Proactive Enterprise Asset Management | Unlocking Human Potential to Improve Asset Performance

An opinion piece by Kolosa Madikizela, Director of Enterprise Asset Management at Pragma

Proactive enterprise asset management is about more than just infrastructure and equipment. As human capital, we drive the cultural values and behaviors necessary to implement maintenance strategies and perform the activities required for optimal asset performance. However, the role that people play in proactive enterprise asset management remains under-researched, often overlooked, or deemed insignificant.

Even with advances in heavy machinery and equipment operation technologies, the need for human interaction with assets has not been eliminated. People remain a vital part of asset operations, and effectively equipping employees with the right skills to manage and operate machinery is still essential.

A People-Centric Approach to Proactive Enterprise Asset Management

Regardless of industry, organizations cannot exist without human capital. The importance of people as assets cannot be overstated. It is surprising that so few organizations prioritize human capital and lack a strategic approach to maximize this asset. History has shown that organizations that invest in their people reap the rewards. This philosophy applies now more than ever to enterprise asset management. Managing assets is critical to business performance, just as the employees tasked with operating these physical assets are. In the words of Sir Richard Branson: “Take care of your employees and they’ll take care of your business. Healthy and engaged employees are your greatest competitive advantage.”

While it cannot be executed without people, many employers overlook the human factor when it comes to strategy. The benefits of people-focused initiatives are often intangible, making them difficult to track and measure. This makes it easy for companies to favor outcome-driven initiatives while neglecting investment in their employees.

In recent years, industries have faced a growing shortage of human talent. A major driver of this issue across industries and organizations is the lack of ongoing investment in and improvement of technical training facilities. When no investment is made in operators, it directly and negatively affects asset performance.

Financial management is critical within organizations, but an outcome-only financial focus is often detrimental to employee development. In such cases, organizations cut training, wellness, and team-building budgets to the bare minimum. During tough economic times, organizations must be creative in finding ways to provide for employee programs, especially those that contribute to skill development and foster company culture. Driving proactive enterprise asset management to achieve operational excellence without investing in the people who must execute it is a futile exercise.

The Impact of the Human Factor in Proactive Enterprise Asset Management

The intangible benefits of employee investment stand in stark contrast to the costs of asset damage caused by unskilled or untrained operators. It is essential that people form an integral part of the enterprise asset management value chain. Without focusing on developing the right skill set in people to deliver quality asset management, maintenance strategies cannot be implemented successfully.

People management requires a different approach due to the intangible nature of the value they bring to proactive enterprise asset management. Therefore, a more focused and deliberate approach is required, which should include (but not be limited to):

Simply creating a warm work environment with learning opportunities is not enough. A deliberate and optimized approach, aligned with strategic objectives, is necessary to create a workplace environment that harnesses the full potential of your human capital. Key initiatives should include:

Skills development and training with clear learning paths
Employee engagement
Coaching and mentoring
Effective performance management tools based on reliable data
Change and diversity management
Retention and succession planning
Forums to openly discuss cultural, gender, and cognitive diversity and collaboration to foster inclusivity

You can’t put a price on the peace of mind that comes from knowing your team and assets are managed and operated by highly skilled employees. Task execution capability, cultural background, and personal interests can positively contribute to proactive asset management and should be considered at a strategic level.

While ownership and accountability are among the most critical values employees can bring to the workplace, they are often the most undervalued. Yet these two values can make or break an organization—including ours. To remain the leading enterprise asset management company we are today, we must ensure our people take ownership of and responsibility for the success of our strategy and objectives and execute them accordingly. The same applies to those on the front lines performing maintenance activities. The value of the human factor in the successful execution of proactive enterprise asset management must be a top priority. Effectively managing human potential to derive tangible value through improved performance will become a key differentiator for highly successful and thriving organizations.