Brilliant Blog

The attractiveness of smart buildings and the popularity of green buildings have been increasing steadily over the last six months or more, and we are even starting to see signs of convergence between the two universes. At some point there won’t even be a distinction--just remember you heard it here first.

Given all of this growing interest in the commercial buildings field, I thought it useful to share a few words of wisdom to the newly initiated. So whether you are a vendor looking to target and position your products; or an investor new to the space; or a policy maker looking to encourage more adoption of these solutions to help the environment, energy or both, here’s a couple of keys to successfully navigate the opportunity…

Understand whether your target industries are focused on success or survival

Industries hunkering in to survive tend to focus on those innovations that free up cash flow, or move things from operations expenses to capital or vice-versa, depending on what is in favor with their financial markets. Industries in success mode look more for differentiation around key success factors—customer experience, outcomes, productivity, etc. The good news is that Smart+Green building innovations can bring value in either situation, but play to the wrong message at your own peril.

Energy costs aren’t everything

Energy savings is often a central component to solutions and policy in this arena. Yet one health care executive shared with us recently that energy costs represent only 1% of his operating budget. So whether he was focused on survival or success, energy savings wouldn’t register as high on his radar screen as it might in another industry. Which leads us to our next point...

Know the purpose and the personality of the buildings you are targeting

It is important to understand both the purpose of the building and the building’s personality, or how it is used and managed to fulfill that purpose. Both of these have implications for what solutions will create value, and how to communicate their impact on things that matter to the building’s owners or users—finances, asset value, productivity, outcomes, risks, image, etc. Sounds obvious, but all too often this need to pick the right solutions and then communicate benefits that are meaningful to different audiences is ignored by both vendors and policymakers.

Leadership in Environmental and Energy Design (LEED) is a tool, not the goal

The value of the USBGC’s LEED in moving the green portion of the universe forward has been incredible, but we run the risk of getting myopic. LEED doesn’t address many of the issues that are important to building owners and managers when they make design decisions. It doesn’t yet deal with retrofit buildings, nor is it focused in many verticals who are working on building advances. So let’s keep moving LEED forward, but remember that our ultimate goal is to create uniquely brilliant buildings that are more economically valuable, environmentally sound, and secure.

It all comes down to the business case

Saving the world is nice, but that alone will send you off to the “social giving” side of the company to stand in line for a check. Businesses have to see how implementing things today keeps them around to save the world again tomorrow. And that is the true definition of sustainability. Make the business case, build the compelling value proposition—nothing like good ole’ fashion business. Every benefit that these solutions offer can ultimately be translated into financial impact, so do it and make it easier for the person with the budget.

Make sense? So if you are going to jump into the space, make sure that you really understand the markets you are targeting, how they use their buildings, what is important to them, and how your innovation or policies will bring the benefits that matter to their survival or success.

As always, I’d be happy to hear your thought and reactions.
PS