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AGENDA AND GOALS
Where are we?
How we think about measures
Current challenges
Opportunities for change
Inventory current measures against organization goals, note gaps
Use logic models to identify potential new measures
Develop an implementation plan
The goal?
To have profoundly inspiring dialog that changes how we think about facilities performance metrics forever... or to
have an interesting discussion that helps spark some ideas on how we can lead and shape our facility programs to
get the best return on the time and resources
WHERE WE ARE TODAY…
Regarding our facility performance measures, the good news is that we have …
More data with increasing quality and completeness
A common lexicon with more uniformity and transparency
Increasing confidence in using our data to understand and report condition and investment information at the
asset and project levels
Starting dipping our toes into system level tracking such as energy consumption meters
Some challenges are..,.
More data has led to a proliferation of (not necessarily useful) metrics
We haven’t yet found the sweet spot of what data is needed to answer nagging questions. For example,
operating costs, space utilization, and return on investment continue to be elusive
We know more and, hence, make more informed decisions. Right?
Are we better off?
SNAPSHOT OF COMMON MEASURES
Commonly used measures (both federal and private sector) include the
following…
Table adapted from, “The Best Practices in Facility Management: Creating an Environment of Operational Excellence” by Kit Tuveson,
CFM, IFMA Fellow & Chris Hodges, P.E., CFM, LEED-AP, FRICS, IFMA Fellow
Metric Description Standard Metric Description Standard
Facility Condition Index (FCI) <0.05 Stockroom Turns / Year 2 - 3
Deferred Maintenance Backlog Trend Annual Training Hours >40 hrs.
On-the-job Wrench Time >60% Maint. Cost / Replacement Cost 3 - 4%
PM / CM Ratio 70 / 30 Percent Return Work <5%
Unscheduled Maintenance Downtime <2% Mean Time Between Failures Trend
PM Schedule Compliance >95% % Failures Assessed: Root Cause >75%
CM Schedule Compliance >90% Maintenance OT Percentage 5-15%
Unscheduled Man-Hours <10% % WO Covered by Estimates >90%
WO Turn-Around Time Trend On-Site Supervisor Time >65%
Emergency Response Time <15 min.2 Stockroom On-Time Delivery >97%
Stockroom Service Level >97% Material / Part Performance >98%
MANY MEASURES, INCONSISTENT IMPACT
Managers now have volumes of information from
which to make good decisions
But challenges persist…
Lack of sufficient, high-quality data continues
to be a problem
Overwhelming number of metrics, lack of
focus
Metrics are backward looking, few forecast
problems with sufficient lead time to make
course adjustments
Difficultly pinpointing impact of decisions on
portfolio (lag in results, many different factors
contributing)
Condition
Accessibility
Utilization
Energy Consumption
Health and Safety
Security/Risk
Operating Costs
HOW WE COLLECTIVELY THINK ABOUT MEASURES
Our thinking on performance measures has been
influenced by…
Private sector’s need to demonstrate return on
investment and ensure facilities are meeting
strategic needs
Academic approaches to balanced scorecard
Trying to use the data that is increasingly
available through assessments, auto collection
(metering), some qualitative feedback
Changing architectural and user preferences
towards flexible, universal design
Increasing system interoperability
What we often overlook when
creating measures…
• The customer or occupant
• Long-term mission fit
• Portfolio agility and flexibility
• Business or program value
created as a result of
maintaining the portfolio
IS THERE A BETTER WAY?
You likely believe there is a better way to….
• Streamline current metrics
• More precisely address organizational mission,
vision, goals, and objectives
• Work with management team to agree to
discreet set
• Align investment decisions, begin tracking real
impact
• Look for opportunities to combine facilities data
with other organizational data
So if you believe facilities should…
• Support organization’s strategic direction
• Enhance productivity and effectiveness, not
detract from it
• Continually demonstrate a high return on
investment
• Help minimize the organization’s total cost of
ownership by continually seeking ways to
streamline and improve operations
• Support the organization’s pride and ability to
attract and retail high-quality employees
BROAD FACILITY CHALLENGES
To begin to answer the question, “where do we go from here?”,
it’s worthwhile to agree that while our portfolios are incredibly
diverse, there are common set of challenges.
Continued deterioration
Portfolio function mismatch with future organizational needs
Difficultly in procuring skilled labor
Inefficient dispatch and routing
Others?
Based on the challenges identified, what data would be needed
to assess the current state and predict the future outcome?
Armed with this information, how would facilities improve?
APPROACH TO EVALUATING, THEN ADVANCING MEASURES
Inventory current measures and gaps
Use logic models to identify new
Develop implementation
plan
MISSION, VISION, GOALS, AND OBJECTIVES HIERARCHY
Mission
Vision
Goals
Objectives
Organization purpose and
function
Desired future state
Specific activities, the
“how” (should be tangible
and time-bound)
Broad direction
A PROGRAMMATIC EXAMPLE FROM THE NATIONAL PARK
SERVICE
Mission
Vision
Goals
Objectives
Provide stewardship of
facilities through life-cycle
asset management
Be global leaders in efficient
and effective life-cycle asset
management
Objective 1.1: Work collaboratively across
NPS to quantify, document, and gain
commitment to funding long-term
operations, maintenance, and
recapitalization costs
Goal 1: Financial
Sustainability
INVENTORY CURRENT MEASURES
Mission Vision Goals Objectives Measures Owner Data
elements
Comment
1.
2.
1.1
1.2
•
•
2.1
2.2
•
•
3.
4.
3.1
3.2
•
•
4.1
4.2
•
•
FACILITIES DIVISION WITHIN A LARGE UNIVERSITY
Mission Vision Goals Objectives Measures Owner Data
elements
Comment
To support
the mission
of the
university
by
providing
and
maintaining
a safe and
sustainable
learning
environmen
t
Be
recognized
by the
campus
community
for
excellence
in service
and to
support the
learning
environment
1. Maintain,
repair and
renovate
university
structures
2. Provide
construction
services
including
building
design, and
cost estimates
•
•
•
•
3. Provide
uninterrupted
electrical and
utility services
4. Establish a
progressive
safety & risk
management
program to
prevent
workplace
injuries
•
•
•
•
MAKING THE MOST OF THE MEASURES INVENTORY
Populate the tracker with input from a variety of sources
Schedule time with key program leads to share the findings
Use spreadsheet with the filter function to ease sorting
Capture comments and caveats within the same spreadsheet
Note duplicate or overlapping measures
Flag similar measures that appear from multiple owners or sources, as this may indicate some
organizational priority or importance
MEASUREMENT TYPES
Commonly used measures include: input, process,
output, and outcome
Output measures might include hours on preventive
maintenance work orders, highway miles
constructed, and project funds spent
Associated outcome measures then might include
reduction in breakdown maintenance, improved
traffic flow, and improved asset condition
Measures can also be leading or lagging
Leading measures are future-looking and can help
predict or foreshadow a key output or outcome (e.g.,
future condition based on available funding or
deterioration rates, planned training hours)
Lagging measures are historically-oriented and refer
to past events, outputs, or outcomes (e.g., O&M
spending, staff turn-over, safety incidents)
Types of performance measures include…
Resource/Workload
Output
Efficiency
Productivity
Service Quality and Effectiveness
Cost Effectiveness
Customer Satisfaction
Resource
To measure various types of resources supporting
a program
Ex. Number of teachers, number of computer
work stations
Workload
Represent resource requirements of work backlog
Ex. Number of production hours to complete job in
queue
Output
Represent direct products of purposeful
application of inputs
Ex. Number of job trainings conducted, hrs.
work performed
Productivity
Measure rate of production per some specific unit
of resource
Ex. # of flight segments handled per air traffic
controller per hour
Efficiency
Look specifically at outputs to the dollar
cost/resources consumed
Ex. Cost per crime investigated or per diem (cost
per day)
Service Quality
Looks at value provided against some SOP or
preconception
Ex. Controller errors per # flights or quality
assurance scores
Effectiveness
Degree to which program is achieving intended
result
Ex. # of mid-air collisions or initial admissions
needing re-admission
Cost-Effectiveness
Relate cost to outcome measures
Ex. Cost per client placed in suitable employment
Customer Satisfaction
Related to service quality but provide an unique
perspective
Ex. Number of complaints, customer satisfaction
index
Poister, Theodore. (2003) Measuring Performance in Public and NonProfit Organizations. Jossey-Bass, Chapters 2 and 3
MORE DETAIL ON MEASUREMENT TYPES…
USE LOGIC MODELS
Logic models– based on organization’s mission, vision, goals, and objectives– will help you sort through
what’s good, what’s not worth the effort, and where the gaps might be
Why use logic models?
Provide focus on objective outcome
Help to identify data and process needed
Communicate priorities and strategies
Measure what is strategically important, rather than simply what is easily measured
Establish accountability for program goals
Often we actually help organizations focus on measuring intermediate outcomes when end outcomes
are not directly achievable (e.g., incremental condition improvement resulting from project investment
compared to asset functioning for full 50 year life-cycle)
LOGIC MODEL COMPONENT: DATA
Data Process Output Objective Outcome
Data Definition Examples
Describes information generated and available
(budget, condition, material cost, etc.)
Other types describe demand or request for services
from a program
Can often help identify program gaps
Budget to plow snow
Size of portfolio
Number of facilities staff
available
LOGIC MODEL COMPONENT: PROCESS
Data Process Output Objective Outcome
Process Definition Examples
Business practices or activities that impact the facilities
Can help in diagnosing inefficiencies and identifying
needed process improvements
Usually a big part of Lean Six Sigma, Earned Value
Management, and related measurement efforts
Cost per assessment
Number of work orders
completed/day
Amount of travel time/day
LOGIC MODEL COMPONENT: OUTPUT
Data Process Output Objective Outcome
Output Definition Examples
Describes products and services that are produced by
processes and activities
Typical output measures gauge quantity of products or
services delivered to customers
Often get a bad rap because this type of measure
proliferates – i.e., it is always easier to count widgets then
it is to assess impact of those widgets
Number of assessments
completed
Percent buildings with
asbestos
Number of remediation
projects completed
LOGIC MODEL COMPONENT: OBJECTIVE OUTCOME
Data Process Output Objective Outcome
Objective Outcome Definition Examples
Communicate value activity or program delivers to its
stakeholders
Reflect achievement of program’s long-term performance
goal
Note outcome measures are often divided into
intermediate (e.g., annual energy cost reduction) and end
outcomes (e.g., reduction in portfolio’s green house gas
emissions)
Customer satisfaction
Extended facility useful life
Reduced deterioration rate
ALL TYPES OF MEASURES CAN ADD VALUE
Each type of measure is valuable in different situations
Together, a refined set can be used as a “portfolio” to help gauge progress, efficiency, and impact
Data Process Output Objective Outcome
NOW WHAT?
Once you’ve stepped through the logic models, you’ll have a potential new set of metrics plus some that will be phased out
A good check on the proposed measure set is to evaluate against a tool like the Balanced Scorecard (developed by Kaplan/Norton in a series of Harvard Business Review articles)
Purpose is to integrate measures derived from strategy
Balanced can be viewed along three dimensions – financial/non-financial, leading/lagging, output/outcome
FINANCIAL
To succeed financially,
how should we appear
to shareholders?
LEARNING &
GROWTH
To achieve vision, how
will we sustain an ability
to change and improve?
CUSTOMER
To achieve our vision,
how should we appear
to our customers?
BUSINESS PROCESS
To satisfy shareholders
and customers, what
business processes
must we excel at?
VISION
AND
STRATEGY
DEVELOP AN PERFORMANCE PLAN
With a new measure set, the data collection and
business practices will (or likely will) change
Develop a phased approach to integrating priority
metrics over time
Refine dashboards to include new metrics
Develop a communication plan to share the
changes and drivers with stakeholders
Set expectations on when key stakeholder groups
might begin seeing reports
Identify applicable benchmarks
An effective performance plan:
Includes a master list of performance
measures that comprehensively addresses
all program objectives
Incorporates stakeholder expectations and
includes a comprehensive data dictionary to
support the development of dashboards that
summarize the measures, the data source,
the frequency of measure, and the review
process, and
Consolidates reporting into a streamlined
format for tracking and monitoring
performance.
EXAMPLES FROM OTHER INDUSTRIES…
Considering other industry metrics can be informative. Here are a couple examples…
Universities: Three metrics are key-- quantity of space, suitability of space, and quality of space
Health care: “We live, breathe and die by our customer satisfaction scores,” said one health care facility
executive. “It’s one more thing you can use as a barometer to demonstrate that the physical environment has an
impact on patients and staff. We need to work harder at providing measured outcomes of what the real estate is
intended to deliver.”
Public education and healthcare: Exam room/classroom usage time. Downtime offered to other departments to
share for anything in use less than 50% of the time
Many organizations leverage other data sources– specifically cited the DOE‘s available data for Energy Star
buildings
REFERENCES
Gary R. Bettger, Professor at University of Delaware course in Performance Management, Fall 2012
“Performance Measurement in Facility Management The Environment Management Maturity Model BEM3,” by Thomas Madritsch and Matthias Ebinger, Journal of Economics, Business, and ICT, Volume 2, 2011
“The Best Practices in Facility Management: Creating an Environment of Operational Excellence,” by Kit Tuveson, CFM, IFMA Fellow & Chris Hodges, P.E., CFM, LEED-AP, FRICS, IFMA Fellow
“Facility Executives Discuss Data Management, Performance Metrics, and Communication Strategies That Can Help Strengthen Key Relationships,” by Ed Sullivan, Facilities Management, May 2005
“Key Performance Indicators for Federal Facilities Portfolios”, Cable Davis (2010), Federal Facilities Council Technical Report #147, The National Academies Press, Washington, DC8
“Key Performance Indicators for Strategic Healthcare Facilities Maintenance”, Shoet (2006), Journal of Construction Engineering and Management, Vol. 132, No. 4, pp. 345-352