In today’s dynamic industrial landscape, asset-intensive industries face the critical challenge of balancing financial prudence with operational efficiency. This year’s theme, Synergize – Building Asset Value Through Unified Vision of Finance and Plant Management, brings attention to the importance of integrating financial strategy with asset performance management to maximize long-term value.
The Case for Synergy
A well-aligned business strategy bridges the often-perceived gap between finance and plant operations. Leaders from various industries share insights on how this synergy is crucial for sustainability, investment planning, and strategic execution.
Bridging Financial Strategy and Operational Needs
In an online interview with Erudite Reliability Services OPC, Sol Kunanan – Business Advisor and Chief of Staff at Prime Energy Resources Development B.V., highlights that energy security, affordability, and sustainability are at the core of their operations. For organizations like Prime Energy, having policies and regulatory frameworks in place is fundamental to attracting investors and aligning asset strategy with business objectives. More importantly, fostering a culture of trust and collaboration between finance and operations ensures that investment decisions are both strategic and pragmatic. Sol emphasizes that leaders must understand financial statements, ensuring that both finance and operations can make informed trade-offs.
Asset Investment Planning: A Strategic Imperative
Rolando “Dondi” J. Paulino III, Chief Operating Officer at Light Rail Manila Corporation (LRMC), explains that Asset Investment Planning (AIP) is a crucial component of their long-term sustainability. AIP involves a structured five-year plan for asset refurbishment and growth forecasting. The challenge, however, lies in the alignment of technical-driven plans with financial feasibility. Dondi stresses the need for financial enablement in asset planning, stating, “We cannot spend what we cannot earn.” The collaboration between maintenance and finance is key to ensuring asset longevity while maintaining financial stability.
A Lifecycle Approach to Asset Management
Shireen Prince, AP Chief Asset Management Officer at Aboitiz Power Corporation, reinforces the importance of lifecycle management in asset investment planning. By evaluating assets beyond immediate financial constraints, organizations can develop robust investment strategies that consider current conditions, external factors, and operational risks. She warns against underinvestment, noting that short-term cost-cutting can lead to long-term inefficiencies. Aligning teams to a standardized framework and ensuring seamless execution remain critical challenges for many organizations, highlighting the need for a shared vision across departments.
Financial Clarity and Strategic Capitalization
Tom Goodwin, Director of Engineering at Manila International Container Terminal (ICTSI), provides insights into the evolving financial frameworks supporting asset investment. He shares that their organization has undergone a shift in capitalization policies, promoting financial clarity across terminals. The finance team has played an active role in developing tools that help technical teams present asset justifications in financial terms, ensuring a common understanding of business impact and investment trade-offs.
Leadership as the Catalyst for Synergy
A recurring theme across industries is the indispensable role of leadership in driving strategic asset investment planning. From energy and transportation to infrastructure and utilities, leaders must cultivate a culture that embraces collaboration, clear communication, and long-term strategic thinking.
As Goodwin asserts, “Modern leadership is all about explaining why we need to make the change, how it’s going to benefit the business, and how it will ultimately benefit the people within the organization.” When leadership fosters alignment between finance and plant operations, businesses not only optimize asset value but also ensure resilience and sustainability in an ever-changing economic landscape.
In conclusion, the synergy between finance and plant management is not merely an operational necessity—it is a competitive advantage. Organizations that embrace this unified vision are better positioned to optimize asset performance, secure financial stability, and drive sustainable growth. As industries continue to evolve, fostering collaboration, leveraging strategic investment frameworks, and championing leadership in asset management will be the keys to long-term success.
Upcoming events:
March 18, 2025 | APM LEAD 2025 – Synergize: Executive Summit | Seda BGC, Taguig, Philippines
July 28-30, 2025 | APM LEAD 2025 – Synergize: Conference and Exhibition | SPACE at One Ayala, Makati, Philippines