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ISO 55000 for Leaders: Developing an Asset Management Policy
The document discusses the development of an asset management policy according to ISO 55000 standards, emphasizing the importance of leadership, stakeholder alignment, and communication in asset management. It outlines the benefits of asset management, including improved financial performance, risk management, and organizational sustainability. Key components of an asset management system are also detailed, highlighting the integration of standards and continuous improvement for effective decision-making.
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ISO 55000 for Leaders: Developing an Asset Management Policy
- 1. ISO 55000 forLeaders: Developing an Asset Management Policy © Life Cycle Engineering
- 2. Speaker Bio • MarkA. Ruby, SVP Reliability Consulting, Life Cycle Engineering • SVP Finance and General Manager, Robert Bosch Corporation • A 30-year career dedicated to excellence in manufacturing
- 3. Speaker Bio • BillWilder, M.Ed – Director, Life Cycle Institute, Life Cycle Engineering • District Manager, product management and workforce development, AT&T • A 30-year career dedicated to excellence in learning and change management
- 4. ISO 55000 forLeaders: Developing the Asset Management Policy Mark A. Ruby, SVP, Life Cycle Engineering Bill Wilder, Director, Life Cycle Institute
- 5. Learning Objectives 1. Describethe four key documents and the benefits of the ISO 55000 standard 2. Develop an Asset Management Policy and associated communication plan 3. Identify the value of stakeholder analysis and leadership alignment 4. Explain the critical foundational concepts in asset management systems
- 7. The Need forStandards Stability Level differences in how business around the world is grown and managed Increased concern over risk awareness Industrial disasters, financial instability, civil unrest and economic duress of certain nations Balancing force for international trade
- 8. ISO 55000 PrimaryDocuments A set of three standards issues by the International Organization for Standardization ISO 55000 – Terms and Definitions ISO 55001 – Requirements ISO 55002 – Guidance Will be harmonized at a high level with other managing systems like ISO 9001 (quality) ISO 14001 (environmental) ISO 50000 (energy sustainability)
- 9. Important Themes: ISO55000 Value recognition Risk-based Optimization of cost, risk & performance Aligned objectives Transparent decision making Recognize impact of long life cycle issues
- 11. Asset Management ExpandedView Corporate/ Organization Management Asset Management System Management Asset Portfolio Management Asset Systems Manage Individual Assets Organizational Strategic Goals Capital investment value, Performance and sustainability Systems performance, cost & risk optimization Asset life cycle costs, risks & performance .Adapted from Figure 1 – Asset Management – an anatomy Ver .1.1 - TheIAM Create/ Acquire Utilize Maintain Renew/ Dispose
- 12. Fundamentals of AssetManagement • Assets exist to provide value to the organization and its stakeholders Value • Asset management translates the organizational objectives into technical and financial decisions and plans Alignment • Leadership and workplace culture are determinants of realization of value Leadership • Asset management gives assurance that assets will fulfill their required purpose Assurance
- 13. Answer: Benefits ofAsset Management Improved financial performance Informed asset investment decisions Managed risk Improved services and outputs Demonstrated social responsibility Demonstrated compliance Enhanced reputation Improved organizational sustainability Improved efficiency and effectiveness
- 14. THE FINANCIAL BENEFITSOF ASSET MANAGEMENT
- 15. Financial Benefits ofAsset Management • Revenue • Profit • Expenses • Quality • Delivery • Operating efficiencies • Cash • Inventory • Spare parts • Investment • Depreciation • Fixed Assets • Working capital Selecting What to Measure Class Discussion: What KPIs does you company use?
- 16. Financial Benefits ofAsset Management Ratio Analysis – The Language Of Business
- 17. Fixed Capital • Optimizelifecycle costs • Increase asset life • Defer asset replacement Working Capital • Leaner manufacturing • Reduce work in process • Reduce spare parts inventory Revenue or Output • Increase asset availability • Increase throughput • Improve quality Operating Costs • Reduce unscheduled downtime • Reduce maintenance cost • Reduce operations Cost Value Delivered for Capital Employed
- 19. Asset portfolio Managing the organization Asset management Asset management system Coordinated activityto realize value from assets Set of interrelated or interacting elements to establish asset management policy, objectives and processes to achieve objectives Assets within the scope of the asset management system Benefit: Provides risk control and gives assurance to meet objectives What elements behind a working system are NOT seen in the model? Relationship of Asset Management to the Asset Management System
- 21. Asset Management System AStrategic Decision An asset management system provides a structured approach for the development, coordination and control of asset-related activities across their life cycle.
- 22. Benefits of anAsset Management System New perspectives, learning, quick wins and continuous improvement Improvements to management model, integration of standards and best practices Integration with financial functions improves transparency, incorporates risk and creates tools for capital allocation Cross-functional knowledge-sharing and collaboration improves the quality of decision making
- 23. Overview of theKey Documents for an Asset Management System 1 2 3 4 Asset management policy Asset management strategy (SAMP) Asset management objectives Asset management plan Dependent upon organizational objectives and organizational plan
- 24. Elements of anAsset Management System A Common Model 1. Context of the organization 2. Leadership 3. Planning 4. Improvement 5. Support 6. Operation 7. Performance EvaluationPolicy Strategy Objectives Asset Management Plans
- 26. AM Policy, Strategy& Objectives • Short statement outlining principles describing how AM will contribute toward meeting organizational objectives Policy • Defines how organizational objectives are to be converted into the asset management objectives. • Asset requirements and asset management capabilities Strategy • Performance targets • AM system, activities, performance and condition Objectives
- 27. AMS Critical Concept#1: Line of Sight The golden thread connecting organizational strategy to asset management policy, strategy & objectives Justifies all asset management activities Shares understanding of critical goals Sets and communicates direction
- 28. Customer Expectations QualityCustomer Satisfaction Reduce Failure Rates Reduce Internal Defects Defects Bestin Class Quality Critical Concept #1 - Line of Sight Corporate Strategic Goals Plant Goals Dept/:Product Goals Workshop Goals Improvement Projects
- 29. Critical Concept #1- Line of Sight Independent Units (Silos) Focus Clear Business Direction Organization Alignment (Catch Ball) Systematic Implementation Not Just Results, Planned Results Focus Alignment Quick Response
- 31. Policy Overview Policy documentscan contain: 1. Purpose statement 2. Applicability and scope 3. Effective date 4. Responsibilities 5. Policy statements
- 32. Requirements for AMPolicy 1 Consistency 2 Appropriateness 3 Compliance 4 Principles and framework** 5 Continual improvement
- 34. Leadership Considerations • Leadershipand commitment • Roles and responsibilities • Change management competency
- 35. CHANGE MANAGEMENT IN ASSETMANAGEMENT
- 37. Change! Where you are today Whereyou want to be Process of change Current state Transition state Future state
- 38. Change often failsto meet objectives • Failure • Why? • Resistance! • Sponsorship and planning mitigate resistance
- 39. What is ChangeManagement? “The application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.”
- 40. 1st communication or 1strumor Increasingresistance Decreasingproductivity Time Dept. A Dept. B Dept. C Dept. D Prosci® Flight Risk Model
- 42. The top successfactors to achieving sustained behavior change 1. Active and visible executive sponsorship 2. Structured approach to change management 3. Dedicated resources/funding for change management 4. Engagement and integration with project management 5. Frequent and open communication about the change 6. Middle management engagement and support 7. Employee engagement and participation *Prosci 2014 Best Practices in Change Management Benchmark Report
- 43. Prosci’s Structured Change ManagementProcess Awareness Desire Knowledge Ability Reinforcement The ADKAR Model Prosci’s change management process integrates individual and organizational change management
- 44.
- 46. Asset Management SystemImplementation Framework Leadership, Policy & Strategy Asset Management Strategy Physical Asset Portfolio Business Case Procure & Construct Commission Operate & Maintain Asset Management System Asset Management Capability (Processes, Procedures & Knowledge) Asset Management Objectives Value Delivery ISO 55000 Compliance Reliability Excellence Process Safety Management Mechanical Integrity ISO 31000 Risk Management Asset Management Plans Asset Criticality ASSET LIFECYCLE
- 47. Thank You Contact Information BillWilder: WWilder@LCE.com Mark Ruby: MRuby@LCE.com www.LCE.com
Editor's Notes
- #8 As emerging economies develop more rigorous business practices to help manage growth, standards around how organizations manage their assets will support international trade by leveling differences in how business is grown and managed. Risk awareness has become a very high concern among business executives and government officials. The world has suffered from major industrial disasters, the financial crisis and great recession, and continued global instability caused by civil unrest and economic duress of certain nations. There is a need for an element of stability and this standard intends to be a leveling force for international trade.
- #9 ISO 55000 is a set of three standards or documents issued by the international organization for standardization. ISO 55000 – set the definition, the terms and the requirements for the managing system framework and guidance but it doesn’t tell an organization how to perform asset management or how to deliver value and reduce risk. IN fact, it specifically excludes technical standards and guidance. Value from your assets is seen as being delivered by the decisions and processes that are made in managing risk and opportunities around requiring, operating, maintaining and decommissioning your assets (asset lifecycle) IF your organization already follows ISO 9001 for quality management or ISO 140001 for environmental management, or ISO 5000 for energy sustainability you already have the managing system framework for ISO 55001.
- #10 Asset management does not focus on the asset itself, but on the value the asset can provide. The value can be tangible or intangible, financial or non financial and the concept of value needs to be determined by the organization and its stakeholders. For example, value could be delivering profit from an asset base. If municipal government looking after public parks, value could be defined as mix of ambience, safety and low cost. Core themes of PAS 55 remain in ISO 55000, aligned objectives, transparent and consistent decision making, and the use of risk and consideration of long lifecycle issues in making those decision.
- #12 Definition Asset Management – is the systematic and coordinated activities through which an organization optimally and sustainably manages its assets and asset system, their associated performance, risks and expenditures over their lifecycles for the purpose of achieving its organizational strategic plan” It is evidence that the view of asset management has generally broadened to include the whole lifecycle and moved up to a portfolio view of asset systems. The standard encompasses this whole pyramid. Points to make There are different levels at which assets can be managed ranging from discreet equipment items to complex functional systems, networks, sites or diverse portfolios. This hierarchy brings challenges at different levels. For example, discrete equipment items may have identifiable individual lifecycles that can be optimized whereas asset systems may have an indefinite horizon of required usage. A larger organization may have a diverse portfolio of asset systems presenting different performance challenges and risk. Priorities may differ at different levels. Activities across the lifecycle involve many functional organizations and silos complicating the asset management activities
- #13 Value: Assets exist to provide value to the organization and its stakeholders. Asset management does not focus on the asset itself, but on the value that the asset can provide to the organization. The value (which can be tangible or intangible, financial or non-financial) will be determined by the organization and its stakeholders, in accordance with the organizational objectives. This includes: 1) a clear statement of how the asset management objectives align with the organizational objectives; 2) the use of a life cycle management approach to realize value from assets; the establishment of decision-making processes that reflect stakeholder need and define value. b) Alignment: Asset management translates the organizational objectives into technical and financial decisions, plans and activities. Asset management decisions (technical, financial and operational) collectively enable the achievement of the organizational objectives. This includes: 1) the implementation of risk-based, information-driven, planning and decision-making processes and activities that transform organizational objectives into asset management plans (see b.53A:); 2) the integration of the asset management processes with the functional management processes of the organization, such as finance, human resources, information systems, logistics and operations; the specification, design and implementation of a supporting asset management system. c) Leadership: Leadership and workplace culture are determinants of realization of value. Leadership and commitment from all managerial levels is essential for successfully establishing, operating and improving asset management within the organization. This includes: 1) clearly defined roles, responsibilities and authorities; 2) ensuring that employees are aware, competent, and empowered; 3) consultation with employees and stakeholders regarding asset management. d) Assurance: Asset management gives assurance that assets will fulfil their required purpose. The need for assurance arises from the need to effectively govern an organization. Assurance applies to assets, asset management and the asset management system. This includes: 1) developing and implementing processes that connect the required purposes and performance of the assets to the organizational objectives; 2) implementing processes for assurance of capability across alii ife cycle stages; 3) implementing processes for monitoring and continual improvement; 4) providing the necessary resources and competent personnel for demonstration of assurance, by undertaking asset management activities and operating the asset management system.
- #14 Asset management enables an organization to realize value from assets in the achievement of its organizational objectives (see .2....5....3A). What constitutes value will depend on these objectives, the nature and purpose of the organization and the needs and expectations of its stakeholders. Asset management supports the realization of value while balancing financial, environmental and social costs, risk, quality of service and performance related to assets. The benefits of asset management can include, but are not limited to the following: a) improved financial performance: improving the return on investments and reducing costs can be achieved, while preserving asset value and without sacrificing the short or long-term realization of organizational objectives; b) informed asset investment decisions: enabling the organization to improve its decision making and effectively balance costs, risks, opportunities and performance; c) managed risk: reducing financial losses, improving health and safety, good will and reputation, minimizing environmental and social impact, can result in reduced liabilities such as insurance premiums, fines and penalties; d) improved services and outputs: assuring the performance of assets can lead to improved services or products that consistently meet or exceed the expectations of customers and stakeholders; e) demonstrated social responsibility: improving the organization's ability to, for example, reduce emissions, conserve resources and adapt to climate change, enables it to demonstrate socially responsible and ethical business practices and stewardship; f) demonstrated compliance: transparently conforming with legal, statutory and regulatory requirements, as well as adhering to asset management standards, policies and processes, can enable demonstration of compliance; g) enhanced reputation: through improved customer satisfaction, stakeholder awareness and confidence; h) improved organizational sustainability: effectively managing short and long-term effects, expenditures and performance, can improve the sustainability of operations and the organization; i) improved efficiency and effectiveness: reviewing and improving processes, procedures and asset performance can improve efficiency and effectiveness, and the achievement of organizational objectives.
- #15 The standard is very much value focused. The question is, how do we calculate value? There is financial and non financial, but mostly it seems the world is focused on the financial aspect.
- #16 How do each of your companies identify value? What do you measure and why? Is the information easy to capture. Are all your stakeholders covered? What about revenue lost from risk events? Reference aberdeen study.
- #17 We are going to focus on the financial aspects of measuring value. As part of your reading I included a paper on financial ratios. I did this because the foundation for how business are viewed is captured through ratio analysis. Are you all familiar with financial ratios? There are five classifications of ratios Price ratio - is used to understand a companies stock price valuation. These ratios are only relevant when compared across companies, over time as a trend or against a benchmark. Does the price ratio apply for what we are doing? Liquidity ratio – indicate how capable a business is of meeting short term obligations. Profitability ratios – tells how good a company is at converting business operations into profits. Profit is a key driver of stock price and one of the most closely followed metrics in business. Do your companies measure profitability? Discuss this. Does this ration apply? Debt ratios – concentrate on long term health of a a business particularly the effects of capital and finance structure. Does this apply Efficiency ratios – gives investors insight into how efficiently a business is employing resources invested in fixed assets and working capital. It can also be a reflection of how effective a company’s management is. Summarize the key ratios we will use.
- #18 Keep it simple
- #20 Weakness: Does not address leadership, culture, motivation, behaviors, etc. An asset management system is used by the organization to direct, coordinate and control asset management activities. I t can provide improved risk control and gives assurance that the asset management objectives will be achieved on a consistent basis. However, not all asset management activities can be formalized through an asset management system. For example, aspects such as leadership, culture, motivation, behavior, which can have a significant influence on the achievement of asset management objectives, may be managed by the organization using arrangements outside the asset management system . The relationship between key asset management terms is shown
- #21 An initial review of the organizations current processes against the requirements of ISO 55001 will determine the areas that need to be developed to support the functioning of a compliant asset management system. The asset management system should not stand alone. A successful system integrates processes, activities and data with other functions, i.e.,, quality, safety, accounting, risk and HR. Reconcile against existing processes to avoid unnecessary work Start with a policy
- #22 The establishment of an asset management system is an important strategic decision for an organization. ISO 55001specifies the requirements of an asset management system, but does not specify the design of the system. ISO 55002 provides guidance on the design and operation of an asset management system
- #23 New Perspectives benefit: Tools created to manage assets stimulate and improve organizational knowledge and decision making Improvements benefit: Supports long term approach to decision making An asset management system provides an ideal framework for the identification, understanding and integration of the many technical standards, codes, guidelines and best practices that affect the organization's assets, and support the implementation of asset management. An asset management system supports energy management, environmental management and other activities related to sustainability. Integration: The linkage of asset management information to financial information is an important contribution of the asset management system to the financial function. The organization's risk-based decision making processes can become more effective by addressing asset and financial risks together, and by balancing performance, costs and risks. Cross functional: HR benefits from competency models, training programs, coaching and mentoring processes Integration of data from disconnected control systems improves decision making Communication of asset management objectives informs stakeholders of value of their activities AMS stimulates creativity and innovation
- #25 Management system – system to establish policy and objectives and to achieve those objectives (ISO guide 72 pg 2) MSS – management system standard. Introduce in PAS 99 – Specification of common management system requirements PDCA thinking inherent in the common model Plan – Leadership and planning Do – Support and operation Check – Performance evaluation Act - Improvement
- #27 Policy and strategy define the direction of an organization The asset management policy is a short statement that sets out the principles by which the organization intends to apply asset management to achieve its organizational objectives. The asset management policy should be authorized by top management and thereby demonstrate commitment to asset management. The Asset Management Strategy – defines how organizational objectives are to be converted into the asset management objectives. Should define what the organization intends to achieve from its Asset Management activities and by when. Must be cascaded throughout the organization Objectives may be set for the asset management system, asset management activities and the performance or condition of asset systems or assets. Objectives are performance targets
- #29 A process that aligns business activities to the vision and strategy of the organization. Policy provides start of organizations “line of sight” If an organization is to properly achieve its organizational objectives, it will be necessary for it to develop and communicate a clear line of sight, connecting the stakeholders needs with the specific asset management objectives. Organizational alignment for goal achievement. Discuss both horizontal and vertical alignment.
- #30 A process that aligns business activities to the vision and strategy of the organization. Achieving planned results.
- #32 Top management shall establish an asset management policy that: Is appropriate to the organization Provides a framework for setting objectives Includes commitment to satisfy applicable requirements Includes a commitment to CIP of AMS.
- #33 The asset management policy shall: be consistent with the organizational plan; be consistent with other relevant organizational policies; be appropriate to the nature and scale of the organization's assets and operations; Include compliance as a committment be available as documented information; be communicated within the organization; be available to stakeholders, as appropriate; be implemented and be periodically reviewed and, if required, updated It is not necessary for the policy to be captured in a discrete document; it can be contained in other high level organizational policies or documents, e.g. it may be included in the SAMP. The important point is that it is communicable to the organization. If this can be demonstrated, a separate asset management policy document may not be required.
- #34 Interactive – discussion – flip chart When establishing or reviewing its asset management system, an organization should take into account its internal and external contexts. The external context includes the social, cultural, economic and physical environments, as well as regulatory, financial and other constraints. The internal context includes organizational culture and environment, as well as the mission, vision and values of the organization. Stakeholder inputs, concerns and expectations are also part of the context of the organization. The influences of stakeholders are key to setting rules for consistent decision making and also contribute to the setting of organizational objectives, which in turn, influence the design and scope of its asset management system. Details Evaluating the organization's external context can include, but is not limited to, the following issues: a)the social and cultural, political, legal, regulatory, financial, technological, economic, competitive and natural environment, whether international, national, regional or local; b) key drivers and trends having impacts on the objectives of the organization; c) relationships with, and perceptions and values of, external stakeholders. Evaluating the organization's internal context can include, but is not limited to, the following issues: a) governance requirements; b) organizational structure, roles, accountabilities and authorities; c) policies, objectives, and the strategies that are in place to achieve them; d) capabilities, understood in terms of resources and knowledge (e.g. capital, time, people, systems and technologies); e) information systems, information flows and decision-making processes (both formal and informal); f) relationships with, and perceptions and values of, internal stakeholders; g) the organization's culture; h) standards, guidelines and models adopted by the organization; i) the form and extent of contractual relationships; j) risk management plans; k) asset management practices and other management systems, plans, process(es) and procedure(s); l) integrity and performance of the assets and asset systems; m) feedback from the investigation of previous asset and asset system failures, incidents, accidents and emergencies; n)assessing the ability of the asset management system to achieve the intended outcomes of the organizational objectives; o)feedback from previous self-assessments, internal audits, third party reviews and certification reviews. 4.2 Understanding the needs and expectations of stakeholders The organization should identify and review the stakeholders that are relevant to asset management and the needs and expectations. of these stakeholders. Internal stakeholders can include the following: a) employees within the organization; b) groups within the organization, i.e. functional groups (e.g. engineering, accounting, maintenance, operations, purchasing, receiving, logistics) or other groups (e.g. safety delegates); c) shareholders, management consortiums, owners. External stakeholders can include the following: a) customers, users, suppliers, service providers and contractors; b)non-governmental organizations, including civil society organizations, consumer organizations and the media with an interest in issues related to asset management; c)government organizations, government agencies, regulatory authorities, and politicians at all levels of government; d) investors or taxpayers; e) local communities; f) those in society interested in social, financial, environmental or other forms of sustainability; g) financial institutions, rating agencies, and insurers; h) employee representatives. Determining the scope of the asset management system The organization shall determine the boundaries and applicability of the asset management system to establish its scope. It should consider: The assets, their boundaries and interdependencies Which other organizations are involved Which internal parts of the organization are involved The period of responsibility), including its residual liabilities beyond the operation or use of the asset (e.g. where an organization remains accountable for risks beyond its use of an asset, such as a chemical plant asset owner that retains liability for ground contamination); The interactions with parts of the organizations management system (quality, environmental) which can require defining the boundaries, functions, and responsibilities of each part of the management system
- #35 How important is the role of leadership in implementing an asset management system? Asset management leadership can be demonstrated by top management through positively influencing the organization (and in its execution of all the requirements of ISO 55001, and specifically the requirements of ISO 55001:2014, 5.1). Top management may appoint an individual to oversee the development, implementation, operation and continual improvement of an asset management system, however, it is important that ownership and accountability for asset management remains at the top management level. Top management shall demonstrate leadership and commitment with respect to the asset management system by: ensuring that the asset management policy, the SAMP and asset management objectives are established and are compatible with the organizational objectives; ensuring the integration of the asset management system requirements into the organization's business processes; ensuring that the resources for the asset management system are available; communicating the importance of effective asset management and of conforming to the asset management system requirements; ensuring that the asset management system achieves its intended outcome(s); directing and supporting persons to contribute to the effectiveness of the asset management system; promoting cross-functional collaboration within the organization; promoting continual improvement; supporting other relevant management roles to demonstrate their leadership as it applies to their areas of responsibility; ensuring that the approach used for managing risk in asset management is aligned with the organization's approach for managing risk. Organizational roles, responsibilities and authorities Top management shall ensure that the responsibilities and authorities for relevant roles are assigned and communicated within the organization. Top management shall assign the responsibility and authority for: a) establishing and updating the SAMP, including asset management objectives; b) ensuring that the asset management system supports delivery of the SAMP; c) ensuring that the asset management system conforms to the requirements of this International Standard; d) ensuring the suitability, adequacy and effectiveness of the asset management system; e) establishing and updating the asset management plan(s) (see 62..2); reporting on the performance of the asset management system to top management. Change Management System
- #37 Successful implementation of strategy and policy often requires that people change their behavior. The processes they apply, the systems and tools they use, event their job roles or locations may change.
- #38 Change is hard. Organizations and people are typically comfortable in their current state. They know their bosses, their process, their tools. The future state is uncertain. The transition creates stress and anxiety. In this transition state people resist the change.
- #39 Employee resistance is the primary reason changes fail to meet objectives on time and on budget. The employee resistance forms during the uncertain transition state. Successfully mitigating this resistance, this risk, requires active, visible sponsors who communicate directly and frequently. It also requires that sponsors engage in building coalitions or effective collaboration.
- #40 This risk of resistance and the need for active sponsorship is why Change Management is Critical Concept 2. The application of a structured change management process is a top factor in successful change. What is change management? Prosci, the global leader in change management best practice research describes it as: “The application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.”
- #41 Successful execution of change management minimizes the impact of the “valley of despair” that people experience while they are in the transition state. Every group and every individual will experience this dip in performance. The objective is to minimize this and avoid dipping into the “red zone” where you begin to experience turnover of valued employees, tangible customer impact, active resistance, and even outright opt-out of the change.
- #42 But all change is individual. For an organization to change individuals must change. Each individual changes at their own pace, however, everyone will go through the same stages in a change. They just go through these stages at different times. The first stage is awareness of the need for change. This is when one becomes aware that there is a compelling business reason to change driven by economic, customer, competitor, environmental or other factors. They will also understand the risks of not changing. The second stage is when the individual makes a decision to change. Simply being aware of the need to change does not mean you have made a personal decision to change but is a prerequisite to having a desire to change. Once someone makes a decision to change they will need the knowledge to change. Perhaps there are new processes, tools, roles that they have to learn. Typically formal training is provided in this third stage. Training alone, however, does not mean an individual has the ability to change. The ability to change means that the systems and tools facilitate the change and the individual has experience applying these new processes and tools. It is in this fourth stage that mentoring and coaching is applied. To sustain the change requires reinforcement. In this fifth stage is when the performance management system, metrics, visual management and rewards encourage and celebrate successful change. All people go through these stages when they change, whether this be professional or personal. So, to summarize: Awareness – what is changing, why the change is needed, the risk of not changing Desire – what is in it for me (WIIFM), how I am personally impacted, making a decision to change Knowledge – training or some other form of securing the knowledge necessary to make the change Ability – applying what has been learned, doing, typically support with mentoring and coaching Reinforcement – establishing systems, processes, and rewards that encouragement change and hold people accountable for change The ADKAR model is an effective framework for identifying and mitigating employee resistance.
- #43 Most changes fail to meet objectives. The research on those that do succeed identifies the top 6 factors that contribute to this success.
- #44 The Prosci Change Management process integrates individual and organizational change management. In the Preparation phase five specific change management plans are created. These are: Resistance Communications Sponsor – helping sponsors communicate and build awareness Coaching – helping supervisors manage resistance and create desire Training The communications plan is one that has specific relevance to the ISO55000 standard.
- #47 Asset Management system implementation framework model Establishes the key concepts and flow that are necessary for many important asset management related deliverables (link to value delivery) Based upon the ISO 55000 management system for asset management Organization’s Leadership and company policy and strategy sits atop and guides and validates the asset management system Organization’s Strategic plan provides the linkages to and supports the commitment for developing, implementing and maintaining an asset management system. Understanding the organizational context is critical to developing an asset management system that aligns to the organization strategic plan A commitment to an developing, implementing and maintaining an asset management system is defined first with an written asset management policy The asset management policy is furthered with addition of an asset management strategy Asset management performance objectives are developed closing with the strategy to form the basis for developing the asset management plans From policy to strategy to objectives flow supporting asset management capabilities. The capabilities are defined through key processes, procedures and knowledge that govern the asset lifecycle The asset lifecycle is the critical concept that must be governed by the asset management system Through a risk based asset management system that governs the asset lifecycle various deliverables are possible. These deliverable serve to extract value from the assets in various forms. This value deliverable can be either an holistic view on asset management through an ISO 55000 certification or through more tactical applications like mechanical integrity or process safety management. In all cases the deliverables are developed through a risk based approach with a focus on value.