2.2.1 Typical strategy structure
The structure of each asset strategy should clearly reflect the key inputs, the analyses undertaken and the rationale used in the formulation of the strategy, including:
- the overall goal(s) and purpose of the strategy aligned with agency goals and corporate objectives (in turn driven by community needs and expectations and government policy)
- policies underpinning the strategic goals (particularly policies affecting road transport demand, such as land use policy, transport policy, industry policy, population and employment forecasts, etc.)
- the scope of the strategy (to clearly define and limit the application of the strategy to the key strategy areas and their related objectives)
- an outline of the data, assumptions, forecasting and any gap analyses undertaken, including any modelling, which underpins the rationale of the strategy
- defined key result areas (KRAs), targets and key performance indicators (KPIs) by which the implementation of the strategy may be monitored and outcomes assessed
- strategy management and implementation arrangements, which include implementation actions, priorities, timeframe and responsibilities.
KRAs and KPIs
It is important that KRAs identify the desired outcomes for the successful implementation of the strategy, and that KPIs be set which enable measurement and monitoring of the achievements of the strategy in those key areas.
A set of KPIs should be selected which enables assessment of the effectiveness of achievements relative to the outcomes sought, and the efficiency of the inputs used to achieve such outcomes. The selected indicators should be:
- relevant to the strategy objectives
- simple to compile and monitor
- based upon data of suitable quality normally collected by the road agency for asset management
- transparent and meaningful to stakeholders
- representative of the total asset
- sensitive to detectible changes in the asset and its use
- a catalyst for sound asset investment decisions and management practice.
A framework for consideration of the context and content of KRAs and examples of KPIs commonly used in road management is provided in Figure 2.6.
Figure 2.6 illustrates:
- The KRAs for the road system management strategy (RSMS) are the economic, social and environmental outcomes sought by the community. The KPIs for the RSMS are the measures of the aspects of road system performance which affect those outcomes (KRAs). The KPIs are derived in turn from data on the attributes of road system condition, capacity and use. The RSMS sets target for these attributes for the various parts of the road system.
- The RIS, the IPS and the RUMS guide the management of road system capacity, condition and use respectively in accordance with the target standards established in the RSMS.
- The KPIs for the outputs of the RIS, IPS and RUMS are the extent to which the respective target attributes of the road system are achieved (e.g. km of duplicated road).
- The KPIs for the efficiency of implementation of the RIS, IPS and RUMS are the extent to which the respective targets are achieved for a given level of resource input. (e.g., cost per km of duplication).
- The KPIs for the effectiveness of the RIS, IPS and RUMS are the extent to which implementation achieves outcomes relevant to the KRAs for the given level of resource input. (e.g. economic benefit‑cost ratio, BCR).