CREATIVIDAD COMO AMBIENTE CREATIVO

In this chapter the extent to which local authorities had developed, adopted and implemented asset management practice was examined. The examination was intended to establish the current status of asset management practice in English and Scottish local authorities.

The trend in the development of asset management in local authorities is characterised by different messages at different stages designed to embed asset management development. The initial message was one where there was a concerted effort to raise awareness about asset management and its perceived benefits. The focus then shifted on to the importance of effectively carrying out asset management practices especially performance management and monitoring. This initial message was followed by the emphasis on local authorities to focus on the quantifiable gains that can be realised from effective asset management prcatices especially if asset review is undertaken to rationalise the property portfolio. Finally, the focus then shifted to the designing of appropriate asset management guidelines all aimed at supporting asset management implementation.

The evidence suggests that despite increased adoption of asset management by local authorities, there are still some issues which literature review has identified that are limiting effective asset management implementation and practice. A review of asset management implementation and practice has revealed that local authorities have had limited success. Table 3.3 summarises the areas of success and the kind of problems that still hinder successful asset management implementation.

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Table 3.3: Limitations of Asset Management Implementation

(a) Limited awareness about the role of property as a strategic asset (b) Ineffective Performance Management framework:

• Inconsistent methodology to data collection • Ineffective benchmarking arrangements

• Ineffective or undeveloped property management information systems • Operational data not always used to support decision-making

• Out of date or inappropriately held property data • Inappropriate / insufficient indicators

(c) Lack of corporate culture to asset management

(d) Inadequate corporate property management arrangements • Lack of cross functional asset management structure

• Asset management not headed by a corporate officer with property knowledge

• Asset management function not at board level structure • Lack of corporate approach to property ownership (e) Undeveloped joint working and co-location

(f) Ineffective leadership support from elected members and senior officers (g) Ineffective asset management plans

• Lack of quantification of costs and benefits on a WLCC basis • Out of date asset management plans

• Weak linkages between corporate, service and asset management plans (h) Lack of culture of property challenge to rationalise Property portfolio

resulting in:

• Rise in vacant / surplus land

• Marginal improvements in space per capita (i) Option appraisal not robustly utilised

(j) Inadequate staff skilled in asset management practice (k) Minimal improvements in property condition (l) Minimal improvements in property suitability (m) Insufficient maintenance and repair

3.7 CHAPTER SUMMARY

This chapter examined the extent to which local authorities in England and Scotland have developed, adopted and implemented asset management practices. This was in order to establish the current status of asset management in these authorities. In order to do so literature was reviewed focused on four areas against which the current status of asset management was evaluated. The areas included levels of asset management awareness, performance outcomes of asset and asset management practices, realisation of quantifiable

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gains as well as the extent to which local authorities have introduced and implemented effective asset management frameworks. The evidence suggests that there remains limited awareness of asset management in terms of realisation of the crucial role of property as a strategic resource. In addition, where asset management practice has been adopted the performance outcomes both in terms of practice and asset performance remain weak. For instance there remains ineffective performance management frameworks, there is lack of corporate culture to asset management, inadequate corporate property management arrangements, undeveloped joint work and co-location, weak leadership support, ineffective asset management plans, poor asset review and audit to help rationalise assets, option appraisal remains weak, staff unskilled in asset management, minimal improvements in property condition and suitability as well as insufficient maintenance and repair. Finally, despite availability of a number of asset management frameworks these have a number of weaknesses. There is need therefore for the development of an appropriate asset management framework tailored to the needs of local authorities and targeted at operational property management.

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CHAPTER FOUR

IDENTIFICATION AND DEFINITION OF ASSET MANAGEMENT CONCEPTS

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4.1 INTRODUCTION

The argument advanced in this research is that the limitations associated with asset management practice in English and Scottish local authorities identified in chapters two and three can be mitigated if local authorities adopt an effective operational property asset management framework. The primary aim of this research, therefore, was to develop such a framework which could be capable of being used by all local authorities in England and Scotland. The conceptual framework for operational property asset management for this study was developed by focusing on three key areas. These areas include:

 clarification of the ‚conceptual framework‛;

 the role the developed ‚framework‛ plays in this particular research; and

 a description of the process followed in developing the operational property asset management conceptual framework for this research.