I’ve often felt that the facilities management functions at most higher education institutions have not been viewed with the importance that it deserves.  I say that not because I spent nearly 20 years as a higher education facilities professional (which I did), but because the facilities portfolio often seems to be the least understood and least measured of the primary asset pools which higher education is responsible.

Most institutions have a financial endowment.  For many private institutions, and some publics, it can be a very important asset. It is measured and reported on a regular basis.  Metrics like ‘rates of return’, ‘payout rates’, ‘growth rates,’ and a myriad of other indices are tracked on a regular basis to monitor performance.

Of course, educational institutions track the performance of their educational and research functions very carefully.  Sometimes it seems an institution’s identity is being determined by how an incoming freshman class is measured. Average SAT scores, class ranking of incoming students, admission rates, admitted yield rates, are only a few of the indices which are reported on the incoming class.  Departmental rankings, faculty publications, degrees conferred, class sizes, ratio of faculty to students are only a very few of the other measures that institutions report when monitoring the academic activities.

But, what is known and reported about the facilities portfolio?  I find it very interesting that even small to midsized colleges and universities will have several hundred million dollars in buildings and land which they are supporting – they often don’t know the detail of the operations and maintenance costs for the buildings.  Understanding the costs of providing utilities, daily maintenance, periodic maintenance, and being able to predict capital renewal requirements are only a few of the indicators which are necessary for managing the facilities portfolio.

All building space on campus carries a cost.  But, space is also an asset in supporting campus activities and the academic mission of the institution.  To assure the institution is getting full value for the money that is spent on its facilities portfolio it is important to make sure that there is an appropriate alignment between the costs and the degree to which the building space is supporting the institutional strategic objectives.  Having an appropriate set of measures and performance indicators in place which specifically target the facilities is essential.