Asset Management Leadership and Culture J. Lafraia PETROBRAS 2012
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Introduction • • • • •
Definitions Defects and Failures Culture Leadership Conclusion
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Asset Management - Definition • A new paradigm • Manage the asset considering its whole life cycle or
span • Make informed decision based on risk assessment
• It helps maintenance to be in contact with accountants and higher levels of management
• It is an integrated and interrelated effort of the various functions of the organization
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Basic Asset Life Cycle Plan
Acquire Operate
Failure
Fix
Maintain
Reliability RAM J. Lafraia @ Copyright
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Asset Management - Objectives • Linking decisions to the overall business objectives • Thinking in whole systems not their parts
• Applying a whole-life perspective • Leaving assets in the same state you would wish to
find them •Embracing and managing uncertainty
• Enabling stakeholders to understand the choices available
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AM key issues:
MANAGEMENT SYSTEM
LEADERSHIIP
AM EXCELLENCE PEOPLE (Culture & behaviour)
PHYSICAL ASSETS
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Key Principles and Attributes
holistic sustainable
systematic integrated
optimal
systemic Risk-based
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AMMS – Management System •
The Management System (MS) is a systematic approach used to drive progress
toward AM and it is linked to the business planning process
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Yes
LEADERSHIP
The Dual Role of Leadership
Communication Vision Strategies Innovations Culture NOT SUSTAINABLE CHANGES
PERMANENT CHANGES AND SUSTAINABLE
Command and control Planning Management System
CHAOS
DIFFICULTY OF CHANGES
No
Yes
MANAGEMENT J. Lafraia @ Copyright
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Defect and Incident Management
Defect Defect
Break
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Defect and Incident Management Defect
Defect
Break
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Safety and Reliability Reliability Model
Safety Model Lost Day Case
Break Failure
Minor injury
Defect
Incident Deviation
Error
Behaviour
Behaviour
People
Equipment
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“Hard Side” AM
AM “Hard Side” Tools
Hard Side – Tangible initiatives we implement to improve our performance... Planning & scheduling, operator care, preventive maintenance, predictive maintenance, and others J. Lafraia @ Copyright
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“Soft Side” AM AM “Hard Side” Tools The Foundation – “Soft Side” Tools
Soft Side – Intangible behaviors and practices that support hard side change... Leadership, Work Process, Structure, Group Learning, Technology, Communication, Interrelationships and Rewards J. Lafraia @ Copyright
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Below the Foundation???
AM “Hard Side” Tools The Foundation – “Soft Side” Tools “Organizational Culture”
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What culture is? Culture is an extremely complex phenomenon, which can be understood from several different angles. In general, it’s everything that separates human beings from animals in terms of our capacity to understand the world and transform it.
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Culture, rules and motivation Organizations are symbolic entities, which behave according to the mental map of their members. Those models are culturally determined.
Cow in India
Cow in Brazil
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The Four Elements of Culture • Values – define how we act • Role Models – provide examples of desired behaviour • Rituals / Rites (Reward and penalty) – what we do / how we reinforce it • Cultural Infrastructure –things and activities that support the values
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????
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Culture and “habitus” The first step to change a culture: become conscious of the “habitus”, the invisible strings that move us
“Habits are safer than rules; you don’t have to follow them. You don’t have to keep them either. They keep you.” Frank Crane
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The ABC Behaviour Model • Antecedents
what drives and preceeds Behaviour.
• Behavior
A visible action.
• Consequences
what is directly originated from the Behaviour
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The ABC Model Antecedents
Behaviour
Consequence
What DRIVES and precedes Behaviour.
A visible action.
What is directly originated from the Behaviour
• Organizational Culture;
• Not using PPE;
• Injuries;
• Risk perception;
• Violations;
• Death;
• Values & beliefs;
• Following rules, laws and procedures;
• Productivity;
• Knowledge; • Experience; • Procedures;
• Not to follow rules, laws and procedures;
• Thoughts;
• Comfort/discomfort; • Disciplinary actions; • Reward/ Penalty • Satisfaction (risks).
• Examples; • Rules, Systems J. Lafraia @ Copyright
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The ABC Model and the Culture
Antecedents
Culture
Intentions
Behaviour
Consequences
Attitudes
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The ABC Model and the Culture Rites / Rituals
Antecedents
Infrastructure
Intentions Values Role Models
Behaviour
Consequences
Attitudes
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Leadership and The ABC Model
LEADERSHIP IS THE KEY FOR CHANGING BEHAVIOUR
ESTABLISHING ANTECEDENTS
ESTABLISHING CONSEQUENCES
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Culture, Power and Leadership Power: Nobody is, so to speak, its owner; and, however, it always goes in some way, with some groups in either side; it is not clear who holds it, but it is clear who doesn’t.
Individuality is a result of the exercise of power. (MF)
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Leadership • Leadership = leader + led. The leadership does not belong only to the leader. Leadership does not exist if adhesion to the leader does not exist.
• The leadership is a function/process. • Leadership = to get results + through relationships. • The leader is a person. • A person cannot be responsible for the success of the whole organization. • Leadership requires to give up the notion of the heroic leader the person who has all the answers. J. Lafraia @ Copyright
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Mindfulness x Complacency Everyone THE RIGHT WAY
Operational Discipline
Every task
AM Excellence
All the time
• Operational Discipline means completing every task, the right way, every time.
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AM – Leadership Accountability The single largest factor for success • Accountable for running AMMS
• Enabling and delivering AM performance • Through personal example and actions, leaders cascade, manage and drive execution • Reinforce the AM Culture • Instill Operational Discipline • Ensure that the entire workforce complies with AM • Demonstrate that 100% performance is attainable J. Lafraia @ Copyright
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Asset Management - Roles Key issues • Leadership Accountability
Executives and Managers Run the Management System Lead, Align and Cascade AM Lead the MS
• Management System Process • Culture and Behaviours • Effective Physical Assets
All Leaders Enable AM Performance Reinforce Culture Instill Operational Discipline All Members of the Workforce Deliver AM Performance Comply with Requirements J. Lafraia @ Copyright
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The Leadership Model Reward / Recognition
Lack of visible leadership
Values
Mixed & unclear messages Short Term vs. Long Term Poor support for the line Role Model
Rites/Rituals
No continuous improvement
Acts as one team with the same
Vision & Values Increased profitability Decreased risk taking
Leadership is the magnet that aligns the driving force for developing the reliability culture J. Lafraia @ Copyright
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Asset Efficiency Reliability & Maintenance
Environment Stewardship People Safety & Health
BEHAVIOUR Focus On people and culture
Defect and incidents management
PHYSICAL ASSETS
Constant Auditing
Continuous Learning
MANAGEMENT SYSTEM Proactive Performance Indicators
Line Accountability
Visible and Commited Leadership
LEADERSHIP
Operational Excellence OPERATIONAL DISCIPLINE AM (Business) Excellence J. Lafraia @ Copyright
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Development of the Culture of the Company
Performance Measures
NATURAL INSTINCTS
ANTECEDENTS
Meet Budget
PHYSICAL ASSETS ANTECEDENTS
MANAGEMENT SYSTEM ANTECEDENTS
Breakdowns
Avoid Failures Prevention Low Cost
BEHAVIOUR Don´t fix it
CONSEQUENCE Decaying Short term savings CHAOS
BEHAVIOUR
BEHAVIOUR
Fix it after it breaks
Fix it before it breaks
Responding
Planning
CONSEQUENCE
CONSEQUENCE
Overtime
No Surprises
Heroes
Competitive Advantage
REACTIVE J. Lafraia @ Copyright
PLANNED
LEADERSHIP ANTECEDENTS
Precision Innovation BEHAVIOUR Don´t just fix it, Improve it
Proactive CONSEQUENCE Best in Class
Op Excellence 36
Conclusion
LDWR Production
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AM Excellence Culture Journey Mindfulness Visible commitment
Individual Commitment
Line Accountability
Taking of Cautious and Rigorous Action Comunicação
Partnership
Defect and incident management
Commitment of Leadership
Continuous Learning
Focus on People and Culture Reward and Penalty
Good Installations and equipment Defenses against Accidents and failures
Effective Physical Assets Commitment of Management J. Lafraia @ Copyright
Explicit Management System Management structures Resources/Delegation 38
Questions ?
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