My colleague Todd Shepherd and I had a brainwave* last year to restructure how we teach Asset Management – not as a line that starts with investigating capital needs, the conventional beginning of the asset life cycle, but from where we are now. That is, right in the middle of maintenance. We are always deep in maintenance needs.
It makes more sense of the history of AM, straight off. It was not people writing business cases, or design engineers, who realised the urgent need for something different. It was maintenance, post World War 2, and then Penny Burns and the problem of unfunded replacements and renewals in the 1980s.
If Asset Management has waves, we might suggest what Wave Minus 1 was. Wave Minus 1 was hero engineers, from the Industrial Revolution on, building heroic infrastructure – Bazalgette and London sewers, Brooklyn Bridge. Sewers and bridges are both good things. But they are not quite such good things if they leak or fall down because they are not maintained or renewed.
With infrastructure, it is not enough to start; you have to see it through.
Penny used life cycle models to understand the extent of renewals, and increasingly I don’t feel anyone is really doing Asset Management if they do not use such models. Of course it is called life cycle for a reason. There isn’t an end, only another cycle.
But now I fear that starting at the beginning of one lifecycle in our teaching still makes it sound as though it is the creation of infrastructure that’s the important thing. We have not really got the cycle bit across enough, at least to the average engineer we teach. What comes after construction is still a vague future state, that is someone else’s problem.
And, not at all coincidentally, that’s also the point of the circular economy concept. There is no meaningful product end, and we are right in the middle of the mess we already built.
It is not a straight line into the future, where we set assets in motion and let them go. Longer term thinking, long-termism, has to think in cycles.
*Almost certainly it was Todd’s brainwave, which I managed to catch up with.
Thanks to my brother Bill Wallsgrove
Board member Lou Cripps and his team at RTD are great Asset Management practitioners – and that is largely because of their attitude to time.
For example, the team prepares carefully for meetings with key stakeholders, not just the CEO but engineers, IT, maintenance, HR. They think carefully about what they want to effect through the meeting – their objectives – and then project forward what the possible response/s of the others will be, based on their previous interactions. They can then work on what will most connect and make a win:win outcome likely.
Lou’s team also makes full use of red-teaming and pre-mortems, to imagine what could go wrong with an initiative so they can prepare not to go there. Risk assessments and risk plans, essentially, but exploiting the human ability to project forward and then ‘look back’ in our minds. (“Imagine it’s six months’ time and we are doing a post-mortem on what went wrong.”)
Lou refers often to ‘future me’ and ‘future us’: that is, stepping in the shoes of himself in a year or ten years’ time. This is not just to feel how fed up he might be then about what he failed to do now, but also to consider what future him would care about more widely. It is empathy with a future self. And it does not even need to be yourself. What about someone in the community in a hundred years?
This is good Asset Management for infrastructure, in particular, as infrastructure decisions we make now should always be assumed to have lasting implications. The assets we build now may still be in use in a hundred years. And the things we don’t build because we’re building something else. The lost opportunities, and future debts. What we fail to maintain, so will have to be built again…
Lou’s team last year relentlessly analysed the data to work out the likely costs – the total costs, now and into the future – for a proposed project to buy more electric buses. They worked out that this particular set-up would cost their transit agency approximately $2 a mile extra on every electric route for the next 50 years. It wouldn’t even save on carbon, because the electricity supply proposed was fossil fuel burning generation. (It was not a good proposal, and the Board duly turned it down thanks to their analysis.)
To build and not think ahead is a dereliction of duty. Principle number one for an Asset Manager: always ask, “And then what?”
Making full use of the past, in order to think ourselves into the future.
How do you this in your team?
The latest good book on long-termism – The Long View: Why We Need to Transform How the World Sees Time, by Richard Fisher – has an intriguing section on language and different metaphors for time.
I did my project on one common metaphor for time for a trainer training course some years ago, on using space: as in, looking forward, leave the past behind, back in time. (So ubiquitous a metaphor I don’t normally even notice it.)
Other cultures, quite reasonably, picture the future as behind them, because they can’t see it, not having eyes in the back of their heads.
The evidence suggests that if you think of time as a line extending away from you, the long future seems physically distant – and what’s physically distant is also known to seem less important, or at least much less vivid.
Put this together with a challenge we have in Asset Management with uncertainty and data, and I wondered if we need better language, starting with the difference between the past and future.
To put it bluntly, we can have data about the past, about things we’ve already observed or recorded, but we can’t have data about the future. We can only project forward from what we know, and must do so with an ever-present sense of the uncertainty of our projections. We don’t know what is going to happen to our assets tomorrow, let alone fifty years’ time. And yet we must act, in any case, because not to act is to make a decision with consequences in itself. (Annie Duke is very good on this.)
Asset Management confronts short-termism all the time, and even too often builds it in to our planning: short term AMPs that only look out five years, or less. But the assets we build, or fail to build, maintain or fail to maintain may still be the reality in 20, 50, a hundred years from now. And all of these decisions and actions in the context of slow-burn changes like climate catastrophe.
Fisher himself suggests, among other things, that we consciously try out the shoes of people in the future. To imagine being one of my own step-grandchildren looking back at what we did or failed to do in 2024. Or the Joanna Macy exercise of communicating what we did do with a descendant.
I have wondered for a while if we also need terms that bring out the uncertainty of the future.
In a creative set of sci-fi novels, Michael Coney told stories from the Ifalong. About how an action, a decision, will switch the happentrack. A universe in which it matters what decisions you make now, because it creates the actual track in the multitude of possibilities.
Asset Management has to live in the Ifalong, understanding probabilities the best we can, always trying to make an effective happentrack. That’s our job.
What images, models, metaphors for time, the future and uncertainty do you find useful? The diagram at the top is one we use at AMCL in teaching.
In 2024, Asset Management turns forty.
One key question for me this year as an Asset Management practitioner is time itself, and how we act with the future in mind.
The innovation of Asset Management is very largely about time. Penny Burns created AM to look forward in time and consciously choose whether we needed to renew like-for-like, or should manage our assets differently in future.
Forty years ago, we were not thinking about climate catastrophe, and we were only just at the start of the IT revolution. (I had only just seen my first PC, and the world wide web, smart phones and terabytes of data storage for $50 were barely pipedreams.)
But the question of longer-term thinking has in some ways gone backwards in our societies since then, not forwards.
The vast majority of infrastructure organisations still only have very short term asset plans, and almost no asset strategy. More have, must have, 3- or 5-year plans now, thanks to AM as much as anything. But the 15 to 20 years plus strategic view that Penny proposed is still a challenge.
And shockingly few agencies even use life cycle modelling to project the very basic realities about the timings for replacements, let alone a mindset of always asking ‘And then what?’ of our day to day and year to year asset decisions.
I fear as a community we are still underskilled, underprepared for the future: for embracing uncertainty and identifying with the future.
And so, as we celebrate, look back and learn from the last 40 years, Talking Infrastructure plans to act like the future matters.
Starting with a time series of blogs to ring in the New Year. Your contributions most welcome!
In April 2024, it will be 40 years since Penny Burns started the whole thing. Talking Infrastructure plans to party like it’s 2024, all year.
2024 also marks milestones for the Global Forum for Maintenance and Asset Management (update of the AM Landscape), ISO (10 years since ISO 55000), and the Institute of Asset Management (30 years since it was founded): there will be a lot happening.
The need for more considered decision making for our future infrastructure has only grown and become more urgent. Asset Managers everywhere know this. Our 40 year celebration will be an opportunity to take this message not only to managers of infrastructure but also to those who decide, design, construct, fund and vote for our infrastructure.
Like infrastructure itself, our purpose is to support the wider community. There is a lot of satisfaction to be had in this and we invite you to join us, and enjoy it too. What area of Asset Management and decision making particularly interests you?
We are looking to develop a circle of advisors, who, through their interests and work, can have the fun of keeping Talking infrastructure up to date with current issues, and setting its future directions.
Your ideas for celebrating our 40th are also needed and much welcomed. This will include events across Australia in April, and presence at AM conferences and articles wherever and whenever we can.
What did we learn in the last forty years? Where do we need to go in the next 40 years?
© https://www.dreamstime.com/ image120059878
I love a friendly alien. Some of us – possibly the less military minded – have long preferred stories of good contact experiences, from ET and Close Encounters of the Third Kind to Arrivals. Indeed, the grandmammy of them all, The Day the Earth Stood Still, which is about the shortcomings of militarism.
There’s a new generation of sci-fi with what can only be described as positively cuddly species from other planets. The close encounter in A Half-Built Garden, by Ruthanna Emrys, echoes The Day the Earth Stood Still in that the aliens have come to save humanity from itself. But the ‘dandelion networks’ are already saving the planet through direct democracy based around watersheds, to them the natural way to organise.
And it could not be more cuddly: the first human to meet the aliens is woken by water pollution alarms in the Chesapeake in the middle of the night, and hurries out to check what is happening taking her baby with her. Turns out the aliens don’t trust anyone who would not bring their babies to a key negotiation.
The principle the dandelion networks use in decision-making about infrastructure and other technology is: will what we are building be at least as benign as a cherry tree? With evident, multiple benefits and few costs, and a net positive impact on the environment?*
If not, don’t build it.
Is there anything we are building today that would pass the cherry tree challenge?
*Ruthanna borrowed the metaphor from Cradle to Cradle: Remaking the Way We Make Things by William McDonagh and Michael Braungart, 2009.
Not Neom – more AI!
Asset Management just took an interesting right turn. Neom, the city of the future planned to cost $550 billion, is currently hoovering up Asset Managers.
Some people I hugely respect, including Mark Sexton and AMCL, Rhys Davies (previous chair of the technical committee for ISO 55000) and Stacey Jones, ex-BHP, have committed to time in Saudi Arabia to ensure AM is properly incorporated as Neom’s design and construction develops.
At one level, this is progress: that a mega mega mega project takes whole-life Asset Management very seriously from the start.
Ever since I interviewed some Asset Managers from Enron twenty years ago – not long before Enron ate itself – I have understood that AM can only be as progressive as the objectives it is aligned to. We are not automatically on the side of the angels.
When we talk about ‘future friendly assets’, the starting point is that someone has thought through how much a shiny new asset will take to operate and maintain in practice. But it must mean more than this: what will the impact of the asset be, starting with whatever materials it uses, and extending into the impact on ecology and long-term pollution, including CO2.
When, if ever, is it a better idea to build new than to maintain the infrastructure we already have? Can we build our way out of trouble?
A fascinating time to look at the different directions we might take from here. Neom as opposed, for instance, to the commitment to biodiversity in infrastructure at the Blue Mountains City Council.
For the moment, Neom is an Asset Management magnet, with consequences probably far beyond the Middle East.
It’s worth looking Neom up on YouTube, if you have not already.
Or, making sure we always ask who truly benefits by a new infrastructure project.
Infrastructure investment always attracts several groups with particular interest in the projects themselves.
There are the construction companies where it is all upside (work for them) and no cost, at least to them. They probably won’t even be around when the assets are in use.
There are internal project engineers who want cool things to build, whose interest in the assets once constructed can be minimal. That is to say, they don’t necessarily worry about handover of as-builts or how well the assets work after ten years. Their job is to do shiny news things!
And of course there are developers, whose interest extends to how much they can exploit the infrastructure – and with a long, long history of lobbying to the point of corruption.
I am not sure if the people who fund it always think about this. Assuming, of course, they have not already been captured by the lobbying and mindsets of construction companies and developers.
A lot of people like to see money invested in their neighbourhoods, at least until the construction noises start.
So, wearily, we have to take this on as infrastructure Asset Managers and stewards.
Like mad-eyed prophets calling out in the wilderness, and not necessarily honoured in our own country, nobody maybe wants to hear: Cui Bono?
I work with a variety of organisations in several countries who are attempting to implement good Asset Management. Some are just starting out. A few are quite sophisticated. And one or two are even tackling the question of infrastructure decision making in our communities.
I was struck again this month by how hard this all sometimes seems.
Organizations who are just starting out have interesting challenges, of course, including no-one much understanding what AM is and, usually, a lack of resources. One half time resource without much authority, for example, can’t do much to radically transform their business.
But surely it doesn’t have to be that hard, conceptually, to sort out a basic asset inventory, classic Wave 1? Plenty of organisations have already sorted that – it is, as my old colleague John Lavan put it, a puzzle, for which there is an answer already known, not a problem we haven’t yet solved.
And yet many people just don’t seem to have good sense about asset information. And want to reduce the problem to basic IT, which they also don’t do very well. (I am feeling a bit grumpy about this: can’t someone please donate good-enough asset hierarchies and principles into the public domain, or even write the book so no-one ever has to reinvent those particular wheels? TJ, Dave Ulrich, I am looking at you guys here.)
Wave 2, strategic AM and better all-round asset decision-making also depends on something rather more than technology – and that, I am sure, is why organisations struggle. It involves people! Culture! And politics, small p, and sometimes Big P too!
Where Asset Management is effective, infrastructure Asset Managers can then get caught up in Wave 3. And however smart and well-resourced they are, it’s big.
A great current example is electric buses, something the US Federal government wants to throw money at as part of ‘decarbonization’ of transport. But the questions of how, and why, to invest with all the interconnecting issues of the infrastructure for the buses themselves, performance and customer satisfaction, and whether this will even give the right carbon-reduced answer…
Asset Managers get it. But they are a small drop in a large ocean of greed and love of shiny new things.
I asked a buddy who’s simply caught in too many stupid business decisions in a utility whether he might just bring in some additional resources to tackle more of them… But he said, quite rightly, where from? Who gets it, and all the diplomacy, strategic thinking, experience, intelligent use of what data there is that is that’s required, all at once?
ISO 55000 doesn’t help it all that much.
In a new series of blogs, I want to look with your input at some of the challenges we see in every Wave. Of course we love challenges. But I also see rather too many Asset Managers at every stage drowning in the sheer size of the job.
Series to include: asset information, risk, networking, attitude change, and more.
© 2023 Bill Wallsgrove
Some of my best friends are AI – in literature, at least. Ships Behaving Badly in Iain M Banks’ Culture novels for example, which led a human friend to say they couldn’t make a worse job of running the world than humans.
I am sad to say I expect less in reality, and any technology under the control of the rich few. But should we fear conspiracy or cock-up more, I wonder?
I seem to have become a luddite about ‘smart technology’ in managing infrastructure, delivering less and threatening more than enthusiasts are claiming. Systems too complex to manage, or to understand the potential implications of; and products that don’t offer much except big price tags.
But I had to smile at this image, the first result of my brother using an AI art app to create images for me of duck-billed platypuses.
Recent Comments