Successful Space Management – Algonquin’s Experience /

Experiments!

Concurrent Session Presentation atSCUP North Central Annual Conference

Kansas City, MissouriOctober 2006

Presenter: Phil Rouble, Facilities Planning Specialistroublep@algonquincollege.com

Ottawa Ontario Canada

Algonquin College Growth1990 to 2005

Audit Eligible Activity vs GSF of Academic Facilities

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1990

-91

1991

-92

1992

-93

1993

-94

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

Total College GSF% Change from 1990-91

Fall Nov. 1 Audited Enrollments% Change from 1990-91

Net 76% Growth in Audited Enrollments

Net 10% Reduction in GSF

Residence facilities excluded in analysis

1990 – 199 GSF/Student2005 – 101 GSF/Student

7034 Students 12400 Students

1.4 M GSF 1.26 M GSF

But How Far Can You Go?

Facilities managers and planners need to develop advanced exploration techniques

to discover untapped capacity reserves

Is there a limit to space optimization?

The College saw facilities and

capacity as mission critical

Just when you think the mine has run dry, things get shaken up and new reserves

begin to emerge!

Lack of capital funding led to resistance to

fund renovations and new construction

Algonquin hit the wall in terms of

conventional targets for space optimization

Crisis: Fall 2005

Algonquin began to question its growth

strategy given funding uncertainties

Space mining:The process of extracting capacity from an existing

portfolio of space

Space mining techniques can dig deep into hidden capacity

reserves

An “Algonquinism”

A case for space mining

Growth and capacity

A corporate space

management model

A space mining toolkit

Simplified Case Study:What If Algonquin Used a “Build to Grow”

Approach from 1990 to 2005?Assumption: Say Algonquin had decided to maintain the same 199 GSF per student from 1990 to 2005 (But we didn’t!)

Capital We Didn’t Spend on Building: $242 Million

Capital We Didn’t Spend on Building Maintenance:

$18 Million

Capital We Didn’t Spend on Building Renewal and Modernization:

$9 Million

Capital We Didn’t Spend on Furniture and Equipment:

$151 Million

Operating Dollars We Didn’t Spend: $64 Million

Total Dollars We Didn’t Spend: $484 Million!

Algonquin College - Actual Growth Change % Change

Analysis Period (Years) 1990 2005 15Audited Enrollment 7034 12400 5366 76%Total Facilities GSF (Gross Square Feet) 1400000 1257000 -143000 -10%GSF / Student 199 101 -98 -49%

Case Study: Build to Grow ApproachAudited Enrollment 7034 12400 5366 76%Total GSF 1400000 2467600 1210600 76%Constant GSF/Student 199 199 0 0%

Capital CostsAnnualized

SavingsEst. Savings for

Period

Capital Cost - New Building Construction $16,141,333.33 $242,120,000Unit Cost / GSF $200

Capital Cost - Facilities Maintenance $2,421,200 $18,159,000(1.5% to 2.5% of Replacement Cost Recommended Annually) 1.0%

Capital Cost - Renewal and Modernization $1,210,600 $9,079,500(0.5% to 1.5% of Replacement Cost Recommended Annually) 0.5%

Capital Cost - Furniture and Equipment $4,035,333 $60,530,000% of Building Cost 25%

Capital Cost - Furniture and Equipment Replacement $6,053,000 $90,795,000Assumed Replacement Cycle 10 years

Estimated Total Capital $29,861,467 $420,683,500

Operating Cost per year $8,474,200 $63,556,500Unit Cost / GSF $7

Total Funds for Period $484,240,000

Simplified Case Study:Do Try This At Home!

Candidate for Target

Setting?

Sustainable Development:The Campus We Never Built!

From 1990 to 2005 Algonquin avoided building 1.2 million GSF

Algonquin College has approximately 1.26 million GSF of academic facilities (excluding residences)

Renewal and ModernizationCase Study 1

I don’t want to be put into a dirty old space!

Before:Former Outdated Welding Shop

After: Adaptive Reuse Health Sciences Simulation Centre

Renewal and ModernizationCase Study 2

You just want to squeeze me into a smaller space!

Before:6000 sf Antiquated Electrical Labs

After: Renewal / Consolidation4000 sf Modernized Electrical Labs

Growth

WHERE can we grow?

How MUCH can we grow?

Capacity

Growth

Capacity

HOW should we grow?

27

Profiling Growth Patterns

• Strategic Growth Areas– Significant new activity opportunities that may yield new growth

potential for College• High Growth Areas

– Significant new activity requiring additional resource allocations and investments

• Smart Growth Areas– Program areas with capacity to grow with low cost / no cost and

sufficient demand to fill to capacity• Declining Activity Areas

– Program areas with significant excess capacity due to reduction in activity levels due to declining demand

• Areas No Longer in Demand– These areas need to be identified as early as possible and support

provided for decision making related to effective exit strategies when appropriate

Two Sources of Capacity

Bricks and mortar campus facilitiesThe traditional campus

Virtual campus infrastructureOnline learning, distance education, hybrid courses

New Construction Existing Facilities

This Vessel Called Space

Space is a container

It is “full” at some point below the brim

Try to fill every space

Target Utilization

This Vessel Called Space

It is not a good thing to overfill!

Timetable quality and client satisfaction may suffer

Caution!

This Vessel Called Space

The question:Is it half full or half empty?

Low Utilization

(Hide it!)

Capacity to grow

(Seek it!)

This Vessel Called Space

Conventional space optimization focus

A paradigm shift – focus on capacity channels

Capacity Channels in a “Bricks and Mortar” Campus

Available Hours

Number of Seats or Stations

Station Size (sf / station)

37

Available Hours Capacity ChannelWoodroffe Campus

Fall Winter Spring / Summer

16 weeks 16 weeks 16 weeks

Daytime• Very little capacity for

growth beyond modest Core growth

• This is THE defining / limiting time period for growth

Evening• Some capacity for growth• Mostly Friday evenings in general

space• Significant capacity in dedicated

specialized facilities

Weekends• Significant capacity for

growth

Daytime and Evenings During Spring Term

• Significant capacity for growth

SunSatFriThuWedTueMon

Daytime50 hrs / week8am – 6pm

Evening20 hrs / week6pm – 10pm

Weekend20 hrs / week8am – 6pm

38

Extending the Available Hours Capacity Channel

Fall Winter Spring / Summer

16 weeks 16 weeks 16 weeks

Weekends• Encourage development of

weekend deliveries where possible and / or dedicated space resources are scarce

Spring Term• Develop plans to increase

activity levels

SunSatFriThuWedTueMon

Daytime50 hrs / week8am – 6pm

Sunday10 hrs / week8am – 6pm

Standard Academic Week76 hrs / week

M – Th 8am – 10pmF 8am – 6pmS 8am – 6pm

Standard Academic Week

• Extend scheduling M-Th to 10pm for ALL College activity

• Implement variety of split week / split day scheduling models

• Balance with continuing education / part-time studies needs

Risks• Impact on services• Impact on student

employment• Potential impact on student

timetable quality• Retention impacts• Reputation and KPI

implications• SWF impacts• Impacts on STPS enrollment

and contribution

Unsupervised Scheduled Activity• Unsupervised scheduled activity will be limited

• Will need to manage student expectations to access labs to 10pm and on weekends to complete project work

Measuring Available Capacity in a “Bricks and Mortar” Campus

Room Utilization Rates (%)

Station Occupancy Rates (%)

Average Station Size (sf / station)

Targets

Based on 50 hrs/weekM-F 8:00am to 6:00pm

Room Utilization Rates Capacity Reserves

Room Utilization Rates

Classrooms 85%

Computer Labs 80%

Other Labs 70%

Set targets(Best Guess)

Refine targets

Adjusting the denominator opens new capacity

reserves

Optimizing Other Capacity Channels

Station Occupancy Rates

Currently no specific targets - current monitoring suggests reasonable results being achieved

The scheduling team is accountable to match section size to room capacity in open / common spaces

Dedicated or specialized labs are sized to maximum section sizes

Average Station SizeOpportunity for improvement in this area through standards / benchmarks

Space costing motivates reduction in lab sizes

May be time to explore this capacity reserve

Space Management –Three Conditions for Success

Untapped capacity reserves

Motivation to access capacity

Value to clients

Motivation to Access CapacityCatalysts for Change

(Bottom-up will to change)

• A champion–A trusted authority advocates change

• Changing beliefs or trends–Trust in resource allocation–Emphasis on sustainability–Year round school

• Crisis–Lack of funds–Threat of closure

Drivers for Change(Top-down push to change)

• Targets–Something to measure and aim for

• Space cost allocation–Measuring space costs supports management of space

• Directives from outside–Funding agency

• Directives from inside–“This is what is going to happen”

MUST begin with the catalysts to build support and buy in. Need to backup with drivers to gain and keep momentum.

Value to Clients

StudentCentric

Admin Faculty

FacilitiesServices

FacultyCentric

Admin Student

FacilitiesServices

Value depends on numerous factors but is significantly influenced by the institutional focus.

What are the target clients willing to accept?

Space Management –Impediments to Success

Institutional culture

Resistance to change

Cultural Myth No. 1:But wait a minute, space is free!

Isn’t it?False

The problem is that the cost of space is hidden in capital infusions, endowments and operating

overhead

Solution: Measure the cost of space, separate it

from overhead and manage it

Cultural Myth No. 2:Paying for space is not my

problem! Is it?

FalseEvery dollar wasted in empty space is

less money available for learning and research

Solution: Allocate the cost of space to the cost centre managing the space

Cultural Myth No. 3:But my space is busy!

Probably FalseThe real utilization of space is often a

cloudy picture. A better question: Is there capacity

for growth available?

Solution:Centrally collect and publish accurate utilization statistics

Cultural Myth No. 4:Space is mission critical to my

success. I must protect it.

True and FalseTrue – Space is an enabling resource

False – It is wrong to “protect it”

Solution:Allocate space to support success

Reallocate space to where it is needed

Cultural Myth No. 5:But it’s my space!

FalseSpace is an institutional resource

Solution:Manage space as a corporate

resource Change from a culture of

ownership to one of stewardship

Space Management –Three Beginning Strategies for

Success

Corporate Management of Space

Set Target Utilizations

A Space Costing Model That Works

Our Space Mantra

Space at Algonquin is a College resource

College resources are strategically allocated to ensure the success of all College initiatives within a context of fiscal responsibility

Space is not owned but is strategically allocated by the College Space and Infrastructure Committee

The Space Management Model

Accountabilities for Facility

Optimization

Facilities are a Corporate Resource

Steering Body Advocacy

Stewardship No Ownership

College Space Inventory

Utilization Reporting

Utilization Targets

Demand Analysis

Supply / Demand

Tracking Progress

Optimization Measures

All Facilities

Space Priorities

(Multiyear)

Resource Allocation

College Space Management Committee

Oversees the allocation and quality of facility resources

Contribution

Space Costing and Cost Allocation

Direct Costs

ContributionDirect Costs

Revenues

30%(Overhead + Space)

70%

25%(Overhead)

75%(Includes Space Costs – More control with consumers of space)

Traditional model

Algonquin space costing model

Space costing is applied during program assessment through cost allocation

PROGRAM RENEWAL/NEW

PROGRAM OFFERING

REMEDIATION PLAN IMPLEMENTATION

PROGRAM REVIEW

PERFORMANCE & QUALITY MEASURES

PROGRAM COSTING

ACADEMIC AREA PROGRAM ASSESSMENT/PERFORMANCE/RENEWAL

PROGRAM SUSPENSIO

N

From: Area 5 Program Assessment Summary – June 2004

Space Costing:Does It Work? Very Well!

• Academic Schools have been provided with a tool to more accurately map costs to revenue generation

• Program subsidization has been significantly reduced and is now quantifiable

• Academic areas are provided with additional options to reduce costs and better position programs for sustainability

• Space dividend:– Space is optimized to reduce costs of program– Phenomenon of the shedding of space

• Movement towards open (shared) rather than dedicated space• Redeployment of shed space from programs faced with suspension

Space costing has been an instrumental driver in ensuring that Algonquin College did not overbuild

Evolving Processes

Mature Processes

An Evolving Space Mining Analogy

Revised: October 2006

Emerging Directions

Active Stage

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Developmental Stage

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Exploratory Measures:Prospecting for Capacity

Hearsay

Space Leads

Walkabouts

Hunches

Rumours and

InnuendoObservations

An early stage exploratory process

that should constantly be

revisited

Audits

Prospecting is a discovery process that can help to identify to new capacity reserves

Exploratory Measures:Prospect ChartingGold Nuggets

Fool’s Gold

Polished Gems

Rough Stones

EffortEasy Hard

Pay

off

Low

Hig

h

Academic Space

Inventory

Optimization of

Specialized Labs

Optimization of General

Classrooms

Faculty OfficesDemand Analysis

Utilization Reporting

Senior Administration Offices

Change Locks on Vacant Space

After Hours Office

Walkabouts

Reclaim Poor Quality Space

Renew Shed Space

Optimization of General

Computer Labs

Lab Activity Audits

Optimization of Service and Admin Space

Developmental Measures:Drilling for Space Through Data Analysis

Data analysis can be one of the simplest, fastest and most cost effective ways to

begin optimizing space

Pivot tables in Microsoft Excel can yield stunning results fast

If you have never seen pivot tables in action – you need to!

Developmental Measures:Start with Higher Grade Reserves of Space

with Bigger Yields

General Classrooms General Computer Labs

Excess capacity in oversized specialized labs in problem areas

Drill down to more difficult yields in specialized labs

Bonus in reducing inventory of unused computers

“Just because we (Academics) ask for space, it doesn’t mean

we should be given it”Nick Papadolias, Former Chair of CSMC

And Executive Director of Academic Services

As stewards of the space resources, facility managers and planners have a

responsibility to match supply and demand for space and not to oversupply space

Active Measures:Demand Analysis – A More Fluid Approach to Refine an Inventory of General Spaces

• Process implemented prior to the start of scheduling for each term using actual timetabling information

• Use pivot tables and utilization targets to determine demand for general types of space– General classrooms– General computer labs– General drafting labs

• Match room size mix to activity section size clusters• Only supply the number of spaces needed to meet

utilization targets– Balance of rooms held in reserve:

• Demand activated to address unanticipated demand or timetable quality issues

• Not to be scheduled space redeployed for other institutional priorities– Project swing space, special events, contract activity…

Active Measures:Shed or Share Phenomenon

• Driven by the Space Costing Model• Schools and departments approach CSIC and

Physical Resources asking for help to shed space or share space– Sometimes requires reconfiguration of shop or lab

space– Renewal of programs– Renewed energy and synergies in program teams– Increased enrollments in programs

Active Measures:Assessing Specialized Space Needs

1. Profile a program area’s growth pattern

2. Complete a utilization zone analysis of the program area’s existing and projected dedicated / specialized space needs

3. Look at rebalancing resources to match the growth pattern and ensure sustainable success

Drill down to more difficult yields in specialized labs

Active Measures:Utilization Zone Analysis – A New Spin on

Utilization Reporting1. Complete a utilization report and validate its accuracy2. Group rooms into Green, Yellow and Red Zones based

on utilization– Green Zone - Supervised Hours Utilization meets or exceeds

the Target Utilization– Yellow Zone - Supervised Hours Utilization meets or exceeds

50% of the Target Utilization– Red Zone - Supervised Hours Utilization is less than 50% of the

Target Utilization

3. Ask Schools to review the zone analysis and to develop plans towards achieving green zone status in their specialized dedicated spaces

4. Schedule meetings with program teams to look at rebalancing plans

Active Measures:Resource Balancing

Activity Resources

Sustainable SuccessBest Value for Institution

Resource balancing shifts reserves of resources to where they are needed now

Active Measures: Resource BalancingAreas of Smart Growth / Declining Activity

Activity

Resources

Not Sustainable

Rebalancing Required

Increase Activity

Smart Growth

Potential

Redeploy Resources

Declining Activity

•Renew / Consolidate $$•“Shed” space

Active Measures: Resource BalancingAreas of High Growth

Activity

Resources

Not Sustainable

Rebalancing Required

Increase Resources

•Build new $$$•Renew / Repurpose existing $

Reputation and retention risks

Active Measures: Resource BalancingAreas of Strategic Growth

Activity Resources

Sustainable Success

Dynamic Rebalancing Required

Potential for significant growth and innovation

May need to stockpile reserves for pending growth

•Build new $$$•Renew / Repurpose existing $

Dedicated Resource

Needs

Active Measures: Resource BalancingFocus Group Sessions

ChairAcademic

Dean

ChairSpace

Management

DirectorAcademicResources

DirectorPhysical

Resources

FacilitiesPlanner

ChairAcademic Chair

Academic

Crisis: Fall 2005

We felt we were scraping the bottom of the barrel in solving our evolving space needs

Was there a limit to space optimization?

Fall 2006 – Made It!

Space problems were solved – but for how long?

New drivers lead to new explorations which lead to new capacity reserves

Fall 2007 and Beyond

Is there a limit to space optimization?

The answer may lie in more questions:

2. Do these reserves add value to the institution?

3. Is there motivation to extract the capacity?

1. Can you identify more capacity reserves?

Where Do We Go From Here?

• Explore the space mining analogy further– Still more parallels triggering new directions

• Work the capacity channels paradigm– Expand beyond conventional space mining explorations

• Create linchpins for further optimization through strategic new construction and adaptive reuse of vacated facilities

• Research sustainable development– Transfer urban planning concepts to campus planning –

densification– Relief from the pressures of campus densification

• Pursue integrated planning processes– Link enrollment planning with capacity management– Move to multiyear planning– Capture capital planning in business plans and look at pay back

periods to support decision making