Searching for Excellence Searching for Excellence Using Using APPAAPPA’’ss Facilities Facilities Performance IndicatorsPerformance Indicators

Presented by Presented by Maggie Kinnaman Maggie Kinnaman for NCFMTC Conference for NCFMTC Conference Boston, Massachusetts Boston, Massachusetts August 2007 August 2007

Higher Education Higher Education

““Education is not about filling a pail, Education is not about filling a pail, itit’’s about lighting a fire.s about lighting a fire.””

William Butler YeatsWilliam Butler Yeats

Objectives of Higher Objectives of Higher EducationEducation

Socialization to Socialization to MaturationMaturationTraining to LearningTraining to LearningResearch to DiscoveryResearch to DiscoveryPublic Service to Public Service to EngagementEngagementCredentials to Credentials to Competence Competence Recognition to Recognition to Credibility Credibility

Why Improve?Why Improve?

What pressures?What pressures?What new and future What new and future challenges?challenges?What opportunities?What opportunities?What is the cost of What is the cost of not improving? not improving? What personal What personal drivers? drivers?

Major Forces Impacting Major Forces Impacting Higher Education Higher Education

Accountability Accountability Educational delivery no Educational delivery no longer time/place sensitive longer time/place sensitive Lifelong learningLifelong learningDiminishing resourcesDiminishing resourcesCompetition requires market Competition requires market focusfocusEntrepreneurial skills Entrepreneurial skills necessary necessary Scarce energy Scarce energy

Capital Asset Realities Capital Asset Realities

Construction Construction Maintenance Maintenance Renewal Renewal Demolition Demolition

Facilities ManagementFacilities Management’’s s Role Role

Ensure that the buildings and Ensure that the buildings and infrastructure are a strategic infrastructure are a strategic enabler for the business of higher enabler for the business of higher education education Stewardship role for the largest Stewardship role for the largest capital asset on campus, buildings capital asset on campus, buildings and infrastructure and infrastructure We must be accountable for the We must be accountable for the assets entrusted to us assets entrusted to us Facilities must be able to tell their Facilities must be able to tell their story to decision makersstory to decision makersEngage other Administrative staff Engage other Administrative staff and Academiciansand AcademiciansFacilitate a discussion of capital Facilitate a discussion of capital asset realities asset realities

What are Facilities What are Facilities Performance Indicators (FPI)? Performance Indicators (FPI)?

FPI creates a powerful tool for FPI creates a powerful tool for achieving organizational achieving organizational excellence through continuous excellence through continuous improvement improvement –– OrganizationOrganization’’s financial s financial

performanceperformance–– Effectiveness of its primary Effectiveness of its primary

processesprocesses–– Readiness of employees to Readiness of employees to

embrace the future embrace the future –– Ability to delight customers Ability to delight customers

Why Use FPI?Why Use FPI?

SelfSelf--AssessmentAssessmentSelfSelf--Improvement Improvement Peer comparisonPeer comparisonBenchmarkingBenchmarking

Your Roadmap to Your Roadmap to Future Excellence Future Excellence

Components of FPIComponents of FPI

Balanced ScorecardBalanced ScorecardQuantitative Quantitative Measurements and Measurements and IndicatorsIndicatorsQualitative Criteria Qualitative Criteria Captured in the Captured in the Performance Levels Performance Levels

Balanced ScorecardBalanced Scorecard

Efficiency Versus Efficiency Versus Effectiveness Effectiveness

Efficiency is getting resultsEfficiency is getting results–– You can do that if you pay You can do that if you pay

attention to one perspective attention to one perspective

Effectiveness is getting Effectiveness is getting results time and time againresults time and time again–– You can only get by paying You can only get by paying

attention to all four attention to all four perspectives perspectives

Financial Perspective Financial Perspective How do we look to resource How do we look to resource providers?providers?–– Reflects organizationReflects organization’’s s

financial integrity financial integrity –– Demonstrates stewardship Demonstrates stewardship

responsibility responsibility Capital and financial resources Capital and financial resources Preservation of physical assetsPreservation of physical assets

–– Linked to the other Linked to the other perspectives through the perspectives through the relationships between cost relationships between cost and the resultsand the results

Internal Process Internal Process Perspective Perspective

At what must we excel? At what must we excel? –– Evaluation of delivery of Evaluation of delivery of

primary services primary services AdministrationAdministrationOperations and maintenanceOperations and maintenanceEnergy and utilities Energy and utilities Planning, design and Planning, design and constructionconstruction

–– Emphasis on improvements Emphasis on improvements and measuring results and measuring results

Innovation and LearningInnovation and Learning

How can we sustain excellence How can we sustain excellence over time? over time? –– Creating a high performance Creating a high performance

workplace and a learning workplace and a learning organizationorganization

–– Considers how the organization Considers how the organization enables and encourages enables and encourages employees to contribute effectivelyemployees to contribute effectively

–– Training Training –– leadership and leadership and knowledge sharing knowledge sharing

–– Employee well being and Employee well being and satisfactionsatisfaction

Customer Perspective Customer Perspective

How do our customers see How do our customers see us? us? –– Considers relationships with Considers relationships with

customers customers –– Measures customer satisfaction Measures customer satisfaction

and performance of services and performance of services –– Categories Categories

Types of surveysTypes of surveysPrimary customer groups Primary customer groups Primary services Primary services

Strategic Financial Strategic Financial Measures Measures

Facility Operating CRV Index Facility Operating CRV Index ($/CRV)($/CRV)Facility Operating GSF Index Facility Operating GSF Index ($/GSF)($/GSF)Facility Operating GIE Index ($/GIE) Facility Operating GIE Index ($/GIE) Capital Renewal Index Capital Renewal Index ($($CR+AdaptCR+Adapt/CRV)/CRV)Facilities Condition Index Facilities Condition Index ($DM/CRV)($DM/CRV)Needs Index ($Needs Index ($DM+CR+AdaptDM+CR+Adapt/CRV)/CRV)

Facility Operating/CRV Facility Operating/CRV IndexIndex

Annual Facility Operating expenditures Annual Facility Operating expenditures ($) Divided by Current Replacement ($) Divided by Current Replacement Value (CRV) Value (CRV) Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institutioninstitution’’s annual facilities operating s annual facilities operating expenditures expenditures

Facility Operating/GSF Facility Operating/GSF Index Index

Annual Facility Operating Expenditures Annual Facility Operating Expenditures ($) Divided By Gross Square Feet ($) Divided By Gross Square Feet (GSF)(GSF)Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institutioninstitution’’s educational and general s educational and general capital assets capital assets

Facility Operating/GIE Facility Operating/GIE Index Index

Annual Facility Operating Expenditures Annual Facility Operating Expenditures ($) Divided by Gross Institutional ($) Divided by Gross Institutional Expenditures (GIE)Expenditures (GIE)Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institutioninstitution’’s educational and general s educational and general capital assets capital assets

Capital Renewal IndexCapital Renewal Index

Annual Capital Renewal and Annual Capital Renewal and Renovation/Modernization Renovation/Modernization Expenditures ($) Divided By Current Expenditures ($) Divided By Current Replacement Value (CRV) Replacement Value (CRV) Level of funding expended in Level of funding expended in addressing identified capital renewal addressing identified capital renewal and renovation/modernization needsand renovation/modernization needs

Facilities Condition Index Facilities Condition Index (FCI)(FCI)

Deferred Maintenance Deficiencies ($) Deferred Maintenance Deficiencies ($) Divided By Current Replacement Value Divided By Current Replacement Value (CRV)(CRV)Comparative indicator of the relative Comparative indicator of the relative condition of facilitiescondition of facilities

Needs Index Needs Index

Capital Renewal and Deferred Capital Renewal and Deferred Maintenance Backlog plus Maintenance Backlog plus Renovation/Modernization Need ($) Renovation/Modernization Need ($) Divided by Current Replacement Value Divided by Current Replacement Value (CRV)(CRV)Overall indicator of campus condition. Overall indicator of campus condition. It is influenced by resource availability It is influenced by resource availability and utilizationand utilization

Internal Process Internal Process Perspective Perspective

Cycle Time (Time to complete) Cycle Time (Time to complete) Average Age (Average age of Average Age (Average age of active work orders)active work orders)Backlog (Staff Hrs/FTE Hrs)Backlog (Staff Hrs/FTE Hrs)Energy Usage (BTU/GSF) Energy Usage (BTU/GSF) Estimating Index Estimating Index ($Actual/$Estimate)($Actual/$Estimate)Project Soft Costs Index Project Soft Costs Index ($Soft/Total)($Soft/Total)

Innovation and LearningInnovation and Learning

Employee Climate Survey Employee Climate Survey Employee Focus GroupsEmployee Focus GroupsInvestment in Training Investment in Training Quality work incentivesQuality work incentivesAwards and Recognition Awards and Recognition Job Skills Job Skills

Customer PerspectiveCustomer Perspective

Customer Surveys Customer Surveys Customer Focus Groups Customer Focus Groups at different levels of the at different levels of the organizationorganizationWEB resources and tools WEB resources and tools Participation in Academic Participation in Academic briefings briefings

Performance LevelsPerformance Levels

Level 5 PlatinumLevel 5 PlatinumLevel 4 GoldLevel 4 GoldLevel 3 SilverLevel 3 SilverLevel 2 BronzeLevel 2 BronzeLevel 1 Copper Level 1 Copper

Level 1 Level 1 -- CopperCopper

No systematic approach No systematic approach Only anecdotal informationOnly anecdotal information

Level 2 Level 2 –– Bronze Bronze

Beginnings of a systematic programBeginnings of a systematic programMajor gaps existMajor gaps existEarly stages of improvement Early stages of improvement orientationorientationTrends of some improvement Trends of some improvement

Level 3 Level 3 –– Silver Silver

Sound systematic programSound systematic programFactFact--based improvement for most based improvement for most areasareasEmphasis on improvementEmphasis on improvementImprovements in most areasImprovements in most areasNo adverse trends No adverse trends Comparisons Comparisons –– good to very goodgood to very good

Level 4 Level 4 -- GoldGold

Sound program with refinements Sound program with refinements Cycles of improvement in many to Cycles of improvement in many to mostmostAll primary areas includedAll primary areas includedSustained performance trendsSustained performance trendsBenchmarkingBenchmarkingResults show leadership in Results show leadership in performanceperformance

Level 5 Level 5 –– Platinum Platinum (Stretch)(Stretch)

Program accomplishes all objectivesProgram accomplishes all objectivesFully deployed for all primary areasFully deployed for all primary areasEmphasis on refinementEmphasis on refinementCycles of improvement Cycles of improvement –– Mature Mature programprogramExcellence sustained over several Excellence sustained over several yearsyearsBenchmarking with outside industriesBenchmarking with outside industries

Why FPI?Why FPI?

Strategic Tool Strategic Tool –– Helps to assess where you are Helps to assess where you are –– Describes where you can go Describes where you can go –– Outlines the strategies and action Outlines the strategies and action

necessarynecessary

You decide how far to go You decide how far to go Tailor model for your specific needs Tailor model for your specific needs

Sharing FPI Data Sharing FPI Data Internal Internal –– FM employees FM employees –– FM contractors FM contractors –– FM administrators FM administrators

Within the institution Within the institution –– PlannersPlanners–– Financial OfficersFinancial Officers–– AcademiciansAcademicians–– ResearchersResearchers

Externally Externally –– Legislatures Legislatures –– Other institutionsOther institutions

Why is Sharing Important? Why is Sharing Important?

Remember the capital asset Remember the capital asset realities?realities?They cannot be solved by They cannot be solved by FM working in isolation FM working in isolation FM must educate the FM must educate the institutioninstitutionEngage the institutionEngage the institutionCreate partnerships Create partnerships Work together to create a Work together to create a strategy to address the strategy to address the capital asset realitiescapital asset realities

Your Stairway to ExcellenceYour Stairway to ExcellenceUnderstand the context within Understand the context within which you operatewhich you operateCreate partnerships with your Create partnerships with your environment environment Identify your measurements of Identify your measurements of successsuccessStrive for balance using four Strive for balance using four perspectivesperspectivesMeasure at all levels of the Measure at all levels of the organizationorganizationShare the resultsShare the resultsSet the bar higher Set the bar higher Identify new strategies Identify new strategies Educate, engage and brief your Educate, engage and brief your partners on how youpartners on how you’’re doingre doingDo it all over againDo it all over againDonDon’’t give up!!!! t give up!!!!

“Knowing is not enough;we must apply.

Willing is not enough; we must do.”

Johann Wolfgang von Goethe

Keeping it All in Keeping it All in Perspective Perspective

How to contact meHow to contact me

Maggie Kinnaman at the University of Maggie Kinnaman at the University of Maryland, Baltimore Maryland, Baltimore mkinnaman@af.umaryland.edumkinnaman@af.umaryland.edu