Key Performance Indicators for measurement of portfolio performance

1. Key Performance Indicators for measurement of portfolio performance

2. Objectives • Improve portfolio performance • Improve the efficiency & effectiveness of service delivery

5. Changing Face of FM • In the 1980’s and 1990’s research in the US showed that the facilities were seen as an expense and not closely linked to corporate objectives. • As competition increased, all costs were scrutinised, including facilities costs. • Organisations to take a more integrated approach to managing all resources (people, IT, facilities and money)

6. Changing Face of FM

7. Key Questions Senior Executives of Corporations asked the following questions:- • What facilities do we have? • What condition are they in? • What facilities are needed to support the mission? • What problems & issues need to be addressed? • How much are we investing? How much do we need to invest? • What are the outcomes of this investment?

8. Key Questions To improve decision making and management of portfolio investments, organisations must track:- • Performance measures that reflect facility portfolios • The level of alignment with the organisations mission. • Investment levels and investment outcomes. This presentation will examine key performance indicators that support portfolio management.

14. Lesson 1 Like Universities, tow truck companies often underestimate the resources required to do the job

15. Key Questions

25. Lesson 2 If in doubt …… get a bigger truck

26. What facilities are required to support the mission? • Is there enough space to support the mission? • Is that space aligned to the mission? Is it the right type of space? • Does the level of service provided by the space support the mission?

27. Measurement of space • A standard definition of space types • Defined space allocation standards • An assessment of actual space vs the standard Required outcome – Asset Utilisation Index (AUI)

28. Level of Service

29. Key Measures of Level of Service • Facility Condition Index (FCI) • Facility Functionality Index (FFI) • Facility Needs Index (FNI)

30. How much do we invest? • Need to disseminate expenditure on current portfolio vs growth. Focus here on “maintaining” the portfolio. • Main focus usually is on maintenance with the Maintenance Index (MI) used as the main guide. • Degree of capital investment in renewal refurbishment of the portfolio also needs to be considered (Capital Renewal Index).

31. How much do we need to invest? • For the existing portfolio, it will be the level of expenditure required to deliver the targeted FCI, FFI and/or FNI. • For changing the portfolio, it will be the expenditure required for growth.

34. TEFMA Benchmarking • Are the TEFMA benchmarks strategic? • Do they focus on portfolio performance (strategic) or service delivery (tactical)? THEY HAVE A BIT OF BOTH

37. Lesson 3 ..... Still not big enough. Obviously did not fully understand the problem before adding more resources.

40. Way forward to make TEFMA benchmarks more strategic • Focus on developing definitions and standards for space so that AUI can be assessed. • Do more work on formulating FFI • Define and include CRI in the current benchmarks

42. Lesson 4 Pay attention to lessons 2 & 3.