Asset Management is a Team Sport

The complexities of asset management have increased substantially in recent years, due to new social, environmental, and economic issues. New tools, techniques, and technologies to track and manage assets have also had an impact, along with the introduction of a new international management systems standard. It is no longer possible for a single asset manager, regardless of experience, to fulfill all of these expectations. A team approach, with a committed executive sponsor, is needed. While the team makeup will vary, it will usually include finance, design and construction, maintenance, operations and IT.

Modern asset management, as described in the ISO Standard 55000, is definitely a team sport. It is hard to imagine one individual possessing the competencies required to address all – or even most – of the standard’s requirements. These requirements cover all areas of the organization, from environmental scanning through stakeholder analysis, business planning, capital planning, operational planning, execution and review. They include significant requirements for financial analysis and accountability, and risk management. The actual operation of the management system calls for expertise in talent management, systems analysis, monitoring and control, information management, and quality systems.

The Institute of Asset Management (IAM) has produced a Competencies Framework, with 28 core competencies expanded to more than 150 specific skills and notes regarding another 140 supporting areas of knowledge. A new consortium with members from Australia, Brazil, Canada, France, and the U.S. has drafted competency requirements for asset management system assessors similar in scope.

The IAM Competencies Framework recognizes the possibility of an asset management team, but this team of practitioners is lead by one manager, as opposed to a team of managers led by one executive. This type of team may work well at the operational level, but not the management systems level. Consider the following examples:

  • A brewing company that wants to consolidate asset management information and management practices across 10 breweries with roughly 100 production lines developed an asset management council. The Council’s seven working members represent Asset Management Systems, Manufacturing Systems, Capital and Long Range Planning, Electrical Engineering, Quality, Information Technology, and Finance. The council is sponsored by the Director of Asset Management, the Director of Manufacturing Systems, and the Vice President of Operations Finance. This integrated approach will allow standardization of asset identification and performance measurement at the production level and support effective long-range planning in many dimensions.
  • A water utility facing severe draught has developed a water conservation unit. The unit employs technical specialists, planners, and public relations specialists, and performs its own performance monitoring. This “non-asset solution” makes up a significant portion of the utilities budget and must be integrated with the organization’s plant and plumbing.
  • A transportation utility needs to integrate bus and train transportation. There are different operational parameters and different planning horizons as well as capital requirements. Customer expectations are based on total trip time and reliability, regardless of mode, requiring a team approach.
  • A university campus’ goals for safety and security, as well as open access, conflict. There are separate management functions for classroom space, laboratory space, facilities and grounds. A team approach to integrated planning and management is needed.
  • A retail organization focused on customer experience needs to integrate its interior design and furnishings, product selection and display requirements, supply chain, and exterior design and access requirements. This integration can be done with a team of specialists under one manager, as long as the configurations remain roughly the same. When the store expands to multiple types–including urban, suburban, big-box, and pocket size, and then adds a supermarket and a food court, the team requirements escalate to a team of managers under one executive.

The introduction to the ISO Standard 55000 for Asset Management defines the management system as comprehensive, integrated and data-driven. This standard provides an effective framework for the asset management team and assurance to stakeholders that the job is being done correctly.