Operating strategically drives more than $1.4 million in annual energy and operational savings

Industry: Banking & Finance

Summary

Johnson Controls developed strategic investment goals for KeyBank that not only optimized building operations, but also were sustainable and reduced operating costs:

  • KeyBank has realized almost a million dollars in reduced electrical consumption in four key facilities.
  • A service request and route-based maintenance systems, including the use of smartphones, have produced an additional $430,000 in annual savings.

By focusing on critical environment uptime, standardized maintenance, energy management, financial reporting, and project management, among other facility services, Johnson Controls has created a best-in-class national facilities organization.

Operating facilities strategically drives national facilities management goals.

  • KeyBank is one of the largest bank-based financial services companies in the United States, with assets of approximately $87 billion as of March 31, 2012.
  • Providing reliable service to an expansive customer base and comfort to thousands of employees, while holding down operating costs, is paramount to KeyBank’s success.
  • KeyBank selected Johnson Controls Global WorkPlace Solutions to provide comprehensive facility management, resulting in more than $1.4 million in annual energy and operational savings.

KeyCorp (NYSE: KEY) was organized more than 160 years ago and is headquartered in Cleveland, Ohio. KeyBank provides deposit, lending, cash management, and investment services to individuals and small and medium-sized businesses in 14 states under the name of KeyBank National Association. KeyBank also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives throughout the United States under the KeyBanc Capital Markets trade name.

The company delivers their products and services through nearly 1,100 branches and offices, more than 1,500 ATMs, telephone centers and online services. KeyBank employs more than 15,300 people.

Driving for Results
“Ensuring we have the right people, processes, and technologies is critical in driving results for today and the future,” says Brian Lawhead, SVP, Director National Facilities. After reviewing their corporate facilities strategies with Brian, Richard Estremera, SVP, National Operations and Critical Site Manager for KeyBank and Robert Davenport, Business Director for Johnson Controls, developed strategic investment goals that not only optimized building operations, but also were sustainable and reduced operating costs.

“As an organization, we are continually adjusting to our dynamic business environments and our facilities must be flexible,” says Estremera. “As our business, employee and social needs change, it’s critical that we adapt our facilities without increasing our operational cost. That means taking advantage of new technologies and government incentives, including training. With partners like Johnson Controls, we’re able to take advantage of their technical support services and critical site technology in the field of building automation.”

Sustainable Facility Management
In serving KeyBank over the past 15 years, Johnson Controls has focused on critical environment uptime, standardized maintenance, energy management, financial reporting, and project management, among other facility services. Johnson Controls is responsible for approximately 750 of KeyBank’s buildings east of the Mississippi River. Three major office buildings, including one tower and two campuses, along with five critical facilities comprise 1.5 million square feet. More than 700 bank branches make up more than six million square feet. The Johnson Controls Metasys® building management system is used to monitor and control HVAC, fire, and lighting systems at KeyBank’s data centers and select bank branches.

More than 70 Johnson Controls technicians and managers provide onsite support to the corporate facilities and mobile support to the bank branches. Technicians are aligned with appropriate KeyBank associates to invoke cohesiveness with the team that results in better field performance. “This relationship is pivotal to the ‘we’ culture and transparency between Key and Johnson Controls. When Key succeeds, Johnson Controls succeeds. As a trusted partner, we take the relationship we’ve earned seriously. We are there for Key every step of the way,” says Davenport.

Efficient Service Delivery
To improve maintenance performance, Johnson Controls implemented a computerized maintenance management system (CMMS), which allows the team to track, schedule, and report completion of maintenance. “Much of what we’ve done to improve building infrastructure was possible because of the information we received from the CMMS,” says Estremera. “Mining the information helps us identify areas of concern, fix things we would not have known about otherwise, and track whether things are improving or not. And, it prompts dialog that can lead to educating clients and managing expectations.”

For service, KeyBank personnel place requests through a Johnson Controls-hosted call center. Technicians have strategically optimized routes and each branch knows when the technician will arrive to perform routine maintenance and address other facility concerns. “Being able to call the call center and get a response is critical, and can often lead to an explanation of how and when something will be taken care of. It’s all part of the education process needed in an environment that is constantly changing,” states Davenport.

In partnering with Johnson Controls to manage in-sourced and outsourced energy management projects, KeyBank has realized almost a million dollars in reduced electrical consumption in four key facilities. The service request and route-based maintenance systems, including the use of smartphones, have produced an additional $430,000 in annual savings.

Critical Environment Uptime
The very nature of KeyBank’s lines of business makes nearly all of its facilities critical environments. Customers expect to have access to their finances and make transactions at all times, whether in-person or electronically. Keeping offices, bank branches, and, most especially, data centers operational is imperative for meeting that expectation.

Without a doubt, the most critical environments are KeyBank’s data centers. In banking, keeping computers and banking systems operational is paramount. If data centers are not properly maintained, the servers that support those systems can be jeopardized, threatening the bank’s ability to comply with a multitude of regulations governing the industry.

“This is where Johnson Controls stands out and has helped our facilities team garner high levels of confidence from our strategic business partners. Johnson Controls is actively engaged in our data centers. With their support, servers stay up and running efficiently regardless of what is occurring outside our buildings,” states Estremera.

“Creating a best-in-class national facilities organization means redefining ourselves within Key and the way we manage. We’ve matured from a tactical organization into a strategic team that engages its members and business partners towards common goals versus operating in silos. To that end, we’ve created Centers of Excellence, combined teams, redefined roles, and strategically inserted ourselves upfront in the planning process,” says Lawhead.

“It’s important for KeyBank’s partners and our communities to know that our days of just maintaining facilities are over. With the help of Johnson Controls and other strategic partners, we drive our operations so they are safe, reliable, cost effective, sustainable, flexible, and user-friendly without sacrificing quality,” adds Estremera “Key has been a great partner,” says Davenport. “They’ve challenged us to earn the right to stay and that means being a better value-added partner. Our job is to listen, be responsive, anticipate needs, keep our employees safe, and share best-in-class practices.”

This case study is from Johnson Controls, headquartered in Milwaukie, WI – a global diversified technology and industrial leader serving customers in more than 150 countries.

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