am culture change: leadership’s top...
TRANSCRIPT
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
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
* 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?
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
Safety PolicySafety StrategySafety Goals & Objectives
Shared Safety Vision
Safety MetricsSafety Recognition
CULTUREPeople Behaving
Safely?
What drives workplace safety?
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
People Behaving
Safely?
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
“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.
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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.”
Robert Williamson – Strategic Work Systems, Inc. – [email protected]
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 Williamson – Strategic Work Systems, Inc. – [email protected]