Explaining Asset Management with 3 Easy Questions
In a recent workshop, there was a lot of confusion, mixed feelings (and emotions) on what Asset Management is and why it’s important. There was a wide variety of business functions, ranging from Finance, Commercial, Maintenance, Engineering, Operations and Maintenance.
A recurring theme emerged from the workshop:
“Our organisation doesn’t really understand Asset Management.”
This misunderstanding is so widespread that it previously ranked as a top myth in the Asset Management Council’s Myths of Asset Management, with many still perceiving asset management as purely a technical discipline.
When the chance to explain Asset Management arises, it often comes unexpectedly, and without knowing the stakeholder’s background, we can easily miss the opportunity. Too often, we begin our explanation by describing our own role in Asset Management, only to lose our audience, who may struggle to connect with our perspective.
I’d like to share three simple, rhetorical questions I’ve found helpful in explaining Asset Management to any audience. These questions create a link between strategic, tactical, and operational thinking. I’ve used them successfully with everyone, from senior executives to frontline workers.
You’ll notice each question begins with “we”, a deliberate choice to reinforce that Asset Management is a shared responsibility (team sport), and that we all have influence over our organisational performance and outcomes.
QUESTION 1: If we continue the same maintenance practice, how long will the assets that support our organisation last?
A strategic “why” question.
This challenges whether the organisation has translated its business objectives into clear, measurable objectives. If the answer is backed by solid, measurable (SMART) objectives, then you’re likely to be on a strong strategic footing. The tool that supports this translation is the SAMP (Strategic Asset Management Plan). This question is centred around PERFORMANCE and needs to align with the Service requirements, which determines the Assets requirements, which informs Operations and Maintenance.
QUESTION 2: If we stopped all maintenance right now, how long would our assets last before they completely fail?
A tactical “what” question.
This explores the scope and timing of asset interventions. What we plan to do, when, and why. This is typically informed by the SAMP and documented in the AMP (Asset Management Plan). This question is centred around RISK as there are always finite resources (money, people, materials, plant and parts)
QUESTION 3: If we had an extra $1 to spend on our organisation right now, where would it be best spent?
An operational “how” question.
This opens a discussion around frontline execution. Are tools, resources, and procedures in place to deliver value? This level is supported by Technical Maintenance Plans (TMPs), procedures, and transactional systems that track what was done, by whom, and when. This question is centred around COST, but cost relates to all required inputs, not just the financial.
These 3 questions draw out the ISO 55000 definition of:
The effective governance and control of assets to achieve the desired balance of cost, risk and performance
These three questions also help break down Asset Management into relatable and, in principle, concepts that ISO 55000:2024 promotes.
Principles
- Value (Asset management exists to realise value from assets, meaning the benefit assets provide to the organisation and its stakeholders)
- Alignment (Asset-related decisions and activities must be aligned with the organisation’s objectives to ensure assets support strategic goals)
- Leadership (Effective asset management relies on strong leadership and commitment from top management to integrate it across the organisation)
Outcomes
- Adaptability (Asset management helps organisations respond effectively to change, uncertainty, and evolving stakeholder needs)
- Assurance (It provides confidence that assets are being managed competently, risks are understood, and objectives can be achieved)
- Sustainability (Asset management supports long-term decision-making that balances social, environmental, and economic outcomes)
Whether you’re engaging an executive, a planner, or a tradesperson, these questions prompt meaningful dialogue that encourages participation and shared ownership and accountabiltiy where it is required.
Next time you’re asked, “What is Asset Management?” try leading with these three questions. You might be surprised by how well they resonate.
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