2016 National Local Government Infrastructure and Asset Management

2016 National Local Government Infrastructure and Asset Management Conference 08 -09 JUN 16 Melbourne

Challenging the Norms in Asset Management Ashley Bishop

Asset Management Heresy

• Through a couple of Hobby Horses • Challenge the current technology • Challenge who is driving AM • Challenge you

The Asset Management Plan in it’s current form Is not a plan! It’s a reference document

• How long should a policy be? • If no one will read a policy that is more than two pages, who is going to read an AMP that is 80 pages long?

A simple AMP • Background • Council has numerous assets acquired at public expense and these need to be managed. Service planning will determine levels of service and quantities required. • Mission • Manage assets by renewing them when they are at intervention level condition, in order to • 1. Maintain financial sustainability for entity • 2. Maintain the assets in a safe to use condition • 3. Maximise the life span of an asset • Limited by • 1. Budget allocation in the SRP/LTFP • 2. Conditions laid out in the service plan

• Service Managers: • Conduct a business case review of assets to determine what is required, levels of service and levels of provision. • Asset Management • To collect, record and maintain data on assets by using an AMDB including quantity and condition linked to GIS • Report on assets for renewal by producing an annual state of the assets report • Forecast annually the renewal gap information for finance so that they can generate an updated LTFP/SRP • Provide data for developing the Capital Works Program. • AM will report to the AMWG four times per year

• What’s in the current AMP we don’t need: 1. 2. 3. 4. Tables and charts – They become redundant very quickly List of works – These changes just as quickly List of Assets – Shouldn’t this be in your AMDB, so why not refer to it Duplication of information – Description of council/LTFP/SMP

• So what should it contain: • Definitions and interpretations, what is an asset, how is ownership defined, CTAC, how they are grouped, what is measured and how • Responsibilities, who does what or reports on what, decides what can happen • Attributes; what and how data is collected and how it is published • References to other documents

SOAR • An annual summary produced after modelling and in time for budget planning

• What about the financial summary? • You can supply the data, if you have it but this information should be in a finance report. • What about future demand works programs? • That comes from the service managers plan and feeds into the CAPEX • What about the list of assets? • That’s in your database • What about the maintenance program? • That’s in the manual specific to the asset (RMP etc) • What about the service levels? • That’s in the service plan along with levels of provision • IFF’s • If the hierarchy is determined in the (R)MP then refer to it • If the inspection regime is in the (R)MP then refer to it

So why do we do what we do? • • No one is challenging the technology Just give me a template or checklist It’s what we’ve always done Consultants and authors make money out of it • It keeps the auditor happy • Everything is an Assets problem!

• Is this why AM is so difficult • • • The duplication of information Taking responsibility for what others should be doing Having the responsibility but not the authority Trying to do others peoples jobs so we can do our own Poorly defining what Asset Management is about

• The Threat • Are we being pushed down a line of thinking developed by organisations that want to make a quid out of it? • LGAM – Better Practice Guide 2015 How many times is NAMSPlus mentioned? -At least 11, with two text boxes • How many consultants will help you write a plan – to a formula

Next Hobby Horse • CAPEX evaluation • How many of you have simple/complex rating systems to prioritise CAPEX submissions? • And then to find out that a political decision will override the whole rating process! • So why bother, when the reality is regardless of the science most often personalities/politics will decide what goes on the list.

A new method • • 1. 2. 3. 4. Desktop Business case Approval to develop Community Consultation Detailed business case – Fully scoped with plans and Wo. LC, • 5. Submitted to council • If it misses out it waits on the shelf

• What can you do • To manage this there has to be an understanding that no project can be considered for the CAPEX unless it has had a business case developed • These are then submitted to the decision makers who will select those they want for the next CAPEX • The leftovers go on the shelf for next year or for when money becomes available

• • Enough Throw the bum out Heretic Misguided individual Amateur Trouble maker Doesn’t know what he is talking about

• What’s the message • You need service plans first, • The AMP (Document) should be focused on the procedures, processes and standards • Don’t duplicate information • Don’t develop complex systems when in the end they don’t get used or get overridden • Be careful of carpetbaggers • Service planning is the most important function

• Conclusion: • The Current AMP is not a plan it is a reference document, it contains too much information that should be stored elsewhere, carefully look at the information, if you don’t completely control it then it belongs to someone else, once you write it down it’s yours • What next • Write your Asset Management Reference Document, and then write your plan • A paper document is redundant • Go with a business plan rather than a rating system

• Am I right? • That’s for you to decide

• Questions

• A last thought: • Stop looking for checklists and templates, they limit your thinking and this profession will be dumbed down so that the work experience student can do this job over summer • Wake up – challenge what's happening and contribute to the science otherwise it will become just a process