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Investing in your asset management is investing in a clearer future

June 29, 2021

Investing in your asset management is investing in a clearer future

Synopsis
4 Minute Read

To understand the road ahead, you need to know where you currently stand. With the right asset management strategy, your organization can get the clarity it needs to make the right decisions.

Senior Manager, Consulting Services – Energy and Utilities

As a leader in your organization, you know that you manage a large number of assets. Delivering on your mission requires all kinds of different equipment, structures, vehicles, and more. As operations grow, so does your asset base. But is your asset management strategy providing value for the those who pay taxes and fees for service?

For some organizations, there isn’t a clear answer and the lack of clarity can come with major costs. Four issues stand out – aging infrastructure, misunderstood asset base, a lack of objective guidance for decision-making, and limited funding. Let’s look closer at each issue.

Aging infrastructure

The backbone of our communities is reaching its end-of-life phase. Major infrastructure pieces, such as electricity lines, bridges, and buildings are due for replacement or significant repair.

Misunderstood asset base

Organizations are in various states of asset management maturity. To meet best practices in asset management, you should know what you own, how old it is, and what state it is in. Without this information, organizations will struggle to effectively manage assets.

Lack of objective guidance for decision-making

Repair or replace? The answer has major financial implications, but organizations are often making decisions without the right information at hand.

Limited funding

All of these issues are compounded by limited funding. Stakeholders expect prudent financial decision-making. Strong asset management allows you to show your work and prove that your actions are informed and correct.

Take a fresh approach to asset management

Implementing or refreshing an asset management program allows you to address the above issues. With better tools, you can understand and properly evaluate the full lifecycle costs of your range of assets.

In the long-term, an improved asset management program allows you to see where improvements can be made to reduce expenditures while continuing to provide a consistent level of service to customers. Informed decision-making improves planning, creates accurate budgets, and reduces costs.

And you can start at any stage of asset management maturity to assess your current state and develop a roadmap to strengthen your asset management based on your unique needs. Working collaboratively with an experienced, independent advisor can make the process smoother, as they will be able to provide unbiased insights.

The first step is top-down training. Buy-in and understanding are critical to success, so you need to focus on making sure your team understands why asset management matters and the benefits in their day-to-day work. After establishing buy-in, you will develop asset lists and indexes, then levels of service. Defining what you deliver helps to inform what components you need to achieve your desired outcomes.

The last step is identifying and implementing the asset management system itself. What this looks like will depend on the size and scale of your organization.

Learn more

Canada’s ageing assets are struggling to continue to provide the services that Canadians have come to expect. An improved asset management system can help your organization analyze and understand your needs. With more information, you can make better decisions, like choosing between repairing or replacing assets and eventually maintain a lower cost base.

Contact Matt Hamilton, Senior Manager, Consulting Services – Energy and Utilities, at 403.648.4209 or [email protected].

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