Strategic Asset Management

Approval Date
28 July 2022
Approved By
Chief Executive
Next Review
30 July 2024
Deputy Chief Executive: Corporate Services
Baldrige Criteria
Workforce focus

This policy is about the management of strategic assets and involves investment in planning acquisition, management, construction, maintenance, renewal, and disposal of infrastructure assets (e.g., land and buildings, site improvements, information technology hardware, plant, specialist teaching equipment, and motor vehicles) across Otago Polytechnic Limited (Ltd) in order to serve its primary purpose: to deliver high-quality programmes of learning to learners.

 To this end, the building, infrastructure, and other major assets should support the achievement of Otago Polytechnic Ltd’s Vision and Strategic Directions effectively, and at the lowest whole-of-life cost.

At an organisational-wide level this policy will:

  1. Provide for a long-term vision for Otago Polytechnic Limited’s practice of strategic asset management.
  2. Mandate the responsibilities of, and generate useful dialogue between, asset users and asset
  3. Provide for the capital works investment determined by whole of life considerations (20 - 30-year cycle) e., CAPEX versus OPEX;
  4. Allow for “ease of maintenance” factors to be considered in the design
  5. Align, support, and inform the rebuild programmes.

Education and Training Act 2020


Requirements monitored by:

Office of the Auditor General, Tertiary Education Commission

International Infrastructure Management Manual (IIMM)


ISO 55000

TEC Capital Asset Management Standard

  1. This Policy applies to strategic assets such as buildings, infrastructure, information technology (IT) and teaching assets owned or leased by Otago Polytechnic Ltd. 
  1. For an overview of how the Strategic Asset Management (SAM) processes, planning and implementation are managed at Otago Polytechnic Ltd refer to diagrams in Appendix 1, and Appendix 2 and refer to Strategic Asset Management Guidelines for definitions and other best practice procedures. 
  1. Otago Polytechnic Ltd will ensure that at all times there is:
    • A current SSAM Plan in place, reviewed annually and approved by the Executive Leadership Team and/or Otago Polytechnic Ltd Board.
    • A current Level of Service (LoS) schedule, approved by Executive Leadership Team.
    • An annual audit of Otago Polytechnic Ltd’s asset management - CAMS audit. Every second (2nd) year this will be an external audit.
    • An Asset Management Implementation Plan incorporating the recommendations of the CAMS external audit with appropriate performance measures. This will ensure the continuous improvement of Asset Management practices.
    • Current Campus Plans for the Dunedin, Cromwell, and Auckland (OPAIC Ltd.) campuses; as well as a Maintenance Plan; and that these are aligned with the principles and objectives of the SAM Plan and LoS and reviewed annually. 
  1. The SAM Plan provides the context, rationale and expectations for the Dunedin, Cromwell, Auckland, Maintenance Plans, and other asset planning documents as well as all Business Case planning for the procurement of new buildings and major capital The principle elements that inform Otago Polytechnic Ltd’s SAM Plan are:
    • Asset management as an essential part of good business planning.
    • Effective asset management as an organisation-wide approach.
    • LoS that match client/business expectations and ability to resource these.
    • Managing risk as an essential part of managing Otago Polytechnic Ltd assets.
    • Planning that provides financial forecasts and work effort schedules to both underpin short-term budgets and ensure integration with the required long- term plans.
    • Otago Polytechnic Ltd’s asset management principles are applied to the design of all capital works. 
  1. The Maintenance Plan is informed by the asset life-cycle reporting, in order to maintain assets; and the LoS at the lowest long-term cost and is reviewed annually. 
  1. Otago Polytechnic Ltd’s Asset Management Planning Group (AMPG) will meet at least four (4) times per year and guide and monitor the Asset Management Implementation of this policy. 
  1. The AMPG will focus on planning – not operations - and guide the Asset Management Implementation Plan (AMIP) in order to achieve the performance measures defined in it and the improvement targets prioritised by the CAMS audits.

Appendices (refer below)

  • Appendix Otago Polytechnic Strategic Asset Management (SAM) Diagram.
  • Appendix 2. Otago Polytechnic Ltd Asset Management Planning and Implementation
  • Appendix 3. Strategic Asset Management


Asset Management (Operational - Acquisition and Disposal) policy

Delegations from the Board to the Chief Executive and Authorities and Sub Delegations from Chief Executive policy

Procurement and Purchasing Te Pūkenga Aligned Policy

Risk Management policy 


The following corporate documents are available on request from the Deputy Chief Executive: Corporate Service

  • Strategic Asset Management Plan (SAM Plan)
  • Levels of Service (LoS)
  • Capital Asset Management Audit (CAMS) Audit (undertaken annually; external audit every other year)
  • Asset Management Implementation Plan (AMIP).






Appendix 1: Otago Polytechnic Limited Strategic Asset Management (SAM) Diagram

Strategic Asset Management Diagram Appendix 1


Otago Polytechnic Limited Strategic Asset Management planning processes results in:

  • Assets and facilities that direct available funds to support Otago Polytechnic Ltd’s Vision
  • Cost effective facilities that conserve valuable and non-renewable resources.
  • Acquisition of fit for purpose assets and asset maintenance and development that will ensure on-going fitness for purpose for learners and staff.
  • Assets acquired to accommodate long-term sustainable demand rather than to meet short-term imperatives.
  • Retirement or disposal of ageing facilities that have become costly to maintain and less supportive of the Mission.
  • Exit non-viable leased premises or land that inhibits OP’s long-term planning for the facilities required to deliver Otago Polytechnic Ltd’s Strategic Directions and Vision.


Appendix 2: Otago Polytechnic Limited Asset Management Planning and Implementation Diagram

Asset Management and Planning Implementation Diagram

 Appendix 3. Strategic Asset Management (SAM) Guideline

In relation to the Strategic Asset Management policy, the following guideline procedures should be followed.

 In managing strategic assets Otago Polytechnic Ltd will adhere to the following procedures:

  1. Plan, develop, maintain, and manage infrastructure assets at defined levels to meet the challenges of the business as outlined in the Vision, Goals and Strategic Directions of Otago Polytechnic Ltd.
  2. Monitor standards, especially the Levels of Service (LoS) to ensure that they meet/support the agreed goals and objectives.
  3. Apply informed best practice i.e., Investment Logic Mapping (ILM) & Better Business Case (BBC) model decision-making principles around all strategising, planning, and developing business cases for infrastructure decisions and procurement.
  4. Develop and maintain asset inventories of its entire infrastructure at sufficient detail to enable for achievement of a minimum of Intermediate rating or higher on the Tertiary Education Commission’s (TEC) Capital Asset Management maturity rating scale, (SPM Assets database).
  5. Establish infrastructure replacement strategies through the use of the full whole of life (life cycle) costing principles.
  6. Plan financially for the appropriate level of maintenance of assets to deliver the defined LoS. This will ensure that when the Strategic Asset Management (SAM) Plan and budgets are reviewed annually, the funding and LoS will be aligned.
  7. Plan for and provide stable long-term funding to replace and/or renew and/or decommission infrastructure assets. This should be done in conjunction with reviewing the Capital Intentions Schedule included in the SAM Plan to include building, infrastructure, IT, and major teaching assets with funding allocated according to lifecycle analysis and whole-of-life considerations.
  8. Consider and incorporate asset management requirements and achievements in its other corporate plans as appropriate.
  9. Demonstrate accountability and responsibility in its infrastructure management through regular reporting on the status and performance of work related to the implementation of this asset management policy.
  10. Provide accurate life-cycle data modelling (SPM Assets) to inform the Otago Polytechnic Ltd, Board, Executive Leadership Team, and Head of College decision-making for procurement of assets.


Strategic Asset

Management (SAM)

Managing Otago Polytechnic Ltd’s assets to deliver the required LoS the objective being to meet current and future demand at the lowest whole-of-life cost.

Infrastructure Asset

All assets classified for accounting purposes as Property, Plant, and Equipment, which are owned or leased by Otago Polytechnic Ltd. This includes land and buildings, site improvements, information technology hardware, plant, teaching equipment, and motor vehicles.

Capital Asset

capital asset is a significant asset i.e., land or a building that is expected to generate value over a long period of time. Capital assets form the productive base of Otago Polytechnic Ltd. Examples of capital assets are buildings; and leasehold improvements.


An item of value that is required by Otago Polytechnic Ltd to achieve its vision and goals. Typically, these items will be long-lived (>5 years) and require ongoing maintenance and management to perform the service required at minimum cost and risk. Assets may be physical but can include software and services where appropriate.

Asset Manager

A person responsible for planning, procurement, or an asset’s continuing performance over its life.

Asset Management


Management of assets - this includes strategic/decision making, planning/procurement and facilities/property management levels.

Asset User (AU)

The person/s or group/s that utilise the asset to achieve the organisations goals and achieving Otago Polytechnic Ltd’s business of delivering effective and quality education to learnerss.

Key Information

Contained in Otago Polytechnic Ltd’s AM database (SPM Assets) this is an item of value that is required by Otago Polytechnic Ltd to achieve its vision and goals. These are generally assets valued at $2,000>.

Assets are also documented in the Finance Asset Register. Refer to the Asset Management (Operational – Acquisition and Disposal policy).

Strategic Asset Management Plan

 (SAM Plan)

A long-term, overarching plan on how best to develop the buildings, facilities, and natural environment to meet the emerging needs of Otago Polytechnic Ltd. Otago Polytechnic Ltd’s SAM Plan:

·         Provides advice on the LoS required to deliver Otago Polytechnic Ltd’s Vision and Strategy.

·         Determines the current performance of Otago Polytechnic Ltd’s estate against those objectives, identifying the performance gap.

·         Develops prioritised asset strategies that will close the performance gap.

·         Translates Otago Polytechnic Ltd’s strategies into appropriate space management, capital investment, maintenance, and surplus asset plans.

·         Develops efficient and effective service delivery approaches for implementation of the Campus, maintenance, and other plans.

Levels of Service (LOS)

This is the LoS document approved by the Executive Leadership Team and by the Otago Polytechnic Ltd Board as an Appendix to the SAM Plan.

It documents the agreement between the AM and AU as to what performance the asset must deliver to meet the AU’s needs. Otago Polytechnic Ltd LoS covers timing and reliability, aesthetic, functional, and climatic requirements. All LoS are aligned to Otago Polytechnic Ltd’s strategic goals and priorities.


The useful life of an asset from initial construction or purchase through to its disposal. Life-cycle data also defines what is required over the operational life to maintain the asset’s condition and ability to deliver the required LoS.

Capital Asset Management

Systems (CAMS)

Refers to the CAMS audit mandated by the TEC which is required to be undertaken by an external auditor once every two (2) years.

Asset Management Implementation Plan


This is a performance-based asset management implementation plan developed from the set of priorities (high, medium, and low), identified by the CAMS external audit (every second (2nd) year), of Otago Polytechnic Ltd’s asset management practices. The AMIP guides the implementation of best practice asset management at Otago Polytechnic Ltd through the use of identified measures and targets.

Best Practice Critical Success Factors

The major benefits of implementing the asset management strategies and the AMIP will be:

·       Better integration of information platforms – information more easily available, far less time spent integrating data from disparate sources.

·       Better decisions, coherent support from relevant information platforms/easy availability of information to base decisions on. As Otago Polytechnic Ltd’s AM capability grows, the gains in optimising asset costs will also grow, with:

·       Lower maintenance costs due to minimising the reactive maintenance aspects.

·       Maintenance activities being more productive as they are planned and scheduled together.

·       Better purchasing power due to higher volumes of purchases of a more restricted asset supplier list.

·       Lower training costs due to the consistency of facilities and equipment (and software) in use and the widely distributed knowledge within Otago Polytechnic Ltd.

 The following six (6) critical success factors underpin the implementation of the proposed strategies:

·       Asset and inventory data integrity. The integrity of asset information will need to be better than ninety-two percent (92%), whilst the inventory accuracy needs to be better than ninety-eight percent (98%).

·       Core processes are followed ninety-five percent (95%) of the time for all the major asset transaction types (addition, maintenance, re-purposing, and disposal).

·       Asset management work schedules are carried out at least ninety percent (90%) of the time.

·       The maintenance spend (excluding renewal/capital spend) is better than eighty percent (80%) planned; twenty percent (20%) reactive.

·       Service Level Agreements (SLA) exist for all major client groups.  The content of these reflects the LoS at an organisational-wide level.