Strategy, Planning and Control

Introduction

The purpose of the Strategy, Planning and Control functions within an organisation is to ensure the primary business processes for managing the outcome of the organisation are aligned with asset management objectives, supporting the delivery of the outcome and will deliver on their intent.

Strategy, Planning and Control demonstrates the Plan, Do, Check. Act philosophy in action

Strategy, Planning and Control refers to the three primary functions. We describe these functions as:

  • Strategy – is the summary of concepts, decisions, reasoning and principles at senior management level to provide guidance and direction for the various functions within the organisation. The “what” and “by when”
  • Planning – the range of preparation activities to formulate the tasks required to carry out the requirements of the strategy. The “who” and “how”
  • Control – once the strategy is implemented, there needs to be variety of control measures and those responsible identified to ensure we are on track to deliver the strategy. The control function should also be included within the planning phase. i.e. Understanding what controls must be established. The “how are we performing”

 

Integrated Approach

We believe in an integrated approach to strategy, planning and control for the functions across the organisation and the entire asset life cycle.

Integration refers to aligning the various Asset Management functions within an organisation to ensure the objectives are realised:

  • Risk Management
  • Portfolio Management
  • Health, Safety and Environmental Management
  • Information Management
  • Maintenance Management
  • Project Management
  • Operations Management
  • Contractor Management

The same approach is used for each of the functional hierarchy within an organisation:

  • Strategic planning and control
  • Tactical planning and control
  • Operational planning and control

 

Functional hierarchy within an organisation

Strategy

Our approach or “strategy” is setting the direction and principals for how we intend to deliver the multiple requirements of the location and equipment.

The strategy uses a risk management framework as the foundation to capture the activities and associated risks. The framework identifies the various risks at the Strategic, Tactical and Operational levels. These are reviewed and agreed upon before being assigned actions that manage the risks identified.

These actions form the strategy and direction that are assembled into plans for how the strategy will be implemented.

 

Planning

The planning functions include Strategic, Tactical and Operational activities. These activities cover artefacts such as:

  • Strategic Asset Management planning
  • Asset class planning
  • Annual Business Plans
  • Maintenance planning
  • Portfolio planning
  • Project planning

The planning functions target specific risk management actions identified within the risk register. The planning includes the resources needed, the roles and responsibilities, and the competencies for those involved, and the costs to execute the tasks identified within the plans.

 

Control

The control portion refers to establishing the actions and measures to track progress. Most organisations have well established processes to manage, coordinate, measure and report on the controlling functions. In particular the controls to manage risk.

These controls should consist of:

  • Monitoring the risk mitigation actions within the risk register
  • Establishing and implementing processes
  • Establishing KPIs for the various functions
  • Assigning accountabilities and responsibilities to team members
  • Ensuring competent and trained personnel
  • Reviewing the progress of plans within:
    • The Annual Report
    • Monthly meetings
    • Capital Expenditure progress
    • Maintenance reporting

 

Table 1 provides the summary of the integrated Strategy, Planning and Control activities for the hierarchical functions within an organisation.

Table 1: Integrated Strategy, Planning and Control Matrix

Hierarchical Functional Area Strategy Planning Control
Strategic ·  Capturing the context of the organisation

·  Understanding the requirements of stakeholders

·  Establish the organisational objectives

·  Create and implement an Asset Management Policy

·  Development and implementation of the Strategic Asset Management Plan

·  Development of risk register

·  Portfolio management planning

·  Development of the Annual Business Plan

·  Development of strategic measures

·  Align measures with corporate objectives

·  Establish reporting protocol

·  Nominating roles and responsibilities

Tactical ·  Partition the asset portfolio into specific asset classes

·  Set the Asset Management objectives

·  Determine the asset hierarchy

·  Establish the team structure for the delivery of engineering and asset management support function

·  Establish a suite of Asset Management Plans

·  Development of Master Plans

·  Inform the Annual Business Plan

·  Management of the risk register

·  Portfolio planning

·  Development of tactical measures

·  Align measures with Asset Management objectives

·  Managing risks for each area within the business

·  Establish reporting protocol

·  Nominating roles and responsibilities

Operational ·  Define project management requirements for renewals and growth projects

·  Determine the full time and contracted functions

·  Establish the team structures for maintenance and operational teams

·  Maintenance planning

·  Production planning

·  Project planning

·  Maintenance KPIs

·  Operating KPIs

·  Project KPIs

·  Establish reporting protocol

·  Nominating roles and responsibilities

 

Risk Management

Risk is a crucial driver in managing decision making criteria.

Risk is considered in both positive and negative perspectives for any organisation. We see positive risk like most, as opportunities. Opportunities to improve service or availability, reduce costs or increase efficiencies.

A corporate risk register identifies risks across various categories.

The outcome of the identified risks is the actions or strategy to manage these risks.

The strategy then informs and directs the plans to implement the actions that are managing the risks

The Plans identify the how and who will be responsible as well as the controls to track the progress.

Table 2 includes examples of business risks and how each of the Strategy, Planning and Control activities demonstrate.

Table 2: Strategic, Tactical and Operational Examples

Risk Identified Strategy Planning Action Control
Strategic:

Age of assets and remaining operational life

Establish a baseline of asset condition and align to the required levels of service Establish detail within the Strategic Asset Management Plan Provide annual reports on the state of the assets across all locations
Tactical:

Inconsistent asset register between locations and even the CMMS

Establish the asset hierarchy across all asset classes and locations Develop the asset management plans for each asset class for consistency across all sites Maintenance compliance

Asset condition ratings

Maintenance budgets

Operational:

Maintenance of remote sites

Determine a list of sites for full time and part time resourcing Establish maintenance plans and schedules to support rotating visits Maintenance KPIs

Monthly reporting

Equipment availability KPIs

 

Conclusion

  1. Identify what key function(s) are missing or lacking in detail
    1. Is there are a clear strategy?
    2. Do we know how we are going to deliver the strategy? (resources, timing, budget)
    3. Are we measuring the right things?
  2. Establish the new or revised actions
  3. Link the activities to the risk register
  4. Obtain agreement on the measures
  5. Communicate the changes
  6. Revisit every 6 months
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