CH2M HILL 2007 City of Calgary Asset Management Organisational Design/Competency Framework John Veenstra, City of Calgary Gareth Lifton, CH2MHILL May 8 th 2012 1
Agenda Asset Mgt Strategy overview Asset Mgt Organisational Design Asset Mgt Competency Frameworks Pilots & findings 2
Infrastructure Status Report Metrics 3
Inputs; Council Priorities City Policy Legislation Objectives Growth projections Funding Asset Management Business System Black Box Are we doing things right? Linked to objectives Appropriate communication Enabled decision making Refine & corrective action Partners; Project Management Infrastructure Delivery Tangible Capital Asset (TCA) Maintenance & reporting Finance Long Range Financial Plan Integrated Risk Management Business Continuity Plan Directors Integrated Growth Committee (DIGC) Coordinated, capital supported growth Outputs; Performance; To objectives? Cost Efficient/optimized? justified Triple Bottom Line ROI Risk within tolerance Service meeting requirements Budgeting Defensible decisions Projections; Cost exposure Risk exposure Service exposure Compliance Priorities Legislation Policy Continuous Improvement Are we doing the right thing? Are we sustainable/competitive Are we making progress 4
The City of Calgary Asset Management Program Inputs; Council Priorities City Policy Legislation ALT Objectives Growth projections Funding Enablers Check Governance Continuous Improvement Act Do Plan People => organization/roles/skills/development Process => efficient/understood/executed Data => accurate/complete/valid/consistent Tools => support decisions/enable reporting Partners; Project Management Supply Management Tangible Capital Asset reporting Finance Business Plan and Budget Coordination Integrated Risk Management Directors Integrated Growth Committee (DIGC) Outputs; Reporting Current & projected BU & Corp Asset performance Current & projected BU & Corp funding Gap IIPs lists Current & projected BU & Corp Practice performance Benchmarking Decision Facilitation /Support Funding allocation Objective setting Project prioritization Related Policy TCA Sustainability Planning AM Plan definition & tracking Continuous Improvement Innovation (asset & practice) Development People Data Process Tools 5
Continuous Improvement Methodology (over 3 business planning cycles - 9 years) BPBC3 BPBC4 BPBC5 2012 2013 2014 2015 2016 2017 2018 2019 2020 Check Check Check Act Act Act Plan Plan Plan Do Do Do Check (ISR & SOAM) Capture & report; infrastructure performance infrastructure condition AM practice maturity progress to CAMP & BU AMPs Identify & prioritize required investments (IIPs lists) Act Define priorities & avail. funds Define funding allocation Define objectives & allocate funding to departments Define objectives and allocate funding to programs Plan Define/update program plans (CAMP) Define/update project and LCM objectives Define/update BU plans (AMPs) Define/update team & individual objectives Resource LCM/AM plans & project plans Do Execute LCM/AM plans Execute project plans Event monitoring and tracking 6
Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 4 Business Unit 5 Business Unit 6 Business Unit 7 Business Unit 8 Business Unit 9 Business Unit 10 Business Unit 11 Business Unit 12 Business Unit 13 Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 4 Business Unit 5 Business Unit 6 Business Unit 7 Business Unit 8 Business Unit 9 Business Unit 10 Business Unit 11 Business Unit 12 Business Unit 13 Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 4 Business Unit 5 Business Unit 6 Business Unit 7 Business Unit 8 Business Unit 9 Business Unit 10 Business Unit 11 Business Unit 12 Business Unit 13 Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 4 Business Unit 5 Business Unit 6 Business Unit 7 Business Unit 8 Business Unit 9 Business Unit 10 Business Unit 11 Business Unit 12 Business Unit 13 SOAM Trend Metrics 7
State of Asset Management Current and Projected As assessed in 2008 & 2010 8
Governance Continuous Improvement People Tools Data Process Criteria Question Business Unit #1 2010 2011 2012 2013 2014 2015 2016 2017 Governance 17 3 4 4 5 System 1 3 3.5 4 5 System 2 3 4 4 5 System 6 2 3 4 5 System 7 3.5 4 4 5 System 8 3 3.5 4 5 System 9 1.5 3 3 4 System 21 2.5 3.5 3.5 5 System 28 2 3 3 4 System 29 1.5 2 3 5 System Avg 2.4 3.3 3.6 4.8 People 3 2 2.5 3 4 People 18 2.5 3 3 4 People 19 1.5 2 3 4 People 20 2 3 3 4 People 22 1 1 2 3.5 People Avg 1.8 2.3 2.8 3.9 Tools 4 2.5 2.5 3 5 Tools 13 2 2.5 3.5 5 Tools 14 2.5 3 3 5 Tools Avg 2.3 2.7 3.2 5.0 Data 10 3 3 4 5 Data 11 1 2 3 5 Data 12 1.5 2.5 3 5 Data Avg 1.8 2.5 3.3 5.0 Process 5 2 3 4 5 Process 15 3 3 4 5 Process 16 1.5 2 4 5 Process 23 3 3 4 5 Process 24 3.5 3.5 4 4 Process 25 3 3 3.5 5 Process 26 3 3.5 4 5 Process 27 2 3 3 4 Process Avg 2.6 3.0 3.8 4.8 5.5 5 4.5 4 3.5 3 2.5 2 1.5 Governance System People Tools Data Process 9
Asset Management Program Implementation 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Define AM Governance Structure Draft AM Org Structure Implement Governance Reviews CPAM/AM Organization Manager : Lead, AM Planning: Lead, AM Info. Services: Lead, AM Reporting: Status: G Steve Wyton Narinder Bubbar Dallas Smith John Veenstra Complete & Present CAMP Develop AM training Issues & Risks: Governance: AM Governance alignment to related initiatives unclear Planned Actual Highlights (prior 12 months): System: Governance structure defined People development: AM organization defined Process development: Draft capital prioritization process defined Data: Data map completed Tools: AM Tools architecture defined RIVA implementation plan completed Plan (next 12 months): System: Schedule ongoing governance review meetings People development: Identify AM role requirements Implement AM Overview training to indentified roles Define capital prioritization training material Process development: Data automation for CAReg Data: Define current data gaps Tools: Implement RIVA implementation plan People development: Resource availability for training Process development: Stakeholder availability Resource priority conflict with EAM upgrade Data: Lack of data availability Tools: Remedy SME is leaving 10
Competency Framework Objectives Define : Project Scope 1. A generic Asset Mgt organizational design, 2. Asset Mgt Roles, competencies and skills, that can be applied within the Business Units in support of the ongoing development of the practice of Asset Management by City business units. 11
Organisational Design Review Reviewed 7 organisations in UK & North America 4 Water Utilities 1 Public Works Department 2 Electricity Utilities Aim - Identify the high performing organisations E.g. PAS 55 Certification Viewed as leading performers in their area etc 12
Best Practice OD Model (Asset Mgt) - For use at the Business Unit level Benchmarking Business Planning Policy & Strategy Development Regulatory/Council Interface Demand forecasting Performance Target setting Business Strategy Asset Strategies Investment Planning Asset Standards Level of Service Definitions Asset Information & systems Create and communicate the Asset Mgt Plan Business Continuity & contingency planning Asset Strategy Investment Delivery Asset Risk Asset Analysis/Performance Analysis Life cycle analysis Project identification Capital Team (project sponsors, project sign off) Asset Planning Project/Program Management Contractor/sub contractor Mgt Stakeholder Mgt Service delivery Work Management Incident Management Emergency Planning Minor Capital Works O&M 13
Competency Frameworks - Review 1. 2008 Asset Mgt Competence Requirements Framework, Institute of Asset Management 2. Asset Mgt Council of Australia Certification Scheme (Aus) 3. Engineering Construction Industry Training Board Project Mgt Competence Framework 4. Certified Mgt Accountant Competency Map 5. Scottish Credit and Qualifications Framework (UK) 6. The National Occupational Standards for Mgt and Leadership (UK) 14
Selected Competency framework - Institute of Asset Management Focus is on Output Measures 7 key areas supported by activities and associated competencies. Strengths AM Focused Easy to Understand Easily modified/customised Weaknesses Not specifically developed for municipal use Priorities not set out and must be assessed by user 15
27 Units of Competence in the 2008 IAM Framework and their distribution across the 7 Key Areas Key Purpose: TO OPTIMISE THE DELIVERY AND PERFORMANCE OF PHYSICAL ASSETS POLICY DEVELOPEMENT STRATEGY DEVELOPEMENT ASSET MANAGEMENT PLANNING IMPLEMENT ASSET MANAGEMENT PLANS ASSET MANAGEMENT CAPABILITY DEVELOPMENT RISK MANAGEMENT AND PERFORMANCE IMPROVEMENT ASSET KNOWLEDGE MANAGEMENT 16
Key Areas (IAM) Activities Competency Elements Policy 1 Analyse Policy Requirements 4 1 Development 2 Develop the AM Policy 6 3 Analyse strategic requirements 7 Strategy 4 Forecast and analyse future user requirements and demands 4 2 Development 5 Develop the AM Strategy 5 6 Plan the implementation of the AM Strategy 5 3 4 5 6 7 Asset Management Planning Implement Asset Management Plans Asset Management Capability Development Risk Management and Performance Improvement Asset Knowledge Management Key Areas -> Activities -> Competencies 7 Appraise investment options 5 8 Apply whole life costing principles 8 9 Create and acquire assets 6 10 Plan for contingencies 4 11 Develop and communicate AM Plan(s) 6 12 Control operations 5 13 Maintain assets 7 14 Optimise and rationalise assets 5 15 Renew or dispose of assets 5 16 Develop and deploy AM people and teams 7 17 Develop and Deploy Suppliers 6 18 Design and Manage Organisational Change 4 19 Shape the AM Culture 4 20 Assess and manage risks 6 21 Assure the quality of AM processes 4 22 Monitor and review progress and performance 5 23 Review and Audit Compliance with Legal, Regulatory, Ethical and Social Requirements 6 24 Learn from incidents 3 25 Define Asset Information Requirements 7 26 Specify, Select and Integrate AM information Systems 6 27 Make Appropriate AM Information Available for Decision Making 5 145 17
Key Area -> Activities -> Competencies (Detail) Key Area 1 POLICY DEVELOPMENT 1 2 Activity/Unit Analyse Policy Requirements Develop the AM Policy Competency Elements Define the corporate/council goals the AM Policy must help E1.1.1 achieve Define the stakeholder requirements the AM Policy must E1.1.2 address Define the opportunities and constraints the AM Policy must E1.1.3 take into account Define the stakeholder groups and socio-economic issues the E1.1.4 AM Policy must take into account E1.2.1 Define the decision criteria for selecting amongst Policy options E1.2.2 Assess Policy options using appropriate decision criteria E1.2.3 Define the AM Policy goals and aspirations E1.2.4 Define the implications of the AM Policy for all stakeholders Make effective use of internal and external expertise in the E1.2.5 development of AM Policy Make sure stakeholders are engaged in AM Policy development E1.2.6 as appropriate 18
E1.1.1 E1.1.2 E1.1.3 E1.1.4 E1.2.1 E1.2.2 E1.2.3 E1.2.4 E1.2.5 E1.2.6 E2.1.1 E2.1.2 E2.1.3 E2.1.4 E2.1.5 E2.1.6 E2.1.7 E2.2.1 E2.2.2 E2.2.3 E2.2.4 E2.3.1 E2.3.2 E2.3.3 E2.3.4 E2.3.5 E2.4.1 E2.4.2 E2.4.3 E2.4.4 E2.4.5 E3.1.1 E3.1.2 E3.1.3 E3.1.4 E3.1.5 E3.2.1 E3.2.2 E3.2.3 E3.2.4 E3.2.5 E3.2.6 E3.2.7 E3.2.8 E3.3.1 E3.3.2 E3.3.3 E3.3.4 E3.3.5 E3.3.6 E3.4.1 E3.4.2 E3.4.3 E3.4.4 E3.5.1 E3.5.2 E3.5.3 E3.5.4 E3.5.5 E3.5.6 E4.1.1 E4.1.2 E4.1.3 E4.1.4 E4.1.5 Best Practice (Efficient) Asset Mgt OD Model 12 of the 27 Competencies shown 1.Analyse Policy Req 2.Develop The AM Policy 3.Analyse Strategic Req. 4.Forecast & Analyze future demand 5.Develop the AM Strategy 6.Plan the Imp of the AM Strategy 7.Appraise Investment Options 8.Apply Whole Life Cost Principles 9. Create & Acquire Assets 10.Plan for contingencies 11.Develop and communicate AM Plan(s) 12.Control operations Function Business Strategy Asset Strategy Asset Planning O&M Investment Delivery Analyze Policy Requirements Analyze strategic requirements Forecast and analyze future user requirements and demands Design and Manage Organizational Change Review and Audit Compliance with Legal, Regulatory, Ethical and Social Requirements Develop the AM Policy Develop the AM Strategy Plan the implementation of the AM Strategy Appraise investment options/investment Planning Develop and communicate AM Plan(s) Optimize and rationalize assets Develop and deploy AM people and teams Shape the AM Culture Assure the quality of AM processes Monitor and review progress and performance Make Appropriate AM Information Available for Decision Making Specify, Select and Integrate AM information Systems Apply whole life costing principles Create and acquire assets Plan for contingencies Maintain assets Renew or dispose of assets Assess and manage risks Learn from incidents Control Operations Develop and Deploy Suppliers Define Asset Information Requirements Maintain assets Develop and Deploy Suppliers Control Operations Develop and Deploy Suppliers Roles Business Strategist Strategy Planner Asset Planner Project Manager Individuals requires a manageable number of competencies. Enables specialism/to become experts etc Very little/if any overlap of competencies between Depts. Similar skill sets housed within single departments 19
Team 1 Team 2 Team 3 Team 4 Team 5 Team 6 Team 7 Team 8 Team 9 Team 10 Team 11 Team 12 City of Calgary - Business Unit 1 Asset Management Activities 1Analyse Policy Requirements S S S S S S 2Develop the AM Policy S S S 3Analyse strategic requirements S S S S S S S 4Forecast and analyse future user requirements and demands S S S S Current activities 5Develop the AM Strategy S S S S S S S S Future activities 6Plan the implementation of the AM Strategy S S S S S S S 7Appraise investment options S S S S S S 8Apply whole life costing principles S S 9Create and acquire assets S S S S S S S 10Plan for contingencies S S S S 11Develop and communicate AM Plan(s) S 12Control operations S S S S 13Maintain assets S S S S 14Optimise and rationalise assets S S S S S S S 15Renew or dispose of assets S S S S S S S 16Develop and deploy AM people and teams S S 17Develop and Deploy Suppliers S S S S S S 18Design and Manage Organisational Change S S 19Shape the AM Culture S S S 20Assess and manage risks S S S S S 21Assure the quality of AM processes S S S 22Monitor and review progress and performance S S S S S S 23 Review and Audit Compliance with Legal, Regulatory, Ethical and Social Req. S S 24 Learn from incidents S S S S S S 25 Define Asset Information Requirements S S 26 Specify, Select and Integrate AM information Systems S S 27 Make Appropriate AM Information Available for Decision Making S S S 20
BU Asset Mgt Competency Assessment Focus competency assessment at the BU level 3 focus areas within the assessment 1. Does the BU have the correct competencies and at the right level? 2. Is the BU organizationally efficient? 3. Is there evidence to support the above? Output: Quick overview of Asset Mgt competencies across the City Identification of potential training focus areas e.g. life cycle planning Potentially could be used to develop Corporate Wide competency improvement plan (Individual competencies will take longer to assess) 21
Key Areas (IAM) Activities Competency Elements Policy 1 Analyse Policy Requirements 4 1 Development 2 Develop the AM Policy 6 3 Analyse strategic requirements 7 Strategy 4 Forecast and analyse future user requirements and demands 4 2 Development 5 Develop the AM Strategy 5 6 Plan the implementation of the AM Strategy 5 3 4 5 6 7 Asset Management Planning Implement Asset Management Plans Asset Management Capability Development Risk Management and Performance Improvement Asset Knowledge Management BU Asset Mgt Competency Assessment 7 Appraise investment options 5 8 Apply whole life costing principles 8 9 Create and acquire assets 6 10 Plan for contingencies 4 11 Develop and communicate AM Plan(s) 6 12 Control operations 5 13 Maintain assets 7 14 Optimise and rationalise assets 5 15 Renew or dispose of assets 5 16 Develop and deploy AM people and teams 7 17 Develop and Deploy Suppliers 6 18 Design and Manage Organisational Change 4 19 Shape the AM Culture 4 20 Assess and manage risks 6 21 Assure the quality of AM processes 4 22 Monitor and review progress and performance 5 23 Review and Audit Compliance with Legal, Regulatory, Ethical and Social Requirements 6 24 Learn from incidents 3 25 Define Asset Information Requirements 7 26 Specify, Select and Integrate AM information Systems 6 27 Make Appropriate AM Information Available for Decision Making 5 145 22
Competency OD Efficiency Evidence BU Asset Mgt Competency Assessment Comp Level OD Efficiency Evidence Score 4 5 Activity's Forecast and analyze future user requirements and demands Develop the AM Strategy Beginner (1) Staff within the BU only have a basic understanding of this competency Staff within the BU only have a basic understanding of this competency Intermediate (2) Advanced (3) Basic OD (1) Improving OD (2) Optimal OD (3) Evidence of Competence Standard Minor (1) Partial (2) Full (3) Staff within the Staff in the BU Organisation has Organisation has The BU uses effective tools and The organization The organization The organization can BU have a have an clearly defined RACI techniques to analyse current can show evidence can show evidence show evidence that working advanced that staff are in the that they have they have applied knowledge of understanding process of applying made significant applicable staff the competency and are fully conversant with the subject matter. Staff within the BU have a working knowledge of the competency and are fully conversant with the subject matter. of this competency and could be considered to be subject matter experts Staff in the BU have an advanced understanding of this competency and could be considered to be subject matter experts Organisation has an informal understanding of RACI. Organisation has a significant degree of duplication and/or a very unclear RACI for this activity. Boundaries frequently overlap and tensions exist regarding ownership of this activity. Organisation has an informal understanding of RACI. Organisation has a significant degree of duplication and/or a very unclear RACI for this activity. Boundaries frequently overlap and tensions exist regarding ownership of this activity. formally considered and defined RACI for this activity either formally or through organizational design. There remain some minor inefficiencies and duplications of roles & responsibilities and boundaries sometimes overlap but the key driver of this activity is generally accepted and respected. Organisation has formally considered and defined RACI for this activity either formally or through organizational design. There remain some minor inefficiencies and duplications of roles & responsibilities and boundaries sometimes overlap but the key driver of this activity is generally accepted and respected. for this activity. Roles and responsibilities are clear and are consistently respected. Boundaries are acknowledged and respected and there is a high degree of consultation and team working to ensure that activities are completed and maintained as appropriate. demands and to forecast costs and demand. Robust historical data is used to support these forecasts of demand and costs. The BU forecast and assess relevant external products and technological developments and the effects of these Organisation has The aims and objectives of the AM clearly defined RACI Strategy have been defined. Key for this activity. Roles and responsibilities are clear and are consistently respected. Boundaries are acknowledged and respected and there is a high degree of consultation and team working to ensure that activities are completed and maintained as appropriate. strategies have been developed for the overall system, asset portfolios and/or asset groups that support strategic aims and objectives and the expected outcomes of all AM strategies have been defined. Stakeholders have been engaged in the strategy development process as appropriate. The BU has made effective use of internal and external expertise in the strategy development. their competencies. Evidence exists to show that work is underway and that staff are actively engaged in work relating to this activity. The organization can show evidence that staff are in the process of applying their competencies. Evidence exists to show that work is underway and that staff are actively engaged in work relating to this activity. progress in applying competencies in the this activity and application of this that applicable staff activity. Evidence is competencies have, available to show that and continue to be, all facets of this actively engaged in activity have been this activity and generated through that evidence of business as usual and competence is that staff being generated competencies are through business as being utilized to usual. maintain currency and applicability of the outcomes of this activity. The organization can show evidence that they have made significant The organization can show evidence that they have applied applicable staff progress in applying competencies in the this activity and application of this that applicable staff activity. Evidence is competencies have, available to show that and continue to be, all facets of this actively engaged in activity have been this activity and generated through that evidence of business as usual and competence is that staff being generated competencies are through business as being utilized to usual. maintain currency and applicability of the outcomes of this activity. 3.0 2.0 2.0 3.0 2.0 2.0 23
BU Asset Mgt Competencies - Example output 21 23 22 20 25 24 19 18 Are staff competent from an Asset Mgt Perspective? Competency 17 26 27 16 3.0 2.5 2.0 1.5 1.0 0.5 0.0 15 1 14 2 13 3 4 5 6 7 9 10 11 12 21 23 22 20 8 25 24 19 18 17 Evidence 26 27 16 3.0 2.5 2.0 1.5 1.0 0.5 0.0 15 1 14 Are staff delivering? 2 13 3 4 5 6 7 9 10 11 12 8 22 21 23 20 25 24 19 18 OD Efficiency 17 26 27 16 3.0 2.5 2.0 1.5 1.0 0.5 0.0 15 1 14 2 13 3 4 5 6 7 9 10 11 12 8 Is the OD efficient from an Asset Mgt Perspective? 24
Conclusions (1) Many Business Units are not structured for efficient/effective Asset Mgt Departmental structure is historic Roles in teams have grown organically Many of the competencies exist, but sometimes in the wrong teams Result is individual teams within the Business Unit s are often carrying out similar activities. Therefore: Asset Mgt being carried out in small disperse teams across the Business Unit Result is that individual Business Unit staff require a large number of competencies Likely outcome = staff will remain at lower level competency over a broad range of competencies, as opposed to discreet teams/individuals being able to advance their competency levels 25
Conclusions (2) Lessons from the pilot trial; Some Business Units require an Asset Mgt Primer, to bring them up to speed with the concepts behind a comprehensive approach to Asset Mgt. Conduct the Business Unit assessment with broad range of staff from across the Business Unit Don t dictate a prescribed OD structure, adapt the model for use in individual Business Unit s Demonstrated value from the pilot; The tool identified opportunities to improve how the Business Unit is achieving its AM activities Value in mapping the current Business Unit organization, hierarchy and where AM activities are being carried out Compare current OD & competencies with international AM best practices Identifies where the Business Unit can hone competencies Provides a method for continuous improvement (possibly reassess in 6 months) Future Uses Identify City wide strengths & weaknesses Training within and across Business Unit s Development of corporate wide training programs/initiatives 26