go "beyond benchmarking" with sightlines' ropa+ services

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Abilene Christian University Adelphi University

Alcorn State University American University

Amherst College Arizona State University

Armstrong Atlantic State University Asnuntuck Community College

Augustana College (IL) Babson College

Bellarmine Preparatory School Bentley University

Berea College Berkshire Community College

Berkshire School Bethel University

Bloomsburg University of Pennsylvania Boston College

Bowdoin College Bowling Green State University

Brandeis University Bristol Community College (MA)

Brown University Bryant University

Bryn Mawr College Bucknell University

Bunker Hill Community College (MA) Cabrini College

California Institute of the Arts California University of Pennsylvania

Calvin College Cape Cod Community College (MA)

Capital Community College Carleton College

Carnegie Mellon University Case Western Reserve University

Central Connecticut State University Champlain College

Chapman University Charter Oak State College

Cheyney University of Pennsylvania Cincinnati State Technical and Community College

Claremont McKenna College Claremont Graduate University

Clarion University of Pennsylvania Clemson University

Cleveland State University Colgate University

College of Mount St. Joseph College of Saint Benedict

Columbus State Community College Connecticut College

Cornell University Cuyahoga Community College

Dalhousie University Davidson College

Delta State University Drew University

Drexel University Duke University

Duquesne University Earlham College

East Stroudsburg University of Pennsylvania Eastern Connecticut State University

Eastern Oregon University Eckerd College

Edinboro University of Pennsylvania Emerson College

Emma Willard School Fairfield University

Fitchburg State University Florida Institute of Technology

Florida State University Framingham State University

Franklin & Marshall College Franklin University

Franklin W. Olin College of Engineering Fuller Road Management Corporation

Gallaudet University Gateway Community College

George Mason University Georgia Institute of Technology

Gettysburg College Gonzaga University

Goucher College Greenfield Community College (MA)

Grinnell College Gustavus Adolphus College

Hamilton College Hamline University Hampshire College

Harper College Harvey Mudd College

Holyoke Community College Housatonic Community College

Illinois Institute of Technology Indiana University

Indiana University of Pennsylvania Indiana University - Purdue University Indianapolis

Iowa State University Ithaca College

Jackson State University Kansas State University Keck Graduate Institute

Keene State College Kent State University

Kutztown University of Pennsylvania Lakeland Community College

LaSalle University Le Moyne College

Lebanon Valley College Lewis & Clark College

Lock Haven University of Pennsylvania Long Island University Brooklyn Campus

Long Island University C.W. Post Loyola Marymount University Loyola University in Maryland

Macalester College Manchester College

Manchester Community College Mansfield University of Pennsylvania

Massachusetts Bay Community College (MA) Massachusetts College of Art and Design

Massachusetts Institute of Technology Massasoit Community College (MA)

Miami University Michigan State University

Middlebury College Middlesex Community College (CT)

Middlesex Community College (MA) Millersville University of Pennsylvania

Mississippi State University Mississippi University for Women Mississippi Valley State University

Missouri University of Science and Technology Montana State University (Bozeman)

Mount Holyoke College Mount Wachusett Community College

Naugatuck Community College New Mexico State University

New York University North Shore Community College (MA)

Northeastern University Northern Arizona University

Northern Essex Community College (MA) Northwestern Connecticut Community College

Northwestern University Norwalk Community College

Nova Southeastern University Ohio University - Athens

Oregon Institute of Technology Oregon State University

Otis College of Art & Design Owens State Community College

Pace University Pacific Lutheran University Phillips Academy Andover

Pitzer College Plymouth State University

Polytechnic Institute of NYU Pomona College

Portland State University Potomac State College

Princeton University Purdue University

Quinebaug Valley Community College Quinsigamond Community College (MA)

Rensselaer Polytechnic Institute Rider University

Roger Williams University Roxbury Community College

Rutgers University Saint Louis University

Saint Mary’s College (IN) Saint Mary’s College of California

Scripps College Seattle Pacific University

Seattle University Shippensburg University of Pennsylvania

Siena College Sinclair Community College

Slippery Rock University of Pennsylvania Smith College

Southern Connecticut State University Southern Methodist University

Southern Oregon University Springfield Technical Community College

St. Lawrence University Stevens Institute of Technology

SUNY – Purchase College Swarthmore College Syracuse University

Temple University Texas A&M University

The Catholic University of America The College of Saint Rose

The College of Wooster The Johns Hopkins University

The Lawrenceville School The New School

The Ohio State University The Peddie School

The Pennsylvania State University The Richard Stockton College of New Jersey

The Sage Colleges The University of Alabama

The University of Alabama at Birmingham The University of Dayton The University of Maine

The University of Mississippi The University of Rhode Island, Kingston

Thomas Jefferson University Three Rivers Community College

Towson University Trinity University

Tufts University Tunxis Community College

University of Alaska Anchorage University of Alaska Fairbanks

University of Alaska Southeast University of Arizona

University of Arkansas University of California – Davis University of California – Irvine

University of California San Francisco Medical Center University of Chicago

University of Cincinnati University of Colorado at Boulder

University of Denver University of Hartford

University of Idaho University of Illinois at Urbana-Champaign

University of Kentucky University of Maine at Augusta

University of Maine at Farmington University of Maine at Fort Kent University of Maine at Machias

University of Maine at Presque Isle University of Maryland

University of Massachusetts Amherst University of Massachusetts Dartmouth

University of Massachusetts Lowell University of Michigan

University of Minnesota University of Mississippi Medical Center

University of Missouri University of Missouri - Kansas City

University of Missouri - St. Louis University of Nebraska at Kearney

University of New Hampshire University of New Haven University of North Texas University of Notre Dame

University of Oregon University of Pennsylvania

University of Portland University of Redlands

University of Rochester University of San Diego

University of San Francisco University of Southern Maine

University of Southern Mississippi University of St. Thomas (TX)

University of Tennessee, Knoxville University of Toledo

University of the Pacific University of the Sciences in Philadelphia

University of Vermont Upper Iowa University

Utica College Vassar College

Virginia Commonwealth University Virginia Department of General Services

Virginia State University Wagner College

Washburn University Wellesley College

Wesleyan University West Chester University of Pennsylvania

West Virginia Health Sciences Center West Virginia University

Western Connecticut State University Western Oregon University

Westfield State University Wheaton College (MA)

Whitworth University Widener University

Williams College Williston Northampton School

Worcester State College Xavier University

Yeshiva University Youngstown State University

Make sure institution is listed – Slide Master

Jim Kadamus: Vice President Ted Kail: Director Facilities Portfolio May 7th, 2013

Analysis to know where you stand. Insight to know where you’re going. Intelligence to help you get there.

Go “Beyond Benchmarking” with…

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CFO’s Challenges & What they say...

Need to balance operating costs vs. long term asset management

Responsible for the efficiency and effectiveness of the facilities management group

Required to justify budgets and investments to competing institutional interest groups

“Our budgets are often based on the greatest institutional need rather than the greatest return on investment - often its a case of ‘what can we get away with not doing’.”

“Frankly, I don’t know whether we have the optimal facility operations and capital investment allocations.“

“My colleagues think of facilities as the black hole of budget spending.”

“The Board wants short-term cost reductions while simultaneously supporting its long term strategic priorities…mmm?”

http://www.google.com/url?sa=i&rct=j&q=business+challenges&source=images&cd=&cad=rja&docid=BKElvvDApTJ17M&tbnid=HMfJAy8tHnjlkM:&ved=0CAUQjRw&url=http://www.tvgconsulting.com/business-challenges/&ei=12NLUcb_BcrX0gH15YHIAQ&bvm=bv.44158598,d.dmg&psig=AFQjCNGTRqoH3F5kh9pHN-2oie4Y62048Q&ust=1363981625528389

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Facilities Directors Challenges & what they say...

How do we reduce facility costs while improving productivity and service levels?

What is the balance between operating effectiveness and long-term asset investment?

How do I find innovative solutions to address the backlog & meet sustainability targets?

How do I prove the value of facilities management to the faculty, administration, and board?

“Our budgets are based on political pressures rather than the greatest return on investment - often its a case of ‘what can we get away with not doing’.”

“Frankly, I don’t know whether we have the optimal facility operations and capital investment allocations.“

“My colleagues think of facilities as the black hole of budget spending.” “I want to spend more time on future

planning and less on day-to-day reactive needs.”

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• Sightlines collects and assembles data on campus to quantify, verify, and qualify facility performance. Measure

• Through the benchmarking process, institutions have the capability to create custom comparisons that help them understand context and performance.

Benchmark

• Sightlines synthesizes an institution's verified data to develop strategic directions for change. Analyze

• Sightlines continues to support each campus through the member website, educational webinars, and ongoing consultation with staff.

Membership

The Sightlines process

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2001 2004 2007 2010 2012

We have grown, More than 350 campuses Annual retention 93%

Sightlines growth since 2001

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Facilities Database

45,000 buildings

1.2 Billion square feet

50,000+ workers

177M MMBTUs of energy

Finance Database

$17B in annual operating and capital

Capital Renewal Database

Lifecycle data on 5000 buildings

Carbon Database

Access to 600+ campus carbon programs

Based on Industry-Leading Databases

By visiting every campus we have created a verified database, credible benchmarks, and access to the largest database of analytics for educational institutions

Data accuracy through its independent data collection process – Quantify, Verify, Qualify (QVQ) Process

250 critical performance benchmarks provided

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Asset Reinvestment

The measure of service process, the maintenance quality of space and systems, and the customers opinion of service delivery

The effectiveness of the facilities operating budget, staffing, supervision, and energy management

The accumulated backlog of repair and modernization needs and the definition of resource capacity to correct them “Catch-Up Costs”

The annual investment needed to ensure buildings will properly perform and reach their useful life “Keep-Up Costs”

A vocabulary for measurement The Return on Physical Assets – ROPASM

Annual Stewardship

Operational Effectiveness

Service

Asset Value Change Operations Success

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Taking a deeper dive into your analysis with ROPA+

Predict future capital needs “RISK”

Identification of the backlog of need

Continuous measurement of service indicators to track performance

Target setting based upon “Best in Class” campuses and performance dashboards that monitor success

Additional data collection is required

for ROPA+

Annual Stewardship

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Asset Reinvestment

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Operations Effectiveness

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Service Process

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Ph

ase

1:

D

isco

very

Introduction to ROPA+ Changing the way higher education manages campus facilities

Base Data Trends & Benchmarking Vocabulary Facility Relationships

Ph

ase

2:

P

red

icti

on

Capital Investment Facility Risk Operating Targets Service Goals

Ph

ase

3:

Pe

rfo

rman

ce

Track Accomplishments Campus Change External Factors Competitive Issues

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Discovery

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Discovery Base data and trends

Facilities Operating Budget –

$0

$1

$2

$3

$4

$5

2005 2006 2007 2008 2009 2010 2011 2012

$/G

SF

Daily Service Budget-

$0

$1

$2

$3

$4

$5

2005 2006 2007 2008 2009 2010 2011 2012

$/G

SF

Daily Service Budget-

Pre

- Q

ual

ific

atio

n

Po

st -

Qu

alif

icat

ion

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Discovery Benchmarking – Selecting the Right Peers

University Peer Group

Hamilton College Colgate University

Babson College Amherst College

Williams College University of Maryland

Northeastern University Duke University

Cornell University University of Pennsylvania

University of Hartford Virginia Commonwealth University

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Discovery – Impact of the campus age profile

Buildings Under 10

Little work .“Honeymoon” period.

Low Risk

Buildings 10 to 25

Short life-cycle needs; primarily space renewal.

Medium Risk

Buildings 25 to 50

Major envelope and mechanical life cycles come due.

Higher Risk

Buildings over 50

Life cycles of major building components are past due. Failures are possible.

Highest risk

24% 17%

7% 19%

22%

34%

47%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

My Campus Peer Average

% o

f To

tal C

amp

us

GSF

GSF by Renovation Age Category

Under 10 10 to 25 25 to 50 Over 50

Database average work order cost:

$2.18/GSF

$2.24/GSF

$1.98/GSF

$1.48/GSF

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$19.8

$6.0 $4.5

$7.0

$2.5

$0

$5

$10

$15

$20

$25

3% Replacement Value Life Cycle Need(Equilibrium)

Functional Obsolescence(Target)

$ in

Mill

ion

s

Annual Stewardship Spending Targets

Envelope/Mechanical Space/Program

Defining stewardship investment targets

Depreciation Model Sightlines Recommendation

Total $ in Millions $19.8 $13 $7

% of Replacement 3.0% 2.0% 1.2%

Total replacement value= $660M

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Total Investment vs. historic targets

$0

$2

$4

$6

$8

$10

$12

$14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$ in

Mill

ion

s

Annual Investment by Funding Source

Annual Stewardship Asset Reinvestment

Decreasing Backlog

Increasing Backlog

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Prediction

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Integrating Discovery & Prediction

$0

$2

$4

$6

$8

$10

$12

$14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Mill

ion

s

Discovery Historic Capital Trends vs. Target

Prediction Future Capital Needs “Risk”

Prediction

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Integrating Discovery & Prediction

$0

$2

$4

$6

$8

$10

$12

$14

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Mill

ion

s

Discovery Historic Capital Trends vs. Target

Prediction Future Capital Needs “Risk”

High Risk

Medium Risk

Low Risk

High Risk

Prediction

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Capital Prediction – Data Collection that’s Required

• The campus identifies when the 6 major subsystems are coming due based upon their current condition

Conversation with Sightlines staff. Sightlines staff guides you through the conversation and updates the Prediction template.

• Key sub-systems are: Roofing Building Exterior HVAC Electrical Plumbing Interiors Small – anything less than 10,000 GSF

Costs and life cycles of the sub-systems are determined based upon the Sightlines project database.

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-100%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40

3 Y

ear

% C

han

ge

$/GSF

Planned Maintenance Database

Utilizing the Sightlines Database to Help Campuses Identify Operational Targets

Database Average

Best Practice Institutions

$1.32

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Best Practice Target $/GSF

Best Practice Avg. $/GSF

$0.22 $0.35

$0.42 $0.44 $0.50 $0.53

$1.32

$0.70

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

2007 2008 2009 2010 2011 2012 2013

$/G

SF

Planned Maintenance $/GSF

Actual PM $/GSF Best Practice Target 2013 Target

Prediction - Planned Maintenance

Sightlines Members

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Utilizing the Sightlines Database to Help Campuses Identify Operational Targets

Database Average

Best Practice Institutions

0%

5%

10%

15%

20%

25%

Best Practice Average (% Reduction)

Best Practice Avg. (% Reduction in Consumption)

162,000 160,000 155,000 150,000 156,000 152,000

121,600

140,000

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2007 2008 2009 2010 2011 2012 2013

BTU

/GSF

BTU per GSF

BTU/GSF Best Practice Target 2013 Target

Prediction – Energy Consumption

Sightlines Members

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

0 50,000 100,000 150,000 200,000 250,000 300,000

% C

han

ge f

rom

FY

11

to

FY

12

BTU/GSF

Energy Consumption

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Prediction – Dashboards to Measure

162,000 160,000 155,000 150,000 156,000 152,000

140,000

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2007 2008 2009 2010 2011 2012 2013

BTU

/GSF

BTU per GSF

BTU/GSF 2013 Target

$0.22

$0.35 $0.42 $0.44

$0.50 $0.53

$0.70

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

2007 2008 2009 2010 2011 2012 2013$

/GSF


Actual PM $/GSF 2013 Target

$3.87 $3.80 $3.85 $3.92 $3.98 $4.07 $4.00

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

2007 2008 2009 2010 2011 2012 2013

$/G

SF

Daily Service $/GSF

Actual DS $/GSF 2013 Target

Reinvest Savings into PM

PM Reduces Daily Service

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Operational Prediction – Data Collection that’s Required

• Additional conversation with the campus;

1. Review and select dashboards from list 2. Review and set future targets for the dashboards

Sample Performance Dashboards

2014 Goal

One-Time Capital Investment (% invested in Envelope/Mech.) 32%

Annual Stewardship Investment (% Change Year over Year)

+5%

Change in Energy Consumption (% Change in total BTU’s/GSF)

-5%

Operating Budget (% difference budget vs. actual)

+/- 1%

Planned Maintenance (% of facilities operating budget)

8%

Staffing (Maintenance Staff GSF/FTE)

85,000

Customer Service (% Increase in Customer Satisfaction)

+10%

Campus selects from over 50 performance metrics and identifies targeted goals moving forward.

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Performance

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2013 Performance Dashboards Goals

Annual Stewardship Investment ($ per GSF) +$0.25

Energy Consumption (BTU’s/GSF) -10%

Planned Maintenance ($ per GSF) +$0.17

Daily Service Costs ($ per GSF) -$0.07

Customer Service (% Increase in Customer Satisfaction) +10%

$0.22

$0.35

$0.42 $0.44 $0.50

$0.53

$0.85

$0.70

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

2007 2008 2009 2010 2011 2012 2013

$/G

SF



Campus can select up to 50 dashboards and Sightlines will present families of dashboards.

Performance – Measuring success

162,000 160,000

155,000

150,000

156,000

152,000

145,000

140,000

125,000

130,000

135,000

140,000

145,000

150,000

155,000

160,000

165,000

2007 2008 2009 2010 2011 2012 2013

BTU

/GSF

BTU per GSF

BTU/GSF 2013 Target

Key Takeaway: Energy consumption declined, but

fell short of target while planned maintenance exceeded the 2013 target.

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Performance – Tracking the progress towards goals

$3.87

$3.80

$3.85

$3.92

$3.98

$4.07

$3.95 $4.00

$3.65

$3.70

$3.75

$3.80

$3.85

$3.90

$3.95

$4.00

$4.05

$4.10

2007 2008 2009 2010 2011 2012 2013

$/G

SF

Daily Service $/GSF

Actual DS $/GSF 2013 Target

65% 68% 68%

73% 73% 74%

88%

84%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013

Cu

sto

mer

Sat

isfa

ctio

n

Percent of Satisfied Customers


2013 Performance Dashboards Goals

Annual Stewardship Investment ($ per GSF) +$0.25

Energy Consumption (BTU’s/GSF) -10%

Planned Maintenance ($ per GSF) +$0.17

Daily Service Costs ($ per GSF) -$0.07

Customer Service (% Increase in Customer Satisfaction) +10%

Campus can select up to 50 dashboards and Sightlines will present families of dashboards.

Key Takeaway: The savings on daily service were

greater than expected as a result of the improved planned maintenance investment.

The result was higher than expected customer service scores.

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Measurement Drives Improvements 3 years of average savings impact (Average Campus Size - 2.8M GSF)

$700,473

$175,000 $41,500

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Energy Savings Operating Cost Savings Planned MaintenanceIncrease

On average, Sightlines’ members experience a 11.1% decrease in their energy consumption, equating to $700k worth of savings

On average, Sightlines’ members experience a 5.3% increase in their PM spending

On average, Sightlines’ members experience a $0.20/GSF reduction in operating costs for every additional $1/GSF invested in Annual Stewardship

Savings generated at least

5x the service cost over a

three-year period

Average Savings Opportunities

*Analysis developed by Marq Ozanne, Ph.D. of OZANNE Customer Analytics Group

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Summary of the ROPA+ Service Intelligent facilities solution for optimal campus planning and investment

…is a comprehensive and unique offering that will equip you to:

Validate current facilities operations and gain valuable insight for capital investment decisions in the context of peer institutions

Identify and prioritize improvement opportunities and develop pro-active plans

Eliminate the guesswork to make informed, fact-based, financially driven decisions

Connect operational goals, master plans, and financial priorities in the context of your institution’s mission

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Costs of ROPA+ (Phase 2 and Phase 3)

GSF Range Costs Range

Less than 400,000 GSF $3,780 - $4,600

400,000-900,000 $4,180 - $5,100

900,000-1,500,000 $4,630 - $5,660

1,500,000-2,500,000 $5,080 - $6,200

2,500,000-3,500,000 $5,580 - $6,820

3,500,000-5,500,000 $6,030 - $7,370

5,500-000-8,000,000 $6,480 - $7,920

8,000,000-11,000,000 $6,975 - $8,525

Greater than 11,000,000 $7,470+

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Please contact us for more information or questions at: 203-682-4952

www.sightlines.com [email protected]

Thank You!

Jim Kadamus & Ted Kail

http://www.sightlines.com/

mailto:[email protected]

go "beyond benchmarking" with sightlines' ropa+ services

Education