Asset management in New South Wales
With the introduction of legislation requiring an integrated approach to planning, every council across Australia will need to prepare asset management plans that are linked to long term financial pans and strategic plans.
Morrison Low understands the importance of good asset management practices, and how difficult that is to achieve for small to medium-sized councils.
We recently undertook a joint asset management program with a number of councils. The aim was to have asset management plans completed for each council’s major asset classes, and to reach a core level of competence in asset management within a reasonable timeframe. The program was particularly tailored at smaller councils with limited resources and capacity.
The program started in February 2008, and involved a series of joint council workshops and around 14 one-on-one mentoring sessions with council staff. The program was carried out over a 12-month period.
The program included 10 joint council workshops covering the following topics:
• developing a documented asset management strategy/policy
• high level gap analysis/ improvement plan
• developing/confirming asset management plan framework
• asset data/information
• asset financial data/Information
• existing levels of service
• basic demand analysis/demand forecasting
• basic risk assessment
• lifecycle management strategy
• asset financial forecasts
• developing asset management plans
All interested council staff were encouraged to attend the workshops. A major focus of the overall program was to raise awareness about asset management within each organisation, particularly in areas not generally exposed to asset management process, such as finance, strategic planning and community services.
There were a number of benefits through the program, with each council:
• preparing asset management pans for key asset categories
• learning and sharing opportunities with similar councils at facilitated forums
• advancing or completing asset management plans for input into the next budget cycle
• having access to expert resources to help guide and mentor staff on a one-on-one basis
• receiving project management advice to drive development of key asset management documents
• sharing cost of consulting support and assistance
Participating councils were fully aware of the importance of asset management; the problem for the small councils was how to effectively undertake a significant asset management improvement program within limited resources.
For most of these councils, day-to-day activities, or more “urgent” matters, tended to take away from what were often seen as additional or one-off projects, even though those projects were strategically important.
As a result of the program, participating councils now have documented asset plans for each major asset class. These plans are based on the guidelines of the International Infrastructure Management Manual.
Further detailed risk registers – with detailed asset-based risks – have been identified and rated, and levels of service have been introduced at a high level for each asset class. Each council now has a more detailed understanding of how its community will change over the length of the plan, and what will be the impact on the changing community on each council’s assets.
Also as part of the program, each council developed an asset management improvement plan, aimed at reaching competence in asset management within a three-year period. The program was developed based on the gap analysis carried out early on in the program and the improvements and status of asset management identified throughout the program.
Finally, each council has developed a long term financial forecast of asset expenditure to help inform its future needs and long term financial plan (when developed).
As a result of undertaking the Morrison Low asset management program, the participating councils can now focus on how they manage assets and become more strategic rather than reactive. Further successful implementation of asset management will lead to savings in day-to-day operations, a better mix of spending on renewals and new works, and improved value for the community.
Asset management should not be seen as an additional activity that needs to be carried out by engineers; rather, it is a fundamental activity allowing councils to provide efficient and effective services to its community.
If you would like to discuss how Morrison Low can help you improve your asset management practices and expertise, contact our Senior Consultant Tim McCarthy on 0407-247-256.