Management

Recent events have once again reminded us of the challenges faced by municipal practitioners as they juggle their numerous responsibilities. The introduction of asset management is intended to create efficiencies, yet it initially requires a lot of time and organization to develop a comprehensive asset management program. Far too often, one or two staff members from a single department are tasked with the development of an asset management program when it should be a corporate-wide effort.

An asset management program can involve several different components – staff and resources, data collection and centralization, business processes and policies, to name just a few. However, a key document that is often neglected may be the solution to building a holistic asset management program with cross-department initiatives: The Asset Management Strategy.

The Asset Management Strategy develops a clear direction for the corporation with coordination across the entire organization. It helps advance maturity through an analysis of the seven core asset management elements as seen in the figure below.

With these core elements in mind, an organization can take three key steps to develop an Asset Management Strategy. The first step

Practical & Tactical Asset Management: The Benefits of an Asset Management Strategy

Financial Strategies Strategy & Planning

Organiza0on & People

Levels of Service Asset Data & Informa0on

Risk Management AM Decision Making

is to assess the current state of asset management within the organization. With all the key players from each department identified and brought together – perhaps in the form of an asset management committee – you can begin to identify the gaps within your asset management program. Reflecting on the seven core elements, gaps can be identified in missing strategic or planning documents, processes, protocols, policies, etc.

The second step is to define a practical and achievable future state of maturity. Based on a review of best practices from other similar organizations, the team should be able to identify meaningful changes that can be made to achieve feasible goals. The participation of members from across the organization will help create a consensus about what goals are realistic.

The third and final step is to develop a strategy with specified initiatives, tasks, timelines, and ownership. Once the team has identified the feasible goals, they can begin to define the initiatives with specific tasks assigned to staff members with reasonable timelines. A comprehensive strategy can be developed with a thorough and continuous analysis of corporate maturity within each core asset management element.

Several critical initiatives, under each core element, can emerge from an Asset Management Strategy that can be aligned through a coordinated project timeframe to ultimately provide a roadmap that will develop, establish, and maintain an effective asset management program.

As an example, the City of Port Coquitlam took a structured, and sequential approach to developing its asset management program, beginning with an asset management strategy. A key initiative that came forward under the “Asset Data and Information” core element was a thorough improvement of centralization of asset data through standardized field data collection techniques. To move this forward, PSD developed customized data collection templates along with technical and qualitative condition assessment guidelines for each of Port Coquitlam’s asset groups. The templates and guidelines allowed the City’s own staff to collect pertinent asset information and close identified data gaps. This has led to a more complete, streamlined asset register, with essential asset data that includes valuation, attributes, and field condition.

With this data, the City’s projected asset investment needs have also become more accurate and credible. Staff continue to use the templates and guidelines to collect asset data. Following the completion of the data collection and refinement exercise, the City will continue to work with PSD to develop comprehensive asset management plans for each of its service areas.

The development of an Asset Management Strategy for any municipality will require good communication and participation from key players across every department, honest and comprehensive identification of gaps, and realistic and achievable goals. The three steps outlined above, define how an entire organization can create a suite of tactical and practical initiatives as part of a holistic strategy to bring a higher level of maturity to their asset management program. Such efforts ensure that assets continue to provide value to a community today and for future residents. •

ERIN ORR, MA, is a Research Analyst at the Public Sector Digest. She completed her master’s degree with Western University in Political Science, specializing in Canadian Policy and she is completing a certificate in Climate Change Policy and Practice from University of Toronto’s School of Continuing Studies. In her role at PSD, Erin’s research focuses on municipal sustainability as it relates to climate change adaptation and asset management. Recently, Erin led the research for a case study series on the integration of climate change and asset management in Canadian local governments in collaboration with CWN, CWWA, and FCM.

JOHN MURRAY oversees the development and implementation of asset management programs and plans for local governments and other public sector organizations across the country. As a leader in asset management, he facilitates knowledge exchange and collaboration with municipal experts and industry leaders, both nationally and internationally. Previously, John was with the City of Hamilton’s Public Works department for 20 years and has extensive experience in infrastructure management practices and computer information systems. John represented the GTA and Hamilton on sustainable infrastructure issues as part of an expert panel for discussions with the Organization for Economic Co-operation and Development (OECD). He is the Past President of the Canadian Network of Asset Managers (CNAM) and is currently a member of FCM’s Municipal Asset Management Program (MAMP) Technical Working Group. John has completed his certification in Asset Management from the Institute of Asset Management (IAM).