Increasing Focus on Service Delivery
Service Delivery is evolving in a new context of rising expectations. There is an increasing focus on improving efficiency and value for money. Additionally, innovative technologies are continuously emerging.
Impetus to Improve Asset Management
A new impetus must be given to improving Asset Management. This change will introduce major challenges to every organization in the service delivery sectors. With the right approach and attitudes, their initiatives would prove to be invaluable. Best practice will improve understanding and control over the Asset Register. This will allow organizations to make far more informed decisions about capital expenditure and replacement budgeting. These decisions will have a measurable impact on audit reports.
Once established, this new set of standards will offer an astonishing level of visibility throughout the Asset Register. It will maximize business value and streamline processes. This will allow organizations in the private sector to achieve their full potential. It will also help organizations in the public sector manage resources prudently.
Importance of an Authentic Asset Register
An Asset Register is simply not just a list of all the assets owned by an organization. It is not always so obvious that everyone understands this. Not everyone has such a list, let alone a proper Asset Register.
Large organizations have more than one list, but not a True Asset Register. Some have decided to have a cut-off value for assets to be included on the list. Others have a list for fixed assets and another for movable assets. Moreover, misunderstandings about creating an Authentic Asset Register cause significant inconsistencies. These inconsistencies affect the understanding of what an Asset Register is in the Private and Public Sectors.
To make an Asset Register effective, it must contain enough information on each asset. This information ensures the asset can be effectively managed. Obviously, the information required for each asset will depend on the type of asset. The Asset Register by itself is not particularly useful to an organization. It must be kept up-to-date, and it must provide useful information to the organization.
Strength of Asset Management
Giving new momentum to Asset Management requires more than just a strengthened framework of incentives. It also needs a focus on service delivery. Organizations must have the capacity to deliver. This capacity will develop and mature in the longer term. This maturity will be due to Shareholder’s or National Treasury’s obvious focus on improving Corporate Governance. They also focus on enhancing Financial Management in companies and Local Government. In the short term, there is limited scope to increase skills in Asset Management across companies and local government. This limitation puts a premium on deploying existing skill sets most efficiently. In the Public Sector, as in the Private Sector, such skill is finite. We clearly need to bring in know-how from the private sector. This know-how will tackle the current weaknesses in Asset Management at companies and Local Government level.
Enquiries
If you seek further information or wish to delve deeper into this topic, please complete the contact form below and click submit. Kindly note that we will respond exclusively to valid inquiries or comments.