IMPLEMENTING THE VISION
INTRODUCTION
There are a number of alternative solutions or implementation opportunities available to a manager considering using public assets as a catalyst for recovery. In this paper I intend to cover
● The importance of strategy ● Possible solutions and ● Benefits
The right solution depends on individual circumstances.
The complex portfolio A feature common to most public asset managers is that you manage what could be termed “complex portfolios.” They are complex, not because of the actual properties, as these to a large degree are straightforward, for example, libraries, offices, youth centres, and items of legacy real estate in need of regeneration and refurbishment. The complexity comes from the diversity of the estate, the diversity of the drivers, the diverse demands made on managers and the constraints imposed by service delivery teams. These factors make the portfolio complicated, not necessarily the assets.
It is essential to manage both the properties and all the other factors effectively and efficiently in order to improve service delivery. The only reason local authorities exist to deliver services to the public. Property is just a medium through which almost all its services are delivered. Plus there are now increasing budgetary pressures. The Government has just published (May 2010) its Coalition Agreement and David Cameron has formally announced that there will be £6 billion of cuts this financial year and an emergency budget within the next 50 days. We all knew it was coming and now it is official.
The importance of strategy
Strategy is important. Before starting on a journey it is essential to know where you want to get to and to think through how you intend to get there. The public asset manager is subject to a wide range of demands; the delivery of services, an increasing demand to work with partners and to collaborate with other public sector bodies and, as ever, the constant search for efficiency. This means saving money and making things cost less. All this plus the policy drivers of your
18 Kevin Hines
own authority backed up by a huge amount of Government policy that is unlikely to change and cannot be ignored.
The elements of strategy can be summarised as follows.
● What is your vision for the property? You need a vision, where you want to get to. To determine your destination, and construct in detail your vision, you must understand the authority’s objectives, the various drivers that pull you in different directions and the different service providers involved. They may have differing policy drivers and budgetary drivers. You need to fix targets and standards to be achieved; how will you set these?
● Consultation. If you consult well with your partners then having an agreed, strong deliverable property strategy will enable you to lead the process and your partners.
● Resources. The strategy has to be delivered and for this you need resources. Where will the money come from? Do you have the skills and knowledge to deliver? It is all very well having a great plan but without funding, and the right people with the right skills to deliver it the strategy will stay on a shelf or in a drawer.
And to re-emphasis - property is a conduit for the delivery of services, not an end in itself.
The construction of a property strategy involves a lot of pragmatism and compromise to make it deliverable. The diagram shows the essential steps. You have to understand corporate objectives, the things your authority wants to achieve and, most importantly, their prioritisation. Assess and understand the various service drivers, and the drivers of funding cost centres. More importantly, what costs savings are you expected to deliver? That is a very keen driver. What is the attitude to risk for you, and your authority? How much risk do you want to take? How are you going to transfer some of that risk to somebody else? Last, but not least, are environmental issues; this is becoming a top issue in terms of driving strategy. The vision begins to emerge.
Phase 2 of the process starts with taking a look at the existing estate. Assess what have you got, how well it works, what is fit for purpose and what is not and has to go. Then identify the gap. Some of the estate can work for the vision, some of it cannot and the strategy is how to fill the gap. The implementation plan is how to close the gap and over what
ASSET - Liverpool-10
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