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Research and Insights:

Key Resources and reading for European Wind O&M

Where Wind and PV Cross Over - Thinking beyond storage... to professional asset management

Where Wind and PV Cross Over - Thinking beyond storage... to professional asset management

Smarter Asset Management and Investment Strategies, How to Maximize Returns and Maintain Growth

Featuring; Accenture, Polenergia, Lloyds Register, NextEnergy Capital and BlackRock Renewables

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Navigating the technology landscape: how best to optimise your project

Navigating the technology landscape: how best to optimise your project

Understand the questions’ buyers ask themselves when making decisions about proposed solutions for optimisation, including how to decide which technologies are ripe for investment. 

Featuring: Greenbyte, Ventient, Senvion, Leosphere, BVG Associates

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How to Achieve a Successful Asset Transition Process

How to Achieve a Successful Asset Transition Process

The 5 key steps and lessons to effective asset transition

Featuring Roger Wilcox, author of ‘Asset Transitions Demystified: Your Five Phase How-to Guide’


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How to Achieve a Successful Asset Transition Process

Ineffective asset transitioning strategy is a common cause of delays for asset changeovers between companies. Yet, it is a process which is frequently not given sufficient consideration and is not well understood across energy sectors. The resulting elongated transition periods are costing businesses money. In a recent interview with Roger Wilcox, author of ‘Asset Transitions Demystified’, New Energy Update have extracted the key insights that will guide your strategy for effective asset transition.

Drawing from 25 years of leading teams at BP, Roger has identified the key lessons that make transitions a success.  We spoke to Roger to extract the main learning points from the book that we can apply to asset transitions in all energy sectors. The basis of our discussion tracks important considerations to be made across the following five-stage framework:

  • Pre-announcement preparation phase
  • Initiation and ramp-up phase
  • Delivery phase
  • Drive to completion phase
  • Close out phase

Issues that can derail your transition process

On average asset transition should take around 9 months, but delays can extend this period to 12 months or more. Therefore, time setbacks represent the costliest expense for the transition processes. This means that the time intensive tasks have the most potential to damage success. The installation of IT hardware and systems are jobs that tend to overrun the targeted timeframe. While contract finalisation, transfer of operatorship and the safety case submissions are areas that can be delayed through bureaucracy. These areas require significant consideration when planning and monitoring asset transitions.

How to prepare for the transition process

It is common that preparation for asset transition does not begin until after the SPA (Sales and Purchase agreement) is finalised. Roger was keen to stress the significant benefits of integrating transition planning into the SPA process at an earlier stage. This would mean the construction of transition teams, data collection and early risk assessment before the deal is finalised. Most importantly, this allows a more rapid acceleration of the project once the agreement is signed, but also “minimises institutional shock” that can be experienced in the early periods of changeovers.

How to strengthen connections between silos and monitor performance

Roger recommends a sequence of four workshops that allow companies to develop more efficient communication across different silos and monitor project progression. With many issues that arise during transition spanning multiple workstreams, this is crucial in resolving problems between different silos. The workshops are carried out at critical points throughout the process, conducted during:

  • The kick-off stage - distribution of roles and responsibilities
  • The plan review stage - ensuring unity around how the project will move forward
  • The mid-transition stage - assessing project progression and preparing for potential risks
  • The operational readiness stage - final corrections before assets go live

How to build the best transition team

A high level of importance is put upon the personnel who make up transition teams. However, while they often consist of very skilled individuals, they can lack the required asset transition experience or be weighed down with other responsibilities. In this way, management may need to consider transition training or simply the assignment of different types of people to the transition team.

With regards to the management of the transition team, Roger recommends a strong hierarchical structure, consisting of three major roles with well-defined responsibilities:

1. Workstream leaders

  • Control areas of transition within their workstream
  • Manage the day-to-day handover of assets from buyer to seller

2. Transition Manager

  • Draft transition plan and budget and monitor progress accordingly
  • Appoint and manage workstream leaders and their workstreams
  • Act as a bridge between the ‘steering group’ and the workstreams

3. Members of the ‘Steering group’ (normally executives)

  • ‘Steering group’ made up of senior people on both the buyer and seller sides
  • Appoint transition managers
  • Authority to oversee the transition and make important decisions

Develop smarter working methods through external consultants

Regardless of a company’s experience with transitioning assets, consultancy can play a vital role in the overall direction of proceedings. In relation to this, Wilcox indicated the usefulness of having the input of a company “with specialist experience in transitioning assets”. Consultants provide impartial oversight across the entire process by participating in critical workshops, ensuring progression in line with the transition plan. They also have crucial input when the ‘steering group’ is ready to make the Go-No-Go decision, by providing feedback on workstream completion and overall site assessment.

Key message to action

More effective asset transitions are delivered when manageable steps are taken that ensure a more structured approach to the process. When you can create a better prepared team, which operates with enough oversight to anticipate problems, the outcome is a significant reduction in the delays.  This will ultimately save you both money and time.

For significantly more in-depth learning on this subject, we highly recommend ‘Asset Transitions Demystified’ which is available on Amazon at: http://bit.ly/Asset_Transitions_Demystified_1



Got a question? Get in touch below!

Dominic Grocott

Dominic Grocott

Project Director | European Wind O&M 2019
Strategy & Business Leader | New Energy Update
+44 (0) 207 375 7510 (Global)
+1 866 996 1235 - Ext. 7510 (Canada)
Email: dominic@newenergyupdate.com

Grace Cooper

Grace Cooper

Commercial Manager
New Energy Update
+44 (0) 207 375 7504 (Global)
+1 866 996 1235 - Ext. 7504 (Canada)
Email: grace@newenergyupdate.com

2019 Sponsors & Exhibitors

Silver Sponsors

  • ATTEN2
  • GE Renewables
  • Gram & Juhl
  • Green-Eagle-Solutions

Condition Monitoring Partner

  • Qualitrol

Bronze Sponsors

  • Bazefield
  • res

Silver Predictive Maintenance Sponsor

  • B&K Vibro

Sponsors

  • bachmann
  • Deutsche-windtechnik
  • engro
  • fos4x
  • ONYX
  • samawatt
  • SKF

Exhibitors

  • AMSC
  • ATTEN2
  • bioseco
  • Gastops
  • Gram & Juhl
  • Green-Eagle-Solutions
  • Harris
  • naturalpower
  • ping
  • res
  • Wikov

Social Enterprise Partner

  • Solar-for-Schools

Media Partners

  • Spares in motion