Principles for Asset Management System Implementation: Activation and Conclusion

This AMP Newsletter concludes a miniseries titled Principles for Asset Management System (AMS) Implementation that began July 9th of this year.  The introduction of this miniseries starts with the statement:

“Principles are like stars in a constellation, they guide you.  Principles communicate basic beliefs that generate commitment and direction.  Organizations without principles will have a difficult time fulfilling purpose.  Organizations with principles are ready to take on the challenges ahead of them.”

This miniseries was written for Asset Management Change Agents to unlock management system thinking in the pursuit of continual improvement through AMS implementation.  These principles equip Asset Management Change Agents with insight and powers to guide purpose-driven change in their organization.  Use of principles is advantageous because they:

• Generate Unity of Purpose:  Clarifies direction and definition of value generation,
• Generate Unity of Effort:  Clarifies purpose and commitment behind priorities and actions,
• Promote a Strong Asset Management Culture: Unifies reasoning behind purpose and effort.

Links to each principle and their operationalization through organizing groups (Foundational, Formative, Operative, and Forever) is contained at the end of this article.

The principles covered advance updates to ISO 55000 and ISO 55001.  Significant updates include:

• Realization that Asset Management is a continual improvement journey,
• Asset Management is a discipline that is part of the organization’s constellation of management capabilities,
• Asset Management is implemented through a “management system for asset management”, otherwise known as an Asset Management System (AMS)
• Activation of an AMS is through an enterprise framework for Asset Management decision making, otherwise known as the Asset Management (AM) Framework
• The purpose of the AM Framework is to “define and determine the value that the organization aims to derive from its assets by applying the asset management system” [ISO 55001-2024]

The source for the principles covered by this miniseries was the US National Academies of Science, Engineering, and Medicine (NASEM) report Strategies to Renew Federal Facilities.  The purpose of these principles is to guide implementation of an AMS.  Activation of an AMS is through an enterprise AM Framework that conforms with ISO 55000 and ISO 55001.  This is the focus of this AMP Newsletter and the accompanying AMF Journal.  The operative AM Framework covered in them is shown below:

This framework defines an integrated, comprehensive decision-making method for how performance, risk, opportunities, cost, change, and communications are managed in a complex organization for a portfolio of assets.  This framework has been adapted to streamline adoption of an ISO 55000/1 conforming AMS.  Specific details on how to do this are covered in the AMF Journal – Asset Management Framework Miniseries.

In this way, the following Principles for AMS Implementation are designed as a constellation of stars to help Asset Management Change Agents formulate plans, strategies, objectives, initiatives, and activities for positive change and continual improvement.  Like a constellation of stars, they provide greater meaning when combined as opposed to applying them individually.  And as with all continual improvement Asset Management journeys, the direction you are heading is more important to the journey then where you are on the path.  These AMS Implementation Principles help in both accounts and can be used for a wide range of applications, organizations, and needs.  Find out more in the rest of the miniseries found at:

Introduction

Foundational Principles:

• Data Integrity
• Whole Life-Cycle Cost Analysis
• Portfolio Management
• Accounting Transparency

Operative Principles:

• Mission Alignment
• Facility Performance
• Decision-Making Alignment and Accountability
• Operational Readiness

Formative Principles:

• Performance-Budget Integration
• Balance Sheet Analysis

Forever Principle:

• Facility Asset Management Maturity

Written by: Jack Dempsey | November 12, 2024

AMP Newsletter #098

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