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Ingredients of effective asset management in public bodies

David BentleyHead of Asset ManagementCIPFA Property

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With asset management moving towards the top of the public sector agenda in Northern Ireland, having a clear strategy and asset management plan is essential for public bodies to make the best use of their physical resources.

The session will analyse the key features of effective asset management in public bodies.

Ingredients of effective asset management in public bodies

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Susan RobinsonAdvisor - Property Services: 01207 529576: 07825 247600: susan.robinson@cipfa.org

Chris Brain Senior Advisor : 01275 878378: 07919 018753: chris.brain@cipfa.org

Denise EdwardsBusiness Support Manager: 01244 394600: denise.edwards@cipfa.org

Jane LowrieAdvisor - Property Services: 01508 494025: 07827 242346: jane.lowrie@cipfa.org

Kirsty SandersonSenior Business Support Officer: 01244 399699: kirsty.sanderson@cipfa.org

David Bentley Head of Asset Management : 01332 559780: 07710 368711: david.bentley@cipfa.org

Property Networks and Advisory Services

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What is a building?

cipfa.orgThe High Level

1. Understanding aims and objectives & potential overall accommodation implications

2. Identifying other issues that require a corporate response

3. Developing into a property strategy4. Engaging key members/senior officers

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Down on the ground

1. What is the current service/asset position?2. Where are services going in the next 1, 3, 5 years, including

how service provision may change?3. Develop Service property strategies based on a corporate

structure4. Engage Services and get everyone around the table

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• Comprehensive information and accurate data on the asset

base including:-

• Cost

• Condition

• Maintenance Need

• Size

• Use

• Value

• Fitness for purpose

The Knowledge

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• Management of performance

• Benchmarking

• Challenging

• Making Decisions

Walking the walk

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“Planning is an unnatural process, it is much more fun to do something else.

The nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression.

Failure to plan is planning to fail.”

Sir John Harvey Jones

‘Planning’

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Management/Executive/Member group

Corporate Property Group Corporate Property Officer

Property Champion

Strategic Property FunctionService

Department Property

Representatives

Actively involved on Corporate

Property Group

Develop Service Plans with Strategic Property Function

The Key Fundamentals?

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Focus on how property can support the delivery of efficiencies in the current financial climate.

Office strategies and rationalization of the office estate Area based asset management approaches

Making Property Work Harder?

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• Run cheaper

• Support Service Better

• Sweating your asset

• Get rid of – individual

• Rationalise

• A bit of a moan about maintenance

Delivery of efficiencies?

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Realising the potential

• The scale of the opportunity and the business case

• Some lessons learnt so far

Office strategies, and rationalization of the office estate

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• Reduction in gross floor area ≈20-39%

• Reduction in office running costs ≈ 20–30%

• Increased space utilisation

• Target gross floor area per person ≈ 8/6/4m2

• Reduced storage footprint ≈ 50%

• Reduced maintenance backlog liability

• Reduction in desktop PC’s and terminals

But – depends on organisation

Scale of the opportunity?

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• Short term efficiencies?• Invest to save payback period• Service delivery/ways of working

Business Case

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EFFICIENCY - making the most of the space

EFFECTIVENESS - making the most out of people

EXPRESSION - making the most of the branddensity of occupation

• sqm per person• % of shared

workstationscost of occupation

• £ per personcost of change

• churn rate per year

• average cost churn per

workstation

EASIEST TO MEASURE

MORE VALUABLE TO

MEASURE MOST VALUABLE TO MEASURE

attracting/ retaining staff

• user priorities• user satisfaction

supporting interaction• observations of

interaction• use of meeting

spacesaccommodating

change• range of settings

messages to staff:perceptions of who is valuedcontradictions/ confusions/

misunderstandingsmessages to customers:

accessibilityspeed of response

brand supportconsistency

messages to management/ politicians:Leanness/operational impression

Workplace Performance

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But is there another E?Environment – impact on communities and places

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Area based asset management approaches

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What is area based asset management?

- Public service providers (including Third Sector) collaborating on strategic estate management across an area

- Customer-centric and place-based approach to asset management and capital investment across an area

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- Attention grabbing

- Opportunity spotter

- Spatial relationship between assets, transport and users

- Focal point for partnership discussions

- Mix with customer insight

Data Presentation

cipfa.orgGovernance

How high can you go?

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Partnership Models? Informal arrangement - sharing ideas with minimal risk and

no transfer of money or assets. A partnership comprising a collaborative arrangement

founded upon a joint strategic asset management plan containing a common goal.

A formal Joint Board with delegated authority to make decisions on the collective property portfolio. It may also set some constraints on what the partners can do with their assets without consulting the Board.

A legally constituted joint venture company comprising public sector partners only.

An asset-backed vehicle joint venture comprising private and/or third sector and public sector partners with the private sector providing upfront funding and capacity to kick-start a programme of asset rationalisation.

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Customer insight Customer insight is fundamental to the ‘one public estate’

model of managing public assets; To align the collective supply of public buildings to:

customer demand; and

how users choose to access public services;

now and in the future.

To do the gap analysis between what is needed and what is provided.

To connect technical decisions about the physical characteristics of assets to community priorities.

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Quick wins Local Project Area based approaches Building type

Place Based Reviews – The spark?

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• Local solutions for local situations

• All different but a lot of the issues the same

• Whole organisations approach!

• Needs culture and compromise

Do the pathfinders show the way?

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Mapping Assets+

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http://www.cipfaproperty.net/oneestate/