Strategic asset management plan University of glamorgan - Essay Example

STRATEGIC ASSET MANAGEMENT PLAN - OF GLAMORGAN - A REVIEW General The aim of a Strategic Asset Management Plan for higher educational establishments is to consolidate a University's objectives and strategies for asset management and align it to the core business of universities, high quality education. (Director: 2006). The Asset Management Plan is developed from the University's academic mission, vision, plan and growth objectives. (FMS: 2004). This ensures that the academic plan is supported by creation and maintenance of infra structure which will support imparting high education as also attract a greater and more qualified population to its wells of learning. A strategic asset management plan is thus an important facet of the overall strategy for growth of a University. The University of Glamorgan is based in Treforest, near Pontypridd. It was a miners training college, was converted to a polytechnic and attained the status of a university in 1992. It has rapidly developed in the past two decades or so into an innovative academic establishment with 21,000 students. There has been a move towards globalization of the university's services and internationalization of its student profile. (Profile: 2006). Keeping in view the progressive philosophy of the University it has drawn up a strategy and a plan for achievement of these objectives. The University of Glamorgan has a vast portfolio of property which comprises of 35 hectares of land spread over five sites. The University has made considerable investments in development and management of its properties since 1992 which is to the tune of 40m. A number of large projects have been implemented ranging from 500,000 to 7m. (Estate Management: 2000) Overall Strategic Priorities The University of Glamorgan is totally committed towards providing a high class learning environment to include e-learning, tutor facilitation and employment of cutting edge learning facilities to enable the students to benefit academically and socially. Thus it is felt that prospective employers should be eager to acquire the skills which have been developed in students by an intense and stimulating academic programme. This should also create an aspiration for growth and success in the students. These are no doubt laudable strategic objectives for any learning institution which deem to foster growth of the establishment with a view to benefit its primary stake holder, the student. The twin perspectives of providing employment in the immediate time frame on leaving the establishment and creating an urge for sustained personal and professional growth in the students are also laudable. A Strategic Asset Management plan flows from the priorities set by the University for sustained development. The strategic priorities of Glamorgan University have been summarized as follows:- Enhance the overall nature and quality of student experience Improve the quality of student intake. A high grade research and consultancy profile should be developed and post graduate activity should be expanded. Infra structure should be improved. People based quality improvements should be undertaken. Contribute to the regional as well as the strategic partnership agenda. Contribute to Glamorgan's equal opportunities and social inclusion agenda. Provide an international profile to Glamorgan's reputation. Provide a favorable e-world information and communications development programme. (Strategy: 2006). An analysis of the strategic objectives of the University will reveal that assets form an important facet for its attainment. While some of the aims as improvement of infra structure are primary to development of assets, others such as improving the quality of intake and enriching experience of students will to a large extent be dependent on the ability of the University to have a much sought after ambience of learning. The overall goals of contribution to the larger community in Wales are also dependent on contribution to the environment at large. While maintaining an international profile is attendant to world class infra structure as students will benchmark it with the best in the class of learning institutions. Glamorgan's Strategy for Management of Estates and Facilities The commitment of the establishment towards development and maintenance of its assets can be visualized by the property costs which are the second highest in the University's balance sheet. Maintenance costs per annum are said to be approximately 7m per annum or around 10% of the annual turnover. These costs do not include the expenditure on capital projects. (Estate Management: 2000). Thus it would be seen that the establishment is totally committed to support development of the estate as well as the assets. There is a need to evaluate the strategy and plan to support the commitments and the investments made in assets by the University. The strategy for management of estates and facilities has been evolved in line with the overall strategy of the University. This is contained in the document, Estates Strategy of the University which was completed in 2000 and has provided five year plans for maintenance, improvement and development of the University's estate. These were prepared by a lead property consultant, Drivers Jonas. Drivers Jonas was specifically required to obtain views from a cross section of the university community as also the general community of Treforest. The public and private sector agencies having a stake in the future of the university were also consulted while drawing up the plan. (Estates: 2000). The strategy while acknowledging the large number of improvements which have been made to the sites and the buildings in the past, has also brought about the necessity to face up to the varied challenges lying ahead. The strategy underlined the need to meet the growing demand that would come up for space with better teaching and learning environment being created which will impact on the estate. (Estates: 2000) Thus it was desired that a very well planned and structured estate strategy should be evolved to meet the needs of the times. The Estates Strategy 2000 of the University of Glamorgan has focused on key factors given as follows (Estates: 2000):- (a) Learning Environment. The aim of maintenance of the estate should be provision of an environment which supports effective teaching and learning. (Estates: 2000) (b) Facilities Services. These should support and maintain a quality environment. (c) Customer Requirements. The facilities should support the customer requirements. (d) Best Practice. Best practice and value for money should be pursued in all the Estate activities. (e) Safety. All estate works should be undertaken in a safe and considerate manner. (f) Expansion and Future Development. Expansion and future development of the University's estate should be systematically pursued within the overall framework of the Strategic Estates Plan. (g) Continuous improvement of the conditions and appearance of the University's estate. (h) Estates Staff. Promotion and utilization of the skills, expertise, knowledge, personal development and commitment of the estates staff should be ensures. Strategy Monitoring and Promotion The Strategy Office of the University provides executive support and analysis for the preparation of the strategic and operational goals of the university and development and implementation of the University's plans. Performance indicators and benchmarks are identified and compared with the strategic goals of the University. It also advises and assists various departments in preparing respective departmental or school plans. The Office is also responsible for running and organizing Strategic Programme Conferences and co-coordinating function of the University Strategic Forum. It acts as the focal point for contact with the University's partners in Wales and beyond and also provides expert advice in relation to activities covering areas such as contract renewal and new developments. Communications and information dissemination has also been assigned as one of the tasks of the Strategy Office. Thus there is strong support to evolution and implementation of strategy at the university. (Strategy Office: 2006) Management of Estates The aim of the estate management programme is to create an environment for high-quality teaching and learning for today's student The responsibility for management of estates and facilities is that of the Estates & Facilities department of the University. The Department undertakes maintenance of all the sites and the buildings. It is also responsible for development of the estate including capital building projects such as new buildings and refurbishments as per long term development plan of the University. A number of projects to improve the external environment have been undertaken to include landscaping projects to perk up appearance of the campus and create overall impact of greening. . (Estate Management: 2000). Environmental Policy Environment is an important facet of asset management. The University's commitment to the environment is a major factor in development of its facilities and it ensures that it is committed to existing environmental legislation. It also seeks to protect and preserve the environment. There is a need to ensure that the strategy for management of assets follows environmental policy and guide lines. A primary function of the strategy should be to set up a formal environmental management system according to the principles set out in BS EN ISO 14001:1996 "Environmental Management Systems". (Environment: 2000). The commitment of the University authorities to environment is highlighted by production of Environmental Handbook which is available to the general populace so that each individual is aware of his responsibilities towards care of nature. It is issued under the authority of the Vice Chancellor, who is accountable to the Board of Governors for the University's performance. (Environment: 2000). The Environmental Handbook covers key statutory obligations with reference to prevention of pollution, nomination of environmental representatives and procedures to be adopted for compliance with existing legislation. It is designed to ensure that people are made environmentally aware and actions to improve ecology are undertaken. Key policy statements are supplemented by additional issues as energy conservation and traffic which have also been included in the Handbook. An annual environmental audit has also been introduced with three fold objectives to ensure that:- (a) Changes in the law have been adhered to. (b) The handbook is continuously updated. (c) Compliance procedures have been adopted and are being complied with. (Environment: 2000) A Strategic Asset Management Model for Universities To evaluate the estate management strategy of the University of Glamorgan peer survey is considered essential. Strategic Asset Management should match an organization's basic physical assets with its strategy for delivery of service. It involves a detailed review of the assets and the outcome that is to be achieved rather than only what is being done on ground. This should be carried out by examining the purpose of the asset, the needs that are being fulfilled by the asset, the alternatives and whether there is an actual requirement of these assets. (Goodwin: 2005). Strategic management assets include basically physical assets of a tangible nature such as natural resources, property, plant and equipment, heritage and cultural assets as well as any other infra structural resources. These exclude non tangible assets as human resources, finance, information technology as well short life physical assets as vehicles, furniture and computer equipment. (Goodwin: 2005). A university's strategic Asset Management plan provides an overview of how the organization matches the physical assets to the strategic directions that are expressed in the corporate or strategic plan, its strategy for delivery of service, business plan and plan for management of the environment (Goodwin : 2005). A number of universities are evolving strategic management plans. The University of New South Wales and University Tasmania are some of the recent examples of establishments, who are considering not just strategy for estate development but also a total plan of management of the built as well as natural environment, to ensure that the assets are managed efficiently through out the life cycle. The University of Tasmania includes information technology assets also in the asset management plan while the University of New South Wales considers information technology as beyond the scope of asset management. The Total Asset Management (TAM), framework which has been adopted by University o f Tasmania involves the following key features (Director: 2006):- (a) Provision of an asset base that matches and supports the requirements of the University. (b) Consolidation and optimizing utilization. (c) Meet compliance costs. (d) Meet the operating costs. The University of New England has a proactive approach to strategic assets management which gives clear directions to the Facilities Management Services which is made responsible for implementation of the plan. The Facilities Management Services prepares a number of sub plans to ensure execution such as The University of New England's 'Master Plan Review 2006' which is accepted by the University Council after an extensive community consultative process and outlines a number of projects such as improving the campus and improvement of locations for capital development. (FMS: 2004). The University of New England Maintenance Plan outlines the various maintenance policies and procedures for maintaining campus infrastructure. The FMS operational plan gives out objectives and results to be achieved for the year. It also gives out the themes to guide the plans. Some of these themes are sustainability; an 'ingrained' risk management process; and efficient delivery of services. (FMS : 2004) Analysis and Evaluation A review of the Estate Management Plan of University of Glamorgan with the best practices and plans of other universities reveals that while an Estate Management Plan has been evolved, there is a need to provide it a greater focus in the following areas:- (a) Effective linkages with the overall strategy of growth and development of the University. The Strategic plan has to be dovetailed with other strategic initiatives as Information technology development and should go hand in hand with the growth areas identified. Thus a clear blue print of how strategic asset management is contributing to mission, vision and objectives of the university should emerge. (b) Details of the plan need to be worked out with a long term perspective. This is particularly so as heavy investments are being made in infra structure expansion. (c) Utilization of funds should provide a better perspective of development and growth of the University. Thus while substantial funds have been allotted and are being spent on estate development and management, the value addition is not evident which would be attained by a consolidated plan which includes, allotment and utilization of funds and accrual of value additions. (c) Asset consolidation requires greater focus. The Estate management plan apparently gives an impression that each facility is being improved exclusively rather than creating an impression of overall development. (d) Satisfaction data through a consumer survey is an essential necessity. This is not being carried out by the University. While such a survey is being carried out by the Academic Registrar which includes mainly satisfaction survey on academic issues, the same for asset management is lacking. (Survey: 2004). Recommendations The University of Glamorgan should review its Estate Management plan to align it with its strategic document, The Way Forward: 2010. (Meeting: 2003). The core objectives of the University will be achieved only if assets add value to academics by improving the overall environment. Hence a holistic strategic asset management plan is essential which needs to be evolved with greater deliberation. References 1. Profile. (2006). http://www.glam.ac.uk/profile. ( 3 May 2006). 2. Strategy (2006).http://www.glam.ac.uk/profile/78/strategy. ( 4 May 2006). 3. Estates. (2000). http://www.glam.ac.uk/estates/268/strategy. ( 4 May 2006). 4. Strategy-Office. (2006). http://www.glam.ac.uk/academic/253/strategy-office. ( 3 May 2006). 5. Estate Management. (2000). http://www.glam.ac.uk/estates/267/estates. ( 3 May 2006). 6. Environment: 2000. http://www.glam.ac.uk/estates/438/environment. ( 3 May 2006). 7. Goodwin, David. (2005). http://www.facilities.unsw.edu.au/Planning/sam.htm. ( 3 May 2006). 8. Director Asset Management Services: (2006). Strategic Asset Management Plan 2006 - 2011. University of Tasmania. samp.pdf 9. FMS. (2004). The University of New England Strategic Asset Management Plan. 10. S:AdminFMSExecDirectors FilesStrategic Capital Space Documents May 04Actual DraftStrategic Asset Management Plan Final.doc 11. Meeting. (2003). Minutes of the Meeting of the Board of Governors. University of Glamorgan HEC Prifysgol.Morgannwg. CAU. www.glam.ac.uk. ( 3 - 5 May 2006). 12. Survey. 2004. Minutes of the meeting. Student Experience & Retention Task Group 13. The University of Glamorgan. Prifysgol Morgannwg Read More