How do we get AM into decisions and projects for new assets?
I fear we haven’t quite got there yet. The lure of shiny new things means that even in those organisations where Asset Management is almost business as usual… any thinking about the whole ‘lust to dust’ lifecycle management, even basic on-going costs, goes out the window as soon as opportunities to access money for new (such as Biden’s 2021 Infrastructure Plan) arise.
It’s almost as if organisations can tolerateAsset Management – as long it does not impinge on their fun.
And so we continue to build long-term liabilities.
Wave 3 is ensuring that Asset Management, and Asset Managers, have their seat at the top table in decisions about growth and shiny new things. And once we are there, to ask very hard questions about both of them.
I would like to explore how we get to be at that table, and that ‘future friendly assets’ start, but don’t end, with a healthy scepticism about building anything new.
What are they really going to cost over their whole life?
Who really benefits from them?
What do we rule out by investing in them, as opposed to something else?
And what might we actually destroy in the process?
How do we make sure we are at the table to be able to ask them?
For a longer article on what goes wrong when Asset Management is not on the table, please see:
An Asset Management friend recently emailed me that her CEO had challenged her view of the importance of AM to their whole business strategy. “So asset management is improving our passenger experience? Asset management is improving employee engagement? Asset management cures cancer?”
While, on the other hand, even plenty of people with ‘Asset Manager’ in their job title act like their job is to manage the list of assets in an IT system.
ISO 55000 makes bold claims, that I think it cannot substantiate. That the same principles we apply to managing physical assets hold true to managing anything else of value, like financial assets, or people. I suspect that the good folks who wrote ISO 55000 may have no idea what that even means – or, put it this way, would you necessarily go to an engineer to tell you how to manage people?
So I do in practice think there’s a limit.
However, managing physical assets clearly is a huge part of running an asset-intensive organisation such as transit or power, or even a city. It’s certainly most of their budget and resources. If you can get that right, many good things should follow, like profit, customer service and, yes, engaged workforce.
But perhaps the real point is that to manage the physical assets well, you have to think about profit, customer service, and engaged workers.
To me, it’s obvious that it matters – it matters hugely that we do manage our essential infrastructure well, that not merely our economy but quality of life and planetary health depend on it. So we need a wider vision, an understanding of interconnections and dependencies, ‘the bigger picture’.
Asset management will not cure cancer. It has boundaries.
But managing the physical assets that underpin our society effectively is probably wide enough scope to be getting onwith, don’t you think?
Not everywhere in the world uses hedges. But Britain has about 500,000 km of hedgerow – despite losing half of them since 1945, as industrial scale farming has taken hold here. One of my very earliest memories is being driven through a patchwork, hedged landscape in the middle south west of England. And it was magic.
Hedges are not just fence-equivalents, worth the investment for that alone. They also store carbon, of course, as linear (if metre high) woodland.
“Hedgerows help slow down the runoff of water, guarding against flooding and soil erosion, and act as barriers to help prevent pesticide and fertiliser pollution getting into water supplies. Studies show they can improve the quality of air by helping trap air pollution.
“They are perhaps the largest semi-natural habitat in Britain, refuges for wild plants and corridors for wildlife to move through, often in barren farmland landscapes.” Paul Simons, the Guardian, 18 Aug 2021
For these reasons, the UK Climate Change Committee recommends planting 40& more hedgerows by 2050.
They are only semi-wild, of course, because they are trees manipulated (‘laid’) by humans, and so require effort, and skill. They are very definitely infrastructure.
Thinking about Waves 3 and 4 of Asset Management, this quote from a recent novel struck me:
“It is difficult for anyone born and raised in human infrastructure to truly internalize the fact that your view of the world is backward.
“Even if you fully know that you live in a natural world that existed before you and will continue long after, even if you know that the wilderness is the default state of things, and that nature is not something that only happens in carefully curated enclaves between towns, something that pops up in empty spaces if you ignore them for a while, even if you spend your whole life believing yourself to be deeply in touch with the ebb and flow, the cycle, the ecosystem as it actually is, you will still have trouble picturing an untouched world.
“You will still struggle to understand that human constructs are carved out and overlaid, that these are the places that are the in-between, not the other way around.”
– Becky Chambers, A Psalm for the Wild-Built (Monk & Robot Book 1), 2021
In a previous post, there was a diagram showed how each of our ‘waves’ could also be conceived of as particles, embedding and building on each other. .This is our latest version, to capture the ideas of ‘grey assets’, as opposed to green and blue assets.
For the last 40 years the economic focus has been on growth.
And so infrastructure decisions have also focused on growth. But now this growth focus is changing as we realise the damage we are causing – and so asset management and infrastructure decision making needs to change, too.
We are now at a pivot point.
We have been at pivot points before. This is what Talking Infrastructure’s THE ASSET MANAGEMENT STORYis now documenting.
At each pivot point in Asset Management (the beginning of each wave), we have expanded our understanding of the world we operate in. Starting from simply maintaining and recording inWave 1, we moved, inWave 2 or Strategic Asset Management, to using this information to optimise decisions concerning our existing portfolios.
Then, in Wave 3, we look to take on a bigger role, infrastructure decision making, where we go out into our communities to work on whether the size and shape of our portfolio is what it needs to be. Wave 4 extends our understanding of our asset portfolios to the impact we are having on society and planetary health, and actively seeks to improve these impacts. The task in Wave 4 is to make all infrastructure decisions ‘future friendly’.
Wave 4 is the challenge that Talking Infrastructure was surely set up to address.
It is our most critical pivot point yet in asset management. This is the challenge that Talking Infrastructure CEO, Jeff Roorda, is leading at the Blue Mountains City Council where he is Director of Economy, Place and Infrastructure services. The city’s focus is on Planetary Health and Social Wellbeing. And we will be reporting what the City, and others with whom it is working, learns so that everyone can move in a saner direction than we may have done in the past.
If this interests you, watch this space, for a new series of blogs about infrastruture and biodiversity.
And, of course, become an active part of the dialogue on Talking Infrastructure.
In May 2018, Penny Burns and Jeff Roorda wrote here about three ‘revolutions’in Asset Management – later renamed ‘waves’, because that captures better the idea that one wave doesn’t supersede another.
Since then, we have discussed with each other and many others howWave 1, ‘Asset Inventory’, is more successful if you already have in mind the vision of Wave 2, ‘Strategic Asset Management’ and how you are going to use all of the information you collect.
We have looked at what Asset Management practitioners need to develop to move on from this, to be able to look beyond our own organisations, to a bigger role in supporting our communities. We called thisWave 3, supporting better‘Infrastructure Decision Making’.
We have even begun to imagineWave 4.
As Penny puts it: whereas Wave 1 looked at WHAT we had, and Wave 2 looked at HOW we needed to manage it, Wave 3 started to ask WHO we were serving by our efforts. This has brought us now to start thinking more deeply about this question and about the next move, looking at the critical question of WHY.
As Asset Management practitioners, we have to ensure we are in the right positions of influence to be able to challenge existing infrastructure assumptions, which is what I think Wave 3 is all about. To look ‘up and out’, as Lou Cripps of RTD puts it.
But we can already spot that there is no point in being able to ask hard questions, if we don’t have the right questions to ask….
I teach people about Asset Management – up to 1000 a year – and I get to see a wide range of reactions. Best is when someone in class decides Asset Management is what they have been looking for their whole career, its mixture of technical and people and business challenges exactly right for them. Or the maintenance guy who, by the end of the course, was explaining to everyone else to “do the math” for optimal decisions.
For some, on intro courses, it’s mildly interesting, at least as long as their leaders tell them it is.
Sometimes, however, people resist.
I taught a class of design engineers a few years ago, who argued the toss on everything, and failed the exam afterwards. I think we can take it that they didn’t get it because they didn’t want to. (I have also taught a class to project engineers who had understood AM was the way forward for them personally and had got together to sign up for it.)
Recently, I was working with an organisation – an early-ish adopter in the USA – where they were keen enough on AM to create a series of jobs for ‘Asset Manager’. Not necessarily what I, personally, would call Asset Managers, but rather engineering roles to develop priorities by asset class for replacement capital projects.
The way we teach AM, following the lead of Richard Edwards and Chris Lloyd (two very smart UK pioneers) is top down. If strategic AM is aligned to organisation priorities and levels of service targets, we start with what those targets are, with external stakeholders interests, the role of top management, and demand forecasting. In other words, context and goals. I warn everyone about this right at the start – and also make it clear that nothing else matters if we don’t understand what we want the assets for in the first place.
I was struck, this time, by the lack of curiosity the class had. No-one knew what their level of service targets were, they stumbled to think about who their key regulators were, where demand was heading, even who might have a legitimate interest in what assets were being replaced, outside of engineering and operations. It wasn’t just that they didn’t know, they also didn’t much care. They were not stupid.
I was struck by how weird it is, really, that we have to teach anyone about alignment. That smart people working with assets don’t stop to ask what their organisations are really doing with those assets.
What a good Asset Manager really needs more than anything is curiosity – asking all the questions about why and how and how we can do it better in future.
But some people just aren’t very curious, for some reason. They are not much fun to teach!
The world of infrastructure Asset Management has had the benefit of an evolutionary model for several years: the ‘Waves’ of Penny Burns, to make sense of how organisations seem to have to go through a period of focus on basic information (Wave 1, Asset Inventory) before they really look at how to use it to make better decisions, to start optimising (Wave 2, Strategic Asset Management).
Before that, I confess, I struggled to express what was going on: how could people get stuck in data and databases? I don’t know that I fully understand, still, but I least I recognise it now – that having a list of all your assets, simple facts like install date and location, and a big dumb database to put it all in preoccupied so many of us for so long.
Penny herself seems not to have spent too much time worrying about this, but always had a vision way beyond it. She assumed we would have a grip on lifecycle costs, thinking longer term, and planning ahead, and get down to acting smarter on our asset decisions.
And now, as we work together to capture our collective history and development, we are really looking forward to the next Wave. To really so much better infrastructure decision making that is fit for purpose, through the rest of this turbulent century.
Look out for celebrating our history on July 29th!
It’s always an interesting question: why do things arise when and where they do? Why Asset Management in Australia in the 1980s, when plenty of other useful asset ideas came from other places and times – reliability engineering in US commercial airlines post-war, for instance?
And when I explain where much best practice comes from, why is New Zealand such a paragon? There are very good reasons, when you ask about the when and the where.
There is something about fundamental ideas that makes understanding the specifics important. An approach that seems like such a good idea as Asset Management – why wasn’t it more obvious, earlier, to more people? A fabulous clue as to how what seems like an obviously sensible mindset, required something major to shift. A chink in older assumptions, even culture, that let someone, something start to question, to let a new light in.
I suspect a lot of us struggle about why people resist what seems backed by logic, evidence and good sense. But I don’t want us to go down the deep, dangerous rabbit hole that is conventional economics, making a simplifying assumption that people are ‘rational’ the way they define it – a definition which doesn’t really care why people do what they do, or how what seems ‘obvious’ in one situation doesn’t work in another, or anywhere.
And that is partly why I love physical infrastructure. One size really doesn’t fit all* – a good strategy for one kind of asset would be barking wrong for another, and even for an identical asset in a different context. And it all depends on what you are trying to achieve, specifically.
Physical assets are the opposite of idealised generalisations. Yes, there are generally good questions; but not universal good answers, at least not in my experience.
Infrastructure Asset Management is the epitome of the full appreciation of time and place.
Watch here for the publication of the first part of Penny Burns’ history of Asset Management, from its beginnings in South Australia….
*Thanks to a Bay Area shoestore billboard, and Robyn Briggs ex Pacific Gas & Electric, for this!
Appealing though it might be to be a secret hero*, like Fedora Perry – cool hat! – even this misunderstands platypuses. The internet has plenty of cute images of things that are labelled platypuses but aren’t.
In particular, many cartoons (like Perry) show them with a beaver tail*. They are sort of like an Australian beaver, so we assume they look like them. Even the robot platypus has a beaver tail. But platypuses have furry tails.
Once someone put a beaver tail on a platypus, it was easier for people to copy than check a photo of a real platypus*.
And I guess they were the inspiration for Fantastic Beast the niffler – and now nifflers show up in seaches for platypus images.
And since almost no-one has ever seen a baby platypus*, fake pictures circulate (and there’s a furious debate about what they are even called).
Yes, platypuses are widely misunderstood, when people have even heard of them.
What does a good infrastructure Asset Manager really do*?
*Hint: not a lone hero, not a construction engineer, not necessarily what people think, and they don’t spring fully formed from college…