All entries for Wednesday 13 April 2011
April 13, 2011
I was thinking earlier, that asset management is effectively everything you have to do in business, that isn't directly what you are trying to do in business! What I mean is, it is everything but the product or service that you offer, and the processes or functions that support it. It is one of the most important business enablers, and to do it well is something of a skill. In fact, the Institute of Asset Management has this to say:
"Asset Management is the art and science of making the right decisions and optimising these processes."
Also, "the management of physical assets (their selection, maintenance, inspection and renewal) plays a key role in determining the operational performance and profitability of industries that operate assets as part of their core business."
So with all this in mind, I started thinking about all this in the context of lean, which admittedly I don't know much about. The way I understand it, the purpose of lean is to minimise waste in the system, such that anything that is not directly adding value to your product in the eyes of the product should be avoided. My question is, does this have implications for excellent asset management, or are you having to compromise on an excellent approach because it is not directly improving products for the customer? If this is the case, what is the point of expending money on things like health and safety, or better security, which I happen to think ARE necessary, but don't seem to add value.
Maybe I have some misunderstandings about lean, but it seems like an interesting area of conflict. I feel like I must be wrong, because Toyota seem like a pretty excellent company to me, and were also of course the creators of lean production. But, I bet there are also plenty out there who are actually reducing their own capabilities too.
Yesterday's session made me feel a little uneasy about being a leader in the future. We all saw some of the terrible things that happened when people are not properly aware of their surroundings, and the bad decisions or poor judgement that this can result in. Obviously, these people are responsible for their own actions. However, we also discussed that leaders hold a great level of responsibility for the working environment they create. If the team fails from a business perspective, that is likely to be down to them to some degree. But, imagine if you were a leader, and someone working for you died on the job. How terrible would you feel? How scary a thought is that. That makes me question whether I want the responsibility of leadership. I know it's an extreme case, but we saw over and over again that these things can happen. What are your thoughts on this? I'm really curious.
Also, we spoke about the errors people can make, relating to: information gathering, interpretation, and anticipation. I wanted to apply this to myself, and decided to analyse why I am so often late by just a few minutes. There are probably a lot of reasons, and this is likely just a simplification, using this model, but I figure it's worth a shot! Is it about gathering of information? No, I don't think so - I'm quite organised, and I pretty much always know what time I am meant to be somewhere, or what time the train leaves, etc. Is it about interpretation? Well, no I don't think so, I always think about what I have to do, how it all fits together, what time I have to leave in order to be somewhere, etc. I think my problem is anticipation - not just for this, but for a lot of errors I make, I tend to be an optimist, and rarely think about the worse case scenario. This results in leaving things to the last minute, assuming things will take the minimum amount of time that they could, not being able to think ahead about sources of so-called 'randomness' in my day, like stopping to talk to someone on the street, or getting an important email, or the air in my bike wheels being low and requiring pumping, etc.
So why am I unable to learn this? To understand the upper and lower limits properly, rather than just assuming the lower limits will apply to me. I think it comes down to poor judgement, and there are perhaps a lot of different internal biases I can use to explain. For example, the representativeness heuristic - I don't seem to understand the underlying statistics, and always assume that lower limits apply to me. This could be due to overconfidence bias. I also seem to have a short memory when it comes to being late - I think that I'll learn, it won't happen again, and I make the same old estimates about how long things take. This is anchoring at play. And why don't I ever learn? Perhaps it is the curse of knowledge - maybe I tend to think looking back that it was a simple certain reason, that I won't make the mistake again, and that I don't need to change approach. Hopefully, developing this thought on the blog will help...
Linking back to leaders and situational awareness - I think that bias can play a part in all three types of error. I have only shown the ones that apply to me, and for anticipation at that.