The Importance of Managing Space Effectively Frances Mueller

The Importance of Managing Space Effectively Frances Mueller Assistant Vice Provost for Academic & Budgetary Affairs APPA Senior Facilities Officers Summit – Minneapolis, MN | August 1, 2013

Topics Covered • Space: a critical resource • University of Michigan story – Challenges – Approach – Results • Key takeaways APPA Senior Facilities Officers Summit – August 1, 2013 | 2

BUT BEFORE WE BEGIN… APPA Senior Facilities Officers Summit – August 1, 2013 | 3

Quick Networking Activity § RED No space management practices, data, or policies in place. § YELLOW Loosely structured space management practices in place. Some space data or a few policies exist. § GREEN Comprehensive space management practices, database, and policies in place and used regularly. APPA Senior Facilities Officers Summit – August 1, 2013 | 4

Space: A Critical Resource • Needed to advance the mission of our organizations • Important for recruitment & retention • Important for economic development However… • Finite & expensive • Politically sensitive • Challenging to manage with changing needs & constrained resources APPA Senior Facilities Officers Summit – August 1, 2013 | 5

Changing Needs: Academic Lectures Interactive Low tech High tech Individual work Team-based work NCSU SCALE-UP Classroom APPA Senior Facilities Officers Summit – August 1, 2013 | 6

Changing Needs: Research Independent Collaborative Dedicated space Interdisciplinary Dedicated equipment Shared space & equipment APPA Senior Facilities Officers Summit – August 1, 2013 | 7

Changing Needs: Student Life In-person services Online services Dining halls Dine anywhere Studying alone 24/7 & collaborative studying APPA Senior Facilities Officers Summit – August 1, 2013 | 8

Facility Challenges Buildings that vary in… Space that may be… Age Outdated Architecture & construction Not enough Condition Too much of the wrong space Infrastructure Level of energy efficiency or State-of-the-art and just right… for now APPA Senior Facilities Officers Summit – August 1, 2013 | 9

Space: It’s Really Expensive Every square foot adds costs for: – Power requirements Demolition 1% – HVAC – Hazardous waste disposal – IT infrastructure Capital renewal 33% Construction 33% – Utilities – Maintenance & upkeep Maintenance & operations 33% APPA Senior Facilities Officers Summit – August 1, 2013 | 10

OUR STORY APPA Senior Facilities Officers Summit – August 1, 2013 | 11

University of Michigan – Ann Arbor • 42, 700 students • 24, 800 faculty & staff (excluding hospital) • 602 buildings • 540+ general classrooms • 32. 6 million gsf overall • 17. 1 million gsf of General Fund space (supported by tuition & taxpayer $$) APPA Senior Facilities Officers Summit – August 1, 2013 | 12

Financial Challenges • Unpredictable, declining funding – State of Michigan – Donor gifts – Research funding • Unpredictable, rising energy costs • Significant building growth for 10 years (average annual growth ~ 2%) APPA Senior Facilities Officers Summit – August 1, 2013 | 13

Cultural Challenges • Decentralized environment • Few pressing space constraints • Reluctance to share space • Campus perception that space is a – “Owned” by individual schools & departments vs. an institutional resource – “Free good” So what do we do? ? APPA Senior Facilities Officers Summit – August 1, 2013 | 14

Campus-Wide Space Utilization Initiative • Multi-year initiative from 2007 to 2011 • Part of U-M cost containment • Goals: – Limit need for future expansion – Limit average annual square footage growth to <1% – Leverage highest quality spaces to advance our academic mission – Reduce environmental impact APPA Senior Facilities Officers Summit – August 1, 2013 | 15

Approach • Foundational tools – Policies & processes – Data, systems, & management reporting • Culture change – Increase sharing – Repurpose existing space – Reminders that space is an institutional resource APPA Senior Facilities Officers Summit – August 1, 2013 | 16

Policies & Processes • Capital projects • Research space • Office space • Classroom scheduling APPA Senior Facilities Officers Summit – August 1, 2013 | 17

Data & Reporting • System enhancements • Increased data collection • Standardized reporting APPA Senior Facilities Officers Summit – August 1, 2013 | 18

Data & Reporting Example CLASSROOM UTILIZATION Helps us determine: • How our classrooms are used & opportunities for - increasing activities - sharing - converting to other uses • Facility schedules: - building fans - custodial work - room, equipment repairs APPA Senior Facilities Officers Summit – August 1, 2013 | 19

Data & Reporting Example (cont. ) MEDICAL SCHOOL Uses space and financial data + geographic information system (GIS) to: • Determine space allocations • Determine productivity within research space • Identify opportunities to reassign space, if needed APPA Senior Facilities Officers Summit – August 1, 2013 | 20

Strategic & Creative Solutions: It’s Good to Share! • Classrooms – All general purpose classrooms available for shared use (8 -5) – Piloted evening use by Washtenaw Community College • Computer server rooms • Vivaria (space for animal subjects) • Public/private partnerships • Requirement to share space whenever central funding is used APPA Senior Facilities Officers Summit – August 1, 2013 | 21

Strategic & Creative Solutions: Repurposing Space to Other Uses Examples • Off-campus Universityowned buildings to – Collections complex Financial Impact • Avoids construction & leasing costs in the tens of millions – Studio complex • Classrooms & library stacks to – Test-taking facilities – Collaborative space – Other higher priority academic needs APPA Senior Facilities Officers Summit – August 1, 2013 | 22

Cross-Functional Partnerships Ensures everyone is on the same page, has the same goals, and has an opportunity to provide input Facilities & Operations Academic Affairs Finance APPA Senior Facilities Officers Summit – August 1, 2013 | 23

RESULTS APPA Senior Facilities Officers Summit – August 1, 2013 | 24

Impact on Square Footage Growth Average Annual Growth Rate 2. 50% Cost Avoidance Taking a more strategic approach to campus growth & slowing our building growth to below 1% enabled us to avoid: 2. 02% 2. 00% 1. 50% 1. 00% – $616 million in one-time capital costs 0. 50% – $24 million in annual operating costs 0. 35% 0. 00% 2/00 to 1/07 2/07 to 1/12 APPA Senior Facilities Officers Summit – August 1, 2013 | 25

Impact on Energy Consumption Steam (mlbs) 2, 500, 000 250, 000 200, 000 2, 000 150, 000 1, 500, 000 1, 000 500, 000 0 100, 000 Slower building growth + campus energy conservation efforts results in one-time cost reductions of over $31 m Electric (kwh) 3, 000 General Fund Steam & Electric Sales FY 03 -FY 12 50, 000 0 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 Electric Steam APPA Senior Facilities Officers Summit – August 1, 2013 | 26

Summary of Our Approach – Foundation, tools for effective space management – Disciplined processes for space expansion – Greater sharing of facilities – Conversion of poor quality & underutilized space to higher priority needs Results – Significant reduction in building growth – Contributions to reduced energy consumption – Shift in campus culture APPA Senior Facilities Officers Summit – August 1, 2013 | 27

Take a Holistic Approach to Space Management Data & Systems Processes & Policies Standards, Metrics & Monitoring Raises campus awareness & helps to change the campus culture Strategic & Creative Solutions Partnerships APPA Senior Facilities Officers Summit – August 1, 2013 | 28

Summary A good foundation of data, policies, process, etc. is key to effective space management & utilization The foundation supports strategic decisions that can shift the campus to a culture of greater space stewardship & contain space costs APPA Senior Facilities Officers Summit – August 1, 2013 | 29

For more information www. provost. umich. edu/space francesm@umich. edu APPA Senior Facilities Officers Summit – August 1, 2013 | 30