AM Culture Change: Leadership’s Top...

AM Culture Change: Leadership’s Top PriorityRobert Williamson, Principle, Strategic Work Systems, Inc.

What I’ll Cover…

4 Decades, 500+ Plants/Facilities, 50 Industries, 10 Countries…

• Asset Management Life Cycle & Culture

• What Drives Asset Management

• Our Biggest Challenges

• Safety Helps Us Understand Asset Management

• Leadership and the New AM Work Culture

Robert Williamson – Strategic Work Systems, Inc. – [email protected]

Asset Management Life Cycle & Culture

OperateMaintain

Project Phase

Overall Business

Goals

CHEAP

FASTRIGHT

Project Rules (Pick 2):

Work Culture*

75% to 95%

TOD

AYPast Future

AM Work CultureOld


* Culture: Individual and collective behavior of people at work

AM Vision?AM Mission? AM Objectives?AM Budget?AM Projects?AM Policy?AM Procedures?AM Staffing?AM Communications?AM Roles & Responsibilities?

YES! (but…)

What Drives Asset Management?


TOP

MANAGEMENT

TOP

MAN

AGEM

ENT

Market Policy

Supply Chain Policy

Asset Mgmt. Policy

ESH Policy

Policies - Principles, rules, and guidelines formulated or adopted by an organization to reach its long-term goals and typically published in a booklet or other form that is widely accessible.(www.businessdictionary.com)

Strategy - A method or plan chosen to bring about a desired future, achievement of a goal, or solution to a problem. Planning and marshalling resources for their most efficient and effective use. (www.businessdictionary.com)

Overall Business Goals Drive Asset Management


Safety PolicySafety StrategySafety Goals & Objectives

Shared Safety Vision

Safety MetricsSafety Recognition

CULTUREPeople Behaving

Safely?

What drives workplace safety?


People Behaving

Safely?


“Culture eats strategy for breakfast”Peter Drucker

Mark Fields

What drives workplace safety?

Asse

t Man

agem

ent S

trat

egy

Supp

ly C

hain

Str

ateg

y

Hea

lth &

Saf

ety

Stra

tegy

Mar

ket S

trat

egy

TOP

MAN

AGEM

ENT

Com

pany

Hab

its &

Bel

iefs

MaintenanceDept.


Our Biggest Challenges

Reg

ulat

ory

Com

plia

nce

Engineering

Information

Maintenance

Procurement

Construction Installation

Operations

Logistics

Who determines business goals?

Who determines the Safety

Policy?

Who determines the SafetyStrategy?

Who are the SafetyStakeholders?

Who is responsible for Safety?

Who is accountable for Safety?

Who believes Safety

important?

Who regulates Safety?Robert Williamson – Strategic Work Systems, Inc. – [email protected]

Alignment drives workplace safety

Who determines business goals?

Who determines the AM Policy?

Who determines the AM Strategy?

Who are the AM

Stakeholders?

Who is responsible for

AM?

Who is accountable

for AM?

Who believes AM is

important?

Who regulates AM?

Alignment drives asset management


Engineering

Information

Maintenance

Procurement

Construction Installation

Operations

Logistics

ISO 55K: “Leadership” (13) “Culture” (7) (text mentions)

ISO 55000:20142.4.2 Fundamentals - Asset management is based on a set of fundamentals.c) Leadership:

Leadership and workplace culture are determinants of realization of value.

2.4.3 The relationship of the asset management system to asset management… aspects such as leadership, culture, motivation, behaviour, which can have a significant influence on the achievement of asset management objectives, may be managed by the organization using arrangements outside the asset management system.

ISO 55002:20145.1 Leadership and commitmentTop management commitment to asset management can be demonstrated by:c) establishing a strong collaborative work culture that is focused on delivering the asset management objectives;

LEADERSHIPStrategic - By Design – By Default - Accidental

WHO Leads?Top Management Middle Management Front-Line Supervisors Group Leads Team Leads


Leadership & Shared Vision Drives Work Culture

© Hendrick Motorsports

Looking at Asset “Value”

An asset is an item, thing or entity that has potential or actual value to an organization. ISO 55000:2014

Looking at Asset “Value”

Hendrick Motorsports Team Value1 $325 MTeam Value calculated February 2018

• Owner: Rick Hendrick• Championships: 12• Drivers: Chase Elliott,

Jimmie Johnson, William Byron, Alex Bowman

• Cars: #9, #24, #48, #88• Manufacturer: Chevrolet• Winnings: $24 M• Revenue: $180 M• Operating Income2: $9 M

1. Estimates based on sponsorship agreements and scale of team operations.2. EBITDA: Earnings before interest, taxes, depreciation and amortization.SOURCE - Forbes: Nascar's Most Valuable Teams 2018

Hendrick Gets “Value” FROM:• Racecars• 100 Acre Campus• Buildings• Shops & Equipment• Sponsors (“Partners”)• Haul Trucks• Aircraft• Skilled Fabricators,

Engineers, Pit Crew, …• Drivers• Manufacturer (Chevy)• “One Team” Concept:

100% Reliability Goal

An asset is an item, thing or entity that has potential or actual value to an organization. ISO 55000:2014

Historical 2018-2009

$22.8 M (2016)

Why Change?W-I-I-F-M?

What’s the BIG Opportunity?

Leadership must lead the AM culture change

AM CultureAsset Management is MORE about PEOPLE

than it is about slogans, banners,

initiatives, programs, systems, tools, and

software.Robert Williamson


RE: Management System“Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.”

W. Edwards DemingOut of Crisis

Without the right people given the right training to correctly use the system and make the right decisions, technology only gives us the opportunity to make scrap faster.

$35 Billion

Auto

mat

ion

Proj

ect


Roger Smith, c. 1986General Motors Chairman, CEO 1981 -1990

After GM spent $35 billion on GM-10 robots & automation: 1982 to 1986

“Regain manufacturing supremacy by replacing people with robots”

Ponder this…Leadership (AKA: “Top Management”) defines the work culture – by design or by default. Unfortunately, ISO-55K has NO standard for “Top Management” or for an “AM Work Culture.”


Today, the growing operations and maintenance (O&M) skills shortages coupled with more affordable labor-saving technologies make the most compelling business case for establishing life-cycle Asset Management work cultures. Old ways of O&M will be unsustainable!

1976: T.M. Husband, Maintenance Management and Terotechnology, Saxon House 1976, England.

1978: Benjamin S. Blanchard, Design and Manage to Life Cycle Cost, M/A Press, 1978, Oregon.

1982: Seiichi Nakajima, Editor, Total Productive Maintenance (TPM) Development Program, Productivity Press (English printing) 1989, JIPM (Japanese) 1982.

1984: Seiichi Nakajima, Introduction to Total Productive Maintenance, Productivity Press (English printing) 1988, JIPM (Japanese) 1984.

1986: Deming, W. Edwards, Out of the Crisis, MIT Press, 1986 (reprint July 2000), Cambridge (MA) and London (Japan 1950 -1960)

1991: W.J. Fabrycky and Benjamin S. Blanchard, Life Cycle Cost and Economic Analysis, Prentice Hall 1991, NJ.

1996: Kotter, John P., Leading Change, Harvard Business Review Press, 2012 (1996).+ Kotter, John P., Accelerate: Building Strategic Agility for a Faster-Moving World, Harvard Business Review Press, 2014.

Historical Asset Management Reading


Robert WilliamsonStrategic Work Systems, Inc.

[email protected]

April 29 – May 2, 2018Baltimore Marriott Waterfront

AM Culture Change: Leadership’s Top...

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