A Physical Asset Management Strategy Execution Enforcement Mechanism for the early detection and management of Physical Asset Management Strategy Execution Failure

Stimie, Johann (2015-12)

Thesis (PhD)--Stellenbosch University, 2015.

Thesis

ENGLISH ABSTRACT: Organizations are becoming increasingly more capital- and asset intensive and spending on Physical Asset (PA)s and Asset Maintenance have been increasing steadily over the past number of decades. Organizations in general and Physical Asset Management (PAM) organizations specifically need to continuously redefine and adjust their strategies and action plans in order to increase operational effectiveness, increase revenue and customer satisfaction while reducing capital-, operating- and support cost. Many organizations however find themselves in a strategy crisis - not because executives and practitioners are unable to develop quality strategies but because these organizations fail to execute strategies effectively. The problematic assumption that good corporate performance indicates successful Strategy Execution (SE) while poor corporate performance is an indication of unsuccessful SE complicates matters even further. Unless a clear distinction is made between organizational performance and the extent to which strategies are effectively executed the cycle of endless formulation-implementation-performance-eformulation ultimately results in attempts at implementing a wrong strategy. When this happens, it is difficult to determine if poor performance is due to good execution of a bad strategy, or the result of poor execution of a good strategy. Despite the fact that there are clearly a number of theoretical and practical shortcomings within the exiting PAM Strategy Execution Body of Knowledge, this study aims to address the following central research problem: "There is no mechanism that can assist PAM practitioners and academics with the early detection and management of Physical Asset Management Strategy Execution Failure (PAMSEF)". The primary objective of the study is the development of a Physical Asset Management Strategy Execution Enforcement Mechanism (PAMSEEM) to address this problem. In support of the the primary objective a number of secondary objectives are also pursued. Firstly the research aims to evaluate the existing literature on emerging approaches, themes and challenges on general business strategy. The focus secondly shifts to an in{depth analysis of contemporary contributions on SE and Strategy Execution Failure. The third secondary objectives is to distill an organizational asset classiffication framework and a model illustrating how assets interact to create organizational value. The fourth secondary objective is to summarize recent developments within the PAM landscape. The fifth secondary objective is the presentation of a framework illustration the most important PAM strategy developments over the past 100 year. The sixth secondary objective is to define Physical Asset Management Strategy Execution (PAMSE) and by implication PAMSEF and to evaluate the most recent mainstream as well as empirical and theoretical contributions regarding PAMSE and PAMSEF to juxtapose this with the insights gained during the evaluation of general business strategy formulation and SE. Strongly grounded in the established theory of general business strategy and SE, as well as PAM strategy and PAMSE the PAMSEEM is developed thereafter. Validation of each one of the components of the PAMSEEM takes place within the context of a highly PA dependent organization. The conclusion reached at the end of the study is that the PAMSEEM when applied as recommended, will indeed assist organizations with the early detection and management of PAMSEF.

AFRIKAANSE OPSOMMING: Organisasies word toenemend meer kapitaal- en bate-intensief. Die gevolg is dat uitgawes wat verband hou met Fisiese Bates (FB) en Fisiese Bate Onderhoud (FBO) ook aansienlik toegeneem het oor die afgelope dekade. Organisasies in die algemeen en Fisiese Batebestuur (FBB) organisasies spesifiek is genoodsaak om voortdurend hul strategieë en aksieplanne te hersien en aan te pas in 'n poging om operasionele effektiwiteit-, verdienste-, en klient- tevredenheid te verhoog terwyl kapitaal-, operasionele- en ondersteuningskoste in toom gehou moet word. Baie organisasies vind dit egter moeilik om wel deurdagte strategieë effektief uit te voer. Die foutiewe aanname dat goeie korporatiewe prestasie 'n aanduiding van effektiewe Strategie Uitvoering (SU) is, terwyl swak korporatiewe prestasie 'n aanduiding van oneffektiewe SU is kompliseer sake selfs nog meer. Indien 'n duidelike onderskeid tussen korporatiewe prestasie en die mate waartoe SU effektief plaasvind nie gemaak word nie, sal organisasies vasgevang bly in die formulering-uitvoering-prestasie-herformulerings siklus. Indien die onderliggende beweegredes vir strategie herformulering dus nie goed verstaan word nie, kan dié siklus maklik lei tot die implementering van 'n verkeerde strategie. Indien dit gebeur is dit baie moeilik om te bepaal of swak prestasie te wyte is aan die effektiewe uitvoering van 'n swak strategie, of die oneffektiewe uitvoering van 'n goeie strategie. Ten spyte van die feit dat daar 'n magdom van teoretiese- en praktyk-gerigte tekortkominge is binne die bestaande FBB literatuur, poog hierdie studie om die volgende sentrale navorsingsprobleem aan te spreek: "Daar is geen meganisme wat FBB praktisyns en akademici kan ondersteun om Fisiese Batebestuur Strategie Uitvoering Faling (FBBSUF) vroeg te identifiseer en teë te werk nie" Om die probleem aan te spreek word 'n Fisiese Batebestuur Strategie Uitvoering Afdwingings Meganisme (FBBSUAM) in die studie ontwikkel. In die strewe om hierdie doelwit te bereik word die navorsingsmetodologie wat gebruik word in die skep van teorie deur middel van gevalle studies, toegepas. Die navorsing begin met 'n evaluering van literatuur wat verband hou met die benaderings, temas and uitdagings binne algemene besigheids strategie. Hierna verskuif die fokus na 'n in-diepte analise van hedendaagse bydraes oor SU, asook onlangse verwikkelinge op die FBB landskap. Fisiese Batebestuur Strategie Uitvoering (FBBSU) en by implikasie FBBSUF word hierna gedefinieër, en die mees onlangse hoofstroom sowel as empiriese en teoretiese bydraes aangaande FBBSU en FBBSUF word dan vergelyk met die gewaarwordinge wat duidelik geword het tydens die evaluasie van algemene besigheidsstrategie formulering en SU. Bewapen deur 'n sterk teoretiese begronding word die FBBSUAM hierna ontwikkel. Die validasie van elkeen van die komponente van die meganisme vind plaas binne 'n organisasie met 'n besondere hoë FB afhanklikheid. Die slotsom is dat die aanbevole toepassing van die FBBSUAM inderdaad FBB praktisyns en akademici kan ondersteun om FBBSUV vroeg te identifiseer en teë te werk.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/98088
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