Strategic asset planning is the single most important asset-related aspect of an agency’s overall planning and service delivery system – which includes Government policy and direction, and an agency’s corporate planning, action and review.
An agency’s corporate plan identifies its overall purpose and the financial, workforce and other resources needed to achieve the Government’s objectives at an appropriate level of taxpayer funding. In that context, strategic asset planning and management has a narrower focus. It identifies and sustains the asset and related demand control initiatives upon which service delivery also depends. It should both be driven by and inform an agency’s corporate plan.
Successful agencies ensure that the Chief Executive Officer and other senior asset investment planners and decision-makers (including the Chief Financial Officer and Chief Information Officer) are actively involved in the annual review and improvement of the agency’s strategic asset plan and advice to Ministers. Key governance responsibilities include selection of the highest investment priorities (for new and existing assets) and ensuring that funding for the maintenance of existing assets is not diverted to other priorities.
This document provides the policy and model for a strategic asset plan (SAP). The document shows how to clearly articulate an agency’s (asset-related) demand drivers and projections, and its service delivery objectives and model over the next 10 years as the foundation for all subsequent asset planning and management. The final SAP version is considered and approved each year by the Minister.
The following guidance shows the depth of thinking and analysis that is applied to develop concise advice in a strategic asset plan on key aspects that involve significant costs and risks: