{"id":42841,"date":"2024-06-21T11:36:00","date_gmt":"2024-06-21T16:36:00","guid":{"rendered":"https:\/\/assetmanagementprofessionals.org\/?p=42841"},"modified":"2025-11-03T12:38:07","modified_gmt":"2025-11-03T17:38:07","slug":"making-asset-management-decisions-caught-between-the-push-and-the-pull","status":"publish","type":"post","link":"https:\/\/assetmanagementprofessionals.org\/es\/news-articles\/making-asset-management-decisions-caught-between-the-push-and-the-pull\/","title":{"rendered":"Making Asset Management Decisions: Caught Between the Push and the Pull"},"content":{"rendered":"

<\/h4>\n\n\n\n

By JD Solomon<\/em>

The chief executive of a large state port authority had the reputation of being erratic. His inner circle was a revolving door of who was on \u201cthe list.\u201d The line of \u201cdead\u201d consulting firms went out the door and into the parking lot. When it was another consulting firm\u2019s turn to step into the limelight of a big capital renewal and replacement program, the consultant did not have a good answer when one of its executive leaders asked, \u201cIs this a good thing or a bad thing?\u201d<\/p>\n\n\n\n

The consultant quickly studied the recent major capital investment programs since the chief executive took over a few years earlier. He watched as his teams began compiling the maintenance histories, condition assessments, and replacement values of all the assets under consideration for the new capital program. After two months, the consulting firm was ahead of its six-month schedule for this task.<\/p>\n\n\n\n

Then it happened \u2013 almost three months to the day from the point when the consultant firm started the data review and collection. The chief executive of the port authority walked in unannounced, quickly told everyone that he had enough information, and that it was time to move to the next step. Little explanation, little warning, and a whole lot of silence while his and the consulting firm\u2019s staffs formulated a reaction.<\/p>\n\n\n\n

Pushed by an Operations Mentality<\/strong><\/h2>\n\n\n\n

Most senior executives spend years climbing through the operational ranks. In the operational ranks, many transactional decisions are required each day. Most operational decisions are daily or weekly decisions that have limited downstream impact. Experience, expertise and rules of thumb are staples of the decision-making process. Someone just needs to make a decision to keep production moving.<\/p>\n\n\n\n

Strategic decision-making becomes the dominant paradigm when the long-time operations manager elevates into an executive role. Asset management decisions, which involve data, models and a long view, fall into the strategic decision-making classification. Here, a single decision may take months or years to make. Complexity and uncertainty are the norms. There is a strong potential for unintended consequences.<\/p>\n\n\n\n

Most new executives struggle with role transition from an operational to a strategic decision maker. Many executives never do. Years of conditioning create a false value perception that only rapid-fire decision-making is accomplishing something. The pressure is building because the clock is ticking. Making a decision, even a haphazard one, provides some short-term relief.<\/p>\n\n\n\n

Pulled by a Desire to Do No Harm<\/strong><\/h2>\n\n\n\n

Most everyone\u2019s work lives are full of executives who wish to be viewed as the “kind executive,” the “benevolent volunteer,” or the “good friend.” In fact, most humans work hard to avoid the feelings of guilt associated with the impacts of a bad decision on themselves or those around them.<\/p>\n\n\n\n

The trouble with big decisions, including asset management decisions, is that they are game changers in the short term and the long term. Business processes change, the way people work together changes, and the organizational culture changes. The potential for unintended consequences is ever-present.<\/p>\n\n\n\n

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