ASSET MANAGEMENT IS ALL ABOUT SUSTAINABILITY

Presenter: Graeme Dunnet, Sector Leader Infrastructure Asset Management - Australia Opus International Consultants

OVERVIEW

• What is sustainability?

• The Challenge

• Where does Asset Management Fit?

• Is it just about “re-branding"?, or

• A shift in how Asset Management is Delivered?

• Changing Focus requires Different Skills and Inputs

• Conclusions

What is Sustainability?

• Well used term relating to wise use of: • Environmental

• Economic and

• Social resources

• Emphasis varies across States of Australia and the world

• Other barriers apparent lack of practical tools / practices / approaches

What is Sustainability?

“development that meets the needs of the present world without compromising the ability of future generations to meet their

needs”. 2

Or “providing more, for less cost and impact, for longer, for more

generations”

Or, perhaps something more practical we can measure? “the adoption of a triple bottom line approach to whole of life management of resources; balancing the environmental, social and economic aspects of providing a service through managing

resources to get the best long term outcome.” 2 UN World Commission on Environment and Development

The Challenge

“Achieving sustainability is a challenge we avoid at our individual and collective peril. The need for immediate

action to improve the efficiency of our economy, mitigate climate change and adapt to demographic and

environmental change is clear. What remains uncertain are the best mechanisms to use to achieve these goals”.1

• LG have significant power to influence

• An opportunity to be the “mediators of change”?

Asset Management = Sustainable Management

1 Seizing the Sustainability Advantage: Consult Australia Feb 2011

The Challenge

Feel like an Insurmountable Challenge?

• Too much..

• Costly…

• Complexity…

• Support…

• People…

• Silos…

• Changes…

The Challenge

A Good Game Plan

• Vision

• Pragmatic

• Achievable

• Early wins

• Long term goals

Continuous Improvement

WHERE DOES ASSET MANAGEMENT FIT?

Where Does Asset Management Fit?

AM by it’s nature is sustainable practice

Where Does Asset Management Fit? – Provides a Foundation

Founded on Thorough Understanding of Assets

v r r ro o o m

v r r ro o o m

Where Does Asset Management Fit? – Provides a Framework

• What do we have?

• What condition is it in?

• What is it worth?

• What do we want it to do?

• What do we need to do to it?

• When do we need to do it?

• How much will it cost?

Governance

Goals & Objectives Policies & Legislation

Asset Description

Asset Inventory Measure Condition

Levels of Service

Performance Criteria Future Demands

1

2

3

Option Identification

Performance

Assessment

Lifecycle

Management

4

Decision Making

Optimization & Budget

ConsiderationsRisk Management

5

Program Development

Forward Works

ProgramFinancial Summary

6

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Governance

Goals & Objectives Policies & Legislation

Asset Description

Asset Inventory Measure Condition

Levels of Service

Performance Criteria Future Demands

1

2

3

Option Identification

Performance

Assessment

Lifecycle

Management

4

Decision Making

Optimization & Budget

ConsiderationsRisk Management

5

Program Development

Forward Works

ProgramFinancial Summary

6

Qu

ali

ty M

an

ag

em

en

t

Co

nti

nu

ou

s Im

pro

vem

ent

Per

form

ance

Rep

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Framework Key Questions

Where Does Asset Management Fit? – Provides a Process

• Supported by Well Structured Decision Making Processes

Asset

Management

Plan

Practices

Processes

Systems

Asset

Management

Plan

Practices

Processes

Systems

Where Does Asset Management Fit? – Some Examples

Social Increase Community

Cohesion

Environmental Reduction of Emissions

Economic Reduction in

Congestion / Road User Costs

IS IT JUST ABOUT “RE-BRANDING”

Is It Just About “Re-Branding”

• Need to take the decisions makers, politicians, broader public along but how?

• Promote existing AM standards, guidelines (IIMM)

• Enforce consideration of triple bottom line

• Reinforce and communicate long-term timeframes

• Reinforce and communicate the tools in our AM toolbox

• Communicate a “balanced approach”

Is It Just About “Re-Branding”

Where are we now!

• Document where you are

• Current practices and polices

• Looking at changes to move forward

• Understanding the gaps

• Plan for the future

Do we have everything we need?

A SHIFT IN HOW ASSET MANAGEMENT IS DELIVERED?

A Shift in How Asset Management is Delivered?

• More explicit about the social, environmental and economic inputs, issues and impacts our AM decisions

• Communicate costs and benefits against higher level sustainability objectives • Policies and programs

• “Tell our stories” to help educate and seek feedback e.g. NZ network example

• Matching carbon footprint to maintenance options

• Tax breaks for green buildings – an AM story

• Working collaboratively rather than in silos • Internally within our organisations

• Broader community perspective

A Shift in How Asset Management is Delivered?

Requires Leadership

• Visionary

• Set Direction

• Empower

• Energize

• Reward

A Shift in How Asset Management is Delivered?

Active Participation by LG

• Just hiring a consultant to do it all is not advised

• Creates sense of ownership

•Generates buy in

• Engages people

• Encourages looking at better ways of doing things

A Shift in How Asset Management is Delivered?

Varying needs requires varying approaches

• One Size Does Not Fit All

• Implementing will require ability to understand LG’s existing business environment and incorporating solutions that will work

A Shift in How Asset Management is Delivered?

Could be a Bumpy Ride

• Leadership

•Organizational

• Complacency

• Loss of Focus

• People skills / changes

DIFFERENT SKILLS AND INPUTS

Different Skills and Inputs

• Rebranding and change in focus will require diverse teams

• Working alongside asset managers not “for them”

• Listening and understanding community needs

• Developing long term relationships

To be the best at helping our communities to visualise and achieve their dreams and aspirations, through trusted relationships.

Different Skills and Inputs

It will require making changes

• Past vs. Future

•What is done?

•How it is done?

•Who does it?

•Where?

•Why?

Change Management Planning is Critical

Different Skills and Inputs

The positives:

• Different perspectives, team dynamics and relationships we get from personnel coming from different backgrounds

• “Directors of first impressions” – direct interface with communities they serve

• Integrated approach

• Consult and engage

• “Do it right for life”

CONCLUSIONS

Conclusions

• Move away from the emotion of sustainability to the practical – triple bottom line creates value

• Current AM practices “tick” a lot of the boxes

• Need to be vigilant in getting new message (rebranding) across

• Communities will become aware AM – mechanisms to help build sustainable futures

• More holistic approach will require a more diverse skill set within our AM teams

Conclusions

Like good wine, will take time to mature

•Need to lay vintage before any improvement can start

• Start now!

•Write down your assumptions and communicate widely

•May need some “tweaks”

•Next year’s plans / outcomes will definitely be better

Thank You