The changes required to adopt the asset management framework usually involve a deep transformation of the road organization, which should be supported by strong leadership and commitment. Such leadership must be in place from the moment the need to implement asset management is first recognized so that the organization conducts, as a first step, a self-assessment exercise for identifying the required changes. Very often, the initial steps towards a corporate transformation are actively promoted by asset management champions.
Results from the self-assessment exercise typically include new or modified business processes, workflows, activities, or tools that should be put into practice. In general, organizational structures existing prior to the adoption of asset management are inappropriate to accommodate those innovations smoothly, and, therefore, the shape of the road organization must be rethought to establish the roles and information flows that will better serve the chosen approach to asset management. Moreover, the new roles will likely require new staff competencies that extend far beyond the traditional areas of road engineering.
The following sections provide greater detail concerning leadership and culture, self-assessment, champions, asset management roles, and competency requirements.
Leadership has a strong influence on the culture and behavior of all organizations. Clear direction and priorities will ensure that both significant and apparently minor decisions made across the organization support a consistent approach to achieve the business objectives. Such decisions include appropriate investment decisions to reflect the asset management strategy (UKRLG and HMEP 2013).
Below is a list of some of relevant aspects of leadership and organizational culture as applied to asset management:
The self-assessment’s aim is to benchmark the current asset management practices of the organization and identify specific opportunities for improvement (Cambridge Systematics et al. 2002). The main objectives of self-assessment include the following:
One of the most important steps in implementing asset management is to identify the organizational policies and goals to be achieved, which will define the agency’s most important priorities. Asset management is a customer-focused, goal-driven management and decision-making process. Organizational goals, policies, and budgets establish a consistent evaluative philosophy. Goals and performance measures are the levers that drive the decision framework, establishing investment scenarios that reflect levels of service and making resource commitments consistent with the perceived needs of stakeholders. Analysis procedures regarding alternative options are used within this framework (FHWA 2012).
It seems to be universal that, at least in the early stages of implementing an asset management framework, there will be a need for a champion, who can be anyone with sufficient interest and influence to promote organizational changes. A champion may be designated by someone in top-level management or he may simply emerge from among the members of the involved groups. In any case, a champion is one who does not rest until the mission is accomplished. Candidate champions include the following:
The champion for implementing an asset management framework will face the challenge of prevailing in any deliberations and debates about why such a differentiated approach is needed at all.
Arguments about the unique significance of the road system, the benefits (and complexity) of a risk-based approach, the need for mitigation strategies and contingency plans, and the interests of stakeholders are likely to be relevant to the champion (Cambridge Systematics et al. 2009).
In designing the most suitable organizational structure to support asset management, road organizations may choose either a centralized or a decentralized approach. While the former facilitates consistency of processes and work methods, it also entails the risk of making asset management appear remote for the areas responsible of service delivery, which may not fully understand the policies defined centrally. On the other hand, in some circumstances a decentralized structure may result in a fragmented asset management approach and culture.
Regardless of the organization type chosen, the roles and relationships driving asset management should clearly establish the strategic, tactical, and operational levels within an organization, as shown in Table 1.2.2.4 (UKRLG and HMEP 2013).
The asset management functions included in Error: Reference source not found are discussed throughout this manual.
Key roles for developing and delivering asset management include the following (UKRLG and HMEP 2013):
The actual positions and relationships among these roles that should be defined within each organization largely depend on the results of the self-assessment exercise.
At the basic maturity level, asset management may rely on just one person or a small group with multi-disciplinary training and experience. As the organization moves to the proficient level, asset management will involve the coordinated effort of various workgroups and multiple individuals.
Defining new roles and managing the transition from a small group to a formal, mature asset management team is an important leadership task (FHWA Transportation Asset Management Expert Task Group & AASHTO 2013). It requires a consideration of individual, team, and organizational expectations as well as a vision for how the process will change as the formal asset management team is established and developed. Figure 1.2.2.4.1 shows an example of how a transitional asset management team might be composed.
As with any major project in a road organization, the re-engineering of the corporate structure needs a project manager or project leader, who will be devoting most of his/her time to the project. A feasible candidate to play this role might be the chief executive officer of the organization or a properly empowered senior manager. The most important skill of the project manager would probably be his/her ability to build teams. The attribute list for this person should also include motivation and persistence in overcoming the inevitable barriers that appear whenever an organizational change is attempted. The project manager may come from an engineering, economics, or planning background or, preferably, from a combination of more than one of these disciplines.
A steering committee of senior managers, overseeing the work of the asset management leader, is also essential to ensure that all parts of the asset management process function together as a unit. Sufficient resources are vital to the effective implementation of asset management, including adequate training for agency staff to ensure availability of the necessary skills and understanding to implement asset management successfully.
Clear role descriptions for those carrying out asset management tasks and requirements should then be developed. There is likely to be new competency requirements within the organization and training programs in asset management to support the proposed changes.
As stated earlier, there is no single way of defining roles for asset management. However, an organizational structure suitable to delivering asset management typically includes the roles depicted in Figure 1.2.2.4.2 (UKRLG and HMEP 2013).
Senior management should identify the competencies necessary to meet the requirements for adopting asset management. Where these competencies are not available in the organization, training of staff may be required. Recruitment, mentoring, or collaboration with other authorities may also be considered (UKRLG and HMEP 2013).
If competencies or resources are not available, external support can be an effective way of addressing gaps, particularly when there is a need to build capability within the organization. It is important that ownership is retained within the agency and that asset management staff have enough knowledge to be smart purchasers.
Competencies may fall under a number of categories, including the following: