in 2008 we asked ourselves what asset performance looked like.
What ensued was the largest data-driven study of asset performance ever conducted with the participation of some of the world's most respected business leaders in their fields. Taking in some 85,000 years of asset performance data from over 500 operations across 18 countries, our study enabled us to pinpoint the interdependent variables that directly contribute toward the overall success of an organisation, and develop a clear picture of what performance actually looks like.
'The Curve' as it is now referenced, is a visualisation of the quantity of assets (y-axis) across the spectrum of performance (x-axis). The example pictured above depicts the performance distribution of mining haul trucks (190 tonne and above) and is the result of 85,000 years of data from a large number of projects.
Importantly, regardless of the type of asset or the scope of evaluation we always find the same shape. Generally speaking, the left is where you will find a small number of poorly performing assets, and as you look further to the right you will see more and more assets performing to an increasingly higher level.
THEN, AS IF TO INDICATE A UNIVERSAL PERFORMANCE BARRIER, WE SEE A DROP OFF IN THE NUMBER OF ASSETS ABLE TO BREAK THROUGH AND PERFORM AT THEIR TRUE POTENTIAL. WE CALL THESE SPECIAL FEW QUARTILE ONE PERFORMERS.
By dividing the curve into quartiles, different categories of performance can be defined. Quartile One performance is represented in the right most quarter of the chart and shows the best practice performance in the industry. The distribution is very broad – there is a big difference between the best and worst performance.
the curve reveals that most operations don't perform to their true potential
the curve is a tool to help you redefine your potential
Our study shows that the biggest barrier to Quartile One performance is that most practitioners misunderstand the real drivers of high performance – which leads to a focus on the wrong solutions. In referencing your operation against the Quartile One Curve we can quickly reveal a more accurate picture of organisational performance across an array of functions and in relation to the competitor landscape, serving to highlight the areas where improvement will yield the most valuable results.
Additional to this, we've discovered that there are five major interdependent elements of Performance. We call these the Five Pillars of Performance and no matter the industry, we find these pillars to be fundamental to an organisation's ability to achieve Quartile One performance.
01 — value
DISCOVER YOUR VALUE.
THEN ADD SOME.
Every business is different, and each has numerous asset performance metrics that could be measured. Identifying which of these to target can be a complex task, yet, once identified, the true drivers of organisation value become clear, and the process of adding value to the business can begin.
02 — Context
RUN THE BUSINESS.
NOT THE ASSET.
Every asset decision has a consequence for a business. Rather than make asset management decisions based on project requirements, the business context and outcomes should form the criteria for asset level decisions. Within a business there is uncertainty, risk, and the need to balance short and long-term consequences which will change the asset decisions made.
03 — Speed
FIND YOUR SPEED.
MAINTAIN THAT MOMENTUM.
We live in a time of rapid change. Changes in supplier prices, labour markets, commodity prices, geology, and equipment show there is no 'set and forget' strategy. In a changing environment, asset management decisions should be evaluated on an ongoing basis rather than through start-and-stop analysis.
04 — Systems
Technology can be a distraction when it’s not properly integrated into your business systems. Done well, technology can provide a platform for informed asset decision-making and broad implementation, providing accelerated outcomes that allow you to adapt as challenges arise.
05 — People
PERFORMANCE requires CHANGE.
CHANGE requires PEOPLE.
No decision delivers value without implementation – and implementation can only happen through a change in behaviour by people. To gain the benefits from a process of ongoing asset management improvement, an ongoing process of organisational change is also required. Finding and maintaining the motivators of change are key to every Quartile One performer.