1. Key Performance Indicators for measurement of portfolio performance

2. Objectives Improve portfolio performance Improve the efficiency & effectiveness of service delivery

5. Changing Face of FM In the 1980’s and 1990’s research in the US showed that the facilities were seen as an expense and not closely linked to corporate objectives. As competition increased, all costs were scrutinised, including facilities costs. Organisations to take a more integrated approach to managing all resources (people, IT, facilities and money)

6. Changing Face of FM

7. Key Questions Senior Executives of Corporations asked the following questions:- What facilities do we have? What condition are they in? What facilities are needed to support the mission? What problems & issues need to be addressed? How much are we investing? How much do we need to invest? What are the outcomes of this investment?

8. Key Questions To improve decision making and management of portfolio investments, organisations must track:- Performance measures that reflect facility portfolios The level of alignment with the organisations mission. Investment levels and investment outcomes. This presentation will examine key performance indicators that support portfolio management.

14. Lesson 1 Like Universities, tow truck companies often underestimate the resources required to do the job

15. Key Questions

25. Lesson 2 If in doubt …… get a bigger truck

26. What facilities are required to support the mission? 1.Is there enough space to support the mission? 2.Is that space aligned to the mission? Is it the right type of space? 3.Does the level of service provided by the space support the mission?

27. Measurement of space A standard definition of space types Defined space allocation standards An assessment of actual space vs the standard Required outcome – Asset Utilisation Index (AUI)

28. Level of Service

29. Key Measures of Level of Service Facility Condition Index (FCI) Facility Functionality Index (FFI) Facility Needs Index (FNI)

30. How much do we invest? Need to disseminate expenditure on current portfolio vs growth. Focus here on “maintaining” the portfolio. Main focus usually is on maintenance with the Maintenance Index (MI) used as the main guide. Degree of capital investment in renewal refurbishment of the portfolio also needs to be considered (Capital Renewal Index).

31. How much do we need to invest? For the existing portfolio, it will be the level of expenditure required to deliver the targeted FCI, FFI and/or FNI. For changing the portfolio, it will be the expenditure required for growth.

32. Key Question/Goal Attained Key Performance IndicatorCalculationComment What facilities do we have? Asset Replacement Value (ARV) Consultancy by finance every 5 years. Need to look at tracking measure in intermediate years AgeCurrent Year – Year Constructed Building EfficiencyUseable Floor Area (GFA)/ Gross Floor Area (UFA) % Space TypeDefines the amount of space available by space type. What Condition are they in? Facility Condition Index (FCI)(1 – (Maintenance Backlog/ARV))% Maintenance Backlog What facilities are needed to support mission? Asset Utilisation Index (AUI)(Inventory Space (GFA) / Theoretical Space (m2))% Needs to be a product of the space standards revision. Facility Functionality Index (FFI) Capital Renewal/Compliance requirements/ARVNeeds to be well defined so that it is consistently measurable How much do we invest Capital Renewal Index (CRI)Capital Renewal Expenditure / ARVNeeds to be well defined so that it is consistently measurable Maintenance Index (MI)Annual Maintenance Budget / ARV How much do we need to invest? Facility Condition Index (FCI)(1 – (Maintenance Backlog/ARV))% Facility Functionality Index (FFI) Capital Renewal/Compliance requirements/ARVNeeds to be well defined so that it is consistently measurable Needs Index (FNI)Capital Renewal + Backlog / ARVNeeds further investigation to decide if this measure is of Benefit

33. KPIBuilding/CampusSpace TypeBuilding Element AUI  CRI  MI  FCI  FFI  FNI 

34. TEFMA Benchmarking Are the TEFMA benchmarks strategic? Do they focus on portfolio performance (strategic) or service delivery (tactical)? THEY HAVE A BIT OF BOTH

35. Key Performance IndicatorsTEFMAAPPA Asset Utilisation Index (AUI) Capital Renewal Index (CRI)  Maintenance Index (MI)  Facility Condition Index (FCI)  Facility Functionality Index (FFI)  Facility Needs Index (FNI) 

37. Lesson 3..... Still not big enough. Obviously did not fully understand the problem before adding more resources.

40. Way forward to make TEFMA benchmarks more strategic Focus on developing definitions and standards for space so that AUI can be assessed. Do more work on formulating FFI Define and include CRI in the current benchmarks

42. Lesson 4 Pay attention to lessons 2 & 3.