The Asset Management Journey - overview

Summary

The transcript outlines the challenges organizations face in managing assets, particularly when decisions are made reactively and in isolation. It discusses the importance of breaking down barriers between different teams, embracing collective decision-making, and aligning asset management with organizational goals. The journey from initial dysfunction to a more collaborative, optimal decision-making system is explored, emphasizing continuous improvement, leadership modeling, and data management. Ultimately, it highlights the need for a cultural shift in asset management to ensure long-term value and innovation, and invites businesses to explore resources and guidance from AM to navigate this journey.

Takeaways

• 😀 Asset management journeys involve both reactive decision-making and siloed efforts from various teams within an organization.
• 😀 Many organizations make asset-related decisions based on limited, isolated information, leading to inefficiencies and missed opportunities for collaboration.
• 😀 In many businesses, leadership is far removed from the day-to-day asset management operations, which creates a disconnect between strategic decisions and operational realities.
• 😀 Teams often work in silos with their own specialized knowledge and language, making it difficult to translate information across departments and achieve joined-up decisions.
• 😀 During crises, like asset failures, teams often react based on their specialized knowledge, but without a unified decision-making process, this can lead to poor outcomes and further issues.
• 😀 Energy for change in asset management comes from both bottom-up movements (pioneers) and top-down leadership (senior leaders).
• 😀 Achieving ISO 55000 certification is often seen as the starting point rather than the end of the asset management journey, as it provides a framework for aligning assets with organizational goals.
• 😀 While certification can drive initial change, cultural and systemic challenges, such as poor communication and outdated practices, may hinder sustained progress.
• 😀 Optimal asset management decisions align asset values with long-term organizational objectives, but these decisions are context-dependent and vary across industries.
• 😀 Successful asset management organizations emphasize continuous improvement, collaborative decision-making, and leadership that models the desired behaviors for collaboration.
• 😀 In a strong asset management culture, data is treated as a valuable asset, fostering an environment of transparency, continuous learning, and a focus on long-term sustainability and innovation.

Q & A

What is the main purpose of the asset management journey as described in the script?

The asset management journey is designed to guide organizations in improving how they make asset-related decisions. It aims to help organizations move from reactive, isolated decision-making to a more collaborative, system-wide approach.

What challenges do organizations face at the beginning of their asset management journey?

At the start, organizations often make decisions reactively and in isolation, with each department focusing on its own specialty (cost, risk, performance). This leads to fragmented decision-making and inefficiencies, with limited communication across teams.

How do leadership teams and operational teams interact in a typical organization at the start of the journey?

Leadership teams are often far removed from the reality of the assets, while operational teams (such as engineering, maintenance, and operations) are more connected to the day-to-day functioning of assets. This disconnect leads to decisions being made based on limited information.

What happens when an asset failure occurs in the early stages of asset management?

When an asset failure occurs, there’s a sense of pride among the teams that respond, but the decisions made in response can be overly reactive. Different teams (risk, engineering, maintenance) may have conflicting views on the root cause and response, leading to misaligned actions that exacerbate the problem.

Why do organizations often struggle to implement effective asset management practices?

Organizations struggle due to siloed thinking, limited data, unclear strategic objectives, and lack of integration between different teams. Additionally, there’s often a cultural resistance to change and a lack of proper systems to support collaborative decision-making.

What role does ISO 55000 play in the asset management journey?

ISO 55000 provides a framework for organizations to reconnect their assets with their business objectives. However, achieving ISO 55000 certification is just the beginning, as organizations still need to address systemic issues, improve decision-making processes, and foster a culture of continuous improvement.

What is the significance of cultural change in asset management?

Cultural change is essential because even with new systems and frameworks, if the culture doesn’t evolve, it can lead to the creation of new silos. A successful asset management culture requires collaboration, transparency, and alignment across teams.

How do organizations achieve optimal asset management decisions?

Optimal asset management decisions align the value of assets with the long-term objectives of the business. This involves considering all perspectives, including financial, operational, and risk-related factors, and ensuring that decisions are made in the context of the organization’s overall goals.

What characteristics do outstanding asset management organizations share?

Outstanding organizations have leaders who lead by example in collaboration, embed asset management as a continuous improvement process, and ensure everyone in the organization plays their part. They also treat information as a valuable asset and maintain a system of integrated decision-making.

How does information management contribute to successful asset management?

In successful asset management, information is treated as an asset. Teams collaborate to determine what data is necessary for decision-making and ensure it is accurately collected, maintained, and shared across the organization, improving the overall quality of decisions.