ISO WORKSHOP: THE ROLE OF LEADERSHIP & CULTURE

Transcription

1 ISO WORKSHOP: THE ROLE OF LEADERSHIP & CULTURE Robyn Keast Professor Southern Cross Business School In partnership with AAMCoG & Asset Institute Keast &Brown 20 October 2014

2 Background ISO Asset Management Standards arise from growing realisation technology has taken us a long way BUT: IT solutions often not fully understood or leveraged to optimally & effectively manage assets Many of the current big problems relate to human not technical failures \ poor decision-making, competencies & management/leadership Asset-related failures brought assets & asset management to the forefront of political and public attention Sharpened by a amplified focus on risk & risk awareness industrial disasters, financial crisis, increasing & competing expectations & budgets Standards provide some stability & core direction for way forward Keast &Brown 20 October 2014

3 Asset Management definition revisited ISO55000 determines Asset Management in a broad scope: Not just physical assets, although these are significant elements - coordinated activity of an organization to realize value from assets based on a life cycle management approach to realize value Keast &Brown 20 October 2014

4 ISAM GUIDE: PRINCIPLES Assets exist to support service delivery non asset solutions should also be considered Agencies should manage assets consistent with whole-ofgovernment frameworks and take into account whole-of-life costing, future service demands and, balance between capital expenditure and maintenance requirements Asset management should be integrated with agency strategic and corporate planning Asset management decisions should holistically consider sustainability outcomes: environmental, social, economic and governance Governance arrangements should clearly establish responsibility for functional performance of, and accountability for, the asset and service delivery Keast &Brown 20 October 2014

5 ISO 5500X Combined: an overview

6 ISO Standards Integrated Asset Management Core message from the standards is that assets must be managed within an integrated framework Organisational structure, governance, management, leadership & culture (tie value creation & profit generation to physical assets) Are key additions shaping the standards describing management system for asset management THIS SESSION : Insights into these human elements Keast &Brown 20 October 2014

7 Asset Governance & Management through the ISAM Guide Keast &Brown 20 October 2014

8 Integrated Strategic Asset Management Framework The ISAM Framework maps out the processes of asset management At the top are the external functions that provide context for asset management, such as community consultation (in Blue) At the centre are the core processes involved in planning, such as the development of strategies (in Green) At the bottom are the recursive processes of service delivery and evaluation (in Yellow) On either side are knowledge management and organisational management (in Red), responsible for coordinating the processes of asset management

9 AM NetworX: Network Analysis The processes of the ISAM framework are presented here as a network map Each node represents a coordinator for each of the functions of asset management The ties between the nodes are the relationships that must exist for efficient service delivery The network map provides a blueprint for an ideal model for organisations to use in strategic asset management The aim is to structure organisational charts and and processes in the most efficient manner possible for service delivery Keast &Brown 20 October 2014

10 Diagnostic - Missing nodes Functions that are not defined within the organisation will be absent from the network. In this example the Acquisitions Planning role is missing from the top right hand corner of the network.

11 Diagnostic - Missing links Those networks that are not fully integrated, where the different functions are not connected, will be missing the links between them. The links between Acquisitions Planning and both Operations Planning and Maintenance in the top right hand corner are missing. The lack of these connections make it harder for these functions to co-ordinate or share information.

12 Diagnostic - Incomplete networks Asset management is an extended process that covers the life of the asset. Organisations with assets in the early stages of development may not have identified all of the necessary people responsible for later functions. In this instance the strategic planning functions are undefined, as are the service delivery and evaluation functions.

13 Diagnostic - Network fragmentation The long term management of assets can result in the disconnection of functions crucial in earlier stages of development. In this instance the functions responsible for external consultation and policy development are no longer connected with the network. The loss of these connections can be problematic when there are changing factors that need to be considered in the ongoing management of the asset.

14 Diagnostic - Multiple Chains An important aspect of the integration of these functions is the centralisation of the roles into clearly defined positions. When important functions are removed from the network, the length of time it takes for information to be disseminated increases as it passes through chains.

15 Diagnostic - Multiple Connected Nodes Ideally each of the functions in the network are embodied in a single position. In this example there are multiple asset managers responsible for various sections of the network, rather than having the function located in a central role. Network structures such as these require a high degree of coordination between the roles in order to function effectively.

16 Diagnostic - Multiple Unconnected Nodes More problematic is the scenario in which a function is embodied in multiple nodes that are unconnected. In this example the asset managers responsible for different sections of the network are not able to coordinate directly.

17 Diagnostic Network Segregation When groups of functions are not fully integrated the network becomes segregated into silos. The network paths in this example are concentrated through asset management and knowledge management, doubling the distance that information must travel and potentially degrading the quality as it becomes relayed second hand.

18 So How well integrated are you? Keast &Brown 20 October 2014

19 THE ROLE OF LEADERSHIP & CULTURE * tie value creation & profit generation to physical assets Keast &Brown 20 October 2014

20 Organisational Management Involves support for strategic asset management through effective leadership, communication and motivation. LEADERSHIP CHANGE MANAGEMENT ORGANISATIONAL COMPETENCIES AND SKILLS AM CULTURE

21 KEY TERMS: Governance: steering, setting direction, allocating resources Management: realising organisation goals tasks focused (organising, planning, coordinating) Leadership: influencing, motivating (people focused) Culture: ideas, customs, and social behaviour of a particular people or society

22 Organisational Management: Competences & Skills Competences refers to the knowledge and skills a person possesses or is required to possess in order to perform a work activity in an occupational category or function to the standard expected in employment. There are three primary skill domains relevant to Asset Managers: 1. Information Management 2. Business Management 3. Engineering Management + Network Management Hyland, P.et al. (2009)

23 Competence ISO55002 Competency in AM should be addressed at ALL org levels Alignment between roles and levels Not just for those who are designated asset managers Competences for all AM roles and responsibilities should be determined by the organisation (requires collaboration between line managers and HR managers) Interdependency between AM Competences, Org design & business processes Keast &Brown 20 October 2014

24 Diagnostics & actions Gap analysis and remedial action Competency assessment Alignment of organizational objectives, AM policy, AM objectives, SAMP and AM Plans Personal development programmes (training & development, education) Hiring or contracting of competent persons Training of target groups with associated documentation and monitoring Evaluation of training Keast &Brown 20 October 2014

25 Organisational Management: Leadership Development of leadership skills is progressive, moving from simple knowledge structures and straight forward technical and social skills, to more complex integrated knowledge structures. How to Mentoring by experiences senior leaders Well timed leadership training courses Job assignments that provide exposure to novel and challenging problems Hands-on experience in solving related problems Through social interactions with peers Development of leadership skills will be more effective if it is supported by the organisation

26 Organisational Management: Leadership Involves supervising activities, giving orders and motivating subordinates in a way that meets the corporate objectives so it can be defined as the ability to influence others to contribute towards the effectiveness and success of the groups of which they are members and towards the achievement of common goals. Challenges Motivate employees to align their individual goals with organisational and asset management objectives how to optimally achieve a number of often conflicting goals meet needs of various communities/stakeholders address sustainability and other social and environmental issues Complex projects complex leadership managing networks

27 Leadership Other challenges in a day-to-day activities: Be aware of needs to manage risk & innovate Encourage planning and management of the asset management process in a way that benefits key stakeholders be conscious of globalisation issues understand the impact of technological development how it affects society (e.g. wealth creation and business). Personal & Social competences for leadership: Internal motivation Continuous improvement ethos Superior communication and creative problem-solving skills Social judgement skills (Mumford, MD et al. (2000) (Viljoen J & Dann S (2000); Mumford, MD et al. (2000))

28 ISO Leadership and Top Management ISO 55000: Leadership commitment from all levels is essential for successfully establishing, operating and improving AM in organisations Top Management Responsibilities Developing AM policy, AM objectives and aligning with Organisational policy Recognize & resolve conflicts between internal culture of the organization & the performance of its asset management system Organizational design principles that align Organizational management to AM system Important that (overall) ownership & accountability for asset management remains at top management level!

29 Leadership Responsibilities (all levels) Involvement in planning, implementation and operation of the AM system Ensuring that appropriate resources (financial, human, IT) are available to support AM system Communicate organization s AM objectives and importance of AM system to all employees, customers, suppliers, contractors and other stakeholders

30 Evidence base? Identified in: AM policy, AM objectives & alignment Communication plan, conflict management and resolution framework, stakeholder management plan, know and map culture, job descriptions

31 CULTURE & CHANGE MANAGEMENT

32 ASSET MANAGEMENT CULTURES When an organization supports asset management initiatives longlife, efficiency and sustainability outcomes are more likely to result May involve: training employees to identify & communicate AM requirements to reflect rewards & recognize & motivate all level of management to support But sub-cultures exist & can be problematic (tribalism) Have to overcome silos both mental & physical/structural An ideal culture hybrid Safety, Performance & Quality Role of managers/leaders to balance and provide meta-cultural vision Keast &Brown 20 October 2014

33 ISO Management of culture Asset Management System relationship to Asset Management Leadership, culture, motivation, behaviour - significant impact on AM objectives but may be managed outside AM system Context of the Organisation Internal context includes organisational culture and environment Vision, mission and values Leadership Recognise and resolve culture clashes Elements of an Asset Management System Organisational context Leadership Culture, then is embedded within elements of AM System Keast &Brown 20 October 2014

34 AM Cultures Source: Murphy 2010 Keast &Brown 20 October 2014

35 Organisational Management: Asset Management Culture Factors in Asset Management Culture Tsang (2002) suggested improving strategic asset management may require: the empowerment of employees, teamwork, participation and autonomy, effective communication, education and training, appropriate rewards and recognition, and trust in management

36 AM BenchmarX: Asset Management Cultures It is important to understand Asset Management cultures to improve performance The output is a diagram of the competing demands within asset management organisations

37 Asset Management Culture: Metrics Benchmarking tool designed to help asset management organisations better understand asset manager s attitudes and behaviour Keast &Brown 20 October 2014

38 Organisational Management: Change Management Stages 1 setting goals and defining the desired future state diagnosing the present condition in relation to these goals defining the transitional activities and commitments needed to achieve the desired future state 2 3 developing strategies and an action plan to manage the transition and reach the desired future state. Beckhard R (1969)

39 Organisational Management: Change Management Scales of Change 1 Fine tuning Usually done at a departmental or divisional level and involves an ongoing process to match the organisation s strategy, processes, people and structure Incremental 2adjustment Is characterized by more distinct modifications to management processes and organisational strategies Modular 3transformation Involves major changes to one or several departments of divisions 4 Corporate transformation Is characterized by radical alterations in the business strategy and include reorganisation, revsion of interaction patterns, reformed organisational mission and core values

40 ISO Management of Change Review consequences of planned and unplanned change (for example - scenario planning) Organisational change arenas Organisational structures, roles or responsibilities AM policy, objectives, plans Processes and procedures for AM activities New assets, asset systems, or technology External factors incl. new legal or regulatory requirements Supply chain constraints Demands for goods and services Demands on resources Develop organisational capability to make evidence-based decisions on proposed changes (for example, transition management) Keast &Brown 20 October 2014

41 Organisational Management: Change Management Barriers to change Six key barriers to change: top-down or laissez-faire senior management style unclear strategy and conflicting priorities an ineffective senior management team poor vertical communication poor coordination across function, businesses or borders inadequate down-the-line leadership skills and development. (Osborne and Brown,2005)

42 Asset Management Capability Maturity Model AM Audit for ISO preparedness Asset Management Policy 8.1 Whole-of-Government Policy Model Addressing Community Concerns Asset Management Objectives Asset Management Strategy Level of Stakeholder Engagement Acquisition Plan Stakeholder Engagement Stategy Operations Plan Sustainability Management Risk Management Maintenance Plan Disposal Plan Organisational Culture 2.1 Performance and Condition Monitoring Organizational Competencies and Skills 2.2 Corrective and Preventive Actions Change Management 2.3 Procurement Leadership Relational Knowledge Management Information System Corporate Governance Data Management Asset Register Organisation A Industry Benchmark

43 Asset Management Capability Maturity Model

44 TOOL KIT

45 Key Capabilities (cont d) Understanding the requirements for good practice asset governance within government and industry Body of Knowledge for integrated strategic asset management Documentation about Best Practice from industry and research. Case study examples 10

46 Asset Management Capability Maturity Model

47 Policy & Strategy Delphi for Asset Management Policy Delphi method seeks to generate widest divergence of views in asset management and then come to consensus Speedy method when time is short or reliable fast response is required.

48 AM NetworX: Network Analysis The processes of the ISAM framework are presented here as a network map Each node represents a coordinator for each of the functions of asset management The ties between the nodes are the relationships that must exist for efficient service delivery The network map provides a blueprint for an ideal model for organisations to use in strategic asset management The aim is to structure organisational charts and processes in the most efficient manner possible for service delivery

49 AM BenchmarX: Asset Management Cultures It is important to understand Asset Management cultures to improve performance The output is a diagram of the competing demands within asset management organisations

50 With contributions from: Professor Yvonne Brunetto Dr. Silvia Neilson Dr. Matt Xerri Dr. Dan Chamberlain Dr. Anna Wiewiora Dr. Nateque Mahmood Ms Mary McGeogh Mr Martin Laue Keast &Brown 20 October 2014

51 Thank you

52 INTEGRATION: THE BIG PICTURE