Searching for Searching for Excellence Using Excellence Using APPA’s Facilities APPA’s Facilities Performance IndicatorsPerformance Indicators

Presented by Presented by Darryl Boyce Darryl Boyce Maggie Kinnaman Maggie Kinnaman for CAUBO Meeting for CAUBO Meeting Prince Edward Island Prince Edward Island June 2007 June 2007

Higher Education Higher Education

““Education is not about filling a Education is not about filling a pail, it’s about lighting a fire.” pail, it’s about lighting a fire.”

William Butler William Butler YeatsYeats

Objectives of Higher Objectives of Higher EducationEducation

Socialization to Socialization to MaturationMaturation

Training to LearningTraining to Learning Research to Research to

DiscoveryDiscovery Public Service to Public Service to

EngagementEngagement Credentials to Credentials to

Competence Competence Recognition to Recognition to

Credibility Credibility

Why Improve?Why Improve?

What pressures?What pressures? What new and What new and

future challenges?future challenges? What opportunities?What opportunities? What is the cost of What is the cost of

not improving? not improving? What personal What personal

drivers? drivers?

Major Forces Major Forces Impacting Higher Impacting Higher Education Education

Accountability Accountability Educational delivery no Educational delivery no

longer time/place longer time/place sensitive sensitive

Lifelong learningLifelong learning Diminishing resourcesDiminishing resources Competition requires Competition requires

market focusmarket focus Entrepreneurial skills Entrepreneurial skills

necessary necessary Scarce energy Scarce energy

Capital Asset Realities Capital Asset Realities

ConstructioConstruction n

MaintenancMaintenance e

Renewal Renewal Demolition Demolition

Someone once said,

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

Facilities Facilities Management’s Role Management’s Role

Ensure that the buildings and Ensure that the buildings and infrastructure are a strategic infrastructure are a strategic enabler for the business of enabler for the business of higher education higher education

Stewardship role for the largest Stewardship role for the largest capital asset on campus, capital asset on campus, buildings and infrastructure buildings and infrastructure

Facilities Management is Facilities Management is typically the largest typically the largest Administrative Department on Administrative Department on campus so it is ripe for campus so it is ripe for downsizing downsizing

Facilities must be able to tell Facilities must be able to tell their story to decision makers their story to decision makers

We must be accountable for We must be accountable for the assets entrusted to us the assets entrusted to us

What are Facilities What are Facilities Performance Indicators Performance Indicators (FPI)? (FPI)?

Merges CCAS and SAM Merges CCAS and SAM FPI creates a powerful tool FPI creates a powerful tool

for achieving organizational for achieving organizational excellence through excellence through continuous improvement continuous improvement – Organization’s financial Organization’s financial

performanceperformance– Effectiveness of its primary Effectiveness of its primary

processesprocesses– Readiness of employees to Readiness of employees to

embrace the future embrace the future – Ability to delight customers Ability to delight customers

Why Use FPI?Why Use FPI?

Self-AssessmentSelf-Assessment Self-Improvement Self-Improvement Peer comparisonPeer comparison BenchmarkingBenchmarking

Your Roadmap to Your Roadmap to Future Excellence Future Excellence

“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,

Components of FPIComponents of FPI

Balanced ScorecardBalanced Scorecard Quantitative Quantitative

Measurements and Measurements and IndicatorsIndicators

Qualitative Criteria Qualitative Criteria Captured in the Captured in the Performance Levels Performance Levels

Balanced ScorecardBalanced Scorecard

How It All Fits How It All Fits Together Together

Effective ResultsF

inan

cial

Inte

rnal

Em

plo

yees

Cu

sto

mer

s

Strategic PlanningLeadership

Efficiency Versus Efficiency Versus Effectiveness Effectiveness

Efficiency is getting resultsEfficiency is getting results– You can do that if you pay You can do that if you pay

attention to one perspective attention to one perspective Effectiveness is getting Effectiveness is getting

results time and time againresults time and time again– You can only get by paying You can only get by paying

attention to all four attention to all four perspectives perspectives

Financial Perspective Financial Perspective How do we look to How do we look to

resource providers?resource providers?– Reflects organization’s Reflects organization’s

financial integrity financial integrity – Demonstrates stewardship Demonstrates stewardship

responsibility responsibility Capital and financial Capital and financial

resources resources Preservation of physical Preservation of physical

assetsassets

– Linked to the other Linked to the other perspectives through the perspectives through the relationships between cost relationships between cost and the resultsand the results

Internal Process Internal Process Perspective Perspective

At what must we excel? At what must we excel? – Evaluation of delivery of Evaluation of delivery of

primary services primary services AdministrationAdministration Operations and Operations and

maintenancemaintenance Energy and utilities Energy and utilities Planning, design and Planning, design and

constructionconstruction

– Emphasis on Emphasis on improvements and improvements and measuring results measuring results

Innovation and Innovation and LearningLearning

How can we sustain How can we sustain excellence over time? excellence over time? – Creating a high performance Creating a high performance

workplace and a learning workplace and a learning organizationorganization

– Considers how the Considers how the organization enables and organization enables and encourages employees to encourages employees to contribute effectivelycontribute effectively

– Training – leadership and Training – leadership and knowledge sharing knowledge sharing

– Employee well being and Employee well being and satisfactionsatisfaction

Customer Perspective Customer Perspective

How do our customers How do our customers see us? see us? – Considers relationships Considers relationships

with customers with customers – Measures customer Measures customer

satisfaction and satisfaction and performance of services performance of services

– Categories Categories Types of surveysTypes of surveys Primary customer groups Primary customer groups Primary services Primary services

Strategic Financial Strategic Financial Measures Measures

Facility Operating CRV Index Facility Operating CRV Index ($/CRV)($/CRV)

Facility Operating GSF Index Facility Operating GSF Index ($/GSF)($/GSF)

Facility Operating GIE Index Facility Operating GIE Index ($/GIE) ($/GIE)

Capital Renewal Index Capital Renewal Index ($CR+Adapt/CRV)($CR+Adapt/CRV)

Facilities Condition Index Facilities Condition Index ($DM/CRV)($DM/CRV)

Needs Index Needs Index ($DM+CR+Adapt/CRV)($DM+CR+Adapt/CRV)

Facility Operating/CRV Facility Operating/CRV IndexIndex Annual Facility Operating Annual Facility Operating

expenditures ($) Divided by expenditures ($) Divided by Current Replacement Value (CRV) Current Replacement Value (CRV)

Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institution’s annual facilities institution’s annual facilities operating expenditures operating expenditures

Facility Operating/GSF Facility Operating/GSF Index Index Annual Facility Operating Annual Facility Operating

Expenditures ($) Divided By Gross Expenditures ($) Divided By Gross Square Feet (GSF)Square Feet (GSF)

Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institution’s educational and institution’s educational and general capital assets general capital assets

Facility Operating/GIE Facility Operating/GIE Index Index Annual Facility Operating Annual Facility Operating

Expenditures ($) Divided by Gross Expenditures ($) Divided by Gross Institutional Expenditures (GIE)Institutional Expenditures (GIE)

Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institution’s educational and institution’s educational and general capital assets general capital assets

Capital Renewal IndexCapital Renewal Index

Annual Capital Renewal and Annual Capital Renewal and Renovation/Modernization Renovation/Modernization Expenditures ($) Divided By Expenditures ($) Divided By Current Replacement Value (CRV) Current Replacement Value (CRV)

Level of funding expended in Level of funding expended in addressing identified capital addressing identified capital renewal and renewal and renovation/modernization needsrenovation/modernization needs

Facilities Condition Facilities Condition Index (FCI)Index (FCI)

Deferred Maintenance Deferred Maintenance Deficiencies ($) Divided By Deficiencies ($) Divided By Current Replacement Value (CRV)Current Replacement Value (CRV)

Comparative indicator of the Comparative indicator of the relative condition of facilitiesrelative condition of facilities

Needs Index Needs Index

Capital Renewal and Deferred Capital Renewal and Deferred Maintenance Backlog plus Maintenance Backlog plus Renovation/Modernization Need Renovation/Modernization Need ($) Divided by Current ($) Divided by Current Replacement Value (CRV)Replacement Value (CRV)

Overall indicator of campus Overall indicator of campus condition. It is influenced by condition. It is influenced by resource availability and utilizationresource availability and utilization

Internal Process Internal Process Perspective Perspective

Cycle Time (Time to Cycle Time (Time to complete) complete)

Average Age (Average age of Average Age (Average age of active work orders)active work orders)

Backlog (Staff Hrs/FTE Hrs)Backlog (Staff Hrs/FTE Hrs) Energy Usage (BTU/GSF) Energy Usage (BTU/GSF) Estimating Index Estimating Index

($Actual/$Estimate)($Actual/$Estimate) Project Soft Costs Index Project Soft Costs Index

($Soft/Total)($Soft/Total)

Innovation and Innovation and LearningLearning

Employee Climate Survey Employee Climate Survey Employee Focus GroupsEmployee Focus Groups Investment in Training Investment in Training Quality work incentivesQuality work incentives Awards and Recognition Awards and Recognition Job Skills Job Skills

Customer PerspectiveCustomer Perspective

Customer Surveys Customer Surveys Customer Focus Groups Customer Focus Groups

at different levels of the at different levels of the organizationorganization

WEB resources and WEB resources and tools tools

Participation in Participation in Academic briefings Academic briefings

Performance LevelsPerformance Levels

Level 5 PlatinumLevel 5 Platinum Level 4 GoldLevel 4 Gold Level 3 SilverLevel 3 Silver Level 2 BronzeLevel 2 Bronze Level 1 Copper Level 1 Copper

Level 1 - CopperLevel 1 - Copper

No systematic approach No systematic approach Only anecdotal informationOnly anecdotal information

Level 2 – Bronze Level 2 – Bronze

Beginnings of a systematic Beginnings of a systematic programprogram

Major gaps existMajor gaps exist Early stages of improvement Early stages of improvement

orientationorientation Trends of some improvement Trends of some improvement

Level 3 – Silver Level 3 – Silver

Sound systematic programSound systematic program Fact-based improvement for most Fact-based improvement for most

areasareas Emphasis on improvementEmphasis on improvement Improvements in most areasImprovements in most areas No adverse trends No adverse trends Comparisons – good to very goodComparisons – good to very good

Level 4 - GoldLevel 4 - Gold

Sound program with refinements Sound program with refinements Cycles of improvement in many Cycles of improvement in many

to mostto most All primary areas includedAll primary areas included Sustained performance trendsSustained performance trends BenchmarkingBenchmarking Results show leadership in Results show leadership in

performanceperformance

Level 5 – Platinum Level 5 – Platinum (Stretch)(Stretch) Program accomplishes all objectivesProgram accomplishes all objectives Fully deployed for all primary areasFully deployed for all primary areas Emphasis on refinementEmphasis on refinement Cycles of improvement – Mature Cycles of improvement – Mature

programprogram Excellence sustained over several Excellence sustained over several

yearsyears Benchmarking with outside Benchmarking with outside

industriesindustries

Why FPI?Why FPI?

Strategic Tool Strategic Tool – Helps to assess where you are Helps to assess where you are – Describes where you can go Describes where you can go – Outlines the strategies and action Outlines the strategies and action

necessarynecessary

You decide how far to go You decide how far to go

Tailor model for your specific needs Tailor model for your specific needs

Sharing FPI Data Sharing FPI Data Internal Internal

– FM employees FM employees – FM contractors FM contractors – FM administrators FM administrators

Within the institution Within the institution – PlannersPlanners– Financial OfficersFinancial Officers– AcademiciansAcademicians– ResearchersResearchers

Externally Externally – Legislatures Legislatures – Other institutionsOther institutions

Why is Sharing Important? Why is Sharing Important?

Remember the capital Remember the capital asset realities?asset realities?

They cannot be solved They cannot be solved by FM working in by FM working in isolation isolation

FM must educate the FM must educate the institutioninstitution

Engage the institutionEngage the institution Create partnerships Create partnerships Work together to create Work together to create

a strategy to address the a strategy to address the capital asset realitiescapital asset realities

Your Stairway to Your Stairway to ExcellenceExcellence

Understand the context Understand the context within which you operatewithin which you operate

Create partnerships with Create partnerships with your environment your environment

Identify your measurements Identify your measurements of successof success

Strive for balance using four Strive for balance using four perspectivesperspectives

Measure at all levels of the Measure at all levels of the organizationorganization

Share the resultsShare the results Set the bar higher Set the bar higher Identify new strategies Identify new strategies Educate, engage and brief Educate, engage and brief

your partners on how you’re your partners on how you’re doingdoing

Do it all over againDo it all over again Don’t give up!!!! Don’t give up!!!!

“Knowing is not enough; we must apply. Willing is not enough; we must do.”

Johann Wolfgang von Goethe