Bridging the Gap: Connecting Asset Management Disciplines in a World of Standards, Best Practices, and Measuring Outcomes Robert Kaehler, CPPS Bay Area Chapter

CROSSING THE CHASM - D R. G EOFFREY M OORE Marketing and Selling High-Tech Products to Mainstream Customers

Standards Technical Standards Management Systems Standards

A W ORD A BOUT B EST P RACTICES They’re for “the other guy”

Technical Standards Technical standard, an established norm or requirement about technical systems Technical standard International standard, standards suitable for worldwide use International standard Open standard, a standard that is publicly available Open standard Standard operating procedure, a step-by-step instruction to achieve a desired result Standard operating procedure Standard (metrology), an object that bears a defined relationship to a unit of measure used for calibration of measuring devices Standard (metrology) De facto standard, product or system with market dominance De facto standard

ISO – A Management System Standard

A management system is the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to achieve its objectives.processes procedures organization In simple terms "Plan, Do, Check, Act".Plan, Do, Check, Act

PAS 55

Four Key Elements to a Management System Organization Context and LeadershipPlanning and ImplementationInformation Accuracy and AvailabilityConsistency and Continuous Improvement

An example from Australia

GFMAM 39 Subjects

Why is this standard important? Moves asset management from a performance focus to a value focus Requires a systems level view of assets across their lifecycle Recognizes strong external economic and social drivers for asset management Recognizes new safety, security, energy and environmental concerns * Adapted from Thomas W. Smith, University of Wisconsin

T HE F OUR P ILLARS OF A SSET M ANAGEMENT S UCCESS Adapted from the Asset Leadership Network’s EO Working Group

ValueAlignmentLeadershipAssurance

Pillar 1 - Value Value - Assets exist to provide value to the organization and its stakeholders throughout their life cycle. Organizations shall accomplish this by: Expanding awareness and understanding of asset management by recognition and use of voluntary consensus standards. Improving internal controls, effective and efficient operations, reliable reporting and compliance to laws and regulations Addressing public safety and concerns Eliminating unnecessary expenditures Improving asset accountability and visibility Adopting and establishing asset management systems and practices in organizations that lack them. Continuously improving asset management best practices according to the organization

Pillar 2 - Alignment Expeditiously align and right size the regulatory process to enable entities to establish an asset management system that enables the optimum value from its assets to support its mission Asset management translates the organizational objectives into technical and financial decisions, plans and activities

Pillar 3 - Leadership Leadership – Leadership and workplace culture are determinants of realization of value. Organization Executive Management shall provide the leadership and demonstrate integrity in their decision making processes by establishing a culture that maximizes the value of asset management by: Clearly defining roles and responsibilities Requiring accountability and stewardship of assets across their organization Ensuring that employees are aware, competent and empowered Consulting with stakeholders Establishing performance standards to assure asset management supports achievement of organizational objectives. Establish a senior asset management officer, organizational structure and provide adequate resources to execute the asset management plan.

Pillar 4 - Assurance Asset management provides assurance that assets will fulfill their required purpose. This includes developing and implementing lifecycle processes that connect their required purposes and performance of the assets to the mission objectives. Implementing the process for monitoring and continual improvement Providing the necessary resources and competent personnel for demonstration of assurance by undertaking asset management activities and operating the AM system Improved internal controls Demonstrated adherence to your AM plan Accountability and visibility of assets Identification and correction of process deficiencies Organizations shall develop AM plans with annual performance metrics demonstrating value realization from previous budget appropriations as part of the budget process

W HAT DOES THIS HAVE TO DO WITH P ROPERTY M ANAGEMENT ?

Look Familiar? FAR (b)(1) (Contractor Plans and Systems) FAR (f)(1) ASTM E53

(b)(1) … the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective control of Government property … (and) may employ customary commercial practices, voluntary consensus standards, or industry-leading practices and standards that provide effective and efficient Government property management that are necessary and appropriate … November 15, 2012 Property Systems and Contract Compliance 26

FAR “10 Subjects” Acquisition Receipt Records Physical Inventory Subcontractor Control Reports Relief of Stewardship Utilization Maintenance Property Closeout November 15, As defined in FAR (f)(1)

FAR (b) (4) The contractor shall establish and maintain procedures necessary to assess its property management system effectiveness and shall perform periodic internal reviews, surveillances, self assessments, or audits.

Ready for ISO FAR (b)(1) (Contractor Plans and Systems) FAR (f)(1) ASTM E53

The Organization LeadershipPlansSupportOperation Performance Evaluation Improvement ISO Structure

ValueAlignmentLeadershipAssurance Deliver the Four Pillars

Up on Main Street (or maybe you’re Ashton Kutcher?)

F INAL T HOUGHTS AND Q UESTIONS Thank you for attending! I hope you had a very valuable NES this year!

C ONTACT I NFORMATION Robert Kaehler x201