Effective Asset Management Sue Philpott Effective asset management

Effective Asset Management Sue Philpott

Effective asset management • What is it? • Why is it important? • What is an Asset Management Strategy (AMS) • What it is not • An effective AMS should…. • Key considerations • So what does this all mean?

What is it? • Taking a comprehensive approach to managing the physical assets in order to achieve – best use of these and – value for money. • Understanding and managing the condition, performance (heat efficiency etc. ) of, and risks presented by your homes and other buildings. • It covers the construction, operation, maintenance, modification, replacement and disposal of homes and other buildings. • It includes ensuring that your co-op embraces energy efficiency and promotes environmental sustainability.

Why is it important? • It is a key Management Committee responsibility • Part of a planned, rather then reactive approach to managing an organisation • Directly links to financial plans and rent setting strategies, approaches to contract procurement and aids and adaptations • Maintenance priorities can be set on a fair and transparent basis • Should lead to improved value for money • Clear priorities for annual budget setting

What is an asset management strategy? • It actively manages the assets of the co-op • It sets out your understanding of and approach to long term ‘financial value management’ and the overall performance of your homes and other property. • It helps you to make strategic decisions on stock investment, retention or disposal, and rent levels - and perhaps your involvement in neighbourhood wide activity. • It provides a framework by which you have: – Effective and transparent stock investment – Active asset management – Support for wider objectives

What it is not…… • It is not just about delivering works programmes • It does not mean that all your properties should remain in your co-op • It does not mean that your co-op is always the best landlord to manage all your assets

An effective asset management strategy should…. • Define your values and strategies • - and how these relate to the service and standards of repairs and maintenance and tenancy management you and your members have set • Understand take account of the policy environment in which we live and work • Understand assess the performance of your homes and other property, your residents needs and expectations, and the potential risks involved • Embrace social and environmental sustainability • Be based on option appraisal and financial modelling • Provide an affordable strategy that links to the business planning process

Key considerations • Are the properties fit for purpose e. g. – are they inefficient and / or costly to maintain? – are they what the members and community want? – are they too far away to manage well? • Could the equity released be used for other, higher priorities? • Is the local neighbourhood sustainable? • The balance between investing in existing and new homes • Cushioning against risk

So what does this all mean? • Planning and delivery of a successful repairs and maintenance service – Responsive versus planned – Effective and appropriate procurement – Deciding on the service standards and priorities e. g. fixing fast to last – Monitoring and management – Having the right data e. g. SAP, costs of repairs and maintenance, expected life of key components etc. • Meeting your equality and diversity obligations – Take account of the diverse needs of existing and future members – Promote positive attitudes and approaches and encourage participation and access to homes and services

So what does this all mean? (2) • Measuring performance – Actual delivery against the AMS and plans e. g. void turnaround and costs – Appointments kept – Completion times – Resident satisfaction and feedback – Ask – what does success look like? • Managing risk – know your housing stock, what you can afford to do and your current and future members’ needs and aspirations – Understand current and projected demand for the properties, current and projected cost of maintaining your homes at current standards, current and projected income, – Consider energy ratings and efficiency measures, void standards, approaches to renewing fixtures and fittings, shared accommodation v. self contained, green v. traditional etc.

So what does this all mean? (3) • Essential that MC members: – have the knowledge to provide an effective strategic overview of the management of the co-op’s assets and the repairs service – ensure the asset management strategy, business planning process, other associated strategies e. g. your contract procurement, and your approach to risk management and decision making across the co-op are aligned – scrutinise performance in delivering contracts and services to meet the asset management strategy – consider issues such as maintaining sustainable assets, delivery of quality, timely repairs and achieving value for money.

So what does this all mean? (4) • Members value: – The MC being clear what the co-op can and will do, when it will do it and what it will not do – The MC keeps its promises and does what it says it will do when it says it will – Members are consulted on key issues and kept fully informed throughout the process, including when not much is happening.

Your Co-op’s AMS What will be your key considerations?

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