Evaluation of operational property asset management processes in Scottish Local Authorities

It has now become increasingly noticeable that there has been an increasing trend towards the adoption of asset management by public bodies including local authorities. Since 2003 Scottish councils have been legally obliged to adopt asset management as the strategic framework for managing their property assets. The increased trend has come as a result of evidence of inefficiencies associated with the manner in which local authorities managed their property assets and the realisation of potential benefits that are likely to arise if asset management approach is followed. The purpose of this paper is to assess the extent to which Scottish councils have effectively implemented aspects of the processes associated with asset management practice. There are about five commonly identified asset management processes including: property information management system, capacity building, strategic planning processes, corporate property management arrangements, and effective management of capital programme. The focus of this research is on the latter three. The paper is a research based on a survey investigation of all thirty two Scottish councils. A questionnaire based survey and interview of a select number of key stakeholders was carried out. The research findings suggest that where there is an element of compulsion, councils have been successful. For instance, councils have been very successful in implementing strategic planning processes especially in the adoption of asset management strategies and publishing prepared asset management plans. However, councils have had limited success in securing leadership support in corporate asset management arrangements and in considering property as a corporate resource. Regarding management of capital programmes, local authorities have had limited success in utilising option appraisal to aid decision making about capital projects, maintenance management or planned works. However, councils have been very successful in adopting a corporate approach when making decisions about capital project prioritisation.