Public Sector Property Asset Management

Acknowledgements xi

1 Asset Management Concept and Development in the Public Sector 1

1.1 Introduction 2

1.2 The concept of asset management 2

1.2.1 Definition of asset management 2

1.3 Benefits of asset management 6

1.4 Asset management development in the public sector 8

1.4.1 Origins of asset management 9

1.5 Chapter summary 11

2 Practice of Asset Management 13

2.1 Introduction 14

2.2 Drivers of asset management reforms in the public sector 14

2.2.1 Internal factors behind asset management reforms in the public sector 15

2.2.2 External forces behind asset management reforms in public sector organisations 22

2.3 Trends in the development of asset management in the UK public sector 29

2.4 Asset management development in Scotland 44

2.4.1 Prudential Code 44

2.4.2 Publication of the asset management guidance by the Scottish Government 45

2.4.3 Decision of Audit Scotland 47

2.4.4 Publication of 'Value for Money' by audit bodies 47

2.4.5 Duty by local authorities to achieve best value 47

2.5 Structure of operational property assets in the public sector 50

2.6 Role of property assets 52

2.7 Asset management development in other parts of the world 52

2.7.1 Asset management development in New Zealand and Australia 52

2.7.2 Asset management development in the USA 54

2.8 Chapter summary 55

3 Asset Management and Organisational Management Theory 57

3.1 Introduction 58

3.2 Asset management and organisational management theories 58

3.2.1 Strategic management theory 59

3.2.2 Change management theory 61

3.2.3 Management theory 62

3.2.4 Leadership theories 64

3.2.5 Organisational structure theory 66

3.3 Relationship between asset management and organisational management theory 67

3.3.1 Significance of strategic management approach in asset management 68

3.3.2 Asset management as a significant change management event 69

3.3.3 Asset management team and project management approach 70

3.3.4 Asset management and organisational structure 70

3.3.5 Asset management and leadership skills 71

3.3.6 Asset management and capacity building 72

3.3.7 Asset management and motivation 72

3.3.8 Asset management and stakeholder management 73

3.3.9 Asset management and value theory 73

3.4 Chapter summary 75

4 Strategic Asset Management 77

4.1 An overview of strategic asset management 78

4.2 Strategic planning 78

4.3 Enablers of asset management 79

4.4 Formulation of strategic plan or corporate asset strategy 79

4.4.1 Development of vision, mission goals and objectives 80

4.4.2 Review of the organisation's internal and external operating environment 80

4.4.3 Asset information, data collection and asset knowledge 83

4.4.4 Identification of size of strategic task or service level gap 85

4.5 Asset management planning 87

4.5.1 The asset management team 88

4.5.2 Strategy formulation 88

4.5.3 Strategy implementation 90

4.5.4 Asset monitoring and control 92

4.5.5 Asset management audit and review 93

4.6 Asset management outcomes 93

4.7 Chapter summary 97

5 Asset Management Planning 99

5.1 Introduction 100

5.2 Formulation of asset management policy 100

5.3 The asset management team 101

5.4 Asset management tactical planning 101

5.4.1 Asset management improvement planning 102

3.3.4 Asset management and organisational structure 70

3.3.5 Asset management and leadership skills 71

3.3.6 Asset management and capacity building 72

3.3.7 Asset management and motivation 72

3.3.8 Asset management and stakeholder management 73

3.3.9 Asset management and value theory 73

3.4 Chapter summary 75

4 Strategic Asset Management 77

4.1 An overview of strategic asset management 78

4.2 Strategic planning 78

4.3 Enablers of asset management 79

4.4 Formulation of strategic plan or corporate asset strategy 79

4.4.1 Development of vision, mission goals and objectives 80

4.4.2 Review of the organisation's internal and external operating environment 80

4.4.3 Asset information, data collection and asset knowledge 83

4.4.4 Identification of size of strategic task or service level gap 85

4.5 Asset management planning 87

4.5.1 The asset management team 88

4.5.2 Strategy formulation 88

4.5.3 Strategy implementation 90

4.5.4 Asset monitoring and control 92

4.5.5 Asset management audit and review 93

4.6 Asset management outcomes 93

4.7 Chapter summary 97

5 Asset Management Planning 99

5.1 Introduction 100

5.2 Formulation of asset management policy 100

5.3 The asset management team 101

5.4 Asset management tactical planning 101

5.4.1 Asset management improvement planning 102

5.4.2 Non-financial factors 128

5.4.3 Multi-criteria analysis - analytic hierarchy process 129

5.4.4 Minimised lifecycle management of strategies 136

5.5 Strategy implementation 142

5.5.1 Arrangements at corporate level 143

5.5.2 Arrangements at property management level 143

5.5.3 Project management arrangements 145

5.6 Asset monitoring and control 146

5.7 Asset management audit and review 149

5.8 Chapter summary 150

6 Asset Management Plan 151

6.1 Introduction 152

6.2 Definition of an asset management plan 152

6.3 Aim of an asset management plan 152

6.4 Purpose and content of an AMP 153

6.5 Content of an AMP 154

6.5.1 Strategy development 156

6.5.2 Organisational aims and objectives, property asset implications and property asset aims and objectives 158

6.5.3 Corporate vision and strategy and its property implications 160

6.6 Review of current property assets 163

6.6.1 Consideration of options 163

6.6.2 Programme development/development of plan 165

6.6.3 Implementation of programmes 166

6.6.4 Monitoring, review and evaluation 168

6.7 Chapter summary 170

References 171

Index 183