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Governance Framework

  • To provide an organizational design to ensure successful implementation of all phases of the AM program
  • To provide an organziation design that integratesa nd aligns
  • To provide clear roles and responsibilities to staff to engalbe changes need
  • ensure consistency in AM practices at a corporate elve but also provide service area flexibility for implementation and management at hte tactical and operational levels


  • Staff -
  • Department - a division of a large organization dealing with a specific area of activity (eg. Finance, HR, maintenance, etc.)
  • Network -
  • Asset Management Network (AMN) -
  • Asset Management Office – a concept in a centralized org model
  • Leadership Team
  • Internal Experts vs. External experts
  • Organization Chart – a reflection of the current or desired org model
  • Organizational Model – a reflection of the centralized and decentralized groups
  • Centralized vs. decentralized services

Structure of the Organization

Process of Organizational Design

  • •    Review corporate objectives and policies
  • •    PESTLE and SWOT
  • •    Review staff loadings
  • •    Review existing organizational design model
  • •    Review matrix of functions (risk mgmt, budgets, etc) across departments (finance, HR, maint, etc.)
  • •    Conduct SWOT on existing design
  • •    Develop new org model
  • •    Consult on the model
  • •    Workshops on the model
  • •    Implement the model
  • •    Codify the model into policies

Step 1: Identify Stakeholders

  • Stakeholder groups
  • Stakeholder register
  • Stakeholder map

Step 2: Select a Governance Models

Asset management requires a joint effort across different departments in asset intensive organization:
  • Management Team Model - committees and activies are organized along functional lines
  • Advisory Board Model - this model emphasizes the helping and supportive role of the board to the CEO. Board members are recruited for thre reasons - trusted as advisors, they have a prof skill that hte org needs, they can be helfpul in establishing credibility
  • Policy Board Model - The role of the board is to establish the guding principles and policies for the org; to delegate responsibility
  • Cooperative Model - Decision making is by consensu and no individual has power over another
  • Patron Model - The patron board has less influence than the advisory board model. board serves as a figurehead for fund raising pruposes
Reasons for changing governance model
  • A crisis of confidence
  • A major turnover in staff
  • The org is entering a new phase in its lifecycle
  • The organization is experiencing problems that can be traced back to inadequacies in structure and process
  • Staff are dissatisfied with their roles

Step 3: Clarify Roles and Responsibilities

for departments and individuals

  • Internal experts
  • External experts
  • RACI Matrix

Step 4: Establish Information Flow

  • between deparments
  • between

Establish Departmental Scopes

Incluced below is an example of departmental scopes in a municipal setting:
  • Corporate Admin - Provides corporate leadership and services that create the communication link between Township Council, municipal divisions, staff, and the public. This division develops and maintains technology, supports Mayor and Council, prepares Council and committee agendas and minutes, facilitates corporate communications, manages municipal land and properties
  • Community Development - focused on creating sustainable neighbourhoods that meet the needs of residents and businesses now and in the future. This division helps manage growth while respecting the environment and protecting our heritage.
  • Engineering -  From clean water delivered to homes and waste flushed away, to garbage and recycling collection and flood prevention
  • Finance - monitors expenditures, ensures internal financial systems operate effectively, and constantly looks at ways to deliver services more efficiently. Finance staff ensures taxes and utility charges are collected, goods and services are purchased, and that people get paid. Finance also develops operating and capital budgets, manages liability claims and insurance (Risk), and prepares annual and quarterly financial statements and reports
  •  HR - recruit employees, provide training, and ensure a healthy and safe work environment is maintained. Human Resources also oversees collective bargaining and labour relations, provides job evaluations, organizes employee recognition and wellness programs, and processes payroll, T4s, and benefits.
  • Protective Services - Committed to protecting life, property, and the environment. coordinates emergency planning, prevents fires through education and planning, conducts fire investigations, and trains staff, the public, and other agencies.
  • Recreation, parks and culture - Creating and supporting active, healthy lifestyles for our residents and guests
  • City Council - Council’s primary duties are to create administrative policy, adopt bylaws on matters delegated to local government through the Local Government Act and other Provincial statutes to protect the public, and to collect taxes for those purposes. Council also acquires, manages, and disposes of the Township’s assets. Council’s vision sets a course of action and charts goals that are accomplished by municipal staff under the direction of the Chief Administrative Officer.

Matrix of Functions across Departments







Community deve





































Develop budgets






Capital planning












Every stakeholder has a perspective. ISO 55000 (ISO 55001) helps to align these with corporate and asset management objectives
Fig. Every stake
holder has a perspective. ISO 55000 (ISO 55001) helps to align these with corporate and asset management objectives.

he resource mix should reflect the organization's competencies, which will evolve over time with education, training, mentoring and experience of the team
Fig. The resource mix should reflect the organization's competencies, which will evolve over time with education, training, mentoring and experience of its own forces.

Clearly defined roles, responsibilities and authorities are one of the signs of good leadership
Fig. Clearly defined roles, responsibilities and authorities are one of the signs of good leadership. In accordance with ISO 55000, these must be coupled with appropriate structures and relationships to establish the asset management system (AMS) within the organization.

ISO 55000 ISO 55001 - It all starts with people
Fig. It all starts with people.

See also:
  • m

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