Flevy Management Insights Case Study
Stadium Facilities Optimization for a Premier Sports Franchise


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Facility Management to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A leading sports franchise faced operational inefficiencies due to increased attendance and outdated facility management practices, resulting in inflated maintenance costs and underutilized space. By modernizing its facility management, the franchise achieved a 15% reduction in operational costs and an 18% improvement in fan experience, highlighting the importance of Strategic Planning and Change Management in driving operational success.

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Consider this scenario: A leading sports franchise is facing operational inefficiencies within its stadium facilities management.

The organization has seen a substantial increase in attendance and events hosted, which has put a strain on existing infrastructure and staff. Despite increased revenues, profits are not scaling accordingly due to inflated maintenance costs, outdated facility management technologies, and underutilized space. The franchise aims to modernize its facility management practices to enhance the fan experience, optimize resource usage, and improve its bottom line.



Given the organization's situation, the preliminary hypothesis might suggest that the root causes of the business challenge could be attributed to outdated facility management systems that are not equipped to handle increased scale and complexity, as well as a possible lack of integrated strategic planning for facilities optimization. Another hypothesis could be that the organization's facility utilization is suboptimal, leading to inefficiencies and missed opportunities for revenue generation.

Strategic Analysis and Execution Methodology

The resolution of these issues can be approached through a comprehensive 5-phase Facility Management methodology, drawing on best practices from industry leaders. This systematic process will not only provide clarity and direction but also ensure that the optimization efforts are sustainable and aligned with the organization's strategic objectives.

  1. Facility Audit and Needs Assessment:
    • Review current facility management practices and systems.
    • Assess space utilization and identify underperforming areas.
    • Conduct stakeholder interviews to gather qualitative insights.
    • Establish baseline metrics for comparison post-implementation.
  2. Strategic Planning:
    • Develop a Strategic Facility Plan aligning with organizational goals.
    • Identify technology upgrades for facility management systems.
    • Outline a roadmap for space optimization and revenue enhancement.
    • Create interim deliverables such as a project charter and a high-level action plan.
  3. Process Optimization:
    • Analyze current facility management workflows for bottlenecks.
    • Introduce lean management techniques to improve efficiency.
    • Design and implement standardized operating procedures.
    • Develop training programs for staff on new processes.
  4. Technology Implementation:
    • Select and deploy a modern Facility Management Information System (FMIS).
    • Integrate IoT devices for real-time monitoring and maintenance.
    • Automate routine tasks to free up staff for higher-value activities.
    • Monitor technology adoption and resolve any user resistance issues.
  5. Performance Management and Continuous Improvement:
    • Establish KPIs to measure facility management performance.
    • Implement a feedback loop for ongoing process refinement.
    • Conduct regular reviews to ensure alignment with strategic goals.
    • Document lessons learned and update best practices accordingly.

For effective implementation, take a look at these Facility Management best practices:

Facilities Management (FM): 5 Major Growth Drivers (31-slide PowerPoint deck)
ISO 41001:2018 (Facility Management) Awareness Training (57-slide PowerPoint deck)
Facilities Management (FM): Top 10 Trends (22-slide PowerPoint deck)
Digital Facilities Management (FM) (23-slide PowerPoint deck)
Facilities Management Doctrine (11-page PDF document)
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Facility Management Implementation Challenges & Considerations

When discussing the methodology with executives, they often inquire about the tangible benefits and ROI of such initiatives. It is essential to articulate that strategic facility management can lead to significant cost savings, estimated by the International Facility Management Association (IFMA) to be between 10-25% of total operational costs. Furthermore, executives are keen to understand the impact on customer experience. A well-managed facility directly contributes to customer satisfaction and loyalty, which is critical for a sports franchise.

Expected business outcomes include reduced operational costs, increased revenue from optimized space usage, and enhanced fan experience. These outcomes are quantified by tracking improvements in metrics such as cost per square foot and revenue per event day.

Potential implementation challenges include resistance to change from staff, integration issues with legacy systems, and ensuring consistent application of new processes across all facilities. Each challenge requires a tailored approach, including change management strategies, thorough system compatibility assessments, and robust training programs.

Facility Management KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets managed.
     – Peter Drucker

  • Cost Savings Percentage: Indicates the efficiency gains from optimized facility management.
  • Revenue per Event Day: Reflects the effectiveness of space utilization strategies.
  • Fan Experience Score: Measures the qualitative impact on attendees.

These KPIs provide insights into both the financial and operational performance of the facility management strategies, enabling data-driven decisions for continuous improvement.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it becomes evident that employee engagement is a critical factor for success. According to McKinsey & Company, organizations with high levels of employee engagement report 22% higher productivity. Therefore, involving staff in the transformation journey and providing adequate training and support leads to better adoption of new processes and technologies.

Another insight is the importance of data in driving strategic facility management decisions. Gartner highlights that data-driven organizations are 23 times more likely to acquire customers. By leveraging FMIS and IoT data, facility managers can make informed decisions to enhance operational efficiency and customer experiences.

Facility Management Deliverables

  • Facility Management Strategic Plan (PDF)
  • Space Optimization Roadmap (PPT)
  • FMIS Implementation Guide (PDF)
  • Operational Efficiency Report (Excel)
  • Staff Training and Change Management Playbook (PDF)

Explore more Facility Management deliverables

Facility Management Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Facility Management. These resources below were developed by management consulting firms and Facility Management subject matter experts.

Facility Management Case Studies

Notable organizations such as the Yankee Stadium have leveraged advanced facility management solutions to streamline operations and enhance fan experiences. By adopting smart technologies and data analytics, they have reported increased operational efficiency and higher fan satisfaction ratings.

Another example is the AT&T Stadium, home of the Dallas Cowboys, where a comprehensive facility management strategy has led to a significant reduction in energy costs and improved sustainability practices, showcasing the financial and environmental benefits of strategic facility management.

Explore additional related case studies

Aligning Facility Management with Overall Business Strategy

Effective facility management is not an isolated function; it must be intricately aligned with the overall business strategy to drive value. Executives often scrutinize the alignment between operational changes and strategic objectives. In this regard, facility management should serve as a strategic enabler, contributing to broader business goals such as customer satisfaction, revenue growth, and brand reputation. The Facility Management Association reports that a strategic approach to facility management can contribute to a 20% increase in employee productivity, directly influencing the organization's performance.

To ensure this alignment, facility managers are encouraged to participate in strategic planning sessions and maintain open communication channels with executive leadership. By doing so, facility management becomes a key component in the execution of the company's vision, rather than a mere support function. This integration enables the facility management team to anticipate and respond to shifts in the business landscape more effectively, ensuring that the physical environment evolves in tandem with the company's strategic direction.

Adopting Sustainable Practices in Facility Management

Sustainability in facility management is not only an ethical imperative but also a business one. Executives are acutely aware of the growing consumer and regulatory pressures to adopt eco-friendly practices. According to a study by PwC, 76% of consumers will discontinue relationships with companies that neglect sustainable practices. Therefore, incorporating sustainability into facility management can significantly enhance the organization's public image and compliance with environmental regulations, while also reducing long-term operational costs.

Implementing green technologies, optimizing energy consumption, and reducing waste are key initiatives that should be considered. Investment in sustainable facilities can also lead to cost savings; for example, energy-efficient lighting and HVAC systems can reduce energy costs by up to 40%. Executives should prioritize these initiatives not just for cost savings but for the long-term viability and social responsibility of the organization.

Technological Innovation in Facility Management

Technological innovation is a cornerstone of modern facility management. Executives often seek clarity on how the latest technologies, such as IoT, AI, and predictive analytics, can be harnessed to improve facility operations. For instance, IoT devices can monitor conditions in real-time, allowing for proactive maintenance, which can reduce downtime by up to 30%, according to Deloitte. Similarly, AI can optimize energy usage, leading to significant cost reductions and operational efficiency.

However, integrating new technologies requires careful planning and investment. It is crucial to evaluate the technology's compatibility with existing systems and its scalability. Executives should consider the total cost of ownership and the expected return on investment when evaluating technological upgrades. Moreover, investing in employee training to ensure effective use of the new technology is essential for realizing its full potential.

Measuring the Impact of Facility Management Initiatives

Measuring the impact of facility management initiatives is critical for validating the investment and guiding future decisions. Executives will seek to understand how the success of facility management strategies is quantified and how these metrics align with the company's performance indicators. Key metrics such as operational cost savings, space utilization efficiency, and facility-related employee productivity provide tangible evidence of the value generated by facility management initiatives.

According to BCG, companies that measure the performance of their facility management activities can achieve up to a 25% increase in asset utilization. By regularly reviewing these metrics, executives can ensure that facility management initiatives remain focused on delivering strategic value and continuous improvement. It also allows for benchmarking against industry standards, providing an external perspective on the organization's facility management performance.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced operational costs by 15% through process optimization and technology implementation, leading to significant cost savings as estimated by the International Facility Management Association (IFMA).
  • Increased revenue per event day by 12% through space optimization strategies, aligning with the expected business outcome of enhanced fan experience and revenue generation.
  • Improved fan experience score by 18%, directly contributing to customer satisfaction and loyalty, as highlighted by the importance of a well-managed facility in the sports franchise industry.
  • Enhanced employee productivity by 20% through strategic facility management, aligning with the Facility Management Association's report on the impact of facility management on employee productivity.

The overall results of the initiative have been successful in achieving the intended cost savings and revenue generation targets. The implementation effectively addressed the challenges of outdated facility management systems and suboptimal space utilization, resulting in tangible improvements in operational costs and revenue per event day. However, the resistance to change from staff and integration issues with legacy systems presented unexpected hurdles. To enhance the outcomes, a more robust change management strategy and thorough system compatibility assessments could have been beneficial.

Looking ahead, the organization should consider further investment in sustainable practices and technological innovation within facility management. Adopting green technologies and leveraging IoT, AI, and predictive analytics can lead to long-term cost savings and operational efficiency. Additionally, a more comprehensive change management approach and thorough system compatibility assessments could have mitigated the unexpected challenges faced during implementation.

For the next phase, the organization should focus on adopting sustainable practices in facility management and leveraging technological innovation to further optimize operational costs and enhance the fan experience. This includes investing in green technologies, evaluating the compatibility and scalability of new technologies, and implementing a robust change management strategy to ensure effective adoption by staff.

Source: Facility Management Overhaul for AgriTech Firm in North America, Flevy Management Insights, 2024

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