The Human Resources Analogy That Makes It Click
I often hear the terms Asset Management and Asset Performance Management (APM) used interchangeably, and sometimes incorrectly. Yes, APM is a subset of Asset Management, but it’s also the more obscure one, often misunderstood or overlooked.
One analogy I’ve found incredibly helpful in clearing this up:
👉 Think Human Resources vs. Employee Performance Management.
Just like HR is responsible for the full employee lifecycle: hiring, training, org structure, policy. Asset Management handles the overall lifecycle of physical assets: design, procurement, maintenance, and retirement.
And APM? That’s the Employee Performance Management part of the equation.
Let’s take it further:
🔹 Recruiting = Design
🔹 Org Charts = Asset Hierarchy
🔹 Employee IDs = Equipment Numbers
… and the list goes on, yep we are all just assets! 🙂
But here’s the kicker, and why this analogy is so effective:
Most companies do both HRPM and APM equally poorly.
We all know the routine: annual goal-setting, performance reviews that feel like check-the-box exercises, raises that don’t reflect performance, and a reluctance to address underperformance.
Sound familiar? The same happens with assets.
APM is about clearly defining what an asset is supposed to do (setting goals), and then regularly assessing how well it’s doing it (performance reviews).
⚙️ Is it meeting expectations?
⚠️ How often has it failed?
📉 Is it running defect-free and efficiently?
Of course, the differences are there. I don’t (yet) have a wireless sensor tracking my workplace performance but the point remains:
🎯 Are we acting on the data?
Are we retiring underperforming assets? ‘Coaching’ others for improvement? Looking often and acting early? Learning from top performers and using that insight to make better “recruiting” (design/specification) decisions?
Or are we just handing out the same maintenance plans and hoping for the best; the asset equivalent of HR handing out the Christmas bonus turkey?
When done right, Asset Performance Management is regular, meaningful, and data-driven, just like a truly effective employee performance program.
Thoughts? Have you seen this analogy play out in your organization?
