Thursday, 20 February 2014
Creating value from assets – new ISO standards can help
Asset management, broadly defined, refers to any system that monitors and maintains items, things or entities that have potential or actual value for an organisation or company. It may apply to both tangible assets such as buildings and to intangible concepts such as intellectual property and goodwill.
Additionally, asset management is about knowing what we want to achieve with an asset and how to make it happen. It is all about having a long term strategy. One of the key characteristics of assets is that their life span can be much longer, or much shorter, than the average strategic plan. A brand’s reputation will (hopefully) outlast a five year plan, as will the physical infrastructure of a railway for example. Also, assets need to be well managed in order to make the most of their value.
The new ISO 55000 series for Asset Management is composed of standards:
- ISO 55000 (principles and terminology)
- ISO 55001 (requirements for asset management systems)
- ISO 55002 (guidelines for the application of ISO 55001)
The major benefit of using these standards is being able to realise value from your assets. Value doesn’t necessarily mean monetary gain and defining what value is for an asset is often a conversation that happens with people outside the organisation. Some benefits are related to the improved knowledge of assets. In addition, the approach can help improve the relationship with stakeholders.
The ISO 55000 standards series can be used by many types of organisations and companies. It is especially aimed at companies that have a large proportion of fixed assets on their balance, such as real estate companies, network managers, the industry, public authorities or public-private consortia. The standard can nevertheless also be applied to intangible or financial assets.
The Asset Management standards are approached from the angle of company strategy and targets, where stakeholders, leadership, tasks and responsibilities are of crucial importance. The aim of these standards is not only to achieve better financial results, but also to contribute to a better decision process for investments, higher quality of internal or external services, better risk management and improved sustainability of investments.
For more information about these standards, contact NBN.