1. Facilities Benchmarking: Positive Impact to Your Bottom Line
Christina Hills
Director of Credentialing & Benchmarking
March 17, 2011

2. Objectives of the Session
What is the APPA FPI program?
FPI Survey framework
Benefits of participating in the survey
Maximizing FPI Report results
Q & A and Discussion

3. What is APPA’s FPI?
Portfolio of the key facilities measures that address the essential questions every facilities professional must be able to answer in order to effectively perform their roles.
“A major consideration in performance improvement involves the creation and use of performance measures or indicators.” – Baldrige criteria for performance excellence
Talk about survey cycle. Begin and end dates. 7 essential questions.

4. Why Use the FPI? Strategic tool for: Self-Assessment Self-Improvement
Peer Comparison/Benchmarking
Performance Measurement/Improvement
Data Ownership
Your Roadmap to Future
Excellence
Self-assessment begins once baseline is established. Simply complete the first couple of modules and continue to expand entries every year. Review trending to determine areas of improvement. Peer comparison is easy because of transparency of data. You select your peers. Performance measurement is more comprehensive than benchmarking because you are no longer trying to justify your results/data. With performance measurement, you understand the mission/vision/goals of YOUR organization and you complete the survey every year to develop trending . Your peers’ data is not necessarily taken at face value. You contact them and question how they interpreted the question or you may try to better understand their mission or strategy and see how this differentiates from yours in order to know how to view the data sets. Data ownership is enabled by this tool because of transparency. Have to have data confidence and that takes time (years) and constant education. Having data ownership will allow you to sit at the decision maker’s table on campus and will raise your trust and competency in stakeholder’s eyes.

5. Capital Asset Realities
Construction
Maintenance
Renewal
Demolition
Maintenance cost is roughly two times the cost of construction over an asset’s life cycle. Renewal could be 75% of construction cost and demolition, it depends. The message here is that capital assets must meet three criteria to ensure that they are a strategic enabler to higher education. They must be sufficient, basically do you have adequate space to support the mission. Second is the suitability issue, do you have the type of space to support the mission, and third is the condition question, does the condition of space support the mission. All of these questions must be addressed.
Capital Asset Realities are like principles, they are unchanging, they are cast in stone and predictable. There should never be any surprise that the realities will play out. How and when you choose to address those realities is part of your strategy. Basically are you looking at life cycle cost when you are planning a building or do you look at cost of construction and worry about the rest later. The realities always rule in this situation. Pay me now or pay me later.

6. Total Cost of Ownership
A Holistic View of Asset Management
Birth & Burial (non-recurring)
cost A
Concept to Bid
cost B
Financing
cost C
Construction/ Install
cost K
Decommission/Demolition/Disposal
Maintenance & Operations (annual recurring)
cost D
Operations
cost E
Planned Maintenance/Routine
cost F
Repairs/ Breakdowns
cost G
Utilities
FRAMEWORK
We will be adding more questions in the future FPI surveys and provide this whole concept in the survey. For now, we ask only one question and it is a self-rating that you provide over how much funding you receive for TCO.
Recapitalization (periodic recurring)
cost H
Retrofits/ Improvements
cost I
Programmatic Upgrade
cost J
Replacement/ Renewal

7. Facilities Management’s Role
Ensure that the buildings and infrastructure are and remain a strategic enabler for the business of higher education
Stewardship role for the largest capital asset on campus, buildings and infrastructure
We must be accountable for the assets entrusted us
Facilities must be able to tell their story to campus decision makers
Engage other Administrative staff and Academicians
Facilitate a discussion of capital asset realities
We need to ensure that we are not looking at buildings and infrastructure as an end in themselves but within the context of our higher education environment.
We have to recognize the capital asset realities and tell our story to campus decision makers. We must realize that we can’t properly address the capital asset realities without the institution understanding and appreciating the strategic importance. It is our job to help educate regarding the realities and engage the campus to address those realities.

8. Sharing FPI Data Internal Within the institution Externally
FM employees
FM contractors
FM administrators
Within the institution
Planners
Financial Officers
Academicians
Researchers
Externally
Legislatures
Other institutions
Collecting the data is the first step, sharing it within the institution and outside is an important piece of the process. The information can help educate those who you need to become your partners in addressing the capital asset realities.

9. Why is Sharing Important?
Remember the capital asset realities?
They cannot be solved by FM working in isolation
FM must educate the institution
Engage the institution
Create partnerships
Work together to create a strategy to address the capital asset realities
Remember those capital asset realities we spoke of? What are they? Construction, maintenance, renewal, demolition.
These affect all aspects of the campus and therefore the FM department is not only responsible for maintaining the constructed facility, they need to become an educator, advocate, engage the institution, create partnerships to address the realities.
Remember the reason that we have buildings and infrastructure in the first place, if I had to pick a place to start engagement it would be there. FPI will help you tell your story and move your organizational forward to transform it into a strategic enabler for your business.

10. Balanced Scorecard
All perspectives must be in alignment with an institution’s mission, vision and organizational strategy.

11. Strategic Questions What facilities do I have? (Financial)
What facilities make up our Institution? (Financial)
3. Is my institution adequately funding the facilities management annual budget? (Financial)
4. Are the operating funds that we do receive being spent in a manner that supports desired outcomes? (Internal)
Is my institution making the right investment in our existing buildings, infrastructure and academic programs? (Financial)
6. Are the customers satisfied with the space and service? (Customer)
7. Are we building a staff that can sustain excellence? (Learning & Growth)
Organizing framework shifts from the balanced scorecard to essential questions.

12. Essential Set Questions
Examples of Indicators/Ratios
Essential Questions
1. About the Facilities Unit
2. What facilities make up our institution?
Gross Square Feet Maintained (GSF)
Current Replacement Value (CRV)

13. Essential Set Questions
Examples of Indicators/Ratios
Essential Questions
3. Is my institution adequately funding the facilities management annual budget?
Annual Facilities Operating Expenditures/CRV
Annual Facilities Operating Expenditures/GIE (Gross Institutional Expenditures)
Annual Facilities Operating Expenditures/GSF

14. Essential Set Questions
Examples of Indicators/Ratios
Essential Questions
4. Are the operating funds that our facilities department receives being spent in a manner that supports desired outcomes?
Maintenance Cost/GSF
GSF/Maintenance FTE
Custodial Cost/GSF
GSF/ Custodial FTE
Grounds Cost/GSF
GSF/ Grounds FTE
Utility Cost/GSF
British Thermal Units/GSF

15. Essential Set Questions
Examples of Indicators/Ratios
Essential Questions
5. Is the institution making the right investments in our existing buildings, infrastructure and academic programs?
FCI Index
Needs Index
Minimum Investment
Actual Investment
Investment Gap

16. Essential Set Questions
Examples of Indicators/Ratios
Essential Questions
6. Are the customers satisfied with the space and services?
7. Is my facilities department developing staff that can sustain excellence?
Customer Satisfaction
Employee Satisfaction

17. Benefits of Participating – FPI Survey
Free to participating APPA members
New Live Reports, charts, trending and averages
Flexible survey options (Express vs. Detail) allow people to choose how much of the survey to complete.
Survey opens earlier and closes later
New FAQ’s, Tips, Definitions
Enhanced Energy Module being built now
New mentoring/data scrubbing enhancements
Comprehensive FPI Advisor program
Free for both survey and report. Trending goes back to 07. averages are overall back to 07. data grid included. Min/max values shown for each year.

18. Free for both survey and report. Trending goes back to 07
Free for both survey and report. Trending goes back to 07. averages are overall back to 07. data grid included. Min/max values shown for each year.

19. Benefits of Participating – FPI Survey
Free to participating APPA members
New Live Reports, charts, trending and averages
Flexible survey options (Express vs. Detail) allow people to choose how much of the survey to complete.
New FAQ’s, Tips, Definitions
Enhanced Energy Module being built now
New mentoring/scrubbing enhancements
Comprehensive FPI Advisor program
Free for both survey and report. Trending goes back to 07. averages are overall back to 07. data grid included. Min/max values shown for each year.

20. Free for both survey and report. Trending goes back to 07
Free for both survey and report. Trending goes back to 07. averages are overall back to 07. data grid included. Min/max values shown for each year.

21. Cohort Groups Participating in the FPI
University of North Carolina System
University System of Georgia
California State University System
University of Wisconsin System
MHEC (Midwestern Higher Education Compact)
CAUBO (Canadian Association of University Business Officers)
Free for both survey and report. Trending goes back to 07. averages are overall back to 07. data grid included. Min/max values shown for each year.

22. Benefits of Participating – FPI Report
Access to all areas
Benchmarking/peer comparisons made easy
Immediate, online year-long access to data
Trending expanded/flexible to 5 years
Beta review period opens early - survey opens earlier and closes later
Excel File Reports
Online Presentations
Detailed Data Reports
Executive Level Dashboards
Report Dashboard Dials
Tell about participant sort options vs. non-participants that pay 500 and don’t have names. Framework is the 7 essential questions and balanced scorecard with 4 core areas of measurement. Critical asset management realities are the buildings on campus. Makes the business case by providing you several ways to present the data results to different audiences.

23. Tell about participant sort options vs
Tell about participant sort options vs. non-participants that pay 500 and don’t have names. Framework is the 7 essential questions and balanced scorecard with 4 core areas of measurement. Critical asset management realities are the buildings on campus. Makes the business case by providing you several ways to present the data results to different audiences.

24. Tell about participant sort options vs
Tell about participant sort options vs. non-participants that pay 500 and don’t have names. Framework is the 7 essential questions and balanced scorecard with 4 core areas of measurement. Critical asset management realities are the buildings on campus. Makes the business case by providing you several ways to present the data results to different audiences.

25. Tell about participant sort options vs
Tell about participant sort options vs. non-participants that pay 500 and don’t have names. Framework is the 7 essential questions and balanced scorecard with 4 core areas of measurement. Critical asset management realities are the buildings on campus. Makes the business case by providing you several ways to present the data results to different audiences.

26. Tell about participant sort options vs
Tell about participant sort options vs. non-participants that pay 500 and don’t have names. Framework is the 7 essential questions and balanced scorecard with 4 core areas of measurement. Critical asset management realities are the buildings on campus. Makes the business case by providing you several ways to present the data results to different audiences.

28. Setting up a Baseline for the FPI Survey
How is a Facilities Organization’s Strategic Plan Developed?
A strategic plan is achieved when all ranks within the organization:
Are inspired by the Vision
Understand the Strategies
Commit to achieving the objectives by developing aligned Goals/Targets, and
Systematically measure their progress to those Goals/Targets
Vision is a description of your desired future state. You, and your planning team, will describe the organization as you wish it to be at some future time. It is not how it is now, but the form into which you would like it to evolve. The vision statement should build enthusiasm. It should provoke inspiration. It should stimulate people to care. It should set a goal that your staff thinks is achievable and very desirable.
The vision statement is concise; perhaps one or two sentences and no more than two paragraphs.
The vision statement does not describe detailed action steps or any action at all. It is a condition of success in the future.
The mission states the purpose of your facilities organization. The mission is as true today as it is in the future when the vision is achieved.
The mission statement usually is more specific than your vision statement.
Strategies are activities to produce outputs required to achieve a vision while performing the organization’s mission.
Strategies usually comprise several activities and outputs.
Strategies are a set of plans that are: specific, measurable, obtainable
Strategies are carefully developed with involvement by an institution’s stakeholders.
These action statements are linked to an individual or individuals who are accountable and empowered to achieve the stated result in a specific desired timeframe (usually two-five years).
Goals/Targets need to comply with the following rules:
Accomplishment of goal/targets is assigned to specific staff personnel.
There is a date by which the goal/target is to be achieved.
The staff needs to agree that the goal/targets are achievable within the time frame set.
The goals/targets are expressed in specific numeric terms
If a goal/target cannot be defined by a number, it is not correctly constructed.
Descriptions like “low”, “high”, “efficient”, “affordable” are not substitutes for numeric values.
Goals/Targets are aligned to the scope of job responsibilities as well as to high level strategies. So, management levels will set strategic types of goals/targets that are related to outcomes of operating sections of the organization. The operating levels of the organizations will set goals/targets that directly relate to their work efforts which result in the desired higher level outcomes. While aligned, the goals/targets for management will be different than those for supervisors, work crews, etc.

29. FPI Report Analysis – Sharing your Story
Use the FPI Report Tools – Detailed Reports, Excel File Reports, Dashboards, and Online Presentations
Contact your peers and discuss any discrepancies with data in FPI Report. Question their data sources, interpretations of survey questions, definitions, etc. (Remember that every institution has a unique mission/vision, etc.)
Fully utilize APPA’s Beta Review period
Redefine your goals/mission/strategy for next year’s FPI cycle by reviewing your trending year after year and meeting with ALL interested parties. (internal and external)
Some people expect the tool to tell them very prescriptively how many FTE per GSF they should have in a certain area. The FPI will not and cannot do this. Every institution is unique and once you know what your mission/strategies are and what you are trying to achieve, you can better align yourself with other peers. It’s always good to reach out to your peers and gauge their strategies and goals as well as ask questions about why they responded they way they did to a data point etc. This may be the only way to know if you are making appropriate apple to apple comparisons.

30. Your Stairway to Excellence
Understand the context within which you operate – know where you are starting from
Create partnerships within your environment - integral internal and external parties
Identify your measurements of success – develop key FPI metrics that further your institution’s mission/goals/strategies
Strive for balance using the four perspectives – focus on the balanced scorecard approach
Measure at all levels of the organization - complete the entire Express survey
Share the results
Educate, engage and brief your partners on how you’re doing – “tell” your story using FPI Report tools
Set the bar higher – establish new goals based on the strategic plan of your organization
Identify new strategies - continually reassess institution’s mission/vision
Do it all over again
Don’t give up!!!!
This is a Continuous Improvement model. Understand the context within which you operate – establish a baseline (trilogy), then begin trending
and the use of FPI in summary.

31. Resources to Assist You
Visit the APPA FPI website area at
The online FPI survey instrument can be accessed on the APPA website year round.
Archived webinars on the FPI website will instruct you on how to complete the FPI survey instrument.
Contact Christina Hills to arrange a personalized GoToMeeting webinar.
Additional information on the FPI Qualified Advisors Program can also be found on the APPA
Consider purchasing the “Trilogy” (Custodial, Maintenance, and Grounds Staffing Guidelines) on APPA’s Bookstore area of the website.
Questions? Contact Christina Hills, Director of Credentialing & Benchmarking
Tel: