Asset Management Strategy

An Asset Management Strategy is a strategy for the implementation and documentation of asset management practices, plans, processes & procedures within an organisation.

Contents

An Asset Management Strategy is a high level but very important document that guides the overall asset management activities within an organisation. Being a strategy it is meant to explore long term issues and ensure that the overall plan is linked to key "strategic" issues of the organisation. The Asset Management Strategy should look out at least 20 years. The strategy will start with the "vision, the goals and objectives" and will describe, how in practical terms, these corporate objectives can be achieved (generally in the longer term). The strategy covers macro items (and activities) and leaves the detailed (micro) environment to the more specific plans. The detailed plans will describe the outcomes (and timing) that result in meeting key objectives. The detailed plans will include operational plans with medium term timeframes (e.g. Four Year plans)

National Sustainability Framework for Financial Planning & Reporting & Asset Planning & Management

The National Sustainability Framework for Financial Planning & Reporting & Asset Planning & Management suggests that an Asset Management Strategy should:

  • show how the asset portfolio can meet the service delivery needs of the community and definee the future vision of asset management practices within Council.
  • be linked to Council's Asset Management Policy and be integrated into Council's Strategic Longer Term planning and annual budgeting
  • document the current status of asset management practices (processes, asset data and information systems) within the Council and what actions Council must take to implement the Asset Management Policy, including resource requirements, timeframes and accountabilities.

The Asset Management Strategy will typically be linked to (and depend on) several detailed plans to deliver its objectives and meet expected outcomes (in the shorter term);

  1. Asset Management Policy
  2. Asset Management Plan
  3. Asset Management Improvement Plan
  4. Long Term Financial Plan
  5. Risk Management Plan
  6. Social Plan
  7. Environmental Management Plan
  8. Community Plan
  9. Community Engagement Plan

Austroads Glossary of Terms

The Austroads Glossary of Terms defines an asset management strategy as "a corporate statement of a medium to long term goal for the comprehensive maintenance of a group of assets (e.g. road network), supported by processes for the development and implementation of plans and programs for asset creation, operation, maintenance, rehabilitation/replacement, disposal and performance monitoring to ensure that the desired levels of service and other operational objectives are achieved at a minimum cost."

International Infrastructure Management Manual

The International Infrastructure Management Manual defines an asset management strategy as "a strategy for asset management covering the development and implementation of plans and programmes for asset creation, operation, maintenance, rehabilitation/replacement, disposal and performance monitoring to ensure that the desired levels of service and other operational objectives are achieved at optimum cost."

ISO 55000

ISO 55000 considers an "Asset Management Strategy" to be an alternate name for a strategic asset management plan.

Local Government Asset Management Better Practice Guide

The Local Government Asset Management Better Practice Guide suggests that an Asset Management Strategy should:

  • Link and integrate council’s plans and resources, indicating which services are to be delivered through which assets.
  • Forecast future service delivery needs and the capacity of assets to meet those, on a short, medium and long-term basis.
  • Include one scenario that balances the available funds from the Long Term Financial Plan with affordable service level targets and sets out a strategy to communicate the corresponding service levels and risks and how these will be managed to Council and the community.
  • Identify assets that are critical to the council’s operations and outline risk management strategies for these assets.
  • Include specific actions required to improve the council’s asset management capability and projected resource requirements and timeframes.
  • Establishes system for asset performance measurement.

Related Pages

External Links & References

  1. Google Search
  2. Greater Shepparton City Council Asset Management Strategy
  3. Local Government Victoria - Guidelines for developing an Asset Management Policy, Strategy & Plan
  4. Asset management: whole life management of physical assets (Book, published Thomas Telford, London 2010)
  5. Asset Management Policies & Practices (Section 3.3)
  6. Asset Management Strategy for Electrical Assets (Austroads)
  7. City of Melbourne Asset Management Strategy
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