asset management roles are treated as separate activities, with little if any communication between the two.


It is important that the links between estate management and asset management are identified and embedded and that the role of the estate manager in delivering asset management is understood and appreciated. It is about helping to deliver strategic outcomes and not merely undertaking ‘contracted’ estate management functions. In some cases this will require a change of mind-set within the organisation not least for the estate managers, who in some cases may need to shake off the ‘shackles’ of the CCT legacy and take an increasingly active role in delivering the strategic plan for the estate.


Local authorities should always know and understand why they own and occupy each of their assets. In these financially challenging times this is becoming increasingly important. Asset management is about:


ll Having a strategic purpose for all property assets


ll Aligning assets to corporate priorities and service needs (including partnership arrangements)


ll Ensuring that there is good performance management in place to ensure delivery of outcomes whether these are financial or non- financial.


Figure 2


intended. The benefits for local authorities in strategically manage their assets is nothing new so there really aren’t any excuses for everyone to be engaged.


There are some key ingredients required to perform and delivery good asset management namely the right people with the right skills. To be effective, asset management requires people that:


ll Know the assets


ll Understand the concepts of strategic direction and purpose


ll Appreciate the role of performance management in delivering outcomes


ll Think innovatively and are able to find solutions


ll Know what can be done and what cannot be done


ll Can promote change and understand timescales in delivering change


ll Have relationships with counterparts in partner organisations


Have your estate managers got these skills? In many cases the answer to this question will indeed be ‘yes’ but perhaps we are not encouraging estate managers to make good use of them in their work. Perhaps some estate managers don’t appreciate how well skilled they are in contributing to strategic plans and outcomes.


management requires good estate management. Estate managers need to consider the longer term implications to the authority in their everyday activities. Likewise asset managers need to understand and appreciate estate management issues and challenges in developing their strategy. It should be a symbiotic relationship.


Where buildings are leased–in, then leases should not be renewed without considering whether there are opportunities to rationalise the estate by undertaking a cost benefit analysis of alternative premises or maybe moving out of the leased accommodation altogether. This is especially so where buildings are not being fully utilised or space is not being used in the most efficient way.


Any lease renewal should of course always be on terms that best suit the organisation’s future needs, including flexibility of decision making and estate planning. A shorter lease with a higher rent, or a lease with more breaks, may be the best option to meet the organisation’s requirements. This may go against the natural instinct of the estate manager, which might be to simply secure the lowest possible rent payable.


Where assets are leased out the management approach of the estate manager should reflect the purpose for which the asset is held.


If the leased asset is investment property then the attitude to performance management should reflect this and the principle driver will be maximising income or returns. The role of the estate manager should be to ensure that asset value is maintained and to continually seek ways of improving financial performance, including disposal and re-investment of the proceeds.


It sounds simple. However there are still many local authorities that have little understanding of why they hold some assets. There are other authorities that say they know why they hold the assets but in reality have no understanding of whether the assets are delivering what is


48


Is now the time for estate managers to recognise that they have a key role to play in supporting and delivering strategic asset management within the organisation?


There is no clearly defined boundary between the two roles. Good asset


Where an asset is held for reasons other than financial performance, such as job creation, or to provide community benefits, then the rental income will not be the primary purpose for holding the asset and performance management should reflect this different focus. Here the role of the estate manager should be to seek to understand the reason for holding the asset, and apply their


THE TERRIER - Summer 2012


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