Frances Mueller

Assistant Vice Provost for Academic & Budgetary Affairs

APPA Senior Facilities Officers Summit – Minneapolis, MN | August 1, 2013

The Importance of Managing Space Effectively

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Topics Covered

• Space: a critical resource

• University of Michigan story– Challenges

– Approach

– Results

• Key takeaways

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BUT BEFORE WE BEGIN…

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Quick Networking Activity

REDNo space management practices, data, or policies in place.

YELLOWLoosely structured space management practices in place. Some space data or a few policies exist.

GREENComprehensive space management practices, database, and policies in place and used regularly.

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• 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

Space: A Critical Resource

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Changing Needs: Academic

Lectures

Low tech

Individual work

Interactive

High tech

Team-based work

NCSU SCALE-UP Classroom

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Changing Needs: Research

Independent

Dedicated space

Dedicated equipment

Collaborative

Interdisciplinary

Shared space & equipment

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Changing Needs: Student Life

In-person services

Dining halls

Studying alone

Online services

Dine anywhere

24/7 & collaborative studying

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Facility Challenges

Buildings that vary in…

Age

Architecture & construction

Condition

Infrastructure

Level of energy efficiency

Space that may be…

Outdated

Not enough

Too much of the wrong space

or

State-of-the-art and just right… for now

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Space: It’s Really Expensive

Every square foot adds costs for:– Power requirements

– HVAC

– Hazardous waste disposal

– IT infrastructure

– Utilities

– Maintenance & upkeep

Construction33%

Maintenance & operations33%

Capital renewal

33%

Demolition1%

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OUR STORY

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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 $$)

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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%)

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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??

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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

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Approach

• Foundational tools– Policies & processes

– Data, systems, & management reporting

• Culture change– Increase sharing

– Repurpose existing space

– Reminders that space is an institutional resource

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Policies & Processes

• Capital projects

• Research space

• Office space

• Classroom scheduling

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Data & Reporting

• System enhancements

• Increased data collection

• Standardized reporting

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Data & Reporting Example

CLASSROOM UTILIZATIONHelps 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

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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

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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

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Strategic & Creative Solutions: Repurposing Space to Other Uses

• Off-campus University-owned buildings to– Collections complex

– Studio complex

• Classrooms & library stacks to– Test-taking facilities

– Collaborative space

– Other higher priority academic needs

• Avoids construction & leasing costs in the tens of millions

Examples Financial Impact

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Cross-Functional Partnerships

Facilities & Operation

s

Academic Affairs Finance

Ensures everyone is on the same page, has the same goals, and has an opportunity to provide input

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RESULTS

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2/00 to 1/07 2/07 to 1/120.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2.02%

0.35%

Average Annual Growth Rate

Impact on Square Footage Growth

Taking a more strategic approach to campus growth & slowing our building growth to below 1% enabled us to avoid:

– $616 million in one-time capital costs

– $24 million in annual operating costs

Cost Avoidance

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Impact on Energy Consumption

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY120

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

General Fund Steam & Electric SalesFY03-FY12

Ste

am

(m

lbs

)

Ele

ctr

ic (

kw

h)

Slower building growth + campus energy conservation efforts results in one-time cost reductions of over $31m

SteamElectric

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Summary of Our Approach

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

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Take a Holistic Approach to Space Management

Data & Systems

Standards, Metrics &

Monitoring

PartnershipsStrategic &

Creative Solutions

Processes & Policies

Raises campus awareness & helps to change the campus culture

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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

For more information

www.provost.umich.edu/space

francesm@umich.edu

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