The Very Real Benefits of Asset ManagementBy Victoria Wills
Effective asset management is thankless work. Because managing an asset base involves minimizing costs and risks in the long term, its benefits can often seem intangible to the average observer. This was the subject of a 2015 John Oliver sketch, which included a mock-trailer for an imagined movie called Infrastructure. The advertised film follows the plight of a “few brave souls” who “risk everything” to maintain the nation’s physical assets, and concludes with a review from Rolling Stones: “Nothing happens, and that’s probably for the best.”
Many asset managers can identify with this perception; that said, we also know that improving asset management practices can yield real and tangible results, even in the short term. This topic has been increasingly discussed among utilities and other asset-intensive business at industry conferences worldwide. Mature asset managers are increasingly looking to quantify the benefits of implementing asset management systems that allow them to maximize value for their organizations.
With this trend in mind, Copperleaf launched an initiative to improve tracking of the benefits of asset management across our client base. This effort included a partnership with the University of Southampton to study the benefits of optimization over prioritization, as well as interactive workshops with both clients and prospective organizations internationally.
The result is The Benefits of Copperleaf Decision Analytics, a comprehensive resource that details the benefits of asset management, including:
- Process Efficiencies
- Cost Savings & Avoidance
- Enhanced Risk Management
- Enhanced Investment Evaluation
- Enhanced Portfolio Evaluation
- Enhanced Portfolio Delivery
- Improved Outcomes
Each chapter is based on feedback from asset-intensive organizations, and includes real-life examples and calculations that will allow organizations to quantify the hard benefits they may receive from implementing an asset management system.
For example, we have concluded from our work with asset-intensive organizations that negative-value projects can comprise up to 5% of the discretionary investment portfolio. By implementing a more robust system of evaluation and decision-making, an organization could recover 1-5% of their discretionary budget annually.
We hope this resource provides a new way of championing the benefits of asset management within your organization! Please feel free to download our eBook by filling out the form below, or get in touch if you’d like to learn more. Also, if you have examples of the benefits your organization has achieved, I’d love to hear from you!