This initiative is delivered through the Municipal Asset Management

Program, which is delivered by the Federation of Canadian Municipalities

and funded by the Government of Canada.
fcm.ca/assetmanagementprogram
Welcome!
Why we’re here:
• Introduction to asset management
for municipal staff
• Tools to help you in your work
• Strategies for municipalities with
limited resources
Introductions
Using the Workbook
SCHEDULE

Module 1—Define Asset Management

Learning Goal 1—Define asset management
15-minute refreshment break
Learning Goal 2—Articulate the benefits of asset management
Learning Goal 3—Describe the tools used in asset management
Learning Goal 4—Describe the implementation of asset management
SCHEDULE

Module 2—Define the Human and Financial

Resources Required for Asset Management
Learning Goal 1—Describe the roles and responsibilities of
stakeholders in asset management
1-hour lunch break
Learning Goal 2—Describe the attributes of a successful asset
management team
Learning Goal 3—Estimate the financial resources required for asset
management
SCHEDULE

Module 3—Articulate Current State and

Conditions for Success
Learning Goal 1—Measuring and Monitoring
Learning Goal 2—Describe the competency areas of asset
management and assess current state
Learning Goal 3—Define conditions for success
Module 1

Define Asset Management

Activity

See page 3 in Workbook

 Learning Goal: Define Asset Management

What is Asset Management?

“The process of making decisions
about the use and care of infrastructure
to deliver services in a way
that considers current and future needs,
manages risks and opportunities
and makes the best use of resources”
Source: Handbook & Toolkit for Alberta Municipalities
 Learning Goal: Define Asset Management

Some Vocabulary…
Assets | Also known as a tangible
capital asset, a physical component of a
system that enables a service, or
services, to be provided.
Asset management system | A set of
processes and procedures that support
asset management. Components may
include a plan, policy, and/or strategy.
 Learning Goal: Define Asset Management

Did You Know?

• 60% of Canada’s core public infrastructure is owned
and maintained by municipal governments.
• One-third of municipal infrastructure is in fair, poor,
or very poor condition.
• Canadian Infrastructure Report Card found that “All
communities, particularly smaller municipalities,
would benefit from increased asset management
capacity.”
 Learning Goal: Define Asset Management

Asset Management Focuses On

• The purpose of your organization and how
assets support community goals
• Value, purpose, and long-term outcomes of
assets
• Managing risks and understanding the context
of risks
• Holistic approaches to budgeting
• Collaboration across municipal service areas
and with service partners
Activity

See page 5 in Workbook

 Learning Goal: Define Asset Management

Trade-Offs and Asset Management

• Council makes decisions and sets direction
• Decision-making means recognizing and
thinking about trade-offs between service,
risk, and cost
• Staff help prepare information about trade-
offs to inform council’s decisions
 Learning Goal: Define Asset Management

Asset Management Lens

Often the trade-offs in decisions won’t be explicit.
This means thinking about:
• What information is available?
• What information is needed?
• What trade-offs are being made?
• How do these trade-offs connect to the community’s
long-term goals and needs?
Source: Alberta Handbook and Toolkit
 Learning Goal: Define Asset Management

Service
Types of services
• Does our municipality need to provide this
service? Why?

Benefits
• Who benefits from these services?
• Who may not benefit?
Service
Level of service
• What is the current level of service provided?
• What is the desired level of service and timeline
for achieving it?
• What are the regulatory requirements (i.e.,
minimum level of service)?
• How do council and staff understand what level of
service is needed or wanted by recipients?
• What is the appropriate level of service to deliver?
Service
Service demands
• How will service demands change over time?
• What are the ways that the municipality can
influence the demand for a service?
• How do service demands vary in different
areas of the municipality?
Activity

See page 8 in Workbook

 Learning Goal: Define Asset Management

Risk
Risk
 Learning Goal: Define Asset Management

Types of Risk
Strategic risk | Risk of change that could
impede your ability to achieve an
overarching strategic goal

Asset risk | Risk of an asset failing to

perform as needed
 Learning Goal: Define Asset Management

Risk Tolerance
• Not all risks can be eliminated
• Some risks can be mitigated – at a cost
• Risk tolerance means the level of risk a municipality can
reasonably handle

What is an example of a risk you might choose to tolerate?

What is an example of a risk you would want to mitigate?

Activity

See page 10 in Workbook

 Learning Goal: Define Asset Management

Costs and Funding

• Relationship between capital cost and O&M costs
(full lifecycle cost)
• Past and projected trends in operating and
maintenance costs over time
• Revenue sources for future capital and operational
costs
• Opportunities to reduce costs through partnerships
or other alternate service delivery mechanisms
Activity

See page 11 in Workbook

 Learning Goal: Articulate the Benefits of Asset Management

Benefits of Asset Management

Align the organization with things that
matter most.
• Service delivery, from the lens of people
receiving the service
• Alignment with other municipal plans
 Learning Goal: Articulate the Benefits of Asset Management

Benefits of Asset Management

Defensibly prioritize projects and
allocate resources.
• What needs to be replaced, when, and
how much it will cost
• Systematic approach to resources and
addressing risk
 Learning Goal: Articulate the Benefits of Asset Management

Benefits of Asset Management

Demonstrate accountability to
the community.
• Be able to articulate why
decisions are being made
 Learning Goal: Articulate the Benefits of Asset Management

Benefits of Asset
Management Position your community to take
advantage of federal or provincial
government incentives or meet
requirements.
• Asset management is increasingly being
required to access grants
Activity

See page 14 in Workbook

 Learning Goal: Describe the Tools used in Asset Management

Asset Management Tools

 Learning Goal: Describe the Tools used in Asset Management

Asset Management Policy

• Connection between council’s strategic guidance and
staff’s operational processes
• Standalone policy, or a series of policies related to
areas like finances, human resources, training, etc.
 Learning Goal: Describe the Tools used in Asset Management

Asset Management Policy

• Outlines commitment and mandated requirements for
asset management
• Links to strategic objectives
• Shaped by values and priorities, and community
objectives
• Outlines principles for decision-making about assets
• Outlines corporate approach to funding and financing
 Learning Goal: Describe the Tools used in Asset Management

Asset Management Strategy

• Lays out the direction, framework, and approach for
implementing the policy
• Council can endorse the strategy to signal
importance of asset management
 Learning Goal: Describe the Tools used in Asset Management

Asset Management Strategy

• Outlines how AM policies will be implemented,
identifies objectives, goals, and approach to AM
practices
• Outlines relationship between other corporate
initiatives and plans
• Primarily for staff use, with input from council
Asset Management Plan
• A detailed plan that outline how assets will be managed
in one or more service areas
• Supports implementation of the asset management
strategy
• May be one plan, or a separate plan for each service
(e.g., transportation, facilities, etc.)
• Outlines how asset management practices will create,
maintain, and renew infrastructure and other assets
 Learning Goal: Describe the Tools used in Asset Management

Asset Management Plan

• Includes comprehensive information about assets, their
condition, and how they are performing
• Identifies current levels of service and desired levels of
service
• Identifies asset and strategic risks
• Defines capital and operational projects needed
• Defines current and projected costs and funding
• Provides a timeline for implementation
• Articulates the consequences of not following the plan
Activity

See page 18 in Workbook

 Learning Goal: Describe the Implementation of Asset Management

Implementing Asset Management

• Developing a plan, strategy, and policy is
not the end goal – these tools need to be
implemented.
 Learning Goal: Describe the Implementation of Asset Management

Implementing Asset Management

1. Identify a champion and build a team
• Build a team and the support network you
need
• Include cross-functional representation
• Need a champion to bring everyone together
and keep momentum
 Learning Goal: Describe the Implementation of Asset Management

Implementing Asset Management

2. Assess assets
• Bring together available information on
your assets to get a high-level snapshot
• Compile into a central inventory or location
• Use the information you have as a start-
you can improve it later!
 Learning Goal: Describe the Implementation of Asset Management

Implementing Asset Management

3. Assess asset management practices
• As a team assess your current practices
• (we will be doing this as a group later!)
 Learning Goal: Describe the Implementation of Asset Management

Implementing Asset Management

4. Identify priorities for improvement
• Select priorities for improvement
• Consider low effort, high impact first?
 Learning Goal: Describe the Implementation of Asset Management

Implementing Asset Management

5. Implement and monitor
• Decide what’s important to monitor and
report back on
• Implement and periodically measure
 Learning Goal: Describe the Implementation of Asset Management

Ongoing Decision-Making
• Alignment with regional service delivery
• Need to consider impacts to other
municipalities and/or service delivery partners
 Learning Goal: Describe the Implementation of Asset Management

Ongoing Decision-Making
• Communication for good decision making
• Engaging and educating council
Ongoing Decision-Making
• Information Management
• Collecting information
• Consolidation and organizing information
• Storing and accessing information
• Updating and improving information
• What information is important to collect?
 Learning Goal: Describe the Implementation of Asset Management

Collecting Information
• Information doesn’t need to be perfectly
accurate—it depends on what you need it for
• Start with anecdotal data or estimates if that’s all
you have (qualitative data is still data)
• Improve data over time
 Learning Goal: Describe the Implementation of Asset Management

Consolidating and Organizing Information

• Data needs to be accessible when needed
• Some communities prefer specialized software
• But you can start small—basic GIS with an Excel
inventory
Activity

See page 23 in Workbook

Module 2

Define the Human and Financial

Resources Required for Asset
Management
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Role of Stakeholders
Asset management requires participation of a range of internal and
external stakeholders:
• Council • Partners
• CAO • Consultants
• Staff • Senior
• Community Government
Constituents
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Council
• Sets direction and relevant policies
• Stewards of community services
• Supports building community resilience
• Considers asset management information and
mindset in day-to-day decision-making
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

CAO
• Employee of, and accountable to, council
• Works with administration to implement council
direction
• Directs and supports staff in developing AM
processes and systems
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Staff
• Develops and implements asset management
practices
• Involved throughout the asset management process
• Accountable to the CAO, not council
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Community Constituents
• Receive services
• Pay rates and taxes
• Are the “why” of service delivery
• Elected officials are often the first point of contact
when constituents are unhappy
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Partners
• May help a municipality to deliver a service
• Intermunicipal Collaboration Framework (ICF) may
identify opportunities and strategies for
partnership
• Important to identify who in the partnership will be
responsible for asset management of joint assets
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Consultants
• May be hired to provide specialized asset
management services or for other aspects of
service delivery where asset management may be
relevant (e.g. establishing utility rates, etc.)
 Learning Goal: Describe the Roles and Responsibilities of Stakeholders in Asset Management

Federal and Provincial Governments

• Provide incentives for municipalities to develop
asset management processes
• May require communities receiving grants to
demonstrate their need for the investment by
describing their asset management practices
Activity

See pages 26-27 in Workbook

“Making decisions requires
that the right information
reaches the right people at the
right time. Working across
disciplines and departments is
required to make this happen.”
(A Handbook & Toolkit for Alberta
Municipalities)
 Learning Goal: Describe the Attributes of a Successful Asset Management Team

Building a Team
• Cross-functional groups
• A champion
• Involvement of staff who have knowledge in:
• Finance
• Public works
• Engineering
• Planning
 Learning Goal: Describe the Attributes of a Successful Asset Management Team

Building Corresponding Competency in People and

Leadership
Key attributes of AM Champion and Team:
• Leadership and influence
• Understanding of asset management and how it
connects from policy to specific activities
• Ability to communicate about asset management
to others
 Learning Goal: Describe the Attributes of a Successful Asset Management Team

Building Corresponding Competency in People and

Leadership
The asset management team should possess:
• Commitment to work together and promote a
culture of communication
• Ability to consider and give weight to all
perspectives
• Sense of accountability to asset management and
improvement in asset management
Activity

See page 30 in Workbook

 Learning Goal: Estimate the Financial Resources Required for Asset Management

The Basics for Getting Started

• A Champion
• A Team
• Support from Management and Council
 Learning Goal: Estimate the Financial Resources Required for Asset Management

Levels of Investment: Staff Time and Capacity

• How much time will members of our team
need to focus on asset management?
• Do they have that time available currently?
• Do they have the skills they need to do
this, or do they need some training?
 Learning Goal: Estimate the Financial Resources Required for Asset Management

Levels of Investment: Systems, processes, and tools

• Do we need to invest in any tools to
support our efforts, such as an asset
management software?
• Do we need to hire some specific external
help to help us develop new processes,
perform assessments, or develop plans?
“Asset management processes are
most effectively built through
continuous improvement, so you
may start at the entry level and
make small investments over time
to improve your systems and
processes. The important thing is
to get started.”
(A Handbook & Toolkit for Alberta
Municipalities)
 Learning Goal: Measuring and Monitoring

Measuring and Monitoring

• How will you know when you are successfully
implementing asset management, or if you
need to course-correct?
 Learning Goal: Measuring and Monitoring

Assess current state - Where are we now?

• When assessing current state, it is important to

think about all the areas that contribute to
asset management.
• Tools include the FCM AMRS and AssetSMART.
 Learning Goal: Measuring and Monitoring

What direction do we want to go?

• Needs to align with higher organizational goals

• Key tools: asset management policy and
objectives provide strategic direction and
connection
 Learning Goal: Measuring and Monitoring

How do we want to get there?

• How much should we take on?
• An asset management strategy and/or
roadmap can help you identify milestones and
measurements in between your current and
desired states
• SMART goals!
Creating SMART Goals
Specific – how will we know when we have
achieved our objective?
Measurable - how will we communicate progress?
Attainable – is this something that we can achieve
from our current state?
Relevant – is this important to those that are
affected?
Timely – when are we going to do this by?
 Learning Goal: Describe the Five Competency Areas of Asset Management and Assess Current State

Asset Management Readiness Scale

• Identifies five competencies that are required
for successful AM
• Tool for evaluation of AM practices
• That can be used many times!
 Learning Goal: Describe the Five Competency Areas of Asset Management and Assess Current State

Policy and governance

• Putting in place policies and objectives related
to asset management
• Bringing those policies to life through a strategy
or framework
• Measuring and monitoring implementation
over time
 Learning Goal: Describe the Five Competency Areas of Asset Management and Assess Current State

People and leadership

• Setting up cross-functional groups with clear
accountability
• Ensuring adequate resourcing and commitment
from senior management and elected officials
to advance asset management
 Learning Goal: Describe the Five Competency Areas of Asset Management and Assess Current State

Data and Information

• Using asset data, performance data, and
financial data to support effective asset
management planning and decision-making
 Learning Goal: Describe the Five Competency Areas of Asset Management and Assess Current State

Planning and Decision-Making

• Documenting and standardizing how the
organization sets priorities
• Conducts capital and operations and
maintenance planning, and decides on budgets
 Learning Goal: Describe the Five Competency Areas of Asset Management and Assess Current State

Contribution to Asset Management Practice

• Training and staff development
• Sharing knowledge internally
• Participating in external knowledge sharing
Activity

See page 43 in Workbook

 Learning Goal: Define Conditions for Success

Conditions for Success

• Take some time to think through how you can
take what you’ve learned back to your
organization, and how you can work together
with your neighbours to progress with each
other’s support.
Reflection

See page 51 in Workbook

You’ve Made It!
Looking forward…
 Identify your asset management champion
 Talk to council about asset management and provide
an update on what you learned at today’s workshop
 If you have one review your asset management policy
with your champion
 If you don’t have an asset management policy talk to
your champion about what an asset management
policy could like for your municipality and review the
sample policies provided in the resources section
 Check in with your neighbours to share progress and
experience
Follow-up support
Questions?
Evaluation Form