Local governments are faced with an imposing challenge: how to keep the level of service the same (or better) while serving an ever-increasing number of citizens, especially with urbanization at an increasing rate and budgetary constraints. Infrastructure is failing at a rapid pace, which is heavily burdened by outdated operating methods, changes in societal expectations (technology and the millennials entering the workforce) and new ways of client-to-business interaction. Local governments can borrow the embodied principles and practices of Enterprise Asset Management (EAM) from asset-heavy industries, such as oil and gas and manufacturing, to build sustainable and manageable cities and services. There is plenty of technology to enable such principles to a degree of precision and efficiency that can satisfy heavily regulated industries, including pharmaceuticals and nuclear. EAM software can be used in conjunction with the right conceptual architecture to provide a sustainable urban model.
Local governments are faced with the same levels of asset intensive environments of other industries, if not more complicated and geographically dispersed. The diversity of the asset bases, as well as all the legacy systems to support them, provide for a very challenging ecosystem in which to navigate and operate. Assets range from linear assets such as roads, pavements, storm sewers and water lines to street lights and facilities. Throw in this mix legislation, policies and budgetary constraints to add more complexity to that operating environment (and let’s not forget OSHA).
Local governments have to balance infrastructure challenges; civic, state and federal accountability; and the general ledger account. Multiyear budgets and forecasts need to be carefully studied based on information. Information needs to be created from the data the disparate systems generate, and that quality is usually under suspicion. In order to execute, software such as EAM and Geographical Information Systems will be required. This software needs to serve as an enabler for data to be captured, converted to information and “parsed” into neat reports or presentations for decision makers and stake holders to navigate through at the next budgetary meeting. That same software can help maintenance and operations bring health, safety and environmental policies on-site when the employees need it to continue to work in an accident-free environment.
Maintenance and operational excellence require a series of strategies to be designed and actualized. The goal is to understand the flow of services to the client and continuously improve upon them. With the variety of services a local government needs to provide comes the challenge of standardizing the business processes that support those services. A systematic approach to assets provides the decision makers with life-cycle information where existing and historical asset data will be the cornerstone for expenditures, as well as operating limits.
Managing local governments’ physical assets can be actualized by applying lessons learned and programs developed in other asset-intensive industries. Assessment-based improvement plans, as well as data-driven continuous improvement initiatives, will provide local governments the necessary decision-support infrastructure. This ensures the optimal level of the asset base for the foreseeable future, which can help decision makers and asset custodians accurately quantify the infrastructure gap and address it with confidence for a sustainable and productive future.
For more information, visit www.nexusglobal.com, or contact Alex Tsironis at (855) 488-0068 or a.tsironis@nexusglobal.com.
