Organic Asset Management – Asset Stewardship’s Purest Form

Organic asset management grants you a clean slate. It leverages your business culture and business know-how as a foundation for excellence in asset stewardship.
organic asset management
Keep your unique traits untainted. Choose an organic approach to asset management.

Organic Asset Management Defined
  • A fresh start, regardless of where you have been before.
  • A greenfield approach that ensures that your work is not following a template based on prior work.
  • Only the most basic assumptions about your business are embodied.
  • Free of biased views of effectiveness, social responsibility, or environmental friendliness that can poison your culture and beliefs.
What You Can Do to Go Organic

Stay clear of pre-canned asset management approaches that shoehorn your business into their model.

Avoid regimens that can smother your business with standards, audits, and 3rd-party views of what’s considered good practice.

Leverage your in-house know-how and culture to brainstorm asset management conventions and methods.

Adopt practices that enhance asset availability, service life, and value realization while staying true to your business values and culture.

Go Organic – Benefits to Your Business

You’ll define asset stewardship for your organization.

You’ll breath  life into the way your assets are described, viewed, and managed.

Your approach to asset management will reflect your business, its character, and its values.

You’ll retain your distinctive culture, your vernacular, and your beliefs in your practices and your processes.

Go Organic – Benefits to Your Customers

Your customers choose you for a reason.  You are uniquely capable of satisfying their requirements.

Your customers depend on you to retain, and magnify, the special properties that inspired them to choose you.

Organic Asset Management – An Anology

When you perform a web search, some of the displayed search results are “paid” and some are “organic”. This link discusses the difference between “paid” and “organic” search results.

paid vs organic search

You can see that organic is genuine, untainted, and real. Paid is coerced, unnatural, and synthetic.

Paid search results go away as soon as someone stops paying. Organic search results persist because of their merit.

Make your asset management efforts a reflection of your beliefs, your culture, and your values. Stay clear of anyone else’s template for how you serve as asset stewards. Asset life cycle events are best defined by your organization’s mission and goals.

Keep outsiders, with standards, audits, and agendas at bay. Pursue your own, organic, persistent, approaches to asset stewardship.

Go Organic – Benefits to The Community

Nurture and sustain diversity and freedom of choice.

Mitigate conformance to restrictive standards and practices.

Maintain a climate that enables organizations to flourish.

Choose Organic Asset Management

Cultivate a healthy business life style. Harvest the fruits of your labor. Only you can envision, pursue, and sustain a holistic view of your business.
organic asset management
Be natural and true to your uniqueness. Adopt organic approaches to asset management.  Preserve your business as a place where fresh ideas can germinate and bloom.

Asset Life Cycles and Asset Stewardship

A Sure Path to a Higher Level of Asset Stewardship

Asset stewardship is nurtured through lively conversations among teammates about best ways to extract the most value from tangible asset investments. Evaluating asset life cycles is a natural setting to spawn such conversations.

Idea exchange among team members, who practice diverse disciplines, is essential to value creation. Teammates can stir the pot with varied perspectives on what’s important to the organization and the larger world in which it exists.

business people discussing asset stewardship

If you’ve been in business for some time, you already know something about managing assets. What’s likely to be new, going forward, is that you will convene in-house cross-functional teams to analyze your practices through each phase in an asset’s life cycle.  Team idea exchange can unlock latent knowledge and reveal ways to better exploit asset investments.

You may decide to have a single team oversee practices affecting the management of all business-critical assets.  Alternatively, you may convene teams dedicated to each major asset class.  (You’ll likely agree that the life cycle phases for cattle differ from life cycle phases for machinery.)

Asset life cycles typically include acquisition, deployment, maintenance and repair, and retirement and disposal.  Use these thought starters to inspire discussion.

Acquisition

How does your company acquire new assets?
Does it buy, rent, lease?  What factors are considered for this decision?
What criteria are used to evaluate suppliers?
Are suppliers favored on price alone?
Must assets demonstrate conformance to specifications?
You might be surprised to learn that industrial, farming, and office equipment can be found, competitively priced, at the ‘Business and Industrial’ section on eBay.
Are you willing to pay a premium for better conformance to requirements?
Are there ways better suppliers, with better products, can give you an operational advantage?

Purchasing will have one opinion about supplier selection.  The shop floor will have another.  Operations will likely have another.  Factor lead-time, quality and goodness-of-fit, and anticipated service life into your collective thinking.

Consider the downsides to buying on price alone …
The most capable suppliers may walk away when they learn there is no money to be made doing business with you.  They will likely move on to customers who team with them to achieve joint success.  You could be left with the most desperate, potentially least capable, suppliers.

Consider the example of a steel fabricator who buys steel from a higher-priced supplier because the steel is more easily machined, causes fewer problems as it’s used, and imparts characteristics favored by end customers.  The steel fabricator can successfully pass the higher steel cost on to its customers.  The steel gives the fabricator an operational advantage that’s worth its higher price while positioning the fabricator to sell at a favorable margin.

Deployment

When your company receives an asset, is it subjected to inspection, testing, or preparation for use like painting, lubrication, or cleanup?  Of these steps, what steps could your supplier perform for you to save you the steps, time, and money?  Would you be willing to pay the supplier to perform these steps for you?

Is training or orientation required as each asset is placed into service?  Could your supplier bundle this into the deal for the asset?

Maintenance and Repair

Is the asset supplier’s recommended maintenance plan considered sufficient to mitigate asset failure risk?  Are there enhanced practices, beyond those recommended by the supplier, that can further reduce asset failure risk?

Are the assets mission critical; would asset failure impair the business’ ability to operate?

Is your team tracking assets that are nearing the end of their service lives or are soon to be unavailable due to planned maintenance.

Are agreements and practices in place to ensure timely asset repair as necessary?

Retirement, and Disposal

Depleted assets might not have to disappear.  Some may be refurbished for re-use or re-purposed.

Assets may be sold for scrap.  Be cognizant of assets that contain gold, brass, copper, steel, aluminum, or plastic.

Thorough asset destruction can eliminate exposure and environmental risk – when done properly.

Assets like computers, answering machines, and digital recorders may contain sensitive information that may be accessed either accidentally or illegally.  Secure disposal processes are essential.

Assets containing batteries, hazardous materials, or bio hazards present unique and important challenges.

Recycling can make the depleted asset go away while minimizing environmental impact.  Look for materials recovery and recycling technologies that reduce surplus assets entering waste streams or landfills.

Assets requiring secure disposal can have their destruction witnessed or documented through an auditable destruction channel.

Teaming with a disposal partner ensures that disposal is performed in conformance with ever-changing environmental laws and regulations.  Proven and trusted methods are utilized.

Asset Stewardship – Improving Your Organization’s Top Line

So, you’ve gained a greater grasp on asset life cycle management and have moved up more than a step on the asset stewardship ladder.

It’s time to place your discussions about asset acquisition in a new context.  Recap the attributes you ascribed to your favored suppliers – delivery, quality, pre-delivery prep for your use, etc.  Now ask yourselves how you can apply the attributes of your favored suppliers to ways you can serve your customers as their favored supplier.

You will discover new ways to compete on factors more valuable than price.  You will identify ways to give your customers operational advantages when they choose to buy from you.  This will equip you to formulate and deliver the most compelling propositions to your customers and prospects.  You will create unrefusable offers (UROs).

You will become a more favored supplier in ways that delight your customers while maintaining or boosting margin.  Imagine being members of the team, charged with strengthening asset stewardship, who ultimately boosts your organizations top line and margins.

business colleagues celebrating asset stewardship success