High-Performance Asset Management: A Guide to Excellence in Facilities Management

High-performance asset management is a comprehensive approach aimed at maximizing the value of an organization's physical assets. Falling within the broader scope of facilities management, it focuses on using metrics like utilization and total cost of ownership (TCO) to enhance facility function and utility.?

This newsletter will explore the fundamental concepts of asset management, the characteristics of high performance, the framework of a maturity model, and the essential steps toward achieving high-performing operations.

Understanding Asset Management

Asset Management Defined: Asset management within facilities management aims to optimize the value of physical assets such as buildings and equipment throughout their lifecycle. It involves strategic planning to maximize utilization, minimize TCO, and maintain the functionality and value of assets.

Key Metrics:

• Utilization Rates: Measures how effectively assets are used.
• Total Cost of Ownership (TCO): Assesses the comprehensive cost of owning and operating an asset.
• Return on Assets (ROA): Evaluates the profitability relative to the total asset value.
• Maintenance Costs: Tracks expenses associated with maintaining assets.

What Constitutes High Performance?

High Performance Explained: High performance in asset management is a value-driven approach that aligns asset management strategies with business goals. It involves investing in people, processes, and physical environments to achieve industry-leading performance.

Focus Areas:

• Employee Training: Ensuring staff have the necessary skills and knowledge.
• Efficient Processes: Streamlining operations to reduce waste and improve efficiency.
• Well-Maintained Assets: Regular upkeep to prevent breakdowns and extend asset life.

The Maturity Model

Maturity Model Overview: A maturity model provides a roadmap for assessing current performance and planning improvements. It outlines progressive stages of development and performance goals, typically including basic, developing, advanced, and high-performing stages.

Stages of Maturity:

1. Basic: Initial stage with fundamental practices.
2. Developing: Intermediate stage with improved processes.
3. Advanced: Mature stage with optimized practices.
4. High-Performing: Leading stage with industry best practices.

Core Competencies of High-Performing Asset Management Organizations

1. Establishing the Organization:
2. Understanding Asset Inventory:
3. Setting Governance Rules:

Transitioning to Sustainable Operations

1. Performance Management Competencies:
2. Cost Management:
3. Information Systems:

Achieving High-Performance Operations

1. Short-Term and Long-Term Planning:
2. Annual Planning Process:
3. Life-Cycle Asset Management:

Conclusion

High-performance asset management is a strategic approach that integrates comprehensive planning, robust processes, and effective governance to optimize the value of physical assets.?

By following a maturity model and focusing on core competencies, organizations can transition to sustainable operations and achieve excellence in facilities management.?

This journey from basic practices to high-performing operations not only enhances asset value but also supports overall business goals, ensuring long-term success and industry leadership.