Summary of the project, product, framework
The Strategy and Investment (S&I) team within the Department of Jobs, Precincts and Regions (DJPR) is leading the implementation of the Asset Management Accountability Framework. Key products, frameworks and processes implemented over the last 12 months include:
Critically, an innovative attestation processes and self-assessment tool to measure asset management maturity and inform compliance, improvement plans and public attestations has also been developed and implemented.
Description of project or framework
Use of Best Practice Asset Management Principles
DJPR and its portfolio agencies manage a diverse portfolio of state significant assets that contribute to Victoria’s wealth and wellbeing. This comes with the responsibility of ensuring these assets are well managed to maximise services and outcomes for the community and to preserve their cultural and heritage value.
Snapshot of Asset Management in DJPR
DJPR was formed as a new Department on 1 January 2019, bringing together elements from a number of different departments. DJPR has direct responsibility for around $630 million in assets and indirect responsibility for a further $9.9 billion in assets managed by its portfolio agencies.
As a Victorian Government department, DJPR is subject to the Asset Management Accountability Framework (AMAF), which establishes flexible and non-prescriptive requirements to ensure assets are managed efficiently and effectively.
DJPR has leverage the AMAF as a tool for driving asset management improvement and maturity, rather than treating it as a compliance burden. Effective implementation of the asset management products, frameworks and processes implemented over the last 12 months is focused on:
- aligning assets to service delivery needs
- managing assets within available resources and legal/technical requirements
- improving asset management maturity and compliance
- adopting a whole-of-life approach to planning asset investment and management decisions
- monitoring, evaluating and improving the performance of assets
- having appropriate asset management governance, authority and accountability processes, systems, risk management and reporting requirements in place
- adopting a continuous improvement approach to asset investment policies and practices.
Degree of originality and ingenuity of solution
The core products, frameworks and processes implemented over the last 12 months include are summarised in table 1 below.
Two areas of particularly merit with regard to originality and ingenuity are the DJPR Attestation process and self-assessment tool and the implementation of the Asset Management Reference Group.
Additional information on the Asset Management Reference Group is provide in the “contributions” sections. Additional Information on the DJPR Attestation process and self-assessment tool is provided in the “general comments” section. The tool is also attached.
Table 1 – List of products/processes/frameworks developed
|DJPR Asset Management Framework
|The AM Framework integrates all the Asset Management related decisions, processes, leadership and governance within DJPR and shows the dependencies and linkages between the AM Policy, AM Strategy, business processes, information systems and human resources that are involved in an asset management capacity.
|DJPR Asset Management Policy
|The AM Policy informs the whole of life cycle asset management related decisions and activities. It outlines how “good” asset management practices may be embedded within asset / investment evidence-based decision making and articulates the roles and responsibilities of DJPR Groups in aligning assets to service delivery outcomes.
|DJPR Asset Management Strategy
|DJPR AM Strategy sets out the enduring improvement roadmap addressing both asset management and compliance requirements within DJPR relative to the current level of asset management maturity.
|Asset Investment Prioritisation Framework and Implementation Plan
|This provides a structured mechanism for prioritising capital investment, ensuring decisions are evidence based and prioritised against decision criterion. This process enables consistent and transparent decision making that is aligned to DJPR’s strategic vision, objectives and values.
|DJPR Asset Information Management Systems (AIMS) methodology
|AIMS methodology has been developed and includes requirements, processes to accurately record, identify, re-value and report on the performance of an asset over the whole of lifecycle stages. This will foster evidence-based decision-making to maintain, modify, rehabilitate, find an alternative use, or dispose of an asset.
|DJPR Attestation process and self-assessment tool
|The attestation process document stipulates clear expectations and requirements for the 2019-20 public attestation. Additionally, it provides guidance for assessment and includes a template for the remedial action plans to support the non-compliant AMAF mandatory requirements. The self-assessment tool requires DJPR Groups to provide their self-assessments against each of the AMAF mandatory requirements and provide evidence to support their assessments. Although AMAF does not require maturity self- assessment until 2020-21, DJPR has built maturity assessment analysis into the “Attestation tool”. This places DJPR as the leader in measuring asset management maturity within the Victorian Government.
|Progressive adoption and implementation of Asset Management guidelines
|Guidelines have been developed for:
– Asset Management Plans
– Performance Monitoring
– Intangible Assets
Program and project management
Building and Measuring Asset Management Maturity has been a key focus in DJPR. Table 2 below summarises the core management structure for the development and implementation of products, frameworks and processes.
Table 2 – Accountabilities
|DJPR Finance Committee (FC)
|Is accountable for:
» endorsing and recommending for approval (by the Secretary) the AM framework, policy and strategy
» ensuring the AM policy and strategy are implemented
» reviewing the final consolidated AMAF Attestation and maturity assessments from DJPR Groups
» endorsing the Asset Prioritisation Framework and providing evidence -based priority list of Investments
|Strategy Owner (Investment and Procurement)
|Is accountable for:
» the development of the framework, policy and strategy
» development of the DJPR Attestation process and self-assessment tool
» ensuring the policy and strategy are congruent with DJPR policies and strategies
» finalising the consolidated AMAF Attestation and maturity assessments from DJPR Groups
|Asset Management Reference Group (AMRG)
|Is accountable for:
» contributing to AM policy, strategy and framework review
» ensuring that AM policy and strategy are fully integrated into ‘business as usual’
» providing assistance to the Groups/Agencies to develop evidence-based Asset Management Plans
» peer reviewing (assurance) on the AMAF self- assessments that inform DJPR Attestation against AMAF Standing Directions
These roles and responsibilities are underpinned by an internal audit program that tests:
- progress being made on the development and implementation of the key products, frameworks and processes
- the veracity of asset management maturity self-assessments
- progress on implementing agreed improvement plans.
Benefit/Value of the project or service to the community or organisation
The asset management products, frameworks and processes implemented over the last 12 months:
- embed asset management maturity within DJPR
- ensure asset management authority and accountabilities are clearly allocated
- align DJPR Asset Management Policy and Strategy to DJPR Strategic Priorities
- develop, implement and monitor asset management capability and competency improvement within DJPR
- establish performance monitoring and improvement mechanisms.
Importantly, the establishment and operation of the AMRG creates a broad coalition who are acting as change agents within DJPR. The collective approach adopted in the development and implementation of the key products, frameworks and processes helps ensure their relevance and longevity.
The products, frameworks and processes will enable DJPR to:
- provide informed advice to Government on funding priorities
- manage assets using a whole-of-life approach
- optimise asset usage to better deliver services.
These actions ultimately help ensure that decisions relating to the utilisation of assets maximise services and outcomes for the community and preserve their cultural and heritage value.
Opinion as to specific contribution made by the nominated individual/team /organisation
Development and implementation of the work describe above has been led by Mr Binen Sharma, Manager, Investment Analysis together with the Investment Analysis team and the Asset Management Reference Group (AMRG).
Particular attention in drawn to the work of Binen and the AMRG below.
Binen Sharma has led the implementation of the core products, frameworks and processes outlined in this submission.
- Led his small team in the development of the key documents outlined in Table 1 of this submission
- Established and supported the operation of the AMRG
- Collaborated across the department in the development and implementation of the core products, frameworks and processes
- Sought and achieved Senior Leadership buy-in and support
- Mentored and supported others within the department to improve their asset management capabilities
- Organised communities of practice and one-on-one sessions with DJPR’s portfolio agencies to assist them in meeting the requirements of the AMAF and to encourage them to adopt an improvement rather than compliance mindset
- Been approached by, and supported, other Victorian Government agencies to inform their thinking on the AMAF and asset management improvement.
The AMRG comprises of representatives from DJPR Groups and its purpose is to support implementation of the Management Accountability Framework (AMAF) and improve asset management capability and processes within DJPR.
- reviews and endorses strategic documentation in relation to Asset Management (AM) before they are presented to the Finance Committee
- works within their Groups and across their Public Bodies to adopt consistent asset management processes
- facilitates implementation of the DJPR AM Strategy, AM Policy, AMAF attestation process and other relevant documentation
- provides regular update on the progress of the Remedial Action Plans /Improvement Plans to address maturity and compliance gaps
- identifies issues/challenges experienced within their range of accountability with AMAF implementation, share lessons learnt and identifies workable solutions
- supports reporting of the AMAF implementation progress to DJPR AMAF Governance Committee and the Executive Board (on a quarterly basis)
- peer reviews results of self-assessments, as both a quality control process and a capability development platform.
Internal audit findings highlighted that DJPR has a strong focus on developing a continuous improvement culture, processes and procedures to support AMAF through formation of the AMRG. These findings recognised the role of the AMRG in:
- Upskilling DJPR groups on asset management
- Peer reviewing AMAF attestations
- Contributing to development of AM guidance materials.
Commencing in 2020‑21 Victorian Government Agencies must, at least every three years, conduct a self‑assessment of the level of asset management maturity within their organisation and state this in their annual report, including:
- the maturity of their asset management systems and practices
- the maturity of their systems and practices against their aspirational target
- their path towards achieving their aspirational target.
DJPR’s internally developed and innovative maturity assessment and attestation tool places DJPR as the leader in measuring asset management maturity within the Victorian Government.
The Tool leverages AMAF attestation requirements to improve assets management practices within DJPR, not just achieve compliance. DJPR is one of the few agencies within the State Government of Victoria to successfully adopt maturity assessment.
The Tool provides a guided and staged self-assessment process through four core steps. It enable users to:
- Step 1: Assess their “Maturity status” and “Effectiveness of application” under each mandatory requirement of the AMAF
- Step 2: Enter evidence to support maturity and effectiveness scores
- Step 3: Determine Materiality of compliance deficiency (if any)
- Step 4: Enter Improvement Items/Plans.
DJPR’s attestation tool includes innovative features such as;
- a comprehensive assessment of organisational maturity to capture DJPR’s Asset Management policies and processes against every Mandatory requirement stipulated in AMAF Standing Directions
- a comprehensive assessment of effectiveness of policies and procedures and alignment with DJPR strategic objectives
- Collection and review of evidence to support the assessment of AM Maturity Status and Effectiveness
- Identification of compliance improvement plans and ongoing monitoring of progress
Outcome of compliance assessment is demonstrated over different lifecycle stages of assets and key areas include Leadership and Accountability, Planning, Acquisition, Operations and Maintenance, and Disposal.
Below provides an example of how DJPR compliance assessment results are demonstrated in the tool. Red dots denote key improvement themes in Asset Management Maturity.
DJPR’s Attestation process and self-assessment tool is attached.