Module 04: Organisation and Development


AM Organisational Structure Responsibility for asset management is fragmented throughout the organisation, which is functioning in silos. The Maintenance Department is totally divorced from the Operations Department, and other AM functions are often performed by Maintenance as add-on tasks.  Most of the AM functions exist, but are still isolated:
• The Engineering Manager is not part of senior management.
• Maintenance is coordinated centrally and operates across all areas with no specialisation or ownership.
• Maintenance foremen are in place.
• Legal EHS appointments are in place.
•A specific Projects Department exists.
A formal AM structure has been defined and partially  implemented:
• A member of top management is responsible for AM goals and activities.
• Some maintenance is decentralised for ownership, with rotation for training.
• The responsibility for AM systems, standards and projects is centralised.
• The structure provides for maintenance planning and administration.
• Resource requirements are based on historical information.
The AM organisation is effective and efficient:
• Single point of responsibility for all AM.
• 1st line maintenance is integrated with Operations and managed by an Engineer.
• A central maintenance team provides support and performs complex work.
• Planners: Artisans in a 1:20 ratio.
• Resource requirements are based on the long term strategy and planning.
• Contractors are used for peak loads and non-core or specialist tasks.
The AM organisation is mature and flexible:
• Employees are empowered without unnecessary layers of management.
• Cross-functional first line teams focus on improving asset performance.
• A cross-functional middle management team optimises AM systems.
• People on all levels act as champions for specific AM initiatives.
• The structure is reviewed regularly according to the strategy and priorities.
Roles and Responsibilities Asset management roles and responsibilities are unclear, resulting in the allocation of blame and counter-productive arguments. Duplicated responsibilities lead to frustration and under utilisation of peoples skills. AM responsibilities have been defined by HR in job descriptions:
• Job descriptions exist but do not always reflect the real situation.
• Many different job categories exist.
• Job demarcations restrict the utilisation of peoples skills.
• The role of supervisors and managers is to command and control.
Roles and responsibilities are reviewed according to the AM Policy and Strategy:
• Job descriptions have been reviewed inclusively and accepted by employees.
• Supervisors and managers focus on planning and training.
• Relaxation of strict trade and job demarcations allows flexibility.
• Knowledge and skill requirements of critical AM positions have been defined.
Roles and responsibilities are designed for the ideal AM organisation:
• Responsibilities allocated for all elements of the  AM Policy and Strategy.
• Interfaces between functions are clear.
• The focus is on multi-tasking and teamwork, with some cross-skilling.
• Supervisors and managers focus on coaching and leadership.
• A detailed competency framework is in place for all AM positions.
Responsibilities are flexible according to team goals and roles:
• People are cross-skilled and able to perform a variety of functions.
• Specific roles in the team context are defined according to team objectives.
• Flexibility is high and people adapt to new roles.
• Future roles and competencies are defined as part of strategic planning.
Recruitment No formal system exists to plan for or recruit AM employees. Turnover is high, many vacancies exist and it is common to find wrong placements, leading to frustration and inefficiency. A system is in place to recruit people according to job requirements:
• Job descriptions and qualification requirements exist for all AM positions.
• HR recruits and appoints people based on the specified criteria.
Recruitment is in line with the AM Policy and AM Strategy:
• Recruitment is driven by the new AM strategy, reviewed job descriptions and associated AM organisational structure.
• A basic work load analysis exists.
• Line management participates actively in the recruitment process.
• Most positions have been filled.
Recruitment is scientific:
• Resource needs are based on a detailed work load analysis.
• Recruitment is based on a formal competency requirements analysis.
• Scientific psychometric tests and skill evaluation methods are used.
• All positions have been filled.
Recruitment is used to ensure future competitiveness:
• Future competency needs have been defined and are reviewed frequently.
• Potential employees with the right competencies are identified proactively.
• The organisation is viewed as a preferred employer in its industry.
Induction Training New employees do not receive formal induction training beyond the normal 2-hour safety briefing and overview of general policies and procedures. Employees learn how to operate and maintain the equipment through trial and error. Induction training is informal and limited in scope and content:
• A basic induction programme is used to train new recruits.
• It covers the organisations structure, physical layout, policies and procedures.
• Specialists provide ad hoc equipment training.
• Detailed equipment knowledge is picked up from other employees.
Formal induction training has been introduced, but is not mature:
• The induction programme includes  elements of asset management.
• The AM Policy, Strategy and Master Plan are explained to new employees.
• Key AM procedures are covered.
• Key employees get job-specific equipment training when recruited.
• Progress is reviewed after 3 months.
The AM induction programme is mature and effective:
• The induction programme is aligned with the AM job requirements.
• All applicable AM procedures are explained to new employees.
• All AM employees get job-specific equipment training.
• New employees have regular reviews and a formal assessment after 3 months.
Employees participate in the induction programme:
• Employees help to develop material for the induction programme.
• Experienced employees help to get new employees up to speed.
• Employees who are transferred or promoted receive induction training.
Competency Development Little or no formal training is done in the organisation, except to comply with legislation (e.g. general safety awareness). No written training material exists and competency assessments are not done. The result is low skill levels and frequent errors and delays during AM activities. Training is informal and unstructured:
• Formal external training is coordinated by the HR Department.
• Training is opportunistic and reactive, instead of being planned proactively.
• Experts present some ad hoc in-house training about equipment.
• Management has acknowledged the need to formalise training.
A formal training and development programme has been introduced:
• Training is a priority item in the AM Strategy.
• Skills matrices and training plans are in place for key AM employees.
• All AM employees have been trained in the core AM procedures.
• Applicable training material and external courses are available.
The formal competency development programme is in place and effective:
• Skills matrices and training plans exist for all AM employees.
• They are aligned with job descriptions and competency frameworks.
• Engineering and Operations staff have good technical and equipment skills.
• Some cross-skilling among trades.
• A formal competency assessment system is in place for all training.
Skills development is a way of life:
• In-house trainers have been developed.
• Team members help to develop training material.
• Leadership and interpersonal skills are trained at all levels in the company.
• Opportunities exist to acquire ancillary skills, e.g. maths, computer literacy.
• Cross-skilling is widespread.
• On-the-job and peer assessments are used frequently.
Performance Management There is no formal review of the performance of individuals or teams. The only feedback people get is when things go wrong. Performance management is informal and ad hoc:
• It is driven by the HR Department
• An annual appraisal is done for senior employees to define salary increases
• These sessions are viewed negatively by most people
• Performance against KPIs are discussed sometimes on an ad hoc basis.
The formal performance management system is aligned with the AM Strategy:
• It is covers the AM objectives and reviewed job descriptions.
• Managers understand its importance.
• The outcome is a personal development plan for employees.
• Employees are more positive about it.
• There are regular informal discussions with employees about their performance.
Performance management is mature:
• It  includes all AM employees.
• It is aligned with the competency framework and deployed KPIs.
• The link to personal development and performance improvement is understood.
• It is done formally every 6 months for individuals and monthly for teams
• It is linked to performance contracts and incentive schemes
Performance measurement is part of the culture of continuous improvement:
• It is done quarterly for individuals and teams.
• It covers both performance and behavioural aspects.
• Improvement plans are monitored and updated frequently.
• It includes peer appraisals and 360° appraisals for managers.
Reward and Recognition No formal system exists to reward or incentivise good performance. Salaries are perceived to be unfair. As a result people are demotivated and underperforming. The reward system is generic and not linked to performance:
• Salaries are generally perceived to be fair and industry-related.
• There is a company-wide bonus system (e.g. a 13th cheque).
• Management has agreed to investigate a performance based incentive system.
The rewards system is linked to achievement of the AM objectives:
• An industry survey has confirmed that salaries are competitive.
• Salaries are determined by individual performance appraisals.
• A simple bonus system is based on achievement of the AM objectives.
• There is some recognition for performance improvement activities.
Rewards are team-based and recognition is widespread.
• An incentive scheme is in place, based on team performance against KPIs.
• Salaries are performance based.
• There is wide recognition of exceptional performance.
• Managers at all levels use praise and recognition to motivate employees.
Personal rewards and recognition are also performance based:
• Personal remuneration consists of a basic salary and a performance bonus.
• The incentive scheme is transparent and fair.
• The organisation uses innovative ways to recognise the exceptional performance of teams and individuals.
Career Development Career development does not exist in the organisation. Most employees are stuck in the same position for years, or leave to better their positions. Career development is informal and limited:
• Key employees have been earmarked for promotion and development.
• When someone is promoted, a possible successor is identified.
• The process is short-term and not transparent.
Career development is recognised as a key success factor:
• Managers are aware of the principles and benefits of career development.
• The process is driven primarily by HR with input from line management.
• Career development is discussed briefly during performance appraisals.
• Succession plans exist for key AM positions.
Career development is formal and pro-active:
• Possible career paths in asset management have been defined.
• All employees discuss potential career paths with their supervisor/manager.
• Career development is driven by line management.
• Succession plans exist for most positions in Asset Management. 
Career development forms a crucial part of the long term AM Strategy:
• Most employees see a clear future for themselves in the organisation.
• Succession planning and career development are reviewed as part of the annual AM Strategy.
• Recruitment, training and career development processes are integrated. 
Ownership and Accountability An autocratic command and control culture exists in the organisation. Employees are not trusted or given any responsibility for major decisions. There is no accountability, resulting in demotivated and disengaged employees.  Ad hoc pockets of ownership and accountability exist in the organisation:
• Some managers are giving certain employees more responsibility.
• Examples exist of employees going beyond the call of duty.
• Some examples of effective work teams exist in the workplace.
• The organisations culture is still largely focused on control.
Ownership and accountability are key focus areas for management:
• Management understands how empowerment, accountability and performance are linked.
• The organisational structure makes provision for greater empowerment.
• Some examples exist of progress with employee empowerment.
Empowerment has lead to greater ownership and accountability:
• The AM Policy spells out the end state vision for empowering employees.
• Responsibilities allow for decision making at lower organisational levels.
• Employees are encouraged to suggest possible ways to improve performance.
• Teams have taken ownership of their physical work areas and performance.
Empowered teams drive the day to day performance improvements:
• Ownership and accountability are central themes in the AM Strategy.
• Front line teams are playing a leading role in performance improvement.
• Surveys show that most employees are very motivated and engaged.
• Managers/Supervisors play a coaching and supporting role.