Data-Driven Approach to Asset Management in Local Government

The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.

By James Flick
June 24, 2024

Local public administrators face a significant challenge in addressing local infrastructure needs and are responsible for maintaining various assets such as roads, bridges, water systems, sanitary sewer systems, stormwater sewer systems, sidewalks, facilities and traffic signals/signs. Each of these assets is crucial for providing services to the community and enhancing residents’ quality of life, health and safety. As these assets age, they become more susceptible to failure. Therefore, an effective data-driven asset management strategy aims to monitor the condition and performance of these assets over time to increase their lifespan. This approach helps in making well-informed decisions about maintenance, repair, and replacement in a cost-effective and sustainable manner that meets the community’s needs.

What is asset management?

Asset management involves the acquisition, upkeep and replacement of assets to provide public services and ensure the well-being of the community. An effective asset management program aims to extend the lifespan of assets through preventive maintenance and regular replacement schedules. This helps maximize the community’s investments over time and extends the service life of each asset. Preventative maintenance activities can include regular inspections, routine repairs, cleaning, lubricating parts, oil changes, equipment testing and more.

Many communities have difficulty balancing reactive and proactive maintenance. This is often due to manually tracking information or relying on an online app or platform enabling residents to submit service requests to drive work planning. Prioritizing resident requests for service over preventative tasks is often viewed as providing good customer service. However, to truly serve a community, staff must strike a balance between being responsive to emergency issues and citizen requests, being good custodians of public infrastructure and working to complete preventative maintenance.

With infrastructure needs becoming more complex and citizen demands increasing, asset management should be seen as a “way of thinking” for local public administrators. Infrastructure should be considered from an asset-centered perspective rather than an operations-centered perspective. Taking a data-driven approach to asset management enables organizations to allocate resources where they are most needed, guiding both day-to-day maintenance and long-term capital investments.

Implementing a Data-Driven Approach to Asset Management

The first step in implementing a data-driven approach to asset management is to acknowledge that data is just as integral to delivering high-quality service as the physical assets themselves. With this acknowledgment as a guiding principle, cities should develop a comprehensive asset inventory and perform condition assessments. Doing so will provide a baseline understanding of asset condition and help define annual maintenance needs, which can be broken down into monthly targets and weekly work assignments.

Once the inventory and condition assessments are complete, the information should be incorporated into a centralized software program such as a computerized maintenance management system (CMMS). A CMMS is a software package that helps organizations plan, monitor and report maintenance tasks and the condition of community assets.

The initial cost of implementing a CMMS or other asset management software can vary depending on community size, the number of users and how the city customizes it to meet the unique needs of its assets. However, the long-term savings and benefits often outweigh the upfront investment.

During the implementation process, defining a data management framework will be critical to ensure that the organization works with the technology tools to achieve its mission. This involves creating policies to:

• Ensure data is available, timely, relevant and secure
• Provide connectivity between systems to enable data flow between different function areas
• Implement tools to review, assess and formulate insights from data to make informed decisions within the organization

Once implemented, a CMMS or other asset management system can help city leadership define key performance indicators (KPIs) and meaningfully track/measure progress toward the annual goals.

To ensure that the selected technology solution is used effectively, personnel with data analytics and technology expertise will be required. Investing in training programs can help bridge this gap. However, it may also necessitate the hiring of analytical support staff to:

• Assist with the implementation of technology tools
• Implement the data management framework
• Incorporate annual, monthly and work plans into the software program
• Perform data collection and analysis
• Develop KPIs

Finally, cities should regularly monitor asset performance and maintenance activities. This information will help inform future repair and replacement activities and continuously refine and improve the asset management program.

Overall, the shift towards a data-driven approach to asset management is not just a trend but a necessity for modern local government administrations. By harnessing the power of data, local governments can enhance decision-making, improve cost efficiency and promote sustainability. The long-term benefits of establishing a data-driven asset management approach make it a worthwhile investment, ultimately leading to better-managed assets and more resilient communities. As local governments continue to navigate the complexities of infrastructure management, embracing data-driven asset management will be key to building smarter, more efficient and responsive cities for the future.

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Author: James Flick received his Master of Public Administration from Northern Kentucky University, where he has also served as an Adjunct Instructor teaching Public Policy, Budgeting, Ethics, and more. He is currently a Senior Consultant with Raftelis, a local government and utility management consulting firm, and was recently appointed President of ASPA’s Greater Cincinnati Chapter.

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