The Asset Management Paradox
The management system standard ISO 55000 – Asset Management – Overview, Principles, and Terminology contains an interesting paradox.? It states that: “Asset management does not focus on the asset itself, but on the value that the asset can provide to the organization”.? How can this be – asset management does not focus on assets..?
To begin, let’s think about what a paradox is and why they are interesting.? A paradox is a statement or circumstance that seems contradictory yet may still be true.? Paradoxes are interesting because they define something that can be true and untrue at the same time.? A paradoxical statement is used to challenge assumptions to help us think differently, be creative.? Whether intended or not, that is exactly what this ISO 55000 paradoxical statement does.? Asset management is and is not about assets at the same time.
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1 年This is an interesting insight into how asset management regulations can lead to value realization.
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1 年Thanks for sharing your perspective, Jack. "Asset management is not about assets but the value that can be generated from and through assets." Think I get it.
Asset and Facilities Management Specialist - Middle East
1 年Allow me to relate one practical experience. As a M&E Condition Assessment surveyor of a building whose owner is understood to be considering selling it, an example key question would be 'will the corrosion in the chilled water system' last long enough to beyond the sale (hoping the due diligence survey doesn't pick it up)? Why invest in replacement when this will not provide a financial return. Versus the decision outcome had a sale not be being considered ...
Senior EAM Consultant | EAM Solutions | Asset Management | NTT Data Business Solutions
1 年Excellent article Jack. For me the distinction between focusing on assets vs focusing on the value they provide is crucial to organisations remaining agile with their asset decisions. An organisation’s asset portfolio slowly turns over in response to obsolescence and with organisations often ‘getting every last bit’ of useful life from systems, whilst individual assets are likely to have long periods of stability in regard to their function and performance/condition levels. The value those assets provide to the organisation, however, is in flux; immediately reacting to changes in operations, overall business strategy, regulatory changes, environmental and safety targets etc. Managing Assets vs Asset Management is often summarised as short-term vs long-term thinking but therefore could also be described as static vs responsive decision making. As you point out, this distinction is laid out within the standard, but the impact and importance of the difference needs to be better understood by all – which this article does an excellent job of doing!
Best one yet, Jack. Loved this one.