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If You Can't Measure It, You Can't Manage It
- 1. If You Can’t Measure It, You Can’t Manage It NACAS 46TH ANNUAL CONFERENCE MONTREAL, CANADA OCTOBER 5, 2014
- 2. Panelists •Tom Strange , President/CEO – The Solution Design Group, Inc. •Angela Joyce, Director of Client Services – The Solution Design Group, Inc. •Mark Ironside, Executive Director of Business Services – Lehigh University •Mark Reeves, Asst. Vice-President for Business and Auxiliary Services – University of West Georgia •Alex Posivenko, Financial Manager, Auxiliary Services – University of West Georgia •Rebecca Brown , Asst. Vice President of Admin Affairs – Florida A&M University •Malinda Moore, Associate Director of Business & Auxiliary Services – Florida A&M University
- 3. Learning Objectives •Gain a better understanding of benchmarks and how they can be used in auxiliary/business •Learn about the tools being used to measure and present benchmarks •Explore methods and techniques for comparing auxiliary efficiencies among peers
- 4. 35% of College and University CFOs say the quality of analytics and benchmarking information used to guide decision-making at their institutions is either “extremely poor” or “below average”. The Chronicle of Higher Education, June 2014 Survey
- 5. Performance Measures •Why Measure? To learn and improve! What is working? What isn’t working? What can we change? •What to Measure? Performance indicators! How much? How well? At what level? Over what time period? •What do we want out of it? Improvements! Can we increase revenue? Can we lower costs to students? Can we improve customer satisfaction?
- 6. The Basics What is a Performance Measure? “A quantifiable indicator used to assess how well an organization or business is achieving its desired objectives” – www.businessdictionary .com What is a Benchmark? “Standard used as point of reference for evaluating performance or quality” •Internal – within your institution •External – with other higher-educational institutions •Functional – with institutions in other industries
- 7. Performance/Benchmarking Examples •Lehigh University •University of West Georgia •Florida A&M University
- 8. Lehigh University •Founded: In 1865 by Asa Packer, an industrial pioneer, entrepreneur and philanthropist; located in Bethlehem, Pennsylvania •One of nation’s premier research universities •4 Colleges: Arts and Sciences, Business and Economics, P.C. Rossin College of Engineering, Applied Science and College of Education •Student Body:4,904 undergraduates , 2,165 graduate students •Lehigh Endowment : $1 Billion •Athletics: 25 NCAA Division I intercollegiate sports for men and women, 40 intramural and club sports
- 9. Metrics Used: •Ticket Fees •Convenience Fees •Order Fees •Number of Tickets Sold •Location Benchmarking at Lehigh Example 1: Ticketing Revenue and Expenditures
- 10. Metrics Used: •Overall Attendance •Attendance by Residence •Attendance by Class Benchmarking at Lehigh Example 2: Student Participation
- 11. Metrics Used: •Packages •Mail •Delivery Time •Revenue •Carrier Benchmarking at Lehigh Example 3: Mail Services
- 12. University of West Georgia •Founded in 1906, located in Carrolton, Georgia on 645 acres •Fall 2014 enrollment – 12,150 •76% full-time students; 24% part-time students •65% female; 35% male • Degrees •9 Undergraduate degrees in 43 programs •9 Graduate degrees in 23 programs •4 Doctoral
- 13. Benchmarking at University of West Georgia Self-Op Bookstore Operations Metrics: •Margins •COGS •Freight Costs •Labor Costs •Labor Overtime •A/R •A/P •Order Quantity •Pricing •Inventory Levels
- 14. Textbook Price to Students Industry Trend
- 15. Textbook Price to UWG Students UWG Bookstore vs Industry Trend FY2010 2011 2012 2013 2014 Fall 2015 100% 90 80 70 60 50 40 30 20 10 % $54 $55 $58 $62 $65 $67 $54 $55 $58 $62 $65 $67
- 16. Florida A&M University •Founded in 1887, located in Tallahassee, Florida •10,200 students from more than 30 states, many countries •Accredited by Southern Association of Colleges and Schools; offers 98 degree programs, including 12 doctoral degrees •Top 10 Best Historically Black Colleges or Universities in the nation - U.S. News and World Report (2014) •A “Best in the Southeast” College - The Princeton Review (2014) •College Database – grads earn average salary $41,000/yr; ranked No. 4 in Florida (2013) •On Forbes list of top colleges in the U.S. (2013)
- 17. Benchmarking at FAMU Background: Housing, Student Meals •Direct correlation: Housing – Student Meals •Fall 2014, 5 of 13 housing facilities taken off line (899 beds) •New facility opened (800 beds) •Fall 2014 – 2,914 meal plans; 60% mandatory (resident), 40% commuter •FAMU sells meal plans, collects revenues, then pays provider •Recent challenges: switching providers, declining enrollment and meal plan participation, closure of facilities
- 18. •Purpose: Project revenues for planning, and budgeting •Description: Analyze meal plan enrollment, rates based on projected participation •Metrics Used: Student population/enrollment, housing occupancy rate, % of students on meal plans •Use of Data: Prepare operating Budget, fulfill financial commitments, assess meal plan performance, project growth •Results : Meal Plan Participation, Revenue increases; more appealing meal plan types; improved customer satisfaction Benchmarking at FAMU Example 1: Meal Plan Revenues to Student Enrollment
- 19. •Purpose: Assess performance of each dining location •Description: Determine effectiveness of food concepts, programs, promotions; monitor budgeted to actual sales revenue •Metrics Used: % increase/decrease to prior year sales, budget-to- actual sales •Use of Data: Comparison of current period sales revenue, by premise, to prior year •Results : Used in decisions on staffing, branding, hours of operation, marketing, premise closure Benchmarking at FAMU Example 2: Evaluating Sales per Premise
- 20. Benchmarking at FAMU Dining Sales Comparison – Prior Vendor to New Vendor
- 21. Benchmarking at FAMU Beverage Vending Profit-per-Student
- 22. Steps to Implement Benchmarking Define Goals Define Metrics Collect Data Analyze Data Monitor, Adjust • Data, descriptors • Frequency • POS system • Card system •Vendor reports •Spreadsheets •Systems • Targets • Timeframe • Internal benchmarks • External benchmarks •Functional benchmarks • What is achievable? • Modify products, services, pricing, operations, etc.
- 23. •Auxiliary revenue per FTE or FT student •Auxiliary expense per FTE or FT student •Profit margin •Growth/Contraction percentages semester-to-semester •Efficiency ratio Benchmarking Overall Auxiliary Performance Benchmarks
- 24. •Revenue/expense per student •Profit/loss per student •Meal plan revenue per resident student •Restaurant/franchise revenue per student •Transactions per hour per location per day of week Benchmarking Campus Dining Metrics
- 25. Revenue Benchmarking Monthly Net By Premise Year-to-Year
- 26. Revenue Benchmarking Monthly P&L Detail By Premise Year-to-Year
- 27. Operational Benchmarking Transactions Per-Hour By Day of Week
- 28. •Revenue per student •Revenue by product category per machine •Revenue by location type (e.g. academic, athletic, residential) •Analysis of product sales/growth in different times of year •Cash vs. Campus card sales Benchmarking Campus Vending Metrics
- 29. •Sales and growth by Product Category •Sales per square foot of retail space •Sales per student •Sales by Product Category by Campus (if applicable) •For self-op, net revenue per student (sales less expenses) Benchmarking Campus Bookstore Metrics
- 31. Thank you! Please complete the online session evaluation.