Frances Mueller Assistant Vice Provost for Academic & Budgetary Affairs

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

2. Topics Covered • Space: a critical resource • University of Michigan story • Challenges • Approach • Results • Key takeaways

3. But before we begin…

4. 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.

5. 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

6. Changing Needs: Academic Lectures Low tech Individual work Interactive High tech Team-based work NCSU SCALE-UP Classroom

7. Changing Needs: Research Independent Dedicated space Dedicated equipment Collaborative Interdisciplinary Shared space & equipment

8. Changing Needs: Student Life In-person services Dining halls Studying alone Online services Dine anywhere 24/7 & collaborative studying

9. Facility Challenges Space that may be… Buildings that vary in… Outdated Not enough Too much of the wrong space or State-of-the-art and just right… for now Age Architecture & construction Condition Infrastructure Level of energy efficiency

10. Space: It’s Really Expensive Every square foot adds costs for: • Power requirements • HVAC • Hazardous waste disposal • IT infrastructure • Utilities • Maintenance & upkeep

11. Our Story

12. 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 $$)

13. 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%)

14. 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??

15. 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

16. Approach • Foundational tools • Policies & processes • Data, systems, & management reporting • Culture change • Increase sharing • Repurpose existing space • Reminders that space is an institutional resource

17. Policies & Processes • Capital projects • Research space • Office space • Classroom scheduling

18. Data & Reporting • System enhancements • Increased data collection • Standardized reporting

19. 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

20. 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

21. 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

22. Strategic & Creative Solutions: Repurposing Space to Other Uses Financial Impact Examples • 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 tensofmillions

23. Cross-Functional Partnerships Ensures everyone is on the same page, has the same goals, and has an opportunity to provide input

24. Results

25. Impact on Square Footage Growth Cost Avoidance 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

26. Impact on Energy Consumption Slower building growth + campus energy conservation efforts results in one-time cost reductions of over $31m Electric Steam

27. 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

28. Take a Holistic Approach to Space Management Raises campus awareness & helps to change the campus culture

29. 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

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