Implementing Asset Management

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Implementing Asset Management

• a practical approach to reducing property costs
  and improving efficiency
• Asset Management Conference
• 20 November 2007

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Implementing Asset Management

• Seminar speakers/leaders
• Craig Lester, DVS
• Andrew Jones, BPS
• Peter Snow, DVS

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Asset Management Route Map

• A successful and compliant approach to Strategic
  Asset Management

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Key Challenges

• Corporate culture/asset ownership
• Lack of management buy-in / understanding
• Lack of believable information
• Generating clear picture of
• Current wastage
• Available savings
• Investment needs backlog
• Service improvements available

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Steps

• Gather good data
• Report wastage / inefficiency
• Generate options for change
• Build credible business case for prioritisation
• Action plan an Asset Management Plan
• Repeat periodically

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Changing Culture

• Data highlights current failures
• Data informs and challenges spending
• Strengthen linkages with support services
• AMP must align with corporate objectives
• There must be clear corporate standards

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Make Time

• Ensure AMP is a core priority
• Bring in relevant skills
• Integrate asset users
• Maintain commitment
• Work to a clear and supported plan suited to your
  resource

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Reporting

• Effective Reporting
• Report conclusions not data
• Use reports to identify options
• Use champions
• Reports should initiate not follow

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What is an AMP?

• The organisations strategy for changing its
  asset base to better meet the objectives of
• Efficiency
• Delivering value for money/savings
• Ensuring assets fit for purpose
• Delivering corporate objectives

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Workshop 1

• Use Scenario 1

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Workshop 1

• Feedback

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Asset Management Back to Basics

• A successful and compliant approach to Strategic
  Asset Management

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Future proofing

• Dont just follow the rule books
• The audit rules keep changing
• Too many sources of best practice
• A lot of theory but little practice
• Rules may cut across good work
• Desired outcomes clear - the route map isnt

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Outcomes

• Obvious outcomes
• Fit for purpose estate
• Efficiently used
• Provides value for money

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Outcomes

• Necessary Precursors to Success
• A decent budget
• Corporate support and understanding
• Good data or means of getting good data
• Some clear objectives
• End user participation

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Why start with data?

• Without good data nothing will change
• Facts are essential to
• Informed decision making
• Measuring performance
• Proving to the outside world there is logic to
  your actions (audit)
• Proving the AMP business case (bidding)
• Working out what needs to be changed
  (prioritisation)

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Base data set

• Address UPRN
• Floor Area GIA and NIA
• Floor Plans
• Building Usage Utilisation
• Planned Maintenance Programme
• Maintenance/Investment Backlog
• Compliance with HS legal and regs

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Base data set

• Asset Valuation - Current Use
• Alternative Use/Opp Cost
• Organisation asset standards
• Record of specific occupier needs
• Assessment of asset compliance with the above
• Base for assessing running costs e.g. energy costs

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Why just this?

• Proves asset safe to use
• Base for assessing efficiency and VFM
• Consistent base for assessing fitness for
  purposes
• Financial benchmark for evaluating options for
  change
• ENOUGH AND NO MORE

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Workshop 2

• Use Scenario 2

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Workshop 2

• Feedback

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Asset Management

• What next for central government?

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What next for central government

• e-PIMS
• OGC
• Treasury
• Europe

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What next for central government

• Review
• July 2005 e-PIMS mandatory for all Central
  Civil Departments
• OGC High Performing Property Timetable
• Named property champion
• Business plans to include property requirement
• All office / non-office holdings entered on e-PIMS

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What next for central government

• April 2008
• Mandatory benchmarking of building performance
  across Central Government Estate
• Delivered through e-PIMS

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What next for central government

• By March 2009 all Government organisations must
• Use Maturity Matrix for setting capability and
  skills standards
• Use benchmarks to continuously improve management
  and use of property
• Adopt and use performance targets to drive
  improvement
• Use property benchmarking service

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What next for central government

• By March 2011
• Wider public sector data held on e-PIMS
• To include NHS and Police Authorities?

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What next for central government

• Treasury
• Guidance on the application of VIP 10 (DRC)
• International Financial Reporting Standards to
  apply from 2008/09
• Awaiting FReM on interpretation
• Re-state 2007/08 figures under UK GAAP
• Effect on some Operating Leases

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What next for central government

• Europe (European Directive 2002/91/EC)
• From April 2008, Energy Performance Certification
• For buildings other than dwellings with a floor
  area over 10,000 sq.m.
• From October 2008, EPC Display Certification
• For all public buildings with a floor area over
  1,000 sq.m.
• Energy Performance of Buildings Regulations 2007

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Asset Management

• What next for local government?

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What next for local government

• DCLG Asset Management Programme
• Referred to in Pre-Budget Report
• To include revised guidance and a strategy
  document, published before Christmas
• Working with the Audit Commission to place
  greater weight on asset management in the Local
  Government performance framework

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What next for local government

• Audit Commission Assessment
• Fundamental Review of the Use of Resources
  assessment in preparation for CAA
• Consultation November, implementation 2009.
• For AMP external focus - outcomes, partnership
  working, community benefits and sustainability.
• Internal focus - Evidence of Challenge and
  Rationalisation.

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What next for local government

• Audit Commission Review
• Assessment of Local Authority Performance in AMP
  delivery against the objectives set out in 2000
  Audit Commission report Hot Property.

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What next for local government

• European Performance of Buildings Certification
• European Performance of Buildings Directive -
  From April 2008
• Energy Performance Certification for all
  Commercial Property over 2,500M2 on Construction,
  Lease or Sale (July 2008)
• Display Certificates for all Public Buildings
  over1,000M2 (October 2008)

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What next for local government

• Conclusions
• Harder tests and greater scrutiny
• Raised expectations for performance
• More public accountability

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Implementing Asset Management

• Questions and Discussion