FEFPA Conference - 2013

“BEING A GOOD PARTNER WITH YOUR SENIOR LEADERSHIP TEAM”

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E. Lander Medlin, Executive Vice President APPA, “Leadership in Educational Facilities” July 2013 lander@appa.org

My Purpose/ Cover • Pique your interest in what’s on horizon • Understand some myths & misconceptions

surrounding facilities & the profession • Learn more about the trends & issues

impacting facilities & the institution • Discuss strategies to employ • Reinforce expectations, skills, and role of

the facilities professional • Highlight shared role in shaping the future

Myths & Misconceptions . . .

• The value of endowments are the largest institutional asset.

• Facilities represent an institutional ‘cost center’, only.

• Facilities managers primarily possess technical skills.

• Facilities professionals don’t think senior leadership is knowledgeable about facilities issues, priorities, and strategies.

Myths & Misconceptions… (continued)

• When it comes to workplace violence, it won’t happen on my campus!

• Emergency preparedness plans don’t need drilling or practice.

• All campus buildings are equal in their need for maintenance and repair.

• Space is “free”!

Why Do Facilities Matter? • Draw students & parents to you • Aid in recruitment of faculty & staff • Represent a place where learning occurs

in and outside the classroom • Encourage donors to participate with your

institution • Create that sense of community & place • Enhance safety & security • Fill a vital community need

“Good facilities are essential to good learning!”

Ernest Boyer

“Facilities represent the one real constant…

They are heritage and our legacy!

Definition of Facilities Stewardship

“The long term viability and preservation of the most valuable asset your institution owns –

its physical infrastructure.”

Defining Facilities Stewardship • Generational trust –– past, present, future • Unimpaired value

– Traditions – Symbolic campus features – Utility for functional use

• Optimizing capital investments • Commitment to capital asset preservation • Shared responsibility for long-range and continuous

facilities stewardship process • Long view of an institution’s past and future

The Stewardship Role for Facilities:

• A long term view and perspective of Facilities Investment Decisions in such major responsibility areas as: – Planning, Design, & Construction – Maintenance & Operations – Energy & Utilities – Facilities Renewal/ Recapitalization

Facilities Investment Decisions

• Metrics & Measures – Standards (design, space, LEED, sustainability, etc.)

– Costs/square foot ($/gsf)

– Building Systems (various components, life cycle)

– Deferred Maintenance (DM)

– Current Replacement Value (CRV)

– Facilities Condition Assessment (FCI)

– Energy (BTU’s/gsf)

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APPA Thought Leaders Symposium

“Addressing the Changing Landscape of

Higher Education & Its Impact on the Built Environment”

http: www.appa.org/thoughtleaders

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Purpose of annual TLS

“To engage in an annual discussion and distillation of the driving forces, major trends and issues impacting the future of education with particular attention to its built environment.”

TLS Goals • Identify & analyze driving forces & trends

for the education enterprise • Identify critical facilities issues • Enhance institutional dialogue • Connect goals of the facilities operations

with educational outcomes • Help improve performance • Positively impact the future state of

educational facilities

TLS Teams’ Composition

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• Senior Institutional Officers/ Administrators

• Educational Facilities Professionals

TLS Process • Facilitate structured workshops for optimum

engagement & output • Produce written analysis or “brief” • Disseminate publication to education

community • “Free” PDF- Downloadable file

Driving Forces & Trends Impacting Education

• Financial Constraints • Evolving Role of Technology • Changing Stakeholder Expectations • Impact of Competition • Challenges of Changing Demographics • Demand for Innovation & Tradition • Demand for Accountability • Institutional Resistance to Change • Energy Cost & Volatility • Role of Education in Sustainability

Evolving Technology

• TRENDS: – Rate & Pace – Ubiquitous – Increasing ‘adult’ learners – Rising Expectations – Real issues of Integration & Planning – Effective utilization of data/information for

decision-making

Evolving Technology

• CHALLENGES: – Rate & Pace – Need for integration – Aging infrastructure – Lack of strategic planning – Lack of a funding model

Facilities Strategies. . . Technology

• Establish a culture of collaboration & innovation.

• Assess technological innovation’s influence on pedagogy, research, and the built environment.

• Integrate IT & facilities planning to maximize success.

• Leverage technology to improve decision-making & improve productivity.

• Create a new budget model for IT & Facilities

Leverage Technology to Improve Decision-Making…

Issue: Must do better job gathering & analyzing data to make solid & consistent business decisions.

Strategy: Determine current sources of data &

evaluate barrier to using that data. Identify business processes/ decisions in need of better data access & analysis.

Question: Where is the institution already using data

effectively? Can these programs be expanded?

“OWN” YOUR DECISIONS . . . KEY TO GOOD STEWARDSHIP!”

Shifting Workforce/ Workplace • TRENDS: “The Demographics”

– Growth areas – Managerial ‘compression – Decline in ¼ job titles – Most new jobs will require minimum

postsecondary education – Baby Boomers generation growth

Shifting Workforce/ Workplace • CHALLENGES:

– Managing retirements & Knowledge Transfer – Finding “qualified” staff – Dealing with HR policies – Addressing increasing workforce diversity – Keeping up morale/engagement

Facilities Strategies. . . Workforce Demographics • Assess local demographics & impacts • Confront shifting workforce

demographics. • Increase the flexibility of the workplace • Alternatives for Service Delivery • Succession Planning

Increase the Flexibility of the Workplace…

Issue: Education HR policies and procedures need to become more flexible to adjust to a changing workforce.

Strategy: Understand barriers to more flexible

policies & practices; build alliances with key stakeholders; focus on what you can control first.

Question: Which critical stakeholders should be

involved in efforts to increase flexibility? How can we build alliances with the right people?

“COLLABORATION . . . THE NEON SIGN FOR SUCCESS!”

“Without good people, it is practically impossible to ensure good facilities!”

TOP 10 Issues Impacting the Facilities Profession

• Resource Scarcity • Information Technology • Workforce Issues • Deferred Maintenance/ Modernization • Safety & Security • Performance Measurement & Accountability • Energy & Environmental Management • Sustainability • Institutional Resistance to Change • Space Planning & Management

“SPACE . . .the final frontier!”

Why Space Management? Why Now?

”CAMPUS SPACE…An Asset & a Burden” What Is the Most Undermanaged Asset in the educational enterprise? What Is the Largest Space Type On Our Campuses? What Is the Utilization Rate of Our Facility Assets? How Much Has the Cost of a HE Degree Increased Since 1990?

What’s Wrong With the Current System?

• No Core Change to the Academic Model

• Agrarian Schedule • Feudal Ownership • 40-50% Utilization • 60% of $ to New

Construction • Escalating Debt • Space Is “Free”

What’s Wrong With the Current System?

• No Core Change to the Academic Model

“Academics Will Fight Over Money…..and Kill Over Space”

What’s Wrong With the Current System?

• No Core Change to the Academic Model

• Agrarian Schedule

“Can HE Afford the Luxury of Convenience and Tradition?”

What’s Wrong With the Current System?

• No Core Change to the Academic Model

• Agrarian Schedule • Feudal Ownership

“Space, Once Allocated, Generally Becomes a Fixed Asset”…..

What’s Wrong With the Current System?

• No Core Change to the Academic Model

• Agrarian Schedule • Feudal Ownership • 40-50% Utilization • A Crane on Every

Campus • Escalating Debt

What’s Wrong With the Current System?

• No Core Change to the Academic Model

• Agrarian Schedule • Feudal Ownership • 40-50% Utilization • A Crane on Every

Campus • Escalating Debt • Space Is “Free” • Reverse Incentives

Overview of the Problem • Space is Expensive • Space is Underutilized • Poorly Measured • Poorly Managed • Treated as “Free” • Poorly Designed • Can’t be ignored • Unsustainable

Thinking About Space In A New Way

• Space As An Institutional Asset • Challenging Legacy Control Systems • Innovative Thinking About Space • Making Space An Institutional Priority • Centralized Data-Driven Management • Assigning a Cost to Space Decisions

Benefits of Improved Space Management

• Increased productivity & efficiency • Improved student services • Reduced costs • Greater equity • Improved sustainability

The “Institutional Carrot” for Effective Space Management

• 30% Found Space Through Space Mining • Reduced Operating Costs • Reallocation to the Core Mission/Needs • Decreased Demand on Campus Services • Decreased LT Cost Liability • Quality vs Quantity “Space Counting …..Is Not Space Management”

Top Space Management Issues: “Changing the Business Model”

• Align with Mission • Space as An Asset • Policies, Processes, &

Structures • Inventory System & the

Decision Framework • Credible Data and

Metrics • Change the Culture

Changing the Culture Current

• Space As Possession • Feudal Model by

Dept • Allocation by Politics

• Quantity of Space • Hoarding • Space Is “Free” • Institutional Liability

The New Paradigm Space As an Asset Federated Model -Space

Owned by the Inst. Allocation by Metrics and

Strategic Need Quality Space Central Allocation Cost Driven Decisions Mission Driven

The Role of the Facilities Professional in Institutional

Management of Space • Information • Metrics • Condition Assessments • Big-Picture View • Leadership

VALUE OF FACILITIES TO THE EDUCATIONAL ENTERPRISE

APPA Research Study: “The Impact of Facilities on Student

Recruitment and Retention”

Significant Outcome: *30% of students base their decision to

attend a school based on the quality of facilities in their academic major!

Observations & Opinions

15%

49%

27%

7% 2%

Strongly AgreeAgreeFeel NeutralDisagreeStrongly Disagree

“Condition of Facilities Important in Decision”

64% Strongly Agree or Agree

Planning & Policy Implications

• This Research Study is considered useful in: – campus planning and operations of the built

environment; – long range planning for new construction,

maintenance and capital renewal; – guiding collaborative efforts between facilities

management, executive leadership, admissions, housing authorities and student life.

“Good facilities are essential to good learning!”

Ernest Boyer

Reinvesting in Physical Facilities • The finance/ budgeting model fails to encourage

long-term, comprehensive thinking – Consider the unintended consequences – Provide incentives for long-term thinking – Evaluate needs holistically – Assess Capital Renewal/ Deferred Maintenance

requirements in light of sustainability – Advocate for renewal of outdated buildings – Utilize Total Cost of Ownership (TCO) principles/

approach – Establish priorities accordingly

Total Cost of

Ownership

Birth & Burial

Maintenance & Operations Recapitalization

Total Cost of Ownership

Total Cost of Ownership

Full Life Cycle Model: • 27% = Construction

• 40% = O&M/ Utilities

• 33% = Recapitalization

40% O&M/ Utilities 33% Recapitalization

27% Construction

“We shape our buildings then they shape us!”

(Winston Churchill)

Your Institution’s Facilities: • Create that sense of place • Create that sense of community • Create a learning environment • Create that lasting impression • Create the perception of safety &

security

“12 People killed, 27 injured in Texas A&M bonfire collapse”

Creating a Safe & Secure Environment

• Regulations & compliance • Workplace violence • Emergency preparedness • Business continuity • Increasing channels of communication

Addressing Campus Safety and Security

• Conduct Building Security Audits to Understand Threats

• Balance Openness with Security Through Technology

• Collaborate With Security to Develop A Communications Plan

Question: Is a Security Audit Used to Guide Your Planning?

“We measure what we

value. We manage what we measure!”

Supply your data into APPA’s Facilities Core Data Survey web-based tool to measure and gain outputs in the form of Facilities

Performance Indicators.

Demand for Accountability

• Burden of unfunded mandates • Concern for one-size-fits-all reporting • Need for transparency • Burden of competing demands • Use effective strategic planning to set institutional

priorities • Establish performance measures to demonstrate a

culture of evidence & fact-based decision-making

“It’s about value!”

Energy Cost & Volatility

• Energy availability given volatility in the global marketplace

• Market-driven costs fluctuations • Pressure for increased cost containment • Necessity to deliver with 100% reliability • Costs associated with reducing carbon

emissions • Managing trade-offs • Need to mobilize the entire campus

“It’s about managing the risks!”

Create A Sustainable and Efficient Campus

• Build A Culture of Sustainability • Develop and Implement An Energy Policy • Make the Business Case for Efficiency and

Sustainability • Ensure that the Facilities Organization Is

Leading the Charge

Question: Are You Driving the Train OR Standing On the Tracks?

Impact of Institutional Resistance to Change

• Requires built-in agility • Need for continuous improvement processes • Form partnerships • Listen to new ideas • Take a leadership role

“It’s not just about change; it’s about a transformation!”

Resultant Impact . . .

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• Increased stress on: • Your infrastructure, • Your systems, • Your personnel, • Your time.

Requiring . . .

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• More effective leadership • Increased knowledge • Innovative practices • New competencies & skills

“What used to be the profile of the typical facilities manager?”

• Possessed technical skills

• Engineering education or trades background

• Project management experience

Yesterday’s Facilities Manager

• Resource allocation specialist – both staff and materiel

• Maintenance manager

• Energy manager

• Construction manager

• Planner/designer

Today’s Facilities Manager

• Team Builder / Team Player • Human resource Specialist • Communication Specialist • Security czar

• Not to mention . . .

– Parking Attendant – Calendar Coordinator – Bus Driver

Today’s Facilities Manager

Developing The Role of the Facilities Professional

• What are the facility professional’s “Must Have” Traits? • What can facilities professionals do to promote their strategic value? • How can the facilities professional enhance their image?

Traits of the Skilled Facilities Professional

• Cultural Builder • Horizon Thinker • Effective Listener • Articulate

Communicator • Expert Translator • Creative Leader

Promoting Strategic Value to the Institution

• Demonstrate Competency • Develop broader perspective • Align Facilities with

Institutional Mission • Create Opportunities for

Collaboration • Understand Stakeholders’

Needs • Don’t Be the Problem!

Molding , Shaping, & Enhancing the Facilities Professional’s Image

• Love Problems • Promote Self • Be a Go-To Resource • Educate Others/ Teach • Be Visible • Exhibit Confidence • Build Solid Credentials • Have a Plan

YOUR LEADERSHIP ROLE IS STRATEGICALLY IMPORTANT!

Making your facilities a strategic enabler for the institution and its academic

community . . . can only be accomplished through a strong partnership forged between

the facilities professional AND

the senior leadership team.

“The future is won by those creating the future ……..and not the ones trying to

maintain the status quo.”

It’s Your Choice!

CONCLUSION

“The Power is in Your Hands!