The Asset Management Concept Model describes the four principles of strategic asset management that incorporate asset decisions within overall leadership of the business. Executive leaders implement these principles to set the context for asset management and define the organisation’s objectives for assets.
The four principles that form the basis of successful asset management are:
- Output Focus: A commitment to measurable outputs
- Capabilities: Awareness that value is delivered from the capabilities an asset provides
- Level of Assurance: Decisions are based on a quantifiable level of confidence that a capability will be provided by an asset
- Learning organisation: Effective asset management occurs when the organisation actively seeks to improve its products or services
Implementation of these principles sets the organisational context for asset management and business objectives for assets. These outputs flow to the Asset Management System, where asset managers convert these goals into asset management objectives and manage the system to achieve them.
More details on the Asset Management System will be in our next post.
For more information on the Asset Management Council’s models, click here: https://www.amcouncil.com.au/resources/
