Organization-Wide Physical Asset Management. Dharmen Dhaliah
stuck with executing the plans and operationalizing them organization-wide. This means getting all the functional areas dealing with physical assets in one way or another to fully understand, endorse, and implement the asset management plans in their respective areas. As you can imagine, this is not an easy feat, because we are now dealing with the whole organization: the governance, the different functional areas, the people, the culture, etc.”
“I can see how difficult and challenging this will be,” Jerry concurs. “Without any asset management plan to implement at Mouroum Inc., I am already getting pushback. Pushback in even understanding and embracing the physical asset management philosophy.”
“I hear you,” Darren says. “No wonder why, in some industries and countries, physical asset management is now regulated. There are a few good reasons for taking such a stance. The first one is to shift the focus and priorities of many organizations to get them to start thinking seriously about physical asset management. This, in return, will help to clearly identify what their infrastructure needs are and facilitate a more sustainable funding plan. Regulation to operationalize physical asset management planning also helps achieve greater standardization and consistency and reinforces the use of asset management plans as a tool to make better decisions to address physical assets needs and challenges.”
“This is all great information,” Jerry says after listening with attention. “But where do I start with an asset management program in my organization and how? One of the first things I noticed is that people tend to think that maintenance is asset management, and some people were even questioning my job. It is hard for me to explain to them, and they are not even ready to embrace the physical asset management philosophy.”
“Well, the first thing you should start with is educating staff to spread awareness of physical asset management across the organization. There is so much documentation and various literature out there that is really informative. You can use those resources right away to help personnel from different functional areas understand the asset management philosophy. While doing this, I would also suggest you think about setting up a governance framework to launch and support your asset management initiative. Remember, alone you will not be able to meet the goals of an asset management philosophy,” Darren explains.
“What does that entail?” Jerry questions.
Darren chuckles and replies to Jerry: “That can be a lengthy conversation, and, unfortunately, I have to go. Can we continue our discussion sometime next week?”
“Absolutely,” Jerry responds. “You tell me when you’re available. In the mean-time, I will search the training/educational materials as well as governance frameworks. I agree there are many resources available on the internet, but I will need your guidance on how to use them.”
“That’s a good idea. But I would caution you that ‘how’ to use the information is not enough. You also need to understand ‘why’ to use those resources and ‘when.’ Picture it as a recipe with all the ingredients. There is a particular order and timing at which each and every ingredient is added. There is a specific reason for this.”
“Think about it, and I’ll see you next week,” he adds with a smile.
Darren gets into his car, takes a deep breath, and starts checking his phone for any missed calls, especially from Debbie. There are none. Darren and Debbie have been happily married for twenty-seven years. As in any couple’s life, there have been ups and downs. Most of the time the sources of conflicts have been due to Darren’s busy schedule at work and his other activities. For the last few years, Darren’s involvement in the triathlon and, just recently, his decision to take early retirement to pursue his academic dream have not eased the situation. He knows he has to give Debbie more of his time. Darren puts on one of his favorite tunes and drives away. He is feeling so tired and just wants to get home for some rest.
It is a beautiful Wednesday evening, and Darren drives into the parking lot of the coffee shop. He has just finished a busy day at work reviewing a few draft papers that his students have been working on. Darren knows that Jerry is desperate to talk to him. It’s been two weeks now since they last talked. He twice postponed Jerry’s meeting requests, and he thinks that it won’t be good to postpone a third time.
As he enters the coffee shop, he sees Jerry sitting at a table in the far corner next to a large window. He must have seen him when he drove in. Actually, maybe he did not notice him, as he seems to be deeply immersed in reading something on his laptop, and he has a stack of papers next to him.
“I see that you have been killing a few trees. Think about sustainability, my friend,” Darren says as he stands right in front of Jerry’s table. “So what have you found out, and how is Mouroum Inc. coping with asset management and its governance framework?” Darren asks.
Darren actually startled Jerry, as he suddenly looks up almost toppling his laptop.
“Good evening, sir,” Jerry greets him. Jerry has always been a very respectful and polite gentleman, and that is maybe why Darren likes him so much. Darren finds it very difficult to turn him down and not respond to his request for help, even though he is himself running around like a headless chicken.
Darren takes a seat at the table and puts his bag on the vacant chair next to him. Jerry orders two coffees and then starts providing Darren with an update on his progress.
“First of all,” he starts, “you were right in saying that there is a ton of information out there available on the internet. I can see that there is a broad range of asset management approaches and methodologies, varying in complexity and sophistication, that are in use in different industries and organizations.”
“Yes,” Darren nods. “However, while there are existing pockets of best practice, it is recognized that a more consistent approach to the management of physical assets will yield significant benefits. Therefore, organizations are recommended to adopt a corporate approach to the physical asset management framework spanning across the whole organization.”
“What do you mean by that?” Jerry asked. “I mean by a ‘corporate approach’?”
“What I mean,” Darren starts to explain, “is that the approach must be blessed, endorsed, and championed from the top to the whole organization. It does not matter the size and complexity of the organization, but if organizations recognize and agree for the need of an asset management program, then the commitment has to come from the top down. No matter if it is called corporate or not, but the commitment and buy-in must be there. Otherwise, it will be another of those initiatives that fizzle out after some time without any accomplishments. The ultimate aim is to develop and implement consistent asset management approaches across all functions and departments of the organization.”
“This is exactly the challenge I am facing in my job at this moment. I am having a hard time getting our asset management program started, and there is no buy-in,” Jerry exclaims.
Darren drinks a sip of his hot coffee and says: “I understand what you are going through, and I would advise you take a well-calculated approach as you are about to take your organization on a long transformational journey. You’ll definitely want to get off to a good start.”
Step 1: Develop an Asset Management Governance Framework
“The first step I would recommend to you is to start developing an asset management governance framework. Too many times we see organizations diving into projects or programs focusing on short-term gains only. They do not bother to have a framework or structure in place to sustain the long-term outcomes of what was started. The result is that either the project or program does not deliver expected outcomes, or it just dwindles over time and loses momentum or interest. If you want to build a long-lasting physical