Implementing Value-Driven Asset Management in a Smaller City Patrick Pulak Ross Homeniuk City of Brandon, Director of Engineering KPMG Canada, Director, Infrastructure Advisory Implementing Value-Driven Asset Management in a Smaller City

About Brandon, Manitoba Located on the Trans Canada Highway between Winnipeg and Regina, roughly at the 100th meridian. With a population of 50,0000, Brandon is Manitoba’s second largest City. It has grown by 17% over the past decade. Dubbed the “Wheat City”, Brandon is a regional hub of agriculture, commerce and transportation. It serves a combined regional population of over 180,000.

The Infrastructure Challenge The City of Brandon relies on a diverse portfolio of infrastructure to service and grow its economy and population, but is faced with many challenges. Shifting Expectations Development Growth Aging Asset Base Limited Resources Changing Environment

Starting From the Ground, Up Steps had been taken to lay the foundation for successful AM… Buy-in and support of senior administration GIS-based inventory of key infrastructure Targeted inspection and maintenance programs Work management system to manage and record activity Investment in analytic tools Recognition that a coordinated effort was needed to advance… Stuck on largely reactive response to issues and urgencies Difficulty measuring and communicating performance Inconsistency in defining needs and prioritizing investments Overreliance on staff knowledge and experience Mixed views and support from Council But…

Renewed Commitment Brandon’s senior leadership renewed its commitment to asset management in 2016 Understand and manage its evolving asset base Align assets with current and future needs Support proactive and long-term planning Increase transparency and defensibility of plans and decisions Standardize and enhance business practices Leverage past investments in data and technology Improve value for taxpayer dollars Position for coming requirements

Integrated Approach VISION: To sustainably manage infrastructure by proactively understanding, planning for and addressing infrastructure challenges and opportunities AND positioning to meet coming Provincial requirements Asset Management Policy; Governance; and Business Improvement Strategy Asset Performance, Risk Assessment and Asset Needs Analysis Asset Management Plan; Decision Support; Investment and Financial Planning Data Collection and Analytics Corporate/ Organization Management Manage Asset Portfolio Manage Asset Systems Manage Assets Create / Acquire Utilize Maintain Renew /Dispose Organizational Strategic Goals Capital Investment optimization and sustainability planning System performance, cost & risk optimization Optimize life cycle activities (O&M, Engineering etc.) Alignment with leading practice

Areas of Focus The Asset Management Development initiative established a strategy for strengthening the Asset Management Function, enhancing the Asset Management System and developing an Asset Management Plan Strengthen the Function Enhance the System Develop the Plan Strengthen the organizational enablers needed to support and sustain the asset management program over the long-term. Enhance the actions, practices and tools guiding robust, effective investment planning and decision making. Evaluate and forecast needs and requirements, and provide an objective baseline against which progress can be measured.

Buy-In and Commitment for Moving Forward Key Outcomes Using leading practice as a guide, the initiative built upon team knowledge, existing data, and lessons learned to make advancements in each of the three areas of focus: Strengthen the Function Enhance the System Develop the Plan Common Vision and Objectives Engagement of Council Asset Management Policy Proposed Governance Structure Level of Service Framework Evaluation of Gaps in Practice and Toolset Targeted Improvement Plan Understanding of Key Issues Forecasted Investment Needs Evaluation of Financial Options and Constraints Buy-In and Commitment for Moving Forward

The Way Forward Change doesn’t happen over night. The Asset Management Development initiative produced a 5-Year Business Improvement Plan guiding systematic progress toward leading practice across the City Oversight & Control Asset Program Planning and Decision Making 1. Assess Needs 2. Evaluate Options 3. Prioritize Solutions 4. Develop Plans Develop communication and change plan Introduce performance measurement and reporting Undertake corporate systems review and integration strategy Establish Levels of Service and performance measures Introduce asset-level risk framework Standardize inspection and performance assessment Introduce performance and needs forecasting Introduce standardized Business Case framework and guidelines Establish common system for the capture and evaluation of business cases Establish standardized prioritization framework Establish common system for the capture and analysis of budget needs, constraints and scenarios Formalize budget planning and development process Asset Program Management and Delivery 5. Prepare Strategy 6. Establish Baseline 7. Manage Delivery 8. Verify Outcomes Establish delivery options evaluation framework and selection process Align and integrate options analysis with corporate level procurement Standardize project delivery framework Standardize maintenance tactics and procedures Standardize management and tracking Centralize capture, analysis and reporting of work progress and performance information Formalize maintenance management and tracking Standardize project/ program close-out process Standardize capture and reporting of project performance Centralize capture and update of asset and service records

Letting Value Guide Action Nothing builds support like success. While the Business Improvement Plan looks daunting, achieving “quick wins” builds momentum and commitment for moving forward. Actions Analysis Best Value Actions Effort Alignment ID Initiative 0.1 Develop communication and change management plan 0.2 Introduce performance measurement and reporting framework 1.2 Introduce asset-level risk framework 1.4 Introduce performance and needs forecasting 2.1 Introduce standardized Business Case framework and guidelines 2.2 Establish common system for the capture and evaluation of business cases

Lessons Learned Don’t loose focus on the Business Infrastructure doesn’t exist to be infrastructure. It exists to serve a purpose. When done effectively, asset management helps us align our infrastructure, and associated capital and operating investments with business goals and priorities. Understanding relationships between our business priorities, our service requirements, and our physical infrastructure assets helps us understand the dependencies of improvement on business outcome Will also help in identifying relationships between stakeholders and establishing plans to overcome silos, and communicate and manage needed change. Integrate, don’t isolate Sound Policy and Governance, People, Process, Data and Technology are organizational enablers needed to successfully introduce and support effective asset management over the long term. To be effective, an asset management initiative must consider the interrelationships between all of these factors, and how they will work together to support business need. Integrated strategy needed to ensure that needed supports get introduced along with improvements to practices and tools.

Lessons Learned Don’t expect perfection Engage, engage, engage Asset management is an evolutionary process, and if you wait to get everything right, you’ll never get started. Focus where it matters most, by identifying key services and the assets that support them Build upon past work, taking advantage of available data and information Capitalize on external drivers or local issues to create urgency and momentum Use pilots and staged roll-out to turn concepts into reality and demonstrate tangible results. Manage expectations and don’t set yourself up to fail Engage, engage, engage Stakeholder engagement is critical to achieving buy-in and support for asset management across your organization Identify stakeholders and dependencies early Keep engagement and change management at the forefront of all work activities Work collaboratively and flexibly to effectively target and utilize people’s time Employ proven facilitation techniques to maximize input and contribution Track and communicate progress – nothing builds support like success.

Questions? Contact Us: Patrick Pulak Ross Homeniuk City of Brandon, Director of Engineering ppulak@brandon.ca Ross Homeniuk KPMG Canada, Director, Infrastructure Advisory rhomeniuk@kpmg.ca