PAMCAM Property Asset Management Capability Assessment Model

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PAMCAM Property Asset Management Capability
Assessment Model

• Knowledge Bite 28 January 2009
• Bridget Hardy Government Estates Transformation
  Division

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Not so much scale as complexity

• Civil Estate total size 12.3 million m2
• Cost estimated 6bn pa to run
• Civil Estate Asset Value approx 30million
• Fragmentation
• .at least 150 property owning organisations
• .at least 300 property holdings
• .over 7,200 buildings
• .43 freehold or long lease
• .29 leasehold
• .27 PFI
• .1 serviced offices
• Variety wide variety of property types
• but 62 is offices
• .UK wide distribution
• Speed of change machinery of Government

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The Government estate transformation context

• Lyons Well placed to deliver? March 2004
• Lyons Towards better management of public sector
  assets December 2004
• Leeds University Improving Property Asset
  Management in the Government estate April 2006
• Government sustainable development targets June
  2006
• High Performing Property November 2006 and
  March 2007
• Service transformation (Varney review) December
  2006
• STRATEGIC APPROACH TO MANAGING AND
• EXPLOITING PROPERTY ASSETS, INTEGRATED WITH
  BUSINESS DELIVERY AND RESOURCE MANAGEMENT

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Asset Management
Current and Emerging Practice in the Management
of Property Assets
Source A UK Industry Standard for Property Asset
Management Consilian 2005
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High Performing Property
Component 3 Skills and Capability Ensure that
all senior managers in government have an
understanding of asset management among their
core skills Ensure that there are sufficient
skilled property professionals to implement
best practice across government organisations
Component 1 Leadership and Integration Offset
the effects of fragmentation of the estate by
strong leadership from the centre and an
integrated property strategy Integrate asset
management into strategic business planning and
policy delivery across government departments and
their arms length bodies
Component 4 Review and Challenge Create a
culture of evidence based review, challenge and
continuous improvement Improve accountability and
transparency in property asset decision making
Component 2 Benchmarks and Standards Provide a
framework of standards and benchmarks that set
out best practice, performance objectives and
aspirations Provide tools, guidance and support
to help government organisations implement best
practice and meet objectives
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HPP Routemap milestones

• By March 2009 some departments will have achieved
  level 5 Excellence in PAM capability
• By March 2011 all organisations with significant
  usage of property will have reached level 5
  Excellence

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The High Performing Property ProgrammeCapability
and Skills
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The background to the PAM Capability Model
two different frameworks with similar purpose
OGC maturity matrix
NAO asset management toolkit

• To assess PAM capability
• Full asset lifecycle
• All building types (exc. specialist)

• To produce audit opinion
• Office asset strategy, planning and management
• Detailed toolkit successfully applied in NAO
  2007 study

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The design principles emphasise objectivity,
simplicity and continuity
Objective
Evidence-based assessment
Respects size and complexity
Self-Assessmentand Audit Tool
Covers the maturity matrix areas
Granularity of reporting
Output expressed as maturity levels
Simple and usable
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The assessment framework is built on the asset
management cycle

• Business strategy
• Cross government strategy
• Cross organisation strategy
• Asset / Workspace strategy

• Performance management
• Stakeholder relationship mnt.
• Service delivery mnt.
• Contract mnt.

• Design projects programmes
• Pre procurement planning
• Procurement plans
• Asset plans

• Procurement
• Programme / project delivery

• Organisation Management Arrangements
• Governance
• Capacity Capability
• Policies Standards
• Data MIS
• Performance management, audit review

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Reporting breaks-down maturity scores
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Three simple steps to generating a maturity
profile in the PAM Capability Assessment Model
Maturity statement
Evidence
ePIMs data
Reports Maturity Profile
Select organisation profile
Score response to question
Generate score
Excellence
Competence
Organisation/ user
Knowledge
Awareness
Unawareness
Questions and scores adjusted by profile
Guidance
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Scored response to questions based on evidence
levels
PARTIAL e.g. Parent department reviews asset
plans and intentions of some of the departmental
family
Leading Practice

• Q1. Has the Parent Department challenged or
  reviewed accommodation and property/FM service
  plans across its organisation family?

YES e.g. Parent engages all sponsored bodies in
sharing information, delivers feedback on asset
plans and identifies collaborative actions
Response Yes, Partial or No
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Organisation profiling takes into account size
and complexity
Organisation Family Size number of agencies and
bodies
Low
High
High
A
B
X

• Business / Estate Complexity
• No. of employees
• No. of assets size portfolio
• Degree of organisational change currently
  experiencing and/or expecting

X
X
C
D
X
Low
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The Roles of Champion and PAM Board

• The Role of the Champion in a Department
• Asset management is sponsored and owned by a
  property champion who
• Is an executive board member
• Is accountable for property asset management
• Chairs the cross departmental family asset
  management board (where Parent Department)
• Champions a corporate view of capital
  expenditure
• Champions the use of property assets throughout
  the departmental family (where Parent
  Department)
• Encourages the departmental family to take a
  strategic view of estate management and property
  implementation programmes (where Parent
  Department)
• Oversees the implementation of property asset
  management plans and implementation programmes
  within the parent department and the family of
  sponsored bodies
• Sets property asset management standards
• Monitors key performance indicators in relation
  to strategic objectives
• Grants approvals within delegated authority.

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The Roles of Champion and PAM Board

• The Role of the PAM Board in a Department
• There should be a high degree of coordination
  between property and business planning, including
  financial, workforce and IT planning. The
  corporate board responsible for business strategy
  should have appropriate property representation
  and mechanisms for joined-up decision making
  across ICT, HR and property.
• There should be a property asset management board
  with clear executive and advisory
  responsibilities. The board's membership should
  be drawn from across the departmental family and
  their responsibilities are reflected in personal
  objectives. The board's focus should be on
  setting strategic direction, resolving strategic
  choices, challenging the status quo or the plans
  of the departmental family. It should not be
  distracted by operational management matters
  which are the responsibility of operational
  forums
• A forum with advisory responsibility should exist
  for senior responsible property officers from
  across the departmental family and meet at least
  6 monthly.
• Through the above governance arrangements,
  departments and sponsored bodies seek to
• identify and take advantage of opportunities to
  share space or coordinate activities with other
  departments
• influence practice and
• set standards.

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The benefits to users will vary according to
maturity and culture of organisation

• Self-assessment gives users control over the
  assessment timing / level of detail
• Visibility of the broad audit and review
  framework
• Increased visibility of continuous improvement
• Help highlight to senior managers structural
  constraints to improvement e.g. governance,
  resources
• Highlights improvement opportunities through
  identifying gap between leading practice and
  baseline
• Helps users build a business case for
  strengthening capabilities
• Link to PCR reviews and better performance

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How will the PAM Capability Model be applied?

• How will the tool be accessed?
• How often should departments undertake a
  self-assessment?
• Who should undertake the self-assessment?
• How long will it take to complete an assessment?
• Should arms-length bodies use the tool?
• What is the role of parent departments in
  encouraging family members to undertake an
  assessment?

• How will the OGC use the information?
• How does the data link to other data capture
  initiatives?
• What support from OGC will users get?
• What feedback should users expect to receive from
  the OGC?
• How will the tool be evolved?

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Live walk-through of PAM Capability Model