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Searching for Excellence Searching for Excellence Using Using APPAAPPA’’ss Facilities Facilities Performance IndicatorsPerformance Indicators
Presented by Presented by Maggie Kinnaman Maggie Kinnaman for NCFMTC Conference for NCFMTC Conference Boston, Massachusetts Boston, Massachusetts August 2007 August 2007
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Higher Education Higher Education
““Education is not about filling a pail, Education is not about filling a pail, itit’’s about lighting a fire.s about lighting a fire.””
William Butler YeatsWilliam Butler Yeats
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Objectives of Higher Objectives of Higher EducationEducation
Socialization to Socialization to MaturationMaturationTraining to LearningTraining to LearningResearch to DiscoveryResearch to DiscoveryPublic Service to Public Service to EngagementEngagementCredentials to Credentials to Competence Competence Recognition to Recognition to Credibility Credibility
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Why Improve?Why Improve?
What pressures?What pressures?What new and future What new and future challenges?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?
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Major Forces Impacting Major Forces Impacting Higher Education Higher Education
Accountability Accountability Educational delivery no Educational delivery no longer time/place sensitive longer time/place sensitive Lifelong learningLifelong learningDiminishing resourcesDiminishing resourcesCompetition requires market Competition requires market focusfocusEntrepreneurial skills Entrepreneurial skills necessary necessary Scarce energy Scarce energy
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Capital Asset Realities Capital Asset Realities
Construction Construction Maintenance Maintenance Renewal Renewal Demolition Demolition
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Facilities ManagementFacilities Management’’s s Role Role
Ensure that the buildings and Ensure that the buildings and infrastructure are a strategic infrastructure are a strategic enabler for the business of higher enabler for the business of higher education education Stewardship role for the largest Stewardship role for the largest capital asset on campus, buildings capital asset on campus, buildings and infrastructure and infrastructure We must be accountable for the We must be accountable for the assets entrusted to us assets entrusted to us Facilities must be able to tell their Facilities must be able to tell their story to decision makersstory to decision makersEngage other Administrative staff Engage other Administrative staff and Academiciansand AcademiciansFacilitate a discussion of capital Facilitate a discussion of capital asset realities asset realities
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What are Facilities What are Facilities Performance Indicators (FPI)? Performance Indicators (FPI)?
FPI creates a powerful tool for FPI creates a powerful tool for achieving organizational achieving organizational excellence through continuous excellence through continuous improvement improvement –– OrganizationOrganization’’s financial 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
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Why Use FPI?Why Use FPI?
SelfSelf--AssessmentAssessmentSelfSelf--Improvement Improvement Peer comparisonPeer comparisonBenchmarkingBenchmarking
Your Roadmap to Your Roadmap to Future Excellence Future Excellence
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Components of FPIComponents of FPI
Balanced ScorecardBalanced ScorecardQuantitative Quantitative Measurements and Measurements and IndicatorsIndicatorsQualitative Criteria Qualitative Criteria Captured in the Captured in the Performance Levels Performance Levels
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Balanced ScorecardBalanced Scorecard
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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
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Financial Perspective Financial Perspective How do we look to resource How do we look to resource providers?providers?–– Reflects organizationReflects organization’’s s
financial integrity financial integrity –– Demonstrates stewardship Demonstrates stewardship
responsibility responsibility Capital and financial resources Capital and financial resources Preservation of physical assetsPreservation of physical assets
–– 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
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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 AdministrationAdministrationOperations and maintenanceOperations and maintenanceEnergy and utilities Energy and utilities Planning, design and Planning, design and constructionconstruction
–– Emphasis on improvements Emphasis on improvements and measuring results and measuring results
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Innovation and LearningInnovation and Learning
How can we sustain excellence How can we sustain excellence over time? over time? –– Creating a high performance Creating a high performance
workplace and a learning workplace and a learning organizationorganization
–– Considers how the organization Considers how the organization enables and encourages enables and encourages employees to contribute effectivelyemployees to contribute effectively
–– Training Training –– leadership and leadership and knowledge sharing knowledge sharing
–– Employee well being and Employee well being and satisfactionsatisfaction
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Customer Perspective Customer Perspective
How do our customers see How do our customers see us? us? –– Considers relationships with Considers relationships with
customers customers –– Measures customer satisfaction Measures customer satisfaction
and performance of services and performance of services –– Categories Categories
Types of surveysTypes of surveysPrimary customer groups Primary customer groups Primary services Primary services
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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 ($/GIE) Facility Operating GIE Index ($/GIE) Capital Renewal Index Capital Renewal Index ($($CR+AdaptCR+Adapt/CRV)/CRV)Facilities Condition Index Facilities Condition Index ($DM/CRV)($DM/CRV)Needs Index ($Needs Index ($DM+CR+AdaptDM+CR+Adapt/CRV)/CRV)
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Facility Operating/CRV Facility Operating/CRV IndexIndex
Annual Facility Operating expenditures Annual Facility Operating expenditures ($) Divided by Current Replacement ($) Divided by Current Replacement Value (CRV) Value (CRV) Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institutioninstitution’’s annual facilities operating s annual facilities operating expenditures expenditures
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Facility Operating/GSF Facility Operating/GSF Index Index
Annual Facility Operating Expenditures Annual Facility Operating Expenditures ($) Divided By Gross Square Feet ($) Divided By Gross Square Feet (GSF)(GSF)Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institutioninstitution’’s educational and general s educational and general capital assets capital assets
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Facility Operating/GIE Facility Operating/GIE Index Index
Annual Facility Operating Expenditures Annual Facility Operating Expenditures ($) Divided by Gross Institutional ($) Divided by Gross Institutional Expenditures (GIE)Expenditures (GIE)Level of funding provided for the Level of funding provided for the stewardship responsibility of the stewardship responsibility of the institutioninstitution’’s educational and general s educational and general capital assets capital assets
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Capital Renewal IndexCapital Renewal Index
Annual Capital Renewal and Annual Capital Renewal and Renovation/Modernization Renovation/Modernization Expenditures ($) Divided By Current Expenditures ($) Divided By Current Replacement Value (CRV) Replacement Value (CRV) Level of funding expended in Level of funding expended in addressing identified capital renewal addressing identified capital renewal and renovation/modernization needsand renovation/modernization needs
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Facilities Condition Index Facilities Condition Index (FCI)(FCI)
Deferred Maintenance Deficiencies ($) Deferred Maintenance Deficiencies ($) Divided By Current Replacement Value Divided By Current Replacement Value (CRV)(CRV)Comparative indicator of the relative Comparative indicator of the relative condition of facilitiescondition of facilities
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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 Replacement Value Divided by Current Replacement Value (CRV)(CRV)Overall indicator of campus condition. Overall indicator of campus condition. It is influenced by resource availability It is influenced by resource availability and utilizationand utilization
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Internal Process Internal Process Perspective Perspective
Cycle Time (Time to complete) Cycle Time (Time to 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)
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Innovation and LearningInnovation and Learning
Employee Climate Survey Employee Climate Survey Employee Focus GroupsEmployee Focus GroupsInvestment in Training Investment in Training Quality work incentivesQuality work incentivesAwards and Recognition Awards and Recognition Job Skills Job Skills
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Customer PerspectiveCustomer Perspective
Customer Surveys Customer Surveys Customer Focus Groups Customer Focus Groups at different levels of the at different levels of the organizationorganizationWEB resources and tools WEB resources and tools Participation in Academic Participation in Academic briefings briefings
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Performance LevelsPerformance Levels
Level 5 PlatinumLevel 5 PlatinumLevel 4 GoldLevel 4 GoldLevel 3 SilverLevel 3 SilverLevel 2 BronzeLevel 2 BronzeLevel 1 Copper Level 1 Copper
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Level 1 Level 1 -- CopperCopper
No systematic approach No systematic approach Only anecdotal informationOnly anecdotal information
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Level 2 Level 2 –– Bronze Bronze
Beginnings of a systematic programBeginnings of a systematic programMajor gaps existMajor gaps existEarly stages of improvement Early stages of improvement orientationorientationTrends of some improvement Trends of some improvement
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Level 3 Level 3 –– Silver Silver
Sound systematic programSound systematic programFactFact--based improvement for most based improvement for most areasareasEmphasis on improvementEmphasis on improvementImprovements in most areasImprovements in most areasNo adverse trends No adverse trends Comparisons Comparisons –– good to very goodgood to very good
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Level 4 Level 4 -- GoldGold
Sound program with refinements Sound program with refinements Cycles of improvement in many to Cycles of improvement in many to mostmostAll primary areas includedAll primary areas includedSustained performance trendsSustained performance trendsBenchmarkingBenchmarkingResults show leadership in Results show leadership in performanceperformance
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Level 5 Level 5 –– Platinum Platinum (Stretch)(Stretch)
Program accomplishes all objectivesProgram accomplishes all objectivesFully deployed for all primary areasFully deployed for all primary areasEmphasis on refinementEmphasis on refinementCycles of improvement Cycles of improvement –– Mature Mature programprogramExcellence sustained over several Excellence sustained over several yearsyearsBenchmarking with outside industriesBenchmarking with outside industries
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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
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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
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Why is Sharing Important? Why is Sharing Important?
Remember the capital asset Remember the capital asset realities?realities?They cannot be solved by They cannot be solved by FM working in isolation FM working in isolation FM must educate the FM must educate the institutioninstitutionEngage the institutionEngage the institutionCreate partnerships Create partnerships Work together to create a Work together to create a strategy to address the strategy to address the capital asset realitiescapital asset realities
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Your Stairway to ExcellenceYour Stairway to ExcellenceUnderstand the context within Understand the context within which you operatewhich you operateCreate partnerships with your Create partnerships with your environment environment Identify your measurements of Identify your measurements of successsuccessStrive for balance using four Strive for balance using four perspectivesperspectivesMeasure at all levels of the Measure at all levels of the organizationorganizationShare the resultsShare the resultsSet the bar higher Set the bar higher Identify new strategies Identify new strategies Educate, engage and brief your Educate, engage and brief your partners on how youpartners on how you’’re doingre doingDo it all over againDo it all over againDonDon’’t give up!!!! t give up!!!!
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“Knowing is not enough;we must apply.
Willing is not enough; we must do.”
Johann Wolfgang von Goethe
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Keeping it All in Keeping it All in Perspective Perspective
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How to contact meHow to contact me
Maggie Kinnaman at the University of Maggie Kinnaman at the University of Maryland, Baltimore Maryland, Baltimore [email protected]@af.umaryland.edu