The State's asset base is estimated to have a replacement cost in excess of $400 billion. As part of the overall delivery of government services, Total Asset Management encourages the cross-link between asset planning and the planning for human resources, information management and technology and financial resources. In this way Total Asset Management is incorporated into agency business planning and ensures a focus on the attainment of service outcomes.
Agencies that adopt Total Asset Management can expect improvements in productivity that can be equated to best practice improvement (1% to 6% has been documented for Best Practice by the Australian Quality Council). Since 1997, agencies with 30% of the budget sector asset base have begun incorporating Total Asset Management into their business planning and are moving toward achieving an outcomes' focus in their asset management. A mere 3% improvement (based on the Best Practice example) in the management of this part of the State's asset base can achieve annual savings of up to $10 million. NSW Treasury has responsibility for Asset Management policy and the Government Asset Management Committee plays a key role in monitoring its uptake by government agencies. |
