Aligning asset strategy with enterprise strategy is essential to maximising the value and contribution of assets to the organisation’s broader business objectives.

Developing resources, raising performance, minimising risk, and aiming towards success are standard for most organisations’ strategy. A concept which is embraced and rarely questioned when operations flow smoothly. The real test comes when things take an unexpected turn.

Despite organisations articulating coherent and strategic plans aimed at enhancing efficiency, slashing expenses, and boosting profitability, they often encounter hurdles. These typically stem from the tension between pursuing sustainability objectives and effectively managing substantial assets amid the unpredictable nature of resource allocation or funding, especially in times of uncertainty like today.

How can asset leaders foster a culture of commercial understanding within their teams, explaining the ways in which maintenance activities can influence revenue generation and the creation of value? It’s imperative for everyone within the organisation to align around a common objective and fully grasp the total cost of ownership associated with their responsibilities.

Another issue identified was a lack of understanding and support from the chain of command on how to achieve asset reliability and maintenance program optimisation.

Articulating Business Value

The asset management community wants to improve how it drives strategic change. Driving change is one of the most complex challenges that asset managers face, especially from a partially empowered position within the organisation. This would involve managing upwards towards executive management and downwards through the mid-level and shop floor.

Asset management practitioners are being asked to articulate and define value contribution from investment. This is complex, as there is not a simple linear relationship to value, and organisations have different perceptions of what value is as it pertains to their strategic needs.

Language Matters

Engaging with top executives is critical towards securing a seat at the decision-making table. We heard that successful outcomes have come when the community has simplified intricate asset strategy proposals into straightforward narratives focused on financial outcomes, stock performance, or risk mitigation.

Why don’t we get our asset and reliability initiatives funded? Most of the time, it’s because we are not speaking the language of the people holding the purse strings.

A potential solution is to enlist management consultants to bridge communication with upper management. These firms excel in crafting effective asset management transformation strategies. With their dedicated time, influence, and specialised knowledge, they’re capable of assessing your business and operational context from an unbiased standpoint. Selecting the right consultancy can bring in the necessary expertise to address existing gaps and aid in formulating a robust, marketable strategy. Moreover, they’re skilled in delivering the kind of data, insights, and analytical perspectives that resonate with senior executives and those at the C-level, facilitating a clearer understanding and support for strategic initiatives.

Selling the Dream

We heard some good examples of asset and reliability teams achieving breakthroughs in their ability to closer align enterprise and asset strategies and objectives. Some of these included:

• Changing the language to communicate reliability and maintenance with less technical, more financial language
• Using ISO 55000 as a framework
• Quarterly executive briefings for the leadership in their organisation
• Using Safety to effectively lobby senior management
• Forming asset management committees to represent the operations and maintenance teams at senior leadership meetings

ISO 55000 as a Framework

The use of a framework like ISO 55000 enables this communication piece to take place effectively. A framework means the intent can be implemented even if you are not completely compliant. Alignment often leads to the correct behaviours, rather than just getting certified. The framework also helps if you have a change of senior leadership. This is very important because often when there is a change of leadership, alignment between asset strategy and enterprise strategy can be threatened. It must stay consistent even if a cost cutting or turnaround strategy is implemented.