1. Facilities Management Performance Measurement
Duane G. Hickling
APPA Prince Street Alexandria, VA U.S.A

2. Agenda Key Metric Questions Institutional Activities Measured
Evolution of Facilities Performance Measurement
Case Study
The Future of Higher Education – One Perspective
Group Discussion Session – - Future Institutional Metric Alignment
Group – Report Out

3. 2 Key Questions
Are your facilities metrics aligned with your institution?
What are the key performance measures necessary to support the success of your institution?
Are the institutional metrics aligned with the future directions of higher education?
Will the future be anything like the past?

4. Institutional Activity Management
Financial Endowment
Academic Mission
Real Estate Portfolio Management

5. Performance Measurement Evolution
First Generation:
Question:
Are we spending enough on our facilities portfolio?
Measures Considered:
Cost comparisons against averages and benchmarks

6. Performance Measurement Evolution
Second Generation:
Question:
Are we getting full value from the resources committed to sustaining our facilities portfolio?
Measures Considered:
Comparisons against identified best practices; Lean management process analysis

7. Performance Measurement Evolution
Third Generation:
Question:
Is our institutional portfolio appropriate for the delivery of the mission?
Measures Considered:
Intensity of space usage; technology analysis

8. Key Performance Metrics (Annual)
Institution 1
All
APPA
Res.
Very High
Annual Facilities Operating Expenses + Paid Utilities: ($/Gross Square Foot)
$4.98
$6.91
$7.46
Facilities Operations Expenses Percent Current Replacement Value (CRV)
.33%
1.61%
1.29%
Facilities Operations Expenses
Percent Gross Institutional Expenses (GIE)
1.91%
6.00%
4.03%
Capital Expenditures on Existing Space
Percent Current Replacement Value (CRV)
.37%
2.71%
2.17%
Utilities Cost per
$/Gross Square Foot
$2.66
$2.02
$2.97
Million BTUs
$12.46
$17.86
$17.25
Utilities BTUs per
Gross Square Foot
213,473
121,361
179,832
Data Source: APPA FPI Database
Institution 1 qualitative performance for custodial, building maintenance and grounds is a level 4.

9. The Future of Higher Education
“By 2030 over 50% of colleges will collapse” “… eight core wedge issues between business-as-usual and the unstoppable forces of change.”
Thomas Frey, When Our Institutions Fail

10. Overhead costs are too high Substandard classes and teachers
Eight Core Issues
Eight core wedge issues between business-as-usual and the unstoppable forces of change
Overhead costs are too high
Substandard classes and teachers
Increasingly visible rating system
Inconvenience of time and place

11. Credentialing system competition
Eight Core Issues
Eight core wedge issues between business-as-usual and the unstoppable forces of change
Pricing competition
Credentialing system competition
Relationships formed in colleges replaced by other systems and avenues
Loss of trust; realize other avenues can provide knowledge and competency

12. Group Session Question
What are the top 3-5 metrics our institutions should be monitoring over the next few years to monitor the possibility that Thomas Frey’s predictions might be correct?

13. Group Session Question – Report Out - I
Suggested institutional metrics to monitor reported from breakout groups.
Energy and sustainability
Space use efficiency
ROI of space
Percent of virtual courses per student
Overhead costs on both instruction and research
Cost per degree (facilities)
Opportunity cost of unused space

14. Group Session Question – Report Out - II
Suggested institutional metrics to monitor reported from breakout groups.
Exit interview of individuals leaving campus (faculty, staff and students)
Student post graduation employment rate
Student 4 and 6 year graduation rate
Brand value of institution (attractiveness)
Potential of federal government intervention into higher education cost control
Space relevance (space vs. technology)
International competition
Number of online courses competed