All organisations that manage large infrastructure systems, be they public agencies or private firms, frequently rely on a core group of capital assets to provide their key goods and services.
These asset systems can include manufacturing plant and equipment; linear infrastructure providing gas, electricity, water or communications services; special purpose-designed and centralised IT facilities; freight transport modules; or hospitals with a wide range of sophisticated technology.
All critical assets require scheduled maintenance to ensure that they perform reliably and cost-effectively. But many also demand periodic upgrades or full replacement to guarantee that they will continue to meet their service delivery expectations well into the future.
The Middle Way identifies the investments needed to support the long-term resilience of major capital assets, be they located at a single facility or dispersed widely. The reviews can be designed to be run at scheduled intervals such as during the annual budget cycle of the organisation, or as a one-off and broad based examination of the performance of an asset and its management needs.
Our approach has four steps:
- Facilitation of internal workshops with managers and users of the assets to confirm that the priority service-delivery objectives remain in focus; and then to develop a business risk profile on their operations.
- Review of the data-set collected on each asset or group, firstly to establish its relevance to the performance outcomes sought, and secondly to evaluate the techniques used for collecting, storing and analysing the data.
- Development of a business plan showing the investments required to preserve or enhance the capacity and efficiency of each asset. This could be considered over a 3-5 year period initially, and then over a 10-20 year horizon if the investment is substantial.
- Performing an economic appraisal of the preferred asset management options to identify those that offer the highest value-adding potential, whilst guaranteeing the performance objectives sought.
Our services are designed to the take account of the characteristics of the organisation and its industry sector. We also factor-in contingencies that may be created by influences such as the geographical dispersion of the assets being reviewed; unexpected constraints on the availability of investment or working capital; changes to the needs of key user groups; or the arrival of technology or other innovations that render the preferred business model obsolete.
Read our brochure that outlines our approach in more detail.