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Strategic Planning and Space Management Algonquin Colleges Experience Experiments

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Title: Strategic Planning and Space Management Algonquin Colleges Experience Experiments


1
Strategic Planning and Space ManagementAlgonquin
Colleges Experience / Experiments!
Ottawa Ontario
  • ERAPPA Annual Conference
  • Atlantic City
  • October 2005
  • Presenter Phil Rouble, Facilities Planning
    Specialist
  • Co-Presenter (in spirit) Mike Rushton, Director
    Physical Resources

2
Foreword
  • In slide show mode, only slides relevant to the
    ERAPPA 2005 Conference are presented
  • In normal mode and in notes view, additional
    background information has been provided
    explore
  • The Algonquin star denotes a watershed moment
    with high impact in our development

3
Changes from 2003 to 2005
4
Strategic Planning
Space Management
Space Mining
5
Departmental Strategic Plan 2003-2008
VISION The Where We Want to Go
Values Guiding Principles of Who We Are and
How We Behave
Strategic Actions
SMART Objectives
BRAGs Big Risky Audacious Goals
The How to Get to Vision
Strategic Areas of Focus
Action Plans Who / What / When
Mission The Why We Exist
More
Adapted from FMDC Model
6
Vision Statements
  • College Vision
  • Algonquin College will be the leading Canadian
    College delivering career- focused, quality
    education supported by client-centered service
    and technology
  • Physical Resources Vision
  • We will be valued and respected among Canadian
    Colleges for providing learning facilities and
    property management services that support student
    success

Alignment with College Strategic Plan was critical
7
Strategic Planning Leads to Thinking Strategically
Need to start with strategy
  • Strategy
  • A plan designed to achieve a particular long-term
    aim
  • Strategic
  • Forming part of a long-term plan to achieve a
    specific purpose

Good tactics are not enough
Tactic An action or plan that is intended to
achieve something Tactical Done or planned to
gain a specific end
8
OOPS!
OVER HERE!
YES!
HEY!
Great Tactics Wrong Vision We may be busy doing
things right but are we doing the right things?
9
Strategic Planning
  • Strategic planning disciplines an organization to
    look at the same big picture and to think
    strategically

10
The world of facilities administrators can be
cluttered with issues, actions and reactions
11
Action
Action
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Dilution of Resources
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12
Issue
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Concentration of Resources
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RID Analysis Root Issue Distillation
Root Issue
THEME
Root Issue
THEME
Root Issue
THEME
13
Physical ResourcesStrategic Areas of Focus
  • Effective leadership
  • Cost effectiveness
  • Growth and capacity
  • Service and quality

14
Growth and Capacity
  • BRAG Big Risky Audacious Goal
  • We will adopt a Real Property Management approach
    for College facilities
  • INDICATORS OF SUCCESS
  • We will supply the right amount and quality of
    facilities at the right time for the right price
    for all College activities
  • As stewards for College facilities we will
    develop College properties to meet growth
    objectives, we will quantify the demand for
    facilities, we will ensure the appropriate supply
    of facilities to meet demand, and we will avoid
    the oversupply of facilities.
  • We will look at the long term sustainability of
    facilities

15
Strategic Action
  • Strategic actions Big plays - Big moves

16
Strategic Actions Can Complement Strategic
Planning
Values
Mission Statement
Long-term Direction In the Future
Immediate Steps In the Present
17
Prospect Charting
Not every opportunity and challenge is the same
18
Prospect Charting
You cant do it all right away. Choose wisely.
Have patience.
Gold Nuggets
Polished Gems
Work harder to make these happen they make a
big difference The big plays with big results
High
Start with these to build some early successes
and momentum
Payoff
Dont waste your resources Dont play with
dynamite!
Just do these as they come along
Low
Fools Gold
Rough Stones
Effort
Easy
Hard
19
Prospect ChartingStrategic Planning
Gold Nuggets
Polished Gems
Consolidation of Large Urban Campus
Support Moving Activity Online
High
Departmental Strategic Plan
Campus Enhancement and Improvements
Demolition of Expired Classroom Facility
Consolidation of 3 Smaller Urban Campuses
Payoff
Low
Fools Gold
Rough Stones
Effort
Easy
Hard
20
SPACE
MANAGEMENT
21
How much learning occurs in empty space?
22
None
23
How much money disappears in empty space?
24
Too much to leave it empty!
25
Space Management Three Strategies for Success
Corporate Management of Space
Set Target Utilizations
A Space Costing Model That Works
26
Corporate Management of Space
27
The Culture of Space
  • Perception
  • Effect
  • Reality

I need space to succeed I must protect my space
at all cost Space is an enabling resource Space
must be allocated to support success
There is never enough space I must hide what I
have Space is a limited resource
My space is busy The real utilization of space is
often a cloudy picture All resources should be
used to the maximum value of the institution
End Result A culture of ownership and
protectionism and distrust
28
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 Management
    Committee

29
Algonquins Space Management Model
College Space Management Committee
Accountabilities for Space Optimization
Space is a Corporate Resource
Steering Body
Stewardship
No Ownership
Academic Room Inventory Approval
Utilization Reporting
Utilization Targets
Demand Analysis
Supply / Demand
Tracking Progress
Optimization Measure
Classrooms and Labs
More
30
Algonquins Space Management Model
31
Changing Culture
  • Need a reason to change
  • A crisis
  • No funding
  • Establish common ground
  • Change the language
  • Find a champion
  • Senior administrator
  • Best if driven by the academics
  • Nick Papadolias It wont work unless it is
    driven by the academics. They need to take
    ownership of the concept. It must be relevant to
    them and their success must be tied to it.
  • Harder to succeed if driven by a service
    department
  • Need to believe in it and accept it

32
Common Ground A Goal
To enable the delivery of quality curriculum in
the most appropriate space with the best student
timetables that College resources will permit
33
A New Language of Space
  • Access NOT Ownership
  • Open or Dedicated
  • Accountabilities NOT Users
  • Focus on Optimization of Space
  • Primary Accountability for Optimization
  • Suitabilities of Space NOT Use of Space
  • Functional
  • Attributes

34
Clear Accountabilities
  • CSMC accountable to ensure that space is
    strategically allocated to ensure the success of
    College initiatives
  • Deans and Directors accountable to ensure that
    optimization of space is always considered
  • Physical Resources accountable for the
    stewardship of College facilities assets
  • Registrars Office accountable to ensure that
    academic activities are scheduled in suitable
    space with quality timetables

35
Access to Rooms Overview
Access to Rooms
  • Avoids conflicts in scheduling by clarifying who
    decides what activity is best accommodated in a
    particular space
  • Open access to rooms may assist in the
    optimization of underutilized specialized spaces
  • Assigned by CSMC
  • Applies to both Daytime and CE activity
  • Does not refer to time constraints

Dedicated
Open
OR
  • Access managed centrally by Registrars Office
  • Access to space is Open to All Departments
  • Access to space is NOT restricted
  • Priority Access to Open Space
  • Permitted where appropriate
  • Curriculum needs
  • Improving optimization of a specialized space
  • Assessed by Registrars Office and Physical
    Resources
  • Subject to approval by CSMC
  • Managed equitably by Registrars Office
  • Access managed by specific School
  • Access to space is restricted to departments
    approved by specific School
  • Approved Departments are listed in Room Inventory
    under Department Access
  • Departments from other Schools may be included

More
36
Understanding Priority Access to Open Space
GENERAL NEEDS
SPECIALIZED NEEDS
Suitabilities of Space Resources
Priority Access Required for
Specialized Space Resources
General Space Resources
Specialized Space Resources with Optimization
Potential
General Space Resources with Specialized Features
  • Examples
  • Classroom Eclassroom
  • Classroom Theory
  • Computer Lab - General
  • Examples
  • Classroom Museum
  • Computer Lab Office Admin
  • Examples
  • Classroom CCP
  • Classroom ESL/FSL
  • Computer Lab New Media / CE
  • Examples
  • Lab Dental
  • Shop Welding
  • Computer Lab Linux
  • Access
  • Open
  • Primary Accountability
  • ALLD - All Departments
  • Access
  • Open
  • Primary Accountability
  • ALLD - All Departments
  • Access
  • Open
  • Primary Accountability
  • Specific School
  • Access
  • Dedicated
  • Primary Accountability
  • Specific School

37
Cornerstones of Effective Space Management
  • Senior administration support and champion
  • Clear recognition of the significance of space to
    the success of the organization
  • Program costing model that allocates space costs
    to academic programming
  • A healthy alternative for academics to consider
    during times of cost reduction and constraint
  • Helps with improving the bottom line
  • Space management committee chaired by a senior
    space champion
  • Ideally this

38
Cornerstones of Effective Space Management
  • Procedures and processes for managing space that
    continually reinforce the need to optimize the
    use of space
  • Inventories and reports that accurately and
    meaningfully reflect the portfolio of space
    resources and how they are being used
  • Well organized and understood room inventory
  • Access to centralized sources of scheduling
    information
  • Academic departments should be accountable to
    ensure data is up to date

39
Cornerstones of Effective Space Management
  • Support decision making
  • Offer solutions not problems
  • Help decision makers make decisions
  • Summarize the facts
  • Present options
  • Assess the risks
  • Make recommendations
  • Be proactive not reactive in the services offered
  • Effective data analysis techniques that shed
    light on areas of inefficiency and highlight
    opportunities for improved optimization
  • Well structured and undisputed information

40
Set Target Utilizations
41
This Vessel Called Space
Space is a container
42
This Vessel Called Space
Target Utilization
It is full at some point below the brim Try to
fill every space
43
This Vessel Called Space
It is usually obvious when it is not
full Filling the gap is the challenge
44
This Vessel Called Space
It is not a good thing to overfill! Timetable
quality and client satisfaction may suffer
45
This Vessel Called Space
The question Is it half full or half empty?
Poor performance? (Hide it!)
46
Capacity of Space
Room Utilization Rates
Station Occupancy Rates
Average Station Size
47
Optimizing Utilization Rates
Room Utilization Rates
Based on 50 hrs/week M-F 800am to 600pm
48
Optimizing the Other Aspects of Capacity
49
A Space Costing Model That Works
50
The Cost of Space
  • Space is a costly resource
  • 1 Human Resources
  • 2 Space Resources
  • Empty or full space consumes operating funds
  • Utilities
  • Housekeeping
  • Overbuilding consumes capital funds
  • Less money for academic equipment and other
    initiatives
  • More work to raise capital funds
  • Money spent on empty or underutilized facilities
    is not available to support or expand core
    academic activity
  • Fewer faculty
  • Older equipment
  • Poorer

51
How Can We Afford to Leave Space Empty?
  • What were we thinking?
  • Ignorance the cost of space is often hidden in
    overhead
  • The perception
  • Space is free
  • The answer
  • Let consumers of space know how much their space
    is costing
  • Give academic managers tools to manage their
    space along with their other costs
  • The solution
  • Implement a space costing model that allocates
    space operating costs to cost centres
  • Make it clear where subsidization occurs to
    inform decision making

52
Space Costing
  • Simple allocation of space operating costs to
    cost centers
  • Accurate within an order of magnitude
  • Only looks at scheduled space classrooms and
    labs
  • Applied during program assessment, performance
    and renewal
  • No transfer of funds or budgets
  • Only allocated against revenue generating
    departments
  • Academic areas
  • Ancillary services

53
ACADEMIC AREA PROGRAM ASSESSMENT/PERFORMANCE/RENE
WAL
PERFORMANCE QUALITY MEASURES
PROGRAM COSTING
PROGRAM RENEWAL/NEW PROGRAM OFFERING
PROGRAM REVIEW
REMEDIATION PLAN IMPLEMENTATION
PROGRAM SUSPENSION
From Area 5 Program Assessment Summary June
2004
54
Prospect ChartingSpace Management
Gold Nuggets
Polished Gems
College Space Management Committee
Capacity Metrics
Space Costing Model in Revenue Areas
Utilization Targets
High
Space Costing in Service Areas
Utilization Reporting
Complete College Space Inventory
Centralized Scheduling
Academic Space Inventory
Demand Analysis
Occupancy Rate Targets
Quality Timetable Indicators
Payoff
Low
Fools Gold
Rough Stones
Effort
Easy
Hard
55
SPACE
MINING
56
Prospecting for Space
Leads
Hearsay
Audits
Mostly yields rough stones with the occasional
nugget
Rumours
Observations
Hunches
57
Special Deans and Directors Space Workshop
  • Crisis
  • One year to consolidating the last large
    satellite urban campus
  • Over 30000 sf of unresolved space issues
  • Workshop Setup
  • All the Deans and Directors brought to a single
    large room
  • Wallpapered room with floor plans of facilities
  • Colour coded the classrooms and labs
  • Green Utilization target met or exceeded
  • Yellow Utilization between 50 to 100 of
    target
  • Red Utilization less than 50 of target
  • Outcomes and Observations
  • Full transparency
  • Most of the red spaces were allocated to programs
    which were in trouble
  • At end gave each participants 10 coloured dots
    to stick on spaces that they thought we should
    look into more closely
  • Space leads for follow-up

Suddenly all the lights went on!
58
Start with Higher Grades of Space with Bigger
Yields
General Classrooms
General Computer Labs
Bonus in reducing inventory of unused computers
Excess capacity in oversized specialized labs in
problem areas
Drill down to more difficult yields in
specialized labs
59
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!
60
  • Just because we (Academics) ask for space, it
    doesnt mean we should be given it
  • Nick Papadolias, Chair of CSMC
  • Executive Director of Academic Services

As stewards of the space resources, Physical
Resources has a responsibility to match supply
and demand for space and not to oversupply space
61
Demand AnalysisA More Fluid Approach to Space
Inventory
Active Pool of Open Spaces Available for
Scheduling
  • Guiding Principles
  • Do not oversupply space
  • All scheduled activity accommodated
  • Both Daytime and Continuing Education
  • Active pool of open spaces available for
    scheduling based on target utilizations
  • Classify activity into
  • Full semester activity
  • Half semester activity
  • Short duration actiivty

Reserves of space Swapped and/or added to active
inventory as needed
  • Demand Activated Open Spaces
  • Managed by Registrars Office as scheduling
    progresses
  • Used for
  • Accommodating new demand or changes in activity
  • Refining the quality of timetables
  • Bookings Internal and External
  • Look at
  • General classroom pool
  • General computer labs
  • General drafting labs
  • Not To Be Scheduled Spaces
  • Managed by Physical Resources
  • Used to accommodate various College initiatives
  • Maintenance and repairs, renovation swing space,
    short duration storage, cyclical College
    initiatives and projects, longer term bookings
  • Match mix of classroom sizes to section size
    clusters

62
Shed or Share Phenomenon
  • Driven by the Space Costing Model
  • Schools and departments approach CSMC and
    Physical Resources asking for help to shed space
    or share space
  • Sometimes requires reconfiguration of shop or lab
    space
  • Renewal of programs
  • New energy and synergies
  • Increased enrollments in programs

63
Prospect ChartingSpace Mining
Gold Nuggets
Polished Gems
Optimization of Specialized Labs
Renew Shed Space
Optimization of General Computer Labs
High
Optimization of General Classrooms
Utilization Reporting
Demand Analysis
Faculty Offices
Academic Space Inventory
Payoff
Reclaim Poor Quality Space
Senior Administration Offices
Lab Activity Audits
Change Locks on Vacant Space
After Hours Office Walkabouts
Low
Fools Gold
Rough Stones
Effort
Easy
Hard
64
Contact Info
  • Phil Rouble
  • roublep_at_algonquincollege.com
  • Mike Rushton
  • rushtom_at_algonquincollege.com

65
Appendix APhysical Resources Strategic Plan
2003-2008
Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
66
Vision Statements
  • College Vision
  • Algonquin College will be the leading Canadian
    College delivering career- focused, quality
    education supported by client-centered service
    and technology
  • Physical Resources Vision
  • We will be valued and respected among Canadian
    Colleges for providing learning facilities and
    property management services that support student
    success.

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
67
College Mission Statements
  • QUALITY
  • Algonquin College will consistently provide high
    quality and relevant programs and services
  • SERVICE
  • Algonquin College, through each and every
    employee, will demonstrate commitment to student
    and client success
  • TECHNOLOGY
  • Algonquin College will lead in the innovative
    use of technology to enhance our programs,
    services and the environment in which we work and
    learn
  • FINANCIAL STABILITY
  • Algonquin College will facilitate institutional
    stability by continuing to maintain and improve
    its financial position

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
68
Physical Resources Mission
  • To provide quality state-of-the-art facilities
    management through innovation and team based
    processes, in support of Algonquin College as it
    pursues its vision

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
69
Physical Resources Values
  • We are committed to achieving the highest level
    of excellence in delivering our services and
    products
  • We will conduct ourselves consistently in an
    honest and credible manner applying the highest
    ethical and moral standards
  • We will demonstrate responsible leadership in
    conducting our business and display courage and
    conviction in our judgement, decisions and actions

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
70
Physical Resources Values
  • We will foster a dynamic, innovative working
    environment that stimulates and empowers staff
    and encourages creativity and participation at
    all levels
  • We believe in trust, respect, teamwork and open
    communication in a culture where individuals are
    supported in their effort to grow professionally
    and personally

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
71
Physical ResourcesStrategic Areas of Focus
  • Effective leadership
  • Cost effectiveness
  • Growth and capacity
  • Service and quality

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
72
Effective Leadership
  • BOLD GOAL
  • We will be respected as the best led Physical
    Resources Department among Canadian Colleges
  • INDICATORS
  • All department employees know where we are going
    or will be well informed of where we are going
  • Respected by employees for firm, fair consistent
    HR practices. Reward excellence, maintain
    productivity, deal with inefficiencies
  • Employees view department as a place for personal
    growth and development
  • Model for leadership sought out by other Colleges
  • Our documented processes will become a standard
    for Colleges in Canada

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
73
Cost Effectiveness
  • BOLD GOAL
  • We will achieve and demonstrate maximum value
    for resources invested in College facilities and
    services
  • INDICATORS
  • We actively compare with industry to validate us
    as being best service provider
  • We will proactively compare ourselves within the
    relevant FM Industry
  • To be recognized as an Asset Manager rather than
    a cost centre
  • Our deliverables are provided in the most
    efficient, effective, and economical manner
  • We assess our initiatives for value contribution
    to the whole College

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
74
Growth and Capacity
  • BOLD GOAL
  • We will adopt a Real Property Management approach
    for College facilities
  • INDICATORS
  • We will supply the right amount and quality of
    facilities at the right time for the right price
    for all College activities
  • As stewards for College facilities we will
    develop College properties to meet growth
    objectives, we will quantify the demand for
    facilities, we will ensure the appropriate supply
    of facilities to meet demand, and we will avoid
    the oversupply of facilities.
  • We will look at the long term sustainability of
    facilities

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
75
Service and Quality
  • BOLD GOAL
  • Students and staff will view the quality of
    Algonquin's learning and working environments as
    among the best in Canada
  • INDICATORS
  • Algonquin's Woodroffe Campus will be recognized
    as a model of excellence for learning facilities
    among Canadian Colleges
  • The environment would contribute to the
    attraction of students to the College.
  • A model of energy efficiency and sustainability.
  • We will support student success through learning
    environment quality standards, which we meet
    consistently.
  • Provide for ready access to high quality, timely,
    effective services with a client centred focus.
  • Each employee of the department will demonstrate
    a professional client service attitude to every
    client they meet.

Vision
College Mission
Values 1
Values 2
Areas of Focus
Dept. Mission
Effective Leadership
Cost Effectiveness
Growth and Capacity
Service and Quality
Link Back to
Strategic Planning
Space Management
Space Mining
76
Appendix BSpace Costing Model
77
Space Costing
  • An effective cost allocation practice of
    assigning space operating costs to cost centres
  • Relatively simple to implement
  • Management tool for
  • Decision making
  • Managing costs increases range of options to
    consider
  • Improvements to the bottom line
  • Identification and elimination of overhead cost
    inefficiencies
  • Direct linking of costs to revenue generation
    area
  • Whats costed?
  • Space operating costs currently only allocated to
    revenue generating activities
  • Academic Services
  • Only scheduled space classrooms and labs
  • Ancillary Services

78
Program CostingFinancial Contribution
Financial Contribution Total Revenues Direct
Costs of Delivery
  • Total Revenues
  • Tuition fees
  • Provincial grant total
  • Basic grant
  • Add-on grant
  • KPI grant
  • Direct Costs of Delivery
  • Direct costs
  • Allocated overhead costs of
  • Department
  • Schools
  • VP Academic Services
  • Service costs from other program areas

79
Reduction of Program Subsidization
  • Financial performance expectations
  • Financial Contribution before space should exceed
    30
  • Financial Contribution after space should exceed
    25
  • The 5 contribution reduction is approximately
    equivalent to Physical Resources overall
    operating budget
  • The Board of Governors directed the College to
    reduce overall program subsidization
  • Overall subsidization now limited but not
    eliminated
  • List of subsidized programs reviewed each year
  • Program Costing is only one consideration in the
    overall Program Assessment Process
  • Failure to implement a successful remediation
    plan may lead to program suspension

80
ACADEMIC AREA PROGRAM ASSESSMENT/PERFORMANCE/RENE
WAL
PERFORMANCE QUALITY MEASURES
PROGRAM COSTING
PROGRAM RENEWAL/NEW PROGRAM OFFERING
PROGRAM REVIEW
REMEDIATION PLAN IMPLEMENTATION
PROGRAM SUSPENSION
From Area 5 Program Assessment Summary June
2004
81
Program AssessmentPerformance and Quality
Measures
Performance Quality Measures
QUALITY MEASURES Internal Statistics -Admissions
-Enrolment -KPI
PERFORMANCE MEASURES KPI Student
Satisfaction -Course Assessments -KPI
From Area 5 Program Assessment Summary June
2004
82
Program AssessmentProgram Costing
Year End Area 5 Revenues/ Expenses (Peoplesoft)
  • Program Offerings
  • Teaching contact hours
  • Audited enrolments
  • (GeneSIS)

Grant Financial Reporting (Finance)
Program Costing
Space Operating Costs Space Utilization Room
Inventory (Physical Resources)
Capital Investments Depreciation Fixed
Assets (Finance)
From Area 5 Program Assessment Summary June
2004
83
Key Accountabilities
  • Physical Resources
  • Quantifies space operating costs and establishes
    a reasonable unit cost for academic space
  • Publishes net area for spaces
  • Academic Services
  • Manages the allocation of space costs to program
    areas
  • Establishes incentives to optimize the use of
    academic space

84
Quantifying Space Operating Costs
  • Calculated by Physical Resources based on data
    from the Cost Operating Report (example next
    slide)
  • Total Operating Cost per SF charged against
    classroom and lab spaces
  • Average Cost Premium Costs
  • 2002/03 12.85 /sf
  • Average Cost per SF
  • Total Operating Budget for Physical Resources
    divided by total GSF of College
  • 2002/03 7.42 / sf
  • Premium Costs per SF for Classroom and Lab spaces
  • Incremental usage costs related to
  • Electrical and HVAC Maintenance
  • Building Maintenance
  • Cleaning
  • Utilities
  • 2002/03 5.43 / sf

85
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86
Program CostingAllocation of Space Costs
  • Assigned by Academic Services to various programs
    based on use of space
  • Dedicated space
  • 100 of cost of space assigned to program using
    space
  • Area of space x Total Operating cost / sf
  • Open (shared) space
  • Costs assigned to programs based on prorated
    average cost per scheduled hour of activity in
    all open spaces
  • No. of program hours x Average Cost per Scheduled
    Hour
  • Size of room is not considered as program areas
    to not control the size of open room in which
    activity is timetabled

87
Incentives to Further Optimize the Use of
Academic Space
  • Full cost recovery established from Fall and
    Winter activity
  • Spring term activity does not incur space costs
  • Goal - Increase Spring term activity to
    capitalize on available capacity
  • Open space costs are charged by the hour and are
    shared with the broader College
  • Invariably results in lower space costs
  • Open space is better optimized
  • Goal Encourage open space where appropriate

88
Space CostingDoes It Work? Very Well!
  • Academic Schools provided with a tool to more
    accurately map costs with revenue generation
  • Program subsidization has been significantly
    reduced and is now quantified
  • Academic areas are provided with additional
    options to reduce costs and better position
    programs for sustainability
  • Space dividend
  • Space is optimized to reduce costs
  • Shedding of space
  • Movement towards open (shared) rather than
    dedicated space
  • Redeployment of shed space
  • Redeployment of space from suspended programs

89
References
  • Stephen L. Nelson, Excel Data Analysis for
    Dummies
  • Chapter 14 Almost Ten Tips for Presenting List
    Results and Analyzing Data
  • Formisano, Roger A., Managers Guide to
    Strategy, New York, McGraw-Hill, 2004
  • FMDC
  • www.fmdceducation.com
  • ECS Education Consulting Services
  • www.ecs.on.ca
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