Learn how President, Jay Halloran, presents projects, strategy, and financial plans in an optimal and successful manner to CFO's.

1. Making Sense Of Maintenance Economics:
Presenting Facility Solutions and Enterprise
Solutions to your CFO
Jay Halloran, President, Baltic Trail Facilities Management
A City (US) Company

2. Understanding the process
 Identifying What Is Crucial for CFO Decision Making
 Getting To The Bottom Of The Strategic Intent Of Your
Business
 Using/Understanding Financial Terms And Why It’s
Important
 Collecting Data Systematically
 Presenting Your Project And Getting Results
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3. My Experience With Presenting To
financial leadership CFO, CEO & COO
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Types Description Experience
ECM Programs Lighting Retrofit, Refrigeration
Equipment, HVAC Equipment,
EMS Equipment
Energy Programs: ECM’s included VFD, Case changes, Curtains,
Doors, Retrofits,
System Upgrade, refurbishment or replacement
Corporate
Initiatives
Organizational Downsizing
FTE Reduction
Business Process Outsourcing
Merchandizing
Merger of Assets
Shrink Reduction
Sustainability
Risk Mitigation – Slip & Falls
Headcount reduction: Technician outsourcing of all in house
refrigeration technicians and maintenance labor (reduction of 270
FTE’s) to select vendor community.
Shrink Reduction Program: Supporting corporate goal to drive
perishable shrink down and deliver $X M
Integration of 175 stores: into existing 575 store portfolio, 30%
increase in managed portfolio
Sustainability: Investments in new technology and infrastructure
upgrades, Fuel cell, Solar, CO2, Conversions, etc.
Completed Integrated Bundled Outsourcing (IBO): of all General
Maintenance & Refrigeration HVAC, Engineering & Project
Management
Regulatory and
Risk
Management
Regulatory Risk: EPA, BOH, DOE
Business Risk: Many
Regulatory Risk Assessment – Provide intelligence as to what the
companies risk and opportunities related to EPA violations and
fines. Post Safeway, Costco;
Business Risk Assessment: Brand impact, Shrink reduction,
Produce fresh, Identity theft

4. What Is Crucial To Decision Making
For A CFO
 Pressure On Corporate Executives To Maximize
Profits In A Relatively Stagnant Economy Is
Intensifying
 While Revenue Growth Is Still Of The Utmost
Importance To Organizations, Executives Are Looking
For New Ways To Contain Costs And Maximize Capital
Investments
 Senior Executives Within The Organization Will Be
Focused On Strategic, Competitive Business Issues
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5. What Is Crucial To Decision Making
For A CFO
 For The Facility Executive, Money Isn’t The Object
 For the Facility Executive the key is to learn to think like
a profit contributor as well as a manager - know your
audience
 Now Is The Time To Gain Influence With The CFO By
Showing How Total Cost Of Ownership Of Refrigeration
And HVAC Infrastructure Will Affect An Organization’s
Profitability And Allow Facility Executives To Propose Cost-
Reduction Solutions That CFOs Will Consider
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6. What Is Crucial To Decision Making
For A CFO
 Today’s CFOs play four diverse and challenging roles:
 The two traditional roles of steward (preserving the
assets of the organization by minimizing risk) and
operator (running a tight finance operation that is
efficient and effective).
 Added are strategists (helping to shape overall
strategy and direction) and catalysts (instilling a
financial approach and mind set throughout the
organization to help other parts of the business
perform better).
Source: Article on the Changing CFO, HBR6

7. Know The Organization’s Strategy &
Intent
 How Many Of You Know What The Strategic Intent Is Of
Your Company Today? Where is the company headed, what
are the stating publically.
 How does this effect decisions regarding:
 A given facility or facilities - Sales, Profitability,
Location?
 How is investment in infrastructure valued in the
company? Owned & leased properties, approach
to use of capital
 How are projects being developed and evaluated
today? Will this be changing going forward?
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8. Know The Organization’s
Strategy & Intent
 Understanding how Tangible and Intangible value is
measured. The CFO wants to know:
 Does your current approach expand the analysis to include other
areas of benefit, with proper documentation and assumptions?
 Improved productivity, shrink reduction, reduced regulatory risk and
increased cash value
 Show how your work contributes to the bottom line of the company
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9. Profit Erosion
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Energy Consumption
[1.1% of Sales, 65% of
store profits*]
Step 1 Step 2 Step 3 Step 4
Data Monitoring Baltic Trail Engineering
Assess & Deploy
Service & Repair
Scope, Time, Location
Measure & Verify
Perishable Shrink
[1.7-2.2 % of Sales,
> 100% of stores
profits*]
REF/HVAC Repair &
Maintenance
[.23% of Sales, 15% of
profits*]
Regulatory Risks
Mitigates risk, reduce
leak rates
Direct Resources
In house techs
Vendors partners
Continuous Measurement
Condition Monitoring
Validation
Data Collection & Analysis
Technology solution
Analytics & reports
System Management
Value Engineering
OER Assurance
drives up energy
consumption
(spend)
increases
perishable
shrink
increase both
expense and
capex
maintenance
spend
Increase in
regulatory risk
Occurs When Critical Systems Efficiency Decreases And Continues Until Fixed

10. Speak In Financial Terms That Matter
To The CFO
 Watch Your Language And Sources: Avoid Expressing Savings In
Project Terms Of Simple Payback, Kilowatts, BTUs Or Cash Flow
Analysis Prepared By A Party With A Vested Interest.
 Take Ownership Of The Process
 Present In Terms Of Value: Use Economic Justification And
Capital Investment Tools That The Company Is Using For Other
Investment Considerations.
 Qualify And Quantify
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11. Speak In Financial Terms That Matter
To The CFO
 What Is Crucial Or Essential For The Business: Learn The Factors
That Influence Financial Decision Makers In The Way Of Financial
Returns, Risk, Social Impacts, Environmental Impacts, Etc.
 What Are The Strategies For Growth, Future Business Models,
Currents Assets, FTE Headcount Reduction, Etc.?
 Annual Reports & 10K Filings: Have You Looked At And
Understand The Company’s Income Statements, Balance Sheets
And Cash Flow Information.
 Understanding The Major Issues Facing The CFO
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12. Understanding The Key Financial Terms
 Know And Be Prepared To Use Terms, Such As Shareholder Value,
Return On Investment, CAPEX (Capital Expenditure), OPEX
(Operational Expenditure)
 Be Willing To Ask About The Budgeting Process
 How Will He/She Measure The Financial Success Of Investments
And Whether They Have A Preference For On-Balance Sheet Or
Off-Balance Sheet Solutions When It Comes To Capital
Expenditure?
 In Using These Types Of Terms, You Are Speaking The
Language Of The CFO.
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13. Understanding The Key Financial Terms
 Key Terms Include:
 Return On Investment (ROI) – The Efficiency Of An Investment
 Hurdle Rate – Accept Or Reject Criteria
 Net Present Value (NPV) – Capital Planning Tool Used To Measure The
Investment
 Internal Rate Of Return (IRR) - Rate Of Return Used In Capital Budgeting
 Total Cost Of Ownership (TCO) - Total Economic Value Of An Investment
 Cost Benefit Analysis – Validates Investment And Compares Projects
 Funding Options – Balance Sheet Effect, Sources Of Capital, Tax Benefits
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14. A Systematic Approach To
Collecting Data
 Define The Problem: Data Collection Starts With Your Ability To
Define The Problem
 Without A Succinct Statement Of What Is To Be Accomplished, It
Is Not Possible To Proceed In A Meaningful Way
 Assumptions: A Variety Of Assumptions And Estimates Must Be
Made At The Beginning Of The Process To Facilitate Comparisons
And Validate Opportunities
 Alternatives: Creating An Effective Business Case Requires An
Understanding Of The “As-is” Scenario, As Well As The Alternative
Prospective Scenarios
 Look for big opportunities that have may have positive impact
across the business 14

15. A Systematic Approach To
Collecting Data
 Data Plan: Supports The Collection Of The Necessary Data And
Evaluation Criteria Of Each Opportunity
 Collecting Data: Emphasis Is Placed On Gathering Data That
Demonstrates The Cost And Benefits Of The Identified
Alternatives And Solves The Business Objectives
 Analysis Of The Data: Several Types Of Criteria Can Be Used In
The Analyses And Provide Economic Detail For The Business Case
 Total Cost Of Ownership
 Cost/Benefit
 Cost Effectiveness
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16. Presenting Your Project
 Develop A Compelling Financial Story – Numbers Don’t Lie
 Show How The Project Will Impact Costs, Cash Flow, Balance
Sheet, Etc.
 Show Proof Of How You Arrived At These Values And The
Assumptions You Used
 Show The Complete Value By Adding How Your Project(s)
Reduce Risk Or Add To Other Areas Of The Business Like Shrink,
Sustainability, Sales, Legal, Regulatory, Etc.
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17. Presenting Your Project
 Keep It Consolidated And Comprehensive
 The Presentation Should Be 3 Or 4 Slides That:
 Support Your Approach, Findings And Recommendations
 Reference To Others Who Have Achieved Success With This
Approach
 Include The Business Case, Which Contains All Of The Logic And
Detailed Information.
 Be Prepared To Discuss Industry Insights And Perspectives
 You Are The Expert On The Subject
 Leverage Your Peers And Vendors To Get As Much Understanding
Of How Others Have Benefited From Projects Like Yours
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18. Building A Strong Business Case
I. Executive Summary
II. Project Summary
i. Project Definition/Problem
Statement
ii. Assumptions
iii. Alternatives
iv. Data Plan
v. Data Collection
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III. Life Cycle Cost Analysis
i. Cost Analysis
ii. Benefit Analysis
iii. Risk Analysis
iv. Sensitivity Analysis
v. Measurement And
Verification
IV. Conclusions And
Recommendations
V. Tables And Graphs