What are Asset Management objectives?

Asset management objectives are the long-term goals influencing an organisation’s asset management system or activities. According to ISO 55000, these objectives are the results an organisation’s asset management system should deliver. The goals can be either qualitative or quantitative. Common types of asset management objectives include:

Economic objectives

These goals aim to achieve improved financial performance, fiscal stability, and safeguard the organisation’s investment. Factors like inflation and staff efficiency can affect your organisation’s economic goals. These objectives help you invest in quality infrastructure and optimise the lifecycle costs of your assets.

Some advantages of economic objectives include:

• Higher resale value of assets
• Efficient use of resources
• Reduced operating costs

Social goals

These objectives relate to community and cultural factors like population growth, age and gender distribution, and staff attitudes. For instance, you can create a goal to develop a succession plan for retirees within your organisation, fostering sustainability and protecting community and organisational assets.

Technological objectives

These goals aim to maximise the potential of technological resources like software or hardware to improve an organisation’s effectiveness and efficiency. For example, you can plan to equip your staff with state-of-the-art technology by investing in asset management software or establishing a database for asset records.

Environmental goals

Environmental objectives aim to reduce your organisation’s environmental impact. For example, you can set a goal to prevent assets like vehicles from polluting onsite water sources. Examples of environmental asset management objectives include:

• Reducing dependence on fossil fuels
• Maintaining a healthy ecosystem
• Reducing energy consumption
• Eliminating carbon emissions

Coordinating Asset Management objectives

To get the best out of your asset management, it’s essential to streamline your objectives. ISO 55001 states that organisations should include asset management objectives in the strategic asset management plan. You can coordinate these objectives by communicating them to all stakeholders within the organisation. Integrating the strategic asset management plan with other organisational planning activities, like financial planning, is critical to achieving the set objectives.

Benefits of aligning Asset Management objectives

• Enhancing the Asset Lifecycle

Organisations without asset management objectives often do not use their assets to their full potential. The objectives ensure that assets are properly managed, leading to increased asset life.

• Complying with Regulatory Standards

Coordinating asset management objectives helps you comply with your industry’s policies, regulations, and standards. Legal actions can be taken against organisations that violate laid down rules. Complying with regulatory standards is crucial for improving customer acquisition and retention and staying ahead of competitors.

• Improving Operational Performance and Efficiency

Organisational objectives help managers identify areas where assets are fully utilised and where they sit idle. These insights aid in planning and re-designing asset allocation to improve asset utilisation, performance, and efficiency.