Strategic or Operational – Where is Your Management Focus?

By Rob Wilson – Director IPWEA FLEET

How would you categorise your approach to fleet management; operational or strategic? Chances are you have to shift between both. One day focusing on a critical technical issue that has arisen and the next thinking about organisational change and long-term capital budgets.

So, what is the difference between strategic and operational thinking? Strategic management is characterised by a high-level perspective, medium to long term thinking, high value decisions and so on. In fact, by definition, strategic management is about assessing the future business environment and positioning your business to be relevant and thrive in that future world. Strategic management focuses on the “what”.

In a fleet context it is important to plan strategically to ensure your fleet operation is aligned to the broader organisation’s objectives. A key asset management tenet is that assets only exist to serve an organisational imperative. This applies directly to the fleet.

The fleet practitioner needs to assess where the organisation is heading. What are the new initiatives, projects, challenges and obligations facing the organisation and what needs to happen within the fleet to support this. This could translate to disposal of assets that are no longer required, changed specifications, additional vehicles, different financing models, reallocation of assets etc. In considering and acting on these matters the fleet enables the organisation to meet its objectives and remains relevant.

By contrast operational management is more about the here-and-now. Implementing process, resolving problems and getting things done – the “how”. Operational management should be supported by solid process to provide consistency in application and quality outcomes.

Both strategic and operational management is important and so is the balance. If you can’t get your head out of the here-and-now you won’t be prepared for the future. If you only gaze into the future your operation will not perform today. The right mix of strategic and operational management depends on your context. Your approach needs to be situational and will depend on the size and complexity of the fleet, the availability of support staff and organisational requirements.

At times you have no choice but to deal with the day to day – think Covid19. But it is essential to make time for strategic thinking and planning. Schedule planning time with your team. Get out of the office and participate in webinars and events to gain that broader perspective. Consider what lies ahead and prepare for contingencies.

IPWEA’s Plant and Vehicle Management Manual (PVMM) edition 4 has introduced 2 new chapters to help fleet practitioners address strategic and operational planning. These chapters cover, among other topics, Fleet Asset Management Plans (FAMPs), business planning, staffing and contract management.