Strategic asset management: Helping electric utilities translate vision into value; Final report
Strategic Asset Management begins with a fundamental premise -- that all asset management decisions made by utilities should contribute to stakeholder value -- and applies this premise in decision processes at every level of the organization. The resulting alignment of decisions with value measures translated from the corporate vision ensures that every asset management decision consistently supports the strategic objective to deliver value. This report depicts the process of Strategic Asset Management using an extended metaphor. The assessment of the current business situation is presented as Facing New Realities. The activities required to develop a value model showing which stakeholders are involved and what value measures indicate success are portrayed as choosing the destination for a voyage From Vision to Value. Envisioning the future, identifying uncertainties, developing alternatives, and creating candidate strategies are tasks that comprise Charting the Course. Using decision analysis to link strategic alternatives to corporate value, evaluate the risk and return of each alternative, and compare alternatives within a portfolio to find out which ones are best becomes Deploying the Fleet. Finally, the myriad activities required to gain commitment and implement the most robust strategy are depicted as Making the Voyage.
- Research Organization:
- Electric Power Research Inst., Palo Alto, CA (United States); Strategic Decisions Group, Menlo Park, CA (United States)
- Sponsoring Organization:
- Electric Power Research Inst., Palo Alto, CA (United States)
- OSTI ID:
- 142524
- Report Number(s):
- EPRI-TR--102730
- Country of Publication:
- United States
- Language:
- English
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