Senior Executive Asset Management Decisions - 1st Tier
The Asset Management Framework (AMF) Journal has released the first part of a two-part series exploring critical executive decisions in asset management. Senior leadership plays a pivotal role in implementing asset management within organizations by making two key choices. The first decision involves adopting asset management as a formal discipline, setting the stage for the organization's asset management culture and its value generation from assets. The second decision focuses on aligning objectives, budgets, and programs annually using a disciplined asset management system, a crucial process for effective asset management.
This entry emphasizes the significance of the initial decision, often underestimated by many organizations. Asset management is more than just coordinating asset-related activities; it should prioritize the return on investment (ROI) that assets can provide. Viewing asset management solely as overhead analysis can lead to cost-cutting measures that overlook assets' role in readiness, resiliency, and value creation.
The forthcoming journal entry will tackle the second executive decision, an area where organizations commonly face challenges. Without a strong asset management foundation, decision-making tends to concentrate on optimizing assets through life cycle management, missing the aspect of treating assets as investments. Evaluating assets based on ROI introduces enterprise risk management capabilities, necessitating alignment of objectives, budgets, and programs across the organization.
The AMF Journal is a valuable resource for asset management advocates, offering practical guides on establishing disciplined asset management practices. To access all journal entries and the AMP Newsletter, subscribe to the AMF Journal at https://amp4outcomes.substack.com/s/am-framework-journal at the AMP Partner level to access all AMF Journal entries (listed below) and the AMP Newsletter.