By David Jenkins
Asset management must be practised from a long-term perspective, yet some critical factors that determine success have noticeably short time frames. Budgeting is an annual process; however, even multi-year budgets are not likely to fully account for the assets’ lifecycle that will last decades.
Elected members are the custodians of the assets and champions of asset management, but one of their main challenges is to look beyond their tenure of office, and the legacy they intend to leave.
A local council member is elected for a four-year term. During this time, decisions will be made on a portfolio of existing assets, many decades old, and committing significant funds to new infrastructure.
Understanding the value of maintenance and renewal is as important as voting for significant new infrastructure. All infrastructure must be maintained well into the future to ensure it continues delivering services to the community.
All this is happening in an environment of rapid change. Data analytics and digital technology are transforming service delivery as communities embrace ‘smart city’ applications, while councils are also dealing with the need for their infrastructure to be more resilient in the face of extreme weather and climate change.
The notion of the ‘customer’ has also widened, and interactions go well beyond providing roads and rubbish collection.
Citizens, passengers, tourists, and community organisations are customers of local government services. Their status as stakeholders with varying needs adds complexity to decision-making.
Societies have always faced uncertainty and change, and those which have been successful have met these challenges through being flexible and adaptive. As the bedrock of our communities, this applies equally to local government.
Consulting firm KPMG has put forward an emerging ‘local government as a platform’ model, as a method to engage with every customer and stakeholder.
Connecting to communities through diverse and increasingly digital points of interaction can potentially bring councils closer than they have ever been to the communities they serve.
KPMG says this transformation should also be reflected within the council. To be effective, councils must attract as digitally focused employees, and socially conscious young professionals.
As decision-makers, elected members must also move with the times.
To assist them in their work, elected members should enter organisations with a sound foundation in asset management governance to enable them to navigate their way, providing a framework founded upon best practice benchmarks that will allow and embrace innovation. Elected members must understand the key concepts of asset management and sustainable service delivery to successfully fulfill the responsibility bestowed on them.
Under the ‘local government as a platform’ idea, councils could be more customer-driven and increase their effectiveness.
This new platform embraces technology but is about so much more. Digitalisation can only be effective in local government if configured within a well-designed and rigorous governance framework. It is critical that all involved have a strong understanding of how sound asset management governance, is essential for the delivery of sustainable services to our communities.
Getting this right can help mitigate the risk of infrastructure decision-making, and help councils manage their assets with the long game in mind – not just for the quick wins.
Are you an elected member looking to build your capacity and understanding in the field of asset management? Our online course ‘Infrastructure Asset Management Planning for Elected Members’ can help you ensure the delivery of sustainable services to your community.
