Are your Assets Lazy?
Strategic Asset Management ensures that an organisation’s whole asset base is optimally structured to enable it to meet its strategic business and financial goals
With Chinese growth stalling and our level of Government debt rising, both private and public sector organisations need to seek efficiency savings and productivity gains.
The management and performance of an organisation’s assets has a significant impact on its overall productivity. Strategic Asset Management is vital to achieving better productivity and improved efficiency as it ensures that an organisation’s whole asset base is optimally structured to enable it to meet its strategic business and financial goals.
Put simply, Strategic Asset Management is about generating efficiencies and enabling better organisational outcomes. It helps public sector organisations generate real dollar savings that can be reinvested to deliver better frontline services. It helps private sector organisations become more agile to confidently adapt and respond to changing business conditions, enabling them to plan their long-term capital requirements in a financially sustainable manner, thereby creating a sustainably strong balance sheet.
WHAT IS STRATEGIC ASSET MANAGEMENT?
Asset Management is a strategic whole-of-organisation activity, which is best defined as “a key part of business planning, which connects, at a strategic level, decisions about an organisation’s business needs, the deployment of its assets, and its future investment needs.” (Sir Michael Lyons, 2004).
In the UK and US, central and local governments have made savings and released capital running into billions of dollars, and private sector organisations around the world are gaining competitive advantage by embracing Strategic Asset Management. However, to date, very few public and private sector organisations in Australia have truly embraced asset management at a strategic level. Indeed, research has shown that asset management in Australia is often commonly misunderstood to be facilities management; property management; engineering; or maintenance. These are tactical and operational elements of Strategic Asset Management and therefore very few organisations have unlocked its full potential. This provides innovative organisations with a window of opportunity to gain competitive advantage.
THE STRATEGIC ASSET MANAGEMENT FRAMEWORK
Without a Strategic Asset Management framework, an organisation’s balance sheet and its assets often become lazy - capital is misdirected, the value and condition of the capital base erodes and the operating efficiency and effectiveness of the organisation becomes compromised. BeyondFM recommends that all organisations have a Strategic Asset Management framework, which incorporates:
An asset management policy
An asset management plan that incorporates asset strategy;
Effective, actionable asset plans, including Capital Investment Plans, and Adaptive Reuse Plans, and,
An effective and efficient asset management technology strategy .
BeyondFM works with private and public sector clients around all aspects of the Strategic Asset Management framework to ensure they are set up for success. Our Strategic Asset Management expertise are underpinned by our in-depth project and program delivery skills, which means we are uniquely placed to translate strategy into implementable programs and then move quickly into delivery and value creation. We also provide clients with the technology expertise to help them adopt, adapt and implement asset management strategies quickly and painlessly and start realising savings from day one.
To see how we can help, contact us today on +61 (0) 403 842 480 or arstack@beyond-fm.com
