Quick Win #2:
Identify key performance indicators to highlight strengths and improvement opportunities and to measure performance and progress over time.
Defining a manageable number of key performance indicators can be a critical first step towards addressing the daunting challenge of measuring progress in asset management. Basic measures to track include percentage of devices lost or stolen, and effort spent per week in investigation of unknown devices.
In leased environments, meanwhile, a complete set of metrics focused specifically on lease management processes is essential. These metrics should be reported weekly or monthly, and communicated throughout the organisation and across vendors, with progress monitored over time.
For tracking and reporting measures of, for example, lease returns and damages, sample metrics may include:
- Percentage of devices returned early, on time, and late
- Percentage of devices for which damage charges are levied
- Monthly cost of damages per 1000 returned devices
- Monthly cost of early returns per 1000 returned devices
- Monthly cost of lease payments beyond end of lease per 1000 leased devices
- Percentage of end-of-lease devices for which lessor does not provide notice within agreed period
Tracking key performance indicators can provide insight into issues surrounding asset management and how leading practices can support business objectives.
Quick Win #3:
Refine the description of asset management services and introduce service level metrics to manage those services.
Few service providers - either internal or external - do an effective job at defining specific tasks related to asset management. In outsourced environments, this must be addressed within the master service agreement that outlines the services, roles, and responsibilities of the services provided. For in-house environments, the communication of services and setting of expectations is best handled through a customer-facing service catalogue. In either case, service level metrics and management targets can be used to proactively manage asset management services, by defining the roles and responsibilities of each party at the task level.
Key activities include engaging business users to determine the required service levels related to asset management. This information can then be shared with the outsourcing vendor or IT organisation to define the service, service levels, and detailed roles and responsibilities. Ideally, the service provider's responsibilities regarding asset management will be clearly spelled out, either in the master agreement or service catalogue.
In outsourced environments, a compelling incentive program can be an effective way to focus vendor efforts on meeting negotiated service levels governing asset management. Incentives and penalties should be focused on a small number of metrics aligned with top priorities.
Penalties should also become increasingly severe with continued underperformance.
Benefits of defining service levels include allowing an organisation to actively manage the provision of services, while providing an outsourcer with a clear target level of service against which it can measure its performance. Definitions of service provision also enable a client organisation to, if appropriate, compare the asset management services provided by current vendors against those offered by other providers.
Quick Win #4:
Communicate a renewed focus on asset management throughout the organisation and to vendors.
Make the benefits of effective asset management practices - and the consequences of poor practices - clear to both users and service providers. Executive commitment can generate a sense of urgency around asset management improvement and make it a visible priority.
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