Implementation Guidance
5.4 Develop the Plan
As described in Chapter 3, the plan specifies the implementing actions for increasing asset management maturity. It outlines exactly how the agency will meet its target in the context of the agency’s awareness of asset management, readiness for change, and ambitions for the asset management improvement program. This section provides guidance on developing the business case for asset management, selecting an implementation path for an agency, outlining the key activities, and assigning roles and responsibilities for the planned year. These are important steps for an agency at the beginning of an asset management improvement program. It is good practice to reassess the implementation plan periodically and update the plan to align with the budget process.
5.4.1 Develop an Asset Management Business Case
An asset management business case is the statement of the anticipated impact that the implementation of the asset management improvement program will have on the performance of the agency. A compelling business case demonstrates improved productivity, cost savings/avoidance, and risk management. Peer examples can help to “make the case.”
Business case analysis “makes the case” to management for approving and allocating resources to the implementation of the initiative. Such analysis is important because it ensures that the implementation supports the business objectives of the agency and can provide an effective mechanism for building support and communicating the importance of the initiative.
This is an important step because it brings rigor to the development of the implementation program and provides accountability for the investments required for implementation, especially if there are any near-term impacts on productivity caused by reallocation of staff time to asset management activities. Additionally, the communication of existing agency issues and risks and the potential outcomes associated with an asset management improvement program will likely prove to be very powerful as the initiative requires significant stakeholder support.
An agency may already have a standard approach to developing a business case, return on investment analysis, or feasibility study for new initiatives. In general, the following elements or analysis considerations are typical components of a business case:
• A concise description of the “deliverable” resulting from implementation, with other supporting description of what is to be implemented.
• Implementation steps.
• Major business changes required.
• Required resources (including staff and funding).
• Estimated benefits expressed in terms of the resultant outcomes. Ideally these align with the agency’s performance management objectives and address, reliability, safety, customer service, and lifecycle cost metrics.
• Risks to the accomplishment of the outcomes. This is an important consideration because risks can arise from a variety of internal and external sources. An approach that identifies risk, assesses the risks, and identifies a risk management plan is a recommended practice.
ASSET MANAGEMENT GUIDE 5-13 Agencies will approach asset management implementation in varying ways; this guide identifies three general implementation paths to consider when getting an asset management improvement program started. A key to success in implementing change of this type is clarity on the vision, the outcomes to be accomplished, and having the flexibility to be adaptive as the agency learns and an agency’s operating environment changes. Over time, an agency will establish its own path but may use these as a start.
Three potential implementation paths are identified in this guide as a starting for developing a path for your agency (Path #1: Enterprise-Driven, Path #2: Asset Class-Driven and Path #3: Capital Planning-Driven). They are provided as strategies for implementing a series of improvement projects that individually and in concert will improve asset management maturity.
The business case analysis enables management to consider the benefits, costs, and risks of assigning resources to implement the asset management improvement program and its constituent projects.
5.4.2 Decide on Implementation Path
The prior steps provide the basis for developing an overall implementation program. With a common understanding and agreement regarding the current state of asset management within the agency, the Asset Management Improvement Team can develop an implementation path comprising individual asset management improvement projects.The implementation paths are characterized in Table 5-3. The following pages provide more detail, including an overview of that path’s characteristics, benefits, attributes of agencies that may be best suited for this path, and a high-level implementation schedule with key activities.
In general, Path #1: Enterprise-Driven provides the most comprehensive opportunity to improve overall asset management practice, institutionalize its use, and yield all of the business benefits. However, it is understood that organizational context may make this a higher risk option due to lack of resources, limited executive sponsorship, lack of a champion, or other considerations. If that is the case, elements of this implementation path may be incorporated over time as an agency accomplishes success through a different path.
The resource requirements to implement an asset management improvement program will vary between agencies depending on their size, maturity, and implementation paths. This guidance cannot estimate resources necessary to complete an implementation task; however, the identified timeframe provides general guidance on the level of complexity and resources required to complete that activity. These will vary significantly depending on the size of the agency, the agency’s level of asset management maturity, and the level of resources committed to the asset management improvement program. An agency should develop the level of resources and timing for all projects that comprise the asset management improvement program and use this information in its business case analysis.
5-14 CHAPTER 5 – IMPLEMENTATION GUIDANCE
Table 5-3. Potential Asset Management Implementation Paths Potential
Implementation
Paths Path Characteristics Attributes of Agency Interested in Path
#1: Enterprise-
Driven
Enterprise initiative that starts by establishing asset management policies, strategy, and a plan that ensures a well-integrated and aligned organization.
Uses consistent, up-to-date, and increasingly complete asset inventory data to align with the agency’s performance management requirements and support all enterprise-level asset management business processes.
Requires strong executive sponsorship commitment to asset management being one of the agency’s top strategic objectives.
Staff at all levels increasingly understand how their job supports asset management.
Any size agency with any mix of modes or ages of assets.
Asset Management Champion is the Executive Level sponsor.
Staff dedicated to the asset management improvement program (full- or part- time, depending on the size of the agency).
Dedicated resources available to drive implementation, including software investment.
Agency management and staffunderstand.
#2: Asset Class-
Driven
Driven by the managers of individual asset classes who champion asset management; it does not require enterprise-level direction.
Improvements focus on the lifecycle management of individual asset classes.
Key to this implementation path is the development of lifecycle management plans for those assets within the classes involved (starting with the most critical assets).
Single- or multiple-mode agency with assets of any ages.
Asset management champion does not necessarily exist at Executive Level.
Staff are most likely not dedicated to an asset management improvement program.#3: Capital
Planning-Driven
Focuses on providing information on asset condition from a centralized asset inventory in a consistent way across all asset classes. Information can be used to improve programming and prioritization to improve asset management outcomes.
Capital improvements required to meet the level of service commitments are systematically identified and communicated.
Focus of this implementation path is more at the planning level, but it can provide a springboard for increasing awareness and then driving initiative and methods to reduce lifecycle costs.
Single- or multiple-mode agency with assets of any ages.
Asset management champion does not necessarily exist at Executive Level.
Staff are most likely not dedicated to an asset management improvement program.
Agency management and/or staffrecognize the need to prioritize the capital program in a more transparent, systematic way to more effectively use capital funds.
Some consultant support and software investment may be required.ASSET MANAGEMENT GUIDE 5-15 Potential Short-Term Improvement Activities Associated with Implementation Path #1
Detailed plan provides transparency for stakeholders and clear direction for all staff and management Clear business targets can improve accountability and performance
Centralized inventory provides simplified access to comprehensive, reliable data to support agency decision-making and asset valuation
Centralization of processes requires traditionally siloed departments to work together, which can improve coordination and communication
Lifecycle management plans (focusing on the most critical assets first) can help an agency to minimize the lifecycle costs and improve assets’ performance
5.4.3 Implementation Path #1: Enterprise-Driven
This path requires an executive commitment that makes asset management one of the agency’s top strategic objectives. Ideally this is not seen as an “asset management improvement program”; it is just the way the agency does business. It is an enterprise initiative that starts by establishing asset management policies, strategy, and a plan that ensures a well-integrated and aligned organization. This path uses consistent, up-to-date, and complete asset inventory data to align with the agency’s performance management requirements and support all enterprise-level asset management business processes. Staff, at all levels, understand how their jobs support asset management and the agency as a whole is constantly looking for opportunities for improvement. Figure 5-5 illustrates the broad elements and timeline for the enterprise-driven implementation path.