FACILITY PERFORMANCE MEASURES MAKING ALL OF YOUR DREAMS COME TRUE BY CHANGING YOUR METRICS

Transcription

1 FACILITY PERFORMANCE MEASURES MAKING ALL OF YOUR DREAMS COME TRUE BY CHANGING YOUR METRICS

2 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

3 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?

4 SNAPSHOT OF COMMON MEASURES Commonly used measures (both federal and private sector) include the Metric following 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%

5 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) Operating Costs Security/Risk Health and Safety Condition Energy Consumption Accessibility Utilization

6 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

7 IS THERE A BETTER WAY? 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 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

8 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?

9 APPROACH TO EVALUATING, THEN ADVANCING MEASURES Inventory current measures and gaps Use logic models to identify new Develop implementation plan

10 MISSION, VISION, GOALS, AND OBJECTIVES HIERARCHY Mission Vision Goals Objectives Organization purpose and function Desired future state Broad direction Specific activities, the how (should be tangible and time-bound)

11 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 Goal 1: Financial Sustainability Objective 1.1: Work collaboratively across NPS to quantify, document, and gain commitment to funding long-term operations, maintenance, and recapitalization costs

12 INVENTORY CURRENT MEASURES Mission Vision Goals Objectives Measures Owner Data elements Comment

13 FACILITIES DIVISION WITHIN A LARGE UNIVERSITY Mission Vision Goals Objectives Measures Owner Data elements 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 Comment

14 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

15 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

16 MORE DETAIL ON MEASUREMENT TYPES Resource Workload Output To measure various types of resources supporting a program Ex. Number of teachers, number of computer work stations Productivity Represent resource requirements of work backlog Ex. Number of production hours to complete job in queue Efficiency Represent direct products of purposeful application of inputs Ex. Number of job trainings conducted, hrs. work performed Service Quality Measure rate of production per some specific unit of resource Ex. # of flight segments handled per air traffic controller per hour Effectiveness Look specifically at outputs to the dollar cost/resources consumed Ex. Cost per crime investigated or per diem (cost per day) Cost-Effectiveness Looks at value provided against some SOP or preconception Ex. Controller errors per # flights or quality assurance scores Customer Satisfaction Degree to which program is achieving intended result Ex. # of mid-air collisions or initial admissions needing re-admission Relate cost to outcome measures Ex. Cost per client placed in suitable employment 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

17 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)

18 LOGIC MODEL COMPONENT: DATA Data Process Output Objective Outcome Data Definition 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 Examples Budget to plow snow Size of portfolio Number of facilities staff available

19 LOGIC MODEL COMPONENT: PROCESS Data Process Output Objective Outcome Process Definition 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 Examples Cost per assessment Number of work orders completed/day Amount of travel time/day

20 LOGIC MODEL COMPONENT: OUTPUT Data Process Output Objective Outcome Output Definition 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 Examples Number of assessments completed Percent buildings with asbestos Number of remediation projects completed

21 LOGIC MODEL COMPONENT: OBJECTIVE OUTCOME Data Process Output Objective Outcome Objective Outcome Definition 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) Examples Customer satisfaction Extended facility useful life Reduced deterioration rate

22 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

23 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 FINANCIAL To succeed financially, how should we appear to shareholders? 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 CUSTOMER To achieve our vision, how should we appear to our customers? VISION AND STRATEGY BUSINESS PROCESS To satisfy shareholders and customers, what business processes must we excel at? Balanced can be viewed along three dimensions financial/non-financial, leading/lagging, output/outcome LEARNING & GROWTH To achieve vision, how will we sustain an ability to change and improve?

24 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.

25 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

26 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