The New Rule of Thumb

What is the new rule of thumb when talking to C-suite level about investing in process energy efficiency.

The past few months I have been explaining the value of LED Lighting not only for energy saving but also for increase morale and productivity. In one study from the Harvard Medical School it said, “People working in a green office report higher cognitive function than those working in a conventional office by as much as 61%.” But how do you put a number to investing in process efficiency for personal. Tapping into the C-suite level of conversation requires managers to approach projects in a different way. What is the new rule of thumb. Commercial real estate firm JLL has dubbed the new rule of thumb concept the 3-30-300 Rule. 

The 3-30-300 rule

There is a “3-30-300” rule of thumb that organizations typically spend approximately $3 per square foot per year for utilities, $30 for rent and $300 for payroll. While these figures are just

archetypes, they are useful in providing an order of magnitude between the three areas of expenditure. According to the 3-30-300 model, the greatest financial savings from greening a workplace may not be in energy but in productivity. A 2% energy efficiency improvement would result in savings of $.06 per square foot but a 2% improvement in productivity would result in $6 per square foot through increased employee performance. As beneficial as energy savings can be, any green investment that increases employee wellness and productivity can have exponentially greater value.

When you calculate the value of the full 3-30-300 principle for smart buildings, the investment in the Internet of Things technologies is a no-brainer.