AMS Implementation Principle: Performance-Budget Integration

Asset Management System Implementation Principles Miniseries

This AMP Newsletter highlights how the Performance-Budget Integration Principle supports implementation of an ISO 55000/1 conforming Asset Management System (AMS) and its enabling Asset Management (AM) Framework.  The AM Framework, shown below, establishes a decision-making logic that coordinates different Management Activity Groups (MAGs) to operationalize an organization’s AMS.  The purpose of the AM Framework is to define value and apply this definition to drive organizational performance and value realization.

Asset Management Framework

The Performance-Budget Integration Principle is defined in the US National Academies report Strategies to Renew Federal Facilities as follows:

“Performance–Budget Integration: Investment decision-making frameworks must evaluate planned-versus-actual performance in a way that can simultaneously measure a performance gap (e.g., a requirement) and the means to remedy the gap related to budget development.”

The balance of this article will establish context, ISO 55000/1 alignment, AM Framework reduction, AM Framework implementation, and derived benefits from the Performance-Budget Integration Principle.