How to develop a strategic asset management plan
Physical assets provide the platform from which an organisation delivers its services. Those assets have a life: they are planned and created, used and managed and (when no longer required) disposed of. The management framework through which that asset life cycle passes is strategic asset management - aligning physical assets with service demands, and promoting better practices at all stages of the journey. Consider these key points to help you improve your asset management...
1. Decide on a strategic approach to asset management.
In the past, asset management has been associated with ‘accountant-speak’ and policies governing purchases, disposals, periodic stocktakes, custody, physical security, maintenance, transfer of assets, and reporting losses.
A strategic approach, however, has much more to offer the long-term development of the organisation. The guiding principles are:
- Assets exist only to support the delivery of services.
- Asset planning is a key corporate activity that must be undertaken along with planning for human resources, information systems, knowledge creation and transfer, and finances.
- Non-asset solutions (enhanced technology, technological alternatives, reskilling), full life-cycle costs, risk and existing alternatives must be considered before investing in building assets.
- Responsibilities for assets should reside with the elements that control them.
- Asset management at the organisational development level should reflect the organisation’s overall asset policy framework.
- Waste must be eliminated.
- The full cost of providing, operating, and maintaining assets should be reflected in the delivery of services.
2. Develop individual ‘plans’ leading to a strategic asset management plan.
The strategic asset management plan will consist of most or all of the following components:
Capital Development - applies to all capital ‘built’ assets including buildings, building services and plant, and the infrastructure necessary to support these assets.
Maintenance - applies to maintenance or restoration of non-current or capital physical assets to their original condition. Parts of this plan comprise: statutory maintenance (required by legislation), preventative maintenance (generally manufacturers’ requirements), corrective maintenance (breakdowns, for example), and deferred and backlog maintenance. Deferred and backlog information is derived through a comprehensive facilities audit.
Facilities Management - aligns the physical workplace with the people and work of the organisation. Examples include energy management (lighting, air conditioning) and the management of other utilities, environmental management, cleaning, waste removal, and recycling, cleaning, Workplace Health and Safety, and training. The facilities management plan is the area most often associated with asset planning.
Organisational Management - ensures facilities management activities are aligned with the strategic direction of the organisation. It will be the organisation’s culture and structure that ultimately determine the success of any facilities management.
Disposal/Adaptation - uses all assets to best support the mission of the organisation.
3. Apply a similar structure to those features.
The following structure could apply to each ‘plan’:
Definition - what you mean by ‘maintenance’ or ‘facilities’, etc.
Objective - what the plan hopes to achieve
Scope - what is covered by the plan
Benefits and Risks - benefits of having and the risks of not having the plan
Statutory Requirements - those that impact on the process
Responsibilities, Roles, and Functions - what is to be done, by whom
Performance Indicators - how you will measure the effectiveness and efficiency of the plan
Competencies and Training - what core competencies and associated training are required.
You will find a flow chart a valuable tool in illustrating how each element contributes to individual plans.
