go "beyond benchmarking" with sightlines' ropa+ services
DESCRIPTION
You understand how critical it is to take control of our facilities strategies, and eliminate the guesswork so you can optimize operations and capital investments. Now you can go "Beyond Benchmarking" to make the case for change with ROPA+, the intelligent facilities solution that empowers you to optimize operations and capital investments over time! Learn how the new ROPA+ Service will allow you to make more informed policy and strategic decisions based on a comprehensive and unique offering that leads a process of: Discovery, Prediction and Performance.TRANSCRIPT
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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?”
3
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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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
Asset Reinvestment
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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
Operations Effectiveness
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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
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
20
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
Planned Maintenance $/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
Planned Maintenance $/GSF
Actual PM $/GSF 2013 Target
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
Actual PM $/GSF 2013 Target
2013 Performance Dashboards Goals
Annual Stewardship Investment ($ 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