Top ten tips for developing an effective Asset Management Strategy

An effective asset management strategy is one that sets the framework for the alignment of? property assets with the strategic aims and direction of the organisation and adding both financial and non financial value through the efficient, safe and sustainable use of resources. A robust asset management strategy plays an important part in maximising efficiency by effectively allocating resources and minimising risks.?

We have worked on asset management strategies for organisations across the public sector, including local authorities, emergency services and not for profit sectors for over 15 years. Based on this experience, here are our Top Ten Tips for developing an effective asset management strategy:

1. Golden Thread?

It is essential that you understand the strategic drivers, policy framework and context for delivery within your organisation and their impact. You need to understand your assets and know how they support service delivery in order to identify those that are performing well for your staff and communities and those that are underperforming or not cost effective. This means prioritising your assets based on how critical they are to service delivery in order to understand where you need to invest, setting out a clear programme for their maintenance and future investment.??

2. Purpose?

Setting out your corporate vision and defining clear objectives will ensure assets align with your aims and needs, supporting the strategy, planning and policy that governs how you work with your staff and communities.?

Objectives need to be aligned to organisational priorities and goals and operational focus. For example, if your goal is to reduce maintenance costs and prolong the life cycle of your assets without loss of quality provision, then your strategy needs to prioritise a regular maintenance and servicing programme.?

You also need to prioritise your assets in order of importance to give you a better idea of where to focus your resources. By establishing key performance indicators (KPIs), you’ll be able to measure performance and work out which assets are operating well and which ones are underperforming.?

3. Complete asset inventory?

Your asset management strategy should be underpinned by robust property management software to provide comprehensive data and analysis, enabling you to stay in control. A single consolidated asset database provides a holistic view of assets and can form part of an Integrated Workplace Management System (IWMS). This enables an organisation to build a deep understanding of its estate and assets and will enable better management and control of costs and core business processes and activities as part of facilities and estates management.

4. Stakeholders?

It’s important to engage key stakeholders in your asset management strategy, both within your organisation and external partners, in order to fully understand service needs and opportunities for rationalisation and co-location. As asset management represents a significant financial commitment, the support of key stakeholders, including your senior management team, will be vital.?

5. Deliverables?

Having clear, well-defined, measurable project deliverables is a fundamental pillar of the success of an asset management strategy. This means setting tangible goals, deadlines and milestones that will enable you to track your progress and meet your objectives.?

6. Resources?

Be clear about how your strategy will be resourced and funded, including identification of external funding, capital programmes and staff resources. You must account for every asset’s life cycle costs in order to plan your strategy effectively - these will include maintenance, depreciation and disposal costs. While your strategy will be looking at ways to minimise lifetime costs, it also needs to optimise any expenditure needed for each asset.?

7. Governance?

Establish your decision-making process with clear roles and responsibilities among all stakeholders so everyone knows what tasks and assets they are accountable for.?

8. Tracking progress?

Constant monitoring and evaluation will ensure appropriate benchmarking and performance management, ensuring procedures are correctly followed and maintenance schedules take place at the scheduled times.?

9. Agility?

Undertake regular reviews to ensure your strategy remains relevant and adapts to evolving requirements. There will always be unforeseen events that will affect your asset management plan, so regular reviews will help you re-evaluate your strategy and adjust your goals accordingly.?

10. Asset Management Plan?

Underpin your strategy with a SMART implementation plan. By making your goals Specific, Measurable, Achievable, Realistic and Time-bound, you will create a strategy that’s clearly defined and straightforward to implement.?

Want some help with your Asset Management Strategy??

Talk to us if you would prefer to outsource your asset management to experienced specialists. Our consultants work with local government, the education sector, the emergency services, and the not for profit sector. We will help you achieve service delivery excellence by making the best use of your assets and always delivering value for money.