Asset Management is About More than Managing Assets
There is no shortage of information, opinion or guidance on how to build a high-performance organization, yet high-performance organizations remain the exception rather than the rule, and even rarer is the organization that routinely succeeds in all areas. Why is this true? Although the characteristics of high-performance organizations are based on common sense principles, it’s difficult for organizations to consistently live those principles on a day-to-day basis. Furthermore, high-performance organizations tend to grow with their successes, and growth brings changes to activities and relationships that may not always be consistent with those principles. Sustaining a high-performance organization requires consistent leadership and attention to how these characteristics are exhibited in every facet of the organization, including asset management.
Why This Paper
Most people, who manage physical assets or who manage organizations that rely on physical assets, have experienced significant disruptions caused by the failure to effectively manage or maintain assets. These asset-related problems may be financial in nature, such as a growing backlog of deferred maintenance, or they may be problems affecting reliability or service level. Major disasters, such as a train derailment, bridge collapse or pipeline rupture tend to capture the headlines, but even minor asset failures can have a big impact on an organization’s ability to serve its stakeholders and meet its objectives.
The initial reaction when these disasters or inconveniences occur is to wonder whether there might have been some way to prevent the failure from happening. Thankfully, there is a solution already in practice that can prevent most asset-related failures: It’s called asset management. This paper is an introduction to the internationally recognized standard for best practices in asset management.
Who Should Download and Read the Paper
This paper is primarily intended for people who work in private and public-sector organizations that rely on physical assets to accomplish their missions. ISO 55000 stipulates that top management must provide leadership if asset management is to be successful, so it follows that the ideal target audience for this paper is a C-level executive, government agency director or other senior decision maker with overall responsibility for organizational performance. In practice, however, asset management execution will rest with department managers and business unit directors who control or oversee some part of the organization’s assets. Additionally, budget directors, capital planners, risk managers, controllers and other performance managers will benefit from understanding the management system approach described here.
We also believe that this paper has value for people whose organizations value assets such as financial instruments, human resources, brand reputation and intellectual property. The principles of ISO 55000 and management system approach to asset management apply equally well to these non-physical asset types. Others who will benefit from this paper include regulators of utilities, bond holders and other lenders, business investors, and government grant-making agencies that play the role of investors.
Featured White Paper Sections
- The Evolution of ISO 55000: A Management System Standard
- The Rise of a New International Standard: ISO 55000
- Compare and Contrast: PAS 55-1 and ISO 55000
- Another View: The IAM Conceptual Model
- IAM Conceptual Model in Depth
- Who’s Using ISO 55000
- Benefits of Using ISO 55000
- Asset Management by the Numbers: Infographic
- Conclusions and Next Steps
o Human Factors
o Manage Risk and Monitor Performance
o Asset Information & Data DNA
o Strategic Asset Management Planning
o High Performance Organizations Base Informed Decisions on Trusted Standards
o Lifecycle Operations
- Appendix A: The Origins of Asset Management
- Appendix B: A summary of the TC251 list of ISO 55000 certified organizations worldwide
- Appendix C: Standards and Guidelines from the Global Asset Management Community