1. Searching for Excellence Using APPA’s Facilities Performance Indicators Presented by Darryl Boyce Maggie Kinnaman for CAUBO Meeting Prince Edward Island June 2007

2. Higher Education “Education is not about filling a pail, it’s about lighting a fire.” “Education is not about filling a pail, it’s about lighting a fire.” William Butler Yeats

3. Objectives of Higher Education Socialization to Maturation Socialization to Maturation Training to Learning Training to Learning Research to Discovery Research to Discovery Public Service to Engagement Public Service to Engagement Credentials to Competence Credentials to Competence Recognition to Credibility Recognition to Credibility

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

5. Major Forces Impacting Higher Education Accountability Accountability Educational delivery no longer time/place sensitive Educational delivery no longer time/place sensitive Lifelong learning Lifelong learning Diminishing resources Diminishing resources Competition requires market focus Competition requires market focus Entrepreneurial skills necessary Entrepreneurial skills necessary Scarce energy Scarce energy

6. Capital Asset Realities Construction Construction Maintenance Maintenance Renewal Renewal Demolition Demolition

7. Someone once said, “ The mark of insanity is doing the same thing over and over again while expecting a different result.”

8. Facilities Management’s Role Ensure that the buildings and infrastructure are a strategic enabler for the business of higher education Ensure that the buildings and infrastructure are a strategic enabler for the business of higher education Stewardship role for the largest capital asset on campus, buildings and infrastructure Stewardship role for the largest capital asset on campus, buildings and infrastructure Facilities Management is typically the largest Administrative Department on campus so it is ripe for downsizing Facilities Management is typically the largest Administrative Department on campus so it is ripe for downsizing Facilities must be able to tell their story to decision makers Facilities must be able to tell their story to decision makers We must be accountable for the assets entrusted to us We must be accountable for the assets entrusted to us

9. What are Facilities Performance Indicators (FPI)? Merges CCAS and SAM Merges CCAS and SAM FPI creates a powerful tool for achieving organizational excellence through continuous improvement FPI creates a powerful tool for achieving organizational excellence through continuous improvement –Organization’s financial performance –Effectiveness of its primary processes –Readiness of employees to embrace the future –Ability to delight customers

10. Why Use FPI? Self-Assessment Self-Assessment Self-Improvement Self-Improvement Peer comparison Peer comparison Benchmarking Benchmarking Your Roadmap to Future Excellence Your Roadmap to Future Excellence

11. “ I skate to where the puck is going to be, not where it has been.” In the words of the great hockey player Wayne Gretzky,

12. Components of FPI Balanced Scorecard Balanced Scorecard Quantitative Measurements and Indicators Quantitative Measurements and Indicators Qualitative Criteria Captured in the Performance Levels Qualitative Criteria Captured in the Performance Levels

13. Balanced Scorecard

14. How It All Fits Together Effective Results Financial Internal Employees Customers Strategic Planning Leadership

15. Efficiency Versus Effectiveness Efficiency is getting results Efficiency is getting results –You can do that if you pay attention to one perspective Effectiveness is getting results time and time again Effectiveness is getting results time and time again –You can only get by paying attention to all four perspectives

16. Financial Perspective How do we look to resource providers? How do we look to resource providers? –Reflects organization’s financial integrity –Demonstrates stewardship responsibility Capital and financial resources Capital and financial resources Preservation of physical assets Preservation of physical assets –Linked to the other perspectives through the relationships between cost and the results

17. Internal Process Perspective At what must we excel? At what must we excel? –Evaluation of delivery of primary services Administration Administration Operations and maintenance Operations and maintenance Energy and utilities Energy and utilities Planning, design and construction Planning, design and construction –Emphasis on improvements and measuring results

18. Innovation and Learning How can we sustain excellence over time? How can we sustain excellence over time? –Creating a high performance workplace and a learning organization –Considers how the organization enables and encourages employees to contribute effectively –Training – leadership and knowledge sharing –Employee well being and satisfaction

19. Customer Perspective How do our customers see us? How do our customers see us? –Considers relationships with customers –Measures customer satisfaction and performance of services –Categories Types of surveys Types of surveys Primary customer groups Primary customer groups Primary services Primary services

20. Strategic Financial Measures Facility Operating CRV Index ($/CRV) Facility Operating CRV Index ($/CRV) Facility Operating GSF Index ($/GSF) Facility Operating GSF Index ($/GSF) Facility Operating GIE Index ($/GIE) Facility Operating GIE Index ($/GIE) Capital Renewal Index ($CR+Adapt/CRV) Capital Renewal Index ($CR+Adapt/CRV) Facilities Condition Index ($DM/CRV) Facilities Condition Index ($DM/CRV) Needs Index ($DM+CR+Adapt/CRV) Needs Index ($DM+CR+Adapt/CRV)

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

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

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

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

25. Facilities Condition Index (FCI) Deferred Maintenance Deficiencies ($) Divided By Current Replacement Value (CRV) Deferred Maintenance Deficiencies ($) Divided By Current Replacement Value (CRV) Comparative indicator of the relative condition of facilities Comparative indicator of the relative condition of facilities

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

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

28. Innovation and Learning Employee Climate Survey Employee Climate Survey Employee Focus Groups Employee Focus Groups Investment in Training Investment in Training Quality work incentives Quality work incentives Awards and Recognition Awards and Recognition Job Skills Job Skills

29. Customer Perspective Customer Surveys Customer Surveys Customer Focus Groups at different levels of the organization Customer Focus Groups at different levels of the organization WEB resources and tools WEB resources and tools Participation in Academic briefings Participation in Academic briefings

30. Performance Levels Level 5 Platinum Level 5 Platinum Level 4 Gold Level 4 Gold Level 3 Silver Level 3 Silver Level 2 Bronze Level 2 Bronze Level 1 Copper Level 1 Copper

31. Level 1 - Copper No systematic approach No systematic approach Only anecdotal information Only anecdotal information

32. Level 2 – Bronze Beginnings of a systematic program Beginnings of a systematic program Major gaps exist Major gaps exist Early stages of improvement orientation Early stages of improvement orientation Trends of some improvement Trends of some improvement

33. Level 3 – Silver Sound systematic program Sound systematic program Fact-based improvement for most areas Fact-based improvement for most areas Emphasis on improvement Emphasis on improvement Improvements in most areas Improvements in most areas No adverse trends No adverse trends Comparisons – good to very good Comparisons – good to very good

34. Level 4 - Gold Sound program with refinements Sound program with refinements Cycles of improvement in many to most Cycles of improvement in many to most All primary areas included All primary areas included Sustained performance trends Sustained performance trends Benchmarking Benchmarking Results show leadership in performance Results show leadership in performance

35. Level 5 – Platinum (Stretch) Program accomplishes all objectives Program accomplishes all objectives Fully deployed for all primary areas Fully deployed for all primary areas Emphasis on refinement Emphasis on refinement Cycles of improvement – Mature program Cycles of improvement – Mature program Excellence sustained over several years Excellence sustained over several years Benchmarking with outside industries Benchmarking with outside industries

36. Why FPI? Strategic Tool Strategic Tool –Helps to assess where you are –Describes where you can go –Outlines the strategies and action necessary You decide how far to go Tailor model for your specific needs

37. Sharing FPI Data Internal Internal –FM employees –FM contractors –FM administrators Within the institution Within the institution –Planners –Financial Officers –Academicians –Researchers Externally Externally –Legislatures –Other institutions

38. Why is Sharing Important? Remember the capital asset realities? Remember the capital asset realities? They cannot be solved by FM working in isolation They cannot be solved by FM working in isolation FM must educate the institution FM must educate the institution Engage the institution Engage the institution Create partnerships Create partnerships Work together to create a strategy to address the capital asset realities Work together to create a strategy to address the capital asset realities

39. Your Stairway to Excellence Understand the context within which you operate Understand the context within which you operate Create partnerships with your environment Create partnerships with your environment Identify your measurements of success Identify your measurements of success Strive for balance using four perspectives Strive for balance using four perspectives Measure at all levels of the organization Measure at all levels of the organization Share the results Share the results Set the bar higher Set the bar higher Identify new strategies Identify new strategies Educate, engage and brief your partners on how you’re doing Educate, engage and brief your partners on how you’re doing Do it all over again Do it all over again Don’t give up!!!! Don’t give up!!!!

40. “Knowing is not enough; we must apply. Willing is not enough; we must do.” Johann Wolfgang von Goethe