A performance measurement and management approach for facility organizations-- public, private, and education.

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 following…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%

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

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?
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

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

9. 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

10. 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

11. 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
•
•

12. 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
maintainin
g a safe
and
sustainabl
e learning
environme
nt
Be
recognized
by the
campus
community
for
excellence
in service
and to
support the
learning
environme
nt
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
•
•
•
•

13. 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

14. 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

15. 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…

16. 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)

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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.

24. 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

25. 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