Asset Management Executive Decisions - 2nd Tier Decision
Two Part Series on Decisions Executives Need to Make About Their Organization's Approach to Asset Management
An organization’s approach to asset management is a deliberate executive decision, as is the way it manages its assets. These decisions can be explicit, implicit, or overlooked, each carrying distinct benefits and consequences. The figure below illustrates the relationship between these two executive decisions, represented in the 1st and 2nd Tier Executive Decision white diamond boxes.
Both decisions align with the ISO 55000 Asset Management System standards series. The 1st Tier Executive Decision, framed by ISO 55000, defines the organization’s overarching approach to asset management. The 2nd Tier Executive Decision, guided by ISO 55001, establishes priorities for asset-related budget execution to support the organization’s objectives—specifically through approval of the Strategic Asset Management Plan (SAMP). In this context, budget execution covers organizational resources consumed by assets and the management of assets.
This two-part AMF Journal entry explores how ISO 55000 and ISO 55001 define these decisions and offers guidance on framing them to enhance an organization’s asset management capabilities.
The first part of this series is found at: 1st Tier Executive Decision – Application of ISO 55000. The second part of this series is below: