Managing the Facilities Portfolio

AM Foundational Thinking Miniseries - Reloaded

This continues the Foundational Thinking miniseries with an overview of the National Association of College and University Business Officers’ Managing the Facilities Portfolio: A Practical Approach to Institutional Facility Renewal and Deferred Maintenance published in 1991.

The purpose of Managing the Facilities Portfolio was to provide “a detailed methodology for long-term financial planning for facility renewal and adaptation.” It is the second half of the Financial Planning Guidelines for Facility Renewal and Adaptation report covered two articles earlier. Managing the Facilities Portfolio’s objective was to “furnish institutional decision makers with models, tools, and techniques for protecting the value of institutional plant assets” at a portfolio level.

Managing the Facilities Portfolio responded to the same macrotrends seen in other sectors in America. That was increasing capital renewal requirements were coming due from a post World War II / 1950s and 1960s building boom. The …