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The Science of Comparison:How to Build and Use Accurate Benchmarking for Better Performance Tracking
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Traditionally, a request for funding might
start with a facility assessment that reads
like a list of broken components or failing
systems, a jargon-heavy ultimatum
warranting a glance from financial
decision-makers who set these requests
too quickly aside. But to effectively
compete, facilities directors must change
their methods. Many are turning to data
to tell a story that puts their needs into
context across other campus projects,
with a focus on the institution’s
overarching mission and competitive
standing.
Gaining context for data through
benchmarking can add new value to
higher education campuses. It can enliven
traditional decision-making with fresh
insight that takes into account a wide
range of factors impacting institutions.
Effective comparisons and analyses of the
Facilities Department’s actions can lead to
greater confidence in operating
processes, and can make for more
impactful resource allocation. Through
benchmarking, facility management
leaders and campus decision-makers can
better understand how they compare
relative to peers, and drive action to
become a best practice institution.
In this guide, we will help Facilities
Departments harness the data already at
their fingertips, and create context for this
information. You’ll learn how to
standardize data to ensure you’re getting
the most accurate insight into your true
needs, and how to present this data to
secure needed funding. You’ll find that
once you better understand the data
you’re already using, you can help campus
stakeholders to see the value that the
Facilities Department brings to the
institution, and strengthen your
department for the future.
Facility management is changing, with greater reliance on data and digital
systems than ever before. In the higher education arena, it’s a necessity for
departments that want to effectively compete for funding with financial aid and
faculty salaries, as these generate more clearly visible benefits from funding
than “behind the scenes” facility management.
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CHAPTER 1
Data has become a foundational part of nearly all areas of higher education
management. Performance indicators are used to help improve student outcomes,
and data-based benchmarking has become critical as institutions seek to differentiate
themselves in an environment where colleges and universities are competing against
not just one another but also online and trade schools. Administrators see data as a
necessary building block for creating a successful institution, and data has become a
language through which all stakeholders can communicate their varying strategic and
operational needs.
The Facility Management department is no exception. Data has become one of the most
important tools not only for ensuring the proper performance of buildings across the
campus, but keeping campuses competitive among similar institutions. But data can do
much more for this department. Strong data can help professionals within the Facilities
Department clearly lay out the value of campus improvements. It can also serve as the
base for a common vocabulary with institution trustees, a step that can help secure
needed funding. Today, data is very much the foundation of a successful Facilities
Department.
Building with consistency and accuracy
Facilities professionals know better than anyone that you can’t build a building on an
unstable foundation. If you are turning to data to strengthen high-level decision-making,
Building a Benchmarking Foundation on Consistent, Accurate Data
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it’s necessary to use data that is accurate and consistent. Facilities managers need the
best data available to build a reliable foundation for useful benchmarking.
The best data is not just accurate, but also consistent data. You would never employ
different methods of collecting data across the buildings on your campus, because you
know that the benchmarking would be essentially meaningless. Similarly, you need to
use consistent methodology when making comparisons between campuses. But while
you can potentially put metrics in place that ensure that the same data is collected
across all of your facilities, this clearly isn’t possible when looking to compare your
campus to other campuses.
The truth is, to get consistent and accurate information for benchmarking across
campuses, you can’t rely on each college or university reporting their own data. There
are simply too many variables, as every institution accounts for finances and resources
differently.
By working with a third-party company for data analysis and benchmarking, facility
managers gain reliable insight into the strategic and operational performance of their
own campus, and their peers’ performance. It’s for this reason that consistency and
accuracy is the basis of Sightlines’ data collection processes. We collect data ourselves
rather than relying on reporting based on each institution’s varied best practices.
Because of this, we’re able to establish an accurate baseline that is consistent across
all types of higher education institutions.
When all of the collected data is tested for accuracy, reviewed longitudinally, and
compared to other data pieces, we’re able to demonstrate uniformity, qualify the
information on-hand and establish confidence in our comparisons.
Creating context for your data
Once you gather your data, the next step is to put it to use. You need to be able to use
that data by putting metrics into place upon which you build and communicate your
planning. These metrics need to be constructed in a way that’s technical, so that this
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information can be used to pinpoint improvements upon which the Facilities
Department can act. But this information also must be used strategically. When
it comes to data, context is critical.
If data is the foundation upon which you’re looking to secure funding for campus
improvements, then context is your structural support. You can’t simply use your data
to create a list of “need to dos.” You don’t want to go to trustees talking about chillers,
boilers and roofs. You want to frame discussions around strategy, investment
and commitment.
So how do you make this shift from data to knowledge to action? Consider the following
four steps:
• Talk to stakeholders to get an understanding of their priorities, and an
overall picture of the overall institutional mission. This will help you to
understand where facilities needs fit into future planning, and better
prioritize improvements.
• Use your data for prioritization. Not every campus need is equal. Some
projects will have greater urgency than others, or push the campus closer
to its ultimate goal more quickly.
• Create a list that is framed, targeted and clear. To do this, it helps to have
your end goal in mind. Focus on the data that supports your specific goals.
• Support your data with an argument that the layperson can understand.
By limiting the jargon on your list, and clearly articulating your plans for
improvement, you’ll more rapidly win over your audience to your cause.
For example, your discussions with stakeholders might reveal a common theme toward
expanding the campus while reducing its carbon footprint to make the institution more
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competitive with nearby universities that are using sustainability as a marketing theme.
Here you can turn to data to demonstrate how installation of a combined heat and
power system will not only help meet the Facilities Departments’ goal of modernizing
a quickly failing power system, but also help drive the institution forward in its
sustainability mission and generate savings for future investments. With data that
supports this goal, everyone wins.
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Once you have data that is confirmed for accuracy, the next step is to put metrics in
place that give your data context. But while analysis of your educational facilities’ data
can present valuable insight—for example, revealing performance trends over time—
this should only be a starting place. The next step is to apply your data to making fair
comparisons.
Benchmarking against like institutions can provide powerful insight as to how other
colleges or universities are performing in the areas that are of most concern to your
institution’s stakeholders, your potential student base, faculty and staff. Whether your
institution is promising a leading dining experience or modern classrooms, or seeking
to gain an edge in sustainability, it’s important to understand how your performance
measures up to your peers.
Making fair comparisons depends upon two factors: normalization of the data and
selection of a comparable peer group.
The Normalization Process
Normalization is the process of determining the common denominator that makes the
most sense for performing an effective comparison. Square footage is a denominator
frequently used for comparisons. However, other data might be more relevant,
CHAPTER 2
The Two Steps for Using Data to Make Fair Comparisons
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depending on the argument you’re seeking to make. For instance, normalization might
be better based on the number of students, full time equivalents, or Btu and other
energy data, among other criteria. Grouping data in various ways creates tangible,
manageable figures that can be used for effective benchmarking.
You may also find that normalization changes your perception of your campus’
performance, and tells a new story about where improvements are needed. For
example, your total energy expenditures might indicate that your campus’ spending
is roughly equivalent to what other local institutions are spending. However, normalizing
that data to show energy expenditure per gross square foot gives you a standard of
comparison that may indicate your spending is actually higher than your peers. This
more accurate comparison would present a powerful argument that it’s time to
identify areas for energy improvements that have the potential to generate
significant cost savings.
Use the Right Peer Group
Effective benchmarking also depends on making comparisons to similar institutions.
By comparing your information to educational facilities that are like yours, you’ll gain
the most accurate insight into how your campus is performing.
Similar campuses are best for benchmarking purposes, as they demonstrate the most
useful and informative benchmarks. But don’t get caught in the trap of thinking you’ll
consistently compare your performance to the same group across every metric. There
may be a different peer group for every comparison.
You might compare your campus to others that share common physical characteristics,
are located in the same region, have a similar financial standing, or have like enrollment
targets. The criteria you select will depend upon the information you’re seeking to gain.
For example, if you’re looking to gain insight on the effectiveness of your space
utilization and technical complexity, look to schools that are programmatically more
like your institution. When making comparisons of energy consumption, carbon
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emissions or utility expenditures, it would be better to use a local peer group rather
than admissions peers that are not local, given that most energy use is driven by
climatic conditions.
The bottom line is that you should not take a one-size-fits-all approach when selecting
the group of educational facilities against which you compare your institution’s
performance. Consider, too, that this group may change over time as your institution
meets its goals and evolves future targets.
Put Your Benchmarking to Work
Benchmarking puts your valuable data to work by creating a fuller picture of your
institution’s competitive standing in the marketplace. Effective peer benchmarking
also supports communication among all stakeholders, as it clearly demonstrates
areas where resources can best be allocated to meet campus goals.
Data is a powerful ally in decision-making, but with the context and standardization of
benchmarking, you’ll find the Facilities Department can become a much more strategic
player in campus planning.
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CHAPTER 3
Knowing how to use your data to convey value, and secure the support your
department deserves, is the final step in putting your data to work for strategic facility
planning and improvements. To get the full value from your data, it’s important to make
sure you’re using all of the relevant pieces to create a compelling story.
Consider: you wouldn’t dream of creating a ten-year campus plan without consulting all
relevant campus stakeholders. After all, you know only your department’s goals. You
wouldn’t be able to effectively factor in the overall campus mission without the full
picture presented by faculty, athletic department leadership, alumni relations,
administrators, boards of trustees, and so on.
Just as major campus planning shouldn’t be done in a vacuum, relying on a single
benchmark means seeing only one piece of the overall puzzle. Analyzing a range of
benchmarks together as a group allows you to see how specific campus actions affect
the entire physical portfolio, not just individual campus facilities or departments.
Rather than pushing a decision based on a single benchmark, use a variety of metrics to
tell a story that supports a strategic shift. For example, benchmarking may reveal that
maintenance staffing is high when considered in relation to comparable institutions.
However, additional benchmarking may indicate that an aging campus, with a significant
backlog of deferred maintenance, has placed heavy demands on maintenance staff. With
How to Use Your Data to Tell the Facilities Department’s Story
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this full picture, it’s now possible to make well-informed long-term decisions about
maintenance needs.
So once you’ve effectively performed your benchmarking, how do you know what
story to tell?
Let Your Benchmarks Demonstrate Your Department’s True Value
This powerful information can be used in a variety of ways, to support a number of
goals. Consider the following three examples of how your benchmarking information
can be used.
• Build relationships across campus. By demonstrating that you are effectively
using the school’s assets, facilities directors can build trust and partnerships in the
C-suite and with the community. For example, use your metrics on planned
maintenance and annual stewardship to show that you are supporting the campus
to the best of your ability. Or publish data on energy improvements to show how
the department has shifted from cost center to value-adder.
• Demonstrate that you are an effective campus steward. By highlighting
the impacts of campus improvements, you can demonstrate how the Facilities
Department is moving the campus in the direction of the campus’ overarching
mission. Whether it’s investments in staff or energy-efficient upgrades, make it
clear how your department’s activities means improvements for all.
• Secure additional funding for ongoing maintenance or capital investments.
By demonstrating how peer institutions are using funds, you can highlight areas
where campus improvements will provide a competitive edge. For example, if the
institution’s goal is to attract more on-campus residents to fill new student housing,
make it clear that dining hall improvements need to be made to support the increase
in applicants for student housing, with an eye toward making the institution
competitive with other institutions. By presenting the full picture—with a high level
perspective that takes into account activities across your campus and others—you’re
more likely to secure funding needed to meet your goals.
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Take Credit for Success
Too often the Facilities Department’s actions are overlooked when all is running well.
Data can help change this, as it clearly demonstrates how the department is pushing the
institution to succeed in its overarching mission. Through demonstration of this value,
the facilities director can secure the ear of the C-suite, and leverage relationships to
better support their staff and positon their department to meet the campus’ next goals.
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Data is a powerful tool, but only as useful as the context in which it is presented.
Through benchmarking, Facilities Departments can present a clear picture of how
their facilities are performing across the campus, and in comparison to other like
institutions across the country.
Benchmarking, however, is most effective when it harnesses the following five
key components:
• Consistency
• Accuracy
• Normalization
• Peer groups
• Context
When benchmarking is performed correctly, and this information is clearly conveyed
to all institution stakeholders, the Facilities Department can secure the funding and
support it needs to better perform its work.
Your department’s trustworthiness is strengthened when it takes actions grounded
in accurate data, with transparently measured progress. By relying on data and
benchmarking, facilities leaders can make a stronger case for affecting change
on campus.
Conclusion
About GordianGordian is the world’s leading provider of facility and construction cost data, software
and services for all phases of the building lifecycle. From planning to design,
procurement, construction and operations, Gordian delivers groundbreaking solutions
to contractors, architects, engineers, business and financial officers and facility
owners in local, state and federal governments, education, healthcare and other
industries. A pioneer of Job Order Contracting (JOC), Gordian’s offerings also include
our proprietary RSMeans data and Sightlines Facility Intelligence solutions. We
develop and maintain the largest collection of labor, material and equipment data and
associated costs for all areas of construction. Gordian’s solutions are accessed through
our innovative software platforms and supported by a team of industry experts
proven to help clients maximize efficiency, optimize cost savings and increase building
quality.
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