Strategic estate management
Policies, governance arrangements and documents to help you manage your estate to meet your educational aims and align with your other strategies.
Having a strategic approach to estate management helps you manage the school’s land and buildings effectively. This keeps a school’s estate safe and well maintained, as well as supports educational needs and goals. It ensures you have the right plans, processes and documents in place, including:
- an estate vision
- an estate strategy
- an asset management plan
- a regular strategic review
It’s most effective when it:
- involves the whole organisation
- is co-ordinated and integrated with your business planning processes
Executive leaders should be involved in strategic estate management - it is not solely for the property manager or school business professional.
You may also have obligations for the upkeep and maintenance of the estate to meet the requirements of your basis of occupation and funding agreement. In some circumstances this will mean liaising with the relevant landowner and seeking appropriate consents.
Example
Schools supported by a charitable foundation must meet the foundation’s objectives. This includes schools with a religious character. The objectives could be reflected in the:
- trust deed
- articles of association in an academy
- Instrument of Government in a maintained school
You should manage the estate strategically whatever your organisation type or size of the estate. This includes:
- single stand-alone schools, including single-academy trusts (SATs)
- multi-academy trusts (MATs)
- local authorities
- schools with a religious character
Organisations with responsibility for managing school estates, such as local authorities, academy trusts and governing bodies, may also be referred to as responsible bodies.
Strategic estate management will help you to:
- make decisions supported by evidence
- use your resources efficiently
- maximise the estate’s value
An estate includes land and buildings. Many factors influence how you manage the estate, including:
- the size, location, age and condition of buildings and land in the estate
- land ownership, tenure and constraints
- how effectively the current facilities meet the specific educational needs of the school
- the type, size and nature of the body responsible for the school
- available funding and the future aspirations for the estate
- area based considerations including the need for places or spare capacity in the system
- the terms of your funding arrangements
How you manage your estate depends on these factors and how you are governed.
Example
In a larger MAT, you need to take a strategic and long-term view of investment and expenditure across the whole estate. However, each school is different so you should also allow for local autonomy in the way the strategy is delivered.
The document information you should aim to have (ODT, 871KB) gives an overview of the documents and information you need and how they can help you manage your estate strategically.
You should understand how the estate can support your educational goals and vision. This will help you be aware of:
- any shortfalls or surplus provision in your schools and in the wider area - assessed through an evidence-based identification of need
- what you need to spend on the estate to meet your needs - reflecting an assessment of condition and what is needed to make it safe
- what changes you need to make to the estate, and when - reflecting an assessment of any works required and how these need to be prioritised
You should also consider other relevant plans and policies. For example, your plans for sustainability or digital technology may have implications for your estate. It is important that your strategic estate documents are aligned with other documents, such as your climate action plan and digital technology strategy.
Find out more about digital technology and improving your estate’s sustainability.
Schools with a religious character and those supported by a charitable foundation must make sure that the school meets:
- the requirements of their foundation
- their obligations to the trustees of the school, including in relation to the maintenance and upkeep of the land and buildings, seeking appropriate consents and complying with their trust deed
Good strategic estate management has financial and non-financial benefits. It can help your school be:
- safe - poorly maintained schools are likely to be more hazardous
- successful - well-designed facilities can be linked to levels of attainment
- financially sustainable - an effectively managed estate improves the efficiency of estate expenditure and minimises surplus space and revenue costs, optimises revenue generation, prioritises investment and maintains asset value
- operationally efficient - planned repairs and maintenance can minimise emergency works, prevent failures and loss of facilities, and save money
- appealing - a well-maintained school helps create a positive impression, and attracts pupils and staff
Poor estate management can lead to:
- inefficient use of resources and poor investment decisions
- risks to the safety of building users
- teaching areas being taken out of service
- disruption to the day-to-day running of your school
- whole or part closure of the school
- poor morale in staff and students
- problems with staff retention and recruitment and pupil numbers
Benefits of strategic estate management (PDF, 643KB) contains an overview of advantages with some examples.
Your estate vision should be a high-level statement aligned with your educational vision. It should take account of your educational and local community needs. It provides the direction for the estate and sets out what needs to happen in the estate in the medium to long term.
It should make sure that:
- the estate can meet your organisation’s current and future education needs
- school places reflect demand and the need for choice and diversity in your area
The importance of the estate vision
The estate vision will give clear direction to estate strategy and help inform decision-making.
Without it there’s a risk that decisions:
- are made in isolation
- do not support the school’s (or the trustees of the school’s) educational vision
- will waste resources
Who should produce the estate vision
An executive leader responsible for the estate should produce the vision. The process is not an issue just for the property manager or school business professional. They should work with relevant stakeholders, including:
- the local authority
- other education providers in the area
- community groups
- the relevant landowner
The estate vision should be formally approved by the board as part of business planning. In schools with a religious character, this will be the trustees of the school and the relevant diocese or responsible body.
What should be in an estate vision
The estate vision does not need to be complex or lengthy.
There is no prescribed format. It should meet your needs and be written in a way that:
- fits with your other strategic documents
- meets the requirements of the school and its organisation
An estate vision should show how the buildings and resourcing elements of the educational vision will be achieved through the estate.
Example
If your educational vision aspires to:
- increase places to address rising demand within the local area in the next 3 years
- ensure the safety and security of all school users and visitors now and in the future
- develop a specialisation such as sports provision in a specified time period
Your estate vision may be to make sure you provide:
- extra space to meet the number of new places needed locally in the next 3 years
- buildings that are safe, fit for purpose, sustainable and resilient
- the necessary space and facilities to develop the required specialism
In schools supported by a charitable trust, the estate vision must align with the trustees’ vision. In schools with a religious character, the estate vision must also align with the vision of the diocesan bishop or diocesan board of education.
Your estate vision should not detail how the vision is achieved. That should be in the estate strategy.
You should review your estate vision alongside your educational vision to make sure it reflects any changes in educational priorities.
The information you should aim to have (ODT, 871KB) gives an overview of the documents and information you need to manage your estate strategically.
An estate strategy sets out what you need to do with the estate to achieve the estate vision. It’s a 3 to 5 year medium to long term strategy designed to:
- help you understand what you need from your estate
- set out potential options to achieve your needs
- identify issues for further consideration
- provide a framework for property-related decision-making
- set out specific outcomes and timescales
You might identify a range of potential options to achieve the strategic aims. The estate strategy does not analyse the options in detail, but you must make sure that the options you choose are realistic and achievable. Each option should be considered in detail at a later stage, through a formal appraisal process.
Your estate strategy should align with your climate action plan and digital technology strategy.
The importance of an estate strategy
Your estate strategy should help you co-ordinate all your property-related activities and make sure that they align with your estate vision. This will focus the short-term and day-to-day activities on what you are trying to achieve.
Make sure you identify, assess and address any impact of property-related activities. Individual solutions and projects are often linked. Your estate strategy should help you align projects and make the most of your resources.
You should record any risks that may arise if works are not strategically planned. This will allow you to manage and mitigate risks, and prioritise work.
Who should produce the estate strategy
An executive leader responsible for the estate should be responsible for producing your estate strategy. The process is not an issue just for the property manager or school business professional. It must align with the educational strategy.
They will need input from:
- members of the executive leadership team
- charity trustees
- trustees of the school
- school business professionals or specialist professional advisers
- local authorities
- diocese or other religious authority or body
- other educational providers
- community groups
If you are considering major or complex developments, you may want to ask an external expert to help you.
Example
If you are not clear about:
- land tenure, you may need legal advice
- whether you can make changes to the building, you may need architectural or structural advice
- how to phase or co-ordinate different projects, you may need strategic planning advice
Consider asking an external expert to help you.
The estate strategy should be approved at board level (and by trustees of the school) as part of business planning.
This encourages everyone to be involved in its production and makes sure that the board takes responsibility for the estate strategy.
How to produce an estate strategy
When producing your estate strategy, you should think about all options for achieving the estate vision and consider how realistic each option is.
Financial issues
- what is a realistic budget?
- what are the financial constraints?
- is the budget time-limited?
- are there separate funding streams that can be brought together to support common goals?
Educational issues
- will there be an impact on existing school operations?
- will you lose existing facilities?
- will changes to layout cause problems?
- do the changes reflect the current and future needs of the curriculum?
Legal and land title issues
- is land ownership clear?
- are there any restrictions to the title?
- is any additional land required?
- what approvals or consents are needed?
Community expectations
- will the local community benefit?
- will they support your plans?
- are their expectations clearly articulated?
- do your plans support wider educational need in the area ?
Once produced, you should test your strategy and preferred options to make sure it’s practical, affordable and effective.
Discard any options that cannot be realistically achieved. You should also make sure the estate strategy is linked to the school’s financial planning and available budgets.
Review your strategy against your educational vision once a year. Make sure it reflects any changes in priorities.
What should be in an estate strategy
Your estate strategy should describe what the estate might look like in the future. It should not be too detailed or prescriptive about how it will be achieved.
Your estate strategy should set out:
- your aims
- how you could achieve your aims (this could include a number of options)
- further considerations needed to help you shortlist your options
Example
If your estate vision is:
“Provide accommodation to meet the number of new places needed locally in the next 3 years.”
Your estate strategy might include:
- aim: review the capacity of the existing estate to assess what additional space you need
- action: liaise with the local authority to understand the medium to longer-term need for places
- action: consider how you can contribute to addressing demand and identify options to address any shortfall in the existing estate
- options: change the internal layout, extend an existing building, build a new building, use a modular build option
- considerations: what affect the changes might have on other parts of the school, whether you need to get approval to make changes (for example legal, planning or from trustees of the school), if there is sufficient land in the estate
You should be willing to assess any options recorded in more detail at a later stage, so you need to make sure you are realistic about what you can achieve.
The information you should aim to have (ODT, 871KB) will help you manage your estate strategically.
An asset management plan is a short to medium term plan. It should detail and prioritise what actions you need to take to fulfil your medium to long term estate strategy.
A good asset management plan will:
- set out how building work and maintenance will be prioritised
- identify all policies and procedures related to the estate
- describe the decision-making arrangements, reporting structures and responsibilities
- make sure that activities have a specific purpose - for example, making sure that all operational activities are undertaken to achieve a known outcome and do not waste resources
- ensure effective co-ordination and management of all estates activities
- bring together all land and buildings related data
It should reference all land and buildings (assets) in the estate.
The importance of an asset management plan
An asset management plan helps you:
- make decisions based on an understanding of the current condition and performance of the estate
- protect the occupants of the school
- reduce and prioritise maintenance need
- control running costs
- make sure unplanned urgent works are responded to effectively
- efficiently source and procure property and construction related services
- provide a good fit between education requirements and the property from which it’s provided
- provide good accommodation for all the users of the school
- make sure appropriate health and safety management arrangements are put in place for project delivery
- optimise the use of properties in the estate
Your asset management plan should help you balance what you:
- want to achieve in your estate vision
- need to achieve to meet statutory and educational objectives
It should make sure you prioritise works to ensure your estate is safe for all users.
You will always have competing demands on your resources. Your asset management plan is an important tool to make sure you use them as efficiently as possible. Understanding what works are required will help you identify what resources you need to provide in a planned and structured estate management service.
Who should produce an asset management plan
Your asset management plan should be produced by an executive leader. They should be responsible for the estate and could be a school business or property professional.
They will need information and support to produce the asset management plan. It’s their responsibility to collect input, as required, from those with organisational or managerial responsibilities such as:
- the management team
- charity trustees
- trustees of the school
- diocese or other religious authority or body
- those involved in operational activities
- strategic and technical property specialists
You should consider who and how many people you involve. You might also include a range of other stakeholders, such as:
- finance officers
- data managers
- school business professionals
- teaching and support staff
- academy trust boards
- board of governors
- local authority children’s services
- landlord representatives
- dioceses or diocesan boards
- community groups and parents
Who you involve should reflect the size and complexity of the estate, your estate vision and your business planning processes. Those involved could contribute to the asset management plan by having:
- an understanding of your objectives and goals
- a good working knowledge of your day-to-day property operations and issues
The executive leader must manage the expectations of stakeholders and ensure the asset management plan is produced in a transparent way.
The production of all or parts of the asset management plan may be delegated to those with operational property expertise. It is the responsibility of the executive leader to co-ordinate all the input.
How to produce an asset management plan
You should start planning for the production of your asset management plan as soon as you can, even if you’re waiting for further information.
Review your asset management plan when you review your estate strategy each year, as it may need updating to reflect strategic changes.
What to consider
Your asset management plan should be informed and shaped by a number of factors, including:
- your organisation - such as governance, budgeting, property performance and data management and procurement policies
- safety - such as health and safety legislation and buildings related statutory compliance
- land and buildings issues - more technical factors such as condition, maintenance, suitability, sufficiency and tenure
You should work with your business resource planning colleagues when you take these factors into consideration.
You need to understand:
- what information and data is held about the land and buildings in the estate
- how performance of the estate is measured and managed
- what the priorities are over the period of the asset management plan
- what resources are available
- who is responsible for the different property functions and how issues are reported
- your governance arrangements and how decisions are made on estate matters
- your policies for managing the land and buildings in the estate
Maintenance
Maintenance of the estate is an important element of your asset management plan. You should aim to plan as much maintenance work as you can, rather than carrying out works reactively. It is good practice to allocate planned preventative maintenance and reactive maintenance budgets in the region of a 70:30 ratio (Chartered Institute of Public Finance and Accountancy (CIPFA)).
Maintaining your buildings contains more information.
What should be in an asset management plan
There is not a standard asset management plan suitable for all estates. The level of detail and complexity in your asset management plan depends on many factors including:
- the size and make-up of the estate
- the condition of the estate
- what you need to do to achieve your estate strategy
- what you need to do to make the estate safe
- your governance arrangements
Example
For small organisations or those with a single site, your asset management plan could be set out within a single document and make reference to other existing material.
For larger organisations, or MATs with multiple sites, your asset management plan could be split into separate documents and make reference to other existing material.
Your asset management plan does not need to incorporate all estates related material in a single document. Some policies and procedures may exist and be held within organisational governance arrangements. What is important is that you take account of these policies and procedures and reference them when you produce your asset management plan.
Whether your asset management plan is a single document or a set of documents, you may want to group the content into sections.
Introduction and estate strategy
This should set out the:
- purpose and scope of the asset management plan
- estate vision and objectives
- estate strategy
Organisational framework
This should set out or reference:
- an overview of your approach to strategic and operational estate management
- your governance arrangements
- the key roles and responsibilities for estate matters
- the policy framework under which the land and buildings are used and managed
Estate management policies and procedures
This should set out or reference the:
- decision-making processes for estate matters
- estates management policies
- framework to manage the performance of the estate
- relevant operational procedures
The estate
This should set out:
- a summary of all the land and buildings (assets) in the estate
- what is required of the estate (and possibly individual assets)
- how the estate (and possibly individual assets) is performing against key performance indicators
- if there are any performance shortfalls and the reasons for this
- what works or projects are priorities
- what resources are available
- a prioritised action plan with estimated resource implications
Estate management implementation
This should set out:
- how the action plan is to be achieved
- the arrangements for monitoring and reviewing progress
You could co-ordinate works onto a single structured plan or estate development plan to show how the whole estate will be developed over a set period of time. This could be beyond the timescale of the current asset management plan. It should show how the programme of works contributes to your longer-term estate vision, within the same timescale. You may not need an estate development plan if you do not have a lot of works to carry out.
Appendices or supporting documents
This should include or reference:
- a detailed list of all the land and buildings in the estate
- detailed property performance information for each asset
- any operational guides and handbooks that you may use to manage the estate
- any procedural templates that you may use to manage the estate
Strategic review
A strategic review is a way to help you understand the existing estate and identify options for its future.
It’s a structured process through which you can assess:
- how well the estate is performing
- whether it’s meeting your needs
It should help you explore options for change and develop your asset management plan.
You may not need to undertake a strategic review if the estate is small or you have a clear direction for its future.
The importance of a strategic review
Your educational and organisational priorities and needs may change over time. You need to understand how your estate helps you meet those needs now and in the future.
A strategic review provides you with a complete picture of the estate. It will help you make informed decisions about the estate.
The estate may comprise a number of buildings and sites. You can undertake a review of:
- the whole estate at the same time
- groups of assets in a particular area
You could phase your reviews so that you review the whole estate over a period of time.
Undertaking a review helps:
- make sure the estate is actively used to deliver efficiencies
- make savings or generate income
- identify which assets are costly and not fit for purpose
Without an understanding of the whole estate, there is a risk that:
- decisions on the future of individual assets are taken in isolation
- solutions may not deliver best value
- you may miss opportunities to deliver efficiencies
Who should undertake a strategic review
A strategic review should be led by an executive leader. They should be responsible for the estate. They will need input and support to carry out the review effectively. It’s their responsibility to get input as required. The process is not an issue just for the property manager or school business professional.
You need to draw on a lot of data and information about the estate and how it’s used. This might involve many people. You should set out what is expected from everyone.
You should have clear terms of reference for the review, including:
- reference to the trustees of the school and diocese
- clear reporting lines
It’s important that the outcome of the review is formally reported at a senior level.
What should be in a strategic review
A strategic review should take account of both financial and non-financial issues. These should be combined with technical property issues to provide a wide understanding and inform decision-making.
You should set out the criteria for how you will assess the estate’s performance. This should be agreed at the outset and applied consistently across the whole estate.
For each asset, you could consider:
- whether it is sufficient for its current purpose and for future needs (sufficiency)
- whether it is fit for its current purpose (suitability)
- whether it is fit for another purpose
- how much it costs to run
- what works will be needed in the future to maintain it, and how much will this cost
- what works are needed to improve it and how much will this cost
- what restrictions there are that affect what you can do, such as tenure or land ownership issues
- whether there are any critical timelines that affect when you need to do things, such as the end of a lease or a date for renewal
- whether there are options for rationalisation or working with other organisations
In assessing performance against your selected criteria, you should take account of relevant guidance and benchmarks. This should include understanding space requirements and how you use your space.
You should also understand the need for long-term provision of school places in your area and consider these needs in your review. This should include identifying and considering how to meet future needs using the estate. You could consider using modular buildings to meet these needs.
Find out more about understanding your estate and its performance.
You should ensure that the review is sufficiently challenging. This could involve identifying sensitive options.
The findings of the review should be reported in accordance with the agreed terms of reference.
At the end of the review, you should make clear recommendations about what to do with the estate.
You could use the review process to categorise each asset in the estate. This will help you prioritise your resources and avoid waste.
The categories you use should meet your needs.
Example
Retention
Where the asset is assessed as being fit for purpose now and for the foreseeable future. There will be ongoing running and maintenance costs.
Improvement and investment
Where the asset is assessed as being worthy of investment to make sure it will be fit for purpose now and for the foreseeable future. There will be an initial investment to bring it up to the required standard and ongoing running and maintenance costs.
Alternative use
Where the asset is assessed as not fit for its current purpose but is fit for another purpose. There may be costs associated with the adaptation or conversion to the alternative use and ongoing running and maintenance costs.
Disposal
Where the asset is assessed as not fit for purpose and not worthy of investment. There may be a capital receipt and costs associated with a disposal. After disposal, there will be savings in running costs and maintenance costs. There may be restrictions or consents required before any disposal can take place, particularly in schools with a religious character.
The outcome of the review will inform your asset management plan and maintenance programme.