Engerati finds that value-based decision making enables better prediction, optimisation, and management of utility asset plans.
—Written by Jonathan Spencer Jones, Editor of Engerati, the Official Community Partner of European Utility Week
Engerati has published a great article on how value-based decision making empowers utilities to direct their resources to the things that deliver the most value to their business.
In this article, Stefan Sadnicki, Copperleaf’s Managing Director in Europe, shares how Copperleaf’s value-based approach helps organisations make consistent, transparent decisions to maximize the value of their assets.
Every asset is there to do a job and thus has a value, whether it’s financial or non-financial, tangible or intangible. The question is what is that value to your organisation?
Copperleaf offers a prescriptive approach to help organisations create a flexible decision-making framework that captures all the elements of value that are important to the organisation. He explains how the Copperleaf Value Framework aligns all of these measures of value to a common scale so that trade-off decisions can be a made across very different types of investments. He notes that utility investment plans are becoming more focused on customer outcomes, and remarked:
Previously it was a case of ‘I want to replace x km of cable’, i.e. being output driven. But now the focus is more on ‘what services can I provide to customers and at what cost’, i.e. optimising that balance of cost, risk and performance.
As a starting point, he recommends developing and testing some initial value frameworks to build an understanding of how the process works and the benefits it can bring to the organisation.
Read the full article here.
To learn more about value-based decision making, check out the recent webinar on “Value, Values & Asset Management Decision Making” or the Q&A with Rhys Davies, President of eAsset Management and Chair of the ISO/TC251 Committee which developed the ISO 5500x standard.