Asset Governance – Integrated Strategic Asset Management Kerry Brown and Robyn Keast

Asset Governance through the ISAM Guide

Asset Governance: Frameworks and Tools Asset Governance requires a holistic approach throughout an organisation or department using whole of life strategic integrated asset management.

Integrated Strategic Asset Management

Environmental Factors FRAMEWORK COMPONENTS Environmental Factors Community Needs and Expectations Environment affects assets, their functions and their safety Risk management provides adequate responses Sustainable management reduces the ecological footprint A key to understand the needs for assets and services Critical activity: stakeholder management Environmental Factors The environment affects assets, their functions and their safety. Furthermore, climate change and human-caused environmental changes create a greater than ever need to take into account environmental impacts and more urgency to consider sustainability management. Risk Management provides a systematic way of identifying and analysing potential risks, and helps to create and implement adequate responses. Sustainable management practices aim to reduce the ecological footprint. Community Needs and Expectations Understanding community needs and expectations is a key to understanding the needs for assets and services. Stakeholder management assists in the process of interpreting the expectations through a range of stakeholder selection and engagement strategies.

FRAMEWORK COMPONENTS Whole-of-Government Policy Whole-of-Government Policy Framework Organisational Strategic Management Whole-of-Government Policy Use government resources to make decisions and prioritise services to meet community needs and expectations Whole-of-Government Model Provides overall direction for Asset Management Gives effect to government policy decisions Improves consistency and control Provides cost effective and efficient service delivery Gives effect to whole-of- government policy Involves an understanding of governance, corporate policy and corporate objectives Whole-of-Government Policy Framework Agencies should manage assets consistent with whole-of-government policy frameworks, which use government resources to make service delivery decisions, thus provide overall direction for Engineering Asset Management. Whole of government policy utilises the capacity to think across all the agencies and uses government resources including skills and experience to make decisions and prioritise services to meet community needs and expectations. Whole of Government model overcharges the corporate policy statements and provides overall direction for Engineering Asset Management. Whole of Government model gives effect to government policy decisions improves consistency and control provide scost effective and efficient service delivery Organisational Strategic Management - gives effect to whole-of-government policy through service delivery - involves an understanding of governance, corporate policy, corporate objectives, corporate strategy and interagency collaboration - helps to determine how the delivery of asset and service should occur and what is required

FRAMEWORK COMPONENTS Provides high value service delivery outcomes Service Delivery Strategic Planning Service Delivery Tactical and Operational Planning Provides high value service delivery outcomes Considers sustainability principles Is guided by asset management policy and objectives Is implemented through asset management strategy Implementation of an organisation’s asset management strategy Acquisition, Operations, Maintenance and Disposal plans Service Delivery Strategic Planning Background Information Service delivery  includes provision of new assets or the re-use of existing assets as well as non-asset solutions including contracted services supplied by external parties A Service Delivery Strategy  translates the broad aims of an organisation into specific service outcomes outlines the plans to deliver services, which will satisfy community needs and obtain value for money Service Delivery Strategic Planning  Aims to achieve high value service delivery outcomes while considering sustainability principles It is guided by asset management policy and objectives, which need to be based on Corporate Policy and Objectives, and consistent with the Government Policy Framework and Government Objectives. It is implemented through Asset Management strategy sets out activities, which help to achieve the Asset Management Objectives, as well as supports the Corporate Strategy and the achievement of the Corporate Objectives. Service Delivery Tactical and Operational Planning Service Delivery Tactical and Operational Planning is the implementation of an organisation’s asset management strategy. It is underpinned by the acquisition, operations, maintenance and disposal plans

FRAMEWORK COMPONENTS Service Delivery Evaluation Creation, maintenance, renewal, upgrade and disposal of the assets Clear assignment of responsibility and accountability Measuring asset performance Reporting Reviewing Auditing Service Delivery Service delivery activities would generally comprise the creation, maintenance, renewal/upgrading and disposal of the assets, but may also include operational activities. For optimal service delivery clear assignment of responsibility and accountability should be established for each asset and its related operations. Evaluation Evaluation is the measuring, reporting and reviewing of asset performance against asset management, organisational and government objectives. Measuring asset performance  can determine how effectively assets support services. Reporting  provides comprehensive information on service delivery and asset performance. Reviewing  ensures that performance of assets align with asset management service delivery objectives and that outputs meet service delivery requirements. The review typically involves processes such as strategic analysis, gap analysis, demand management and risk management. Organisations need to regularly review the performance of their assets and their management. Auditing  can lead to improvements in asset management. Auditors assess whether or not the organisation is complying with regulatory frameworks and whether services are being delivered efficiently and effectively.

Organisational Management FRAMEWORK COMPONENTS Knowledge Management Organisational Management Underpins the capacity to develop new ways of creative responses Improves decision making Increases productivity Knowledge management tools - Asset Register Asset Data Optimises service and asset management outcomes through - Leadership Change management Organisational competencies and skills Asset management culture Knowledge Management In the current knowledge rich environment, the management of information and information systems is a central task. Integrated information systems and effective knowledge management processes underpin the capacity to develop new ways of thinking and creative responses necessary to improve decision-making and increase productivity. Asset Registers, integrated into information systems, allow for asset related data to be readily cross-referenced and retrieved. Asset data and information includes details on asset characteristics, categorisations and asset valuations. Effective data and information management enables staff to access and use information and maintains integrity of shared data. Organisational Management Effective organisational management helps to optimise service and asset management outcomes. This is achieved through effective leadership, change management, organisational competencies and skills, and asset management culture.

Key Capabilities (cont’d) Understanding the requirements for good practice asset governance within government and industry Body of Knowledge for integrated strategic asset management Documentation about Best Practice from industry and research. Case study examples 10

Asset Management Capability Maturity Model

Policy & Strategy Delphi for Asset Management Policy Delphi method seeks to generate widest divergence of views in asset management and then come to consensus Speedy method when time is short or reliable fast response is required.

AM NetworX: Network Analysis The processes of the ISAM framework are presented here as a network map Each node represents a coordinator for each of the functions of asset management The ties between the nodes are the relationships that must exist for efficient service delivery The network map provides a blueprint for an ‘ideal’ model for organisations to use in strategic asset management The aim is to structure organisational charts and processes in the most efficient manner possible for service delivery

AM BenchmarX: Asset Management Cultures It is important to understand Asset Management cultures to improve performance The output is a diagram of the competing demands within asset management organisations

Integrated Strategic Asset Management ON LINE MODULE Prof. Kerry Brown Prof Robyn Keast

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