What are Asset Management Objectives

Asset management objectives are the long-term goals that affect an organisation’s asset management system or activity. ISO 55000 defines asset management objectives as the results an organisation’s asset management system should deliver. The goals can either be qualitative or quantitative. Some of the most common types of asset management objectives include:

1. Economic Objectives

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

Some of the advantages of economic objectives include:

  • A Higher resale value of assets
  • Efficient use of resources
  • Reduced cost of operating the business

2. Social Goals

These objectives relate to community and cultural factors like population growth, age and gender distribution, and staff attitudes. For instance, you can develop a goal to create a succession plan for retirees within your organisation. This helps to establish a mindset of sustainability while protecting the community and the organisation’s property.

3. Technological Objectives

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

4. Environmental Goals 

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

  • To reduce dependence on fossil fuels
  • Maintaining a healthy ecosystem
  • Reducing energy consumption
  • Eliminating carbon emission

Coordinating Asset Management Objectives

It’s essential to streamline your objectives to achieve the best out of your asset management. ISO 55001 states that organisations should include the 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

Most organisations without asset management objectives do not use their assets to their full potential. The objectives ensure that assets are appropriately managed, leading to increased asset life.

  • Complying with Regulatory Standards

Coordinating asset management objectives allows you to comply with your industry’s policies, regulations, and standards. Remember that legal actions can be taken against an organisation that violates the laid down rules. Complying with regulatory standards is a critical step towards improving customer acquisition and retention and staying ahead of your competitors.

  • Improving Operational Performance and Efficiency

Organisational objectives help managers identify areas where assets are utilised to their full potential and where assets sit idle. These insights aid in planning and re-designing asset allocation to improve your business’s asset utilisation, performance, and efficiency.

How Best Practice Can Help

ISO 55000 and ISO 55001 training and certification helps organisations to develop quality asset management systems to maximise productivity. If your organisation is at the asset management planning stage, consider acquiring business coaching and online training from Best Practice today.

We will evaluate the current state of your organisation and offer the solutions you need to take your asset management system to the next level. Contact us today to learn more about our services.

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