We have to be more efficient, do more with less! Why?
It has been of increasing concern to me that we seem to be focussing on efficiency without having the right steps in place for effectiveness. Why, I asked myself was this happening? The answer I came up with – which you may not agree with – is that it is relatively easy if you are the Commonwealth or State Government or a Head Office, to focus on policies that impose efficiency on others. Effectiveness, however, requires each of us to make changes of our own – much harder!
Thinking along these lines I issued a challenge to the asset managers taking part in the History Forum at the time, I asked “ Is Asset Management still fun? Or has our concern for efficiency (doing the same with fewer resources) driven out our interest in effectiveness (doing better by doing differently)?
I was thinking of effectiveness as getting the right assets in place, in other words, capital optimisation (which I still think we do rather badly) rather than maintenance optimisation (which I think we do rather well). But John Hardwick saw another aspect to effectiveness. He saw the necessity to get the right culture and information infrastructure in place. Both logically pre-date a focus on efficiency. Here is John’s comment, which is worth thinking about.
“Well, I can’t miss the opportunity to comment on this one. I don’t know how you pick your topics but this one is great. I think the doing more with less can only really become successful if you have already put the building blocks in place, set up the right culture and created the IT systems to gather the information for decision making. This creates the effective part of the story but how do you then deal with efficiency? Well, for me there are two options. One you can take on more risk. At least if your Asset Management is working you can articulate the change in risk. The other option is to look at your people and process to understand if this is optimum. What interested me the most with this topic Penny is you must be in sync with our company. I have just been moved from the strategic area of our company to managing about 700 people delivering outcomes. Interestingly i am still the business process owner for Asset Management. I am sure there are going to be some real challenges in this move. The funny part is this means I am more excited then ever. New challenges, new people to influence, more people to become part of the Asset Management community if i get it right. If it does not excite you then get out of the field and do something else.”
Amen!
Your thoughts?
Do you know where are good examples that illustrate improvements in AM effectiveness (either capital optimisation or organisational culture)?
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