Getting buy-in from the executive suite for an IoT investment is not about gadgets—it’s about creating strategic business value. To win over leadership, you’ll need more than excitement. You need a well-reasoned, ROI-driven proposal that aligns with enterprise goals like cost savings, operational efficiency, and ESG performance.
This guide breaks down a step-by-step approach that facilities managers can use to pitch IoT investments that deliver real, measurable results.
Table of contents
- Lead with “What’s In It For Them”
- Present the ROI & Savings Opportunity
- Showcase Pilot Site Selection Criteria
- Emphasize Facilities Management & Program Benefits
Step 1: Lead with “What’s In It For Them”
Your pitch should reflect the strategic concerns of your executive team. This means it’s up to you to ensure the conversation focuses less on why you’re excited, and more on why this is a sound business decision that will reflect positively on the company’s C-suite.
Cost Reduction
IoT systems—such as smart HVAC controls—can cut energy use by 10-30% by automating thermostat temperature setbacks by just a few degrees when the business is unoccupied. Beyond that, having insight into equipment performance can tip FMs off when something’s not working right, before it becomes a costly emergency repair or replacement.
Operational Efficiency
With access to real-time and historical data collected by IoT devices, facility teams can shift from playing whack-a-mole to predictive planning, proactively focusing time and resources exactly where they’re needed to improve operations.
Sustainability & ESG
Many IoT technologies focused on energy management directly support carbon reduction targets, building compliance (e.g., Canada’s Clean Buildings Act), and investor-facing ESG metrics.>> Action Step: Craft your “What’s In It For Them” Statement
Sample:
“In order to reduce our facilities equipment repair and maintenance costs and meet our ESG goals by minimizing our carbon footprint, there is a Smart HVAC energy management solution we should pilot. The investment per location would only be $XXX.00, and the projected ROI on this project is X% within 12 months, and XX% over 3 years.”
Tip: Always express costs on a per-site basis to minimize sticker shock.
Step 2: Present the ROI & Savings Opportunity
A compelling pitch includes concrete numbers. Don’t just say it will save money and leave them to connect the dots—show how and, most importantly, when the investment will pay off.
1. Conduct an ROI Analysis
Model projected returns by looking at:
- Energy Savings: Quantify potential reduction in HVAC or lighting costs using historical utility bills and any sensor data, if available.
- Maintenance Reduction: Review how many trucks were rolled over a specific time period (the longer, the better) and calculate the cost of each truck roll. Then, estimate how many of those truck rolls could have been prevented with remote monitoring and control, and factor that into your savings projection.
- Incentives & Rebates: Highlight regional or utility rebates that offset capital investment.
Bonus: Include a three-scenario model (best-case, base-case, worst-case) to demonstrate risk awareness.
2. Use Benchmarking Data
If you have a limited amount of internal data to work with, you can still come up with some concrete numbers. Try researching studies that have shown the impact of IoT technology in the commercial sector. You can also compare your organization to industry peers, leveraging case study data to support your hypothesis. Here are a couple of example stats:
- “Buildings that implement smart energy solutions report up to 23% lower utility costs.” (Source: U.S. DOE)
- “One retailer with 2,000+ locations saves $250,000 per month on electricity costs by implementing simple thermostat setbacks.” (Read: Prime Case Study)
>> Action Step: Use an ROI calculator (like this one) or financial model to calculate payback period and highlight total cost of ownership.
Step 3: Showcase Pilot Site Selection Criteria
Position your proposal as low-risk, high-impact and set the initiative up for success by carefully choosing the right site(s) to pilot.
Prioritization Criteria:
- High Energy Usage: Select sites with outdated HVAC systems or high utility bills.
- Strong Financial Performance: A pilot in high-EBITDA sites ensures even modest savings affect bottom-line performance.
- Low Risk of Turnover: Owned properties or long-term leases maximize the long-term benefit and reduce sunk cost concerns.
>> Action Step: Shortlist 5-10 locations for initial rollout. Define clear success metrics (e.g., % energy reduction, number of alerts avoided) and propose a 60-90 day month pilot timeline.
Step 4: Emphasize Facilities Management & Program Benefits
IoT adoption isn’t just good for the business—it transforms your team’s ability to do your job effectively, which has a massive impact on productivity and morale.
Core Benefits:
- Real-Time Monitoring: Energy dashboards help your team take immediate corrective action before issues escalate.
- Faster Diagnostics: Get proactive alerts on HVAC malfunctions, temperature outliers, or energy spikes.
- Optimized Staffing: Move from reactive to proactive maintenance, reducing emergency OT and service costs.
>> Action Step: Build a roadmap for scaling post-pilot, including timeline for onboarding additional sites, integration with existing BMS or CMMS tools, internal training and change management support.
Key Takeaway: Position IoT as a Business Driver
Winning C-suite support means elevating the conversation–it’s not about gadgets, it’s about outcomes. Facilities IoT investments can help meet cross-functional goals, from compliance to cost savings to carbon neutrality, and it’s up to the champion of that investment – YOU! – to make that case.
Pro Tip: Always end with a clear ask. In this case, you’re looking for approval to run a defined pilot with a review checkpoint. Demonstrating success with hard data makes the case for scaling impossible to ignore.