Home        About        Contact
1

Asset Management Policy
A policy is the "intentions and direction of an organization as formally expressed by its top management" (ISO 55000).

A statement to guide future decision making.


One of the 39 subject areas of Asset Management.



Purpose of the Policy
This asset management policy expresses the commitment and intentions of the organization’s staff to plan, design, construct, acquire, operate, maintain, renew, replace and dispose of the organization’s assets in a way that ensures sound stewardship of public resources while delivering valued customer services.

  • •    … articulates senior management’s commitment and intentions with regard to Asset Management.
  • •    … provides guidance to staff in carrying out the organization’s business strategies, plans and activities.
  • •    … provides a clear direction for Asset Management and defines the key principles that underpin Asset Management.



Scope of the Policy
This Policy applies to all physical assets of the city, such as roads, sidewalks, bridges, transitway, railways, watermains, sewers, stormwater ponds, pumping stations, reservoirs, treatment plants, landfills, fleet, IT systems, buildings, parks, housing, art and trees.




Principles in the Asset Management Policy
Included below are some examples of Asset Management Policy


Customer Focused / Service Focused (stakeholders)
The organization shall/will…
  • •    … clearly define and provide agreed Levels of Service that meet our customers’ needs and adhere to good, cost-effective asset management processes and systems, that are supported by continually updated asset and customer data.
  • •    … have clearly defined Levels of Customer Service focused on customer outcomes or front-line service delivery.
  • •    … consider all the assets in a service context, taking into account their inter-relationship, as opposed to optimizing individual assets in isolation.

Holistic/ Whole Life Cycle Perspective
The organization shall/will…
  • •    … take a comprehensive approach to investment planning and decision making that looks at the “big picture” and considers the combined impact of the entire asset life cycle.
  • •    … take a ‘big picture’ approach to asset management that considers the combined impact of managing all aspects of the asset lifecycle, including the full costs of acquiring, operating, maintaining, renewing and retiring our assets.

Risk-based
The organization shall/will…
  • •    … manage the risks associated with attaining agreed levels of service by focusing resources, expenditures, and priorities based upon risk assessments and the corresponding cost/benefit recognizing that public safety is the priority.
  • •    … direct our resources, expenditures, and priorities in a way that achieves the agreed levels of service & benefits at an acceptable level of risk.

Triple bottom line (TBL) /Sustainable
The organization shall/will…
  • •    … assess investment decisions using TBL sustainability criteria with respect to: economic, environmental and social outcomes.
  • •    … incorporate social, legislative, environmental and financial considerations into our decisions to adequately address our present and future customer service commitments, environmental stewardship and regulatory requirements.

Value-Based / Affordable
The organization shall/will…
  • •    … develop business case solutions that aim to minimize the life cycle cost of asset ownership, while satisfying agreed upon levels of service. Decisions are based on balancing service, risk, and whole-life cost.

Systematic / System Focused
The organization shall/will…
  • •    … adopt a formal, consistent, and repeatable approach to the management of its assets that will ensure services are provided in the most effective manner.
  • •    … evaluate assets in terms of their role and value within the context of the greater system, as opposed to optimizing individual assets in isolation.

Innovative
The organization shall/will…
  • •    … continually improve its asset management approach by driving innovation in the development of tools, practices, and solutions.
  • •    … make continual improvement a key part of our asset management approach, with a focus on driving innovation in the development of tools, techniques and solutions.

Strategic
The organization shall/will…
  • •    … make appropriate provisions and decisions to better enable its assets to meet future challenges, including changing demographics and populations, customer expectations, legislative requirements and technological and environmental factors.

Robust, Repeatable & Defendable Decision-Making
The organization shall/will…
  • •    … adopt a formal but flexible, consistent, and repeatable approach to cost effectively manage our infrastructure assets, to enable services to be provided in the most cost effective manner possible.

Optimal
The organization shall/will…
  • •    … make informed decisions between competing factors such as service delivery, asset quality & value, cost and risk by determining which option will deliver the best value (to our stakeholders).

Regulatory Compliance/Regulatory Driven
The organization shall/will…
  • •    … consistently deliver established customer service levels at an acceptable level of risk while minimizing an asset’s lifecycle costs.
  • •    … comply with all relevant health and safety, legislative, regulatory and statutory requirements.

Documentation and Knowledge Sharing
The organization shall/will…
  • •    … share information and knowledge both internally and externally throughout the asset life cycle.

Clarity of Roles
The organization shall/will…
  • •    … define roles and responsibilities, and assign the authority necessary for effective delivery of services.

Resources & Commitment
The organization shall/will…
  • •    … maintain, within reason, the necessary organizational capacity (including, but not limited to, resourcing, financial support, staff competencies, business processes, data and integrated information systems) to support the asset management Framework.
  • •    … will provide sufficient training and resources to enable this policy to be achieved


  • Every department within the organization shall prepare an Asset Management Plan (AMP) the assets classes under its management and control
  • The AMPs shall follow the "n" format of State of Infrastructure, Level of Service, etc.
  • The AMPs shall be revied periodically and updated to reflect changing circumstances
  • All decisions about assets shall be based on TBL and whole life principles




Process of Developing the Policy
Included below are the key steps in development of a policy document:
  • Conduct a PESTLE Analysis (political context, economic context, social context, technological context, legal context, environmental context)
  • Conduct a SWOT Analysis
  • Conduct a Stakeholder Needs Assessment
  • Conduct a Risk Assessment
  • Write the draft policy(ies)
  • Correlate the policies to the goals and objectives
  • Revew the draft policy(ies)
  • Approval of the policy(ies)
  • Communication of the policy(ies) to internal and external stakeholders
  • Periodic review and continual improvement of the policy(ies) to reflect changing circumstances
•    Review the mission, vision and values of the organization
•    Review the organizational policy
•    Conduct a PESTLE analysis
•    Conduct a Workshop of knowledge resources from the organization
•    Articulate the AM policy principles
•    Draft the AM policy
•    Submit the draft policy to stakeholders for review
•    Finalize the AM policy
•    Communicate the AM policy
•    Test the AM policy
•    Review and refine the AM policy


As we dig deeper into ISO55001 we find the rich fabric of concepts woven into each chapter.
Fig. As we dig deeper into ISO 55001 we find the rich fabric of concepts woven into the seven chapters. This is where the nuances and complexities of asset management start to reveal themselves.


Stakeholder requirements converted into value
Fig. Stakeholder requirements converted into value.



Alignment is required between all levels of the organization - such as, from top management to line staff
Fig. Alignment is required between all levels of the organization - such as, from top management to line staff


The hierarchy of organizational purpose with policy represented as one of the layers
Fig. The hierarchy of organizational purpose with policy represented as one of the layers.


The journey to asset management maturity may sometimes feel like a maze
Fig. The journey to asset management maturity (including the development of appropriate policy) may sometimes feel like a maze.


1
Fig. The journey to asset management maturity (Including the development of appropriate policy) may sometimes feel like a knot that needs to be untied.


Workshops help to elicit qualitative data within the organization
Fig. Workshops are a useful method to gather the organization's knowledge resources to help develop policy.


Making inevitable trade-offs and finding consensus with different stakeholder groups
Fig. Making inevitable trade-offs and finding consensus with different stakeholder groups.


See Also:
Compare with:
  • Maintenance Policy
  • Outsourcing Policy



(c) Copyright Asset Insights, 2000-2013, All Rights Reserved - "Insight, foresight and oversight of assets"