assess, analyze, execute: three companies working together to optimize the capital planning process...
DESCRIPTION
All too often, campuses focus solely on technical or “systems” solutions to their facility investment decisions. This approach, which relies upon multiple companies, lacks integration and seldom provides the funding or the program flexibility to effectively manage facility assets; unfortunately, frustration and confusion often result. Key to driving the effective investment program is defining management policies that support investment flexibility to coordinate multiple funding sources, to correct priority needs and to measure performance — both to program objectives and campus improvement. This session will discuss the synergies of Sightlines, ISES, and AssetWorks to illustrate how the coordination of technical data, effective systems, and capital investment policy intersects to enhance the capital planning process to work cooperatively toward achieving your goals.TRANSCRIPT
Assess, Analyze, Execute
Glenn Adams, AssetWorks, LLCDan Harrison, ISES CorporationDavid Kadamus, Sightlines, LLC
Three Companies Working Together to Optimize the Capital Planning Process
Worthington Renaissance Fort WorthApril 7‐11, 2014
What you’re facing…
Facilities and Asset
Optimization
Capital Renewal Backlogs
Budget Justification
Risk Mitigation
Information Silos
Worthington Renaissance Fort WorthApril 7‐11, 2014
Liquidity Crisis
“Approximately one‐third of all colleges and universities have financial statements that are significantly weaker than they were several years ago.”
Denneen & Dretler, The Financially Sustainable University
Worthington Renaissance Fort WorthApril 7‐11, 2014
Your Largest Asset
0%
10%
20%
30%
40%
50%
60%
70%
80%
Selective LiberalArts
Private Large Univ. ComprehensiveUniv.
Public Univ.
PPE % of Assets PPE Adj. to Net Assets
Balance Sheets Understate Importance of Physical Assets
Worthington Renaissance Fort WorthApril 7‐11, 2014
Asset Inventory & ClassificationRecurring Asset Renewal
Non‐Recurring Deficiencies
Concepts
Work OrderCapital Project
Project PortfoliosPlanning Groups
Strategic Plan
Property Needs AnalysisCapital Project RequestCapital Budget Request
1. Assessment
2. Multi‐Year Investment Plan
3. Project Selection and
Funding
4. Execution
Worthington Renaissance Fort WorthApril 7‐11, 2014
HARPER HALL
Harper Hall
Worthington Renaissance Fort WorthApril 7‐11, 2014
Executive Summary
HARPER HALL
Harper Hall
Non‐Recurring Costs = Assessment Deficiencies
Worthington Renaissance Fort WorthApril 7‐11, 2014
Executive Summary
Recurring Costs = Condition Assessment Asset Profiles
Worthington Renaissance Fort WorthApril 7‐11, 2014
Executive Summary
Worthington Renaissance Fort WorthApril 7‐11, 2014
HARPER HALL
Harper Hall
Worthington Renaissance Fort WorthApril 7‐11, 2014
Asset Inventory & ClassificationRecurring Asset Renewal
Non‐Recurring Deficiencies
Concepts
Work OrderCapital Project
Project PortfoliosPlanning Groups
Strategic Plan
Property Needs AnalysisCapital Project RequestCapital Budget Request
1. Assessment
2. Multi‐Year Investment Plan
3. Project Selection and
Funding
4. Execution
Worthington Renaissance Fort WorthApril 7‐11, 2014
We Need to Change the ConversationLanguage that Drives Effective Policies for…
SpaceRelease The
Hidden Value in Balance Sheets
SpaceRelease The
Hidden Value in Balance Sheets
Capital $Multiyear Plans that Align to
Mission, & Risk
Capital $Multiyear Plans that Align to
Mission, & Risk
OperationsImprove
Effectiveness & Lower Facilities Overhead Impact
OperationsImprove
Effectiveness & Lower Facilities Overhead Impact
Worthington Renaissance Fort WorthApril 7‐11, 2014
Facilities Backlogs Continue to RiseCurrent Capital, At +/‐$5 per GSF, is Not Slowing Backlog Growth
$77 $79 $80 $82 $85 $87 $90
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
$‐
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2007 2008 2009 2010 2011 2012 2013
$/GSF
National Average Backlog $/GSF
Backlog/GSF Percentage Change of Backlog
Worthington Renaissance Fort WorthApril 7‐11, 2014
Two waves of constructionFirst wave of buildings are now 50 years old; second wave nears 25 years old
Worthington Renaissance Fort WorthApril 7‐11, 2014
Building Portfolio Define a Multi‐Year Investment Plan“Picking Projects With A Purpose”
Apply Building Portfolio& Timeframe
Apply Investment Criteria & Timeframe
Multi‐Year Strategic Plan
Geographic, Program, Transitional, & Years
Reliability, Asset Preservation, Program, Economic Operations ,
Safety/Code & Years
Full Inventory of Needs
Electrical, Plumbing, HVAC, Mechanical, Exterior, Interior,
Safety…
How Do You Target Needs
?
Building Portfolio Process
Current C
hallenge
Prop
osed
Solution
Pick Projects
Full Inventory of Needs
Electrical, Plumbing, HVAC, Mechanical, Exterior, Interior,
Safety…
Worthington Renaissance Fort WorthApril 7‐11, 2014
Asset Inventory & ClassificationRecurring Asset Renewal
Non‐Recurring Deficiencies
Concepts
Work OrderCapital Project
Project PortfoliosPlanning Groups
Strategic Plan
Property Needs AnalysisCapital Project RequestCapital Budget Request
1. Assessment
2. Multi‐Year Investment Plan
3. Project Selection and
Funding
4. Execution
Worthington Renaissance Fort WorthApril 7‐11, 2014
Execution Scenarios
Work Order
Capital Project
Worthington Renaissance Fort WorthApril 7‐11, 2014
Asset Inventory & ClassificationRecurring Asset Renewal
Non‐Recurring Deficiencies
Concepts
Work OrderCapital Project
Project PortfoliosPlanning Groups
Strategic Plan
Property Needs AnalysisCapital Project RequestCapital Budget Request
1. Assessment
2. Multi‐Year Investment Plan
3. Project Selection and
Funding
4. Execution
Assess, Analyze, Execute
Glenn Adams, AssetWorks, LLCDan Harrison, ISES CorporationDavid Kadamus, Sightlines, LLC
Three Companies Working Together to Optimize the Capital Planning Process