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)
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);
- Asset Management Policy
- Asset Management Plan
- Asset Management Improvement Plan
- Long Term Financial Plan
- Risk Management Plan
- Social Plan
- Environmental Management Plan
- Community Plan
- 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."
External Links & References
- Google Search
- Greater Shepparton City Council Asset Management Strategy
- Local Government Victoria - Guidelines for developing an Asset Management Policy, Strategy & Plan
- Asset management: whole life management of physical assets (Book, published Thomas Telford, London 2010)
- Asset Management Policies & Practices (Section 3.3)
- Asset Management Strategy for Electrical Assets (Austroads)