AMS Implementation Principle: Portfolio Management

Principles for Asset Management System Implementation Miniseries

This AMP Newsletter highlights how the Portfolio Management Principle supports implementation of an ISO 55000/1 conforming Asset Management System (AMS) and an 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 Portfolio Management Principle is defined in the US National Academies report Strategies to Renew Federal Facilities as follows:

“Portfolio Management: Federal facility renewal strategies must support the agency’s whole facility portfolio, covering whole life cycle and stakeholder requirements across whole mission sets.”

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