That leads to what you see on the slide here what we call a run a fail approach. Very linear. Very linear. Right? One step isn't necessarily informing another as much as we're just moving down path to run to failure. You've all felt this feeling before, especially when we're looking at that spreadsheet we talked about earlier. Right? You can hop back to it. We're running everything to failure. All we have is this spreadsheet. We know what it's supposed to cost. But now we have unexpected occurrences that are popping up from our normalization of deviance. So we're not even getting the manufacturer suggested life out of this. Right. So let's go back to our core pillars here. The asset register what we own, the CMS side things. We've talked about tying preventative maintenance programs back to the asset, but what's the point? Right? We'd like to look at the CMS side here in a few core components. Step one is what most people here are probably doing already. Right? Reactive maintenance. You're tracking the basic work order. What's the status of it? Maybe we're tracking how long it was open for. Right? What we really wanna do is move beyond that into step two here. By having the asset register and tying our preventative maintenance back to it, we're talking about a few data points, everyone. We're talking about labor. Right? How long did it take to do the work? We can convert labor hours to labor cost with just wage information. So if we can track labor and materials on the PMs that we're doing in step two, and tie them back to the asset, all of the sudden, that opens up cost tracking for us. Now we can start getting into cost analysis and actually looking at things like total cost of ownership. Repair versus replace decisions. Are we extending life cycle on this PM tied back to an asset? Because if so, we should show the return on investment for that. We won't talk much about step four. That's kind of the missing piece when it comes to a lot of organizations, but the inventory control, the materials. Starting with labor, definitely the foundation, but if you can add materials into that over time, it's gonna make your reporting even more valuable and accurate. I'm gonna grab a drink here, look at some of our questions, see what we have. Mark, on top of it. I like it. So Ron, that's a that's a good question. I and for everybody, I'm looking at some of the questions that we've had come in here. We're gonna do it live. Best place to store treatment information for an asset. Quite frankly, it depends on the scope of question. And this is something I'd love to speak more with you about later. If you're talking about a treatment that was formed on an asset that you have an AE, I would create that as a work order or maybe even a larger project documenting the details of that treatment. Now, ultimately, you're asking the larger question that gets into life cycle modeling. The right pillar on that slide that we pulled up. We'll talk more about that treatment information as we go here. And again, we can certainly circle up after as well. So let's look at a basic example here. This is tied to PMs. Right? This is that return on investment philosophy that we've touched on a few times This is an example everyone knows, and it's been beaten to death, and you've seen plenty of times. I'll give you a second to read up on that. Basic scenario. Right? We buy a car. In one case, we do oil changes, and in other case, we don't. A lot of times this is reported out simply just as the additional expense. Right? If you look at the bottom here, ten year total, twenty five hundred, twenty thousand five hundred versus forty thousand. What's missing here when we look at this from almost a standard example standpoint? We're not looking at the average maintenance cost, your annual maintenance cost that you're doing. And that can come in the form of preventative maintenance as in this example, but also the reactive work. Those big ticket repairs that you have to do or major rehabilitations that you may not be taking it into account. And what I would like to suggest here and I don't want to offend anyone, obviously, but Leadership does not respond to these scenarios anymore. It goes back to what we talked about at the beginning. The loss tribal knowledge, the true understanding of why you're doing a preventative maintenance program. To hear an extends life cycle, that's great. Yep. That's a goal we should have. What I would like to suggest is that by tracking the annual preventative maintenance and annual reactive maintenance costs, You can actually start reporting that out in a language that they understand, especially as we're seeing different makeups with our elected boards and upper management. Wanna be able to show what the ROI of our PM program is. We need to change the mentality around this. It can't be something that gets pushed off to the back burner. As more and more of our at officials or business leaders and coming from environments outside of public works and utilities, facilities management, and so forth, we need to speak their language. This is why I've been harping on PMs and tying cost back to assets because if you can provide facts, not feelings, on what the ROI is on a PM tied to a big ticket chiller. Right? A rooftop unit. Now you're speaking their language. When you start tying your work orders back to your assets and document things like cost and material, It opens up numerous avenues and different types of trends you can start looking at. I know some of you here with us today are existing clients already for using asset essentials. These are different trends. That our dashboard that our dashboards look at for asset health. Right again, moving beyond the standard conversation of just looking at how many work orders do we do? Here's some different trends that are tied to it that our tool will take into account. Right? Non pm versus PM. Again, I'd love to see in the comment so the, the Q and A, how many people here are actually tracking the ratio of reactive work to preventative work that their organization does. Right. If you start tracking that and tie it back to the asset, we can show direct correlation with the number of PMs you're doing, decreasing the number of reactive work orders that you're doing. But if you're not tying it down to the asset level in the register, what you own, then it's impossible. These these trends, you can't measure what you're not tracking. Right? So the caveat, I'll throw up. You're a feast trends are this is getting your attention, and these are things you wanna start tracking. Some suggestions in the upper right there. You'll see the criteria. Obviously, the asset needs to be active. It needs to be in use. You wanna look at at least twelve months of work order data. Right? You're not looking for short term lips, you're looking for long term trends that can better inform that repair versus replace discussion. We'd like to have at least ten work orders in the time frame. And that may sound like a lot, but if you think about it, you're building your PMs. In most cases, it's a monthly or weekly PM. You're tying to the assets. So ten work orders in a twelve month time frame, that's not really that much when you start breaking it down. And again, guys, I know it it can seem overwhelming, but the whole idea here is we're trying to arm you with information to start changing the discussion. The conversations that we've been having with leadership to get budget Let's just call a spade to spade. They haven't been working because most of the communities and organizations I talked to are still under budget. Right? They're not they're not able to hit the numbers of what they're being asked to. Largely because they have no good record of what they've done years to inform that budget discussion. So I'm gonna share out an example with you here, actually, And I'll admit, we're using a new webcast tool here for this for the first time. So, hopefully, this works out. I may nominate Tracy to hop back in I'm gonna share out my screen and, hopefully, guys are gonna be able to see that with me. Tracy, are you able to see the dashboard that I just pulled up? Or Sam, anyone? Seeing the hold on. Let me see if this works. Yeah. Analytics dashboard. Yeah. I'm still seeing it up in the corner. There you go. That looks good. Got it. Yep. Alright. Perfect. So everyone, we've looked at I I like to call what we've been discussing, they're the ingredients. This is the end result if it's a cooking show. Right? This is what we're actually making. This is not a demo account. This is a live client dash board. We've changed the names and locations for their privacy. They've been using this tool for years. So what I've done, if you look in the upper left with me, I've drilled down to just look at their twenty twenty two annual report. So we're gonna look at their analytics dashboard. For last year. They're actually using this account for numerous divisions of public works and utilities, but because of our audience today, we can focus on facilities. And over the course of last year, these are all different ways we can start breaking out analytics and reports from what they accomplished. Two of the most basic reports that you can run-in analytics, right, location based or category based. This is probably where a lot of you are today. You may be able to drill down on expenses from an individual locations endpoint. In fact, you can see here, these are the different locations that this community manages within the account. In twenty twenty two, They spent two hundred and thirty seven dollar two hundred and thirty seven thousand dollars at this one facility. So when I select that facility, you can see here it breaks out the categories of work they did. And we can shift that to cost. All the team is doing is tracking their labor So by tying the labor back to the work order and the facility, they have a breakout on the maintenance cost for each different category of work that they performed. We're trying to get beyond this. This is nice to know and can give you some interesting context. What I'm proposing, though, by knowing our asset register and knowing what we own. By setting up our PM programs and tracking cost in the form of labor and materials, we can drill all the way down to the asset level. Right. Here is our ROI statistics that we can drill into. But what I wanna show you first and foremost is right here. By tracking the labor on their PMs in reactive work, they're reporting out to their elected officials exactly how much they spent on different pieces of equipment over the course of the year. So in this case right here, we're looking at a, just a ten chin center, grease trap. Over the course of twenty twenty two, they did three PMs on this asset for a cost of just over twenty five hundred dollars. We can do that for any piece of equipment that you put in the system. But this is that figure that I mentioned most people are mentioned missing earlier on. Annual maintenance cost. What went into it. Alright. So I'm gonna stop sharing here. If anyone has any questions right on the specific of how we can get to this or anything. Please, again, feel free to throw them in the Q and A. I'll take a second here and look at that before we get into the life cycle modeling side. And how we can move beyond just tracking PM cost and how we can get further into the showing the impact of dollar spent. Alright. So let's think back again to our original slide here What we've been using as really the the foundation of the discussion. We've touched on the register. We've looked at some some examples of why we wanna tie certain data points back to our PM programs into the register itself. Now we wanna look at how that can inform future decision Right? It's nice to be able to look at any asset and see what the service history says to have those digitized, centralized records showing us things like cost and project. But moving forward, we need to start making decisions on how we're gonna spend our funds. What is the financial strategy that we're going to? Move forward with. So the same asset register really needs to be informing that same discussion that you're having at a capital planning level. In this next slide here, think about assets in the life cycle this way. We're not recreating the wheel. I know a lot of you out there have probably been exposed to what's called the DF curve, right, the probability of failure versus failure is actually going to occur. I'm gonna put forth a much simpler explanation of that. You can think about the car. You can think about the mower on my tractor. You can think about the shuttle. You can think about any asset that you own or are responsible for in your professional or private life? This is how it ages. The curve may look slightly different depending on what we're talking about. But what we're seeing here is essentially the degradation of an asset from brand new to failure end of life. A lot of the clients that we work with that are getting into basic asset management judgment, they're just back to our linear approach, right, they're running to failure. They're not doing the PMs that they should. And if they are doing PMs, it's more of a cursory check or task list that's not tied back to the asset. So as things degrade, what happens? As it fails, now we have a capital expenditure. And unfortunately, a lot of times we have to go into emergency funds to get this money. Now, this is obvious not the only approach, but it's the approach because of normalization of deviance that many of us fall into. Let's look at it from a different perspective. Are assets aging? Right? We run it to failure, so we have our large expense. A more strategic approach allows us to be flexible and look into the different treatment options that we could take into account along the way. Instead of running it to failure, Are there major or minor rehabilitations that we could do along the way? Because if we do a rehabilitation when this ages out to a condition of c, let's call it a grade c. Right? Everybody's familiar with the grading scale. So over time, halfway through its life, there may be a minor rehabilitation that we can actually accomplish here, a treatment option per se. When that's completed, it's gonna bump the asset condition back up the scale. Right? So instead of being a c, now to be. Now, sure, we can't get it to be brand new again. But if we make this small investment here and we pay attention to the degradation, we're doing our PMs and looking at trends. If PMs are increasing, maybe we should actually move up. If we're having failed PMs, a regular basis, we may wanna look at moving up a major or minor rehabilitation. Right? Because at the end of the day, what is doing is buying us more time till that failure point. Think back to the thought exercise. I didn't see anyone in the comments who picked the same squares as me in our grid. So no prizes today, unfortunately. But now think about that same set of squares this way. These are the real world to positions that you're having to make. Are you gonna choose the same five as somebody else who's in the room? We have a new elected official who came in from the business community. Right? They have no experience with HVAC systems, exterior walls, pavement that they're now responsible for. So this is a much more realistic approach to what that conversation can look like. Right. So the idea here with our tool that we call capital predictor, right, it looks at life cycle modeling. We're not gonna get into the ingredients today, if we would if you'd like to have this discussion, this is what brightly keeps me around for us to dive into those ingredients details with you. So we can certainly set up additional conversations around any of the three pillars that we've discussed today. But for this life cycle modeling side of things. The context I'd like you to have is that I'm using a facility condition assessment as the foundation of data that we're gonna looking at. And we can talk more about that if you want to, but I feel like diving into this tool is a lot more impactful than just showing slides. So we're gonna do the same thing. We're gonna share this out. Tracy, I may nominate you again here. I'm gonna hit share. And once this catches up with me, Alright. I'm now sharing out predictor. Let me know when you see facilities or workspace there in the top. Alright. Looks like we're good to go. I'm still seeing the slides. Hold on one sec. Let me see. There we go. In for Sam. Perfect. This is why you keep the team around everyone. Right? Nobody does anything on their end. So, again, contact The back end data that has been fed into this modeling tool is a standard facility condition assessment. Nothing overly complex. Before we look at the chart, I'm gonna show you here that this particular organization they looked at numerous different financial strategies. Anything from two point one million dollars a year? To four point two million dollars a year, so on and so forth. So what this represents from a facility planning side of the equation, Right? The first one, that's only a one percent replacement value. So they're budgeting one percent of the replacement value of that facility as the budget for the year. And then it increases to two percent, three. Once you get into three and five, it opens up additional strategies. So let's just visualize this very quickly here first. The most basic example, they have funded or they have budgeted point one million dollars. As the capital plan for this facility over the next forty years. Now, there's probably a few of you that notice the issue with this, and I'll give you some context with what we're looking here. If you look with me to the very first dot, that first point, right? That's showing a score of three point nine eight. Basically, a score of four. Guys, look over here to the far right, state zero through end of life. Zero is brand new, six is end of life. If you throw those two out when we present this to leadership, Tell them to look at one through five as that grading scale a through f. Right? Think about the curve we looked at a through f. So now when we go back to our initial point, state four, essentially. That's a d. That's a d. That is easy for leadership to understand. When they had their condition assessment done on their equipment within the facility, it's not in good shape. So this is a forty year model. You can actually see the timeline across the bottom. The bars represent the dollar spend. You can see those big dollar amounts for year over year that I'm pointing out. Right? So, essentially, what they're saying is if you wanna target the facility to be in this shape, and you wanna get out of your backlog as quickly as possible, you need to find all of these dollars spend over the next five years. It's gonna increase the condition of your facility dramatically very quickly, but it's gonna cost. Right? That's the trade off in life. I don't know many organizations. I haven't worked with many where this is actually a feasible approach. So even if leadership wants to improve things, they need to understand the cost that's going to be associated with it. This is not very realistic. But since we have all of this data centralized in one place, We can refer back to the records that we have within the asset register. We can provide different financial strategies and show the impact that that financial strategy will have. Right? So guys, instead of two point one million, Let's look at six point two. This represents a two percent increase in their annual budget. Two percent. If they increase it two percent, Now look at the blue line. Notice on the front end, they no longer actually have to go find those funds because this is a realistic approach. What it's saying is, hey, if you don't have to have that dramatic climb out of your backlog, like in the first model, if you take it gradually, you can flatline your funding. You can flatline your capital planning for pretty much the next forty years. You can have a predictable amount that you invest. And over the next forty years, look at the blue dot. This is going to leave us in a better position. The facility will be in a better service state than when we surged all of that money to money to have a dramatic improvement. Now I understand this this example with limited context that we have here today can be quite a lot to throw at you. But the idea here is to show the return. What is the return that we're gonna get for the dollars that we spend today and year over year? We show that return in the form of the impact of the condition of the facility. Each of these different scenarios that we look at has a wealth of reports that are tied to it. So again, if this has caught your attention, this type of modeling looking at different financial strategies. These are all different reports and outputs that we could explore in more depth if we schedule a follow-up meeting. Right. How many of you can accurately show leadership what your backlog actually What projects, treatments, major and minor rehabilitations have you actually been able to complete? This is what strategic asset management is really all about. Being flexible enough to show what an increase or decrease of funds can do based off of the priorities that have been laid out for leadership and priorities for the community or organization as a whole. So we've covered a lot. Right? If we wanted to bring back up to the very beginning here, the three pillars. Right? This is your takeaway. Only you can define where you are at in this journey right now, and let the answer to where you are in the journey to tape where you go from here. If you need to focus on the asset register, we have a lot of strategies, partners, or techniques that can help with If it's the CMS side of things, even better. Right? And then, obviously, as it gets into the life cycle modeling, It becomes a more advanced discussion, but the outputs and what you can show leadership are some of the most impact full that I've seen from a capital planning standpoint when it comes to this market. So, again, everyone, my name is Chris De Junis. Really appreciate the time here today. I know we probably have some questions. I'm gonna pop those up, and we can look through those here. If you haven't asked anything or you're curious, please go ahead and put it in the box. If we don't get to it here over the next few minutes, we'll certainly follow-up with you. If you have any questions or wanna reach out, encourage you to do so. I love having these conversations. Where, I may not have to be talking to myself for a full hour. So if you'd like to interact, that would be great too. But I'll take a look at our questions and see what we have here. Yeah. Good question, Mark. Trade I may nominate you to speak up again because we were just talking about this. For future events, actually, we may be using this course mark to do another, another session similar to this through one of our partners, but it would be a very similar presentation. Tracy, do we have this recorded as well? Yeah. Yeah. This is being recorded, and everybody will receive an email within twenty hours linking to this recording. Also, what you're mentioning in August, we're gonna do a demo cast through facilities net, which will take this a little bit deeper into, the actual screenshots that Chris was sharing a little bit more in-depth technical And and, of course, we'll continue to do these webinars, throughout the year. Ashemar. And Ron will that's a I I see question there, Ron, if you're still with us. The executive dashboard, I think I know what talking about as far as this direct export to Excel, that's something we could follow-up with. We'll take a note here that you're asking about that specifically. So if Sam or anyone hasn't followed up, we may just need to take a look at some of the specifics there. But I want you to know I see that, and I'm not, we're not ring that question. And this is good. A lot of you did respond with the questions. I I appreciate that. It looks like some of you were tying your assets or tying work kind of at a cursory level back to the assets, but not in-depth. Looks like there's a lot of limitations out there with your responses on the software allows you to do. That's a common theme. Right? If you think back to the beginning, we have clients, I guess, This is a conversation I have on a daily basis. Clients who are doing basic work order tracking or prospects that are doing basic work order track that are trying to now go to the next level. And a lot of times, it's because leadership or new elected officials are starting to ask questions or ask for reports that their existing software does not let them get to. So if you'd like to see more about what I call the ingredients of how we can track the details on a work order tied to an asset. We could definitely have a follow-up related to that, so we'll reach out. Great. Alright, everyone. Well, that brings us close to the top of the hour here. So I will hang out for a few more minutes. If there's any questions that pop in the chat, I'll answer those. Otherwise, we'll follow-up get that recording information like Tracy mentioned. Genuinely appreciate your time today that you're interested enough to come listen to discussion. I hope we can have future discussions in which we can interact a little more, but I'll keep an eye out here for the next few minutes. I hope everyone has a great rest of your day. An even better weekend coming up. Thank you very much, Chris. Thank you all very much for joining us today. I'm gonna go ahead and end the webcast. I will be making sure you all get the link to the recording and the information for future webinars. Thanks again for joining us. Have a great day. Bradley.