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Three Ways to Improve ROI Through Asset Management

ROI Asset ManagementOver the last 20 years, discussions on asset management have moved from fix-as-fail to to the introduction of ISO 55 000 and the acknowledgement that asset management is a generator of value. Modern asset management recognises that our assets have inherent organisational value, they impact organisational performance and they influence organisational risk. But convincing the power brokers of the organisation that this is the case can be a real challenge.

As a member of the asset management organisation, you can demonstrate that you bring value to the organisation as a whole. Even if you work for an asset management organisation that is far removed from the corporate structure of your company, you can still create a movement to influence the organisation to acknowledge asset management as a generator of value.

It’s not rocket science, but it is a multi-year effort. And you have to have some intestinal fortitude to approach it. But it’s not impossible. It’s a commitment to continuous improvement, even if you’re only looking to improve against your internal benchmarks.

In my session at Mainstream Conference 2016, I outlined three ways you can help your organization to see the value of asset management and therefore improve ROI through asset management. Here they are:

1. Align Asset Management Within the Organisation

Make sure you focus your energies for alignment on these things:

  • Selecting a value proposition for expressing ROI- whether it’s profit oriented or service oriented doesn’t matter, as long as it’s important to the people you’re selling the value to.
  • Establishing KPIs that support a strategic business plan: The outcome oriented KPIs are the ones you really want to get to. Yes, they are a little more complex but they’re the ones that really show some important bottom line improvement. Make sure you select a wide variety of KPIs as it tells people about your business in a more holistic way.
  • Plan-Do-Check-Act: This is a way to consistently apply change to an organisation, and test that change to make sure it is consistent and reliable. Think of it like a scientific approach: You want to make sure that everything you’re doing can be pinpointed back to one change at a time, go through the cycle and then make one change again.

 

2. Get People Involved

This is the most important and probably the easiest thing you can do to sell the value of asset management. You need to chat people up. Talk to people inside and outside your asset management team, as well as members of the C-Suite. But make sure you have very refined metrics and reports when approaching the C-Suite so you are giving them meaningful to them based on their position in the organisation.

Your goal is to reach people and your mantra in reaching people should always be “why should they care?”

Take every opportunity to talk to people until they understand 100%:

  • Who does what
  • What will happen if
  • Where others can help
  • How to make things better
  • Why things matter

 

3. Focus Limited Resources for Maximum Results

Remember that technology is an enabler. It’s your friend. Technology really removes routine and time consuming activities from staff to allow them to focus on things that require their individual expertise.

Whether you choose technologies like building management systems, diagnostic tools with advanced technologies, or building information management (BIM), all these things can help you.

One of the latest technologies that is being put to use is Building Information Management (BIM) which improves construction as well as operation and maintenance. It delivers an organised and accurate model of both designs for construction and built facilities. Immediate benefits for construction have shown 10% savings of contract value of clash protection (ie making sure you know where things are and you don’t have to remove something in order to build what you want). And up to 7% reduction in project time, so for every 16 months of construction that means you’re taking 1 month off the schedule.

There are certainly some innovative technologies emerging that make it easier to gain maximum results with limited resources. But remember that this is only half the picture, it’s an enabler to help you achieve ROI.

 

To hear more of Nancy’s story, download a recording of her full session from Mainstream Conference 2016 “Improving ROI Through Asset Management“.

 

About the speaker

Nancy JohnsonNancy Johnson was the first female “Maintenance Man” at The Port Authority of New York and New Jersey, rising through supervisory positions in maintenance, operations and management. She is recognized for leading initiatives that improved the image and position of the busiest US airport system, regional marine terminals and ports and the World Trade Center. Her programs have reduced cost and risk, increased external funding, improved cash flow, and enhanced customer experience, including the EAM and Storm Mitigation and Resiliency program following Hurricane Sandy.

Nancy was a top rated presenter at Mainstream Conference 2016.

 

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