DESCRIBING AND ASSESING CHARACTERISTICS OF...

Dissertation Master of Science in Asset

Management Control International Masters School

DESCRIBING AND ASSESING

CHARACTERISTICS OF

ORGANIZATIONAL CULTURE THAT INFLUENCE THE

ACHIEVEMENT OF ASSET

MANAGEMENT OBJECTIVES

Ing. Robert van Grunsven

Consultant CMS Asset Management

December 2012

AMC_Thesis_RvG_30-12-2012_Final_PrintOut.doc of 96

CONTENTS

PREFACE ............................................................................................................. 7

ABSTRACT .......................................................................................................... 9

1 INTRODUCTION .......................................................................................... 11

1.1 GENERAL PROBLEM ORIENTATION............................................................................................... 11 1.1.1 Culture clashes? .............................................................................................................. 14 1.2 THE IMPORTANCE OF ORGANIZATIONAL CULTURE ........................................................................ 16 1.3 THE RESEARCH OPPORTUNITY .................................................................................................... 18 1.4 RESEARCH QUESTION AND OBJECTIVES ...................................................................................... 20 1.4.1 General research question ............................................................................................... 20 1.4.2 Objective 1 ....................................................................................................................... 20 1.4.3 Objective 2 ....................................................................................................................... 21 1.4.4 Objective 3 ....................................................................................................................... 21 1.4.5 Objective 4 ....................................................................................................................... 21 1.5 RESEARCH APPROACH ............................................................................................................... 22

2 LITERATURE ................................................................................................ 23

2.1 TYPICAL FEATURES OF ASSET MANAGEMENT OBJECTIVES ........................................................... 23 2.1.1 Asset management business objectives .......................................................................... 23 2.1.1 Asset life cycle ................................................................................................................. 24 2.1.2 Realization of value and achievement of cost-effectiveness ........................................... 25 2.1.3 Asset management objectives ......................................................................................... 26 2.1.4 Asset management processes......................................................................................... 27 2.2 HOW CULTURE INFLUENCES ORGANIZATIONAL OBJECTIVES .......................................................... 29 2.2.1 Approaches to organizational culture .............................................................................. 29 2.2.2 Definition and multi level concept of culture .................................................................... 29 2.2.3 Exploring the layers of culture .......................................................................................... 32 2.2.4 The link between group and individual behavior.............................................................. 35 2.2.5 Motivation, job satisfaction, and organizational commitment .......................................... 39 2.3 ASSET MANAGEMENT ORGANIZATIONAL CULTURE CHARACTERISTICS ............................................ 43 2.3.1 Cultural content dimensions............................................................................................. 43 2.3.2 Function of culture typologies .......................................................................................... 45 2.4 ASSESSMENT OF ORGANIZATIONAL CULTURE .............................................................................. 47 2.4.1 Approaches to the assessment of organizational culture ................................................ 47 2.4.2 The role of learning and knowledge creation ................................................................... 48 2.5 FINDINGS .................................................................................................................................. 52 2.5.1 Objective 1 ....................................................................................................................... 52 2.5.2 Objective 2 ....................................................................................................................... 52 2.5.3 Objective 3 ....................................................................................................................... 53 2.5.4 Objective 4 ....................................................................................................................... 53

3 DESK RESEARCH ......................................................................................... 54

3.1 AIM OF THE DESK RESEARCH ...................................................................................................... 54 3.2 APPLICATIONS AND FUNCTIONS OF CULTURAL DIMENSIONS .......................................................... 55 3.3 COMPILATION OF CULTURAL DIMENSIONS PROPOSED BY RESEARCHERS ....................................... 57 3.4 IDENTIFICATION OF RELEVANT DIMENSIONS ................................................................................. 58 3.5 IDENTIFICATION OF POSITIONS OF BASIC UNDERLYING ASSUMPTIONS ............................................ 60 3.6 RESULTS ................................................................................................................................... 61

4 FOCUS GROUP ............................................................................................. 63

4.1 FOCUS GROUP DESIGN ............................................................................................................... 63 4.1.1 Selection of Focus group participants .............................................................................. 63 4.2 FOCUS GROUP PROCESS............................................................................................................ 64 4.2.1 Introduction and validation of prior research objectives .................................................. 64 4.2.2 Focus Group sessions ..................................................................................................... 64 4.3 FOCUS GROUP RESULTS ............................................................................................................ 65 4.3.1 Identified dimensions and positions of basic underlying assumptions ............................ 65 4.3.2 Evaluation of the focus group results and process with participants ............................... 66


5 CONCLUSIONS AND RECOMMENDATIONS ................................................... 68

5.1 REFLECTION OF RESEARCH OBJECTIVES ..................................................................................... 68 5.1.1 Objective 1 ....................................................................................................................... 68 5.1.2 Objective 2 ....................................................................................................................... 68 5.1.3 Objective 3 ....................................................................................................................... 69 5.1.4 Objective 4 ....................................................................................................................... 70 5.2 REFLECTION OF THE RESEARCH ................................................................................................. 71 5.3 RECOMMENDATIONS .................................................................................................................. 72 5.3.1 From exploring to explaining ............................................................................................ 72 5.3.2 Set the context to one specific organization .................................................................... 72 5.3.3 Assessment of the embedded mechanism ...................................................................... 73 5.3.4 From explaining to improving .......................................................................................... 73 5.3.5 Integrate safety and quality culture practices .................................................................. 73

REFERENCES ..................................................................................................... 74

DEFINITIONS ................................................................................................... 76

Appendix A: Compilation of cultural dimensions

Appendix B: Thoughts on cultural dimensions in relation to asset

management objectives

Appendix C: Focus group organization, process and results


LIST OF TABLES

Table 1.1: Definitions of ´asset´

Table 1.2: Comparison of GM’s Fremont and NUMMI Plants [Rcq, p12]

Table 1.3: Summary of results of asset management culture enquiry (also see Appendix C)

Table 1.4: Research objectives, questions and methods

Table 2.1: Multi level approaches to organizational culture [modified from Glendon&Stanton] of culture

researchers

Table 2.2: A comparison of levels of culture of Schein, Tosi&Mero and O’Donovan

Table 2.3: MCGregors Theory X and Y

Table 2.4 Sequences of steps based on the culture assessment approaches of O’ Donovan and Cameron&Quinn

Table 2.5 Culture assessment approaches [Schein, p181]

Table 3.1: The sub categories of external adaption and internal integration [Rs2]

Table 3.2: Participants of the focus group sessions


LIST OF FIGURES

Figure 1.1: Asset management related life cycle dilemma’s

Figure 1.2: Conceptual visualization of effectiveness as the combined result of the level of fulfillment of objectives

Figure 1.3: Organizational subculture as a resultant [based on Rs, p55]

Figure 1.4: Three generic subcultures after Schein [Rs, p58]

Figure 1.5: The Safety Culture Ladder after Hudson [Rhu]

Figure 1.6: What do we see when we address asset management as a cultural phenomenon, and how does this compare to general organizational culture, safety culture and quality culture?

Figure 2.1: The internal business process value chain [Rkn, p96]

Figure 2.2: The system life-cycle phases [Rb, p15]

Figure 2.3: The product life cycle in a broader view [Re, p19]

Figure 2.4: Examples of CE figures of merit [Rb, p87-88]

Figure 2.5: Asset related performance, risk and cost [inspired on PAS 55]

Figure 2.6: Integrated concept of value realization and cost-effectiveness [adapted from Blanchard, Rb]

Figure 2.7: PAS 55 requirements for asset management objectives

Figure 2.8: Business realization through the combined utilization of five types of assets

Figure 2.9: AMC domain asset related Process Definition Matrix [AMC PRIMA guidelines]

Figure 2.10: Approaches to investigating and examining organizational culture [Rds, p8]

Figure 2.11: The multi leveled concept of culture after Trompenaars & Woolliams [Rtw, p25]

Figure 2.12: The multi leveled model of culture used by Tosi&Mero [rtm]

Figure 2.13: The cause and effect relationship to organizational culture after O’Donovan [Ro, p68]

Figure 2.14: The three levels of culture after Schein [Rs, p24]

Figure 2.15: The mechanism of culture [inspired by Schein, Rs, p23]

Figure 2.16: The mechanism that causes actions to become valid [inspired by Schein, Rs, p28-32]

Figure 2.17: A basic model of behavior [Rtm, p4]

Figure 2.18: The Logical Level Approach of Dilts [Rc, p1]

Figure 2.19: A sophisticated model of behaviour [Adapted from Rtm, p40]

Figure 2.20: Three stages of employee commitment [Ro , p18]

Figure 2.21: The spiral of motivation as proposed by Maister [Rm, p192]

Figure 2.22: Maslows hierarchy of needs [Rma]

Figure 2.23: Reinforcement consequences [Rtm , p81]

Figure 2.24: Example of a cultural content dimension [based on Rcq , p32]

Figure 2.25: Cultural dimensions of particular interest for asset management [based on Rll , p124]

Figure 2.26 The Competing Values Framework [based on Rcq , p32]

Figure 2.27: Single, double and triple loop learning [Thorsen’s WIKI]

Figure 2.28: Single, double and triple loop learning in relation to learning domains and results [Wierdsma, Rbo, p237]

Figure 2.29: Interwovenness of relations and meanings [adapted slightly from Wierdsma, Rbo, p238]

Figure 2.30: The concept of Ba after Nonaka [Rtn]

Figure 2.31: The knowledge creation process after Nonaka [Rnk]


Figure 3.1: Graphical presentation of supporting and restricting asset management culture profiles based on cultural dimensions and positions of basic underlying assumptions along these dimensions.

Figure 3.2: External adaption and internal integration as a product of deeper dimensions [Rs, p70]

Figure 3.3: The cultural dimensions identified by Hofstede [Rtn]

Figure 3.5: Identification of relevant dimensions by four approaches

Figure 3.6: Integrating the four approaches to identify relevant dimensions

Figure 4.1: Results of dimensions addresses and positions identified by Group 1



Preface

In March 2013 it will be five years ago that I attended the first lessons of cohort 4 of the

Asset Management Control MSc. Course at Hogeschool Zeeland in Vlissingen. It was my

desire to gain more knowledge on the subject of asset management that brought me

there. After having followed the technical and business oriented modules in Cohort 4, I

hopped to Cohort 6 to finish the modules focused towards human factors (professional

approach, team building, organizing, communication, motivation and organizational

learning). It where these subjects that enabled me to explore asset management related

issues from a different angle.

The idea to perform research on the culture aspect of asset management crossed my

mind for the first time in the spring of 2011. As a member of the Dutch NEN-ISO

commission PC251 (focussed towards production of an international asset management

system standard: ISO55000) I beheld the dialogue concerning how aspects like

leadership and organizational culture would become more emphasized as being important

in the development and management of an asset management system based on

ISO55000. The Public Available Standard 55 (PAS 55), published by the British

Standardization Organization states that ‘motivation, culture and leadership are

important, but are not part of the standard. Compared to safety management and quality

management, which have a traceable history of being culture oriented with thousands of

relevant hits published on the internet, very little seemed to be directly available about

addressing asset management as a cultural phenomenon. The research idea evolved

around the question what would be revealed by addressing the organizational culture

aspect of asset management and how can this be used as an advantage in improving

asset management. Culture is seen as something typically human, and in the light of the

research idea it is interesting to relate culture to the other typically human AMC modules

(summarized above).

Being both an AMC student and a member of the Dutch NEN standardisation organization

ISO 55000 committee, here lies an opportunity. I have shown interest in researching the

culture aspect of asset management. In the march 2011 meeting this was shared with

the Dutch NEN mirror PC251 committee. The committee agreed. Also my first information

exchanges with John Stavenuiter motivated me to go on. I believe that research in the

context of ‘asset management and culture’ can contribute to increased understanding

and performance asset management. Although there were many who advised me to keep

away from such ac vague subject as organizational culture. Despite of these advises I

was, and have been during the entire research period, highly motivated to perform

research on this subject.

The past few years where not always easy. It has been difficult to find and keep the

balance between this study, my busy job and my social and private life. I have been

looking forward to the moment of completion of this document. In the following sections

I would like to express my gratitude to persons that have been important for me to keep

me motivated.

Firstly, I would like to thank John Stavenuiter for developing Asset Management Control

and him and his wife Henneke for their hard work in organizing everything that is bound

to AMC, especially the hard work for the Asset Management Control Master Course. In

respect to this course, my thanks also go out to the entire AMC Msc. Course staff for

making this course possible. I have enjoyed the lectures, the assignments, the writing of

many papers and finally, the process choosing my research subject and writing my

thesis. In May 2011 I approached Jorien Enning, specialized in corporate communication

and tutor of the AMC modules ‘Communication’ and ‘Organizational Learning’, to ask her

to guide me through the research process. I would like to thank Jorien for exploring the

research subject together with me, but also to keep focus upon that what I wanted to

research in the first place.


Next, I would like to thank my colleague students and co-administrators of the AMC

Alumni. Those who have been examples to me (finished already) and those who have

been my peers in finishing the AMC Msc. Course. I would like to thank Wouter van

Vuuren from Waterschap Rivierenland for attending the course together with me, and

also finishing it with me. Also, my thanks goes out to Edgar Wienen from Eon Benelux for

his supportive telephone conversations during extensive traffic jams in several evenings

during the last few years.

My colleagues at CMS Asset Management also have supported me during the entire

Course. I would like to thank Luc de Laat and Richard Gevers for letting me attend the

AMC Msc. Course in the first place, but also for supporting me and actively creating

possibilities for finishing this report during the final phase. Also, I would like to thank

Jack Mies for reasoning with me about the importance of the human factor in asset

management a few years ago. Such reflections of the importance of our work inspired me

to choose my research subject in this field. Next, I would like to thank Marco Aberkrom

for preparing the focus group together with me and being my co-facilitator during the

focus group sessions. Also to be mentioned here are the participants of the focus group

sessions. I would like to thank them for their time and effort. Finally, in relation to CMS

Asset Management, I would like to express my thanks to Janou de Bekker and Carien

Ponsen for organizing the focus group sessions, the inquiry and correspondence with

participants. Once again thanks to Jorien Enning, also for preparations prior to the focus

group sessions.

During the past five years I haven’t have spend the time I would like to have spend with

my family and friends. Attending, but even more so, completing such a course as this

draws valuable resources from one´s family and social life. I would like to thank all my

friends for our sustainable friendships. Further, I would like to thank my parents Anton

and José van Grunsven and my brother Edwin van Grunsven for their support in keeping

me on track towards this end goal. Finally, I would like to express my appreciation and

respect to my girlfriend Marinka Brouwer for supporting me towards my end goal. For

both of us the past few years where not always easy, but together we have managed to

overcome our own struggles. Thank you for this.


Abstract

Asset Management is a field of management that in recent years has become known as

the whole life cycle management and value realization of physical assets. An increasing

number of Dutch organizations are exploring asset management, or apply it as part of

their activities. There however always is room to improve, for some organizations to

establish good practices, for others to establish best practices. Within organizations,

there seem to be struggles between different departments and groups that perform asset

management activities. General organizational culture theory points out that these

struggles can be caused by cultural differences between these groups and departments.

By explicitly addressing the cultural aspect, organizations are able to make a quantum

leap in the way they are doing things and to be effective in the sense that the level of

achievement of objectives increases. In management fields such as safety management

and quality management culture oriented approaches have enabled organizations to

increase the effectiveness of these management fields in terms of performance and the

level of achievement of objectives. Is it possible that asset management can also be

improved through a culture oriented approach? This research idea leads to the following

main research question: Which characteristics of organizational culture influence the

achievement of asset management objectives and how can these be assessed?

Assets do not have a standalone purpose. They serve business objectives. Typical asset

management activities are related to life cycle delivery of assets, value realization by

balancing performance, risk and cost, and achieving cost- effectiveness. Asset

management objectives are directly or indirectly related to these activities, determining

asset management objective’s typical features. In an asset management context, it are

these features that characteristics of organizational culture have to relate to. In this

research these features of asset management objectives are used for conceptual context

setting for asset management organizations in general. When the context is set so single

organizations, their individual asset management objectives will have to be examined

more thoroughly.

Organizational culture is a multi layered facet. The most accessible layer, the explicit

culture, represents artifacts that can be heard, seen and felt. The deepest layer holds

unconscious basic underlying assumptions that, trough being proven right repeatedly, are

nonnegotiable and determine the actions of individuals within an organization. The

degree to which an employee is committed to the organization, is satisfied in performing

his or her job and is motivated towards action, is strongly influenced by organizational

culture. It is this mechanism that causes organizational culture to influences the

achievement of objectives. The strength of this mechanism determines the relative

strength of basic underlying assumptions in relation to asset management objectives.

Further research is recommended here.

Characteristics of the implicit organizational culture are so called culture content

dimensions. These clusters of opposite values evolve in an organization’s process of

external adaption and internal integration. Many dimensions however relate to general

cultural differences that exceed the boundaries of an organization. These address

subjects as ‘the nature of time and space’, ‘the nature of humans’, and ‘the nature of

human relationships’. A culture content dimension can, by a position along its ax, depict

a culture’s basic underlying assumptions regarding the subject the dimension addresses.

For instance, a position along the dimension ‘time horizon’ indicates if ‘short patters of

thought’ or ‘long patters of thought’ are the right way of doing things. Further, such

dimensions can depict for instance IST and SOLL culture profiles.


There are many approaches to the assessment of organizational culture. The approach

should be selected by the purpose of the assessment. A culture oriented approach seems

to be relatively new to asset management contexts. Performing research in this sense

has a exploratory nature, rather than an explanatory one. The purpose is to help

organization to understand themselves better and to improve, change or develop, their

asset management processes. This requires a high level of involvement of the subjects.

This involvement concerns the ability to address one’s own tacit assumptions and to shift

perspective to the perspectives of others. Double loop learning, the ability to perform

dialogue and to share and create knowledge are important competences that are

required to assess culture characteristics in a setting wherein subject involvement is

high.

In this research, the aim is to indentify positions of basic underlying assumptions on

culture content dimensions that support or restrict the achievement of asset

management objectives. In general organizational culture, hundreds of dimensions have

been proposed by many researchers. In this research possible relations between existing

dimensions and asset management objectives have been identified. Also, new

dimensions and assumptions, possibly holding such a relationship are proposed. To test

existing and new dimensions, a parallel focus group was organized. Each group dealt with

several dimensions. In this process it was important to perform dialogue to define,

validate and calibrate the dimensions, and eventually locate the positions of supporting

and restricting basic underlying assumptions. In this exploratory stadium the results of

the focus groups for any given dimension seems to be context specific, as being the

product of the process of defining, validating and calibrating of each group.

The results indicate that it is possible to reach consensus within a group about positions

of assumptions that support and restrict asset management objectives. Within this

process the relative strength of a dimension in relation to the achievement asset

management objectives was not explicitly addressed. The most important result is that

the strength of the approach is in the way it facilitates dialogue. Further research,

focused towards specific organizations and addressing the relative strength of

dimensions, is recommended.


1 Introduction

1.1 General problem orientation

Asset management as a field of management has gained growing interest in industries

and sectors that rely on physical assets to fulfil their business objectives. Until about five

years ago, the term ‘asset management’ was most commonly associated with financial

asset management. This will be recognizable for anyone who experienced searching the

internet with the following search string: ‘asset management’. The term ‘asset’ had long

be seen as related to financial processes. In the broadest sense, an asset can be defined

as [Oxford online dictionary]: ‘an item of property owned by a person or company,

regarded as having value and available to meet debts, commitments, or legacies’.

In recent years organizations in the Netherlands are learning about the new meaning of

asset management: The management of physical assets. The following table (Table 1.1)

captures specific definitions of physical assets from primary research sources. Whenever

in this research the term ‘asset’ is used, this refers to a physical asset.

Term Definition [source]

Capital

Asset

a high-cost technical system which is capable of meeting operational

requirements [Stavenuiter, Rst]

Asset Plant, machinery, buildings, vehicles and other items that have a distinct

value to the organization

[PAS 55-2008-1, Rp, p2]

Asset something that has potential or actual value to an organization [ISO55000,

Riso, p2]

Table 1.1: Definitions of ´asset´

The following summary gives four definitions of asset management:

1. AMC [Stavenuiter, Rst, p194]: A management approach to manage all processes

(specify, design, produce, maintain and dispose) needed to achieve a capital asset

to meet the operational need in the most effective way for the customer/ user;

2. PAS 55 [BSI, Rpas, p2]: Systematic and coordinated activities and practices

through which an organization optimally and sustainably manages its assets and

asset systems, their associated performance, risks and expenditures over their life

cycles for the purpose of achieving its organizational strategic plan;

3. ISO55000 [ISO, Riso, p2]: The set of coordinated activities that an organization

uses to realize value from assets in the delivery of its outcomes or objectives;

4. [AAMCoG, Ra, p4]: The process of organizing, planning, designing and controlling

the acquisition, care, refurbishment, and disposal of infrastructure and

engineering assets to support the delivery of services. It is a systematic,

structured process covering the whole life of physical assets.

Asset Management Control, originated in 2001, emphasizes ‘management control’ in

respect to asset management. Management control [Stavenuiter, Rst, p194] is a

compilation of management activities, including the efficient use of control instruments,

to insure that the results meet the objectives in a cost-effective manner. The upcoming

ISO 55000 standard for an ‘Asset management System’ shows that asset management

has reached the level international standardization. Internationalization of asset

management was preceded by Asset Management Control and the internationally

accepted standard of the British Standardization Institute ‘PAS 55: standard for

optimized management of physical assets’ in 2004, second edition in 2008.


Media like seminars, magazines, courses, implemented cases etcetera, spread knowledge

about asset management and nowadays share its benefits. The result is that an

increasing number of Dutch organizations that rely on physical assets to realize business

objectives are gaining further knowledge on asset management or are actually

implementing and using it.

Although understanding of what asset management is and what it can achieve has grown

during the past few years, organizations are not always applying asset management in

full. I would like to draw from my personal experiences as an asset management

consultant to introduce typical issues that are to be addressed in this research. Most

organizations that I have served as a consultant seem to struggle with their asset

management processes and realization of their asset management objectives one way or

another. See figure 1.1. Some of these struggles are recognizable and easy to

understand. For instance, there is the NIBU syndrome (Not Invented By Us) whenever an

information system or specific method or approach from one department becomes likely

to support the asset management processes of another department as well. It however is

not accepted simply because it was not created or selected by the other department.

Other struggles are more difficult to decipher, but also appear to be presents in some

way or another. Often, issues evolve around the delivery of new and modified assets,

often resulting in groups struggling to achieve their objectives. There is a group that

focuses on the early phases of the asset life: developers, engineers and project

managers that realize new assets and process the bigger (project oriented)

modifications. Their top management has administered them to deliver the assets within

time, budget, according to business delivery specification, legal requirements etcetera.

Sometimes, by implicitly or explicitly applying asset management principles these

objectives cover life cycle delivery according to these criteria.

Figure 1.1: Asset management related life cycle dilemma’s

Further on in the asset´s life cycle, there are departments or groups of operators and

maintenance personnel being administered objectives focuses on asset utilization.

Although ´Operations´ and ‘Maintenance´ have their own group struggles in aligning

their objectives, both serve the purpose the asset was initially developed for: To perform

its functions in respect to the primary process it is performing in. Not always are

operations and maintenance able to integrate their experiences and requirements into

the design and development of assets, or are they involved in the production,

construction and modification processes to test and approve that these requirements are

met.


It is not always certain that operations and maintenance have the time to do so. Their

objectives are related to utilization and maintenance of the assets within the boundaries

of operational expenditures. If this absorbs a great deal of available resources, very little

time remains to share experiences and set and check requirements. This leads to a lower

degree of control for operations and maintenance, resulting in an increase of resources

required, which in its turn leads to less time to be spend on sharing experiences and

setting and checking requirements. Hence, this will not lead to satisfaction achievement

of the objectives of any groups objectives. These personal experiences have been shared

with the focus group that was organized as part of this research. To one extend or

another, these struggles appear to have a restricting effect on the effectiveness of assets

and asset management processes.

The definition of effectiveness is [Oxford online dictionary]: The degree to which

objectives are achieved and the extent to which targeted problems are solved. Figure 1.2

is a conceptual visualization of effectiveness. On the left side ‘Objective X’ is depicted.

The effectiveness of this objective can be thought of as being anywhere on a scale of 0%

to 100%, representing the level of fulfillment of this objective. The achievement of

Objective X can be expressed and measured on a scale from 0% to 100%:

A score of 100% indicates that the result fully meets the objective;

A score of 0% implies that not a single portion of the objective is met;

A score of 50% indicates that half the objective is met.

The objectives 1 to n indicate that an organization can have more than one objective,

each representing the level of fulfillment of some desired outcome. The combined result

of these objectives for a specific organization can then be thought of as the effectiveness

of that organization. One or more of these objectives could be asset management

objectives.

Figure 1.2: Conceptual visualization of effectiveness as the combined result of the level of fulfillment of objectives


1.1.1 Culture clashes?

Group struggles in organizations can be approached from a cultural perspective.

According to Cameron en Quinn [Rcq, p15] difficulties in coordinating and integrating

processes or organizational activities, are often a result of culture clashes. They explain

that cultural differences can fragment an organization and make high levels of

effectiveness impossible to achieve. Subunits such as functional departments, product

group, hierarchical levels, or even teams may reflect their own unique cultures [Schein,

Rs, p260-271 and Cameron & Quinn, Rcq, p15, and Tosi & Mero, Rtm, p134]. These

cultures are referred to as subcultures.

A subculture [Schein, Rs, p55] shares many of its assumptions with the organizational

culture, but also holds assumptions that are derived from beyond the organization. Such

a subculture reflects aspects as the functional tasks, educational backgrounds and their

unique experiences. Further, according to Schein a subculture can exist around a specific

occupation. The globally shared assumptions of these occupations will also be present in

an organization [Schein, Rs, p55]. They will however reflect differences in teaching

systems, and will also be influenced by national, regional and organizational cultures. See

figure 1.3.

Figure 1.3: Organizational subculture as a resultant [based on Rs, p55]

Schein [Schein, Rs, p57] , explains that in any organization three generic subcultures can

be identified. These are the ‘operator subculture’, the ‘engineering/design subculture’ and

the ‘executive subculture’. See figure 1.4. Many conflicts are diagnosed as

interdepartmental fights, power maneuvers and personal conflicts. What is often

overlooked, according to Schein, is that the beliefs and assumptions of each department

can be different. He explains that what is most important, is that the contribution of all

three is needed for achieving organizational effectiveness.

What is notable here is that, when reasoning from the organizational scope that asset

management comprises, these three groups are present. Whilst it can be argued that

asset management is a specific occupational field, it is obvious that the achievement of

asset management objectives requires the collaboration of different disciplines and

organizations. Schein’s three generic subcultures (at least but not limited to the generic

executive, engineering and operator subculture ) are present in an asset management

context. A pro- asset management culture can be thought of as a culture that fosters the

unique capabilities of each subculture, but synergizes them into a consistent whole.


Figure 1.4: Three generic subcultures after Schein [Rs, p58]

Assumptions of the executive culture:

Financial focus o Without financial survival and growth, there are no returns to

shareholders or to society; o Financial survival is equal to perpetual war with competitors;

Self image: The embattled lone hero o The economic environment is perpetually competitive and

potentially hostile. ‘In a war you cannot trust anyone’; o Therefore the CEO must be ‘the lone hero’ isolated and

alone, yet appearing to be omniscient, in total control, and feeling indispensable;

o You cannot get reliable data from below because subordinates tell you what they think you want to hear. Therefore, the CEAO must trust his or her own judgement more and more (i.e. lack of accurate feedback increases the leader’s sense of rightness and omniscience);

o Organizations and management are intrinsically hierarchical, the hierarchy of the measure of status and success and the primary means of maintaining control;

o Though people are necessary, they are a necessary evil, not an intrinsic value. People are resources like other resources to be acquired and managed, not ends in themselves;

o The well-oiled machine organizations does not need whole people, only the activities they are contracted for.

Assumptions of the Engineering subculture (global community):

The ideal world is one of elegant machines and processes working in perfect precision and harmony without human interventions;

People are the problem, they make mistakes and therefore should be designed out of the system wherever possible;

Nature can and should be mastered: ‘That what is possible should be done’ (proactively optimistic);

Solutions should be based on science and available technology;

Real work is to solve puzzles and overcome problems;

Work must be oriented toward useful products and outcomes.

Assumptions of the operator subculture:

The action of any organization is ultimately the action of people. We are the critical resource, we run the place;

The success of the enterprise therefore depends on our knowledge, skill, learning ability and commitment;

The knowledge and skill required are ‘local’ and are based on the organization’s core technology and our specific experience;

No matter how carefully engineered the production process is, or how carefully rules and routines are specified, we know that we will have to deal with unpredictable contingencies;

Therefore, we have to have the capacity to learn, to innovate, and to deal with surprises;

Most operations involve interdependencies between separate elements of the process, so we must be able to work as a collaborative team in which communication, openness, mutual trust and commitment are highly valued;

We depend on management to give us the proper resources, training and support to get the job done.


1.2 The importance of organizational culture

Successful organizations have developed something that supersedes strategy, market

presence and technology. These organizations have established and are able to manage

an unique organizational culture. One the earliest definitions of organizational culture is:

‘The way we do things around here’ [O’ Donovan, Ro, p33]. Empirical research reveals

that organizational culture is important in enhancing organizational performance

[Cameron & Quinn, Rcq, p4]. Culture is seen as a crucial factor in the long-term

effectiveness of organizations [Cameron & Quinn, Rcq, p5]. According to O’Donovan

establishing a healthy organizational culture can create a quantum leap in ‘the way of

doing things’ [Rod, p125].

The importance of culture to the achievement of objectives is not exclusive to general

organization management. There are other management fields that benefit from a

culture oriented approach. Culture fulfils an important role in effective safety

management [IAEA, Ri, p1]. The UK Health and Safety laboratory (HSL) refers to [Rh,

p2] several definitions of safety culture. One that is widely used, is developed by the

Advisory Committee on the Safety of Nuclear Installations (ACSNI):

The safety culture of an organization is the product of individual and group values,

attitudes, perceptions, competencies and patterns of behavior that determine the

commitment to, and the style and proficiency of, an organization’s health and safety

management.

Cooper [Rc, p113] states that safety culture is a sub-facet of organizational culture,

which is thought to affect attitudes and behavior of members in relation to an

organization’s ongoing health and safety program. These are aimed at maintaining a self-

disciplined approach to the enhancement of safety beyond legislative and regulatory

requirements. There has been increased emphasis on a systematic approach to the

development of an improved safety culture, and there is increasing awareness of the

contribution that human behavioral sciences can make to developing good safety

practices [IAEA, Ri, p4]. Safety culture is important in that it has an influence on

behavior, attitudes and values, which are important factors in achieving good safety

performance.

The work of Hudson has

in recent years been on

the foreground when it

comes to safety manage-

ment and safety culture.

Hudson proposes a

culture ladder to grade

and position [Rhu] an

organization attitude

towards safety. See

figure 1.5. This model

has been used frequently

to explain the impor-

tance of culture in

effective safety manage-

ment [Verhoeve en

Smits, Rvs].

Figure 1.5: The Safety Culture Ladder after Hudson [Rhu]


Another field of management that relies on a cultural approach to achieve higher levels of

effectiveness, is quality management. Gryna&Chua &DeFeo provide the following

definition of quality culture [Rgcd, p265]: the pattern of human habits, beliefs, values

and behavior concerning quality. Cameron&Sine [Rcs] identified a framework for

organizational quality culture, and examine the framework’s legitimacy with empirical

analysis. According to their research treating quality as a cultural phenomenon means

that it is approached as a set of values, a general orientation, and an organizational

ideology rather than as a set of tools and techniques [Rcs, p9]. One of their research

questions explicitly addresses the relationship between quality culture and organizational

effectiveness trough the achievement of quality objectives [Cameron&Sine, Rcs, p14].

The results of this research suggest that more advanced levels of quality culture are

associated with higher levels of organizational effectiveness [Cameron&Sine, Rcs, p18

and Gryna&Chua&DeFeo, Rgcd, p269].

An example of the impact of a change in quality culture is given by Cameron&Quinn in

their book ‘Diagnosing and Changing Organizational Culture’ [Rcq, p10]. They explain

how a culture change improved the performance of a General Motors (GM) assembly

plant dramatically. In this example the GM Fremont Plant in Fremont California had the

worst productivity in GM in 1982. The decision was made by GM to close the plant by the

end of the year. Then, as a final resort, GM approached Toyota, its best competitor, for a

deal. The deal was that the Fremont Plant would be controlled by Toyota managers but

would remain unchanged in terms of equipment and personnel. Both parties agreed.

What followed was that by changing the organizational culture employees adopted a

different way to think about the company and their role in it. Toyota reduced the number

of job classifications, but allowed their employees to have personal business cards such

as ‘Director of Welding Improvement’. An employee explains that, in his past Fremont

Plant job, he would live his sandwich behind the door panel of a car to anoy the

customers. Later, when working at the NUMMI Plant, he wrote a business card noting ‘I

made your car. Any problems call me’ whenever he saw a car that was produced at the

plant.

In this example Cameron&Quinn do not in depth explain how culture changed. It serves

the purpose of demonstrating the power of culture change. In this case, higher levels of

productivity, quality, efficiency, and morale followed directly from changing the firm’s

culture. Table 1.2 compares the plant when it was controlled by General Motors in 1982

to the same plant (renamed to GM NUMMI Plant) when it was controlled by Toyota in

1986. The figures speak for themselves. Cameron&Quinn explain that, in change

programs, whenever culture change is an explicit target of change, these programs are

successful and leads to an increase of organizational effectiveness [Rcq, p9].

Comparison item GM Fremont Plant

1982

GM NUMMI Plant

1986

Employees 5000 2500

Absenteeism 20% 2%

Unresolved Grievances 2000 0

Total Annual Grievances 5000 2

Wildcat Strikes 3-4 0

Assembly Cost per Car 30% over Japanese Same as Japanese

Productivity Worst in GM Double GM Average

Quality Worst in GM Best in GM Table 1.2: Comparison of GM’s Fremont and NUMMI Plants [Rcq, p12]


1.3 The research opportunity

Sources discussed in the former paragraph indicate that organizations in general, and

safety management and quality management specifically, benefit from a culture oriented

approach. A culture oriented approach, is an approach that explicitly addresses the

aspect of culture in relation to the field of management. This raised the interest and

curiosity of the author of this research and created the first research idea in march 2011.

Can asset management also benefit from a culture based approach and what would be

characteristics of an asset management culture that supports the realization of asset

management objectives? Figure 1.6 is a graphical presentation of this reasoning.

Figure 1.6: What do we see when we address asset management as a cultural phenomenon, and how does this compare to general organizational culture, safety culture and quality culture?

Compared to general organization culture, safety culture and quality culture, the amount

of directly accessible literature, papers, cases and articles regarding the subject of asset

management in relation to organizational culture seems to be rather limited. This does

not directly indicate that there are no initiatives taking place at the moment, however, it

gives an impression of what is publically available in published and shared form. The

following references indicate that the cultural aspect of asset management relevant in

the achievement of asset management objectives.

‘Sometimes an organization has to change its culture, aspects of work or employee

behavior to achieve corporate asset management goals’

Australian Asset Management Collaborative Group (AAMCoG), Guide to Integrated

Strategic Asset Management, 14 November 2011, ISBN: 978-0-646-56734-1

‘Culture and leadership are critical enablers of effective asset management’

editors note in The Asset Journal | Issue 3 | Volume 5 | 2011

‘The availability of good practice processes, culture and leadership can significantly

improve asset performance in a relatively short period of time’

Principal Advisor Rail Assets, Mark Green in The Asset Journal | Issue 3 | Volume 5 |

2011


In the Netherlands, availability of accessible material is even more scarce. On asset

management congresses and seminars the importance of the culture component is often

stressed. What not is mentioned are the characteristics of such a culture.

As part of this research an inquiry was organized (see Appendix C). The first aim was to

find out if organizations owning assets and performing asset management are addressing

the culture aspect to improve their performance actively. The second aim was to find out

if there is a need to address asset management as a cultural phenomenon. Table 1.3

gives a summary of the results of the enquiry based on 16 respondents.

How important is the culture aspect in achieving our asset management

objectives?

7.9/9

To which extend are we capable of achieving asset management

objectives utilizing current knowledge?

5.4/9

To which extend are we capable of achieving asset management

objectives utilizing current theories and models?

4.9/9

Is there a need for more knowledge? 6.2/9

Is there a need for more theory and models? 6.4/9 Table 1.3: Summary of results of asset management culture enquiry (also see Appendix C)

From the scores there can be concluded that the respondents of the inquiry consider the

culture aspect of asset management to be important. Also there can be concluded that in

improving the level of achievement of their asset management objectives, additional

knowledge, theories and models are more than welcome. This also is an indication that

there is a need to explore the subject of organizational culture in relation to asset

management.


1.4 Research question and objectives

In the former paragraphs the potential benefits of explicitly addressing the cultural

aspect of asset management is introduced. Compared to organizational management,

safety management and quality management, this seems to be relatively new to asset

management. This raises the question if asset management can also benefit from a

culture based approach. And if so, what are the characteristics of a culture that supports

the achievement of asset management objectives?

The aim of this research is to describe such a culture and to provide guidance to

organizations that seek to assess their organizational cultures to reveal to which extend

their prevailing cultures are capable of achieving asset management objectives. The

following paragraphs introduce this research´s general research question and research

objectives.

1.4.1 General research question

The general research question of this research is:

Which characteristics of organizational culture influence the achievement of asset management objectives and how can these

be assessed?

The research question sets the scope of the research. It addresses description and

assessment of culture characteristics in relation to asset management. It does not

address culture change. Further there should be mentioned that the primary focus is on

national asset management contexts in the Netherlands.

1.4.2 Objective 1

In order to identify characteristics of organizational culture that influence asset

management objectives, it is required to specify these objectives.

Objective 1: To identify the features of asset management objectives

Corresponding sub-question: What are typical features of asset management

objectives?

This objective leads to an understanding of what asset management objectives are and

what makes them typical to asset management. The product is a set of asset

management objective specific features.


1.4.3 Objective 2

Identification and assessment of culture characteristics in relation to asset management

objectives require an understanding of how, in general, organizational culture is related

to and influences organizational objectives. The essence of this question lies in acquiring

the ability to recognize the mechanism that causes culture to influence objectives.

Objective2: To describe in which way culture influences objectives in an organizational

context

Corresponding sub-question: In an organizational context, in which way does

culture influence objectives?

The product is a description of the mechanism that causes organizational culture to

influence objectives.

1.4.4 Objective 3

Objective3: To identify the characteristics of organizational culture that influence the

achievement of asset management objectives

Corresponding sub-question: What are the characteristics of organizational culture

that influence the achievement of asset management objectives?

Fulfillment of this objective delivers characteristics of culture that influence the

achievement of asset management objectives. The product is a set of culture

characteristics in relation to the extent to which they have an influence on the

achievement of asset management objectives.

1.4.5 Objective 4

In respect to the general research question, it is required to asses organizational culture

in an asset management context. This leads to the following objective.

Objective4: To develop an approach to assess organizational culture characteristics in

an asset management context

Corresponding sub-question: How can characteristics of organizational culture be

assessed in an asset management context?

The product of this objective is a description of such an approach.


1.5 Research approach

This research has a qualitative nature [Saunders, Rsa, p145] in the sense that non

numerical data is involved. Since asset management specific content is derived from

general organizational culture theory, the research had a deductive nature [Saunders,

Rsa, p137]. Further, the research purpose is explorative [Saunders, Rsa, p133] because

it seeks new insights and assesses the phenomena of organizational culture in a new

light. Due to the nature of this research, it was expected that organizing a focus group is

a suitable way to collect data. A focus group is a specific group interview wherein the

topic is defined clearly and precisely and there is focus on enabling and recording

interactive discussions between participants [Saunders, Rsa, p314]. Table 1.3 displayed

below, shows which research methods are used to support the research that is necessary

to meet the research objectives and answer the research question. Each objective

questions requires a theoretical study of the research. Sub question 3 is focused towards

developing a set of organizational culture characteristics that influence effective asset

management. This will be the primary subject to be dealt with in the focus group. The

literature study is expected to prepare the content to be evaluated in the focus group

sessions.

No Objective and Sub-question

Research

Method

1 Objective 1: To identify the features of asset


Corresponding sub-question: What are typical

features of asset management objectives?

Literature

review

2 Objective2: To describe in which way culture

influences objectives in an organizational context

Corresponding sub-question: In an organizational

context, in which way does culture influence

objectives?

Literature

review

3 Objective3: To identify the characteristics of

organizational culture that influence the achievement

of asset management objectives

Corresponding sub-question: What are the

characteristics of organizational culture that

influence the achievement of asset management

objectives?

Literature

review and

Focus group

4 Objective4: To develop an approach to assess

organizational culture characteristics in an asset

management context

Corresponding sub-question: How can characteristics

of organizational culture be assessed in an asset

management context?

Literature

review

Table 1.4: Research objectives, questions and methods


2 Literature

2.1 Typical features of asset management objectives

What are typical features of asset management objectives?

This paragraph deals with what asset management objectives are. Firstly, they are

derived from general business objectives. Next, they are derived from the core purpose

of asset management itself. Finally, objectives related to asset management processes

are derived. Describing these features is necessary to be able to relate organizational

culture characteristics to asset management objectives further on in the research.

2.1.1 Asset management business objectives

Assets do not have a standalone purpose. They serve business objectives. According to

Kaplan&Norton many of an organization’s resources supply the infrastructure for

accomplishing work: designing, producing, selling, and processing [Rkn, p59]. Physical

infrastructure fulfills a role as part of the internal-business-process value chain. Figure

2.1 shows this value chain.

Figure 2.1: The internal business process value chain [Rkn, p96]

According to Stavenuiter, based on the life cycle of an asset, there are four main asset

management objectives [Rst, p58]:

Specify system functionality;

Acquire system functionality;

Achieve cost effectiveness;

Justify phase out.

Further, Stavenuiter refers to Juran an Blanchard while stating that the objective to

achieve cost-effectiveness should be considered as number one [Rst, p58. PAS 55

definition of ‘asset management’ also indicates a high level asset management objective.

To optimally and sustainably manage assets, their associated performance, risks and

expenditures over their life cycles for the purpose of achieving the strategic plan [PAS55-

2008-1, Rp, pV]

Similarly, the definition of ISO55000 [Riso, p2] leads to the following high level asset

management objective:

To realize value from assets in the delivery of its outcomes or objectives. Realization of

value requires the achievement of a balance of costs, risks and performance, often over

different timescales


2.1.1 Asset life cycle

The life cycle concept is a key element of asset management. Assets often pass through

identifiable asset life stages. The description (and naming) of these stages can differ

between assets, their applications, and organizations. Life cycle theory is derived from

the discipline of life cycle management (LCM). LCM is defined by Stavenuiter [Rst, p196]

as:

An asset management approach to manage a capital asset, seen as a (complex) system,

by functions, with the aim of achieving the required system effectiveness for the

estimated (minimum) costs throughout the asset life cycle

Wherein an assets life cycle or lifetime [Rst, p 196] is defined as:

The period of extending from inception of development activities, based on an identified

need or objective, trough decommissioning and disposal of the asset/system

Figure 2.2 displayed below shows the phases of a system’s (asset’s) life cycle phases

according to Blanchard.

Figure 2.2: The system life-cycle phases [Rb, p15]

From a product perspective, Emblemsvåg introduces a broader view on the life cycle

concept by incorporating a ‘reverse loop’ wherein a de-manufacturing process takes

place. See figure 2.3. He explains that [Re, p19], until recently, a manufacturer focused

on the upper half of the figure, whereas the customer typically thought of the right hand

side of the figure. The lower half of the figure was left to society, while nobody thought of

the left hand side. Due to increasing environmental problems, more and more laws and

regulations surfaced.

Figure 2.3: The product life cycle in a broader view [Re, p19]


This broader view of the life cycle is important, because environmental management,

sustainability and social responsibility are increasingly important in an organization’s

license to operate. An organizations responsibility regarding an asset, reaches further

that the period the asset is possessed by the organization [ref PAS 55 and ISO55000].

Therefore, asset management objectives can and should be administered to comply to

this responsibility.

2.1.2 Realization of value and achievement of cost-

effectiveness

Stavenuiter addresses system and installation performance in his approach in the

development of an asset management control system that is capable of achieving cost-

effective management control of physical assets. In doing so, he refers to definitions

proposed by Juran and Blanchard of cost effectiveness [Stavenuiter, Rst, p21 and

Blanchard, Rb, p81]. Cost effectiveness is:

Juran: The value received for the resources expended, the ratio of cost to

(system) effectiveness;

Blanchard: The ratio of system effectiveness (SE) and Life Cycle Costs (LCC).

Cost-effectiveness metrics can be expressed in terms of some measure of effectiveness

(MOE) capturing system effectiveness (SE) and Life Cycle Costs (LCC). According to

Blanchard this measure can vary significantly as the various factors in its calculation are

a function of the mission to be accomplished [Rb, p81]. Figure 2.4 displayed below

illustrates examples of Cost-effectiveness related figures of merit.

Figure 2.4: Examples of CE figures of merit [Rb, p87-88]

PAS 55 does not directly define cost

effectiveness. However, the term is used in

the normative text. Further, PAS 55 provides

a definition of effectiveness: the extent to

which planned activities are realized and

planned results are achieved [Rp, p3]. In the

process of developing the ISO55000 standard

addressing ‘cost-effectiveness’ was dropped in

favor of ‘value’. This value constitutes the

achievement of the best combined outcome of

the performance, risk and cost related to an

asset over its entire lifecycle. This is a

primary asset management objective (see

ISO55000 and PAS 55) Figure 2.5 shows the

dimensions of performance, risk and cost in

relation to a physical asset. It shows that,

depending on the risk involved, the cost that

have to be made to guarantee asset

performance can differ.

Figure 2.5: Asset related performance, risk and cost [inspired on PAS 55]

LCC

OEECE

LCC

tyAvailabiliCE

LCC

SECE

LCC

sfectivenesLogisticEfCE

LCC

ePerformancCE


Juran’s definition of cost-effectiveness indicates that the value based approach combining

performance, risk and cost, is similar to cost-effectiveness. Figure 2.6 integrates the

concepts of value realization and cost-effectiveness.

Figure 2.6: Integrated concept of value realization and cost-effectiveness [adapted from Blanchard, Rb]

2.1.3 Asset management objectives

Asset management objectives must be defined and specified in significant figures. Also, it

must be possible to divide the objectives into sub objectives in such a way that they can

cascade down to all logistic actors and into all life cycle phases of an asset [Stavenuiter,

Rs, p62]. PAS 55 gives the following definition of asset management objectives:

specific and measurable outcome or achievement required of asset system(s) in

order to implement the asset management policy and asset management

strategy;

detailed and measurable level of performance or condition required of the assets;

specific and measurable outcome or achievement required of the asset

management system.

ISO55000 ‘Overview, Principles and Terminology’, defines ‘objective’ in a more strait

forward way: result to be achieved. This definition is accompanied by the following four

entry notes:

An objective can be strategic, tactical or operational;

Objectives can relate to different disciplines (such as financial, health and safety,

and environmental goals) and can apply at different levels (such as strategic,

organization-wide, project, product and process;

An objective can be expressed in other ways, e.g. as an intended outcome, a

purpose, an operational criterion, an asset management objective or by the use of

other words with similar meaning (e.g. aim, goal, or target);

In the context of asset management systems standards, asset management

objectives are set by the organization, consistent with the asset management

policy, to achieve specific measurable results.


PAS 55 and ISO55000 prescribe that performance measures should be SMART (Specific

Measurable, Achievable, Realistic and Time dependant) [Rp, p9]. Stavenuiter also gives

clear directions on making performance measures specific [Rst, p91-99] and does this by

the use of definitions and formulas. This is important, because performance measures

can have multiple definitions and formula’s, leading to different outcomes. For instance,

according to Blanchard there is a variety of approaches to availability [Rb, p72]. This

statement is followed by the description of three commonly used approaches to

‘Availability’: ‘Inherent Availability’, ‘Achieved Availability’ and ‘Operational Availability’

[Rb, p72-73], each with their own definition and formula. Without definition and formula

an objective based on availability is ambiguous.

PAS 55-2008-1 and ISO55000 sum up a set of

requirements for asset management objectives

that need to be met in order to comply. See figure

2.7 for the requirements of PAS 55. Asset

management objectives may take the form of

specific performance and condition targets.

According to PAS 55 asset performance/condition

targets can be measures of [Rp, p9-10]:

service/supply standards;

levels of service/supply;

reliability, availability, maintainability;

functionality;

survivability;

capacity, output quantity, output quality;

customer satisfaction; safety and/or

environment impact;

legislative, regulatory or statutory

compliance or a combination of the

elements above.

Figure 2.7: PAS 55 requirements for asset management objectives

2.1.4 Asset management processes

According to PAS 55 business value realization of physical assets requires the utilization

of four asset types. The following summary introduces the asset types by the use of

examples [ISO55000]:

physical assets: infrastructure, plant, equipment, buildings, facilities and other

tangible items;

information assets: good quality data, information and IT systems, licenses, etc.

financial assets: cash, investments, entitlements, liabilities and other financial

instruments;

intangible assets: the organization’s brand, reputation, image, customer loyalty,

etc.;

human assets: the experience, knowledge and competence of the workforce, both

directly and indirectly employed.


Figure 2.8 is based on the five asset types distinguished by PAS 55 and illustrates how

assets realize business objectives through the combined utilization of these asset types.

The red dotted lines indicate processes wherein value realizations take place: Asset

management processes. The fourth entry note of the ISO 55000 definition of asset

management processes indicates that objectives are also to be set for asset management

processes.

Figure 2.8: Business realization through the combined utilization of five types of assets

Stavenuiter explains that

getting and keeping a grip

on the logistic processes

and by that on the technical

system (asset), is conside-

red the primary objective of

asset manage-ment control

[Rs, p66]. Figure 2.9 shows

a process definition matrix

related to the domain of

AMC.

FFigure 2.9: AMC domain asset related Process Definition Matrix [AMC PRIMA guidelines]

AMC DOMAIN ASSET RELATED

CONTROLPERFORMORGANIZESPECIFY

PROCESS PHASES

SERVICE LEVEL

AGREEMENTS

CONTRACT

MANAGEMENT

RESOURCE

MANAGEMENT

LIFE CYCLE

MANAGEMENT

MODEL

LCM SYSTEM

PLAN

SYSTEM COST

EFFECTIVENESS

TEAM

WORK

TEAM

BUILDING

TEAM

MANAGEMENT

ORGANIZATIONAL

PLAN

ACTIVITY

PLAN

CONTROL

PLAN

MANAGEMENT

CONTROL

SYSTEM

INFORMATION

PORTAL

LIFE CYCLE

MANAGEMENT

TEAM

ACTOR

DEFINITION

MODEL


2.2 How culture influences organizational objectives

In an organizational context, in which way does culture influence objectives?

In order to identify characteristics of organizational culture that influence the

achievement of asset management objectives, it is required to understand in which way

organizational culture influences objectives. This paragraph focuses on how this

mechanism works by addressing culture as a multi leveled concept that relates to

behaviour. Further, this paragraph explains the role of employee commitment,

motivation and job satisfaction. These will appear to be important elements of the

mechanism embedded in organizational culture.

2.2.1 Approaches to organizational culture

Organizational culture, can be investigated and examined by different approaches and for

different purposes. Figure 2.10 displays a continuum of studies emphasizing the unique

nature of each individual setting on one end, and studies emphasizing the universal

dynamics of social systems on the other hand [Denison & Spreitzer, Rds, p8]. Along the

continuum, figure 2.10 also identifies four distinctly different approaches to studying

organizational culture. For the purpose of this research, it is important to understand the

nature of organizational culture and its embedded mechanisms. Note that figure 2.10

locates Schein’s approach on ‘describing and theory building’, where Denison’s,

Hofstede’s and Quinn’s approach is rather focused towards ‘traits and typologies’.

Figure 2.10: Approaches to investigating and examining organizational culture [Rds, p8]

2.2.2 Definition and multi level concept of culture

The definitions of safety culture and quality culture presented in the introduction of this

research indicate that values, attitudes, perceptions and behavior are important elements

of culture. Many definitions of culture describe culture using components such as

assumptions, beliefs, and values. Schein, one of the foremost experts in the field of

organizational culture, offers the following formal definition of organizational culture [Rs,

p18 and Trompenaars & Woolliams, Rtw, p98, and O’Donovan, Ro, p41]:

A pattern of shared basic assumptions that the group learned as it solved its problems of

external adaptation and internal integration, that has worked well enough to be

considered valid and, therefore, to be taught to new members as the correct way to

perceive, think, and feel in relation to those problems


Literature on organizational culture reveals that culture is often addressed as a multi

leveled concept. Schein is one of the founders of this concept. The level [Schein, Rs, p23]

indicates the degree to which the culture phenomenon is visible to the observer, ranging

from the very tangible overt manifestations that can been seen and felt, to deeply

embedded, unconscious, basis assumptions. Trompenaars&Woolliams refer to an ‘explicit

culture’ and an ‘implicit culture’ while referring to Schein´s multi level approach [Rtw,

p25]. See figure 2.11. Further Table 2.1 gives a classification of the multi level

approaches of several culture researchers.

Figure 2.11: The multi leveled concept of culture after Trompenaars & Woolliams [Rtw, p25]

Researcher Level – Most

accessible

Intermediate Deepest

Schein (1985,

2010)

Artefacts Espoused beliefs and

values

Basic underlying

assumptions

Roussean

(1988,1990)

Observable artefacts,

observable patterns of

behaviour

Behavioral norms,

which can be

inferred from

observed behaviors,

values, as expressed

consciously by

organization

members

Fundamental

assumptions, core

values that may

not be articulated

Deal and

Kennedy

(1986);Lundberg

(1990)

Manifest level-symbolic

artefacts, language,

stories, rituals,

normative behaviours

Strategic level-

strategic beliefs

Core level-

ideologies, values

and assumptions

Tosi&Mero Modes of

implementation

Manifestations of

organizational

culture

Basic values of the

dominant coalition

O’Donovan

(2006)

Reflections-artefacts and

results

Expressions-

attitudes, behaviour

Drivers – Needs

and central

paradigm

Trompenaars &

Woolliams

(2005)

After Schein After Schein After Schein

Table 2.1: Multi level approaches to organizational culture [modified from Glendon&Stanton] of culture researchers


Although the approaches differ in the terms they use and in the exact content of each

level, they indicate that culture is multi leveled: There are elements that are visible at

the surface on one hand, and elements embedded at the core on the other hand. Figure

2.12 displays the model used by Tosi & Mero. Its starting point is the basic values of the

dominant coalition, which goal is to ensure that its values are firmly embedded in the

organization. Its values provide the foundation of the next level, the manifestations of

organizational culture. These are elements such as selection and socialization, ideologies

and myths and symbols. Finally the upper layer, modes of implementation, is the only

part that is obvious for outsiders [Tosi&Mero, Rtm, p126].

Figure 2.12: The multi leveled model of culture used by Tosi&Mero [rtm]

According to O’Donovan organizational culture has a clear cause and effect relationship

[Ro, p68 and 72]. By combining theories of other researchers she introduces her multi-

level approach to organizational culture. See figure 2.13. The cause and effect

relationship works bottom up, from drivers to reflections trough expressions. Also, she

divides each layer into to two sub layers.

Drivers

Needs ▼

What we require as a group to be happy, productive workers; needs generate emotions, motives and energy which can be positive and

negative.

Causes Central

Paradigm ▼

The network of shared beliefs (principles and values) and assumptions from which people derive meaning and understanding of their world.

Expressions Attitudes ▼

Patterns of shared attitudes in relation to people, things and situations.

Bahaviour ▼

Patterns of shared conduct in different situations, including daily routines and the means deemed acceptable for achieving ends.

Reflections Artefacts ▼

Artefacts include symbols of the past and present, and those which represent what the company aspires to.

End Effects Results

Results reinforce or explode the beliefs and assumptions of major stakeholders on the culture in terms of ethics, service, etc.

Figure 2.13: The cause and effect relationship to organizational culture after O’Donovan [Ro, p68]


The following figure (Figure 2.14) represents the three level model of organizational

culture as proposed by Schein [Rs, p24]. Schein approaches organizational culture

outside- in from the observers perspective to the level of basis underlying assumptions,

trough espoused beliefs and values.

Figure 2.14: The three levels of culture after Schein [Rs, p24]

2.2.3 Exploring the layers of culture

This paragraph serves the purpose of exploring the layers of culture to gain an

understanding of what culture is and why it works the way it does.

The most accessible level: Artefacts

Schein’s [Rs, p25] model presents the upper level as ‘Artifacts’. In the broadest sense

artifacts are all phenomena that can been seen, heard and felt when encountering a new

group. According to Schein typical artifacts are observed behavior, the organizational

processes, charters, formal descriptions of how the organization works, organizational

charts, its language, technology and products, artistic creations, clothes, manners of

address, emotional displays, myths and stories, published list of values and observable

rituals and ceremonies. O’Donovan addresses artifacts as being a sub level of the most

accessible level [Ro, p75]. She distinguishes between artefacts and the product of this

artefacts: ‘Results’. Note that an objective, as discussed in earlier in this chapter, is a

desired result. Tosi & Mero refer to the levels of ‘Modes of implementation’ [Rtm, p130]

and ‘Manifestations of organizational culture’. These two levels comprise the most

accessible level of artifacts in the model of Schein:

Modes of implementation: Specific examples are designs for products and

services, policies for dealing with customers, approaches to managing human

resources, the formal structure and types of control.

Manifestations of organizational culture: At this level the basis values of the

dominant coalition (see further on) are reflected in concepts, meanings, and

messages that are embedded in their decisions and in organizational practices

such as selections and socialization strategies, organizational status distinctions,

ideologies, myths, language, symbols, and rites and ceremonials.


The intermediate level: Espoused beliefs and values

At the intermediate layer Schein identifies espoused beliefs and values. These are

[Schein, Rs, p25] the values and beliefs of individual group members that have been

applied many times before and have proven to be valid to that group. The group has

repeatedly observed that the results and outcome of their actions were successful, which

caused the perceived value to transform into a shared value or belief gradually.

Ultimately, when this process keeps repeating itself, shared values and beliefs transform

into a basic underlying assumption (one level deeper). These are treated as

nonnegotiable [Schein, Rs, p23]. Figure 2.15 visualizes this process by following the

positive feedback loop. The negative feedback loop indicates that beliefs and values

applied that lead no negative outcome, weaken, become avoided and eventually become

forgotten.

Figure 2.15: The mechanism of culture [inspired by Schein, Rs, p23]

O´Donovan places attitudes and behavior at the intermediate level of her organizational

culture model. According to O´Donovan as groups develop, established norms to create a

shared view of the world with certain attitudes encouraged and discouraged amongst

group members [Ro, p75 ]. This resembles the positive and negative feedback loops in

figure 2.15 above. Attitudes exist in relation to people, places and things and can be

deciphered by observing behavior [O’Donovan, Ro, p75]. As attitudes significantly

influence behavior they must be considered when managing or changing organizational

culture. Further, O’Donovan refers to behavior as the behaviors that are shared in a

social group, those that demonstrate to the world the groups internal way of doing things

and distinguish them from other groups [Ro, p76]. The relationship between the

‘espoused beliefs and values’ described by Schein and ‘attitudes and behaviors’ described

by O’Donovan will become clear next paragraph.


The deepest level: basic underlying assumptions

The implicit core, the deepest level of organizational culture constitutes basic underlying

assumptions. According to Schein these are ‘taken for granted beliefs and values’. They

have led to success many times before and are therefore seen as the correct way of

doing things. Figure 2.16 visualizes the mechanism embedded within organizational

culture that causes actions to become valid in the sense that they are perceived to be the

right ‘way of doing things’ after they have repeatedly led to successful results.

Figure 2.16: The mechanism that causes actions to become valid [inspired by Schein, Rs, p28-32]

Schein explains that it is extremely difficult to change basic assumptions [Schein, Rs,

p28]:

To learn something new requires someone to resurrect, re-examine and possibly change

some of the more stable portions of our cognitive structure. This is difficult because the

re-examination of basic assumptions temporarily destabilizes our cognitive and

interpersonal world, releasing large quantities of basic anxiety. Rather than tolerating

this, we tend to want to perceive the events around us as congruent with our

assumptions, even if that means distorting, denying, projecting, or in other ways

falsifying to ourselves what may be going on about ourselves. It is in this psychological

process that culture has its ultimate power. When basic value becomes to be valid, group

members will find behavior based on any other premise inconceivable.

The explanation of Schein indicates that basic underlying assumptions are unconscious

and become very hard to change. According to Schein the essence of culture lies in the

pattern of basic underlying assumptions: Once this level is understood, it is easier to

understand the other more surface levels [Rs, p32]. Basic underlying assumptions are

defined as [Schein, Rs, p28]:

Unconscious, taken for granted beliefs and values that are shared by a group


In the bottom level of the model used by Tosi & Mero there is referred to a dominant

coalition as a group that wields the most power and control. Their values may originate

with the firm’s founder and reflects his or her fundamental beliefs about what should be

done, how it should be done, who should do it, and the way members are treated. The

primary interest of the dominant coalition is to maintain the cultural identity of the firm

so that it is consistent with the values of the members in that coalition [Tosi & Mero,

Rtm, p125]. These could be important values like innovation, risk-taking, stability and

security, respect for people, team orientation and collaboration, or aggressiveness.

Comparison of levels

The models of Schein, O’Donovan and the model used by Tosi & Mero are similar in the

sense that they are multileveled. However, they are not alike. Table 2.2 shows a more

detailed comparison of the levels proposed by these authors. The most basic difference is

that Schein’s approaches culture top down, form the most accessible level to the

deepest. The model of O’Donovan and the model used by Tosi & Mero approaches

organizational culture bottom up: Starting with the deepest level. In detail, there are also

differences in the content of each level.

Researcher Schein Tosi & Nero O’Donovan The most accessible level

Artifacts Artifacts

Modes of implementation

Reflections: Results

Manifestations of organizational culture

Reflections: Artifacts

The intermediate

level

Espoused beliefs and

values

Basic values of the

dominant coalition

Expressions:

Behaviour

Expressions: Attitudes

The deepest level Basic underlying

assumptions

Drivers:

Central paradigm

Drivers: Needs

Table 2.2: A comparison of levels of culture of Schein, Tosi&Mero and O’Donovan

2.2.4 The link between group and individual behavior

In order to understand how and why organizational culture (the group level) influences

organizational effectiveness, it is important to understand what happens on the individual

level and to understand individual and group behavior. The behavioral component of

organizational culture should not be seen as the only determinant of behavior. According

to Schein, there are other factors that influence behavior [Rs, p20]. Note that his

definition of organizational culture does not include behavior. It emphasizes that the

shared assumptions deal with how things are perceived, though and felt about. Behavior

is product of both the cultural predisposition and the immediate external environment.

Therefore, behavior is determined by factors other than culture alone. Although

organizational culture is not an exclusive determinant of organizational behavior, it is an

important one. Also, a lot of what can be observed at the most accessible level of culture,

is determined by and influences behavior [O’Donovan, Ro, p75]. Behavior in an

organizational context is subject of study in the field of organizational behavior. This is

[Robbins, Rr, p6-9 and Tosi & Mero, Rtm, p9 and Rz, p3] a field of study that

investigates the impact that individuals, groups, and structure have on behavior within

organizations, for the purpose of applying such knowledge towards improving an

organization's effectiveness.


Behavior (B) can be seen as a function of a person (P) and an environment (E), or B = f

(P x E) [Tosi & Mero, Rtm, p4]. See figure 2.17. The environment interacts with the

attributes of the person, and together determine behavior. This resembles what Schein

pointed out about behavior being a result of both the environment and organizational

culture (see above). Actual behavior refers to an overt act of the person that can be

measured, but it reveals little about why it occurs. Behavior at work can be thought of in

terms of tasks, contextual and ethical performance. Further, behavior results in specific

consequences. It influences productivity, workplace injury and can lead to conflict or

trigger positive or negative reactions from others. These consequences reinforce the

probability of occurrence of the behavior. The feedback loop indicates that a person can

receive feedback on their behavior and also on the consequences of this behavior. Note

that the mechanism embedded within organizational culture that causes espoused values

and beliefs to become basic underlying assumptions (Figure 2.17) also has feedback

loops.

Figure 2.17: A basic model of behavior [Rtm, p4]

What is also notable about figure 2.17 is that the person (P) is represented by a set of

elements (Heredity…Needs) that resembles the multi level character of organizational

culture. Apparently, individual behavior is also multi leveled. This is supported by the

Logical level Approach of Dilts. He [Cheal, Rc p1] presents the model as a pyramid style

hierarchy, wherein each level is a separate category that contains the level directly

below. See figure 2.18. The deepest levels are not directly visible to an observer.

However, the behavior in relation to its environment is.

Figure 2.18: The Logical Level Approach of Dilts [Rc, p1]


The model can help and individual asking the question ‘Who am I ?’ in a deeper sense.

Rather than asking the question of “Who am I?” simply from the level of Identity, it may

be more enlightening to work through all the levels (Cheal):

Spirit: How is who I am connected to the bigger picture, the human race… what

legacy am I creating?

Identity: What is my sense of self? (When I ask “Who am I?” at this level, is it my

ego playing selfreferential tricks?)

Beliefs and Values: How did I develop my beliefs and values and how might they

help and hinder me being ‘true to myself’?

Capability: How did I know to develop the particular skills and capabilities I have?

Behaviours: How are my behaviours an expression of me?

Environment: Who am I in different contexts and environments… does this change

or stay the same?

Figure 2.19 displays a more sophisticated model of behavior. It shows that behavior

determined by attitudes that are tied to values and beliefs regarding a specific object or

referent. Also, it shows that there are positive and negative feedback loops. These

indicate that by positive and negative outcome, values and beliefs are able to change

through socializing and learning. In the following text, the components of the model are

explained further.

Figure 2.19: A sophisticated model of behaviour [Adapted from Rtm, p40]

A persons attitude (weather is good or bad) should be specified in relation to the object

of the attitude [Tosi & Mero, Rtm, p40]. Attitudes reflect a person’s likes and dislikes

toward other persons, physical objects, events and activities in their environment. In this

sense an object is any physical or non physical referent as part of an environment where

specific values and beliefs can be held upon. Tosi & Mero define [Rtm. p38] attitudes as

propensities, or tendencies, to react in a favorable or unfavorable way towards an object

or referent. The attitude towards the object is determined by the values and beliefs a

person’s holds towards the object or referent. Values [Tosi & Mero, Rtm, p41] reflect a

sense of right or wrong. They are more general than attitudes and do not need an object

or referent. Attitudes form as our perceptions of our environment are evaluated in terms

of our relevant values. They define the good life and identify goals worthy of our

aspirations. Values are expressed in statements such as ‘equal rights for all’ , ‘hard work

is the road to success’ and ‘honesty serves best.


Covey provides a different view on values by making a distinction between principles and

values. Principles [Covey, R2, p34-36] are guidelines for human conduct that are proven

to have enduring, permanent value. They are fundamental. Examples are the principle of

fairness, integrity, honesty, human dignity and growth. Principles are not values. Covey

explains that values can differ from individual to individual and group to group, where

principles are more like universal values. For instance, a gang of thieves can hold values

like ‘scam and stealing lead to success’ that are opposite to principles as ’honesty leads

to success’. Such a gang of thieves can share values, but they are in violation of the

fundamental principles [Covey, Rc, p35].

Beliefs are the thinking component of attitudes [Tosi & Mero, Rtm, p41]. They do not

refer to favorable or unfavorable reactions. They only convey a sense of ‘what is’ to the

person. Believes may not necessarily be factual, even if though they represent the truth

for a particular person. Beliefs can also vary on how absolute they are. One might believe

that nuclear power plants are all unsafe, of believe this is true for some of them. Tosi &

Mero [Rtm, P38] explain that attitudes can have a significant effect on the behavior of a

person at work. Attitudes toward supervision, pay, benefits, promotion, or anything that

might trigger positive or negative reactions. By referring to attitudes as being ‘positive’

or ‘negative’ an emotional tone is generated by or towards the object of the attitude. On

forehand a person has some preference, like or dislike, based on what he knows about

the object. Attitudes [Rz, p38 and lesson32] consist of three major components:

The Evaluative Component: The most obvious component of attitudes is how we

feel about something. This aspect of an attitude, its evaluative component, refers

to our liking or disliking of any particular attitude object;

The Cognitive Component: Attitudes involve more than feelings. They also involve

knowledge, things we know about an attitude object. These beliefs may be

completely accurate or inaccurate, but they still comprise the personal knowledge

that contributes to your attitude. Such beliefs are referred to as the cognitive

component of attitudes;

The Behavioral Component (intentions to behave): Naturally, what you believe

about something and the way you feel about it will influence the way you are

predisposed to behave. It is very important to caution that a predisposition may

not perfectly predict one's behavior.

Note that values and beliefs, attitudes, behavior and results are embedded in the layers

of the culture models proposed by Schein, O´Donovan and Tosi&Mero. Also note again

that the feedback loops in figure 2.16 strongly resemble the feedback loops that change

beliefs and values into basic underlying assumptions, or weaken them, to become

avoided and forgotten. This indicates that the mechanism that is embedded in

organizational culture is also present on an individual level.


2.2.5 Motivation, job satisfaction, and organizational commitment

In relation to behavior, job satisfaction, motivation and organizational commitment

theories further explain the link between beliefs and values on one hand, and the

fulfillment of activities (the achievement of objectives) on the other hand.

According to O’Reilly, after spending some time in an organization, a person eventually

reaches some level of psychological and behavioral commitment and accommodation to

it. Organizational commitment [O’Reilly, Ro, p18] is an individual’s psychological bond to

the organization, including a sense of job involvement, loyalty, and a belief in the values

of the organization. Tosi & Mero define Organizational commitment as [ Rtm, p48] the

degree to which a person identifies with the organization, relative to other factors that

affect a person at work, such as the work itself or other factors outside the organization

that compete with it for the person’s commitment and identification. According to

Mowday, Steers, & Porter [Joo & Lim, Rjl, p5] it is the psychological bond that an

employee has with an organization and has been found to be related to goal and value

congruence, behavioral investments in the organization, and likelihood to stay with the

organization. O´Reilly identified three stages of organizational commitment [Ro, p18]:

Compliance, Identification and internalization. Figure 2.17 displayed below describes

each stage. Tosi & Mero use a similar model to explain organizational commitment [Rtn,

p49]. O’Reilly argues [Ro, p17] that the choice of strategy has significant implications for

the informal organization or organizational culture. That is: The norms of the

organization must help to execute the strategy. There are two reasons why a strong

culture is valuable:

the fit of culture and strategy;

the increased commitment by employees to the firm.

Figure 2.20: Three stages of employee commitment [Ro , p18]

Further, O’Reilly [Ro, p17] explains that culture is critical in developing and maintaining

levels of intensity and dedication among employees that often characterizes successful

firms. This strong attachment is particularly valuable when the employees have

knowledge that is instrumental to the success of the organization or when very high

levels of motivation are required. A research performed by Kotter and Heskett [Lathi, Rl,

p7] revealed that strong organizational cultures can be advantageous as they help

employees align their values with the values of the organization. This would give

unusually high levels of motivation. Tosi & Mero argue that, trough selection and

socialization strategies, organizations try to select and indoctrinate members with values

that are consistent with the culture. When effective selecting and socializing of members

with values congruent with the organizational culture, the results are increased job

satisfaction, higher organizational commitment and turnover [Tosi&Mero, Rtm, p128].

Stage of commitment

Description

Compliance a person accepts the influence of others mainly to obtain something from others, such as pay

Identification the individual accepts influence in order to maintain a satisfying, self-defined relationship. People feel pride in belonging to the firm

Internalization The individual finds the values of the organization to be intrinsically rewarding and congruent with personal views


Maister [Rm, 192] visualizes how employee

motivation leads to organizational

effectiveness in with what he calls ‘the

spiral of motivation’. See figure 2.21. A high

measure of motivation leads to high

productivity and quality. This leads to

market place success and to economic

success. This results in awarding an

interesting work, and ultimately to an

increase of motivation. Maister explains that

the spiral also works in the opposite

direction. This negative force causes a

motivation crisis and can be very hard to

stop once it occurs.

Figure 2.21:The spiral of motivation as proposed by Maister [Rm, p192]

To be motivated’ means to be moved to do something. A person who feels no drive or

inspiration to act is thus characterized as unmotivated, whereas someone who is

energized or activated toward an end is considered motivated [Ryan & Deci, Rrd, p55].

Motivation is defined as [Lathi, Rl, p1]: an energizing, mobilizing force related to striving

toward goals and satisfying needs. There are several ways to categorize motivation. The

most basic distinction is between intrinsic motivation and extrinsic motivation [Ryan &

Deci, Rrd, p55]. Intrinsic motivation is referred to as the doing of an activity for its

inherent satisfactions rather than for some separable consequence. When intrinsically

motivated, a person is moved to act for the fun or challenge entailed rather than because

of external prods, pressures, or rewards [Ryan & Deci, R12, p56]. Intrinsic motivation

arises from the individual’s positive reaction to qualities of the task itself. This reaction

can be experienced as interest, involvement, curiosity, satisfaction, or positive challenge

(Joo & Lim, Rjl, p6). Extrinsic motivation is a construct that pertains whenever an activity

is done in order to attain some separable outcome. Extrinsic motivation thus contrasts

with intrinsic motivation, which refers to doing an activity simply for the enjoyment of the

activity itself, rather than its instrumental value. [Ryan & Deci, R12, p60].

Maslow’s approach to motivation considers human behavior as being stimulated by the

urge to satisfy needs. He distinct between basic needs and growth needs, see Figure

2.22. These needs are hierarchical in the sense that lower level needs must be at least

temporarily satisfied before learners can be motivated by higher needs. For example, a

hungry person is not likely to be motivated by esteem needs. Once these basic needs are

satisfied, the motivation to satisfy them diminishes. Growth needs, on the other hand,

can never be satisfied completely. When these needs are partly fulfilled, the need to fulfill

them may become even greater [Maslow, Rma, p15-31]. Covey [Rc, p241] also

discusses needs, supported by a metaphor. He explains how reading his book seizes

being a need for you if the room where you´re sitting in would caught fire. According to

Covey, next to psychological survival, the greatest need of a human being is to be

understood, to be affirmed, to be validated and to be appreciated. This closely resembles

the basic needs identified by Maslow.

Motivation

Productivity And

Quality

Marketplace Success

Economic Success


Figure 2.22: Maslows hierarchy of needs [Rma]

McGregor developed two sets of assumptions as being opposite in the amount of

motivation employees have [Tosi & Mero, Rtm, p13, and Rzz, p6 and Schein Rs, p376,

and O’Donovan, Ro, p128]. Theory X assumes people are lazy, have personal goals that

counter to the organization’s, and because of this have to be controlled. Theory Y

assumptions are based on greater trust in others. Employees are more mature, self-

motivated, and self-controlled. See table 2.3.

Theory X assumptions Theory Y assumptions 1 People do not like work and try to avoid it

1 People do not naturally dislike work; work is a

natural part of their lives

2

People do not like work, so managers have to control, direct, coerce, and threaten employees to get them to work towards organizational goals

2 People are internally motivated to reach objectives to which they are committed

3 People prefer to be directed, to avoid responsibility, to want security; they have little ambition

3 People are committed to goals to the degree that they receive personal rewards when they reach their objectives

4 People will seek and accept responsibility under favorable conditions

5 People have the capacity to be innovative in solving organizational problems

6 People are bright, but under most organizational conditions their potential are underutilized

Table 2.3: MCGregors Theory X and Y


Job design aims to enhance job satisfaction and performance, methods include job

rotation, job enlargement, job enrichment and job re-engineering. Job satisfaction

describes the degree to which an individual is content with his /her job. Factors

influencing job satisfaction include the management style and culture, employee

involvement, empowerment and autonomous work position. The reinforcement theory,

helps to understand how rewarding or punishing behavior affects the performance and

job satisfaction of employees [Tosi & Mero, Rtm, p80]. Depending on the event, there is

a positive reinforcement that increases the probability of the behavior. If there is a

negative response, or worse, a response of punishment and extinction, there are

opposite or side effects, and a decrease in the probability of the behavior. Note that

these feedback loops resemble those that strengthen and weaken espoused values and

beliefs according to Schein.

Figure 2.23: Reinforcement consequences [Rtm , p81]

The work of Van Riel concerning ‘Corporate Identity’ also provides insights into the link

between behavior and the positive or negative attitude employees hold against their

organizations. According to Van Riel, academic in research it is assumed that a high

degree of identification with the organization can be predicted by the following aspects

(antecedents) [Rr, p76]:

Perceived external organizational prestige;

Job satisfaction;

Appraisal with organizational values and goals and the means by which these are

brought into practice;

Corporate culture;

Al four of these antecedents appear to influence organizational identification. A higher

degree of identification with the own organization, will influence the performance of an

organization positively [Van Riel, Rr, p76].


2.3 Asset management organizational culture characteristics

What are the characteristics of organizational culture that influence the

achievement of asset management objectives?

Earlier in this chapter, the multi leveled concept of organizational culture was introduced.

This reveals that, when identifying cultural characteristics, the focus should be on the

deepest layer, rather than on the layers of artifacts and espoused beliefs and values. This

paragraph deals with the characteristics that describe the deepest layer of organizational

culture. Firstly, organizational culture characteristics in general are explored. Then, the

scope will be narrowed to that of asset management. The functions of this paragraph are

to develop an theoretical construct, and to determine to which extend the question

related to this research objective can be answered by public available literature.

2.3.1 Cultural content dimensions

The organizational culture related characteristics of interest of this research, basic

underlying assumptions, are measured against so called culture content dimensions

[Schein, Rs, p69]. According to Cameron & Quinn a culture dimension is defined as:

A continuum containing a cluster of opposite or competing assumptions

A culture content dimension (further dimension) is bipolar. An example of a dimension is

an organization’s ‘Internal focus versus external focus’ [Cameron&Quinn, Rcq, p32], see

figure 2.24. Assumptions related to organizational focus can be anywhere from

completely internal on one end to completely external on the other hand. The position of

the assumptions is determined by how actions and decisions related to organizational

focus have lead to a successful result in the past. The blue cross indicates a position of

basic underlying assumptions.

Figure 2.24: Example of a cultural content dimension [based on Rcq , p32]

In untangling culture and organizational culture, researchers have proposed a variety of

dimensions to describe the phenomena they investigated. One reason so many

dimensions have been proposed is that organizational culture is extremely broad and

inclusive in scope [Cameron&Quinn, Rcq, p29 and Schein, Rs, p69]. Schein explains that

the content of culture, that what an observer would view as the actual rules, norms,

values, and basic assumptions of a given culture, might vary considerably, both in terms

of which content dimensions might be most relevant to understanding that culture and in

terms of the position along these dimensions [Rs, p69]. Further on in this research

dimensions proposed by various researchers will be explored.


When the organizational culture scope is narrowing to asset management, the amount of

available literate, internet sources, proven cases etcetera, reduces dramatically. Often

stressed is the importance of addressing the culture aspect of asset management,

without actually addressing what organizational culture is and why it works the way it

does. There is no direct answer to questions like:

‘Which cultural dimensions relate to asset management?’;

‘Which positions indicate assumptions that have a restricting and supporting effect

on the achievement of asset management objectives’.

There is one particular source that addresses the culture aspect of asset management

and proposes eight asset management dimensions, based on experience with a number

of transport, civil engineering and construction companies [Lloyds, Rl, p124]. See figure

2.25. below. Johnson does not depict the dimensions, nor does he explicitly address basic

underlying assumptions and their positions. However, he mentions that asset

management companies, even when working in the same sector, can differ on any

dimension, even being at the opposite of the dimension while being high performing.

Figure 2.25: Cultural dimensions of particular interest for asset management [based on Rll , p124]


2.3.2 Function of culture typologies

In general organizational culture description and assessment, in attempts to reduce the

amount of dimensions to be assessed and to speed up the assessment process, many

researchers have proposed culture typologies. A culture typology is a set of cultural

dimensions that are presented in combination to give a more complete profile of the

organization [Schein, Rs, p157]. Schein explains that a typology is an abstraction of a

great variety of different phenomena and become useful if they [Schein, Rs, p158]:

help to make sense and provide some order out of the observed phenomena;

help to define what may be the underlying structure in the phenomena by building

a theory of how things work; which in turn

enables us to some degree how other phenomena that may not yet have been

observed might look.

According to Schein the disadvantage and danger is that typologies are so abstract that

they do not reflect the reality of a given set of phenomena adequately. Schein [Rs, p159]

summarizes several problems in the use of surveys:

Not knowing what to ask;

Employees may not be motivated to be honest;

Employees may not understand the questions and interpret them differently;

What is measured may be accurate but superficial;

The sample of employees may not be representative of the key culture carriers;

The profile of dimensions does not reveal their interaction or patterning into a

total system;

The impact of taking the survey will have unknown consequences some of which

may be undesirable or destructive.

Cameron & Quinn agree with Schein on the richness and illusiveness of organizational

culture, however they claim that in order to determine the most important factors on

which to focus, it is important to use an underlying theoretical foundation that can

narrow the search for key cultural dimensions. They have developed the so called

‘Competing Values Framework’ (further CVF) that is based on empirical evidence

[Cameron&Quinn, Rcq, p29].

The Competing Values Framework was initially developed from research conducted on

the major indicators of effective organizations. According to Cameron & Quinn thirty-nine

indicators of effectiveness identified by earlier research where submitted to a statistical

analysis, and two major dimensions emerged [Rcq, p30]:

1. Internal focus and integration vs External focus and Differentiation: This

dimension differentiates effectiveness criteria that emphasize flexibility,

discretion, and dynamism from criteria such that emphasize stability, order and

control. The continuum ranges from organizational versatility and pliability on one

end to organizational steadiness and durability on the other end;

2. Stability and Control vs Flexibility and discretion: This dimension differentiates

effectiveness criteria that emphasize an internal orientation, integration and unity

from criteria that emphasize external orientation, differentiation and rivalry. The

continuum ranges from organizational cohesion and consonance on one end to

organizational separation and independence on the other end.


By linking these two dimensions, four quadrants are formed, each representing a distinct

set of organizational effectiveness indicators [Cameron&Quinn, Rcq, p31]. This comprises

the CVF. See figure 2.26. Depending on what is required to make organizations effective

in their business, cultural characteristics that relate to success appear to be different

[Rcq, p31]. In the CVF, each quadrant has been given a label to distinguish its most

notable characteristics, represented by four major culture types [Cameron&Quinn, rcq,

p33] : Clan, Adhocracy, Market and Hierarchy. Other researchers have developed and

proposed culture typologies [for an overview see: Schein, p163-174 and

Denison&Spreitzer, Rds].

Figure 2.26 The Competing Values Framework [based on Rcq , p32]

De Man is concerned about the lack of awareness of the presence of unconsciousness

behavior within organizations. He questions [De Man, Rm, p10] what culture diagnosis

instruments like the CVF actually measure. According to De Man, given the fact that

people do not really know how their organization functions, they are offered a

presentation of this behavior based on theory of the experts. The values that surface in a

culture diagnosis are not the hidden rules, but a conscious representation based on the

instrument’s underlying values [De Man, Rm, p11]. Schein explains that insiders may be

just as puzzled about their culture as an outsider, because insiders do not necessarily

know why their culture works the way it does [Rs, p179]. In other words, prefab

typologies do not address the implicit unconscious character of culture. They will not

directly answer issues like:

why a group within an organization for instance, believes that keeping computer

documents on their own ‘my documents’ is ‘better’ than sharing these documents

on a document management system;

why a group thinks that preserving their current approach to their work is ‘better’

than continually improving it.


2.4 Assessment of organizational culture

How can characteristics of organizational culture be assessed in an asset

management context?

The fourth research objective of this research is focused towards the assessment of

organizational culture. Where the former paragraph focused on ‘which characteristics’,

this paragraph addresses the assessment of these characteristics. This objective is

fulfilled using the insights gained in the former paragraph.

Reflection of the research question at this stage in the research, learns that there are

actually two phases wherein assessment takes place:

1. Assessment of characteristics for the purpose of identifying the dimensions and

assumptions that have a reasonably strong influence on the achievement of asset

management objectives. The focus on restricting and supporting cultures, not

directly related to one organization;

2. Assessment of organizational culture characteristics for the purpose of

understanding to which extend an organization, from a culture perspective, is

capable of achieving asset management objectives. The focus is on gap analysis

of the prevailing and required culture.

The first phase, from a research perspective, has an explorative nature. The second

phase builds forward on the outcomes of the first one and has an rather explanatory

nature. Judging on the insights gained in the former paragraph and based on what is

available for public on this subject (see Introduction) indicate that the focus of this

research should be on the first phase. Firstly, it is important to gain an insight into how,

in general, organizational culture can be assessed.

2.4.1 Approaches to the assessment of organizational culture

There appears to be a wide range of approaches to assess a culture. According to Schein,

the approach should be determined by the purpose of assessment [Rs, p177]. Such a

purpose could be:

Pure academic research;

Change programs;

Entering a new organization (as an employee, consultant).

Schein explains that the difference in approaches, also lies within the level of focus and

within the level of depth involved. Further ‘who needs to know the results’ is determining

[Schein, Rs, p181]. There appear to be quite different opinions about the correct starting

point of culture assessment. Cameron&Quinn and O’Donovan both assess organizational

culture for the purpose of culture change. However, Cameron &Quinn choose the present

culture as the first in a sequence of six steps [Rcq, p77]. O’Donovan, on the contrary,

argues that the approach to organizational culture should be based on ‘business needs

first’ [Ro, p118]. She emphasizes that the required culture is the preferred starting point

of assessment, not the prevailing culture. Table 2.4 shows the sequences of steps that

are followed by O’Donovan and Cameron&Quinn to asses an organization’s culture. An

important difference between these two approaches, is that Cameron&Quinn use a single

assessment instrument, based on their CVF. O’Donovan stresses the importance of,

especially for describing the prevailing culture, to use as many techniques and tools as

possible to pain an accurate as possible portrait of a culture [Ro, p120]. Schein’s and De

Man’s opinions regarding the use of typologies became clear earlier in this chapter when

the application of culture typologies to describe and assess organizational culture was

discussed.


Step O’Donovan’s approach Cameron&Quinn’s approach

1 Define the required culture Diagnosis and consensus for the

present

2 Analyze the prevailing culture Diagnoses and consensus for the

future

3 Culture gap analysis What it means (gap analysis) Table 2.4 Sequences of steps based on the culture assessment approaches of O’ Donovan and Cameron&Quinn

In order to gather valid cultural data Schein discusses a set of assessment methods and

differentiates these according to levels of subject involvement and levels of researcher

involvement. See table 2.5. Further, Schein explains that the methods on the bottom-

right cell is most appropriate for helpers for cultural deciphering if they want to assess

the deeper levels and cultural pattern. This level of analysis can be achieved if the goal is

to help the organization understand itself better and to make changes [Schein, Rs,

p183].

Levels of researcher involvement

Levels of subject

involvement

Low to medium

Quantitative

High

Qualitative

Minimal Demographics:

Measurement of ‘distal

variables’ (that what can

actually be observed

from a distance)

Ethnography: Participant

observation; content

analysis of stories, myths,

rituals, symbols, other

artifacts

Partial Experimentation,

questionnaires, ratings,

objective test, scales

Educational interventions,

projective tests;

assessment centers;

interviews

Maximal Total quality tools such

as quality control; action

research, contract

research

Clinical research; process

consultation, organizational

development

Table 2.5 Culture assessment approaches [Schein, p181]

2.4.2 The role of learning and knowledge creation

The former subparagraphs discusses different approaches to the assessment of

organizational culture. However, there is not mentioned how assumptions can be made

explicit. This is important, given the explorative nature of the research. This sub

paragraph explains the role of learning and knowledge creation in revealing basic

underlying assumptions.

Schein explains that to become aware of basic assumptions requires double loop

learning, also referred to as ´frame breaking´ [Schein, Rs, p28]. In general, there are

three orders of learning, also referred to as learning loops (also see Figure 2.27):

1. First order learning: establishing rigid strategies, policies and procedures and then

spending time on detecting and correcting deviations from the rules;

2. Second order learning: reflecting on whether the rules themselves should be

changed and helps participants to understand why a particular solution works

better than others to solve a problem or achieve a goal;

3. Third order learning: learning how to learn by reflecting on how we learn in the

first place. It might be explained as second order learning about second order

learning.


Figure 2.27: Single, double and triple loop learning [Thorsen’s WIKI]

Note that in order to address assumptions, second order learning is required. Wierdsma

[Rbo, p236] refers to these learning loops to explain that learning processes are different

depending on whether they are focused at the level of rules (surface), insights or

principles (deepest). The result of learning also appears to be different:

Level 1: Improvement;

Level 2: Renewal;

Level 3: Development.

Figure 2.28 displayed below shows the relationships between the intensity of the learning

process, the level in which learning is taking place and the results.

Figure 2.28: Single, double and triple loop learning in relation to learning domains and results [Wierdsma, Rbo, p237]

Wierdma argues that the learning processes are most implicit at the level of principles.

Access to these dialogues is reserved for insiders and barred for outsiders [Wierdsma

Rboonstra, p37]: ´Access to the dialogue about principles is reserved to those who are

familiar with the context and who determine the identity of the organization´. This

resembles how Tosi&Mero describe the ‘dominant coalition’ that holds the fundamental

beliefs about what should be done, who should do it, and the ways members are treated.

The primary interest of this coalition is to maintain the cultural identity of the firm so that

it is consistent with the values of the coalition’s members [Tosi&Mero, Rtm, p125].


Further, Wierdsma explains that networks related to these levels in organizations can be

seen as different densities [Rw, p 238]. See figure 2.29. Compared to the network of

principles, the dialogue in the network of rules is easy accessible and explicit. Principles

are relatively difficult to change because of the:

implicit nature of the communication;

limited group of people who have access to the dialogue;

density of the network of relationships and meanings.

Figure 2.29: Interwovenness of relations and meanings [adapted slightly from Wierdsma, Rbo, p238]

According to Wierdsma assessment of assumptions requires to explicate communication

and to gain access to the dialogue. The latter is an important element in organizational

learning. Trompenaars&Wooliams argue that organizational culture concerns organizing

sense making to things, actions and behaviors. Senge explains that dialogue is important

in group learning. This is the capability of members of a group to suspend assumptions

and enter into a genuine ‘thinking together’ [Senge, Rse, p10]. In dialogue there is a

‘deep listening’ to one another and suspending of one’s own views [Senge, Rse, p220].

The purpose of a dialogue is to go beyond any one individual’s understanding, to have

groups explore complex difficult issues from many points of view and to reveal the

incoherence of thought [Senge, Rse, p224]. This resembles second order learning. What

is interesting, is that the opposite of dialogue, discussion, resembles first order learning.

A discussion [Senge, Rs, p] involves presenting different views which are defended and

there is a search for the best view. The relation to first order learning is that each view is

based on acceptance of its own set of rules, rather that questioning them. This does not

provide a good basis to reveal assumption.

According to Nonaka&Takeuchi organizational learning theory focuses on the importance

of knowledge rather than on the use and creation of [Rnt, p138]. Knowledge is defined

as [Merx-Chermin&Nijhof, Rmcn, p136]: a fluid mix of framed experience, values,

contextual information and expert insight that provides a framework for evaluating and

incorporating new experiences and information. Human knowledge can exist in different

forms. It can be individual or collective. Also, knowledge can be explicit or implicit.

Explicit knowledge can be passed on to another as information. Tacit knowledge on the

contrary, is personal and contextual [Lam, Rl p6]. Nonaka, as one of the founders of the

knowledge creation concept, goes several steps further in explaining tacit knowledge by

the concept of Ba ([Nonaka&Konno,Rnk, p40]. Ba is the Japanese word for 'place', a


shared space for emerging relationships. He (Rnt,p7) explains that Ba is a

phenomenological time and space where knowledge, as ‘a stream of meaning’ emerges.

New knowledge is created out of existing knowledge through the change of meanings and

contexts. When knowledge is removed from its Ba, (explicitates), it turns into

information. Without its context it doesn’t properly represent the tacit part of the

knowledge. In order to do so, another Ba must be created. The concept of Ba unifies the

physical space, the virtual space, and the mental spaces. See figure 2.30.

Figure 2.30: The concept of Ba after Nonaka [Rtn]

Knowledge creation is a spiraling process of interaction between explicit and tacit

knowledge. They are complementary, which means both types of knowledge are

essential to knowledge creation. Explicit knowledge without tacit insight quickly loses its

meaning. Knowledge is created through interactions between tacit and explicit knowledge

and not from either tacit or explicit knowledge alone [Hartmann&Alwis Rha, p374). The

interactions between these kinds of knowledge lead to the creation of new knowledge

[Nonaka&Konno Rnk, p42). See figure 2.31. Each circle represents a Ba.

Figure 2.31: The knowledge creation process after Nonaka [Rnk]


2.5 Findings

The literature study brought answers and insights to the research question and

objectives. In the following paragraphs these are addressed for each for each research

objective individually.

2.5.1 Objective 1

To identify the features of asset management objectives

Asset management objectives are addressed explicitly in sources (AMC literature, PAS

55, ISO55000) that where available during this research. Based on the literature study

asset management objectives are found to have the following features:

The physical assets and the business value they realize. Manifestations of asset

related business value are:

o cost- effectiveness;

o performance;

o risk;

o cost;

o revenues;

Asset management process related: Life cycle processes and processes to manage

interfaces with: human assets, financial assets, information assets and intangible

assets. Al for the purpose of asset value realization.

In this research the features listed above will provide the basis for the identification of

the characteristics that influence the achievement of asset management objectives. The

main purpose is context setting regarding asset management objectives. No further

research is performed to fulfill this objective. It is however discussed in the of the

Recommendations section of this report.

2.5.2 Objective 2

To describe in which way culture influences objectives in an organizational context

Prior to describing the way in which culture influences objectives, the focus was on

understanding what culture is and how culture works. Culture can be described in terms

of its artifacts: the observable behavior, processes, structures, results etcetera, however,

these are actually products of culture, as being the explicit culture (Trompenaars&

Woolliams, Schein, O’Donovan). The multi leveled concept of culture reveals that there

also is an implicit culture. This can be thought of as a system that causes espoused

beliefs and values to become unconscious basic underlying assumptions: Nonnegotiable,

repeatedly proven ‘right ways’ to achieve objectives (Schein).

The literature study reveals that behavior, values and beliefs on organizational and group

level (culture) are related to behavior, values and beliefs on an individual level. Actions

guided on these values and beliefs lead to results that can be positive results or negative

depending on how the environment responds. If such a process repeatedly takes place,

the like hood of occurrence of the action increases or decreases, turning it into a basic

underlying assumption (Tosi&Mero, Schein). What makes group behavior, being a

product of culture, strong compared to individual behavior in the sense that assumptions

are preserved is the collective effect of the system.

No further research is performed for this objective. The insights provided by theory on

the mechanisms will be used to recognize cultural dimensions. See next objective.


2.5.3 Objective 3

To identify the characteristics of organizational culture that influence the achievement of

asset management objectives

The multi leveled concept of culture addressed in the former paragraph also reveals that

a culture´s characteristics are described in terms of dimensions and assumptions

(Schein, O’Donovan, Trompenaar&Woolliams). What is interesting in the context of this

research, is that current methods, approaches and standards to asset management

appear to focus on the two upper levels of culture explicitly. They do not address the

level of basic assumptions. Further, the literature study reveals that culture typologies

will probably fail to provide the characteristics of interest for two reasons:

1. They only address the level of assumptions implicitly;

2. They are not specifically based on measurement of asset management related

characteristics. That is, there is no reference to whether these characteristics are

tested in an asset management context.

There is not much public available literature that describes asset management culture

characteristics terms of dimensions and positions. The work of Johnson has the closest

match to the research question. Johnson does however not address why the eight

dimensions introduced, are ‘the’ asset management dimensions of interest. Further,

Johnson does not relate the relevance of the dimensions to, for instance, the four culture

types that are identified by Cameron&Quinn. Therefore the characteristics of

organizational culture that influence the achievement of asset management objectives

have yet to be identified;

cultural dimensions that have a reasonably sound relationship with asset

management objectives;

positions basic underlying assumptions along these dimensions that have a

restricting and supporting effect on these objectives.

In order to answer the general research question, additional research is necessary. This

will be performed by desk research and by organizing a focus group.

2.5.4 Objective 4

To develop an approach to assess organizational culture characteristics in an asset

management context

General organizational culture theory indicates that there is a variety of approaches to

the assessment of organizational culture (Cameron&Quinn, Schein, O’Donovan). The

purpose of the assessment is the most determining factor (Schein). Regarding this

research, the intended purpose is to assess the dimensions and assumptions that have

an influence on the achievement of asset management objectives. This can help

organizations to identify if their level of achievement of asset management objectives,

from a culture perspective, can be improved. Assessment of assumptions requires

assumptions to be questioned (Schein, Wierdsma). Performing dialogue and sharing

knowledge are key elements in this process (Senge, Nonaka). The essence of dialogue, is

that it enables for second loop learning. This level of learning implies that participants of

the dialogue are able to investigate perspectives of others. This is important in the sense

that the subjects the group is dealing with can become less ‘one’s own beliefs and values

driven’, thus becomes more more neutral: Tacit knowledge that can be explicated and

shared. Most valuable to this research is the content of this knowledge and that what can

be achieved by applying this knowledge.


3 Desk research

Since theory only partially answers the general research question, it is desirable to

explore further by combining theories trough desk research. The desk research involves

using the theory in order to deepen the understanding of cultural dimensions and their

possible relation to the achievement of asset management objectives.

3.1 Aim of the desk research

Cultural dimensions and basic underlying assumptions enable to create culture images

that focus on the implicit unconscious culture [O’Donovan, Ro, p125 and Schein, Rs,

p172]. For the purpose of this research the aim is to create profiles of cultures that

supports and restrict the achievement of asset management objectives, further labeled

‘the supporting culture’ and ‘the restricting culture’. The image of the supporting culture

created by positioning the basic underlying assumptions along their dimension on a

location that is expected to correlate positively to the achievement of asset management

objectives. Similarly, an image of the restricting culture can be created. Figure 3.1 is a

conceptual presentation of the restricting and supporting culture images based on fictive

asset management related dimensions.

Figure 3.1: Graphical presentation of supporting and restricting asset management culture profiles based on cultural dimensions and positions of basic underlying assumptions along these dimensions.


The position of the basic underlying assumptions can have a positive (blue cross) or

negative (red cross) effect on the achievement of asset management objectives.

Arguably, many cultural dimensions relate to asset management objectives to some

extent. It is desirable to focus on the ones that have a, relative to others, stronger

relationship. The aim of the desk research is to:

gain knowledge regarding the applications and functions of cultural dimensions;

investigate if and how the relationship between dimensions and asset

management objectives can be determined;

determine which dimensions and assumptions have an influence on the

achievement of asset management objectives;

prepare the focus group sessions.

3.2 Applications and functions of cultural dimensions

Before addressing a wide variety of cultural dimensions proposed by different

researchers, Schein introduces a framework that clusters these dimensions into

manageable categories

[Rs, p70]. The first two categories involve the ultimate problems that every new

organizations faces:

Dealing with its external environment in order to survive and grow, and;

managing its internal integration.

Note that these dimension resemble the first dimension of the CVF developed by

Cameron&Quinn. Where Schein states that many dimensions can form around the issues

of external adaption and internal integration, Cameron&Quinn measure just one. Schein

also provides subcategories within these categories. Table 3.1a and 3.1b depicted below

shows these subcategories [Rs2, p4].


Table 3.1: The sub categories of external adaption and internal integration [Rs2]

Dimensions within these two categories have a rather organizational scope. According to

Schein [Rs, p70] understanding an organization in terms of these dimensions is

important, but not sufficient. Organizations exist in national and occupational macro

cultures, that reflect deeper issues. Cultural paradigms form around the following

categories (see figure 3.2):

Reality and truth;

The nature of time and space;

Human nature, activity, and relationships.

Figure 3.2: External adaption and internal integration as a product of deeper dimensions [Rs, p70]


3.3 Compilation of cultural dimensions proposed by researchers

This paragraph gives an overview of culture dimensions that are proposed by researchers

that focused on general organizational culture. Its purpose is to gain an understanding

and insight regarding dimensions that possibly have a relationship with the achievement

of asset management objectives. In this research, the cultural categories proposed by

Schein will serve as a framework to classify the cultural dimensions further reviewed in

this paragraph. Appendix A constitutes the compilation of dimensions identified. The

following attributes are used:

Name of dimension;

Category of dimension (after Schein);

Subcategory of dimension (after Schein);

Description of dimension (based on source);

The lower, middle and upper linguistic values of these dimensions (based on

sources);

The source(s) that proposed or refer to the dimension;

Definitions to clarify the description of dimensions and linguistic values (by source

or oxford online dictionary);

The eight dimensions proposed by Johnson are added to Appendix A. Some of these

dimensions are related to a culture research often referred to, that of Geert Hofstede, a

Dutch management researcher. In 1980 he published the results of his study of more

than 100.000 employees of the multinational IBM in 40 countries. Hofstede was

attempting to identify value dimensions that vary across national cultures. Trough his

research he was able to profile the dominant values of a country on five dimensions

[Tosi&Mero, Rtm, p116]:

Uncertainty avoidance (High, Low);

Power distance (High, Low);

Individualism-collectivism;

Masculinity-femininity;

Long- versus short-term patterns of thought.

Figure 3.3 is a graphical presentation of the cultural dimensions identified by Hofstede.

See appendix A for further description and definitions.

Figure 3.3: The cultural dimensions identified by Hofstede [Rtn]


Hampden-Turner&Trompenaars introduced nine dimensions related to the deeper

assumptions, belonging to Scheins the category of human relationships [Schein, Rs,

p153]. These dimensions are enhanced by Trompenaars& Woolliams by addressing the

concept of conciliating values instead of competing values. [Rtw, p29]:

Universalism vs particularism;

Individualism vs communitarism;

Neutral vs affective;

Specific vs diffuse;

Aquired vs ascribed status;

Time experience: Sequential vs synchronistic;

Time horizon: Short vs long patterns of thought;

Time experience: Past, present and future;

Internal vs external direction.

Note that some of the dimensions related to time are part of the eight asset management

related dimensions proposed by Johnson. The other dimensions proposed by

Trompenaars&Woolimans strongly relate to macro cultures, but also can be related to

business and organizational cultures. Trompenaars&Wooilams discuss their application

them in an international business context. For descriptions and definitions see Appendix

A.

In identifying cultural dimensions and locations of basic underlying assumptions along

these dimensions, O’Donovan refers to earlier work of Schein [Ro, p125 and Rs, p172].

In a corporate culture change program she started with Schein’s hypothesized set of

dimensions of an innovative culture and added dimensions of her own. This results in a

compilation of twenty-three dimensions. Notable to the work of O’Donovan is that the

approach uses dimensions that are derived from or strongly relate to dimensions

proposed by other researchers on one hand, and introduces new dimensions on the other

hand. As has been mentioned earlier in this research, organizational cultures evolve

around the issues of external adaption and internal integration and deeper issues related

to reality and truth, the nature of time and space and human nature, activities and

relationships [Schein, Rs, p70]. O’Donovan was able to identify new dimensions that

where important in the culture change program she executed. She underpins the

relevance of each dimension and creates three culture images using the same set of

twenty-three dimensions by differentiating the location of basic underlying assumptions

along these dimensions:

Healthy Culture [Ro, p51 and p125];

Black and White Culture [Ro, p53 and pApp4];

Shades of Grey Culture [Ro, p55 and pApp3].

The dimensions proposed by O’Donovan are added to Appendix A.

3.4 Identification of relevant dimensions

Without clear direction, all the dimensions discussed in the former paragraph, are

potential candidates for having a relation to the achievement of asset management

objectives. It is important to explicate the strength of the relationship. The result of

research objective 1 was a set of criteria that indicate if an objective is related to asset

management:

Physical asset business value related: cost effectiveness, performance, risk, cost

and revenues;

Asset management business process related: Phases of life cycle;

Asset and asset management resources and interfaces required: human assets,

financial assets, information assets and intangible assets.


Dimensions that have a reasonably verifiable relationship with the characteristics of asset

management objectives, are of interest and need to be identified. During the desk

research a practical approach to identify relationships was developed. Basically, there are

two perspectives that can be distinguished:

the theory versus practice perspective;

the outside-in versus inside –out perspective.

The outside-in vs inside-out perspective differentiates between starting at the most

accessible level of organizational culture (artefacts) and starting at the deepest level

(basis underlying assumptions). The theoretical perspective differentiates between

starting with asset management related theory on one hand and with cultural dilemmas

experiences in an actual asset management context. ). Figure 3.5 shows four approaches

combining these two perspectives.

Figure 3.5: Identification of relevant dimensions by four approaches

Rather than holding on to one approach, all four approaches are used in cohesion to

come to the best results. After applying one of the approaches as a starting points to

evaluate a specific relationship, shifting to the other approaches enriches the

understanding of such a relationship. During desk research, validation in the sense that

practical experiences can be related to a dimension, was found to be the decisive

perspective. See figure 3.6.


Figure 3.6: Integrating the four approaches to identify relevant dimensions

This approach requires a clear understanding of two specific elements:

The multi layered character of culture, cultural dimensions and basic underlying

assumptions by description and definition;

Asset management and asset management objectives in an integrated manner,

both in theory as in practice.

By the use of asset management related theory and practice, it also is found to be

possible to identify additional dimensions that characterize basic underlying assumptions

that are relevant in an asset management context. This resembles what Schein explains

about how dimensions form around issues of external adaption and internal integration.

Also, this resembles the way O’Donovan motivates several of her dimensions that not

directly relate to dimensions identified by other researchers. Many of the dimensions

identified possibly have a relationship with the achievement of asset management

objectives. However, they also have a strong relationship with general organizational

culture and macro culture.

3.5 Identification of positions of basic underlying assumptions

The criteria for identifying a position along a cultural dimension depend on the culture

profile that is being evaluated. In any organization’s specific asset management context,

a position can depict the prevailing culture (IST), or the desired culture (SOLL) for every

individual dimension. See figure 3.1. In a more general approach, not directly committed

to one specific organization, a position can depict assumptions that have a supporting

effect on asset management and those that have a restricting effect. This resembles

O’Donovan’s approach of creating profiles for a healthy and toxic cultures.


Desk research learns that prior understanding of each dimension, is important for the

identifications of positions. It is required to relate the assumptions to asset management

objectives. The process of calibrating the dimension as described above, provides clues

on the effect of specific positions of basic assumptions on asset management objectives.

By evaluating assumptions related to the outer limits of a dimension (the extremes) it is

often found possible to pinpoint the locations of asset management restricting and

supporting basic underlying assumptions.

3.6 Results

The approach that combines the four perspectives as presented in the previous

paragraph, was used to review the dimensions that where identified based on available

literature (see Appendix A). The ´first thoughts´ reasoning for each dimension can be

found in Appendix B, which is a graphical representation of cultural dimensions and

positions of basic underlying assumptions that support and restrict the achievement of

asset management objectives. Appendix B, labeled ´Culture profiler´ is created with

report generator application ´Crystal Reports´. Appendix A serves as a database. Each

record has been given a number between -4 (outer left limit), 0 (centre) and 4 (outer

right limit). It is possible to depict multiple profiles for a single dimension and to include

and exclude dimensions.

The following sections address the highlight results of the desk research.

Quality management of and continuous improvement are important to achieve asset

management objectives perpetually. Assumptions towards continual improvement can

support the achievement of asset management objectives. Assumptions towards the

opposite, ‘preserving’ can have a restricting effect on the achievement of asset

management objectives.

Schein provides insight into sub categories of external adaption around which dimensions

form. However, actual dimensions are not described. Schein does this for all the other

categories, but for some reason, not for external adaption. During desk research the

work of Mintzberg [Rm] was reviewed to gain understanding about external adaption

issues in general. In relation to this research, there are two elements that are addressed

by Mintzberg as being opposites of a continuum. These are:

Structure: Bureaucratic versus Organic [Mintzberg, Rm, p35];

Grouping criterion: Functional versus Market [Mintzberg, Rm, p58-62];

The dimensions proposed by Trompenaars&Woolliams appear to be important in

international contexts. When the scope is set to national, as it is in this research, these

dimensions and positions are expected to be generic. However, when the scope is

international, these dimensions can affect the effectiveness of activities in an asset

management context.

Chapter 2 revealed that there is a mechanism embedded in organizational culture. No

further research was to be performed on the findings regarding the layers of culture and

behavior, motivation, employee commitment and job satisfaction. Also, learning,

knowledge creation and the ability to perform dialogue where found to be important

enablers of cultural assessment. When applying these findings in the desk research

focused towards the identification of relevant dimensions, the following dilemma’s could

arguably form around specific dimensions:

Learning ability: First order learning versus Second/Third order learning;

Motivation: Intrinsically (Theory Y) versus Extrinsically (Theory X);

Employee commitment: Compliance, Identification and Internalization;

Interaction: Dialogue versus Discussion.


Similar dimensions are proposed by O’Donovan. See Appendix A. The summary given

above can be related to any organizational culture, not specifically an asset management

context. However, they are related to the embedded mechanism of organizational

culture. They seem to be fundamental elements of a culture, related its ability to

explicate and assess itself. O’Donovan creates the profiles of a ‘healthy culture’, a ‘black

and white culture’ and a ‘shades of grey culture’ based on comparable dimensions [Ro,

p125].

The result is that there are many dimensions that possibly relate to asset management

objectives. It is hard to rate the strength of the relationship without research data. A

more important result is a set of dimensions that can be further tested in the focus group

sessions.


4 Focus Group

A parallel focus group session was organized to evaluate the results of the desk research,

and to execute a process of relating cultural dimensions to the achievement of asset

management objectives and locate the positions of basic underlying assumptions along

these dimensions that restrict or support the achievement of these objectives.

4.1 Focus group design

The inquiry held prior to the focus group and literature search pointed out that

addressing the deepest layer of organizational culture in terms of dimensions and

positions seems to be new to asset management in the Netherlands. The explanatory and

open character of the research requires an interactive dialogue to be performed. A

dialogue is an ideal setting to share and create knowledge by evaluating different views

on dilemma’s depicted by dimensions and positions and achieving a shared vision

(Senge, Nonaka). This is the essence of a focus group. Compared to the desk research,

which was executed in several months, the duration of focus group sessions was short. A

practical approach was required to meet the objectives of the focus group.

4.1.1 Selection of Focus group participants

To serve the objectives of the focus group sessions, it is important that participants have

prior knowledge about asset management (objectives) and have experience with the

implementation and execution of asset management processes in an organizational

context. For this purpose three main groups of potential participants where attended:

Asset Management Control Centre relationships: Teachers, fellow students;

NEN-ISO Dutch mirror committee;

CMS relationships dealing with the implementation of asset management.

The reason of addressing these three groups was to obtain a focus group setting with a

very broad set of experiences, practices and knowledge regarding asset management

and its objectives. This enables for a broad view on relevant dimensions and restricting

and supporting positions of basic underlying assumptions. The focus of the group was not

on identification of IST and SOLL culture profiles of their organizations, but on restricting

and supporting culture profiles in a more general sense. See Table 3.2

Name Organization Role

Alkema, Bram Enexis b.v. Participant G1

Boon, H.E. Provincie Noord-Holland Participant G2

Daan, Lex NVDO Participant G1

Michel Kuijer Copernicos Participant G1

Dennis van der Plas Heineken Participant G1

Edgar Wienen EON-BENELUX Participant G2

Wouter van Vuuren Waterschap Rivierenland Participant G2

Jonneke Klomp HHRL Participant G2

Klaas-Jan de Hart HHNK Participant G2

Luc de Laat CMS Asset Management Participant G2

Jorien Enning

Jorien Enning

Communicatie Observer

Robert van

Grunsven CMS Asset Management Facilitator G1

Marco Aberkrom CMS Asset Management Facilitator G2 Table 3.2: Participants of the focus group sessions


4.2 Focus group process

Before the focus group addressed the subject of dimensions and positions, a general

introduction based on the first two chapters was shared by the researcher. This served

three purposes:

A general introduction to the research subject;

Validation of other research objectives;

To bring focus upon the objectives of the focus group;

The in depth content, process and results of the focus group sessions, can be found in

Appendix C.

4.2.1 Introduction and validation of prior research objectives

The general introduction presented the findings of two objectives that where fulfilled in

the research prior to the focus group:

To describe the features of asset management objectives;

To describe the multi layered concept and essence of organizational culture and

mechanisms that cause the effect of organizational culture on organizational

objectives in general.

The participants of the focus groups recognized the characteristics of asset management

objectives that were presented. In this setting the reason for establishing this recog-

nition is to test if there is a shared perception of what, in general, these asset

management objectives are. This helps setting the focus in the focus group sessions.

Concerning the presentation of the multi leveled concept of culture and dimensions and

assumptions the essence and the mechanisms behind it where understood, but not yet

recognized. This was foreseen during the development of the focus group. This

understanding requires some experience with the matter. The members will gain

experience trough the actual focus group activities. However, explaining the multi leveled

concept of culture and is embedded mechanism to group members helps them to

understand that the goal is to find shared tacit assumptions [Schein, Rs, p319]. Only the

theory necessary to perform the activities and objectives of the focus group where

mentioned. The mechanism that causes espoused beliefs and values to become avoided

or to become basis underlying assumptions was explained by the use of examples. There

was mentioned what applications where in terms of the individual level, and in terms of

motivation, job satisfaction, employee commitment and organizational learning and

socialization. These subjects were not covered in depth. The reason for this is that too

much information was expected to drain energy from the participants to perform the

actual focus group sessions. For similar reasons, findings regarding the assessment of

organizational culture in an organizational context, were not integrated in the

introduction.

4.2.2 Focus Group sessions

The parallel focus group sessions with seven participants each, where performed semi

structured in the sense that participant where allowed to perform an open dialogue upon

understanding each dimension. The structure aspect was covered by setting group

(game)rules and by the dimensions selected by the facilitator. Selection of these

dimensions was performed during the focus group sessions. The selection criteria were

pragmatic: Dimensions that are expected to be easy to start and proceed with.


Each group completed 7-8 dimensions. Each dimension was addressed by the group’s

facilitator by the use of examples that were expected to be recognizable and sometimes

exaggerate the outer limits of each dimension. This accelerated the understanding of the

dimension and the cluster of competing values it represents and triggers group members

to relate them to their own experiences. By sharing these experiences in an open

dialogue it was possible to achieve a level of shared vision that enables to relate the

dimension discussed to asset management objectives. Examples and sharing of

experiences provide another important function. They:

help to calibrate the dimension by reaching consensus about assumptions

positioned on its outer limit;

provide clues about the positions of basic underlying assumptions that have a

restricting or supporting effect on the achievement of asset management

objectives.

By iterations of the process described above, each group member was able to gain an

understanding of each dimension and to locate the positions of restricting and supporting

assumptions. In some cases an exact position of the supporting assumptions was hard to

pinpoint. In this cases a zone was drawn to indicate that these assumptions can be

anywhere in the zone.

4.3 Focus group results

4.3.1 Identified dimensions and positions of basic underlying assumptions

The results of the focus groups in terms of dimensions identified and positions located

are shown over the following pages (figure 4.1 Group 1, figure 4.2 Group 2). The in

depth evaluation of each dimension can be found in Appendix C.




4.3.2 Evaluation of the focus group results and process with

participants

After the sessions both groups were asked to share their experiences and results with the

other group. Finally, the groups merged together to evaluate process and outcome of the

introduction and focus group sessions.. Afterwards, the focus group was analyzed and

evaluated. See Appendix C for the full review.

Added value of the approach

Approaching asset management as a cultural phenomenon in the sense that there is

focused on dimensions an positions is applicable and ads value. The dialogue that is

fueled by this approach appears to be different compared to dialogues focusing on asset

management artefacts and espoused beliefs and values.

The possibility to produce a reference standard based on this approach was discussed.

Such a standard would require, compared to the open setting of the focus group, more

structure and standardization. It was questioned if it is possible to capture the multi

facetted character of organizational culture in such a standard. The added value of the

instrument, in this early stage, is to organize and facilitate a dialogue.


Process improvement suggestions

The following suggestion where made to improve the process:

The scope of dimensions seems to be too broad, it is expected that some can be

filtered out to obtain a better focus;

It is important to have a clear understanding of definitions of dimensions and the

outer limits of dimensions (i.e. autocratic vs sociocratic);

The use of recognizable propositions rather than definitions (i.e. autocratic vs

sociocratic) to set out the outer limits of the dimensions can help to understand

the outer limits of dimensions;

Would it be better to directly start the process of identification or to start using

the general introduction? After discussion the participants agreed that a minimum

explanation of the multi leveled concept of culture is necessary. This was

confirmed by the following remark;

It sometimes was difficult to focus on basic underlying assumptions;

The relationship with asset management objectives is important to obtain focus;

Acceleration of the process, in terms of reducing the time to perform

dialogue on a dimension, results in quality loss and motivation of the

participants.


5 Conclusions and recommendations

In this chapter conclusions are drawn based on the results of the desk research and focus

group for each separate research objectives. Then recommendations for further research

are done.

5.1 Reflection of research objectives

5.1.1 Objective 1

Objective 1: To identify the features of asset management objectives

The findings of chapter 2 described the features of asset management objectives. These

are:

physical assets business value related. Manifestations of asset related business

value:

o cost- effectiveness;

o performance;

o risk;

o cost;

o revenues;

Asset management process related: Life cycle processes and processes to manage

interfaces with: human assets, financial assets, information assets and intangible

assets. Al for the purpose of asset value delivery.

No further research was performed. In the context of this research the findings of the

literature study served the function of creating a mindset of what asset management

objectives are, in order to relate culture characteristics to. The findings summarized

above, where tested as part of the general introduction focus group sessions. These were

recognized. What can be concluded from the focus group is that in this group there is

consensus on what, in general, features of asset management objectives are.

5.1.2 Objective 2

Objective2: To describe in which way culture influences objectives in an organizational context

The literature research reveals that there is a mechanism embedded within

organizational culture that causes espoused beliefs and values to become basic

underlying assumptions. Also, there appears to be a link between collective and

individual behavior. On an individual level, there appears to be a similar mechanism. This

is important, because ultimately actions take place on an individual level. The results of

these actions can be positive or negative. Depending on the results the like hood of

occurrence of these actions increased or decreases. Variables that are interrelated to this

mechanism are employee commitment, motivation and job satisfaction. The conclusion is

that these variables are important in recognizing the mechanism, in finding out around

which issues basic underlying assumptions evolve and which ones are stronger and

weaker.


What if an organization’s asset management objectives are not true asset management

objectives in the sense that they cannot be related to the features summarized in the

former paragraph? What if this creates a dilemma wherein assumptions are opposite in

and have an offset to the assumptions related to the asset management supporting

culture?: The objectives related to the management of assets do not foster features of

true asset management objectives. This can cause attitudes and behaviors (actions)

based on the main objectives to be reinforced negatively and become avoided. What

follows, is a decrease in motivation, lower job satisfaction and less employee

commitment This especially is the case for employees that are aware of the purpose and

main objectives of asset management. They will convince their bosses that the objectives

are wrong and the situation will change or they will lose their drive for productivity and

performance and eventually go to work somewhere else. On the contrary, if the

organization’s asset management objectives are congruent with the main asset

management objectives, actions are focused towards achievement of these objectives.

This will foster motivation, job satisfaction and organizational commitment.

Setting true asset management objectives does not guarantee that an asset manage-

ment supporting culture will rise, given how the mechanism embedded in culture works.

There is more to it than just the setting of the correct objectives. These objectives

however seem to be fundamental to the mechanism. What can be concluded here, is that

before an organization’s asset management culture can properly be assessed, it is

important to determine if the objectives set for the management of physical assets

comprise the features of asset management objectives.

5.1.3 Objective 3

Objective3: To identify the characteristics of organizational culture that influence the achievement of asset management objectives

The literature study and its findings, pointed out that further research was to be

performed on the identification of culture dimensions and positions of basic underlying

assumptions that support and restrict the achievement of asset management objectives.

Where the literature study stopped in fulfilling the third research objective, desk research

continued. The first step was to trace dimensions in literature sources available and to

register these dimensions, their scope, definitions of their outer limits and similarities

with other dimensions. The work of Johnson is notable in the sense that the dimensions

that are proposed, are directly related to an asset management context. However,

through desk research, it seems possible to apply dimensions of other researchers,

related to a more general organizational culture, to an asset management context as

well. Some of the dimensions proposed by Johnson originate to the dimensions proposed

by these researchers. Where Johnson makes the choice to limit the number of

dimensions to eight, the question is if this could lead to the exclusion of dimensions that

are relevant for a specific organization’s general organizational culture in relation to asset

management. To which extend is asset management culture general or context specific

in the sense that the dimensions that are relevant depend on the general organizational

culture: Clan, Adhocracy, Market and Hierarchy? O’Donovan chooses a total of 23

dimensions to assess an organizational culture and to draw typological profiles. Schein

explains that dimensions evolve around issues of external adaption and internal

integration and evaluates a wide variety of dimensions based on categories of issues.


Further, during desk research new dimensions where identified that are arguably related

to the achievement of asset management objectives. In both the desk research and the

focus group the relative strength of dimensions regarding their relationship with the

achievement of asset management objectives was not addressed explicitly enough. It has

not become comprehensible how to measure this strength and to actually measure this

strengt. It is expected that research trough the gathering of data is necessary to do so.

Schein explains that surveys are useful and appropriate when determining whether

particular dimensions of culture are systematically rated to some elements of

performance [Rs, p161].

The focus groups dealt with the identification of dimensions and positions of assumptions

of supporting and restricting asset management cultures. The dimensions evaluated

where part of the compilation presented in Appendix A. It was found possible to relate

dimensions to an asset management context and to depict positions of assumptions, or

at least a zone. Where Johnson states that positions of basic underlying assumptions can

be anywhere on the dimensions, the focus group indicates that it is possible, with

participants from different organizations, to indicate the positions of supporting and

restricting asset management cultures for various dimensions. Although this was

performed by the use of only one parallel focus group, this indicates that it is possible to

reach consensus regarding which dilemmas a dimension represents and which positions

of assumptions have a supporting or restricting effect on the achievement of asset


The results of each focus group shows that relating dimensions and positions of

assumptions is executed through a context specific dialogue, sharing meanings,

experiences and knowledge. Without a carefully planned and structures dialogue, the

value of depicted dimensions and assumptions is lost. What can be concluded here, is

that it is possible to validate dimensions and assumptions in a group, but that this

validation is context dependent. There is no ‘one size fits all’ asset management

supporting culture. There however is an approach available to defining and describing

such a culture. The value of this approach lies in the structured and different dialogue

that it facilitates. That is the most important conclusion to be drawn regarding this

research objective.

5.1.4 Objective 4

Objective4: To develop an approach to assess organizational culture characteristics in an asset

management context

There are many approaches to the assessment of organizational culture. The findings

reported in chapter 2 indicate that dialogue is essential in this early stadium. The

assessment of cultural characteristics that influence the achievement of asset

management objectives has an explorative nature, rather than an explanatory nature.

The focus is more on recognition, validation and calibration of dimensions and positions

than on investigating if an organization’s culture supports or restricts the achievement of

asset management objectives. This requires participants (of focus groups and

organizational groups) to share their experiences and knowledge while being aware of

how organizational culture works and of that the focus is on tacit basic underlying

assumptions. When applied in a explanatory context, it is not required that attendants of

an assessment are aware of what culture is and how it works. The purpose of the

assessments is to address tacit assumptions of participants. The conclusion is that, at

this stadium, assessment of the characteristics that influence the achievement of asset

management objectives requires the full participation of group members and a setting

that enables a structured dialogue. The structure is provided by the products of the

previous objectives. Within such a setting, members are able to share experiences and

knowledge to explore organizational culture in relation to asset management.


5.2 Reflection of the research

This research’s general research question is:

Which characteristics of organizational culture influence the achievement of asset management objectives and how can these

be assessed?

The research performed is possibly one of the first researches performed in the

Netherlands that involved describing the characters of organizational culture that

influence the assessment of asset management objectives in terms of dimensions and

assumptions. The unknown and open character of the research required an intensive

literature search. It was important to obtain an understanding of what culture is and how

it works. By the amount of applicable literature reviewed and dimensions identified, it

becomes obvious that one parallel focus group is not enough to answer all the research

questions intensively. This focus group was however able to fulfill the research partially

by testing dimensions and positions and to conclude that the approach adds value to the

improvement of asset management objectives.

This is arguably the most valuable result of in relation to the general research question of

this research:

The power is in the approach itself, not in its results: profiles of asset

management supporting and restricting cultures. The approach has to be open

source and utilize dialogue to realize its value. The ability to identify the

dimensions and positions that relate to asset management dilemma’s itself

fulfils a central role in this approach.

When reflecting to the research idea as part of the introduction of this research, there

can be concluded that the path of deduction emphasized on general organizational

culture theory, rather than on safety culture and quality culture. The reason is that the

sources examined, pointed out that culture theory related to these fields of management

is derived from general organizational culture theory. There was no objective to further

explore safety culture and quality culture to find clues that relate to other research

objectives.


5.3 Recommendations

This paragraph sums up recommendations to perform further research on organizational

culture in relation asset management. These recommendations involve the steps of

further exploring and validating the approach and its content to its application as an

assessment instrument to serve explanatory purposes.

5.3.1 From exploring to explaining

The ultimate purpose for identifying and assessing characteristics of organizational

culture that influence the achievement of asset management objectives, is to gain an

understanding of how, from a cultural perspective, an organization is performing in

achieving its asset management activities. This understanding should be transferred into

actions of improvement and organizational development. In such a setting, the approach

to the assessment of asset management culture characteristics as presented in this

report, can perform the function of a culture diagnosis instrument. The ultimate goal is

for of organizations to improve in achieving their asset management objectives by

explicitly addressing dimensions and positions. The assessment methods can be derived

from general approaches such as (a.o.) Schein’s, O’Donovan’s and Cameron&Quinn’s.

The impression so far is that assessment methods applied in general organizational

culture oriented approaches, apply to specific asset management contexts.

Before the approach reaches its explanatory state, it is required to further explore

organizational culture trough social validation and eventually research trough acquired

data. Social validation through dialogue and knowledge creation is important in the sense

that a dimension is captured with much more richness than can be achieved through

desk research alone. Exploration should therefore be based on group activities. It would

be highly desirable to work through all the objectives part of this research in social and

group settings:

What are features of asset management objectives?

In which way does organizational culture influence the achievement of objectives?

What are the characteristics of asset management objectives that influence the

achievement of asset management objectives?

How can these characteristics be assessed?

Further, by the development of actual hypotheses, test data can be acquired through

questionnaires. Validation of such hypotheses provides the foundation of an asset

management culture diagnosis instrument.

5.3.2 Set the context to one specific organization

The focus group of this research was designed to provide objective results, but has a

more general orientation in the sense that there is a broad view that involves may

organizations. The social validation process and data gathering is expected to provide

sharper results for each separate objectives when addressing single organizations. When

the context is set to one specific organization the interrelationships of the results of each

separate research objective are expected to be richer. By examining an organization’s

asset management objectives and its basic underlying assumptions that relate to the

achievement of these objectives, it is expected to be able to sharpen the approach. By

applying such an approach to several organizations, it is may be possible to make

generalizations and compare organizations to each other.


When exploration of the approach is applied to a single organization it is expected that

the process improvement suggestions of the focus group presented in the former chapter

can also be addressed to:

obtain a further understanding of what organizational culture is, how it works and

how it can help to improve the effectiveness of asset management;

filter the scope of dimensions to enhance focusing on a specific context;

obtain an understanding of dimensions and to calibrate them by the use of

examples and by relating propositions to their outer limits;

actually relate dimensions an positions to the achievement of asset management

objectives.

5.3.3 Assessment of the embedded mechanism

The results of research objective 2 reveal that employee commitment, motivation and job

satisfaction are factors that are interrelated to the mechanism that cause organizational

culture to influence objectives. In determining which basic underlying assumptions most

strongly relate to the achievement of asset management objectives, it becomes

inevitable to assess the embedded mechanism to address this strength explicitly. By

doing so, it is expected to be able to rate an assumption’s relative strength to one or

more asset management objectives. Further research is recommended on this subject.

5.3.4 From explaining to improving

In this research the emphasis was laid on assessment of cultural characteristics that

support and restrict the achievement of asset management objectives. The potential

benefits of the approach become ´true benefits´ if organizations are actually able to

improve the effectiveness of asset management by applying it. In respect to this

research, what is interesting regarding these improvements, is how the explicit culture is

to be changed (results, products, processes etcetera) by utilizing knowledge about the

implicit culture in terms of dimensions and positions. Process improvement programs

that are executed, address the explicit culture. In such cases can it be valuable to:

integrate assessment of the implicit culture as part of such improvement

programs;

make organizations aware of their implicit culture and its effect on the

achievement of asset management objectives;

execute an improvement, change program or organizational development program

that utilizes knowledge about the implicit culture in the organization´s advantage;

actually improve the achievement of asset management objectives trough a

culture oriented approach.

Where further research is to be performed on which the dimensions and positions most

strongly relate to the achievement of asset management objectives, the elements of the

above summary are relevant to address. It is recommended to actively seek for

opportunities to add to the ultimate goal of this research. The essence is in combining it

with everything that is available already.

5.3.5 Integrate safety and quality culture practices

Both safety culture and quality culture, draw their theoretical foundation from general

organizational culture. Due to the choice of focusing on this same theoretical foundation

in fulfillment of this research’s research objectives, no extensive research was performed

further, regarding good practices of safety culture and quality culture. There undoubtedly

are many available through the internet, literature and other media. It would be quite

interesting to investigate what asset management can learn from these practices to

further improve.


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Definitions

Asset: Any item of economic value owned by an individual or corporation, especially that

which could be converted to cash

Capital asset: A high-cost technical system which is capable of meeting operational

requirements

Asset []: something that has potential or actual value to an organization

Asset management [Stavenuiter, Rx, p194]: A management approach to manage all

processes (specify, design, produce, maintain and dispose) needed to achieve a capital

asset to meet the operational need in the most effective way for the customer/ user

Asset management [BSI, Rx, p2]: Systematic and coordinated activities and practices

through which an organization optimally and sustainably manages its assets and asset

systems, their associated performance, risks and expenditures over their life cycles for

the purpose of achieving its organizational strategic plan

Asset management [ISO, Rx, px]: Coordinated activities of an organization to realize

value from assets

Management control [Stavenuiter, Rx, p194]: A compilation of management activities,

including the efficient use of control instruments, to insure that the results meet the

objectives in a cost-effective manner

Lice Cycle Management [UNEP, Ru, p4]: A framework to analyze and manage the

sustainability performance of goods and services. LCM is a business management

approach that can be used by all types of business (and other organizations) in order to

improve their sustainability performance. A method that can be used equally by both

large and small firms, its purpose is to ensure more sustainable value chain

management. LCM can be used to target, organize, analyze and manage product-related

information and activities towards continuous improvement along the product life cycle

LCM [Stavenuiter, Rst, p196]: An asset management approach to manage a capital

asset, seen as a (complex) system, by functions, with the aim of achieving the required

system effectiveness for the estimated (minimum) costs throughout the asset life cycle


Assets life cycle [Rst, p 196]: The period of extending from inception of development

activities, based on an identified need or objective, trough decommissioning and disposal

of the asset/system

cost-effectiveness [Juran, Stavenuiter]: The value received for the resources expended

cost-effectiveness [Blanchard]: The ratio of system effectiveness (SE) and Life Cycle

Costs (LCC)

asset management system [BSI]: An organizations asset management policy, asset

management strategy, asset management objectives, asset management plan(s) and the

activities, processes, organizational structures necessary for their development,

implementation and continual improvement

organizational culture [Schein Rs, p18]: A pattern of shared basic assumptions that the

group learned as it solved its problems of external adaptation and internal integration,

that has worked well enough to be considered valid and, therefore, to be taught to new

members as the correct way to perceive, think, and feel in relation to those problems

Artifacts [Van Grunsven, based on Schein, Rs, p25] model and is defined as: All

phenomena that can been seen, heard and felt when encountering a new group

Espoused beliefs and values [Schein, Rs, p25]: The values and beliefs of individual group

members that have applied over and over and have proven to be valid

Basic underlying assumptions [Van Grunsven, based on Schein, Rs, px]: Unconscious,

taken for granted and beliefs and values that are shared by a group

Climate [Schein, Rs, p15]: The feeling that is conveyed within a group by the physical

layout and the way in which members of the organization interact with each other, with

customers, or with outsiders

Cultural dimension [Van Grunsven, based on Cameron & Quin, Rcq, p31 and Schein]: A

continuum containing a cluster of opposite or competing assumptions

Organizational behaviour [Robbins, Rr, p6]: A field of study that investigates the impact

that individuals, groups, and structure have on behavior within organizations, for the

purpose of applying such knowledge toward improving an organization's effectiveness

Organizational behaviour [Tosi & Mero, Rtm, p9 and Robbins, Rsr, p9 and Rz, p3]: The

systematic and scientific analysis of individuals, groups and organizations

Behavior or behavior [Wiki]: The actions and mannerisms made by organisms, systems,

or artificial entities in conjunction with their environment, which includes the other

systems or organisms around as well as the physical environment

Job satisfaction [Van Grunsven, based on Wiki]: The degree to which an individual is

content with his/her job

Object [Tosi & Mero]: Any physical or non physical referent as part of an environment

where specific values and beliefs can be held upon

attitudes [Rtm. p38]: Propensities, or tendencies, to react in a favorable or unfavorable

way towards an object or referent


Learning [(7, 32)]: Acquiring new knowledge, behaviours, skills, values, preferences or

understanding, and may involve synthesizing different types of information

learning organization [Senge, px]: Organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together

Motivation [Lathi, Rl, p1]: An energizing, mobilizing force related to striving toward goals

and satisfying needs

Intrinsic motivation [Ryan & Deci, R12, p55] is: The doing of an activity for its inherent

satisfactions rather than for some separable consequence

Extrinsic motivation is [Ryan & Deci, R12, p60]: A construct that pertains whenever an

activity is done in order to attain some separable outcome

Socialization is defined as [Van Grunsven, based on Tosi & Mero, Rtm, p44]: The

development of values and beliefs that lead to a whole range of general and specific

attitudes

Organizational socialization is defined as [VanGrunsven, based on Tosi & Mero, Rtm,

p46]: Adapting to the unique culture of an organization

Job satisfaction [Van Grunsven, based on Wiki]: The degree to which an individual is

content with his/her job

Organizational commitment [Tosi & Mero, Rtm, p48: The degree to which a person

identifies with the organization, relative to other factors that affect a person at work,

such as the work itself or other factors outside the organization that compete with it for

the person’s commitment and identification

Organizational commitment [O’Reilly, Ro, p18]: An individual’s psychological bond to the

organization, including a sense of job involvement, loyalty, and a belief in the values of

the organization

An effective organizational culture [Van Grunsven, based on Schein]: a culture wherein

the basic underlying assumptions, espoused beliefs and values and artifacts are

effectively supporting and influencing the other factors that lead to organizational

effectiveness

Effective asset management [Van Grunsven, based on Stavenuiter, PAS 55 and

ISO55000]: Management of physical assets that succeeds in maximizing business value

trough improving and optimizing the cost-effectiveness of these assets

Appendix A: Compilation of culture content dimensions

Dimension

Sub

category Category Description Lower Middle Upper Source

Definition (by

source or Oxford

online) if found

necessary

Relation to asset


and positions relating to

basic underlying

assumptions that support

and restrict the

achievement of asset


In

clu

de?

Organizational

focus I ---

Organization

al Focus

Cameron&Quinn: This dimension differentiates

effectiveness criteria that emphasize

flexibility, discretion, and dynamism from

criteria such that emphasize stability, order

and control. The continuum ranges from

organizational versatility and pliability on one

end to organizational steadiness and durability

on the other end.

Internal and

integration ---

External and

differentiation

Cameron&Quin

n, Rcq, p30

This dimension proposed by

Cameron&Quinn represents an

entire category of dimensions

in Schein's framework. It is

too high level for asset

management and is more

related to general

organizational culture.

Organizational

focus II ---

Organization

al Focus

Cameron&Quinn: This dimension differentiates

effectiveness criteria that emphasize an

internal orientation, integration and unity from

criteria that emphasize external orientation,

differentiation and rivalry. The continuum

ranges from organizational cohesion and

consonance on one end to organizational

separation and independence on the other

end.

Stability and

Control ---

Flexibility and

Discretion

Cameron&Quin

n, Rcq, p31

This dimension proposed by

Cameron&Quinn represents an

entire category of dimensions

in Schein's framework. It is

too high level for asset

management and is more

related to general

organizational culture.

Core purpose

Assump-

tions about

Mission

and

Strategy

1 External

Adaption

O'Donovan: In general terms, the core

purpose of any organization is to meet public

demand for goods and services in a socially

responsible manner.

Increase

shareholder

value ---

Responsible

provision of

goods &

services

O'Donovan,

Ro, p126, p141

This dimension does not seem

to be very relevant for an

asset management context. It

is focussed more towards

general organizational culture.

Foundation of

AM Policy and

AM strategy

Assump-

tions about

Mission

and

Strategy

1 External

Adaption

RvG: Organization´s that are applying asset

management can be driven by the urge of

departments to apply asset management and

to improve life cycle processes from inside

out. On the other hand this drive can be

fuelled by the business demands regarding

assets and the related strategic objectives.

Strategic

Objectives:

Top-down ---

AM

principles:

Inside-out

RvG, see PAS

55

The foundation for the AM

Policy and AM Strategy can be

directed by core asset

management principles on

one side, to strategic

objectives on the other side. It

seems to be that asset

management should be

directed by both perspectives. Yes

Scope and

Examination of

Assets

Assump-

tions about

Mission

and

Strategy

1 External

Adaption

RvG: Assets can be approached as isolated

objects in the sense that they are technical

equipment or point related infrastructure.

Isolated

Objects ---

Systems and

Networks

RvG, see Rpas

and Rst

However, what asset

management requires is an

integrated approach wherein

an asset is part of a system or

network that fulfils an

operational need. However,

the isolated object itself

should not be forgotten in the

sense that it has a specific

function and may need specific

objectives that should be

achieved by utilization and

maintenance. Yes


Regulation and

Compliance

Assump-

tions about

goals

derived

from the

mission

1 External

Adaption

RvG: Regulation and compliance are

important elements in an asset management

system. An organization should emphasize in

its asset management policy how it

approaches legal and other requirements and

how it complies. Also see PAS 55 §4.4.8 and

4.6.

An

Obligation ---

True

Commitment RvG Yes

Formulation and

Setting of

Objectives

Assump-

tions about

goals

derived

from the

mission

1 External

Adaption

Schein: To achieve consensus on goals , the

group needs a common language and shared

assumptions about the basic logistical

operations by which it can move from

something as abstract or general as a sense of

mission to the concrete goals of designing,

manufacturing and selling an actual product or

service within specified and agreed-upon cost

and time constraints. Qualitative --- Quantitative

RvG, based on

sub category of

Schein

AM strives at quantification of

objectives, however, this is

not always possible.

Performance targets such as

Availability is quantifiable.

Value in its broadest sense can

sometimes be more semi-

quantifiable. Yes

Standardization

and

Structurization

Assump-

tions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

Mintzberg: A structure is bureaucratic to the

extend that its behaviour is predetermined, or

predict, in effect standardized. A structure is

organic by the absence of standardization in

the organization. Bureaucratic --- Organic

Mintzberg, Rm,

p35

The nature of asset

management is in a sense,

focussed towards structuring.

An organic structure seems to

be to fluid for asset

management. Perhaps a

position in between (the

professional bureaucracy

according to Mintaberg) suits

asset management best. Yes

Grouping

Criterion

Assump-

tions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

Mintzberg: The grouping criterion an

organization chooses to lay out its structure,

can be functional or market. The functional

approach is based on Processes, Knowledge

and skills where the market approach is based

on customer markets. Functional Matrix Market

Mintzberg, Rm,

p58-62

The nature of asset

management, and particularly

the operational life cycle

activities imply a more

functional orientation.

However, there can be in- and

external customers and

stakeholders that require a

market oriented grouping

criterion. Yes

Purpose of the

AM System

Assump-

tions about

Mission

and

Strategy

1 External

Adaption

RvG: In general, a management system can

be seen by a group as inherent to the

improvement of business processes. It also

can be seen as 'another system again', . The

group chooses to rely on their own approach

to business improvement, which can be

preserving or continually improving.

Waste of

Paper ---

Integrated

Element of

Business

Improvement RvG

An asset management system

is not the only determinant of

effective asset management.

However, it is an imporant

one. Yes

Activities

Assump-

tions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

Schein: Some of the most important and most

visible elements of an organizational culture

are the shared basic assumptions about how

things should be done, how the mission is to

be achieved and goals are to be met in terms

of structure, systems and processes.

Task

oriented ---

Process

Oriented

Schein, Rs,

p80 Yes


Approach to

Risk

Assump-

tions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

RvG: In general asset management context it

is arguable that employees action are

performed while aware of the risks related to

the particular action. This can take the form

of implicit and individual decisions on one end

to explicit and collective actions that are

transparent and traceable,

Implicit and

Individual ---

Explicit and

Collective

RvG, see Rpas,

Riso and RLl

Risk is defined as:

The effect of

uncertainty on

objectives

(ISO31000 and ISO

Guide 73. This

dimension

differentiates the

approach to risk

management as

being implicit and

individual or explicit

and collective

Risk and risk management are

fundamental to asset

management. Employees

performing actions in asset

management processes should

be aware of the organization's

risk appetite and should be

able to relate their risks to

company values. Transparency

and traceability are important

in effective asset

management. However, this

would not been overdone in

the sense that every action's

risk must bee evaluated

explicitly. Yes

Approach to

Quality

Assump-

tions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

RvG: A groups approach to quality can be

preserving versus continually improving. The

results of actions in the past determines

whether a group beliefs preserving is the right

way of doing things or beliefs that continuous

improvement leads to success. Preserving ---

Continually

Improving RvG

In analogy with the attitude

that it takes to improve

quality, the 'quality' attitude of

asset management should be

focussed towards continuous

improvement. Yes

How Asset

Projects Emerge

Assumpt-

ions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

How asset projects emerge depends on

whether it is changing business that requires a

new operational need on one hand or the

fulfilment of technical and maintenance driven

improvements on the other hand .

Push from

AM ---

Pull from

Business RvG Yes

How assets are

delivered

Assump-

tions about

means to

achieve

goals:

Structure,

Systems

and

Processes

1 External

Adaption

Modified and new assets can be pushed

towards delivery by the project leader or can

be pulled by the asset manager.

Push from

Project

Leader --- Pull from AM RvG

What asset management

implies is that it is a common

goal that requires both parties

to be accomplished effectively. Yes

Performance

indicators for

measuring

results and

correction

mechanisms

Assump-

tions about

measuring

results and

correction

mechanism

s: What to

measure

1 External

Adaption

Schein: All groups and organizations need to

know how they are doing against their goals

and periodically need to check to determine

whether they are performing in line with their

mission. Once the group is performing, it must

have consensus on how to judge its own

performance to know what kind of remedial

action to take when things do not go as

expected.

RvG: To address these issues, the choice is

made to differentiate between the use of

leading and lagging performance indicators. It

is not known if this actually captures

competing values.

Lagging: To

explain ---

Leading: To

predict

RvG: based on

PAS 55

Lagging indicators

are indicators that

usually change after

the economy as a

whole does.

Typically the lag is a

few quarters of a

year. Reflects

historical

performance!

Leading indicators

are indicators that

usually change

before the economy

It is not directly possible to

identify positions that support

and restrict the achievement

of asset management

objectives. This depends on

the primary process the assets

fulfil their functions in and on

how long asset management is

being applied. Yes


as a whole changes.

Focus: Prediction!

(Wiki)

PAS 55

Contingency,

Remedial and

Repair

Strategies

Assump-

tions about

remedial

and repair

strategies

1 External

Adaption

Schein: This area concerns what do if a

change in course is required and how to make

that change. If information surfaces that the

group is not on target (i.e. sales are of,

market share is down, product introductions

are late, key customers complain about

product quality, key staff people or managers

leave), by what process is the problem

diagnosed and remedied?

RvG: The choice is made to differentiate

between proactive and reactive actions. See

o.a. PAS 55 §4.3.4 for contingency planning

and §4.6 for preventive and corrective

actions. Reactive ---

Proactive

Unless…

RvGm inspired

by Schein, Rs,

p88

An organization´s attitude

towards contingency

situations, remedial and repair

strategies should, in an asset

management context, be

pro/active. There where

actions are reactive, this is a

choice that has been made

prior to the occurrence of such

situations. Yes

The nature of

company values ---

2 Internal

Integration

Company principles and values should reflect

the authentic character of the organization, be

endorsed by the whole workforce and

represent a true commitment.

A

meaningless

statement

A public

relations ploy

A true

commitment

O'Donovan,

Ro, p126, p138

This dimension does not seem

to be very relevant for an

asset management context. It

is focussed more towards

general organizational culture.

Organization-

internal

stakeholder

relationship ---

2 Internal

Integration

Customers, investors, supplier, unions, and

the general public are to be respected. Each

group of stakeholders is critical to the success

of the organization. Any organization that

does not respect its relationships with external

stakeholders will give poor terms of trade to

suppliers, poorly manage the business for

investors, provide goods and services to

customers in a way that in not socially

responsible and be uncooperative with unions.

To be

manipulated ---

To be

respected

O'Donovan,

Ro, p126, p142

and Adapted

by RvG

Stakeholders and stakeholder

management fulfil an

important role in asset

management (see a.o. PAS

55). Basic assumptions should

me more related towards

respecting stakeholders than

to manipulate them. Yes

Language and

jargon Language

2 Internal

Integration

The language that is to be spoken in an asset

management context, can vary from a

business perspective, addressing added value

and cost-effectiveness to technically oriented,

relating to the operational life cycle activities.

Business

oriented ---

Operational

life cycle

activities

oriented:

Engineering,

Maintenance,

Production RvG Yes


Dispersion of

Power in

Decision Making

Distributing

Power,

Authority

and Status

2 Internal

Integration

Mintzberg: When all the power for decision

making rests at a single point in the

organization, ultimately in the hand of one

person, the structure is centralized. When

power is dispersed among many people, the

structure is decentralized

Centralized:

One Single

Point ---

Decentralized

: Multiple

Points

Mintzberg, Rm,

p95

Physical location:

concentrated vs

dispersed, p99

Mintzberg

Asset management is a

specific field of management

concerning the management

of physical assets. The asset

management roles typically

are asset-owner, asset

manager an service provider.

The idea is to relate levels of

decisions to these roles.

Ultimately, the asset owner

has most power. From there is

depends if he is the CEO, or is

for instance the COO,

attending a board with

functions as CIO, CFO and zo

on. This dimension seems hard

to rate. Yes

Control of

Decision Making

Processes

Distributing

Power,

Authority

and Status

2 Internal

Integration

The dispersal of formal down the chain of line

authority will be called vertical

decentralization. Horizontal decentralization

refers to the extend to which nonmanagers

control decision processes.

Horizontal:

Non

Managers ---

Vertical:

Managers

Mintzberg, Rm,

p99

In asset management there is

a formal line of decision

making. The roles of asset

managers do not necessarily

have to be fulfilled by the

managers of departments and

groups. Such roles (the same

goes for a project leader)

require autonomity to some

extend. Also and LCM team is

expected to make decisions

concerning the management

of assets. Yes

Nature of Work

Relationships

Rules for

relation-

ships

2 Internal

Integration Distant --- Intimate Schein, pxxxx

This dimensions seems to be

related to the dimensions of

Trompenaars&Woolliams

concerning human

relationships. They will

become of more relevance in

international organizations.


Communication

Rules for

relation-

ships

2 Internal

Integration

An open communication system best serves

the interests of the individual, the group and

the organization. Closed --- Open

O'Donovan,

Ro, p127, p146

and Schein,

Rs, p105

The communication of AM

policy, strategy, objectives

and plans to in- an external

stakeholders is critical in PAS

55. In AMC communication

also fulfils an important role.

Open communication makes

sure that everyone receives

the same information. Yes

Information

Rules for

relation-

ships

2 Internal

Integration

The attitude towards information concerning

the extend to which it is to be shared depends

on how initiatives to share information have

lead to benefits in the past. If asset

management is the fifth event that requires

information to be shared, and al the previous

attempts failed, it will be hard to convince

employees to not keep their information on

separate storage media (Where the master is:

My Documents, Hard disks, USB-sticks and so

on). Separating --- Sharing

Also see

Johnson, RLl

Asset management requires

good quality ans timely

information to be effective. To

acquire this information,

effective information systems

are very important. Even more

important is the contribution

of all employees involved in

the asset management

processes to store and share

their information. Yes

Operational

Asset

Ownership: An

Asset is…

Rules for

relation-

ships

2 Internal

Integration

An asset can be seen as the groups

responsibility comparable to how operators in

Total Productive Maintenance threat their

installations. On the other hand, an asset can

be seen as one of many. With not so much

specific care for the value realization of the

particular asset. A Number ---

Our

Responsibility RvG

This dimension seems to

depend on the number of

assets that is managed.

However, every asset is

assumed to deserve some kind

of specific care. Yes

Mistakes

Punish-

ment and

Rewards

2 Internal

Integration

Mistakes can be thought of as results of

someone incompetence and should therefore

be punished. Otherwise, mistakes can be seen

as an opportunity to learn.

Deserve

Punishment ---

Serve to

Learn

Achieving a good practice level

of asset management and

improving towards best

practice require an

organization to learn.

Organizational learning is key

to asset management (see

AMC and see ISO55000).

Mistakes serve as an

opportunity yo learn. Yes

Bad news and

whistle- blowing

Punish-

ment and

Rewards

2 Internal

Integration

Bad news represents a learning opportunity,

and bearers of bad news bring gifts by

highlighting weakness in the system and in

the culture before these become public

knowledge. A threat ---

A learning

opportunity

O'Donovan,

Ro, p127, p143

This dimension is related

to/similar as the previous

dimension. Therefore it is not

incorporated.


Preferred Level

of Reality ---

3 Reality

and Truth

A fundamental part of every culture is a set of

assumptions about what is real and how to

determine or discover what is real. Such

assumptions tell members of a group how to

determine what is relevant information, how

to interpret information, and how to decide

when they have enough of it to decide

whether or not to act, and what actions to

take.

Individual

reality Social reality

External

physical

reality

Schein, Rs,

p117

Individual reality:

refers to what an

individual has

learned form his/her

own experiences and

has a quality of

absolute truth to

him/her

Social reality: refers

to those things that

members of a group

regard as matter of

consensus, that are

not empirically

testable

External physical

reality: refers to

those things that

can be determined

empirically by

objective or

scientific tests

Asset management relies on

the best information available.

Preferably this information is

acquired through the use of

proven models and methods.

However, there should be

room to alter and incorporate

approaches based on social

validation: 'That what just

happens to work for us'. Yes

High- Context

and Low-

Context

or

Mutual causal

and

unidirectional ---

3 Reality

and Truth

In the low-context, unidirectional culture,

events have clear universal meanings. In the

high-context, mutual causality culture, events

can only be understood in context, meanings

can vary, categories can change, and causality

cannot be unambiguously established

Low-

context --- High- context

Schein, Rs,

p119

This dimensions seems to be

more related to national and

international culture and is

related to organization's from

this perspective. In a Dutch

asset management context,

this dimension is expected to

have a small influence on the


management objectives. Yes

Moralism and

Pragmatism ---

3 Reality

and Truth Moralism --- Pragmatism

Schein, Rs,

p121

Moralism: Seeking

validation in one's

own experience

Pragmatism:

Seeking validation in

a general

philosophy, moral

system, or tradition Asset management

Pragmatic and

theoretical ---

3 Reality

and Truth

RvG: This dimension differentiates between a

theoretical approach to the management of

processes an approach that can ba validated

by theory on one hand, and an approach that

is validated trough practical application. Theoretical --- Pragmatical

RvG, based on

Schein

Pragmatic: dealing

with things sensibly

and realistically in a

way that is based on

practical rather than

theoretical

considerations

Theoretical:

concerned with or

involving the theory

of a subject or area

of study rather than

its practical Yes


application

Attitude

Towards

Information and

Results ---

3 Reality

and Truth

RvG: A group can have an accepting attitude

towards results and information in general.

The opposite is a group that questions results

and information and seeks prove for

themselves. Accept --- question

RvG, also see

RLl

In a decent asset management

process or system parties are

expected to have to a certain

extend predetermined formats

of objectives and results. Also,

methods for information

gathering are supposed to be

known. In general when

results and information

surface, there should not be

that much questioning, unless

some mistake appears to be

made. Yes

The nature of

maintenance ---

3 Reality

and Truth

RvG: Maintenance is a vital service provided

to asset management. Maintenance can take

the form of keeping the assets in perfect

technical shape, regardless of the functional

state that is required. Maintenance has

become a purpose on itself. The ultimate

installation and system effectiveness is

pursued. On the other end of the spectrum

maintenance is seen as a measure that serves

to achieve the initial performance, risk and

cost. Other measures are modifications, new

assets, non asset management solutions. Life

cycle cost-effectiveness is perused. A Purpose --- A Measure RvG

In asset management,

maintenance is seen as an

integrated part of all life cycle

activities. See, ILS/LSA

covered in Rst and Rb for

instance. Maintenance is not a

purpose upon itself, it is a

measure to achieve cost-

effectiveness. Yes

The nature of

information ---

3 Reality

and Truth

RvG: Information is important for the

achievement of asset management objectives.

Information is an asset. In information

management (ref Amsterdams Informatie

Model, R. Maes, Vrije Universiteit van

Amsterdam), information is seen as the

interface between data and knowledge. How

information was seen in the past, determine

which assumptions regarding information

seem right to a group. Data Information

Explicit

Knowledge RvG

Looking at information as data

that is gathered and

distributed by technical

systems rather than

addressing information as an

asset that also should be

managed as part of the asset

management processes, is not

likely to support the


management objectives. Yes


Basic Time

Orientation ---

4 The

Nature of

Time and

Space

Schein: Cultural assumptions about time

influence the role that planning will play in the

management process.

RvG: While the past seems to be less

applicable to asset management, the

differentiation between assumptions towards

focus on the present and focus on the future,

seems to have an influence on the

achievement of asset management objectives. Past Present Future

Schein, Rs,

p126 and

Trompenaars&

Woolliams, p80

The length of asset life cycles

can vary considerably, making

this dimension hard to

calibrate for many

organizations. However, in

general an focus upon the

present is not what asset

management is about. Yes

Time Horizon ---

4 The

Nature of

Time and

Space

Schein: Reflects a culture's view of the future.

The short-term orientation reflects values

towards the present, perhaps even the past,

and a concern for fulfilling social obligations.

Long-term thought patterns reflect an

orientation towards the future, beliefs in thrift

and savings, and persistence. In countries

with a long-term orientation planning has a

longer time horizon.

Short

Patterns of

Thought ---

Long Patterns

of Thought

Tosi en Nero,

Rtn, p118,

(rereference to

Hofstede) and

Trompenaars &

Woolliams,

Rtw, p76

In relation to the previous

dimension here also the

variation in length of asset life

cycles influence the positions

too much to generalize

positions of supporting

assumptions and restricting

assumptions. However, asset

management implies making

an integrated trade-off

between the short term and

the long term. Yes

Time Approach ---

4 The

Nature of

Time and

Space

Relatie met taak eerst of relatie eerst.

Taak/relatie meer nadruk op poly.

Trompenaars: Time experience: Sequential vs

synchronistic Monogronic --- Polychronic

Schein, Rs,

p127and

Trompenaars &

Woolliams, p

83

Polychronic time:

oriented towards

time as a sort of

medium defined

more by what is

accomplished than

by a clock and within

which several things

can be done

simultaneously

(multi tasking?)

Monochronic time:

Time is viewed as a

valuable commodity

that can be spend,

wasted, killed, or

made good use of

(single tasking?)

This is a dimension whereon

nations score differently.

When applied to an asset

management, it seems to be

that these assumptions are

determined by the specific

context (project, board

meeting, planning of

maintenance etcetera) . Both

outer limits are expected to

restrict the achievement of

asset management objectives. Yes


Time Cycle

Focus ---

4 The

Nature of

Time and

Space

Planning time focuses on time in a

monchronic, linear way, with targets and

milestones are tied to external objective

realities such as market opportunities and the

stock market. Development time, on the

contrary, refers to physical or biological

processes that have their own internal time

cycles. Planning --- Development

Schein, Rs,

129

This dimension seems to relate

to asset management in the

sense that development of

assets, but also performance

of specific maintenance

activities depend on their

development time or 'technical

accomplishment time'

(Maintainability). It seems to

be that asset management

seeks a balance between these

different time cycles, with a

slight preference to planning

time. Asset management

doesn't involve biological

processes that represent true

development time. Yes

Asset end of Life ---

4 The

Nature of

Time and

Space

RvG: The asset life cycle, or asset life, is a

time line that fulfils a central role within asset

management. The end of life moment of an

asset can be seen as predetermined and non

influencable on one hand to determinable and

influencable through continual life cycle

activities.

Predetermin

ed --- Determinable RvG

The asset end of life moment

is a design aspect and a

inherent property of an asset.

However, innovations and new

technologies that emerge

while an asset is fulfilling its

function, can result into cost-

effectively extending the life

cycle. There are limits to this

process, but the end of life

moment of an asset is not in

concrete. Yes

The nature of

employee

motivation ---

5 Human

Nature,

Activity and

Relationship

s Focus on managers!

Theory X:

Externally

Directed ---

Theory Y:

Internally

Directed

Schein, Rs,

p145

This seems to be a rather

organizational culture focussed

dimension. However,

motivation is directly related

to the strength of the positions

of other assumptions. This

makes assessment of this

dimension fundamental to

assessment of asset

management related

organizational culture. Yes


The individuals

locus of control ---

5 Human

Nature,

Activity and

Relationship

s Theory X and Theory Y

Externally

directed ---

Internally

directed

O'Donovan,

Ro, p125, p128

This dimension is similar to

the previous dimension.

Orientation of

Human Activity ---

5 Human

Nature,

Activity and

Relationship

s

Schein: Closely connected to assumptions

about human nature are shared assumptions

about the appropriate way for humans to acti

in relation to their environment. Several

basically different orientations have been

identified in cross-cultural studies. Doing

Being-in-

becoming Being

Schein, Rs,

p146 and

Trompenaars

89

Doing: correlates

closely with the

assumption can be

controlled and

manipulated, a

pragmatic

orientation toward

the nature of reality,

a belief in human

perfectibility

Being: correlates

closely with the

assumption that

nature is powerful

and humanity iss

subservient to it

Being-in-becoming:

refers to the idea

that the individual

must achieve

harmony with nature

by fully developing

his or her own

capacities and,

thereby, achieve a

perfect union with

the environment.

The focus is on

development rather

than a static

condition.

These dimensions according to

Schein appear to have an

influence in the activities of

the generic engineering and

operator cultures. Asset

management serves to

achieve business objectives.

These seem to be leading.

However, asset management

also is proactive in further

improving. Being-in-becoming

seems to suit asset

management best. Yes

The power of

mankind ---

5 Human

Nature,

Activity and

Relationship

s

Mankind is subject to universal laws which

govern moral, biological and ecological

matters. We cannot break these laws, we can

only break ourselves against them.

A law onto

himself ---

Subject to

universal

laws

O'Donovan,

Ro, p125, p129



The natural

environment ---

5 Human

Nature,

Activity and

Relationship

s

The ecological environment is not an

externality; rather it is the centre of

existence, and the resources in our

environment make the economy possible.

An

externality ---

The centre of

existence

O'Donovan,

Ro, p126, p137




Individualism

and collectivism ---

5 Human

Nature,

Activity and

Relationship

s

Refers ro whether the individual or collective

action is the preferred way of dealing with

issues.

In a collectivistic society, one is expected to

interact with members from its group. It is

almost impossible to perceive a person as an

individual rather that one whose identity

comes from groups with which the individual

is associated.

Individualis

m --- Collectivism

Tosi&Nero,

Rtn, p117

Schein, Rs,

p150

Rereferring

Hofstede

One way to test this

dimension is to ask

if group and

individual interests

differ, which will be

sacrificed and which

will be protected

(Schein)

Asset management requires

the cooperation participation

of individuals and groups

across the life cycle on all

levels of the organization. See

PAS 55 §4.4.3, and also AMC

on team management. Group

results are achieved trough

collective actions. Yes

How best results

are achieved ---

5 Human

Nature,

Activity and

Relationship

s

The maximum benefit to a group can be

realised if each individual works for his own

benefits and the group. Self-interest

Self-interest

and group

interest Altruism

O'Donovan,

Ro, p127, p146



Individualism

versus

communitarianis

m ---

5 Human

Nature,

Activity and

Relationship

s

Individualist

ic Communitaric

Trompenaars&

Woolliams,

Rtw, p48



Power distance ---

5 Human

Nature,

Activity and

Relationship

s

Power distance is the degree to which

differences in power and status are accepted

in a culture. Some nations accept high

differences in power and authority between

members of different social class or

occupational levels. Low --- High

Tosi en Nero,

Rtn, p117,

rereference to

Hofstede

This dimension is identified by

Hofstede differentiates

strongly for different nations.

However, are not expected to

have a strong influence on the


management objectives in the

Netherlands. Disperse of

power in decision making and

control op decision making

processes (Mintzberg) appear

to have a stronger relation to

an organizational and asset

management context.

Universalism vs

particularism ---

5 Human

Nature,

Activity and

Relationship

s

Schein: Do the participants in the relationship

view each other an a very general or

universalistic way based on stereotypes , as in

most professional relationships, or do they

perceive each other in a very particularistic

way as whole persons as in a spousal

relationship or friendship?

Vasthouden

aan

allemande

normen,

waarden en

regels ---

Normen,

waarden en

regels

afhankelijk

van de

situatie en

relatie

Trompenaars&

Woolliams,

Rtw, px

and Schein,

Rs, p153

This dimensions is related to

the dimensions of


concerning human





Neutral vs

affective ---

5 Human

Nature,

Activity and

Relationship

s

Schein: is the relationship very aloof and

professional like in a doctor - patient

relationship, or very emotionally charged, as

in friendship? ---

Trompenaars&

Woolliams,

Rtw, px

and Schein,

Rs, p153


the dimensions of


concerning human




Specific vs

diffuse ---

Human

nature,

activity and

relationships

Schein: Is the relationship very specific,

dealing only with the exact reason for the

relationship, as in a sales-customer

relationship, or diffuse, as in most

friendships? ---

Trompenaars&

Woolliams,

Rtw, px

and Schein,

Rs, p153


the dimensions of


concerning human




The nature of an

individuals value ---

5 Human

Nature,

Activity and

Relationship

s

Each individual has intrinsic value by virtue of

the fact that they are unique, human and

precious and their value to the business that

goes far beyond their immediate usefulness to

the job (or agenda) on hand. Controversially,

when an organization considers individuals

valuable only in terms of their usefulness to

the job at hand, and when they are treated

with derision and considerable disposable, this

has dire consequences for the integrity of the

entire corporate community.

Useful to job

on hand ---

Intrinsic to

being human

O'Donovan,

Ro, p125, p128

This dimension is proposed by

O'Donovan and seems to have

a rather organizational culture

focus.

Workforce-

organization

relationship ---

5 Human

Nature,

Activity and

Relationship

s

In this new world, people want to be regarded

as belonging to something, not just used by it,

as members not employees, citizens not

human resources. Asset --- Citizen

O'Donovan,

Ro, p126, p141




focus.

Acquired vs.

ascribed status ---

5 Human

Nature,

Activity and

Relationship

s

Schein: Are social rewards, such as status and

rank, assigned on the basis of what person is

by birth or family membership, or on the basis

of what a person has actually accomplished

through his or her effort. Acquired --- Ascribed

Trompenaars&

Woolliams,

Rtw, px

and Schein,

Rs, p153


the dimensions of


concerning human





Uncertainty

avoidance ---

5 Human

Nature,

Activity and

Relationship

s

Societies high in uncertainty avoidance tend

to prefer rules and to operate in predicted

situations as opposed to situations where the

appropriate behaviours are not specified in

advance. Those with high uncertainty

avoidance prefer stable jobs, a secure life,

avoidance of conflict, and have lower

tolerance for deviant persons and ideas. Low --- High

Tosi en Nero,

Rtn, p116,

rereference to

Hofstede

This dimensions is identified

by Hofstede differentiates






Netherlands. This dimension at

first sight seems to be related

to risk management. However

it is not. Also see 'Approach to

Risk´ as part of External

Adaption.

Masculinity-

femininity ---

5 Human

Nature,

Activity and

Relationship

s

This dimension of a culture refers to the

degree to which values associated with

stereotypes of masculinity (such as

aggressiveness and dominance) and

femininity (such as compassion, empathy, and

emotional openness) are emphasized. Masculine --- Feminite

Tosi en Nero,

Rtn, p117,

rereference to

Hofstede








Netherlands.

The complexity

of human

intelligence ---

5 Human

Nature,

Activity and

Relationship

s

Human intelligence is multi-facetted and our

success individually, and collectively, is

utilised when we are utilising our basic types

intelligence: Sprital (SQ), intellectual (IQ),

emotional (EQ) and Physical (PQ)

One-

dimensional --- Multi-facetted

O'Donovan,

Ro, p125, p130








Netherlands.

The nature of

corporate

culture --- ---

Culture is a living system and has different

types of intelligence which parallel those held

by an individual. Each culture has its own

spiritual core. Corparotate culture is multi-

facetted Dull --- Intelligent

O'Donovan,

Ro, p125, p134




focus.

The essence of

diversity --- ---

Diversity in beliefs and perceptions stimulates

new ways of behaving and is the source of

nourishment for creativity and innovation.

Principles and values they will support

diversity include ´respect for the individual´

and ´open communication´.

Differences

in

appearance ---

Differences in

thinking

O'Donovan,

Ro, p126, p136




focus.


The

organization's

central

paradigm --- ---

Principle- centred organizations enjoy a

greater idea of security, guidance, wisdom

and power (Covey) Other

Principle-

centred in

word only

Principle-

centred in

word and

spirit

O'Donovan,

Ro, p126, p137




focus.

Public image --- ---

A company image which is authentic reflects

the real character of the organization. This

allows the general public to make an informed

and sound decision as to whether or not they

will work for it, invest in it, buy from it or

trade with it.

Manufacture

d --- Authentic

O'Donovan,

Ro, p126, p139




focus.

The nature of

the organization --- ---

Organizations are made up of two types of

building blocks- the inert and the human. The

inert include structures, policies, technology,

capital and tools, while the human include

needs, beliefs, emotions and motives,

attitudes and behaviours

Inert

structures --- An entity

O'Donovan,

Ro, p126, p140




focus.

Organisation-

business

environment

relationship --- ---

The more attuned the organization is to the

business environment, the more capable it will

be to meet public demand for goods and

services, and the more able it will be to spot

opportunities and threats on the horizon. Estranged --- Attuned

O'Donovan,

Ro, p127, p143




focus.

Decision-

making --- ---

Decision-making which is navigated by a

moral perspective is the hallmark of a culture

of ethics. When ethical principles are woven

into the fabric of a community's way of being,

they align with the moral compass within each

individual staff member. Immoral --- Amoral

O'Donovan,

Ro, p127, p144

Immoral: not

conforming to

accepted standards

of morality

Amoral: lacking a

moral sense;

unconcerned with

the rightness or

wrongness of

something




focus.

Ownership for

learning and

development --- ---

To nurture the ongoing process of

inventiveness, learning and development

should be decentralized with the

organizational community equipped for, and

committed to, continuous learning and

development. Centralized --- Localized

O'Donovan,

Ro, p127, p144




focus.

Speed of

response to

customer

demands --- ---

The organization's speed of responsiveness to

customer requirements reflects is ability to

keep pace with the external environment and

meet the competition head-on. Low --- High

O'Donovan,

Ro, p127, p147




focus.

The service

provider --- ---

Whatever the industry, every staff member is

a service provider and a member of the

service chain.

Front-line

workers --- All staff

O'Donovan,

Ro, p127, p148




focus.


Emotional

expression --- ---

During times of change, staff must be given

the support and tools to manage any strong

emotions so that they can choose constructive

behaviour. All emotions are valid and should

be acknowledged.

Unaccep-

table ---

To be

encouraged

O'Donovan,

Ro, p127, p148




focus.

Appendix B: Thoughts on cultural dimensions in relation to asset management objectives


Appendix C: Focus group organization, process and results

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